Cuckoo Internet is a new U.K. start-up that aims to interfere with the U.K. broadband market. It has now raised ₤ 470,000 in seed financing, that includes financing from work.fund, a new Silicon Valley fund operator fund led by Bart Macdonald (Sapling founder). Other financiers include Lorin van Nuland (early investor in Betterment), Edward Campbell-Harris (Bulb early financier) Patrick Barouki (Bulb early investor), James Bowe and GrowthInvest, to name a few. The secret to its strategy is that it has no servers of its own, meaning it can scale faster than traditional providers.
The anecdotal evidence is that the pandemic-led lockdown in numerous nations has exposed that your home broadband is almost certainly not quick enough for modern-day usage. This has actually ended up being particularly apparent in the U.K., where TELEVISION interviews with crucial figures are often interrupted by terrible buffering. Certainly, regulator Ofcom says 40% of individuals in the U.K. are paying more for horrible broadband simply due to the fact that they are loyal clients. Problems about broadband and mobile are practically 40% higher than every other sector in the U.K. economy, according to research study from the Institute of Customer Care. At the very same time, more youthful workers, who usually lease so move frequently, do not have broadband because of the long contracts and high exit costs.
Standard ISPs are not set up for this new world. BT, Sky, Virgin Media and TalkTalk between them own more than 90% of the broadband market. The most significant independent oppositions to them today are Shell Energy, the Post Workplace and Vodafone. No companies are incentivized to break the pattern of long contracts, high exit charges and concealed commitment taxes. However when you change between many providers the only thing that normally changes is your router and the software application you communicate with. So there is now a chance to interrupt this space.
Cuckoo has one deal and a one-month rolling contract; basic prices, no commitment tax, no concealed charges. It says it also uses the fastest speed available on the network.
When co-founder Alexander Fitzgerald had to take on BT to get his daddy’s web to work properly and for the right cost, the start-up was inspired. “The broadband market is broken. Consumers deal with intricate offers, high costs and bad service. There has to be a better method. Unlike the current providers, we will be transparent, with clear prices, simple agreements and excellent customer care,” he said.
Fitzgerald formerly helped Bulb grow to 1.5 million consumers as a consultant. While dealing with Bulb he saw there was something missing in broadband. The Bulb creators provided him recommendations on his first-ever pitch deck. He then quit his task in October 2019 and founded Cuckoo.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.