Blog of the website «TechCrunch» Прогноз погоды

People

John Smith

John Smith, 48

Joined: 28 January 2014

Interests: No data

Jonnathan Coleman

Jonnathan Coleman, 32

Joined: 18 June 2014

About myself: You may say I'm a dreamer

Interests: Snowboarding, Cycling, Beer

Andrey II

Andrey II, 41

Joined: 08 January 2014

Interests: No data

David

David

Joined: 05 August 2014

Interests: No data

David Markham

David Markham, 65

Joined: 13 November 2014

Interests: No data

Michelle Li

Michelle Li, 41

Joined: 13 August 2014

Interests: No data

Max Almenas

Max Almenas, 53

Joined: 10 August 2014

Interests: No data

29Jan

29Jan, 32

Joined: 29 January 2014

Interests: No data

s82 s82

s82 s82, 26

Joined: 16 April 2014

Interests: No data

Wicca

Wicca, 37

Joined: 18 June 2014

Interests: No data

Phebe Paul

Phebe Paul, 27

Joined: 08 September 2014

Interests: No data

Артем Ступаков

Артем Ступаков, 93

Joined: 29 January 2014

About myself: Радуюсь жизни!

Interests: No data

sergei jkovlev

sergei jkovlev, 59

Joined: 03 November 2019

Interests: музыка, кино, автомобили

Алексей Гено

Алексей Гено, 8

Joined: 25 June 2015

About myself: Хай

Interests: Интерес1daasdfasf, http://apple.com

technetonlines

technetonlines

Joined: 24 January 2019

Interests: No data



Main article: Social

<< Back Forward >>
Topics from 1 to 10 | in all: 1678

Most tech companies aren’t WeWork

20:59 | 24 January

Shin Kim Contributor
Shin Kim is working on a new SaaS startup and is also chief of staff to entrepreneur Elad Gil . Previously, Shin was at Oak Hill Capital and J.P. Morgan and earned a Master’s in EECS (data science) from UC Berkeley.

With the recent emphasis on Uber and WeWork, much media attention has been focused on high-burn, “software-enabled” startups. However, most of the IPOs of the last few years in tech have been in higher capital efficiency software-as-a-service startups (SaaS).

In the last 30 months (2017 2H onwards), a total of 21 U.S.-based, VC-backed SaaS companies have gone public, including Zoom, Slack, Datadog and others1. I analyzed all 21 companies to understand their fundraising and revenue-generating trajectories. A deep dive into the individual companies’ trajectories can be found in this Extra Crunch article.

Here are the summary takeaways from this data set:

1. At IPO, total capital raised2 was slightly ahead of annual run-rate revenue (ARR)3 for the median company

Here is a scatterplot of the ARR and cumulative capital raised at the time each company went public. Most companies are clustered close to the diagonal line that represents ARR and capital raised matching each other. Total capital raised is often neck-and-neck or slightly higher than ARR.

For example, Zscaler raised $148 million to get to $146 million of ARR at IPO and Sprout Social raised $112 million to get to $106 million of ARR.

It is useful to introduce a metric instead of looking at gross dollars, given the high variance in revenue of the companies in the data set — Sprout Social had $106 million and Dropbox had $1,222 million in ARR, a 10x+ difference. Total capital raised as a multiple of ARR normalizes this variance. Below is a histogram of the distribution of this metric.

The distribution is concentrated around 1.00x-1.25x, with the median company raising 1.23x of ARR by the time of its IPO.

There are outliers on both ends. Domo is a profligate outlier that had raised $690 million to get to $128 million of ARR, or 5.4x of ARR — no other company comes remotely close. Zoom and Datadog are efficient outliers. Zoom raised $161 million to get to $423 million of ARR and Datadog raised $148 million to get to $333 million of ARR, both representing only 0.4x of ARR.

2. Cash burn is a more accurate measure of capital efficiency and may diverge significantly from capital raised (depending on the company)

How much capital a company raised tells only half of the story of capital efficiency, because many companies are sitting on a significant cash balance. For example, PagerDuty raised a total of $174 million but had $128 million of cash left when it went public. As another example, Slack raised a total of $1,390 million prior to going public but had $841 million of unspent cash.

