The makers of the virtual influencer, Lil Miquela, snag real money from Silicon Valley

Comment

Lil Miquela
Image Credits: Brud

Brud, the actual company behind one of Instagram’s most popular virtual influencers (it’s a thing), has raised millions of dollars from Silicon Valley investors because this is 2018 and everything is awful.

Last week, the Los Angeles-based startup led by Trevor McFedries, outed itself as the collective consciousness behind the virtual celebrity Lil Miquela and her less well known contemporaries Blawko22 and BermudaisBae in a choreographed melodrama worthy of Los Angeles’ best reality television.

https://twitter.com/mekosoff/status/987034183003459584

The subject of numerous glowing profiles in online and print fashion and lifestyle magazines (including, most recently, in High Snobiety), Lil Miquela’s stardom (and her fellow avatars) fascinated because the characters’ creators coyly toed the line around “her” self-awareness and their own. In the process, they created a sensation that’s become well-known worldwide.

It’s less well-known that the company is backed by some of the biggest names in venture capital investment — firms like Sequoia Capital. Our sources put the company’s funding somewhere around $6 million in its recent funding round.

There are other notable investors from Silicon Valley and New York rumored to be in the round — like New York’s BoxGroup and the Bay Area’s SV Angel. Sequoia declined to comment for this article and Box Group’s David Tisch did not respond to a request for comment.

All of the virtual drama with Miquela started late last week when news outlets (including TechCrunch) reported that Miquela’s Instagram account (or that of her handlers) was hacked by operators of a social media account belonging to another virtual personality known as “Bermudaisbae” (a more right wing social media persona with fewer followers).

McFedries, brud‘s founder and chief executive, confirmed that the Miquela account had been hacked in a text exchange with me, writing, “some redditor idiots hacked the page we think.”

That was a lie.

The account “hack” was architected by brud as part of an ongoing virtual reality drama playing out on Instagram and other social media platforms between avatars it had developed, all designed to attract media attention, according to people with knowledge of brud and its plans. It worked. 

McFedries has not responded to further requests for comment after confirming that the Miquela account was “good”.

One Los Angeles investor familiar with the company said brud was “using conflict to introduce new characters… same as the Kardashians always have.”

The investor added that two years into the development of the Miquela persona, brud‘s founders knew that the fad could lose some of its luster as the is-she-or-Isn’t-she-real tension dissipates under the weight of continuously thwarted expectations — like a post-modern twist on the will-or-won’t-they dramatic tension defining most sitcoms since Cheers.

“People aren’t going to buy that she’s human so they make it seem as if she’s had an existential crisis and now she is the first in a breed of conscious AR characters that they will build a world around,” this investor wrote. “[Manufacturing] social influence.”

Blawko22 and Lil Miquela imposed over a gas station exterior simulating a pit stop on the road to Coachella

For his part, the 33-yar-old McFedries had been manufacturing social influence in Los Angeles through his talents as a dj, producer and director before entering the startup world.

First under the name of DJ Skeet Skeet and then as DJ Skeeter, and, finally, Yung Skeeter, McFedries has worked or performed with a number of the world’s best selling recording artists including Chris Brown, Ke$ha, and Katy Perry (and — interestingly — more obscure acts like Bonde do Role).  

Working as an an “artist advocate” for Spotify, a DJ for a radio show on iHeartRadio, and as a spokesman for VitaminWater sustained McFedries along with managing the career of BANKS and executive producing her first album and a single on Azealia Banks’ 2014 record “Broke with Expensive Taste” — at least according to a Wikipedia page on Yung Skeeter. 

Around this time McFedries also began investing in companies, according to AngelList.

Roughly two years after the Banks record release, Lil Miquela made her first appearance on Instagram. And the rest is history as written in Internet archives and memes. Ephemeral, but infinite.

The project that brud seems to be pursuing — turning celebrity into a virtual commodity; commenting on the unreality of the “real” entertainment industry by literally creating an unreal celebrity — is fascinating.

