In their earliest forms, legacy social media sites focused on connecting you with your friends. As the interest in these networks began to grow and the density of users increased, the sense of community began to dwindle as there was an exponential increase in content while attention span remained constant. This dynamic led to users following less of their friends’ activities but focusing more on topics of relevance, guided by categorization features like hashtags and groups, which led to an overwhelming experience. SageSpot is envisioning a future, with its platform, that directly connects best-in-class creators and interest-driven communities. At its core, it’s a platform for creators to share their knowledge and expertise with loyal communities without the noise found in other mediums. Creators are able to monetize their following by setting up subscriptions as well as through one-time revenue options like setting up a time to speak with individual members. SageSpot plans to launch by the middle of August with 15-20 creators onboarded onto the platform.
AlleyWatch caught up with CEO and Cofounder CJ Dunne to learn more about the need for a new social network, the decentralization of content and social networking, the company’s strategic plans, latest round of funding, which brings the total funding raised to $2.6M, and much, much more.
Who were your investors and how much did you raise?
We raised $2.1M in Series seed funding, led by Khosla Ventures. Other investors in the company include Scott Malpass, Richard Rosenblatt, and Max and Xander Ritz.
Tell us about the product or service that SageSpot offers.
SageSpot is a platform that enables users to pursue their passions and interests through individual communities built by their favorite Creators. Creators come from many different fields, what is most important is that they have real-world expertise, a following on a legacy social media platform, and the desire to share their knowledge and expertise with their community. SageSpot is a new social media that connects its users based on these shared passions and interests while allowing them to consume great content from the best and brightest minds in the world.
What inspired the start of SageSpot?
Two years ago, we started building a betting exchange that matched rival fanbases together ahead of a game. It was our first look at servicing communities, but only for athletics. Ultimately, we abandoned the idea due to the highly regulated nature of the industry.
However, the idea of providing a place where niche communities could interact stuck with us. Over time, we came up with the idea of creating a place not only for niche communities to interact with one another but also where community members can learn from and connect with the best and brightest minds in their industry. We knew quickly we had something special in creating interest-based communities around world-class Creators.
How is SageSpot different?
SageSpot is unique because of the optionality it presents for Creators and users. For Creators, SageSpot allows them to reach their most passionate followers in a chaos-free environment. SageSpot is the engine they can use to turbo-charge their business and be adequately compensated for the first time in the digital world. It is a platform to take back control of their business.
On the user side, SageSpot is unique because it enables users to customize consumption all the way up and down the content spectrum. We are in the early days of a content revolution where, using sports for example, it is no longer that you like sports, so you go to ESPN – that was thirty years ago. It is that I like golf, and more specifically, I like the way that my favorite golfer plays golf and I want to hear it directly from him or her.
What market does SageSpot target and how big is it?
Our market is any field that has both Creators who have cultivated a high level of knowledge and expertise and want to share it with those who are incredibly passionate about them and their craft. There are a bunch of different experts that have put exact numbers on the market but we are more focused on getting the right Creators for SageSpot and building a beautiful and functional product for everyone to use.
What’s your business model?
There are two lines of business for Creators: Subscription and one-time revenue. Subscription revenue occurs when users pay an amount of money, set individually by Creators, to join their “spot”. This can be a monthly or annual charge. One-time revenue comes when users directly ask questions, set up a time to video call with Creators, or request various other individualized services that are related to the Creator’s field (a professional woodworker charges $x to review a user’s work plan, for example).
How has COVID-19 impacted the business??
We have seen COVID-19 drive remote work and learning over the past 12-14 months. This encouraged those who were not as tech-savvy to learn and embrace online experiences. In doing so, a new market segment in the 40-60 age bracket has emerged as more tech-friendly.
What was the funding process like?
Funding processes are always interesting, each for their own specific reasons. This one was interesting because we were adamant about keeping the team focused on building the product. We talked with a lot of great people and added some of them to our cap table as a result!
What are the biggest challenges that you faced while raising capital?
I think it is always hard to hear no, it never gets old and when you are fundraising, you hear it a lot. But the fact of the matter is not everyone is on board with your mission or sees it precisely the same way you do, and I have come to think of that as a blessing. It bonds the team in a way, and when you do find investors that believe in your vision, it is a special thing. People are sometimes afraid to talk about rejection, but it is a fundamental part of the entrepreneur’s life, and each entrepreneur has to come up with a way she or he can get past it.
What factors about your business led your investors to write the check?
I think investors who chose to be on our side believe that the future of the internet, and specifically social media, is centered around niche communities that have certain barriers to entry.
What are the milestones you plan to achieve in the next six months?
We are aiming for an exclusive launch by mid-August with 15-20 excellent Creators on the platform.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
We are still in the prologue of our story, so take this advice with a grain of salt. But, if you are still reading, cultivate your vision and never let anyone detract from it. Take rejection in stride and always charge after what you believe in. I love this quote from Hemingway: “Always be willing to work without applause.” It is very New York too, in a way.
We are still in the prologue of our story, so take this advice with a grain of salt. But, if you are still reading, cultivate your vision and never let anyone detract from it. Take rejection in stride and always charge after what you believe in. I love this quote from Hemingway: “Always be willing to work without applause.” It is very New York too, in a way.
Where do you see the company going now over the near term?
We are focused on building a product that was made for Creators and enables users to have interactions they never thought were possible in the digital world. We have a great team today, but we are actively hiring in NYC. We don’t really believe in job titles; we are more focused on getting as many talented and passionate individuals on our side as possible. So, if you are reading this and want to be part of changing the future of the internet send us an email jobs@sagespot.com.
What’s your favorite outdoor dining restaurant in NYC
PJ Clarkes (the one uptown) is one of our favorite burgers in the city. Great atmosphere and always a good meal.
