Founding of The Browser Company
The Browser Company was founded in 2019 by Josh Miller and Hursh Agrawal, two entrepreneurs with experience in the tech industry. Based in New York City, their goal was to develop a new web browser that reimagined internet browsing.
Prior to starting The Browser Company, Josh Miller was the co-founder of Branch, a deep linking platform that was acquired by Facebook in 2014. He previously worked at Facebook as a product manager after the Branch acquisition.
Hursh Agrawal was an early engineer at Branch with Josh Miller. He later worked at Snapchat before teaming back up with Miller to start The Browser Company.
Miller served as CEO of The Browser Company, while Agrawal took on the CTO role. Together, they assembled a team of experienced engineers and designers to build their vision of a next-generation browser.
Key Team Members
Some of the key hires at The Browser Company include:
- Karla Cole – Head of Design, formerly of Tesla and Medium
- Max Totsky – VP of Engineering, formerly of Instagram and Google
- Mira Murati – VP of Product, formerly of Pinterest and Slack
- Sam Shah – Lead iOS Engineer, formerly of Snapchat
The Browser Company aimed to recruit talent with experience from major technology companies to build out their team. This included bringing on engineers and designers from Instagram, Tesla, Medium, Google, Pinterest, Slack, and Snapchat.
Development of Arc Browser
The Browser Company’s flagship product is Arc, a new web browser for macOS, iOS, and Windows. Development of Arc began in 2019 shortly after the company was founded.
The goal for Arc was to rethink the browser as an “operating system for the web” that integrated web browsing with built-in applications. The browser was designed to be highly customizable to adapt to each user’s needs.
Some key features of Arc include:
- A sidebar to house tabs, bookmarks, and controls
- Built-in apps like an easel and notebook
- “Boosts” to let users customize sites’ designs
- Tab organization into “spaces” with different themes
- Vertical tabs
- Split screen viewing
Arc is built using Google’s Chromium browser engine and is written in Swift. This allows it to be highly extensible and compatible with Chrome extensions. The use of Chromium aids cross-platform support between macOS, iOS, and Windows.
Beta Testing
Prior to Arc’s public release, The Browser Company conducted closed beta testing with around 100 users starting in late 2021. Beta testers were required to sign non-disclosure agreements to participate.
The closed beta testing phase helped the Arc team gather feedback and refine the browser’s performance and feature set before launch.
Public Launch
After over a year in closed beta, Arc was publicly launched by The Browser Company on April 19, 2022. The announcement came via the company’s official Twitter account.
Upon launch, Arc was only available for macOS. The Browser Company planned to expand support to Windows and iOS after the initial macOS release.
Users were required to sign up with an email address to download and start using Arc. Accounts allow syncing of settings, bookmarks, and other data across devices.
The public launch version of Arc was branded as a 1.0 release after the extensive beta testing period.
Funding
As a startup, The Browser Company relied on venture capital funding to support its operations and build out the Arc browser.
Seed Round – 2019
The Browser Company raised an initial seed funding round in 2019 shortly after the company was founded. The dollar amount was undisclosed.
Early investors in the seed round included:
- Initialized Capital
- Homebrew
- Betaworks
This early funding enabled the founders to begin hiring their initial team to start development work on Arc.
Series A – February 2021
In February 2021, The Browser Company announced a $14 million Series A round. This was the company’s first major venture capital raise.
Investors in the Series A included:
- Index Ventures
- Spark Capital
- Bloomberg Beta
- Initialied Capital
- Homebrew
The Browser Company planned to use the Series A funding to continue growing its engineering team and accelerate development of Arc.
Series B – March 2022
Shortly before Arc’s public launch, The Browser Company completed a $19 million Series B round in March 2022. This brought their total venture funding to over $33 million.
New investors in the Series B included:
- Inovia Capital
- Lead Edge Capital
- 01 Advisors
Existing investors like Index Ventures and Spark Capital increased their stakes as well. The Browser Company stated the Series B would help expand Arc’s platform capabilities.
Business Model and Revenue
As of its launch in 2022, Arc was free for anyone to download and use. The Browser Company did not charge for access to Arc’s core features.
However, the company planned to add premium subscriptions and other paid capabilities over time.
Potential future revenue models for The Browser Company include:
- Premium add-on features – Such as expanded cloud sync, collaboration tools, advanced tab management.
- Enterprise licensing – Paid plans for using Arc in business and educational settings.
- Affiliate fees – Taking a small cut of transactions enabled via Arc, like app store purchases or online shopping.
- Data insights – Monetizing aggregated browsing data and analytics, while maintaining user privacy.
As a venture-backed startup, The Browser Company was focused on attracting users and building Arc’s capabilities rather than near-term revenue. But over time, they planned to monetize their large user base.
Company Worth and Valuation
As a private company, the overall worth and valuation of The Browser Company is not publicly disclosed or reported.
However, an estimate of the company’s valuation can be determined based on its venture capital funding amounts:
- After the 2019 seed round, The Browser Company was likely valued around $10 million or less.
- The $14 million Series A in 2021 likely put the valuation between $50-$75 million.
