Sacra estimates Brave hit $26M in revenue in 2023, up 30% year-over-year from $20M in 2022. This growth comes despite user growth flattening amid the crypto market downturn in 2022.

Brave generates most of its revenue from its Basic Attention Token (BAT), an ERC-20 token that facilitates transactions between users, advertisers, and content creators.

Advertisers purchase ad space using BAT, with Brave taking a 30% cut of revenue from user ads and 15% from publisher-integrated ads.

The remaining revenue is distributed to users (70% for user ads, 15% for publisher ads) and content creators (70% for publisher ads).

User growth has been a key driver of Brave's revenue, with monthly active users increasing from 25.4 million in 2020 to 67.18 million in 2023. This rapid user acquisition has helped boost average revenue per user (ARPU) from $0.18 in 2020 to $0.45 in 2023.

Brave raised $50M in a Series A-7 round led by Page One Ventures in February 2022, reaching a $980M valuation. With $20M in revenue for 2022, this implies a 49x revenue multiple.

Brave has raised a total of $252M from multiple prominent investors including Pantera Capital, Digital Currency Group, Abstract Ventures, Rising Tide, and Propel Venture Partners.

Brave was founded in 2015 by Brendan Eich, creator of JavaScript and co-founder of Mozilla, and Brian Bondy, a former Mozilla and Khan Academy developer.

The company's core product is the Brave Browser, a Chromium-based web browser that blocks ads and trackers by default. Key features include Brave Shields (third-party ad, tracker, and script blocking), Brave Rewards (allows users to earn Basic Attention Tokens or BAT), and Brave Wallet (built-in cryptocurrency wallet).

For content creators and publishers, Brave offers a platform to receive cryptocurrency tips and contributions from users, creating a new revenue stream outside traditional advertising.

As of 2023, Brave reported over 50 million monthly active users, demonstrating significant growth from its initial user base. The company continues to develop new features and products aimed at enhancing user privacy and creating a more equitable digital advertising ecosystem.

Brave's business model operates on multiple fronts. For users, the browser and most features are free, with revenue generated through:

1. Brave Ads: Advertisers pay to display privacy-preserving ads to opted-in users.

2. Search partnerships: Revenue sharing agreements with search engines integrated into the browser.

3. Premium services: Subscription fees for Brave Talk Premium and Brave Firewall + VPN.

The company offers several pricing models for advertisers, including flat-rate campaigns for New Tab Takeovers, Cost Per Thousand Impressions (CPM), and Cost Per Click (CPC). While specific rates aren't publicly disclosed, these flexible options cater to various advertiser needs and budgets.

Brave also generates revenue through premium features, with tiered annual subscriptions ranging from $59 to $199 for its PRO, Mega, and Ultimate plans.

The company's strategy focuses on expanding its user base through continuous browser improvements and new features like Brave Search and a native crypto wallet. As Brave's user base grows, it becomes increasingly attractive to advertisers, creating a virtuous cycle that strengthens its position in the privacy-focused digital advertising market.

Brave competes with established web browsers, privacy-focused alternatives, and emerging blockchain-based platforms. Its unique approach combines privacy features, a native cryptocurrency, and an innovative advertising model.

In the mainstream browser market, Brave faces competition from industry giants like Google Chrome, Mozilla Firefox, and Apple's Safari. These browsers dominate market share but often prioritize user data collection for advertising purposes.

Brave differentiates itself by offering built-in ad and tracker blocking, which significantly improves page load times and reduces mobile data usage. Unlike its competitors, Brave's core business model isn't reliant on user data monetization, allowing it to offer a genuinely privacy-centric experience.

Brave competes with other privacy-oriented browsers such as DuckDuckGo's mobile browser and Tor Browser.

While these alternatives also emphasize user privacy, Brave's integration of the Basic Attention Token (BAT) ecosystem sets it apart. Brave's reward system allows users to earn BAT for viewing opt-in ads and to support content creators directly.

In the blockchain space, Brave faces competition from emerging Web3 browsers and decentralized platforms.

Projects like Status and Opera's crypto-enabled browser offer similar features such as built-in crypto wallets and dApp support. However, Brave's established user base of over 50 million monthly active users gives it a significant advantage in adoption and ecosystem development.

Brave's integration of features like Brave Search, Brave Talk (video conferencing), and a planned decentralized exchange (DEX) aggregator positions it as a more comprehensive Web3 platform compared to many competitors.

Brave has tailwinds from growing privacy concerns and the shift to Web3, and has the opportunity to grow and expand into adjacent markets like digital advertising, search, and decentralized finance.

As privacy regulations tighten and consumers become more aware of data collection practices, Brave is well-positioned to disrupt the digital advertising industry. Its innovative model rewards users for viewing ads while protecting their privacy.

This approach could capture a significant portion of the $455 billion global digital advertising market.

Brave's ad platform allows advertisers to reach engaged audiences without relying on invasive tracking.

As more brands seek privacy-compliant advertising solutions, Brave could expand its advertiser base beyond crypto companies to mainstream brands. The company's growing user base, now over 50 million monthly active users, makes it an increasingly attractive option for advertisers.

Brave Search, launched in 2021, represents a major expansion opportunity. As users seek alternatives to data-harvesting search engines, Brave could capture market share from industry giants.

The global search advertising market, valued at $260 billion in 2023, presents a massive opportunity if Brave can scale its user base and refine its search capabilities.

Beyond search, Brave could leverage its privacy-focused approach to develop additional web services. Potential areas include email, cloud storage, and productivity tools – all with built-in privacy protections. This would position Brave as a comprehensive privacy-focused alternative to the Google ecosystem.

Brave's integration of cryptocurrency and blockchain technology through the Basic Attention Token (BAT) positions it at the forefront of Web3 adoption. As decentralized applications and services grow, Brave could become a key gateway for mainstream users to access the decentralized web.

The browser's built-in crypto wallet and plans for a decentralized exchange (DEX) aggregator demonstrate Brave's ambitions in the decentralized finance (DeFi) space. By offering user-friendly access to DeFi services, Brave could tap into the rapidly growing DeFi market, projected to reach $230 billion in total value locked by 2025.

1. Privacy-centric model limits data monetization: Brave's core value proposition of privacy and blocking third-party trackers inherently limits its ability to monetize user data compared to competitors. While this aligns with user preferences, it constrains Brave's revenue potential and ability to offer targeted advertising at scale. This could make it challenging to attract major advertisers and achieve profitability long-term.

2. Dependence on cryptocurrency adoption: Brave's rewards system and business model rely heavily on the Basic Attention Token (BAT). If cryptocurrency adoption stalls or faces regulatory hurdles, it could significantly impact user engagement and Brave's ability to incentivize content creators and advertisers. The volatility of BAT's value also introduces financial uncertainty for all ecosystem participants.

3. Browser market saturation: Despite its privacy focus, Brave faces intense competition in a saturated browser market dominated by tech giants with vast resources. Differentiating sufficiently to drive mass adoption beyond privacy-conscious users remains a challenge. If Brave fails to capture significant market share, it may struggle to achieve the network effects necessary for its advertising model to succeed at scale.