OnlyFans was established in 2016 by adult industry veteran Tim Stockley and is owned by a London-based private corporation named Fenix International Limited. Stockley resigned as CEO at the start of the year 2022. Over $3 billion has been distributed to creators. Following announcement of its financial results for the year ended Nov. 30, 2021, OnlyFans’ revenue grew 160%, to $932 million.
Adult performers and social media influencers successfully monetize their fan bases by hiding behind paywall content such as high-resolution photographs and videos. Extra features and individualized material are available for purchase by users.
Is OnlyFans publicly traded? If yes, how can you invest?
Keep reading to learn more!
How Does OnlyFans Make Money?
The company’s business strategy is mainly responsible for OnlyFans’ success. OnlyFans restores control to the hands of producers, regardless of the site’s appeal to the adult entertainment sector. Since April 2020, when Beyoncé addressed it in the song “Savage,” the platform’s popularity has skyrocketed.
The New York Times reports that OnlyFans charges a flat 20% fee and nets around 12%. The creator may set the price at anything they like, and they will retain 80% of the proceeds. The company’s model gives the artists greater power over their material and company by removing advertising and intermediaries (like film studios and conventional adult websites). Its popularity has spread beyond the realm of the adult content business, with users including professional athletes, chefs, singers, celebrities, health and spiritual experts, comedians, fitness gurus, and cosmetics artists.
The policy to ban “any material including sexually explicit activity” was announced on August 19th, 2021. However, discretionary nude photography and video will be OK. On August 25th, it overturned its original verdict.
What Are the Controversies Surrounding Onlyfans?
Despite its popularity, though, OnlyFans isn’t without its peculiar controversy. Although there is no restriction on who may use the site, its prominence in the adult content sector has made it well-known.
OnlyFans has taken some heat for this from its detractors. Many people who work in the sex business, however, see OnlyFans as a secure option since they have complete editorial control over the information they create. The corporation was surprised by its established reputation, and it seriously considered prohibiting any sexually explicit material. However, this resulted in a dramatic flight of content makers whose livelihood depended on the distribution of mature materials. As the debate continued, the prospect of losing so many users led them to change their minds. OnlyFans values its community highly, so the company opted to maintain a partnership with people in the adult entertainment sector.
Within the OnlyFans community, there are a variety of niche markets. Aside from those who work in the adult entertainment sector, there are creators in every other significant field. On OnlyFans, you may follow your favorite YouTubers, visual artists, and podcasters. But in recent years, OnlyFans has also become popular with regular famous people. In 2021, reality stars and musicians were among the most lucrative customers.
This is evidence that the website is transitioning away from its primarily voyeuristic focus. It’s not necessary to work in the adult sector to utilize the site, but the high rates of remuneration and openness to collaboration make it a top pick for those who do.
When Is the IPO Date for OnlyFans?
The rumored date for the OnlyFans IPO has not been confirmed. The company’s ownership is highly concentrated at the top and hasn’t even tried to get venture capital yet.
It is common practice for rapidly expanding businesses to approach venture capital firms for funding to hasten their expansion. However, the reports show that the corporation has a profit margin of roughly 12% of sales. Since profits are available, they may be added to the business to help it expand. The firm may continuously pursue private fundraising if it needs further expansion funds.
However, private investors will need access to capital in the long run, which may prompt an initial public offering. Private investment might help OnlyFans determine its worth before going public. The owners may try to get public money as an alternative to private investors. The existing owners may benefit more by letting the market decide the company’s worth. Until the owners make more public remarks or give interviews to the press, we won’t know. However, since it is situated in London, it is more likely to make its initial public offering (IPO) on the LSE.
You may save this page to check back for updates on OnlyFans’ shares and an initial public offering.
How To Buy OnlyFans Stock
There is no evidence that OnlyFans is heading toward an initial public offering. An initial public offering, if ever, is likely some years away. In light of that, I’ll go through the three methods in which you may potentially acquire OnlyFans Stock:
1. Buy OnlyFans Stock After IPO or SPAC
It will be most straightforward for ordinary investors to buy OnlyFans stock after SPAC or the IPO has closed since doing so during the IPO period may prove difficult. You probably won’t be able to invest in highly sought-after initial public offerings (IPOs), except if your brokerage account is over $1m, and your broker routinely gets IPO allocations. Stocks are sometimes available to patient investors at prices equal to or lower than their initial public offering (IPO) price. However, not all cases are like this. Despite widespread expectations to the contrary, Uber’s stock price declined on its IPO day.
