Twitter Goes to War With Substack

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
Twitter Goes to War With Substack
Evan Xie

This is the web version of dot.LA’s daily newsletter. Sign up to get the latest news on Southern California’s tech, startup and venture capital scene.

Substack announced a new feature this week called “Notes,” which will allow users to publish brief posts containing a few sentences, quotes, simple reactions, images, and links. These Notes are going to get their own dedicated tab, separate from longer-form Substack content, and the basic format feels purposefully borrowed from Twitter. Individual notes can be liked, replied to, and reshared – just like tweets – and there will even be separated tabs for authors to which you’re specifically subscribed vs. content from your “extended Substack network,” similar to Twitter’s “Following” vs. “For You” structure.


In their blog post outlining the new feature, Substack co-founders Chris Best, Hamish McKenzie, and Jairaj Sethi were quick to differentiate Notes from Twitter, drawing attention specifically to their revenue model. While Twitter is free (unless you’ve just GOT TO have that blue check) and writers receive no direct financial compensation for their contributions, Substack remains subscription-based. Rather than aiming for virality for its own sake, Team Substack argues that subscriptions provide a genuine incentive for posting quality content, as Notes will help Substack authors convert “casual readers into paying subscribers.”

High-minded rhetoric aside, Substack could clearly use a hot new feature. According to newly-disclosed SEC statements, the company burned through around $25 million in cash during a major 2021 expansion, up from just $1 million in expenses the year before. For the entire year 2021, the company earned gross revenue of just $11.9 million, mostly from its share of blog subscriptions. (2022 data is currently unavailable.)

Despite the obvious aesthetic similarities between Notes and Twitter, and Substack’s very overt attempts to lure away Twitter users, they seem likely to remain different kinds of platforms. In large part because so much of the power of Twitter is in its wide-open accessibility to all. Though a small percentage of overall users drive most of Twitter’s activity and engagement, they’re not always the same people who could attract massive paid followings on a platform like Substack. It remains to be seen whether a subscription-based platform can drive conversations and generate the kinds of breakout viral moments that have made Twitter feel essential.

Nonetheless, Twitter seems to view Notes as a threat. Within 24 hours of the feature’s announcement, the social network and microblogging service began scaling back interactivity with Substack. At first, Substack writers were just unable to embed tweets in their posts, but now, Twitter has blocked all likes, retweets and comments on any links pointing back to a Substack newsletter. As well, Twitter users can’t link to a Substack blog via their profile, making it essentially impossible to use your Twitter account to promote a paid Substack blog. (At least for now, you can apparently still get around these changes with a URL shortener. But you didn’t hear that from us…)

Asked about the controversy by The Verge, Substack’s trio of founders used Twitter’s moves as further ammunition, pointing out that it’s dangerous for writers to rely on a platform on which “they don’t own their relationship with their audience” and “where the rules can change on a whim.”

Beyond just bolstering a key argument in favor of its competitor, Twitter’s decision to go to war with Substack pretty clearly makes its own platform worse. By removing the incentive of promoting work for which they actually get paid, it seems likely that this move will discourage some active users – who, again, drive the bulk of Twitter’s traffic and engagement – from tweeting as much. Tellingly, the Substack purge even removed some links to Matt Taibbi’s “Twitter Files” reporting, produced in coordination with Twitter and its owner, Elon Musk.

As well, Twitter’s prominence is largely based around being at the center of so much online conversation and discourse. By removing the ability of Substack writers to refer back to tweets, Twitter is purposefully taking itself out of a lot of these discussions. If you make it significantly harder for writers to talk about tweets… they might actually stop talking about tweets. Which would be far worse for Twitter, overall, than just the presence of a new competitor, which may not actually be a direct competitor anyway.

Subscribe to our newsletter to catch every headline.

⚖️FTC’s "Click to Cancel" Rule and Its Ripple Effect on Tech

🔦 Spotlight

Happy Friday Los Angeles,

The FTC’s new “Click to Cancel” rule is shaking up subscription-based tech. Now, instead of navigating a maze of cancellation hurdles, users can cancel subscriptions as easily as they signed up—with a single click. This shift is a wake-up call for SaaS, streaming, and app-based companies, where once-hidden exit options often kept users around simply because canceling was a hassle.