There’s certainly a valid criticism to be made about the ways in which celebrity operates, the ways in which our “social” media has corroded society, and the unbridled power of these platforms to transform messengers and their messages into movements.

Perhaps brud wants to make these critiques through its very existence — or at least use its low-brow as high-brow (or is it vice versa?) intellectual appeal as a veneer over the more crass (but potentially honest) mission of selling more shit more effectively through the use of spokespeople whose views only change when their creators want them to (it worked for Hollywood’s star system). That at least gets sponsors and advertisers out of the potentially messy situations that can come from working with spokespeople whose actions can’t be controlled by software — or an ingenious marketing team.

In the High Snobiety profile-as-honors-senior-English-thesis on Lil Miquela published yesterday, the avatar’s own spokesperson was quoted as saying:

“The internet is endlessly powerful, and that power has been wielded in many ways. It feels like we’re not going to put the genie back in the bottle, so we’ve got to learn how to leverage these tools in positive ways. I’ve used my platform to raise real money for important organizations throughout LA and I’ve seen lives changed as a result. I think the only chance we’ve got is to collectively teach our loved ones how to think critically and how to spot misinformation. I know that we can manifest the change we want to see, and the internet can be a part of that.”

It’s a lofty goal backed by a number of inarguably good works. However, lying to reporters may not be the best way to continue trying to achieve it.

More TechCrunch

Jasper Health, a cancer care platform startup, laid off a substantial part of its workforce, TechCrunch has learned.

General Catalyst-backed Jasper Health lays off staff

Live Nation says its Ticketmaster subsidiary was hacked. A hacker claims to be selling 560 million customer records.

Live Nation confirms Ticketmaster was hacked, says personal information stolen in data breach

Featured Article

Inside EV startup Fisker’s collapse: how the company crumbled under its founders’ whims

An autonomous pod. A solid-state battery-powered sports car. An electric pickup truck. A convertible grand tourer EV with up to 600 miles of range. A “fully connected mobility device” for young urban innovators to be built by Foxconn and priced under $30,000. The next Popemobile. Over the past eight years, famed vehicle designer Henrik Fisker…

1 hour ago
Inside EV startup Fisker’s collapse: how the company crumbled under its founders’ whims

Late Friday afternoon, a time window companies usually reserve for unflattering disclosures, AI startup Hugging Face said that its security team earlier this week detected “unauthorized access” to Spaces, Hugging…

Hugging Face says it detected ‘unauthorized access’ to its AI model hosting platform

Featured Article

Hacked, leaked, exposed: Why you should never use stalkerware apps

Using stalkerware is creepy, unethical, potentially illegal, and puts your data and that of your loved ones in danger.

2 hours ago
Hacked, leaked, exposed: Why you should never use stalkerware apps

The design brief was simple: each grind and dry cycle had to be completed before breakfast. Here’s how Mill made it happen.

Mill’s redesigned food waste bin really is faster and quieter than before

Google is embarrassed about its AI Overviews, too. After a deluge of dunks and memes over the past week, which cracked on the poor quality and outright misinformation that arose…

Google admits its AI Overviews need work, but we’re all helping it beta test

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. In…

Startups Weekly: Musk raises $6B for AI and the fintech dominoes are falling

The product, which ZeroMark calls a “fire control system,” has two components: a small computer that has sensors, like lidar and electro-optical, and a motorized buttstock.

a16z-backed ZeroMark wants to give soldiers guns that don’t miss against drones

The RAW Dating App aims to shake up the dating scheme by shedding the fake, TikTok-ified, heavily filtered photos and replacing them with a more genuine, unvarnished experience. The app…

Pitch Deck Teardown: RAW Dating App’s $3M angel deck

Yes, we’re calling it “ThreadsDeck” now. At least that’s the tag many are using to describe the new user interface for Instagram’s X competitor, Threads, which resembles the column-based format…

‘ThreadsDeck’ arrived just in time for the Trump verdict

Japanese crypto exchange DMM Bitcoin confirmed on Friday that it had been the victim of a hack resulting in the theft of 4,502.9 bitcoin, or about $305 million.  According to…

