Out of the ashes of once-popular livestreaming app Meerkat, a new video streaming app has risen.
Houseparty, which offers a video-based group chat app, is the second attempt by the Meerkat team to tap into social videosharing. And it appears on the right track. On the heels of a successful debut, the new company has secured $50 million in fresh funding at a $150 million valuation. The much-fought-over financing was led by Sequoia and saw participation from previous investors Aleph, Comcast Ventures and Greylock Partners, per The Wall Street Journal.
Founded last year, Meerkat experienced a quick rise to popularity—but seemingly an even quicker decline into obscurity. The app was an instant hit in the tech community, finding some buzz at South by Southwest, the same conference that helped the rise of Twitter and Foursquare. With that newfound fame came investor interest. Meerkat raised a $14 million round last March at a $54 million valuation.
In the following months, however, both Facebook and Twitter quickly launched competing streaming services, marking the beginning of the end. After months of worsening metrics, Meerkat was removed from the iOS App Store in September. Just a few months later, a Houseparty has broken out instead.