The social app IRL has shut down after it was discovered that 95% of its users were bots. The app had a valuation of $1.2 billion and had raised over $197 million from venture capitalists like SoftBank. Venture capitalists often use metrics like daily active users (DAU) to make investment decisions, but these metrics can be faked using bots.
IRL claimed to have over 20 million users, but the board of directors found that the majority of these were bots. The app aimed to be an event-organizing solution for Gen Z. The company had previously laid off 25% of its team and then increased its workforce threefold. It was reported that IRL had enough cash to last until 2024, but now there is no information about its financial situation.
Former CEO Abraham Shafi’s claims of 20 million users were doubted by employees, leading to his resignation in April 2023. The company is now shutting down due to the malpractice of inflating user metrics. This is not an uncommon issue, as other companies like Block have also faced allegations of faking user counts.
IRL had raised over $170 million from SoftBank through a Series C funding round in 2021. SoftBank is known for investing in various startups, including those in the crypto space.
Continue reading on Beincrypto.com
By
By
By
By
