Total amount raised
$117.8 Millions
Latest funding date
1/1/2018
Location
Wattpad has successfully raised $117.8 million over five funding rounds, achieving a valuation of over $500 million. The platform is a social storytelling community, offering a space for writers and readers to connect and share original stories.
Keep reading to explore the intricacies of Wattpad's fundraising journey and the investors backing this innovative platform.
What Is Wattpad?
Wattpad, founded by Ivan Yuen and Allen Lau, is a social storytelling platform based in Toronto. The company connects a global community of readers and writers, helping discover new talent and linking them with entertainment companies.
With a workforce of 201-500 employees, Wattpad has become the world's largest storytelling community, home to 89 million people who love original stories. The platform democratizes storytelling for a new generation of diverse Gen Z writers and their fans.
Wattpad offers opportunities for writers to get their stories published, adapted into films or TV series, and recognized globally through Wattpad Studios and Wattpad Books.
How Much Funding Has Wattpad Raised?
- Series A Round
- Amount Raised: $3.5 million
- Motivation Behind the Round: To support the initial growth and development of the platform.
- Series B Round
- Amount Raised: $17.3 million
- Date: June 2012
- Lead Investors: Khosla Ventures, Yahoo co-founder Jerry Yang, Union Square Ventures, Golden Venture Partners
- Motivation Behind the Round: To leverage the disruption in the publishing industry due to mobile and social technology and to support the company's vision of creating a new digital entertainment category.
- Series C Round
- Amount Raised: $51 million
- Date: January 2018
- Lead Investors: Tencent, Kickstart Ventures, Peterson Group
- Valuation at Round: Just under $398 million post-money
- Motivation Behind the Round: To invest in technology, particularly machine learning, and expand into more formats such as TV, film, digital media, and publishing.
Total Amount Raised: $71.8 million
Current Valuation: Just under $398 million
Key Investors
- Tencent
- Details: Tencent is a major Chinese conglomerate known for its investments in digital media and technology. It owns popular platforms like WeChat and has a significant presence in the gaming industry.
- Investment Focus Areas: Digital media, social networking, technology.
- Notable Investments: WeChat, Snapchat, Epic Games.
- Khosla Ventures
- Details: Founded by Vinod Khosla, Khosla Ventures is a venture capital firm that focuses on impactful technology investments. The firm is known for backing innovative startups.
- Investment Focus Areas: Technology, clean energy, impactful innovations.
- Notable Investments: Square, DoorDash, Impossible Foods.
- Union Square Ventures
- Details: Union Square Ventures is a New York-based venture capital firm that invests in internet services and network-based businesses. The firm has a strong track record of successful investments.
- Investment Focus Areas: Internet services, network-based businesses, technology.
- Notable Investments: Twitter, Etsy, Tumblr.
- Kickstart Ventures
- Details: Kickstart Ventures is a venture capital firm part of Globe Telecom in the Philippines. It focuses on supporting technology and digital media startups in the region.
- Investment Focus Areas: Technology, digital media, startups in the Philippines.
- Notable Investments: Coins.ph, Kalibrr, Wattpad.
- Peterson Group
- Details: Peterson Group is a Hong Kong-based investment firm with a diverse portfolio. The firm invests in various sectors, including real estate and technology.
- Investment Focus Areas: Real estate, technology, diversified investments.
- Notable Investments: Wattpad, various real estate projects.
What's Next for Wattpad?
Wattpad's future is brimming with opportunities, particularly in expanding into TV, film, digital media, and publishing. Leveraging machine learning to match creators with consumers and identify trending stories can significantly enhance user engagement. The platform's partnerships with major media and publishing companies further amplify its growth potential.
As Wattpad continues to grow, it is likely to attract more funding from investors keen on digital media and social platforms. The strong interest from major investors like Tencent and Kickstart Ventures indicates a promising trajectory for future investment rounds.
However, Wattpad faces challenges such as competition from established video platforms like YouTube and the need to continuously engage its user base. Successfully monetizing its vast content and navigating the complexities of new media formats will be crucial for sustained growth.
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