Who would have thought that a whole bunch of startups would pop up because Instagram, TikTok, and Twitter only let you link to one website in your bio? Apparently, Link tree co-founder and CEO Alex Zaccaria did.
“We started in 2016 with a very clear use case to solve this problem for musicians and artists who needed a better way to connect outside of social media to all of their different streams of income, and we had really need to unify that experience so they can help drive monetization,” Zaccaria told TechCrunch. “There was nothing else like [Linktree] that existed. We created this category.
Over the past year and a half, Linktree has raised a total of $55.7 million over two funding rounds. Today, the Australia-based company announced a $110 million funding round led by Index Ventures and Coatue Management, with participation from AirTree Ventures, Insight Partners and Greenoaks. This increase values Linktree at $1.3 billion. That’s a lot for what is essentially a lightweight mini-website builder.
These tools are especially useful for influencers or brands. Linktree has customers like Selena Gomez, ICT Tac and major league baseballbut even ordinary social media users have found uses for Linktree – some people use it to list resources to support causes they care about, or simply direct their friends to their profiles on other platforms.
Like any good idea, other companies have tried to turn the idea into something better – platforms like TagsSnipfeed, Lightricks, and Streamlabs have launched link builders in the bio with an eye on social media creators, but Linktree was able to keep up by introducing its own bells and whistles, like integrations with PayPal and Shopify. Linktree also recently acquired Songlink/Odelski to create a Music Link function. With Music Link, artists can paste their song’s link on any platform, and their Linktree will automatically populate with links to their song on all platforms, rather than navigating to each platform individually. form to get a link.
“We are now over 24 million users, with nearly 40,000 signups per day,” Zaccaria said. Just last year, he told TechCrunch that Linktree had 12 million users worldwide, stating that according to the numbers provided, Linktree has doubled in size since March 2021.
“Linktree is definitely in a hyper-growth phase, and these fundraisers are really focused on growing the team. We were seven people in March 2020, we are now over 230 people worldwide, and we expect to hire an additional 200 to 300 positions this year between the United States and Australia.
“We’re based in Australia and the majority of our team is here, but most of our users are in the US,” Zaccaria told TechCrunch. “We are looking a lot to develop this team there.”
Linktree offers users four different subscription options, ranging from free to $21 per month. Paid options offer more customization and expanded monetization tools for creators. Currently, Linktree does not take a share of transactions (in addition to standard credit card fees) when users tip a creator, purchase a product through the Shopify integration, or book a request. i.e. creators can offer Cameo-like videos as a paid digital good on their Linktree). But eventually, Linktree plans to start taking a cut, and that percentage drops from 10% to 0.5% as your monthly payment increases. So, for a larger creator, shelling out $21 a month to reduce Linktree’s discount from 10% to 0.5% could be financially beneficial. Linktree claims to have helped 1.7 million people generate 1.2 billion clicks on commerce-related websites in the last year alone.
“What you see on the pricing page right now is to give users an idea of what it will be, but at this time we are not charging at all,” Zaccaria said. “We call it a promotional period right now – we just launched the partnerships [with Shopify, Square and PayPal] over the past year, and we’re helping creators generate their income and be able to get their foot in the door and start using these products at no additional cost. »
So, although now valued at over $1 billion, Linktree’s current revenue streams are limited to monthly subscriptions. Linktree declined to share revenue figures, including what percentage of its 24 million users are paying subscribers, or whether or not the company is still profitable.
“It’s all hyper focused on this idea that if we add value to users, if we help them win, maybe they’ll pay to add value to their lives by reaching their audience, converting more, getting better results or saving time,” Zaccaria said. “We really focus on helping creatives save time and run their business.”
Update, 3/16/21, 10:50 AM: A previous version of this article titled Linktree’s $110 Million Fundraising in Series C Round; Linktree clarified that this is actually an expansion of the company’s March 2021 Series B.