- Austin, Texas-based children’s subscription book service Literati announced it raised $12 million in a new round of funding led by Shasta Ventures
Literati — an Austin, Texas-based children’s subscription book service — announced it raised $12 million in a new round of funding led by Nikhil Basu Trivedi at Shasta Ventures. Launched by Jessica Ewing and Kelly Carroll, Literati is a children’s book club built for inspiring readers for life through its monthly subscription service of curated books for children ages 0-12. And this round of funding will be used to strategically grow the business and also hire new talent in Austin.
“Our mission is to build a lasting company that stands for lifelong learning and sparks revolutionary excitement in books and literature,” said Ewing. “We hit our stride in this round, adding key investors who really get our vision. We want to build consumer products that make life more meaningful, not merely more efficient.”
This round of funding also included Dick Costolo of 01 Advisors, Katie Jacobs Stanton and Jessica Verrilli of #Angels, Dan Graham of Springdale Ventures, Kevin Hartz (founder of Eventbrite), Thomas D. Lehrman (founder of GLG), Allan Hubbard (former director, National Economic Council) and follow-on investments from Founders Fund Pathfinder and Silverton Partners. Plus Literati received funding from Brent Montgomery at Wheelhouse, backed by comedian and late-night host Jimmy Kimmel.
“I’ve been on the lookout for the next great consumer subscription business, having invested at Shasta in category-defining brands such as Dollar Shave Club, Imperfect Foods, and The Farmer’s Dog,” added Trivedi. “The book market is massive, and Literati’s growth, customer love, and mission really blew me away as I spent time with Jess, Kelly, and the Literati team. I’m thrilled to lead Literati’s Series A and to join the company’s board of directors.”
As screen usage is now topping 7 hours a day for kids ages 8 to 18, Literati has found a home with parents who value books and are looking for delightful analog experiences.
“The curation around themes is incredible and we discover books we’d never discover otherwise,” commented Cyan Banister, partner at Founders Fund Pathfinder — who led Literati’s seed round of funding.
And research shows that creating a steady stream of new age-appropriate books nearly triples interest in reading within months.
“Literati is a shining example of the innovative new companies that are being built outside of Silicon Valley. Jessica’s vision for the company is expansive and inspiring, and it is revolutionizing one of the last undisrupted media channels – the massive books market,” explained Dick Costolo. “We are excited to see the next phase of growth for Literati.”
Literati launched in 2016 based on the idea that reading and books are critical to a child’s development. However, parents are inundated with choices and cannot predict which books their child will love.
At a cost of $9.95 per month, Literati curates a box of books based on age along with custom artwork and personalized book labels. And readers have seven days to try out the books and buy those they want to keep. Plus
Literati also allows for customers to put any books they no longer use into the prepaid return box. In terms of giving back, Literati donated more than 18,000 books to charities this year.