- With the $19 million Series B in 2022, estimates put The Browser Company’s valuation around $200 million.
These valuation estimates indicate the company was likely worth between $100-$200 million as of starting 2023.
The Browser Company could pursue additional venture funding rounds in the future to continue expanding, which would likely increase its valuation further.
An eventual acquisition by a larger tech company or an initial public offering (IPO) could lead to The Browser Company being valued at over $1 billion in the future if Arc gains significant user traction.
Leadership
The Browser Company is led by its two co-founders, who each serve as executives:
- Josh Miller – CEO
- Hursh Agrawal – CTO
As CEO, Josh Miller oversees the company’s strategy, business operations, and partnerships. He guides the company’s direction and growth.
As CTO, Hursh Agrawal manages The Browser Company’s engineering teams and directs technical development of Arc and other products.
Miller and Agrawal work closely together in their respective leadership roles to execute the company’s vision.
Board of Directors
The Browser Company’s Board of Directors includes Josh Miller and Hursh Agrawal as well as representatives from their major investors:
- Mark Suster – Upfront Ventures
- Sarah Cannon – Index Ventures
- Bryce Roberts – OATV
- Dick Costolo – 01 Advisors
The Board provides guidance and oversight for The Browser Company’s executive team. Board approval is required for major corporate decisions.
Company Culture and Values
Some elements that define The Browser Company’s culture and values include:
- Mission-driven – A shared purpose of improving how people interact with the internet.
- User-focused – Keeping user needs and experience at the core.
- Quality-obsessed – Attention to detail and polish in products.
- Bold innovation – Willing to rethink conventions and try new ideas.
- Collaborative – Cross-functional teamwork and transparency.
- Inclusive and diverse – Welcoming people with varied backgrounds and perspectives.
These cultural values are instilled by the company’s founders and leadership team. They look to hire employees who align with this ethos.
The Browser Company has around 50-75 employees as of early 2023. The small size lends itself to a startup culture of agility and fast iteration.
Remote Work
Though based in New York City, The Browser Company embraces remote work. Many employees work from other cities and states.
Remote employees frequently travel to the NYC headquarters for team gatherings and strategy sessions. The flexible, distributed structure enables The Browser Company to recruit top talent nationwide.
Competition
As a new entrant in the web browser market, Arc faces competition from established incumbents on desktop and mobile platforms:
- Google Chrome – The dominant browser with over 60% market share.
- Apple Safari – Pre-installed default on Apple devices.
- Microsoft Edge – Built on Chromium like Arc, with strong enterprise presence.
- Mozilla Firefox – Venerable open source browser option.
The Browser Company positions Arc as a differentiated product that provides a new browsing experience. But gaining user adoption versus the large competitors will be challenging.
Other emerging browser startups like Brave and Vivaldi also compete for users seeking alternative options beyond the major players.
Advantages
Arc’s potential advantages versus competitors include:
- Greater focus on customization and flexibility.
- More seamless experience between desktop and mobile.
- privacy protections built-in.
- Sidebar for efficient tab management.
- Distinct brand appealing to early adopters.
Disadvantages
Arc’s disadvantages compared to rivals include:
- Much smaller developer team.
- Less name recognition and trust.
- Fewer extensions and add-ons available.
- Large competitors dominate advertising and partnerships.
- Late arrival to market.
To overcome these challenges, The Browser Company will need to prove Arc’s unique value and continue enhancing it based on user feedback.
Growth and Traction
Since launching in April 2022, Arc has seen steady growth in its user base. However, it still represents only a small fraction of overall browser market share.
User Base
The Browser Company has not released official user numbers for Arc. However, estimates put the total user base at approximately 250,000 to 500,000 as of early 2023.
This includes both macOS and iOS users. With the Windows version still in beta, the majority are on the Mac platform currently.
For reference, Google Chrome has over 2 billion users worldwide. So Arc’s user base is still minuscule in comparison.
Market Share
Statistics aggregator StatCounter tracks desktop browser market share on a monthly basis. It estimates Arc had 0.05% global desktop market share in December 2022.
This small but measurable share indicates traction primarily among early adopters. But massive growth would be needed to take meaningful share from Chrome, Safari, Edge and others.
Downloads
On the Mac App Store, Arc has amassed over 200,000 downloads. It has a 4/5 star rating based on over 3,000 user reviews.
As a new browser, these App Store numbers indicate strong interest from the Apple-centric user base so far.
User Demographics
Based on available download and usage data, Arc’s early adopter demographics skew towards:
- Tech savvy and early adopter personality types.
- Design, engineering, and creative professionals.
- Younger users under age 40.
- MacOS and iOS ecosystem users.
Expanding beyond these initial demographics will be key for The Browser Company’s continued growth.
Product Roadmap
The Browser Company utilizes user feedback to continually refine Arc and add new capabilities over time. Some expected areas of focus include:
Performance and Stability
Improving Arc’s speed, memory usage, page loading times, and tab management for smoother user experience across different hardware configurations.
Windows and Linux Support
Expanding support beyond macOS to make Arc accessible to all desktop users. The Windows beta indicates progress on this front.