It’s possible that the rewards won’t justify the time and effort put into acquiring IPO shares. Also, you may put in a lot of work to get shares but end up with a little allotment, reducing your potential profits. Even though IPOs may result in one-day gains of 20% or more (and even 100% in exceptional situations, like Airbnb and Doordash), the most substantial profits will occur in the decade after the IPO if the firm is innovative. Consider Amazon, Netflix, or Tesla as examples. Even if you waited years to buy the shares after the first public offering (IPO), you would have made over 1,000%.
Opening a stake after the Initial Public Offering and consolidating if the price falls is a good strategy for patient investors interested in purchasing OnlyFans shares. Day traders may try to buy shares of an IPO to make a quick profit.
2. Have a Broker Assist You
Investors with ambition may start preparing for the upcoming OnlyFans IPO. Four variables affect your ability to purchase shares in an initial public offering:
- IPO interest
- The broker you use and your eligibility
- Your broker’s AUM (Assets Under Management)
- Shareholders’ propensity for frequent trading
Demand for first public offerings (IPOs) affects the odds of getting IPO shares. The most famous IPOs are the most difficult to get into. IPO shares are not available via most internet brokers. Verify this with the manufacturer to make sure it fits yours. Legacy brokers like Fidelity and Charles Schwab (selling shortly after the IPO) have minimum qualifying limits and trading infraction fines. However, even if they qualify, brokers must sub-allocate any IPO underwriter-allocated restricted shares. Without full disclosure, we can only speculate that the wealthiest investors are given preference.
Now we reach ClickIPO – A mobile app that connects regular people to initial public offerings (IPOs) via partnerships with companies like Webull (directly) and TradeStation (through the app). There is no bare minimum to create an account. Based on an investor’s Investor Score, ClickIPO determines which investors should get IPO shares first. Investors more inclined to sell their shares quickly are not ideal recipients of initial public offerings (in theory). ClickIPO is, therefore, beneficial to both underwriters and freshly public firms.
A speedy return on investment from an IPO is one way that giant underwriters like Morgan Stanley reward their largest customers. Even after joining a broker that provides IPO access, there is no assurance that you will get shares in an IPO, especially if there is tremendous demand. Therefore, the best time to buy the stock would be after the IPO when trading has begun.
3. Buy OnlyFans Stock in Secondary Markets Before the IPO
Those involved in a company’s early stages, including the founders, early employees, and investors, often face a challenging situation. This is because they have substantial shares in a privately held corporation. These investors’ net worth may be in the millions, thanks to their stock holdings, but their investments are very illiquid since their shares never trade on an exchange.
This might be a problem if OnlyFans provides workers with ownership stakes in the holding company. The original owners might always try to sell to individuals. There are several options for early investors and workers to sell their shares before an initial public offering (IPO). Linqto, EquityZen, and Forge are just a few of the most notable. These platforms increase the marketability of a scarce commodity. Members of these sites who are accredited investors (those with investable assets of at least $1,000,000) may try to acquire shares of these firms when they go on sale.
As the company’s financials have not been publicly reported to regulators, the risk to investors is high, so the shares are being offered exclusively to authorized investors.
What Are Some Companies Similar To OnlyFans?
OnlyFans is a social networking platform and content-sharing platform where creators may exhibit their work to an audience. These businesses provide alternatives to OnlyFans. For comparison, we have produced a list of OnlyFans’s major publicly listed competitors. They may not be direct competitors, but they have many characteristics.
PearPop is OnlyFans’ main competition. It follows the same business model as it delivers the material its offline and online producers distribute and share. In addition, it connects consumers who use TikTok with artists and content creators hosted on the network. It was established in 2020 by Guy Oseary and Cole Mason. It has now gained popularity as notable people have signed up for it. The business relies mainly on 25% of the money it keeps from content creators.
2. Meta Platforms (NASDAQ: F.B.)
When people think of investing in social media or technology, Facebook is generally the first stock that comes to mind. In anticipation of its plans to create the “metaverse,” the company rebranded itself as Meta last year. In addition, a program was unveiled for making subscription-based content. Meta is focused on moving beyond social media into a whole new way of life. Sooner rather than later, Meta will set the framework for the widespread use of Virtual Reality in everyday life.
The company discussed creating whole virtual lifestyles that are more immersive than those seen in the Second Life video game. And it’s important to remember that Meta, which includes Instagram and other profitable social media sites, is OnlyFans’ closest competitor. Facebook inspired OnlyFans. So this is a great rival stock to purchase since the Meta group contains so many companies.
