Unicorn social app IRL to shut down after admitting 95% of its users were fake
Amanda Silberling, writing for TechCrunch:
Ironically, the social app IRLâs users do not exist in real life.
An internal investigation by IRLâs board of directors found that 95% of the appâs reported 20 million users were âautomated or from bots,â The Information first reported. So, after raising more than $200 million in venture capital, IRL is shutting down.
IRL was poised to become an event organizing alternative for Gen Z, who are using Facebook less and less. But after raising its SoftBank-led $170 million Series C round at a $1.17 billion valuation, the companyâs internal troubles became more obvious.
Last year, IRL laid off 25% of its team, or around 25 employees. During the year prior, IRL had more than tripled its head count, so these cuts came as a surprise. In a note to employees, obtained by TechCrunch, former CEO and founder Abraham Shafi encouraged employees to âadaptâ and âbe disciplined,â citing that WhatsApp grew to 450 million users with a team of just 55.
âBecoming one of these iconic, impactful companies is akin to winning a gold medal in the Olympics. In fact, probably more challenging,â Shafi wrote in the memo, which was full of similarly outlandish analogies. âLike the Olympics, we know most people donât want to be Olympians. In the same way, not everyone will want to walk the path we are walking. But for those that want to push their limits and find out what they are capable of, this culture is for you.â