Children’s Subscription Book Service Lands Funding

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Literati, a subscription book service aimed at young children, raised $12 million in new funding from Shasta Ventures.

Shasta is teamed with other investors in this round including Dick Costolo (01 Advisors), Katie Jacobs Stanton and Jessica Verilli (#Angels), Dan Graham (Springdale Ventures), Kevin Hartz (Eventbrite founder), Thomas Lehrman (founder of GLG), Allan Hubbard (former director, National Economic Council), Founders Fund Pathfinder and Silverton Partners. Literati also received funding from Brent Montgomery (Wheelhouse, backed by comedian and late-night host Jimmy Kimmel.)

Literati is a children’s book club founded in 2016 by Jessica Ewing and Kelly Carroll, designed to inspire readers for life through its monthly subscription service of curated books for children aged 0-12.

“Our mission is to build a lasting company that stands for lifelong learning and sparks revolutionary excitement in books and literature,” said Founder and CEO Jessica Ewing, in a statement. “We hit our stride in this round, adding key investors who really get our vision. We want to build consumer products that make life more meaningful, not merely more efficient.”

“I’ve been on the lookout for the next great consumer subscription business, having invested at Shasta in category-defining brands such as Dollar Shave Club, Imperfect Foods, and The Farmer’s Dog,” said Shasta Ventures’ Nikhil Basu Trivedi, who joins the company’s board of directors.  “The book market is massive, and Literati’s growth, customer love, and mission really blew me away as I spent time with Jess, Kelly, and the Literati team.”

For $9.95 per month, Literati customers get a curated box of books based on age along with custom artwork and personalized book labels. Readers have seven days to test-read the books and buy those they want. Subscribers can put any books they no longer use into the prepaid return box. Literati has donated more than 18,000 books to charities so far in 2019.

The new funding will be used to strategically grow the business and also hire new talent in Austin, Texas.