Cuckoo Internet is a brand new U.K. startup that goals to disrupt the U.K. broadband sector. It has now raised £470,000 in seed funding, which includes funding from work—fund, a brand new Silicon Valley fund operator fund led by Bart Macdonald.
Other investors include Lorin van Nuland early investor in Betterment, Edward Campbell-Harris, Patrick Barouki (Bulb early investor), James Bowe, and GrowthInvest, among others.
The key to its technique is that it has no servers of its own, which means it can scale faster than traditional suppliers.
The anecdotal evidence is that the pandemic-led lockdown in lots of nations has revealed that home broadband is sort of certainly not fast enough for modern use.
This has become particularly apparent in the U.K., where TV interviews with vital figures are sometimes interrupted by terrible buffering. Indeed, regulator Ofcom says 40% of people in the U.K. are paying extra for terrible broadband merely because they’re loyal prospects.
Complaints about broadband and mobile are nearly 40% higher than each other industry in the U.K. economy, in line with research from the Institute of Customer Service.
At the same time, youthful workers, who often lease so move recurrently, should not have broadband because of the long contracts and excessive exit fees.
Traditional ISPs aren’t set up for this new world. BT, Sky, Virgin Media and TalkTalk between them own over 90% of the broadband market.
The biggest independent challengers to them in the present day are Shell Energy, the Post Office, and Vodafone. No corporations are incentivized to break the pattern of long contracts, excessive exit fees, and hidden loyalty taxes.