OnlyFans, the adult subscription company that has risen in popularity amid the pandemic, is now in talks of raising new funding to expand its business model into a mainstream media platform, despite allegations of underage pornography and money laundering.
According to Bloomberg which cited people familiar with the matter, OnlyFans is allegedly in talks with an advisor to help gain more interest among potential investors, and raise new funding to the tune of over $1 billion. The online platform, which allows influencers, sex workers, and celebrities to sell subscription content to viewers while taking a 20% fee, is also in the midst of attempting to attracting new advertisers, which has thus far been difficult to do given the company’s ties to the porn industry.
Although OnlyFans has gained a reputation for pornographic content, the company is seeking the additional funding to help it transition into a mainstream media platform. Thus far, the company has several notable celebrity users, including Cardi B and boxing legend Floyd Mayweather, as well as restaurant chain Sticky’s Finger Joint, which joined the platform for advertising purposes.
As Bloomberg calculates, the 20% user fee has allowed OnlyFans to amass a profit of over $400 million, after it handled more than $2 billion in sales in 2020. According to one of the individuals familiar with the latest fundraising discussions, the London-based company has expanded by a rate of 100% this year, and has paid out a combined $3 billion to over 130 million of its registered users.
However, the company’s latest round of wishful fundraising may not be as straight forward. Back in March, Forensic News published a series of scathing Suspicious Activity Reports (SARs) filed by numerous US banks which allege OnlyFans owner Leonid Radvinsky was flagged on countless occasions over suspicious transactions as well as providing a social media platform to underage users. Then, in June, Forensic News reported that the FBI has allegedly opened a “sprawling” investigation into the financial activity of the adult entertainment platform and owner Radvinsky.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.