Subscription publication platform kingpin Substack shared at this time that they’ve acqui-hired the staff behind Cocoon, a subscription social media app constructed for shut buddies.
We lined the Y Combinator-backed startup’s preliminary $3 million seed increase led by Lerer Hippeau again in November 2019, shortly earlier than the pandemic dramatically reconfigured how individuals used social media to speak with the individuals nearest and dearest to them. Cocoon’s preliminary pitch was for a social community in your closest buddies, one thing that would level-up the textual content group chat you could have been caught utilizing earlier than; over time, Cocoon developed its platform’s dynamics to permit for extra open social circles that customers might fine-tune at will. With the app, customers might share textual content and picture updates whereas additionally utilizing passive knowledge from sources like cellular location knowledge or health stats to ship automated updates to Slack channel-like feeds for particular teams of their buddies.
The app was co-founded by Sachin Monga and Alex Cornell, who met in product roles at Fb.
Not like loads of different networking apps, Cocoon didn’t depend on promoting or consumer knowledge to monetize, as an alternative pushing customers to pay for a $4 month-to-month subscription. Regardless of the app’s slick design, it didn’t appear to make a lot of a long-lasting splash or discover its market match, and Substack says they gained’t be persevering with assist for the app, as an alternative selecting to convey the small staff aboard. Given a few of Substack’s current initiatives round neighborhood constructing for his or her community of publication writers, it isn’t shocking that they’re looking for extra expertise within the house to assist evolve the performance of their platform.
Again in March, the startup detailed it had closed a $65 million Sequence B at a $650 million valuation, bolstering up on money as they appear to outline an area that has gotten extra eyeballs on it as of late, with each Twitter and Fb releasing publication merchandise this 12 months. They’ve been snapping up a number of smaller startups over the previous few months. Earlier this month, they disclosed that they’d purchased the talk platform Letter for an undisclosed sum. In Could, they acqui-hired the staff from a community-building consultancy startup referred to as Individuals & Firm.