Slushy is 1st adult content platform to get venture funding with $10.2M raise (2024)

Slushy has raised $10.2 million for its creator monetization platform which was purpose-built to help creators grow their community and consumers to form authentic connections. That sounds familiar. But the thing that’s different about Slushy is that it’s an adult entertainment company.

Miami Slushy said it’s the first venture-backed adult content platform in history, garnering investment thanks to its differentiated approach to adult content that combines an innovative tech stack with robust
moderation, security, and compliance.

The round comprises new and return investments from pre-eminent VCs specialized in high-growth technology startups.

Mantis VC (Grammy Award-winning duo The Chainsmokers), Electric Feel Ventures, Jon Oringer (Former CEO of Shutterstock), and Sean Rad (Co-Founder and former CEO of Tinder, Inc.) returned to participate.

The new investment comes from high-profile angels, including Edison Chen (Founder and CEO of Clapper) and Brooklyn Johnny (music entrepreneur and six-time Grammy winner, founder of District 18 Entertainment, and manager to Cardi B).

“Creators need discoverability and promotion. Consumers need intimacy and connection,” said CEO David Gross, in a statement. “We merge best-in-class commerce and social tools for creators to connect with and monetize their audiences directly while helping users discover their new favorite content. These funds
will advance the growth and development of SLUSHY on the heels of year-over-year platform success.”

Founded in 2020 by David Gross and Fred Spivock, the company said this raise validates Slushy’s unique promise in today’s digital landscape to empower and safeguard creators while crafting a personalized user experience through sophisticated AI discovery tools for direct creator-consumer interaction. The fresh capital will support developing new features, onboarding additional creators, and expanding into new target markets, including South America.

“From predatory business models for creators to a lack of guardrails and identify verification for users,
adult content platforms have proven too risky to investors for the last decade,” said Austin Rosen,
general partner at Electric Feel Ventures, in a statement. “Slushy’s status as the first venture-backed content platform is a testament to the company’s sustainable payout structure for creators and emphasis on compliance and regulation. We are thrilled to recommit to the platform’s continued growth.”

Slushy said it had a massive Q1 2024, reaching a million users and growing its creator base by 40% to 10,000.

The rapid, continued growth can be attributed to the platform’s ability to foster quality content from
established and undiscovered talent and support creators with tools and insights to increase audience
and revenue, Slushy said.

While most adult content platforms cater to creators with a significant social media following, Slushy’s integrated suite of commerce and discovery tools allows creators without an existing online presence to gain followers and create a sustainable income.

Slushy has also integrated with AI-focused third-party apps STXT and Party Hat AI to support creators in
constantly producing fresh content and connecting with their community. Creators can now develop
hyperrealistic avatars and communicate through AI-based chatbots, driving personalized and engaging
interactions while they focus on producing high-quality content.

Through this partnership, macro creators, including Sierra Skye and adult film star Sophie Dee, have reached and engaged over one million users with targeted interest/machine learning-based outreach.

For consumers, Slushy recently introduced Perfect Match, a new feature inspired by the swiping interface popularized by dating apps. Swipe right on desired creators to inform the content and creators that consumers will receive in their personalized Slushy content feed. To date, Slushy has seen more than 250,000 videos posted in-app, spanning adult and non-adult content.

“Slushy merges innovative technologies with exclusive content,” said Alex Pall, general partner at
Mantis VC, in a statement. “The platform allows creators to get discovered without having a significant social following and iterates upon the proven success and familiar interface of today’s biggest platforms with short-form, swipe-through content powered by machine learning. There is no exclusive fan engagement content platform as technically sophisticated as Slushy in today’s market.”

Slushy said it has a legal framework — with advanced compliance tools, including simplified consent, ID verification, and content moderation.

Asked what makes it unique, the company said it is designed to elevate creators at all levels — allowing both macro influencers and micro industry entrants to find a following and earn money on the platform. On other apps, many small-scale creators struggle to grow their businesses against the dominance of top performers.

SLUSHY’s robust tech stack, AI-powered algorithm, and short-form swipe-through content mirror the format of today’s best and biggest social platforms, like TikTok and Instagram. In short, these offerings allow for greater discoverability, cross-platform promotion, 1-1 fan connection, and an increased monetization/growth trajectory.

And what makes this round unique is that SLUSHY is the first adult content company to garner VC funding. Adult has traditionally been an area where institutional and angel investors aren’t comfortable investing due to the inherent risks. This round has participation from some of the leading VCs in technology and emerging industries, and we attribute this to SLUSHY’s upfront work to create a compliant, ethical, trusted platform for consumers and creators to experience adult content.