Investors have once again shown their interest in consumer social media platforms after a social media start-up has raised $21 million in a Series A funding round. The app, Retro, was created by former Instagram workers and is dedicated to helping people share photos and videos with their close friends and family.

The platform is centred around smaller, more intimate networks, instead of the typical social media feeds. The company is also enhancing its product line with more consumer-focused applications, such as an AI-based photo app.

It’s claimed that Retro now has 1.7 million monthly active users and 7.8 million downloads. It is a freemium business model in which there is no traditional advertising, but a paid subscription will be available starting in 2025.

It is coming at a time when consumer social startups have been having a tougher time than startup activity in other areas – especially in AI, software and data infrastructure – throughout the venture capital market. The investment reflects that there is still a need for social platforms focused on smaller communities and personal connections.

The new investment could also be a sign of a move toward alternative social media platforms, particularly those that offer users more privacy and control over social interactions.