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TL;DR
- Avi Schiffmann, founder of AI companion startup Friend, spent $1.8 million out of the company’s $2.5 million funding to acquire the premium domain Friend.com
- Friend is developing a $99 AI-powered pendant that serves as a digital companion, responding to conversations by sending text messages to the wearer
- Schiffmann believes the high cost of the domain is justified as a long-term cost-saving measure, reducing the need for marketing expenses
- A viral promotional video showcasing users interacting with the Friend pendant has garnered significant attention, with the product set to launch in 2025
Avi Schiffmann, the founder of AI companion startup Friend, recently revealed that the company spent a staggering $1.8 million out of its total $2.5 million in funding to acquire the premium domain name, Friend.com. The purchase, which took place on February 6, 2024, was confirmed by Schiffmann through a screenshot of the transaction on Escrow.com, an online escrow service for buying and selling assets.
Friend, which is currently developing a $99 AI-powered pendant that serves as a digital companion, has garnered significant attention following the release of a viral promotional video showcasing users interacting with the device during various activities. The coin-sized pendant, worn as a necklace, listens to conversations and responds by sending text messages back to the wearer. “It’s very supportive, very validating, it’ll encourage your ideas,” Schiffmann told The Verge, describing the product. “It’s also super intelligent, it’s a great brainstorming buddy. You can talk to it about relationships, things like that.”
Despite the high cost of the domain, Schiffmann believes the investment is justified, stating, “Premium domains are expensive, but it’s worth it.” He views the purchase as a long-term cost-saving measure, reducing the need for marketing expenses. “People just don’t get consumer, I view this as saving money,” he added. “Much less money needs to be spent on marketing, it’s a one-time thing.”
However, further investigation reveals that Friend likely acquired the domain on a payment plan rather than paying the full amount upfront. A GeekWire article suggests that Schiffmann borrowed the money for the purchase, and the Escrow.com screenshot indicates that the domain was bought on a payment plan, with the terms not disclosed. Domain industry experts suggest that such deals are often structured with even payments over a period of time, such as five years, or with lower initial payments and a balloon payment later on.
The launch of Friend’s AI pendant and the company’s significant investment in its online presence have sparked discussions about the importance of premium domain names in the digital age. As the startup prepares to bring its product to market in 2025, it remains to be seen whether the costly domain acquisition will prove to be a wise business decision.
