Zyper

Zyper operated a machine learning-led community marketing platform that let brands identify the top 1% of their organic social media following and convert those passive followers into active advocates. Rather than paying influencers with large audiences, Zyper targeted everyday, socially connected consumers — often Gen Z and millennial users with small but highly engaged followings (an average of roughly 400 followers, per a 2017 Forbes figure cited in a founder profile) — and invited them into brand-specific communities, typically consisting of around 500 to 1,000 advocates per brand.

Once onboarded, community members were sent product samples and invited to create user-generated content and take part in advocacy campaigns, receiving products and exclusive experiences rather than cash as rewards, in what the founder described as a hybrid loyalty program. The resulting content was intended to scale peer-to-peer advertising, drive social conversion and sales, and also serve as a source of product and purchase insight comparable to a focus group. Membership of the Zyper community was invite-only, with a consumer-facing Zyper app planned to broaden access.

The company was founded in 2017 by Amber Atherton, initially based in London, and participated in Y Combinator's Winter 2018 batch. Following its 2019 Series A it opened a San Francisco headquarters and also had staff in New York and London. Zyper was acquired by Discord in January 2021.

Founding story

Founder Amber Atherton previously ran My Flash Trash, an online jewelry business she started as a teenager, selling jewelry bought in Hong Kong markets from her boarding school in England and building an audience through a fashion blog. She received her first angel investment at 18. The business grew after the UK reality show Made in Chelsea, in which she appeared and which she is credited with co-creating, first aired in 2011; by 2015 My Flash Trash was valued at £3.5 million, and in 2016 it was acquired for an undisclosed sum by Hong Kong-based NFTT Group. Observing that most sales came from organic referrals by genuine fans rather than influencers, Atherton raised $1 million in seed funding in London to launch Zyper, and in 2017 was accepted into Y Combinator as a solo female founder without a technical background.

Business model

Zyper sold software to consumer brands that identified and managed communities of their most engaged social media followers, running advocacy campaigns in which fans were compensated with products and experiences rather than fees. Following its Series A the company said it was building self-service capability to on-board brands more efficiently.

Brands paid for access to Zyper's platform and managed advocate communities; advocates themselves were rewarded with products and experiences rather than payments.

Traction

Zyper reported brand communities of roughly 500-1,000 advocates each and a customer list spanning large international consumer brands. Team size was reported at 29 in a founder profile and 35 in its Y Combinator listing.

Latest developments

Zyper was acquired by Discord in January 2021. Founder Amber Atherton subsequently became a consumer investor, joining early-stage venture fund Patron to lead seed rounds in consumer and gaming startups, and wrote a book titled 'The Rise of Virtual Communities'.