Social Media Startups Diem and Spill Embrace Community Investment
In a bold move that challenges traditional funding models, social media startups Diem and Spill are turning to their users for investment through equity crowdfunding platform WeFunder. This innovative approach not only provides financial support but also fosters a sense of ownership among early adopters.
Diem, founded by Emma Bates, and Spill, created by Alphonzo Terrell, are leading the charge in community-driven funding for social platforms. Diem has already launched its community round, while Spill is gearing up for its crowdfunding campaign shortly.
WeFunder, the chosen platform for these campaigns, offers a unique opportunity for individuals to invest in startups with as little as $100. This democratization of investment stands in contrast to traditional angel syndicates, which often require significantly higher entry points.
The integration of crowdfunding with venture capital rounds is a strategic move for these startups. Diem, for instance, is incorporating its community round into a larger Seed Plus investment round. Charles Hudson, a lead investor, emphasizes the importance of this approach for social startups and consumer-facing businesses.
Both platforms are targeting specific communities often underserved by mainstream social media. Diem focuses on gender-expansive communities, while Spill emphasizes Black, Brown, and LGBTQ+ users. This targeted approach sets them apart from larger networks like Reddit.
Investors in these platforms will receive Simple Agreements for Future Equity (SAFEs), offering potential returns if the companies succeed. However, as with any investment, there are risks involved. To sweeten the deal, both startups are offering additional perks to investors, such as exclusive access and tiered benefits.
The trend of user investment in social media platforms is gaining momentum, with other startups like Substack and Beehiiv also exploring similar models. This shift reflects growing user interest in having a stake in the platforms they use daily.
As the social media landscape continues to evolve, the success of Diem and Spill’s community investment rounds could signal a new era of user-driven platform development and funding in the tech industry.
