Type Network Update

MrEchs

Hello, I wanted to share a few updates from Type Network. 

So far this year Type Network has been joined by more than 20 new foundry partners. We focus on the best fonts from the world's top designers, and our roster continues to include many of the most talented and celebrated in the world.

These include TypeTogether, Paratype, Identity Letters, Leinster Type, Altertype, Character Type, exljbris, Signal Type Foundry, Swell Type, Hamilton Wood Type, Herzberg Design, Comicraft, and Nova Type. We've also added these TTF foundries: P22, Lanston Type Co, My Creative Land, Typesenses, Midwest Type, XO Type, and Josh Ownby.

About 20 more foundries have agreed to join TN and are currently moving through the onboarding process. 

For the first quarter of 2024 our foundries earned more in royalties than in any prior quarter in our history. That excludes Font Bureau fonts, which accounted for less than 5% of last quarter's royalties. That will go to zero next quarter as we end our relationship with Monotype.

Our other foundry partners earned just shy of $1 Million -- about 20% higher than our next-best quarter ever. 

Our partnership with Adobe Fonts contributed a bit less than half of that. The fastest-growing segment is enterprise sales, including $100,000+ in sales of fonts from foundries who joined TN in the current or prior quarter. 

That's welcome news, although this growth does not come without challenges of its own. We're getting stronger, but the work is not getting any easier. I'm very grateful for the patience of our current partners and the many who have contacted us looking to learn more about TN.

If you'd like to consider a partnership with Type Network, let's talk. We can start out by handling a single enterprise transaction for you, then take it from there. Type Network does not require any long-term commitment from foundry partners. 

Most of our team will be at Typographics in NYC next week. If you're interested in meeting up, drop me a line - matthew at typenetwork dot com. I'd love to meet up.

See you soon!

Edit: I corrected "paid out" as we are still in the process of paying out Q1 royalties. 

--Matthew
CEO, Type Network

MrEchs

Some additional interesting data: of the top ten independent foundries on TN who earned the most in Q1 (all $100k+/annually) only one also offers their fonts for sale through Monotype.

These foundries took a big risk in throwing in their lot with Type Network. We are very grateful to them for helping us ensure there is an alternative in the marketplace.

We're not perfect, and we will continue to make some mistakes. I appreciate the support offlist, and welcome the suggestions from those of you on ways we can continue to improve. Keep them coming.

We have a long road ahead of us but I hope we're offering a choice that you will all consider. 

Dave Crossland

Amazing transparency Matthew! I'm very happy to see this, I don't think I've ever seen anything like it.

MrEchs

That's kind, Dave, thank you.

We still have a long way to go but we are trying to be as transparent as we can wherever we can.

For example, in our new foundry agreement we are no longer asking for "agency" type relationships where we are free to price and sell however we want, as distributors traditionally do.

This kind of "trust us" relationship is not what the industry needs right now. Instead, we have introduced a permission model where licensing only takes place according to pricing and terms that each foundry agrees to in advance. New partners are already signing up to this model today, and we'll transition the rest ver time. 

Foundries tell me frequently that they want more information about our transactions with clients. Privacy regulations complicate this, but we are working to improve the data we share.

Starting this quarter, we'll provide each foundry with a narrative describing each enterprise license transaction, including client information, rights and uses, fees, etc. Those transactions are the largest segment of revenue, and can be described without disclosing sensitive information.  

Recently we have discovered a few instances where transactions were not recorded correctly or royalties were calculated were paid improperly. The magnitude of these errors has been quite small, but obviously none should occur. When they do, we'll correct it as quickly as possible, and we will also pay interest when it's appropriate.  

I mention this here because I don't want to give the impression that we think we're above scrutiny. Everyone should ask the most difficult questions they can of every one of their business partners.

The greatest strength we have against our competition is that we are sincerely motivated by the opportunity to help designers be successful. We're not asking for trust, but we do hope to earn it over time. 

Matthijs Herzberg

Just to back up Matthew's last paragraph, a recent anecdote. I was approached by a client I've done some illustration work for to design a custom typeface. Pretty big deal for me, would be my biggest job to date. Client informed me that they'd be getting a few more quotes, including directly from TypeNetwork.

I spoke with Matthew, who told me TypeNetwork would give the client a quote, but that he'd also tell the client they should just go directly with me. And, if the client were to move forward with TN anyway, they'd get me on board to do the font engineering.

Client hired me directly. TN could've made money, but chose the well-being of a foundry partner.

Typedesigner

This is highly revealing information! 
What is the legal form of Type Network, e.g. INC, LTD, etc.? Where is Type Network registered? Normally, for companies in the UK, for example, it is possible to view this company information at Companies House.

MrEchs

It's kind of you to share that Matthijs, thank you.

Just to be clear, type design services provided by TN are delivered by our foundry partners, who we engage as subcontractors.

Sergej: Type Network is registered as an LLC in the state of Massachusetts.

--Matthew

Typedesigner

Matthew: Thank you very much for this information!