In this blog post, we’ll go over the ways how to invest into OnlyFans and everything that we know about OnlyFans’ IPO, their current situation as a company, and things to keep in mind if you’re considering investing in the company…because, as it turns out, OnlyFans might be going public soon.
How to invest in OnlyFans stock
Unfortunately you can’t purchase OnlyFans stock and make money off the company’s success because they’re not listed on any international stock exchange yet.
OnlyFans is owned by Fenix International Limited which is also not publicly traded. That means you can’t get any form of indirect exposure to the company either.
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Launched in 2016 by Timothy Stokely, OnlyFans is an online platform that operates on a subscription-based model whereby individuals can pay a monthly fee to access content from their preferred creators. The platform takes a 20% cut of the subscription fee and any additional income generated by content creators, such as tips or pay-per-view purchases.
This business model has proven to be quite stable and straightforward, making it a popular choice for content creators across various industries – and more so for those who want to take control of their income and release themselves from the shackles of restrictive contracts.
When the company first began, OnlyFans was designed to provide a more personal and exclusive way for celebrities to interact with their fans. However, over time, the platform became increasingly popular among individuals associated with the adult industry, and as a result, the service has become known for hosting adult content, leading many to unofficially label it as a pornography website.
Despite this association, OnlyFans continues to be a widely used platform for content creators across various industries, providing a valuable source of income for those who know how to use it effectively and adapt to current trends.
The platform saw an even bigger explosion in creators and users during pandemic-driven lockdowns. According to their parent company, London Fenix International, the platform generated 4.8 billion U.S. dollars in gross revenues in 2021, and according to Business Insider, several OnlyFans models reported to have made $143,000 to as much as $5.4 million.
What Do We Know About OnlyFans’ IPO?
As we enter 2023, the management team of the subscription service behemoth has not yet expressed any firm intention of taking the company public. However, if they do decide to go public, it is highly likely that there will be a lot of interest and that OnlyFans’ stock will receive a reasonably high valuation once it hits the stock exchange.
In March 2022, Axios reported that OnlyFans had been in discussions with several blank check companies, or SPACs, regarding a potential merger that would take the company public. The move could potentially provide the company with access to a larger pool of investors, enabling it to raise additional capital to fuel its growth.
OnlyFans appears to be undergoing a repositioning strategy, aiming to shift its focus away from its association with adult content and towards a more diversified range of content types. The platform is reportedly seeking to promote itself as a hub for fans to connect directly with their favorite creators, similar to a combination of Patreon and TikTok.
To achieve this, OnlyFans intends to emphasize more professional content across various genres, such as cooking, comedy, celebrity content, and even sports like UFC fighting. To this end, the company launched OFTV last year, a streaming platform that can serve as a destination for more high-quality, professional content.
A decision was even announced in October of last year to ban sexually explicit content on the platform, but it was quickly reversed after heavy blowback by some of the platform’s biggest creators.
Given the company’s impressive track record of success, it is not surprising that rumors are circulating about the possibility of an OnlyFans IPO. Nevertheless, investors and fans alike will have to exercise patience and wait for any concrete announcements regarding the company’s future plans before figuring out how to invest in them.
It may come as a surprise, but OnlyFans does not have any direct competitors in its market niche. It cannot be classified as a porn website since it does not show pre-recorded videos and generally features only one person in each live stream, with no sexual interactions between multiple individuals.
Furthermore, it cannot be categorized as a dating platform as it does not promote real-life romantic encounters, nor can it be considered a social media platform due to its strict rules prohibiting sexual content.
Even Twitch, which had previously allowed some nudity, has now banned it from its platform. Consequently, many streamers have flocked to OnlyFans to continue their work. As a result, the company finds itself in a unique position, occupying a market niche that has never been explored before and free from any direct competition.
What Makes a Potential OnlyFans IPO So Intriguing?
To put it simply, we’d be highly confident in the stability of Onlyfans’ business model for several reasons if the company was to go public.
Firstly, as we mentioned earlier, there are no comparable competitors in the market. Companies with the financial resources to create a similar platform are unlikely to do so, as they would not want to be associated with a pornographic website. It is unlikely that industry titans such as Facebook, Microsoft, or Apple would want to invest in such an unprecedented venture.
Moreover, the company has achieved the coveted network effect, where the more users that join the platform, the more interaction and value it creates for both content creators and fans.
Although specific data on this is not readily available, as of 2023, the platform was reportedly attracting 500,000 new users each day, an almost unfathomable pace. Furthermore, the company is reportedly drawing in an average of 8,000 new content creators every day, indicating enormous growth potential for the platform.
Finally, OnlyFans appears to have healthy financials, although as a privately held company, precise information is not publicly available. Despite this, the company’s growth and ability to attract high-profile creators suggest that it is thriving, and its 20% cut on all creator earnings provides a reliable revenue stream for the company.
It also helps matters that, per a Guardian report, OnlyFans users spent as much as $4.8 billion on the service in 2022 alone, and revenues don’t appear to be slowing down anytime soon. An OnlyFans IPO may not be far behind.
The Bottom Line
It’s evident, at this point, that the England-based platform is thriving, and you might be eager to figure out how to invest in OnlyFans stock. However, with no clear indication of when or whether the company will go public, it’s wise to consider other investment options. Waiting on the sidelines could result in missing out on potential gains while several opportunities are available in the current market.
Although investing in other companies may not be the same as investing in the burgeoning potential of an OnlyFans IPO, there are similar publicly listed companies such as Match Group (the parent company behind Tinder), Bumble, Facebook, Twitter, or any other social media platforms for the time being.
Speak to your financial advisor about the best strategy for your portfolio, and keep an eye on the news so you can jump on OnlyFans stock at the outset if the company does go public.