With Instagram now allowing 5 external links on a user’s profile, standalone link-in-bio companies are going to have a tougher time defining their value proposition.
Link-in-bio companies like unicorn Linktree — which provide tools for creating interactive lists of creators’ services that can be shared via a single URL, a bit like a mini website — took off alongside the creator economy as users sought ways to better monetize their content on platforms like TikTok and Instagram.
But after bringing in $260M in funding, momentum in the space has stalled, with funding drying up in part due to the broader venture slowdown (link-in-bio companies have raised just $12M in 2023 YTD).
A recent move from Instagram will put even more pressure on the space. The social media platform is now supporting up to 5 links on a user’s profile — the previous limit on linking was one of the main pain points link-in-bio companies solved — potentially rendering link-in-bio companies obsolete and putting the $260M in invested capital at risk.
In this brief, we use CB Insights data to analyze the market for link-in-bio companies and assess how much trouble they are really in. We look at the following data points in the space:
- Total funding
- Top funded companies
- Valuations
- Revenue
- Revenue multiples
- Days since last funding
Total funding
There are 17 companies offering link-in-bio solutions, with companies targeting various industries and developing a range of ways to customize web pages.
Collectively, companies in the space have raised more than $260M, with 68% of this funding going to Linktree, the dominant link-in-bio player. Only 9 of the 16 other companies in the space have raised.
Valuations