Why do some SaaS companies end up seemingly over-raising capital beyond their immediate cash needs despite the dilution to existing shareholders?

One reason might be that companies are being opportunistic, raising capital far ahead of actual needs when market conditions are favorable.

Another reason may be that VCs that want to meet ownership targets are pushing for larger rounds. For example, a company valued at $400 million pre-money may only need $50 million of cash but could end up taking $100 million from a VC that wants to achieve 20% post-money ownership.

These confounding factors make cash burn — calculated by subtracting the cash balance from total capital raised4 — a more accurate measure of capital efficiency than total capital raised. Here is a distribution of total cash burn as a multiple of ARR.

Remarkably, Zoom achieved negative cash burn, meaning Zoom went public with more cash on its balance sheet than all of the capital it raised.

The median company’s cash burn at IPO was 0.77x of ARR, quite a bit less than the total capital raised of 1.23x of ARR.

3. The healthiest SaaS companies (as measured by the Rule of 40) are often the most capital-efficient

The Rule of 40 is a popular heuristic to gauge the business health of a SaaS company. It asserts that a healthy SaaS company’s revenue growth rate and profit margins should sum to 40%+. The below chart shows how the 21 companies score on the Rule of 405.

Among the 21 companies, eight companies exceed the 40% threshold: Zoom (123%), Crowdstrike (119%), Datadog (76%), Bill.com (56%), Elastic (55%), Slack (52%), Qualtrics (44%) and SendGrid (41%).

Interestingly, the same outliers in terms of capital efficiency as measured by cash burn, on both extremes, are the same outliers in the Rule of 40. Zoom and Datadog, which have the highest capital efficiency, score the highest and third highest on the Rule of 40. And inversely, Domo and MongoDB, which have the lowest capital efficiency, also score lowest on the Rule of 40.

This is not surprising, because the Rule and capital efficiency are really two sides of the same coin. If a company can sustain high growth without sacrificing profit margins too much (i.e. score high on the Rule of 40), it will over time naturally end up burning less cash compared to peers.

Conclusion

To apply all of this to your favorite SaaS business, here are some questions to consider. What is the total capital raised in multiples of ARR? What is the total cash burn in multiples of ARR? Where does it stack compared to the 21 companies above? Is it closer to Zoom or Domo? How does it score on the Rule of 40? Does it help explain the company’s capital efficiency or lack thereof?

Thanks to Elad Gil and Denton Xu for reviewing drafts of this article.

Endnotes

1Only includes U.S.-based, VC-backed SaaS companies. Includes Quatrics, even though it did not go public, as it was acquired right before its scheduled IPO.

2Includes institutional investments prior to the IPO. Does not include founders’ personal capital investment.

3Note that this is not annual recurring revenue, which is not a reporting requirement for public companies. Annual run-rate revenue is calculated by annualizing quarterly revenue (multiplying by four). The two metrics will track closely for SaaS businesses, given that SaaS revenue is predominantly recurring software subscriptions.

4This is a simplified definition as it will capture non-operational uses of cash such as share repurchase from founders.

5Revenue growth is calculated as the growth rate of the revenue during the last 12 months (LTM) over the revenue during the 12 months prior to that. Profit margins are non-GAAP operating margins, calculated as operating income plus stock-based compensation expense divided by revenue over the last 12 months (LTM).

 


0

Meet the b2b videoconferencing startup that’s gone crazy for online dating

13:51 | 24 January

Founder Andreas Kröpfl has spent almost a decade hard-grafting in the b2b unified communications space, building a videoconferencing business with a patented single-stream system and a claim of no ‘drop-offs’ thanks to “unique low-bandwidth technology”.

His Austria-based startup’s current web-based videoconferencing system, eyeson (née Visocon), which launched in 2018, has had some nice traction since launch, as he tells it, garnering a few million customers and getting a nomination nod as a Gartner Cool Vendor last year.

