Discord now has a $3.5B valuation and $100M for a sales pitch lighter on the gaming

Comment

Image Credits: Getty Images under a MARTIN BUREAU/AFP via Getty Images license.

Discord wants to be more than just a place for gamers and is now billing itself as the Slack for users’ social lives.

The new pitch, and a new funding round of $100 million at a reported valuation of $3.5 billion, will help the company as it looks to erase its legacy as a home for gamers (and a virtual townhall for white nationalists).

Discord shuts down alt-right server and accounts for ToS violations

Now, the company has more money at its disposal to monitor its user base and promote the image that the service isn’t just for gamers. “It turns out that, for a lot of you, it wasn’t just about video games anymore,” write co-founders Jason Citron and Stanislav Vishnevskiy in a blog post.

The two men frame their company as “a place designed to hang out and talk in the comfort of your own communities and friends.” Discord, they say, is “a place to have genuine conversations and spend quality time with people, whether catching up, learning something or sharing ideas.”

It hadn’t always been that way. Three years ago, the company tried to boot a number of its most racist users, but their ability to use the platform to disseminate hate speech has stubbornly persisted. Up until mid-2019 white nationalists were comfortable enough using the service to warrant a shoutout from Daily Stormer founder, Andrew Anglin, who urged his fellow travelers to stop using the service.

“Discord is always on and always present among these groups on the far-right,” Joan Donovan, the lead researcher on media manipulation at the Data & Society Research Institute, told Slate. “It’s the place where they do most of the organizing of doxing and harassment campaigns.”

Discord says these users are a small (and dwindling) fraction of a user base that now also includes Black Lives Matter organizers, social media influencers, and, of course, gamers.

There are now more than 100 million active users on the service that spend 4 billion minutes in conversation on 6.7 million active servers, according to a statement from the company.

If anything, Discord’s success is both a function and feature of the rapid rise of social gaming and social media. The company’s servers enabled real-time communication across gaming platforms that turned them into the dominant social experience for a generation of players. They also enabled influencers on a variety of social media platforms to have a more direct relationship with their fans.

As Taylor Lorenz noted in her reporting on Discord’s newfound fan base among social media entrepreneurs and celebrities:

Last March, Ninja, one of the most popular video game live-streamers in the world, taught Drake how to use Discord while playing Fortnite. YouTube A-listers such as Philip DeFranco, Grace Helbig and the Try Guys all have their own servers, and subreddits such as those dedicated to discussing “The Bachelor” and “The Real Housewives” have their own Discord groups too. More than 200 million people use the service.

“We designed Discord for talking. There’s no endless scrolling, no news feed and no tracking likes. No algorithms decide what you ‘should’ see. We designed Discord to enable the experience and feelings we wanted to recreate: being together with your community and friends. You’ve made your servers into personal spaces filled with people you invited and set the topics of discussion,” the founders write.

The kinder, gentler Discord belies both the company’s name and its roots. But it is a sign of its efforts to shift the perceptions of investors and woo potential new users to the service.

In addition to its new cash, the company is highlighting a new user experience and added server video so that users can communicate more readily. There are templates available to help users create servers, and the company has increased its voice and video capacity by 200%.

As part of this new focus on product, Discord has launched what it calls a “Safety Center” that clearly defines the company’s rules and regulations and what actions users can take to monitor and manage their use of service for hate speech and abuse.

We will continue to take decisive action against white supremacists, racists and others who seek to use Discord for evil,” the founders write. 

Danny Rimer, the co-founder of Index Ventures, which led the investor group that invested in Discord’s latest $100 million cash infusion, is an advocate for the company’s expanded vision for itself.

“I believe Discord is the future of platforms because it demonstrates how a responsibly curated site can provide a safe space for people with shared interests,” Rimer wrote in a statement. “Rather than throwing raw content at you, like Facebook, it provides a shared experience for you and your friends. We’ll come to appreciate that Discord does for social conversation what Slack has done for professional conversation.”

Discord shuts down alt-right server and accounts for ToS violations

The parallels to Slack are interesting and begin with the fact that both companies began their lives as gaming studios before moving to become communications services.

“In France this year, Discord was adopted as the primary app for distance learning after the government’s official service failed. As a result, Discord reached the top 10 app downloads in France in March and is still in the top 50 in the U.S. and U.K. today,” Rimer noted in his explanation of Index’s latest investment. “As Discord plans its next phase of growth, it will become even more inclusive and welcoming for new users and communities and it will continue to be guided by the users that have informed its development from the start.”

More TechCrunch

Anterior, a company that uses AI to expedite health insurance approval for medical procedures, has raised a $20 million Series A round at a $95 million post-money valuation led by…

Anterior grabs $20M from NEA to expedite health insurance approvals with AI

Welcome back to TechCrunch’s Week in Review — TechCrunch’s newsletter recapping the week’s biggest news. Want it in your inbox every Saturday? Sign up here. There’s more bad news for…

How India’s most valuable startup ended up being worth nothing

If death and taxes are inevitable, why are companies so prepared for taxes, but not for death? “I lost both of my parents in college, and it didn’t initially spark…

Bereave wants employers to suck a little less at navigating death

Google and Microsoft have made their developer conferences a showcase of their generative AI chops, and now all eyes are on next week’s Worldwide Developers Conference, which is expected to…

Apple needs to focus on making AI useful, not flashy

AI systems and large language models need to be trained on massive amounts of data to be accurate but they shouldn’t train on data that they don’t have the rights…

Deal Dive: Human Native AI is building the marketplace for AI training licensing deals

Before Wazer came along, “water jet cutting” and “affordable” didn’t belong in the same sentence. That changed in 2016, when the company launched the world’s first desktop water jet cutter,…

Wazer Pro is making desktop water jetting more affordable

Former Autonomy chief executive Mike Lynch issued a statement Thursday following his acquittal of criminal charges, ending a 13-year legal battle with Hewlett-Packard that became one of Silicon Valley’s biggest…

Autonomy’s Mike Lynch acquitted after US fraud trial brought by HP

Featured Article

What Snowflake isn’t saying about its customer data breaches

As another Snowflake customer confirms a data breach, the cloud data company says its position “remains unchanged.”