The rule also requires businesses to send regular renewal reminders, ensuring customers stay informed about upcoming charges. It's more than a cancellation button—it’s about transparency and giving users control over their decisions.

For startups, the impact goes deeper than UX adjustments. Many have relied on "dark patterns," which subtly discourage cancellations by hiding the exit. Now, companies must shift toward building genuine loyalty by delivering real value, not by complicating exits.

While this might affect retention rates initially, it could lead to more sustainable business models that rely on satisfaction-driven loyalty. Investors may start prioritizing companies that emphasize transparent, long-term engagement over those that depend on dark patterns to maintain retention metrics.

The rule opens the door to more ethical UX design and a truly user-centered approach across the tech industry. It may even set a precedent against manipulative design in other areas, such as privacy settings or payment methods.

Ultimately, the “Click to Cancel” rule presents an opportunity for the tech industry to foster trust and build stronger customer relationships. Startups and established companies that embrace transparency will likely stand out as leaders in a new era of customer-centric tech, where trust—not tricky design—is what retains users.

As the tech landscape continues to evolve, LA Tech Week 2024 offers a chance to explore these shifts in real-time. Check out the upcoming event lineups to stay informed and make the most of your time:

For updates or more event information, visit the official Tech Week calendar.


🤝 Venture Deals

LA Companies

  • Ghost, a company supporting top brands and retailers with streamlined logistics and fulfillment solutions, raised a $40M Series C funding round led by L Catterton to fuel its continued growth and innovation. - learn more

LA Venture Funds
  • Assembly Ventures participated in a $27M Series A round for Monogoto, a provider of software-defined connectivity solutions that enable secure, cloud-based IoT and cellular network management on a global scale. - learn more
  • Angeleno Group participated in a $32M Series C round for REsurety, a company that recently launched an innovative clean energy marketplace aimed at providing better financial and operational insights to support renewable energy transactions. - learn more

    Download the dot.LA App

    🌴🧑‍💻 Your Guide to LA Tech Week 2024

    🔦 Spotlight

    Happy Friday Los Angeles,

    As many of you know, LA Tech Week is right around the corner, kicking off next Monday October 14th bringing together founders, creatives, investors, and engineers for a week of immersive events, panels, and socials across the city. From blockchain and AI to biotech and design, LA Tech Week is a chance to dive into the ideas shaping today’s technology landscape.


    What to Look Forward To

    Insights from Visionary Leaders: Hear firsthand from industry trailblazers as they share stories, challenges, and key lessons from their experiences. Expect fresh perspectives on AI, venture capital, biotech, and the ethical questions around emerging technologies.

    Interactive Panels: This week isn’t about watching from the sidelines; it’s about engaging directly with the tech community. Participate in hands-on panels discussing everything from startup scaling to ethical AI, with honest insights from those actively shaping these fields.

    Networking Mixers & Social Events: Meet and connect with founders, VCs, developers, designers, and fellow techies across LA. Rooftop mixers, lunch meetups, and creative gatherings offer the perfect chance to spark ideas and collaborate.

    Plan your week with the daily lineup, organized by location for easy navigation:

    For updates or more event information, visit the official Tech Week calendar.

    Enjoy LA Tech Week 2024!!


    🤝 Venture Deals

    LA Companies

    • Clout Kitchen, a Los Angeles and Manila based startup, has raised $4.45M in seed funding, co-led by a16z SPEEDRUN and Peak XV’s Surge, to develop AI-powered digital twins, which enables gaming creators to produce realistic virtual avatars for content and fan engagement. - learn more
    • MeWe, a privacy-focused social media platform, has raised an initial $6M in Series B funding led by McCourt Global to support Web3 integration and expand its decentralized network for 20 millions users. - learn more

