Substack invests $20 million to attract TikTok creators.

Substack has decided to position itself as an attractive alternative for content creators, especially in the context of the instability facing TikTok. The platform has announced a new $20 million fund called the “Creator Acceleration Fund,” which aims to ensure that creators do not see their monetization affected when joining Substack. In addition to financial backing, this program will offer strategic and business support to creators, as well as early access to new features.

The company has justified this new approach by observing how creators from different formats, such as video, audio, and text, have been able to expand their audience and generate income on Substack. According to the company, the platform's dynamics help enhance the quality and impact of the creators' work.

For months, Substack has undergone a significant transition from being viewed solely as a newsletter delivery service to a platform similar to Patreon, where creators have total control over their content and audience. A message on its blog also mentions the instability of traditional social media as a risk factor for creators, who face sudden policy changes and pressure from the political environment.

However, the stability of Substack is also a matter of debate. Over time, its focus has varied, starting with newsletters, moving to microblogs, and eventually to full websites and live streams. This fluctuation has caused some creators to feel that the original mission of giving more freedom to independent writers is becoming blurred. Moreover, those creators who decide to migrate from TikTok to Substack will have to rebuild their audience, as it is not possible to transfer their followers from one platform to another.

Controversies have also touched upon Substack. A year ago, the company faced criticism due to the monetization of newsletters with extremist content, leading to a ban on certain materials after pressure from prominent writers. The company had promised to be a better option than a newsroom, but it fired an editor who was working on a newsletter that criticized Substack, raising doubts about its commitment to independence.

The $20 million fund is just one of several attempts by Substack to attract creators. Previously, it had implemented a program called Substack Pro, which offered higher salaries and other benefits to draw talent from traditional newsrooms. However, that program ended in 2022, and its co-founder, Hamish McKenzie, noted that those agreements were more like "initial funding agreements" rather than employment contracts. This means that, once inside Substack, creators must fend for themselves, a deal similar to what other platforms offer.