Hot Pod, February 18, 2020: Patreon Capital: An Alternative to Podcast Financing
We can now add one more notch to the interesting-ness of their financial life: the Multitude crew are now among the earliest patrons of Patreon Capital, a new alternative financing service by the membership platform. The service provides cash advances to creators in exchange for a slightly greater sum of their future income generated on Patreon. It’s a relatively speedy financing option, one that could come in handy if you need a quick burst of funds to finance a new project requiring higher-than-usual upstart capital.
Patreon provided the team with a cash advance of around $75,000 to cover the production budget for the series, with the expectation for Multitude to pay back a slightly greater sum from Next Stop’s Patreon earnings over the next two years. (Neither party disclosed the exact figure that Multitude needed to funnel back.) As a matter of risk mitigation, the Patreon revenues of another Multitude show, Join the Party, will be taken as collateral if Next Stop isn’t able to generate enough return to fully pay Patreon back after the two year period.
