Despite the fact that OnlyFans' logo is a lock, investors still hope for it to give out the key by going public. Will OnlyFans make its stock available through an IPO?
The company's recent massive funding round could be a tease of what's to come, or just be the logical next step for the growing subscription-based company.
OnlyFans is set to become a unicorn after a funding round
Reports suggest that OnlyFans is conducting a massive funding round that will propel its corporate valuation beyond $1 billion. The startup, founded in 2016, has seen its popularity skyrocket over the last year.
The company maintains a subscription model that favors individual creators, much like Patreon. It focuses on adult entertainment, but that's not the platform's sole target. Creators of every kind have used OnlyFans to grow their audience and earn income by sharing gated photos and videos.
Is OnlyFans a publicly traded company?
Patreon is rumored to be in talks about a potential IPO, but nothing is set in stone. Meanwhile, OnlyFans seems to be focusing on institutional funding rounds to expand, and it remains a privately held company. Oftentimes, a private company seeking funding will complete five or six rounds before offering stock on an exchange.
What OnlyFans stock could mean for the creator community
OnlyFans is working toward becoming more mainstream. It will likely wait until it's a household name (or close to it) before going public. The company also recently unveiled the OnlyFans Creative Fund, which pools together money to uplift creators in the community. In the fund's first year, the company is focusing on musicians who have made a significant space for themselves on the OnlyFans platform.
This is just one example of how OnlyFans is working to expand its platform. Public capital could give OnlyFans the chance to develop its offerings and create an even more holistic community.
Nowadays, sentiment is just as important as fundamentals (in the case of meme stocks, it's paramount). However, it's worth noting that OnlyFans made $400 million in revenue last year from its 20-percent commission on $2 billion in sales. And it has yet to prove its staying power beyond the stay-at-home entertainment hype of the COVID-19 pandemic.
OnlyFans' valuation is comparable to competitors'
To compare, Cameo, a platform where fans can buy personalized videos from celebrities, is also valued at around $1 billion. While Cameo's not a direct competitor, its similarity shows that OnlyFans isn't exactly extraordinary, despite its projected unicorn image. Facebook is currently developing a video product that could change the market significantly for OnlyFans and others.