BeReal was the trending social app that gained significant attention starting in 2022 due to its unique “in-the-moment photo-sharing feature.” This feature allowed users to capture unfiltered and unedited photos, promoting authenticity and spontaneity. This approach quickly became a trend, distinguishing BeReal from other social media platforms where filtered and edited content was prevalent.

The company successfully secured $90 million in funding and achieved a valuation of $600 million during its rapid growth phase, indicating the high potential recognized by professionals and investors in the app. In 2023, the company continued its efforts to attract more users by introducing new features and collaborating with brands and influencers. Despite the company’s efforts to enhance its appeal with new features, the app’s growth has slowed down. A report by Business Insider highlighted that the initial enthusiasm has died down due to challenges in retaining and attracting users amid financial difficulties. Although BeReal currently has “40 million monthly active users and 25 million daily active users, up from 20 million in 2022,” this growth is not viewed favorably by investors, contributing to the company’s funding challenges.

During a February all-hands meeting, employees were alerted that the app had around ten months of funding remaining before encountering financial difficulties. Currently, the leaders of BeReal are evaluating their options as sustained growth becomes challenging. The company is contemplating raising a Series C round of funding before exhausting the remainder of its $90 million funding. However, this could pose challenges, as investors may be reluctant to invest in a company experiencing slow growth. Another option under consideration is being acquired by a big tech company. 

Despite facing challenges, BeReal must devise a strategy before its funding runs out. As a social app, it faces tough competition from platforms like Instagram, Facebook, and others. The fate of the app lies in the hands of BeReal and its leadership. Will it be a short-lived trend or hold substantial long-term value? Other apps like Clubhouse, Peach, Vine, and Google+ were once seen as having great potential but ultimately fell short due to various reasons. To avoid a similar fate, BeReal must innovate to retain and attract users effectively while also focusing on monetization strategies for long-term stability.