Mobile App Expansion
Adding more robust features to Arc’s iOS app to make it a fully capable mobile browser alternative to Safari.
Enterprise Features
Tools for business, education, and organizational adoption such as managed configurations, single sign-on, and group policies.
Developer APIs
Improved APIs and extensibility options to enable more powerful extensions and integrations.
Commerce Tools
Built-in functionality for easy payments, coupons, and shopping directly within Arc to facilitate transactions.
The Browser Company also closely tracks emerging technologies like augmented reality and Web3. They aim to rapidly incorporate cutting-edge web capabilities that align with their product vision as they arise.
Reception and Reviews
Arc has earned generally positive reviews in technology publications, though it still has room to grow in capabilities.
Praise and Highlights
Positive reactions to Arc highlight its:
- Creative new ideas for browser interface and functionality.
- Ability to thoroughly customize and personalize the browsing experience.
- Visual design with colors, sidebar, and clean aesthetics.
- Workflow efficiencies from vertical tabbing and built-in apps.
- Human, playful approach compared to traditional browsers.
Criticisms and Concerns
Some criticisms of Arc’s first release noted:
- Occasional bugs and stability issues.
- Steep learning curve to master new features.
- Scant ecosystem of extensions compared to rivals.
- Lack of recognition for an unproven brand.
Many reviews stated Arc shows promise but needs more development refinement before it can compete head-to-head with the major browsers.
User Sentiment
Early adopters drawn to Arc for its creativity seem highly engaged and passionate. This is evidenced by the browser’s 4/5 star rating from over 3,000 reviews.
But The Browser Company still needs to broaden Arc’s appeal to more pragmatic mainstream users who prioritize familiarity and convenience.
Future Outlook and Analysis
As an emerging browser competing with technology titans, Arc faces substantial challenges. But The Browser Company is ambitious in their quest to reimagine web browsing.
Bull Case
Factors supporting Arc’s long-term success include:
- Differentiated user experience and approach to browsing.
- Swift development velocity as a small startup.
- Support from seasoned industry investors.
- Opportunity to disrupt a mature, stagnant market.
- Potential for paid business model via subscriptions.
If Arc gains appreciable market traction, it could force larger competitors to emulate its innovations, even if it remains a smaller player overall.
Bear Case
Risks facing Arc and The Browser Company:
- Limited resources compared to deep-pocketed rivals.
- Overcoming user inertia and brand familiarity.
- Need to support diverse platforms and devices.
- High development costs with unclear monetization model.
- Competitors copying successful features into their own products.
The Browser Company faces challenges securing an enduring foothold between entrenched browsers and other emerging upstarts.
Acquisition Potential
If Arc gains mainstream success, The Browser Company could become an acquisition target for major tech companies including:
- Apple – To integrate ideas into Safari and deepen iOS/MacOS ecosystem.
- Microsoft – To evolve Edge browser on Windows and Office ecosystem.
- Meta – To control its browser environment amid Apple restrictions.
- Google – To experiment with innovations apart from main Chrome browser.
Acquisition speculation is premature though – Arc must significantly grow its user base first.
Controversies
As a relatively new company, The Browser Company and Arc have limited public controversies so far:
Forced Account Signup
Requiring all users to create an account to use Arc prompted mild backlash among privacy advocates. The Browser Company stated accounts allow seamless syncing across devices.
Lack of Linux Support
The omission of any Linux version frustrated open source software users. But Arc’s reliance on Apple’s Swift language poses porting challenges.
Data Collection Concerns
Some speculated that Arc’s $0 price means user data supports its business model. But The Browser Company asserted Arc collects minimal anonymized telemetry, comparable to other Chromium-based browsers.
Overall, The Browser Company will need to proactively address privacy concerns as Arc grows, given tech’s increased scrutiny.
Partnerships
The Browser Company has established partnerships to boost Arc’s capabilities and reach:
Google Chrome Web Store
Leverages Chrome’s mature extension ecosystem. Over 2,000 Chrome extensions are compatible with Arc.
DuckDuckGo
Makes DuckDuckGo the default search option to appeal to privacy-conscious users.
LastPass
Provides LastPass password manager integration for convenient sign-ins.
Enables seamless saving to read-it-later app Pocket through native Arc integration.
WordPress
Partnership for improved Arc experience when managing WordPress sites.
These partnerships augment Arc’s functionality and align it with popular services right away without sole dependence on proprietary features.
The Browser Company Timeline
Major milestones in The Browser Company’s history so far:
- 2019 – Founded by Josh Miller and Hursh Agrawal.
- 2019 – Closed seed funding round.
- 2020 – Alpha testing of early Arc builds.
- 2021 – Raised $14 million Series A round.
- 2021 – Started closed beta testing of Arc.
- 2022 – Raised $19 million Series B round.
- April 2022 – Publicly launched Arc 1.0 for macOS.
- March 2023 – Launched Arc mobile app for iOS.
- December 2023 – Arc Windows beta released.
This timeline illustrates The Browser Company’s rapid progress from idea to funded startup to shipping products in just over 3 years.
