New Platform, Newness, Secures $3.5 Million Seed Funding

A new live-streaming platform, Newness, designed specifically for beauty creators and their audiences, has successfully raised $3.5 million in a seed funding round. The investment was spearheaded by Sequoia, with participation from a diverse group of investors.

Addressing a Niche in the Live-Streaming Market

While numerous platforms currently offer live-streaming capabilities – including Twitch, YouTube, TikTok, Instagram, and Facebook – Newness distinguishes itself by concentrating on the unique requirements of the beauty streaming community. The platform provides specialized tools and features tailored to this specific market.

These features encompass options for both public and private broadcasts, systems to incentivize constructive engagement, robust moderation tools, and opportunities for fans to obtain complimentary beauty products through active community involvement.

Investment Details and Key Backers

Jess Lee of Sequoia Capital led the investment in this round. Additional investors include Cowboy Ventures (Aileen Lee), Upside Partnership (Kent Goldman), Dream Machine (Alexia Bonatsos), Index Ventures (Nina Achadjian), and Twitch co-founder Kevin Lin.

Furthermore, the round saw contributions from former Twitch executives Jonathan Shipman and John Sutton, Eventbrite founders Kevin and Julia Hartz, Incredible Health co-founder and CEO Iman Abuzeid, and a number of other angel investors with ties to Twitch.

The Genesis of Newness

The concept for Newness originated with CEO Jenny Qian, a former employee of Twitch. During her tenure at the game-streaming service, she held various positions, culminating in the role of Senior Director of Business Strategy for Twitch’s video platform.

She is joined by CTO Youri Park, who also has prior experience at Twitch, as well as Blizzard and Facebook Gaming.

Inspired by a Personal Journey

Qian’s inspiration for Newness stemmed from her own exploration of skincare after turning 30. She quickly identified a gap in the market for a dedicated live-streaming platform catering to the beauty community.

“I was accustomed to the interactive format from Twitch,” Qian explained. “The ability to connect with streamers, ask questions, and learn from them was incredibly engaging.”

This realization prompted her to question why a similar platform didn’t exist for beauty enthusiasts, a community she deemed equally, if not more, passionate and a highly popular content category.

Addressing Concerns About Online Harassment

Despite her enthusiasm, Qian initially hesitated to livestream on Twitch herself. She expressed concern about potential negative comments regarding her appearance, a different dynamic than criticism related to gameplay.

“Being criticized for my gaming skills is one thing, but facing judgment about my looks feels different and more personal,” she stated.

Cultivating a Positive Community

With Newness, the aim is to establish a platform that contrasts with the sometimes-harsh environment of Twitch. The platform strives to be a welcoming and supportive space for both beauty creators and their fans, prioritizing moderation and rewarding positive contributions over disruptive behavior.

Newness will provide creators with in-house moderators to ensure a comfortable streaming experience and maintain a positive flow of content. As streamers grow, they will be assisted in identifying and empowering moderators from within their own fan base.

Rewarding Engagement with Crystals

Fans are incentivized to participate constructively through a virtual currency called crystals. These are earned by watching streams, engaging in chat, and contributing high-quality comments. Each chat message is accompanied by a heart icon, with more hearts earned for thoughtful contributions.

These crystals can then be redeemed for full-size beauty products sourced through partnerships with brands. Moderators, due to their increased platform activity, will also accumulate more crystals and have greater access to products.

Beta Testing Shows Promising Results

Initial beta tests have demonstrated the effectiveness of this reward system, with approximately 66% of Newness viewers actively participating in live stream chats.

Offering Both Public and Private Streaming Options

A key feature of Newness is the flexibility to host both public and private streams. Private streams are intended for professional events and exclusive content, allowing creators to sell general admission and VIP tickets with added perks, such as beauty product goodie bags.

The platform also supports in-app tipping, known as “gifting,” during regular streams.

Future Revenue Model

While currently in beta, Newness plans to eventually take a percentage of revenue generated from these transactions. However, this feature has not yet been implemented.

Controlled Growth and Community Focus

Currently, the Newness community remains relatively small, and access to the platform is invite-only. This selective approach allows the startup to carefully curate the initial creator base and establish a positive community culture.

“We are focused on handpicking creators who will help define the tone and values of our community,” Qian explained. “Maintaining a wholesome and safe environment is paramount as we scale.”

Diverse Content Offerings

Creators on Newness produce a variety of content, ranging from expert advice and product reviews to more casual “get ready with me” videos and vlogs.

Competition in the Streaming Landscape

Newness will face competition from established platforms like YouTube and Instagram, as well as emerging players focused on beauty content, such as Supergreat.

Future Development and Expansion

Currently accessible via web browser, Newness intends to launch its iOS app in 2021, complementing its existing streaming app for creators. Creators also have the option to stream directly from their DSLRs.

The seed funding will also be used to expand the Newness team, which currently consists of 14 members located in San Francisco, New York, and Los Angeles, including hires from Glossier.