1 day ago
What Snowflake isn’t saying about its customer data breaches

Investor demand has been so strong for Rippling’s shares that it is letting former employees particpate in its tender offer. With one exception.

Rippling bans former employees who work at competitors like Deel and Workday from its tender offer stock sale

It turns out the space industry has a lot of ideas on how to improve NASA’s $11 billion, 15-year plan to collect and return samples from Mars. Seven of these…

NASA puts $10M down on Mars sample return proposals from Blue Origin, SpaceX and others

Featured Article

In 2024, many Y Combinator startups only want tiny seed rounds — but there’s a catch

When Bowery Capital general partner Loren Straub started talking to a startup from the latest Y Combinator accelerator batch a few months ago, she thought it was strange that the company didn’t have a lead investor for the round it was raising. Even stranger, the founders didn’t seem to be…

1 day ago
In 2024, many Y Combinator startups only want tiny seed rounds — but there’s a catch

The keynote will be focused on Apple’s software offerings and the developers that power them, including the latest versions of iOS, iPadOS, macOS, tvOS, visionOS and watchOS.

Watch Apple kick off WWDC 2024 right here

Welcome to Startups Weekly — Haje’s weekly recap of everything you can’t miss from the world of startups. Anna will be covering for him this week. Sign up here to…

Startups Weekly: Ups, downs, and silver linings

HSBC and BlackRock estimate that the Indian edtech giant Byju’s, once valued at $22 billion, is now worth nothing.

BlackRock has slashed the value of stake in Byju’s, once worth $22 billion, to zero

Apple is set to board the runaway locomotive that is generative AI at next week’s World Wide Developer Conference. Reports thus far have pointed to a partnership with OpenAI that…

Apple’s generative AI offering might not work with the standard iPhone 15

LinkedIn has confirmed it will no longer allow advertisers to target users based on data gleaned from their participation in LinkedIn Groups. The move comes more than three months after…

LinkedIn to limit targeted ads in EU after complaint over sensitive data use

Founders: Need plans this weekend? What better way to spend your time than applying to this year’s Startup Battlefield 200 at TechCrunch Disrupt. With Monday’s deadline looming, this is a…

Startup Battlefield 200 applications due Monday

The company is in the process of building a gigawatt-scale factory in Kentucky to produce its nickel-hydrogen batteries.

Novel battery manufacturer EnerVenue is raising $515M, per filing

Meta is quietly rolling out a new “Communities” feature on Messenger, the company confirmed to TechCrunch. The feature is designed to help organizations, schools and other private groups communicate in…

Meta quietly rolls out Communities on Messenger

Featured Article

Siri and Google Assistant look to generative AI for a new lease on life

Voice assistants in general are having an existential moment, and generative AI is poised to be the logical successor.

2 days ago
Siri and Google Assistant look to generative AI for a new lease on life

Education software provider PowerSchool is being taken private by investment firm Bain Capital in a $5.6 billion deal.

Bain to take K-12 education software provider PowerSchool private in $5.6B deal

Shopify has acquired Threads.com, the Sequoia-backed Slack alternative, Threads said on its website. The companies didn’t disclose the terms of the deal but said that the Threads.com team will join…

Shopify acquires Threads (no, not that one)

Featured Article

Bangladeshi police agents accused of selling citizens’ personal information on Telegram

Two senior police officials in Bangladesh are accused of collecting and selling citizens’ personal information to criminals on Telegram.

2 days ago
Bangladeshi police agents accused of selling citizens’ personal information on Telegram

Carta, a once-high-flying Silicon Valley startup that loudly backed away from one of its businesses earlier this year, is working on a secondary sale that would value the company at…

Carta’s valuation to be cut by $6.5 billion in upcoming secondary sale

Boeing’s Starliner spacecraft has successfully delivered two astronauts to the International Space Station, a key milestone in the aerospace giant’s quest to certify the capsule for regular crewed missions.  Starliner…

Boeing’s Starliner overcomes leaks and engine trouble to dock with ‘the big city in the sky’

Rivian needs to sell its new revamped vehicles at a profit in order to sustain itself long enough to get to the cheaper mass market R2 SUV on the road.

Rivian’s path to survival is now remarkably clear

Featured Article

What to expect from WWDC 2024: iOS 18, macOS 15 and so much AI

Apple is hoping to make WWDC 2024 memorable as it finally spells out its generative AI plans.

2 days ago
What to expect from WWDC 2024: iOS 18, macOS 15 and so much AI

As WWDC 2024 nears, all sorts of rumors and leaks have emerged about what iOS 18 and its AI-powered apps and features have in store.

What to expect from Apple’s AI-powered iOS 18 at WWDC 2024

Apple’s annual list of what it considers the best and most innovative software available on its platform is turning its attention to the little guy.

Apple’s Design Awards highlight indies and startups

Meta launched its Meta Verified program today along with other features, such as the ability to call large businesses and custom messages.

Meta rolls out Meta Verified for WhatsApp Business users in Brazil, India, Indonesia and Colombia