OnlyFans, a site which is largely famous for adult entertainers charging "fans" for access to videos & photos, is in talks to raise funding that will value it at over a $1 billion. Unlike many tech companies, OnlyFans is actually profitable. It has 1.25 million creators and 130+ million users on its platform (130 million? That's more than 1/3rd of America's population!) It handled more than $2 billion in sales last year, which means it had ~$400 million in revenue (since they charge a 20% fee to creators). It is also growing at a staggering 100% year over year.
While OnlyFans is deeply rooted in adult entertainment, they want to become a place where a broad range of celebrities can connect with their fans. Celebrity users include boxer, Floyd Mayweather and rapper, Cardi B. Apparently athletes are a genre they are seeing a lot of growth in. (Can y'all imagine Tom Brady on OnlyFans promoting his TB12 method?)
Short Squeez Takeaway: The pandemic has killed many businesses but also given life to many such as OnlyFans. Although the site was founded in 2016, it really blew up last year. Creator economy and companies are heating up: Cameo, a website that lets celebrities send personalized messages to fans, was also recently valued at more than $1 billion after an investing round from SoftBank. OnlyFans future is OnlyBright.