OnlyFans, a site where celebrities and adult movie stars charge fans for access to videos and photos, is in talks to raise new funds that would value the company at at least 1 billion, according to people with knowledge of the matter.
The profitable startup works with an advisor to engage investors, said one of the people, who asked not to be identified. The idea is to find sponsors who help the site become more of a mainstream media platform and reduce its porn tag.
Although OnlyFans’ roots stem from adult entertainment, the site wants to be a place to connect a wide range of celebrities and athletes with fans. It also seeks to attract more advertisers, some of whom may feel insecure because of their links to pornography.
So far, its famous users include Floyd Mayweather, a professional boxer, and rapper Cardi B. Companies like Sticky’s Finger Joint, a chain of restaurants specializing in chicken wings, have joined OnlyFans as part of their marketing strategies.
“We see tremendous growth in athletes as a genre of creators,” said OnlyFans founder and CEO Tim Stokely when Mayweather joined the site earlier this month.
OnlyFans handled more than $ 2 billion in sales last year. Since the site charges a 20% fee, this means it had over $ 400 million in revenue.
This year, the London-based company is growing at a rate of more than 100%, according to the person familiar with the situation. OnlyFans said it paid more than $ 3 billion to the more than 1.25 million creators on its platform. It has more than 130 million registered users.
A representative for OnlyFans declined to comment.
Stokely, a British entrepreneur, founded the site in 2016 and later sold a majority stake to Leonid Radvinsky, a Chicago-based internet entrepreneur. Both Stokely and Radvinsky are experienced in adult entertainment.
Use of OnlyFans skyrocketed during the pandemic. Adult movie stars, models, physical trainers and chefs flocked to the site to charge fans for special classes or private messages.
It has competition from other sites that seek to win with the experiences of the fans. Cameo allows celebrities to sell personalized messages to fans. Baron App, Cameo’s parent, said in March that it was valued at more than $ 1 billion after raising $ 100 million in a round of funding from investors like SoftBank Group’s Vision Fund 2. Cameo announced that it would add basketball star Earvin ‘Magic’ Johnson as a member of the board.
By increasing its number of celebrities and athletes, OnlyFans aims to offer insight into their personal lives, for a fee. This is the case with Mayweather, who joined the site just before his exhibition fight with influencer Logan Paul last week.
“I’m looking forward to sharing a glimpse into my life and some never-before-seen content,” Mayweather said in a statement.