Hackers steal $305M from DMM Bitcoin crypto exchange

This is not a drill! Today marks the final day to secure your early-bird tickets for TechCrunch Disrupt 2024 at a significantly reduced rate. At midnight tonight, May 31, ticket…

Disrupt 2024 early-bird prices end at midnight

Instagram is testing a way for creators to experiment with reels without committing to having them displayed on their profiles, giving the social network a possible edge over TikTok and…

Instagram tests ‘trial reels’ that don’t display to a creator’s followers

U.S. federal regulators have requested more information from Zoox, Amazon’s self-driving unit, as part of an investigation into rear-end crash risks posed by unexpected braking. The National Highway Traffic Safety…

Feds tell Zoox to send more info about autonomous vehicles suddenly braking

You thought the hottest rap battle of the summer was between Kendrick Lamar and Drake. You were wrong. It’s between Canva and an enterprise CIO. At its Canva Create event…

Canva’s rap battle is part of a long legacy of Silicon Valley cringe

Voice cloning startup ElevenLabs introduced a new tool for users to generate sound effects through prompts today after announcing the project back in February.

ElevenLabs debuts AI-powered tool to generate sound effects

We caught up with Antler founder and CEO Magnus Grimeland about the startup scene in Asia, the current tech startup trends in the region and investment approaches during the rise…

VC firm Antler’s CEO says Asia presents ‘biggest opportunity’ in the world for growth

Temu is to face Europe’s strictest rules after being designated as a “very large online platform” under the Digital Services Act (DSA).

Chinese e-commerce marketplace Temu faces stricter EU rules as a ‘very large online platform’

Meta has been banned from launching features on Facebook and Instagram that would have collected data on voters in Spain using the social networks ahead of next month’s European Elections.…

Spain bans Meta from launching election features on Facebook, Instagram over privacy fears

Stripe, the world’s most valuable fintech startup, said on Friday that it will temporarily move to an invite-only model for new account sign-ups in India, calling the move “a tough…

Stripe curbs its India ambitions over regulatory situation

The 2024 election is likely to be the first in which faked audio and video of candidates is a serious factor. As campaigns warm up, voters should be aware: voice…

Voice cloning of political figures is still easy as pie

When Alex Ewing was a kid growing up in Purcell, Oklahoma, he knew how close he was to home based on which billboards he could see out the car window.…

OneScreen.ai brings startup ads to billboards and NYC’s subway

SpaceX’s massive Starship rocket could take to the skies for the fourth time on June 5, with the primary objective of evaluating the second stage’s reusable heat shield as the…

SpaceX sent Starship to orbit — the next launch will try to bring it back

Eric Lefkofsky knows the public listing rodeo well and is about to enter it for a fourth time. The serial entrepreneur, whose net worth is estimated at nearly $4 billion,…

Billionaire Groupon founder Eric Lefkofsky is back with another IPO: AI health tech Tempus

TechCrunch Disrupt showcases cutting-edge technology and innovation, and this year’s edition will not disappoint. Among thousands of insightful breakout session submissions for this year’s Audience Choice program, five breakout sessions…

You’ve spoken! Meet the Disrupt 2024 breakout session audience choice winners

Check Point is the latest security vendor to fix a vulnerability in its technology, which it sells to companies to protect their networks.

Zero-day flaw in Check Point VPNs is ‘extremely easy’ to exploit

Though Spotify never shared official numbers, it’s likely that Car Thing underperformed or was just not worth continued investment in today’s tighter economic market.

Spotify offers Car Thing refunds as it faces lawsuit over bricking the streaming device

The studies, by researchers at MIT, Ben-Gurion University, Cambridge and Northeastern, were independently conducted but complement each other well.

Misinformation works, and a handful of social ‘supersharers’ sent 80% of it in 2020

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Okay, okay…

Tesla shareholder sweepstakes and EV layoffs hit Lucid and Fisker