Total amount raised
$117.8 Million
Latest funding date
1/1/2018
Location
Wattpad has successfully raised $117.8 million over four 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.
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: $46 million
- Date: April 2014
- Lead Investors: OMERS Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To grow the social publishing network internationally.
- 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: $117.8 million
Naver acquired Wattpad in May 2021 in a cash and stock transaction valued at more than an estimated USD $600 million.
Key Investors
- OMERS Ventures
- Details: OMERS Ventures is the venture capital arm of a large Canadian pension fund manager. It led the $46 million round Wattpad announced in April 2014.
- Investment Focus Areas: Technology and venture investing in Canada
- Notable Investments: Not publicly disclosed
- 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.
Naver completed its acquisition of Wattpad on May 10, 2021, so Wattpad no longer raises funding as an independent company. Wattpad remains based in Toronto as part of Naver, alongside Naver's WEBTOON digital comics platform.
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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