Shader 🤳

Text-to-AR filter generation

February 20, 2024

Setting the Scene

  • 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. 

In a Sentence

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: Similar to how Canva simplifies graphic design to allow anyone to create and share art, Shader similarly democratizes AR to revolutionize filter generation. 👩‍🎨

The Basics

  • Industry: AR Technology

  • Headquarters: San Francisco, CA

  • Year founded: 2022

  • Employee count: 5

  • Investors: Betaworks, Greycroft, Differential Ventures, Mozilla Ventures, On Deck

  • Amount raised: $580K

  • Currently raising: $2M pre-seed round

  • 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

IN PARTNERSHIP WITH

  • VCs haven’t stopped investing in early-stage startups — they’ve simply shifted what they are looking for.

  • When the market gets tough, investors become laser-focused on these key metrics. If you’re a founder looking to fundraise, you should be too.

  • In this article, Mercury shines a light on the metrics that matter more than ever to investors.

  • Get the inside scoop and get closer to realizing your startup's ambitions.

Due Diligence

WHAT WE LIKE

  • 🌎 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.

POTENTIAL RISKS

  • 🤝 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.

Founder Profile

To request an introduction to the founder, respond to this email.

Comps

Why Shader: By enhancing AR filter generation to make the process accessible, instantaneous, and functional across platforms, Shader is positioning itself to revolutionize the world of lens and effects creation.

Events Board

🗓 The week of SXSW in Austin

  • Bulletpitch x Antler Tech Carnival: We already have hundreds of applications to attend our event on March 11th. This is going to be HUGE! Sign up here.

  • Secret Breakfast Club: On March 12th, we are co-hosting an intimate morning for GPs, partners, and select founders. If you fit this description, please sign up here.

    • Curious about who else is hosting events during SXSW week? Check out this amazing list.

🍽 Upcoming Bulletpitch Industry Dinners

  • March Stealth Founders Dinner, NYC: Reply to this email if you are a stealth founder and interested in joining.

  • April Consumer Dinner, NYC: This one should be fun.

🗳 Cast Your Vote

What do you think of Shader?

Cast your vote below and tell us why:

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Last Week Today

  • The results are in: Symphony, an all-in-one platform designed for users to track marketing efforts across various channels and grow their businesses, was overwhelmingly favored in last week’s poll.

  • Subscriber feedback: “While the crowded space may pose difficulties, an all-encompassing marketing platform that runs ads and tracks analytics is brilliant and bound for success.”

✍️ Written by Brett