Retro maker Lone Palm Labs raises $21M for an app that feels like early Instagram

What's the deal? Lone Palm LabsDealroom has a profile for this one. Try Dealroom →, the startup behind close-friends social app RetroDealroom has a profile for this one. Try Dealroom →, has raised $21 million in a Series A round. Thrive Capital, Scribble VenturesDealroom has a profile for this one. Try Dealroom →, Imaginary VenturesDealroom has a profile for this one. Try Dealroom →, Uncommon ProjectsDealroom has a profile for this one. Try Dealroom →, and Figma chief executive officer Dylan FieldDealroom has a profile for this one. Try Dealroom → backed the deal, according to financial filings viewed by Business Insider.

What's the endgame? Retro, founded in 2023 by ex-Instagram employees, is pitched as an alternative for sharing photos and videos with close friends and family. Chief executive officer Nathan Sharp said the goal was a "super simple product that's really just for you and your friends."

Who's building it? Sharp, who worked on Instagram and FacebookDealroom has a profile for this one. Try Dealroom →, co-founded Lone Palm Labs with longtime Instagram engineer Ryan Olson in 2022. The seven-person team, split between New York and San Francisco, launched a second app, SplatDealroom has a profile for this one. Try Dealroom →, in 2025 that turns photos into coloring pages using AI.

By the numbers: Retro has an estimated 1.7 million monthly active users and 7.8 million downloads, per Sensor TowerDealroom has a profile for this one. Try Dealroom →. It runs on a freemium model with no ads; a premium tier introduced in 2025 costs about $36 a year. The app has also gained traction in Japan, Taiwan, Germany, and Spain.

Why it stands out? Venture money is flooding into AI, data centers, and SaaS, while consumer social startups have struggled. PitchBook data shows a steady decline in social deals since a 2021 peak, though total deal value in 2026 is rebounding after a weak 2025. Against that backdrop, the $21 million round lands above roughly two-thirds of comparable deals by size.

The signal: As larger platforms drift from social feeds toward entertainment, apps like Retro are betting people will pay for genuine connection. The raise suggests investors still see room for consumer social products built on small, real-life networks.

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Image credit: H o l l y.