      LA Venture Funds
      • EGB Capital participated in a $10M Series A funding round for MiLaboratories, which develops software that enables biologists to independently analyze complex genomic data, accelerating research and discovery in fields like drug development. - learn more
      • Crosscut Ventures participated in the $13.75M seed round for Airloom Energy, a company focused on developing airborne wind energy technology to harness high-altitude winds, with plans to accelerate a pilot project in Wyoming. - learn more
      • Overture VC participated in a $5.5M Seed funding round for Molg Inc., a company developing robotics and software for circular manufacturing, designed to disassemble electronics efficiently and recover valuable materials to reduce e-waste and support sustainable production. - learn more


        LA Exits

        • Options MD, a Los Angeles based telemedicine platform that provides care for people suffering from severe and treatment-resistant mental illness, is set to be acquired by Resilience Lab, an AI-driven provider focused on enhancing mental health care access. - learn more

        Download the dot.LA App

        LA Tech Week 2024: Saturday-Sunday Event Lineup
        tech-week

        Here’s what’s happening during the closing weekend (Oct 19 - Oct 20) of LA Tech Week 2024! Events are organized by location so you can easily catch the sessions that interest you most.

        SATURDAY EVENTS

        BEVERLY HILLS

        12:00 PM

        • BIG Showcase (Invite Only):

        BIG Showcase (Invite Only)

        2:00 PM

        Light Dao

        Struck Capital, Seahorse Express

        EAGLE ROCK

        12:00 PM

        Sunrise Integration, Shopify

        EL SEGUNDO

        9:00 PM

        Administratum, Valar Atomics

        HOLLYWOOD

        10:00 AM

        Passes

        MALIBU

        6:00 PM

        • Malibu Beachfront Investors Networking & Wine Tasting:See Details

        Gaya Ventures

        MARINA DEL RAY

        6:00 PM

        • Awaken Your Spirit: A Journey of Transformation (Invite Only)

        Sagos Distro, Alma Wellness

        SANTA MONICA

        7:00 AM

        Founders Running Club

        8:30 AM

        Techstars

        9:00 AM

        Magic Mind

        StartupStarter, Inc., City of Santa Monica

        10:00 AM

        Gen She

        AI LA

        Crea, Barry's, Unsubscribe

        10:30 AM

        Plantologist

        11:30 AM

        • Pickleball Palooza (Invite Only)

        YouTube

        1:00 PM

        • Realfren Games: From strangers to an inner Realfren within 52 weekends: See Details

        Office for Humanity and Circuit Works

        • Talking blockchain technology with special guests: See Details

        LadyDayDao

        5:00 PM

        KARD, What's Plots

        THE VALLEY

        7:00 AM

        Camino5

        VENICE

        9:00 AM

        Westside Yogis

        11:00 AM

        Open App

        1:00 PM

        Ripe and Teddy's Hot House

        4:00 PM

        • Fashion Forward: How AI is Redefining the Fashion Industry: See Details

        VIAVIA, BNTO.RENT, ALMA.AI

        VIRTUAL

        11:00 AM

        BLCK UNICRN

        WEST HOLLYWOOD

        7:00 PM

        Next Sequence

        SUNDAY EVENTS

        INGLEWOOD

        12:00 PM

        Entrepreneur Ventures, VCPE GROUPS

        PLAYA DEL RAY

        2:00 PM

        AI LA, DELL, NVIDIA

        SANTA MONICA

        10:00 AM

        • Women Founders, Cold Brew & Beach View, Rooftop: See Details

        Clutch Talent

        11:00 AM

        11DollarSunglasses.com, Less Litter Foundation

        12:00 PM

        Data in LA, Amplitude

        12:30 AM

        New Moon, Warner UK Innovations

        TOPANGA CANYON

        3:00 PM

        Dreamore

        VENICE

        8:00 AM

        • Surf session with founders, investors, creators: See Details

        Surfed Club, Bow Shock

        12:00 PM

        • Podcast Panel and Brunch: LA Tech Community Builders: See Details

        WeAreLATech.com, Blankspaces.com

        VIRTUAL

        2:00 PM

        BLCK UNICRN


        For updates or more event information, visit the official Tech Week calendar.

        Enjoy LA Tech Week 2024!


        Download the dot.LA App

        RELATEDEDITOR'S PICKS
        LA TECH JOBS
        interchangeLA
        Trending