Hooked on reading — text me, Ishmael
Editor’s note: Here are five Bay Area startups worth watching this week.
Seeing children grow up with phones in their hands, Prerna Gupta and husband Parag Chordia were worried that Generation Z — the “Snapchat generation,” as they call it — was missing out on the novelty of a good book.
But instead of trying to persuade the younger generation to read paperbacks, they instead decided to bring stories to them on the medium they know best: texting. In December, the couple released Hooked, an app that presents stories in the form of text messages. “We consume almost all our media through the phone,” said Gupta, the CEO. “So we started to think about how can we make reading more engaging in a world where we are competing for attention with social media.”
Hooked is free, but users need to pay if they want access to all its material. According to Apple, which publishes rankings of apps by downloads and purchases, it is consistently topping the charts for in-app purchases. Gupta said about 20 million people have installed the app.
The stories are told in the form of text messages exchanged back and forth between fictional characters. Hooked is one of many digital book alternatives that have
topped the app charts over the past few months.
The San Francisco company has picked up $6 million in funding from 24 investors, according to Crunchbase.
Gupta and her husband hope to move into different media, such as video and virtual reality. They have nine employees, and contract with authors, who submit ideas and are paid if the story is accepted. Hooked also recently started accepting submissions from readers.
“Our belief is that there is something fundamental about reading great stories, and that demand for reading doesn’t change,” Gupta said. But, she added, the format certainly will.
Also trending: Hello
What it does: Created Sense, a sleep-tracking system. What happened: It shut down. According to Axios, the company was looking for a buyer to no avail. CEO James Proud announced the closure in a Medium post. He could not be reached for comment. Why it matters: After more than $40 million in venture capital, this startup demonstrates a simple truth of the tech world: Startups can fail. Another maxim: Hardware is hard. Headquarters: San Francisco Funding: $40.5 million Employees: 11-50
Nginx
What it does: A Web server that helps an application or website load quickly. Its users include Uber, Airbnb, Hulu and Netflix. What happened: CEO Chad Torbin did not know why his company was trending last week, but said the company is “popular in the developer space.” Why it matters: Loading information quickly is critical because of users’ short attention spans. As Torbin explained: “If you open Uber and it takes too long to load, you’re going to close it and go to Lyft.” Headquarters: San Francisco Funding: $41 million Employees: 100
Fluxx
What it does: Manages the relationship between donors and family foundations, corporate philanthropy arms and government agencies. What happened: The startup just unveiled its Grantseeker software, which helps nonprofits track their funds as well as where the money is going. It also helps donors find which organizations are best suited for their money. Why it matters: Billions of dollars in grants are handed out every year. CEO Jason Ricci said his company’s algorithm can help donors and foundations track where that money is having an impact. Headquarters: San Francisco Funding: $26.2 million Employees: 84
Restless Bandit
What it does: This company created an algorithm to help firms sort through job applicants. What happened: It was recently named one of Inc. magazine’s top 25 most disruptive companies of the year. It also picked up another round of funding in March. Why it matters: Sending in an application for a job can sometimes feel like dropping it into a black hole. This algorithm sifts through candidates who have applied to the company in the past to make sure qualified candidates don’t slip though the cracks. Headquarters: San Francisco Funding: $14 million Employees: 20