Lex, the queer social app inspired by vintage lesbian personals, has successfully raised $5.6 million in seed funding. This significant investment will allow Lex to continue its growth and expansion in the LGBTQIA+ community. Despite the venture industry’s low funding rates for women- and queer-led startups, the 11-person team behind Lex has managed to secure this substantial amount, indicating the app’s potential and relevance in the market.
Investors involved
The seed round was led by Peter Boyce from Stellation Capital. Alongside Stellation Capital, other firms and angel investors, including Slauson & Co, Hope Lab Ventures, Best Nights VC, Great Oaks, Graph Ventures, Manuela Rios, Melanie and Lila Steinbach, also contributed to the funding. Additionally, Lex’s pre-seed investors, such as Female Founders Fund, Alpaca Ventures, Red Swan, and Gaingels, reinvested in the company, showing their continued confidence in the app’s mission and success.
Jennifer Lewis appointed as CEO
New CEO announcement
In a significant leadership change, Lex has appointed Jennifer Lewis as its new CEO. Previously serving as the COO, Lewis has been instrumental in the app’s growth and success. Her promotion to CEO reflects her dedication and expertise in guiding Lex towards its mission of serving the LGBTQIA+ community.
Roles and responsibilities change
With the appointment of Jennifer Lewis as CEO, the founding CEO, Kel Rakowski, will take on a new role as the chief creative officer. Rakowski’s new position will allow her to focus on supporting queer individuals and bringing innovative ideas to the app. Additionally, Michelle Parsons, former product boss at Hinge, will join Lex as the chief product officer, bringing her experience and expertise to further enhance the app’s functionality and user experience.
Background of Lex
Inspiration from vintage lesbian personals
Lex draws inspiration from vintage lesbian personals and aims to create a modern and inclusive space for the queer community. The app’s founders recognized the importance of a platform that caters specifically to the needs and experiences of queer individuals, providing them with a safe and supportive environment to connect and engage.
App’s growth and popularity
Despite being three years old, Lex has experienced steady growth and popularity among its target audience. Currently ranking around #350 on Apple’s U.S. charts among social networking apps, Lex has established a strong presence in major LGBTQIA+ hubs like New York, Chicago, and Los Angeles. The app’s multifunctionality, catering to various needs of the queer community, has contributed to its increasing user base and overall appeal.
Scope and features of Lex
Target audience and user base
Lex primarily caters to the LGBTQIA+ community, providing a dedicated space for queer individuals to connect, engage, and support each other. The app’s focus on inclusivity and understanding the unique needs of its users has resonated with many, leading to its growth in popularity. Lex has become a go-to platform for queer individuals looking to find roommates, sell concert tickets, express themselves, and engage in conversations related to queer experiences.
Top cities where the app is used
Lex has gained significant traction in major cities such as New York, Chicago, and Los Angeles. These cities have vibrant LGBTQIA+ communities, and Lex’s presence has allowed community members to connect and support each other in these urban centers.
Multifunctionality of the app
One of Lex’s standout features is its multifunctionality. Users can utilize the app for various purposes, ranging from finding housing to sharing poetry and experiences. The text-only format creates a unique environment where users can connect through meaningful conversations and shared interests, fostering a strong sense of community within the app.
Controversy surrounding redesign
Broadened focus on community
In February, Lex underwent a redesign that sparked controversy among its user base. The app’s new design aimed to broaden its focus on community rather than solely focusing on dating and hookups. While some users appreciated the shift, others expressed concerns about the app moving away from its initial purpose. This redesign ignited a conversation about the app’s direction and the importance of balancing the needs of different users within the community.
Users’ opinions and criticism
The controversy surrounding the redesign led to diverse opinions and criticism from users. Some argued that the redesign detracted from Lex’s unique selling point, while others appreciated the emphasis on building a strong queer community. The app’s creators acknowledged the feedback and committed to addressing the gaps and concerns raised by users, ensuring that Lex remains a platform that caters to all aspects of queer life.