Eyeson’s website touts ‘no hassle, no, lag, no downloads’ video calls. Pricing options for the target b2b users run the gamut from freelance pro to full-blown enterprise. While the business itself has pulled in a smidge less than $7M in investor funding over the years.

But when TechCrunch came across Kröpfl last December, pitching hard in startup alley at Disrupt Berlin, he was most keen to talk about something else entirely: Video dating.

That’s because last summer the team decided to branch out by building their own video dating app, reusing their core streaming tech for a consumer-focused social experiment. And after a period of internal beta testing — which hopefully wasn’t too awkward within a small (up-til-then) b2b-focused team — they launched an experimental dating app in November in India.

The app, called Ahoi, is now generating 100,000 video calls and 250,000 swipes per day, says Kröpfl.

This is where he breaks into a giggle. The traction has been crazy, he says. 

In the staid world of business videoconferencing you can imagine eyeson’s team eyeing the booming growth of certain consumer-focused video products rather enviously.

Per Kröpfl, they had certainly noticed different desires among their existing users — which pushed them to experiment. “We saw that private people like the simple fun features (GIF reactions, …) and that business meetings were more focused on ‘drop-off’ [rates] and business features,” he tells us. “To improve both in one product was not working any more. So eyeson goes business plus SaaS.”

“Cloning eyeson but make it social,” is how he sums up the experiment. 

Ahoi is very evidently an MVP at this stage. It also looks like a pretty brave and/or foolish (depending on your view) full-bore plunge into video dating, with nothing so sophisticated as a privacy screen to prevent any, er, unwanted blushes… (Whereas safety screening is an element we’ve recently seen elsewhere in the category — see: Blindlee.)

There’s also seemingly no way for users to specify the gender they wish to talk to.

Instead, Ahoi users state interests by selecting emoji stickers — such as a car, cat, tennis racket, games console or globetrotter. And, well, it goes without saying that even if you like cars a lot you’re unlikely to change your sexual orientation over the category.

There are no generic emoji that could be used to specify a sexual interest in men or women. But, er, there’s a horse…

Such limits may explain why Ahoi is generating so many early swipes — and rather fewer actual calls — in that the activity sums to (mostly) men looking for women to videochat with and being matched with, er, men.

And frustration, sexual or otherwise, probably isn’t the greatest service to try and sell.

Still, Kröpfl reckons they’ve landed on a winning formula that makes handy reuse of their core videoconferencing tech — letting them growth hack in a totally new category. Swipe right to video date.

“People are disappointed by perfect profiles on Tinder and the reality when meeting people,” he posits. “Wasted time. Especially women do not want to be stalked by men pretending to be someone else. We solve both by a real live conversation where only after a call both can decide to be connected or never see each other again.”

Notably, marketing around the app does talk rather fuzzily about it being a way to “find new pals”.

So while Kröpfl frames the experiment as dating, the reality of the product is more ‘open to options’. Think of it as a bit like Chatroulette — just with slightly more control (in that you have a few seconds to decide if you don’t want to talk to the next in-app match).

The very short countdown timer (you get just five seconds to opt out of a matched video chat) is very likely generating a fair number of unintended calls. Though such high velocity matching might appeal to a certain kind of speed dating addict.

Kröpfl says Ahoi has been seeing up to 20,000 new users added daily. They’re bullishly targeting 3M+ users this year, and already toying with ideas for turning video dates into a money spinner by offering stuff like premium subscriptions and/or video ads. He says the plan is to turn Ahoi into a business “step by step”.

“Everyone loves to make his profile better,” he suggests, floating monetization options down the line. Quality filtering for a fee is another possibility (“everyone is annoyed by being connected to the wrong people”).

They picked India for the test launch because it has a lot of people on the same timezone, a large active mobile user-base and cheap marketing is still “easily possible”. He also says that dating apps seemed popular there, in their experience. (Albeit, the team presumably didn’t have a great deal of relevant experience in this category — given Ahoi is an experiment.)

The intent is also to open Ahoi up to other markets in time too, once they get more accustomed to dealing with all the traffic. Kröpfl notes they had to briefly take the app off the store last month, as they worked on adding more server capability.

