Backed by author Amy Tan, mobile fiction startup Radish raises $3M
Radish is officially launching its mobile apps for reading bite-sized chunks of serialized fiction and its announcing that it has raised $3 million in seed funding.
This isnt the first startup to experiment with new ways to deliver fictionvia e-readers and mobile devices. In fact, I wrote about one of them in my very first piece for TechCrunch five years ago.
But then, Radish co-founder and CEO Seung-yoon Lee isnt claiming he invented the concept he told me he was actually inspired by the popularity of serialized fiction on mobile devices in Asia, and he predicted that novels will see the same shift to cliffhangers and serialization that were already seeing in TV. (Meanwhile, in the publishing world, e-book sales are declining, while print seems to be rebounding.)
The model hasnt taken off yet in the United States. Among fiction-related startups, Wattpad has had the biggest success, but its more focused on monetizing through TV and movie deals, as well as sponsored content, rather than having readers pay authors directly.
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On Radish, on the other hand, readers buy coins, which can then be spent on the stories theyre following. (The exact price varies depending on how many coins you buy, but it can be less than 50 centscosts about 12 cents per coin.) For each story, youget the initial chapters for free, then need topay three coins for early access to subsequent installments, with the revenue split 50-50 between Radish and the author.
Radish has been in beta testing for the past year, and Lee said the leading author on the platformis already making $13,000 per month. (He declined to identify the author, but said theyre writinga historical romance serial set in the Victorian age.)
There are a lotof self-published authors out there who have quite a following and who would loveto experiment, he said. These self-published writers are inherentlyentrepreneurial theyre used to making money on their own. Im telling them that you guys can monetize first while youre writing.
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Lee noted that Radish isnt claiming any intellectual property rights from thoseauthors. And while the company recruited its initial lineupfrom the world of self-publishing (there are more than 700 writerson the platform already), its also looking to work with authorswhove gone through more traditional channels, and to experiment with other forms of storytelling.
Investors from the tech, entertainment and publishing worlds are backing Lees vision. The seed round comes from (deep breath) Greylock, Lowercase Capital, Softbank Next Media Innovation Fund, UTA, Bertelsmann Digital Media Investments (Bertelsmanns corporate parent owns publisher Penguin Random House), Sherpa Capital, ITV Chairman PeterBazalgette, former Microsoft executive Charlie Songhurst,Nicolas Berggruen, LendingHome co-founder and CEO Matt Humphrey, BDA China founder Duncan Clark,Jeremy Yap and others.
And yes, that list alsoincludes Amy Tan, author of The Joy Luck Club and The Bonesetters Daughter.
The whole concept of Radish makes terrific sense to me, Tan said in the funding release. Readersread for free and pay a small amount only if they want to read the next installmentwithout delay. The writers get paid immediately and they still retain copyright and canlater publish in another format. The most compelling stories are a win-win for readersand writers alike.
Read more: https://techcrunch.com/2017/01/31/radish-seed-funding/