3. Snap, Inc. (NYSE: SNAP)
Snapchat is another good social media platform to put money into. Snap, Inc. is the parent business of Snapchat. It’s a popular social media messaging app whose foundation is the exchange of photos between contacts. This company should be considered when looking for a stock alternative to OnlyFans. When it initially launched, Snapchat was a revolutionary app. Users really like being able to send and receive media files. However, Snap’s influence extends beyond only Snapchat. In addition, the company owns Spectacles and the widely used Bitmoji imitating emoji platform.
Spectacles are a pair of futuristic eyewear that, when linked to a smartphone, function as a second camera. Users can document their lives from the ground up. OnlyFans faces competition from Snapchat and other similar services. If you’re looking for a stock to invest in, Snap Inc. might be one of the options to explore.
4. Twitter (NYSE: TWTR)
Twitter is a viable alternative to OnlyFans if you want to put money into a social media platform with a vast user base. There are millions of users on it every day, and it rules the discussion in most parts of the world. You may use Twitter to keep up with your favorite content creators and evaluate global news items. In addition, users may have conversations with their favorite companies and creators of content directly. This is why Twitter has grown so popular among businesses and regular people. So you can only really seek a competitor to OnlyFans on Twitter.
5. Zoom (NASDAQ: Z.M.)
Since the lockdown was lifted, Zoom has continued to thrive. You may count on Zoom’s continued popularity for quite some time. Popular websites and organizations have joined with Zoom to expand their service usage. In the future, Zoom’s more realistic approach to communication may serve as a bridge for those who aren’t yet ready for the metaverse. Since hundreds of companies and schools, in addition to families, utilize Zoom for communication and training, it may be a better investment option than OnlyFans.
Should You Invest in OnlyFans Stock?
We understand that you’d want to put money into it, but it’s unclear whether or not it will ever be traded publicly, so you’d be better off shopping elsewhere. Also, if you wait, you can miss out on some great chances that have just arisen in the market. It’s not the same, and we know it.
Final Thoughts on OnlyFans Shares
OnlyFans is now one of the most controversial online social communities.
One of the other sides of the coin is that it’s one of the most profitable for producers of all stripes. For this reason, investment in the company should be considered. To date, there has been no announcement about an IPO for OnlyFans, and the company is not presently traded publicly. However, the company’s difficulty in attracting outside investors suggests that an initial public offering (IPO) may soon be in the works.
FAQs About OnlyFans Stocks:
1. Is OnlyFans publicly traded stock available?
Currently, OnlyFans stock is not publicly traded. OnlyFans is owned privately and run by Fenix International Limited. Tim Stokely, the company’s creator, adult industry veteran, and proprietor of an adult webcam business, and Leo Radvinsky, controls the vast majority of shares in OnlyFans. Perhaps because of its founders, the business has not yet obtained financing from venture capital companies. However, investors may grow more enthusiastic about the firm if it diversifies into other media types.
On June 16th, last year, Bloomberg revealed that OnlyFans was attempting to get venture capital at a value of over $1 billion. Last year on August 19th, Dan Primack stated that the firm was having trouble raising finance because of the offensive material posted by users. The “investment in pornographic material” is forbidden by several VCs. On March 29th, 2022, Axios reported that OnlyFans was exploring a SPAC transaction.
2. Where can I find the OnlyFans S-1 Filing?
Until the holding company chooses to pursue a public listing in the United States, the OnlyFans S-1 filing will remain unavailable to the public. Instead, a comparable report would be filed with the Financial Conduct Authority in the United Kingdom (FCA). The SEC’s portal for recently submitted Forms S-1 provides a live feed of other firms’ most recent initial public offering (IPO) applications.
3. What is a paywall?
A paywall is a barrier that requires payment to see an online resource. Paywalls are used to monetize websites, especially by digital content providers like newspapers, magazines, and their respective publishing companies. For example, in the United States, 76% of newspapers have a payment system – up 16% from 2017 – according to a report by the Reuters Institute for the Study of Journalism. This signifies a growing trend toward requiring consumers to pay to access formerly free internet material.
4. Is Fenix International Limited publicly traded?
Fenix International Limited is not a publicly listed company. Usually, investors may find a publicly listed firm in the ownership structure to put their money into, but that’s not the case here.
5. Will OnlyFans Go Public in the U.S.?
American investors may be disappointed if the listing does not take place in the United States, as OnlyFans is headquartered in London, United Kingdom. However, the company may decide to list shares on U.S. exchanges either directly or via an ADR due to the size and vitality of the U.S. markets (American Depository Receipt). Here, the underwriters grant access to their most valuable clients, then distribute the remaining shares to institutions and brokers with whom they have established ties.