“It is very early and we were not prepared for this usage,” he says, admitting they’ve been “struggling to work on early feedbacks”. “We had to make it invisible temporarily — to improve server capacity and stability.”

The contrast in pace of uptake between the stolid (but revenue-generating) world of business meeting-fuelled videoconferencing and catnip consumer dating — which is money-sucking unless or until you can hit a critical mass of usage and get the chance to try applying monetization strategies — does sound like it’s been rather irresistible to Kröpfl.

Asked what it feels like to go from one category to the other he says “crazy, surprised and thrilling”, adding: “It is somehow also frustrating when all the intense b2b work is not as closely interesting to people as Ahoi is. But amazing that it is possible thanks to an extremely focused and experienced team. I love it.” 

TechCrunch’s Manish Singh agreed to brave the local video dating app waters in India to check Ahoi out for us.

He reported back not having seen any women using the app. Which we imagine might be a problem for Ahoi’s longer term prospects — at least in that market.

“I spoke with one guy, who said his friend told him about the app. He said he joined to talk to girls but so far, he is only getting matched with boys,” said Singh. “I saw several names appear on the app, but all of them were boys, too.”

He told us he was left wondering “why people are on these apps, and why they have so much free time on a weekday”.

For ‘people’ it seems safe to conclude that most of Ahoi’s early adopters are men. As the Wall Street Journal reported back in 2018, India’s women are famously cool on dating apps — in that they’re mostly not on them. (We asked Kröpfl about Ahoi’s gender breakdown but he didn’t immediately get back to us on that.)

That market quirk means those female users who are on dating apps tend to get bombarded with messages from all the lonely heart guys with not much to swipe. Which, in turn, could make a video dating app like Ahoi an unattractive prospect to female users — if there’s any risk at all of being inundated with video chats.

And even if there are enough in-app controls to prevent unwelcome inundation by default, women also might not feel like they want their profile to be seen by scores of men simply by merit of being signed up to an app — as seems inevitable if the gender balance is so skewed.

Add to that, if the local perception among single women is that men on dating apps are generally a turn-off — because they’re too eager/forward — then jumping into any unmoderated video chat is probably not the kind of safe space these women are looking for.

No matter, Kröpfl and his team are clearly having far too much fun growth hacking in an unfamiliar, high velocity consumer category to sweat the detail. 

What’s driving Ahoi’s growth right now? “Performance marketing mainly,” he says, pointing also to “viral engagement by sharing and liking profiles”.

Notably, there are already a lot of reviews of Ahoi on Google Play — an unusual amount for such an early app. Many of them appear to be five star write-ups from accounts with European-sounding names and a sometimes robotic grasp of language.

“Eventhough Ahoi has been developed recently, it had high quality for user about calling, making friends and widing your knowlegde [sic],” writes one reviewer with atrocious spelling whose account is attached to the name ‘Dustin Stephens.’

“Talking with like minded people and same favor will creat a fun and interesting atmosphere. Ahoi will manage for you to call like condition above,” says another apparently happy but confused-sounding user, going by the name ‘Elisa Herring’.

There’s also a ‘Madeleine Mcghin’, whose profile uses a photo of the similarly named child who infamously disappeared during a holiday in Portugal in 2007. “My experience with this app was awesome,” this individual writes. “It gives me the option to find new people in every country.”

Another less instantly tasteless five-star reviewer, ‘Stefania Lucchini’, leaves a more surreal form of praise. “A good app and it will bring you extra income, I would say it’s a great opportunity to have AHOI and be a part of it but it’s that it will automatically ban you even if you don’t show it. Marketing. body part, there are still 5 stars for me,” she (or, well, ‘it’) writes.

Among the plethora of dubious five-star reviews a couple of one-star dunks stand out — not least because they come from accounts with names that sound like they might actually come from India. “Waste u r time,” says one of these, using the name Prajal Pradhan.

This pithy drop-kick has been given a full 72 thumbs-up by other Play Store users.

