Amidst Facebook's decline, British social media startup Lounge raises £3.2 million to target Generation Z.

By taking advantage of Facebook's downturn, British social media startup Lounge has successfully raised £3.2 million ($4 million) in funding to serve the Gen Z population. Unlike other social media sites, Lounge doesn't have a newsfeed, so users can plan events and interact with groups on its platform. The startup, which bills itself as a cross between a WhatsApp group and a subreddit, seeks to discourage "mindless scrolling" and promote active community involvement.

Since its inception in April 2022, Lounge has gained significant popularity in Australia, New Zealand, and South Africa and is being utilized extensively on large university campuses in the UK and Ireland. Since the platform's inception, a quarter of a million users have already made use of it. Between the ages of 11 and 26, Gen Z has been moving away from Facebook; in 2022, only 32% of 13 to 17-year-olds used it, compared to 71% in 2015.

Leading the seed fundraising round was the international technology investor Square Peg, who has supported companies such as Stripe and Airwallex. Additionally supporting the oversubscribed equity round was Carthona Capital, which had previously invested in Lounge's pre-seed round.

Jack Symonds, a co-founder of Lounge, expressed appreciation for Square Peg and Carthona Capital's investments.