A Miami startup is the first venture-backed adult content platform after raising $10.2 million in seed funding.
Slushy, a creator monetization business, raised the capital from a range of investors, including Tinder co-founder and former CEO Sean Rad, former Shutterstock CEO Jon Oringer and the electronic duo The Chainsmokers.
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The platform makes it possible for creators to connect with audiences and earn money from content even if they do not have a significant social media following. Slushy is invite-only for creators, who are able to sell products and content directly to consumers. The monetization aspect gives creators an incentive to respond to messages from users, a big difference from other apps like Instagram.
"Creators need discoverability and promotion. Consumers need intimacy and connection," CEO David Gross said in a statement.
Based in Miami's Edgewater neighborhood, Slushy has a team of 10 employees.
There are several reasons to have a hub in South Florida, Gross said. Florida, particularly Miami, is a center for the adult entertainment industry and is home to nearly 200,000 content creators. The state's low taxes were another incentive.
"Compared to other major entertainment and startup centers, such as California and New York, we can spend more money on building our business in Florida, " he told the Business Journal.
Some of the startup's investors, including Oringer and music entrepreneur Brooklyn Johnny, also live in Miami, Gross added.
Slushy plans to use the $10.2 million funding round to onboard additional creators and scale the enterprise. It will also expand into new target markets such as South America.
While funding for creator economy startups is on the rise, investors have generally shied away from backing businesses involved with adult content. Even OnlyFans, a popular online subscription service that hosts a range of creators, including performers, struggled to attract investors despite its massive growth.
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Slushy is also attracting eyeballs. The startup reports it has one million users and grew its creator base by 40% in the first quarter of the year. It now has at least 10,000 creators producing content.
Slushy is experimenting with new features to boost engagement between creators and consumers. That includes the development of hyperrealistic avatars and AI-powered chatbots to drive interactions. Its Perfect Match feature lets users swipe right on desired creators to express preference for their content and receive more in their content feed.
"Slushy merges innovative technologies with exclusive content," said Alex Pall, a member of The Chainsmokers and general partner at Mantic VC. "There is no exclusive fan engagement content platform as technically sophisticated as Slushy in today's market."
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