Mesh-Networked Social Media Startup Company Capsule Finds Pre-Seed Investors Overnight

By James White Thursday, January 21, 2021

“I posted that tweet and the expectation that I had was that basically 60 people max would retweet it and then maybe I’ll set up a Kickstarter.”

The words of Nadim Kobeissi, director of cryptography consulting business Symbolic Software, and the mind behind the now-retired cryptocurrency messenger web app Cryptocat, express his unpreparedness with regard to the recent events leading to the $100,000 in pre-seed funding for his idea of a decentralized social media platform. The startup, dubbed “Capsule,” garnered the intense interest (and capital) of investors literally overnight.

Abstract of a social media web against a city skyline

Among those eager to fund the development of Kobeissi’s business ideas and future startup company are venture capital firm Wamda Capital as well as entrepreneur and angel investor Balaji Srinivasan, who was formerly CTO of the cryptocurrency company Coinbase.

Dispersing Consolidated Power and Strengthening Free Speech

Though the pre-seed funds seemed to coalesce immediately, the business is far from officially launching its service. The startup company is not much to look at just yet, as it only consists of a simple webpage briefly outlining the concept of the platform and an opportunity to enter an email to stay updated in the development process.

The key principles of the startup company’s approach to social media are the driving force behind the engagement of eager investors. Kobeissi’s startup company aims to create a mesh-networked social media platform. With a meshed architecture, data packets travel directly from connected device to device, or nodes, without passing through a regulatory company or business. Due to this type of structure, it is difficult to identify individual users and nearly impossible to shut down the platform without accessing every device.

“For every takedown it is entirely between that Capsule user and their hosting provider,” Kobeissi said to TechCrunch.

Relevance in Extraordinary Times

Recent events, including the decision by big social media companies like Facebook and Twitter to ban the former US president’s accounts, have turned the spotlight once again on the immense power of censorship wielded by massive corporations and businesses. Mesh-networking startup companies now have the opportunity to offer an enticing business platform that is more resistant to this type of censorship.

Businesses like Capsule involved in industries related to encryption, data privacy, and mesh-networking are likely to ride along with the rapid growth of these markets.

In 2018, the global wireless mesh network market was valued at $6.11 billion, and it is expected to grow at a compound annual growth rate (CAGR) of 9.1% from 2019 to 2025. Furthermore, the global encryption software market was valued at $2.98 billion in 2018 and is projected to expand at a CAGR of 16.8% from 2019 to 2025.

“It seems to really have blown up,” Kobeissi said. “I thought when I tweeted that I was maybe the only person who cared. I guess I live in France so I’m not really in tune with what’s going on in the US a lot — but a lot of people care.”

About the Author

Headshot for author James White

James White is a Michigan State University graduate with a B.S. in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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