Disco (formerly Co-op Commerce)

About Disco (formerly Co-op Commerce)

Disco operates a collaborative retail media network designed for the direct-to-consumer (DTC) market, aiming to reduce dependency on major tech platforms for customer acquisition. The company, formerly known as Co-op Commerce, was founded in early 2020 by CEO Conner Sherline. Sherline's background includes senior marketing roles at Meta and Affirm, where he witnessed the rising customer acquisition costs for DTC brands on platforms like Facebook. This experience led to the idea of a cooperative network where non-competing brands could cross-promote products.

The core of Disco's offering is a post-purchase ad network. When a customer completes a purchase on a participating brand's website, they are shown a widget on the 'thank you' page featuring recommended products from complementary brands within the network. This provides brands access to a high-intent audience of active shoppers. The platform uses AI-driven technology to learn which brand pairings are most effective and to identify customers with a high propensity to buy from specific retailers. This collective intelligence helps brands discover new customers and gain insights into their shopping behaviors.

Disco's business model is a hybrid of SaaS and usage-based fees. Clients pay a flat monthly platform fee of $50 to access baseline features. The primary revenue stream is a cost-per-acquisition (CPA) model, where brands set their target acquisition cost and only pay when the network drives a sale. Additional revenue is generated from DiscoAudiences, a service that allows brands to leverage the network's collective data for social media ad targeting for a flat monthly rate, and from usage-based fees for pro tools. The network includes over 1,000 brands, such as Rhone, Lovevery, Parade, and Caraway, and has facilitated over $1 billion in transactions. In March 2022, the company raised $20 million in a Series A funding round led by Felicis Ventures, with participation from Shopify and Bessemer Venture Partners.