 


0

NBC partners with Snapchat on four daily shows for 2020 Tokyo Olympics

21:02 | 23 January

Snapchat and NBC Olympics are again teaming up to produce customized Olympics content for users in the U.S. — this time, for the 2020 Tokyo Olympics this summer. The companies had previously worked together during the Rio 2016 and PyeongChang 2018 Olympics. The PyeongChang Olympic Winter Games in 2018 reached over 40 million U.S. users, up 25% from the 2016 Rio Olympics.

In addition, 95% of those users were under the age of 35.

This younger demographic is getting harder to reach in the cord-cutting era, as many people forgo pay-TV subscriptions and traditional broadcast networks in favor of on-demand streaming services, like Netflix. That limits the reach of advertisers, impacting NBC’s bottom line.

The Snap partnership helps to fix that, as it offers NBC Olympics a way to sell to advertisers who want to reach younger fans who don’t watch as much — or any — TV. Snapchat today reaches 90% of all 13 to 24 year-olds in the U.S., and 75% of all 13 to 34 year-olds. 210 million people now use Snapchat daily.

NBC Olympics says it’s the exclusive seller of all the new customized content associated with the Games, working in partnership with Snap.

This year, it’s also putting out more content than before.

The company plans to release more than 70 episodes across four daily Snapchat shows leading up to and during the Games. That’s triple the number of episodes it offered in 2018.

For the first time, it’s creating two daily Highlight Shows for Snapchat, which will be updated in near real-time. The shows will include the must-see moments from the day in Tokyo.

In addition, two unscripted shows will air during the Games, each with two episodes per day. One, “Chasing Gold,” which first debuted during PyeongChang 2018, will follow the journeys of Team USA athletes. The second show is new this year, and will be a daily recap of the most memorable moments curated especially for Snapchat users. Both are being produced by The NBCUniversal Digital Lab.

The deal will also see Snap curating daily Our Stories during the Games, as it has done in previous years. The stories will include photos and videos from fans as well as content from the NBC Olympics.

“We know the audience on Snap loves the Olympic Games,” said Gary Zenkel, President, NBC Olympics, in a statement. “After two successful Olympics together, we’re excited to take the partnership to another level and produce even more content and coverage from the Tokyo Olympics tailored for Snapchatters, which also will directly benefit the many NBC Olympics advertisers who seek to engage further with this young and active demographic.”

Snapchat isn’t the only digital destination for Olympics content, however. NBC and Twitter teamed up to stream limited live event coverage, highlights and a daily Olympics show from the Tokyo Games. It was unclear at the time the deal was announced if NBC had opted for Twitter over Snapchat. Now we know that’s not the case — in fact, Snap’s deal with NBC is even bigger than before.

NBCU had said earlier, it expected to exceed $1.2 billion in ad sales for the 2020 Games, which are also presented on NBC, NBCSN, Olympic Channel: Home of Team USA, and NBC Sports’ digital platforms.

 


0

Some tech I loved is getting worse and I’m mad

19:35 | 23 January

Time is supposed to make technology better. The idea is simple: With more time, humans make newer, better technology and our lives improve. Except for when the opposite happens.

Google is a good example of this. I’ve been

for
. Google mobile search, in case you haven’t used it lately, is bad. It often returns bloated garbage that looks like a cross between new Yahoo and original Bing.

Here’s how it butchered a search query for “Metallica” this morning:

Remember when that interface was simpler, and easier to use, and didn’t try to do literally every possible thing for every possible user at once?

It’s not just Google’s mobile search interface that makes me want to claw my eyes out and learn how to talk to trees. Everyone now knows that Mountain View has effectively given up on trying to distinguish ads from organic results (Does the company view them as interchangeable? Probably?). TechCrunch’s

covered the company’s recent search result design changes today, calling them “user-hostile,” going on to summarize the choices as its “latest dark pattern.”

Google, once fanatical about super-clean, fast results is now trying to help you way too much on mobile and fool you on Chrome.

Chrome itself kinda sucks and is getting worse.

. Of course, that all this is shaking out around the same time that the company’s founders left is, you know, not shocking.

