Substack is offering a $20 million funding guarantee to encourage creators to migrate to its platform.

Thursday sub-stack announced launch of the Creator Accelerator Fund, which guarantees $20 million in funding to help creators grow their audiences and migrate paid subscribers from other subscription-based platforms (Patreon, Supercast, and others) to Substack.

The company says the fund was created to ensure that creators retain all of their current income during their transition to Substack.

Unlike other newsletter platforms like Ghost and Beehiiv that charge monthly fees, Substack takes a 10% cut of newsletter revenue. Substack’s new initiative addresses a key concern for creators who may be hesitant to switch platforms because they often rely on existing revenue streams for financial stability.

In addition to funding guarantees, the company receives ongoing support from the partnership team to assist with the migration process and overall business strategy. Developers also get early access to beta features as members of the Substack product lab.

The timing of the launch is also noteworthy given the recent confusion between social media apps like TikTok and Instagram. Many TikTokers are uncertain about the app’s future in the US, while Instagram is conflicted backlash due to changing policies perceived as harmful to users. To attract more creators, Substack recently introduced additional features to increase its competitiveness with social platforms, including a new live video.

Today’s announcement follows a pilot program involving select creators. Among the first to receive financial guarantees from Substack are Pantsuit Politics hosts Sarah Stewart Holland and Beth Silvers. They partnered with Substack and transitioned from Patreon to the platform in October 2024. The company claims that the Pantsuit Politics community has grown to more than 18,000 subscribers on Substack, including thousands of paying members.

Substack is now accepting new applications and interested developers can do so apply online. Creators must live in the U.S. and earn at least $2,000 a month to qualify, the company notes.