Astrology app Co-Star raises $15 million in new funding
Co-Star, the maker of an astrology app, has raised $15 million in Series A funding led by Spark Capital, with Maveron, Female Founders Fund, and all existing investors also participating.
Why it matters: The company says it has more than 20 million app downloads without any real marketing efforts, and has been downloaded by a quarter of all young women ages 18-25 in the U.S.
- Co-Star is part of the latest burst of popularity for astrology, with a slew of apps gaining popularity over the past few years.
What they're saying: "It's much more like sitting on a couch with your best friends and talking about yourself without judgement," Co-Star co-founder and CEO Banu Guler told Axios, adding that she sees astrology as a language and framework for understand and discussing one's self.
- The app provides users with personalized horoscopes and other content, and lets them connect with other friends on the app to share and bond over astrology. (However, users have been less social and used the app more for self-reflection during the past year's pandemic, according to Guler.)
- The company plans to roll out subscriptions (in addition to the individual content purchases it currently sells) later this year, though Guler declined to share more details about what Co-Star is working on. It also plans to use its new funding to expand its team, and add new product features.
The bottom line: "The question isn't whether astrology is real, the question is whether the effects are real... Is it a legitimate tool for self-care, and the answer is yes," said Guler.