I’d also throw TweetDeck into the mix. It’s garbage slow and lags and sucks RAM. Twitter has effectively decided that its power users are idiots who don’t deserve good code. Oh, and Twitter is

it used to give out to users about their followers.

Chrome and TweetDeck are joined by apps like Slack that are also slowing down over time. It appears that as every developer writes code on a computer with 64,000 gigs of RAM, they presume that they can waste everyone else’s. God forbid if you have the piddling 16 gigs of RAM that my work machine has. Your computer is going to lag and often crash. Great work, everyone!

Also, fuck mobile apps. I have two phones now because that’s how 2020 works and I have more apps than I know what to do with, not to mention two different password managers, Okta and more.I’m so kitted out I can’t breathe. I have so many tools available to me I mostly just want to put them all down. Leave me alone! Or only show me the thing I need — not everything at once!

Anyhoo video games are still pretty good as long as you avoid most Battle Royale titles, micropayments, and EA. Kinda.

 


0

Twitter DMs now have emoji reactions

16:27 | 23 January

Twitter is pouring a little more fuel on the messaging fire. It’s added a heart+ button to its direct messaging interface which lets users shortcut to a pop-up menu of seven emoji reactions so they can quickly express how they’re feeling about a missive.

Emoji reactions can be added to text or media messages — either via the heart+ button or by double tapping on the missive to bring up the reaction menu.

The social network teased the incoming tweak a few hours earlier in a knowing

about sliding into DMs that actually revealed the full line-up of reaction emojis — which, in text form, can be described as: Crying lol; shocked/surprised; actually sad; heart; flame; thumb-up and thumb-down.

So instead of a smilie face Twitter users are being nudged towards an on-brand-message Twitter heart, in keeping with its long-standing pick for a pleasure symbol.

The flame is perhaps slightly surprising for a company that’s publicly professed to wanting to improve the conversational health of its platform.

If it’s there to stand in for appreciation a clap emoji could surely have done the trick. Whereas flame wars aren’t typically associated with constructive speech. But — hey — the flame icon does catch the eye…

Twitter is late to this extroverted party. Rival messaging platforms such as Apple iMessage and Facebook Messenger have had emoji reactions for years, whereas Twitter kept things relatively minimal and chat-focused in its DM funnel — to its credit (at least if you value the service as, first and foremost, an information network).

So some might say Twitter jumping on the emoji reaction bandwagon now is further evidence it’s trying to move closer to rivals like Facebook as a product. (See also: Last year’s major desktop product redesign by Twitter — which has been compared in look and feel to the Facebook News Feed.)

But if so this change at least is a relatively incremental one.

Twitter users have also, of course, always been able to react to an incoming DM by sending whatever emoji or combination of emoji they prefer as a standard reply. Though now lazy thumbs have shortcut to emote — so long as they’re down with Twitter’s choice of icons.

In an FAQ about the new DM emoji reactions, Twitter notes that emoting will by default send a notification to all conversation participants “any time a new reaction is added to a message”.

So, yes, there’s attention-spamming potential aplenty here…

Adjust your notification and DM settings accordingly.

You can only choose one reaction per missive. Each symbol is displayed under the message/media with a count next to it — to allow for group tallies to be totted up. 

While clicking on another symbol will swap out the earlier one — generating, er, more notification spam. And really annoying people could keep flipping their reaction to generate a real-time emoji streaming game of notification hell (hi growth hackers!) with folks they’ve been DMing with on Twitter. So that’s another good reason to lock down your settings.

Twitter users still running older version of its apps which don’t support message reactions will see a standard text emoji message per reaction sent — which kinda confusingly makes it look like the reaction sender has actually been liking/flaming their own stuff. All the more reason to not be spammy about emoji.

 


0

Yo Facebook & Instagram, stop showing Stories reruns

03:55 | 23 January

If I watch a Story cross-posted from Instagram to Facebook on either of the apps, it should appear as “watched” at the back of the Stories row on the other app. Why waste my time showing me Stories I already saw?

