2024-02-20
Shader
www.shaderapp.comHeadquarters
San Francisco, CA
Employee Count
5
Year Founded
2022
Amount raised
$580K
Business model
B2C app with a subscription for premium features & B2B option to integrate the Shader SDK for video platforms, video streams, and more
Early traction
2.6K users, 41% app store conversion rate, 28% day 1 retention, 15% day 7 retention, 32 minute average session length
Investors
Augmented reality (AR) filters, popularized by platforms such as Snapchat and used by over 250 million daily users, are notoriously complex to create.
Creating custom AR filters requires specialized engineering or 3D art skills, often taking several hours to make.
As a result, many users rely on the limited selection of pre-existing filters from social media platforms.
This week’s company provides a platform that simplifies the creation process, enabling instant text-to-AR customized lenses and effects.
Shader is an AI-powered app that makes filter generation accessible across platforms.
AI-powered filters: Shader is a no-code, text-to-AR creation tool, enabling users to easily build filters.
Generation: The app utilizes a real-time camera feature to capture filters in the moment, eliminating a lengthy process.
Across platforms: The technology functions seamlessly in any browser, providing a mobile solution for AR filter creation.
Bulleted Version
🌎 Market timing: The AR market is in a state of hyper-growth, fueled by an excitement to bridge the physical and virtual worlds.
Plus, 40% of Gen Z prefer to express themselves with AR filters.
📈 Growth and expansion: With its comprehensive product strategy, spanning app, web, and API implementations, Shader is well-positioned for scalability across various platforms and user demographics.
🎯 Acquisition target: Shader’s innovative approach to AR filter creation makes it a prime acquisition target for tech giants looking to enhance user experiences and platform stickiness.
🤝 Integration: Although Shader users are currently able to upload their filters to apps like Discord, integrating this technology with platforms such as Twitch, TikTok, and others may present challenges.
🔁 Retention: Without broad-based utility beyond entertainment, Shader’s appeal may be limited to niche segments, potentially impacting long-term user engagement and retention.
🤔 Product vs. feature: Shader risks being perceived as a feature rather than a standalone product, a challenge that could limit its market positioning.
RunwayML: Backed by Lux Capital, Amplify Partners, Compound, and others.
SparkAR: Subsidiary of Meta.
Lens Studio: Subsidiary of Snap.
Can of Soup: Backed by Y Combinator.
WhyShader
Shader is enhancing AR filter generation by making the process accessible, instantaneous, and functional across platforms, positioning itself to revolutionize the world of lens and effects creation.
*Nothing in this content constitutes investment or legal advice. Conduct independent diligence and consult professional advisers before making investment decisions.*
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