Passes, a startup that recently launched in beta, has acquired the creator monetization platform Fanhouse. The deal was completed in a remarkably short timeframe, with Passes founder Lucy Guo revealing that they closed the agreement just 24 hours after their initial call. The terms of the deal have not been disclosed, but it is worth noting that Fanhouse, established in 2020, raised $20 million in a Series A funding round, while Passes raised $9 million in seed funding. Passes currently works with around 40 creators, while Fanhouse is a more well-established platform.
However, not all of Fanhouse’s founders are on board with the acquisition. Rosie Nguyen, a creator known as @jasminericegirl, announced her departure from the company just hours before news of the deal broke. Nguyen explained that she made the difficult decision to resign from Fanhouse as she wants to align herself with values that better support and help creators. She emphasized that she did not benefit financially from the acquisition and left the company without severance or an exit package.
The news of the acquisition raised concerns among creators, particularly due to a tweet from Guo, in which she mentioned Passes’ work on technology that could create AI likenesses of creators. These concerns were further escalated by the fact that Passes does not currently have content guidelines on its website. Guo addressed these concerns by stating that Passes will have more flexible content guidelines compared to Fanhouse because they use a different payment processing method. However, content guidelines are essential for protecting users from harassment, hate speech, and other inappropriate behavior.
Passes offers a built-in customer relationship management (CRM) system that helps creators tailor their content to their highest-paying fans. Guo claims that Passes has had success in attracting creators from various platforms and has increased their income by at least double. She also emphasized that Passes aims to provide a seamless transition for creators, eliminating the need for them to compete on multiple platforms.
Income, though important, is not the sole consideration for creators when choosing a platform. Factors such as feeling safe and cared for are also crucial. Nguyen believes that it can be challenging for companies that have taken VC money to align the interests of their investors with those of their users, especially in the case of creator companies. According to her, a creator platform that is not founded by a creator may struggle to understand the needs and concerns of creators.
Fanhouse creators now face the decision of whether to continue creating content on Passes. In the coming weeks, creator and fan accounts will be transferred to Passes, allowing them to access the site using the same login credentials. To facilitate the transition, Passes is offering creators a 95% take rate for the first six months, which will then decrease to 90%, aligning with Fanhouse’s existing rate. This rate remains above industry standards.