It’s been over two years since Instagram Stories launched cross-posting to Stories. Countless hours of each feature’s 500 million daily users have been squandered viewing repeats. Facebook and Messenger already synchronized the watched/unwatched state of Stories. It’s long past time that this was expanded to encompass Instagram.

I asked Facebook and Instagram if it had plans for this. A company spokesperson told me that it built cross-posting to make sharing easier to people’s different audiences on Facebook and Instagram, and it’s continuing to explore ways to simplify and improve Stories. But they gave no indication that Facebook realizes how annoying this is or that a solution is in the works.

The end result if this gets fixed? Users would spend more time watching new content, more creators would feel seen, and Facebook’s choice to jam Stories in all its apps would fee less redundant and invasive. If I send a reply to a Story on one app, I’m not going to send it or something different when I see the same Story on the other app a few minutes or hours later. Repeated content leads to more passive viewing and less interactive communication with friends, despite Facebook and Instagram stressing that its this zombie consumption that’s unhealthy.

The only possible downside to changing this could be fewer Stories ad impressions if secondary viewings of peoples’ best friends’ Stories keep them watching more than new content. But prioritizing making money over the user experience is again what Mark Zuckerberg has emphasized is not Facebook’s strategy.

There’s no need to belabor the point any further. Give us back our time. Stop the reruns.

 


0

Octi launches a social network built around augmented reality

17:07 | 22 January

Octi has created a new social network that uses augmented reality to connect the act of seeing your friends in real life with viewing digital content like their favorite YouTube videos and Spotify songs.

When I wrote about the startup in 2018, it was building AR technology that could do a better job of recognizing the human body and movement. Last week, co-founder and CEO Justin Fuisz (pictured above) told me that this was “a really cool feature,” but that Octi’s investors pushed him “to do more, go deeper.”

Speaking of those investors, the startup says it’s now raised $12 million in funding (including a previously announced seed round of $7.5 million) from Live Nation, Anheuser-Busch InBev, Peter Diamandis’ Bold Capital Partners, Human Ventures, I2BF, Tom Conrad, Scott Belsky and Josh Kushner.

Last week, Fuisz demonstrated what he now sees as Octi’s “mic drop” moment — opening the new app and pointing his iPhone camera at a colleague. The app quickly recognized her, allowing Fuisz to send her a friend request. And once the request was accepted, could Fuisz look at her through the camera again, where she was surrounded by a floating “belt” of virtual items that she’d created with videos, songs and photos.

Octi app

Octi also allows you to include fun effects and stickers. Your friends can change your profile too, making you wear a funny hat or giving you a rousing theme song for the day.

To create a facial recognition experience that’s fast and simple, Fuisz said that Octi’s powered by a “neural network on the edge,” allowing the app to process images on the device (rather than uploading them to the cloud) in a privacy-friendly way.

He said the company has taken other steps to optimize the process, like prioritizing friends-of-friends rather than searching through the faces of everyone in the network, resulting in an app that can identify a friend in as little as 20 milliseconds.

While Octi allows you to view friends’ profiles remotely, it’s worth emphasizing that the core experience is meant to be in-person. In fact, the company provided a statement from analyst Rich Greenfield in which he described the app as “an impressive technology that gives teens a compelling reason to be present and communicate with their phones, while gathered with their closest friends.”

Octi app

I wondered whether a new social dynamic also provides new opportunities for harassment and bullying, but Fuisz noted that for now, Octi profiles and belts are only visible to friends that you’ve approved. So if one of your connections is doing something you don’t like, “You just say goodbye. That’s it. That’s a simple way of dealing with it.”

Fuisz added that this initial version provides a foundation for many more experiences: “There’s endless opportunity for games and other fun things you can do.”

Ultimately, he’s hoping to turn this into a WeChat-style platform for outside developers to build social tools and content. And since Octi works on iPhone 7 and above (with plans for an Android version later this year), it can potentially reach an enormous audience out of the gate, rather than facing the scale issues of a more specialized AR or VR hardware platform.

