WENDY, CHICAGO-BASED STARTUP, LAUNCHES AI STORY-BUILDING TOOLBOX FOR KIDS

Core Insights - Wendy has launched a children's story-building toolbox app aimed at enhancing creativity and promoting reading among children, countering the trend of increasing digital activity and declining literacy rates [1][3] Company Overview - Wendy is a Chicago-based start-up founded in June 2023, focused on helping children rediscover the joy of reading through an innovative app that combines story-building with technology [7] - The app has received kidSAFE certification and a 5-star review from the Educational App Store, ensuring a safe environment for children to engage in creative play [2] Product Features - The Wendy app allows children to participate in a guided, choice-based story-building process using safe AI, enabling them to create unique, professional-quality short stories in minutes [2] - Key features include the ability to create reusable characters and settings, connect with friends, and enjoy stories through reading, narration, or as audiobooks [2][4] Market Context - A recent Scholastic study indicates a significant rise in children's digital activities since 2018, with 84% of kids engaging in gaming daily and 82% watching YouTube videos, highlighting the competition for children's attention [3] - The study also notes a 40% decline in reading enjoyment and frequency among children aged 8 to 9, termed the "Decline by 9" [3] Funding and Leadership - Wendy raised $2.25 million in its pre-seed round led by Lightbank, with participation from strategic angel investors [5] - The leadership team includes seasoned start-up veterans, many of whom have previously worked with the founder, Lance Neuhauser, who has a successful track record in venture capital and private equity-backed companies [5] Business Model - Wendy aims to create sustainable, ethically sourced intellectual property relationships with the professional publishing community, compensating authors and illustrators for their contributions [4] - The app is available via subscription on the iOS platform, providing parents with an alternative to gaming and passive video consumption [6]