Investment and funding sources
Lead investor in seed round
Peter Boyce from Stellation Capital played a leading role as the investor in Lex’s seed round. Boyce’s support and belief in the app’s mission were instrumental in securing the necessary funding for Lex’s continued growth. As a respected figure in the tech investment space, Boyce’s involvement further validates the potential and significance of Lex in the LGBTQIA+ market.
Additional firms and angel investors
Alongside Stellation Capital, Lex attracted investments from other firms and angel investors. Slauson & Co, Hope Lab Ventures, Best Nights VC, Great Oaks, Graph Ventures, Manuela Rios, Melanie and Lila Steinbach all recognized the value and potential of Lex, contributing to the overall seed funding. Their involvement showcases the breadth of support for Lex within the investment community.
Pre-seed investors reinvest
Lex’s pre-seed investors, including Female Founders Fund, Alpaca Ventures, Red Swan, and Gaingels, also made reinvestments in the company. This reinvestment demonstrates the continued confidence and belief in Lex’s mission and potential for growth. The continued support from these pre-seed investors further solidifies Lex’s position in the market and its ability to attract and retain key backers.
Expansion plans and challenges
Utilizing funds for growth
With the significant seed funding raised, Lex plans to utilize the funds for expansion and growth. This includes enhancing the app’s features, expanding its user base, and actively engaging with the LGBTQIA+ community. The investment allows Lex to build on its current success and reach a wider audience, ensuring that more queer individuals can benefit from the app’s unique platform.
Importance of not alienating users
While expansion is crucial, Lex recognizes the importance of maintaining its core user base and not alienating existing users during this growth phase. The app’s strong focus on serving marginalized LGBTQIA+ communities necessitates an approach that is sensitive to user needs and preferences. Lex aims to strike a balance between growth and maintaining its loyal user base, ensuring that the app remains a valuable and inclusive space for the queer community.
Unique approach to monetization
Nuanced and tailored to LGBTQIA+ community
Lex takes a distinct approach to monetization that is nuanced and tailored specifically to the LGBTQIA+ community. Recognizing the unique needs and preferences of the community, Lex aims to build a business model that reflects and respects the values and experiences of queer individuals. This approach sets Lex apart from other VC-backed businesses and allows the app to maintain its authenticity and relevance within the LGBTQIA+ market.
Different from typical VC-backed businesses
Unlike typical VC-backed businesses that prioritize profit generation, Lex’s monetization strategy is driven by a deep understanding of its community. The app’s creators aim to ensure that the monetization efforts align with the needs and preferences of its users, avoiding the risk of alienation or exploitation. This approach reinforces Lex’s commitment to serving the LGBTQIA+ community with integrity and authenticity.
Kel Rakowski’s new role
Step down as CEO
Kel Rakowski, the founding CEO of Lex, has stepped down from her position to take on a new role as the chief creative officer. This change allows Rakowski to transition from the operational aspects of running the company and focus on her passion for supporting queer individuals. By stepping into this new role, Rakowski can channel her energy into making a positive impact within the LGBTQIA+ community.
Focus on supporting queer people
Rakowski’s new role emphasizes her dedication to supporting and empowering queer individuals. By directing her efforts towards creating opportunities and advocating for queer rights and representation, Rakowski can contribute directly to the betterment of the community. Her transition within Lex reflects her commitment to making things happen for queer people and advancing the mission and values of the app.
In conclusion, Lex’s recent achievements in seed funding, the appointment of Jennifer Lewis as CEO, and the app’s dedication to serving the LGBTQIA+ community highlight the strength and potential of this unique social app. Despite some controversy surrounding its redesign, Lex remains steadfast in its mission to provide a safe and inclusive platform for queer individuals. With its nuanced approach to monetization and plans for expansion, Lex’s future looks promising as it continues to grow and support the diverse needs of the LGBTQIA+ community.
