Chicago's startup scene has a reputation---though somewhat unfairly---for being mainly a B2B tech town.
Companies like Cleversafe, Braintree, Trustwave, SMS Assist and others have helped drive the perception that Chicago tech companies are pragmatic, business-focused and less flashy than startups you'll find in Silicon Valley or New York.
And while it's true that business software has certainly helped put Chicago's tech scene on the map, the city has produced more than a few consumer startups that have become household names---from Groupon, Grubhub and Trunk Club, to more recent upstarts like ParkWhiz and Spot Hero.
However, it is fair to say Chicago rarely sees startups like Cameo.
Cameo lets you request and pay for video shout-out messages from celebrities. Via the startup's website and newly launched iPhone app, users can browse a list of celebrities ranging from Dennis Rodman to Lance Bass, and request personalized video messages for themselves or loved ones. Fees for the celebrities range from $5 up to $2,500, with Rodman charging $1,000 per video message while Bass is currently offered as a "featured" celebrity for just $80, for example. Cameo takes a 25 percent cut, and the celebrity keeps the rest.
"Today, selfies are the new autograph," CEO and co-founder Steven Galanis said in an interview at the company's 1871-based office. "If it's not on Instagram, it didn't happen."
A post shared by Cameo (@bookcameo) on Apr 24, 2018 at 1:10pm PDT
To succeed, Cameo needs to scale---both on the user side and the celebrity side. And in recent weeks the startup has seen the type of viral growth you need to get a business like this off the ground. After getting a writeup in the Chicago Tribune last month, Cameo has appeared in Business Insider, Gizmodo, Elle Magazine, the print edition of the Washington Post, and more.
Since launching just over a year ago, Cameo has 1,600 celebrities on its site, and it has delivered more than 30,000 personalized video messages.
"We’re picking up massive traction," Galanis said. "We’re growing like crazy."
Consumer apps, the kind that teenagers tell their friends about and get written up in the Washington Post, don't grow on trees in Chicago. This is partly due to the local venture capital landscape; Chicago VCs typically like to bet on business software companies that focus on revenue and profitability. Galanis declined to say how much money Cameo has raised, but said the company's investors include some of the top local seed-stage firms in the city.
One of those investors is Chicago Ventures. Rob Chesney, a venture partner at Chicago Ventures, said Cameo has hit on a product that resonates with consumers, and has the potential to be a B2C startup success for Chicago.
"It’d be a huge thing for Chicago to have this type of success in our city," Chesney said. "There aren't as many of these types of consumer businesses being built here. I think what they’re doing is super fascinating."
Cameo relies on viral organic growth and buy-in from celebrities. But unlike a lot of social apps you'd find in the Valley, Cameo has a built-in revenue stream that allows it to grow without needing to turn on ads and hit wildly large user numbers.
"A lot of social media businesses require massive scale to have monetization," Chesney said. "They’ve unlocked this kind of e-commerce marketplace monetization scheme ... they’ve got this interesting way to monetize in a way that’s a real win-win for the whole marketplace."
A post shared by Cameo (@bookcameo) on Mar 31, 2018 at 10:49am PDT
On the celebrity side, Galanis said Cameo has grown largely thanks to a referral program where celebs can earn extra money if they recruit other famous people to the platform. Cameo users can also request celebrities to join the site, which has been a driving force for knowing who to on onboard next, Galanis said.
Cameo isn't for stars like Leonardo DiCaprio (though Jordan Belfort, the character he played on The Wolf of Wall Street, is on Cameo and charges $2,500 per message---the most of anyone on the platform). Its sweet spot is more of the B and C level celebs looking to earn some extra cash and connect with their fans. Recent additions to Cameo include White Sox great Frank Thomas, ex-football player Terrell Owens, and current NBA star Andre Drummond. Perez Hilton, Chumlee from Pawn Stars, and MTV's TJ Lavin are on the platform. Nearly three dozen Real Housewives are on Cameo.
But Cameo has also tapped into a new subculture of fame---people who've risen to stardom from the internet. Vine stars, YouTube celebrities, Instagram influencers, gamers and other internet celebrities make up a large portion of Cameo's talent and are among some of the startup's top earners.
Galanis, well aware that Cameo is still in its infancy with much still to prove, acknowledged that Cameo's success could be a turning point for consumer startups in Chicago.
"I do think this town is starved for that consumer-facing tech company," Galanis said. "There's a dedicated group of Chicago investors who want nothing more than a company like this to work."
Chicago Ventures and others certainly hope so.
"Cities like Chicago rely on creating this kind of evidence that these kind of businesses can be built here," Chesney said. "I'm hoping these guys can do it. I feel confident about it."