 


0

Spotify test lets influencers post Stories to introduce their own playlists

23:28 | 21 January

Spotify is testing a new Stories feature that will allow select influencers to incorporate video elements into their public playlists, TechCrunch has learned and Spotify confirmed. The first influencer to test the feature is makeup and fashion YouTube star Summer Mckeen, who currently has a social media fan base that includes 2.33 million YouTube subscribers, 2.1 million Instagram followers, and 126,455 Spotify followers. Mckeen is using the new feature to introduce a playlist of her all-time favorite songs, which she’s titled her “all time besties.”

Like other Stories’ products found on social media apps, the Spotify version offers a similar experience that includes short video clips that users can tap on to advance to the next screen. There are also horizontal lines at the top that indicate how many screens still await them ahead.

Above: where Stories are found on playlists

Meanwhile, the entry point for the Spotify Story is a circular icon right found above the playlist’s title. This has also been designed to catch your attention with an animated preview of the video you’ll see if you tap through.

Above: Mckeen introduces her playlist of favorite songs

Once in the Story, the clips will play and advance automatically and the playlist where you found the Story is featured at the top. You can also tap the “X” to exit at any time.

Spotify’s unique take on the Stories format involves its use of music, of course.

In the new Stories feature, the influencer can also share video clips that contain small song snippets and the album art as a way of previewing the songs in the playlist. In Mckeen’s case, a few of these follow her introduction of the new playlist.

Above: Song clips in Stories

Mckeen is the first influencer to go live on Spotify Stories, but we understand the company is also planning to roll this out to other notable names across the entertainment, lifestyle and music industries in the near future. This initial group of testers is being determined by a variety of factors — including follower count, how engaged their followers are, and how active the influencer in question is on Spotify. Mckeen was selected because she’s someone who likes to make playlists on her own and has many user-generated playlists she shares with fans.

Spotify isn’t rolling out the feature to its artists, however, as it’s meant to be more a tool for music discovery, rather than one for promotional purposes. Artists, instead, can reach fans creatively using Canvas — the recently launched looping videos product that can take the place of album art when a song plays.

Despite the similarity with other Stories found on apps like Instagram, Facebook, Snapchat and YouTube, Spotify’s goal isn’t to turn its app into another social media platform. Instead, it will rely on the influencers to get the word out to fans themselves using their existing accounts found elsewhere. Mckeen, for example, posted to her Instagram Stories with a deep link directly to the playlist in question.

Above: Mckeen’s IG Story

Currently, the Spotify Stories product can only be seen on iOS and Android, not desktop. (Mckeen’s is here.) And it’s available to all Spotify users — free and paid — although that could one day change. Spotify considers the product just a test for now, but is open to considering a broader rollout in the future.

Spotify confirmed the test to TechCrunch and offered a short statement.

“At Spotify, we routinely conduct a number of tests in an effort to improve our user experience. Some of those tests end up paving the path for our broader user experience and others serve only as an important learning,” a Spotify spokesperson said. “We have no further news to share on future plans at this time,” they added.

This is not the first time Spotify has dabbled with a Stories format, however. Last year, Spotify was spotted testing a Stories-like product called Storyline that was similar to “Behind the Lyrics,” but instead allowed artists to share their own insights, inspiration, and other details more directly. This can still be found on Spotify on select songs, but hasn’t become broadly available.

 


0

Shadows’ Dylan Flinn and Kombo’s Kevin Gould on the business of ‘virtual influencers’

19:24 | 19 January

In films, TV shows and books — and even in video games where characters are designed to respond to user behavior — we don’t perceive characters as beings with whom we can establish two-way relationships. But that’s poised to change, at least in some use cases.

Interactive characters — fictional, virtual personas capable of personalized interactions — are defining new territory in entertainment. In my guide to the concept of “virtual beings,” I outlined two categories of these characters:

  • virtual influencers: fictional characters with real-world social media accounts who build and engage with a mass following of fans.
  • virtual companions: AIs oriented toward one-to-one relationships, much like the tech depicted in the films “Her” and “Ex Machina.” They are personalized enough to engage us in entertaining discussions and respond to our behavior (in the physical world or within games) like a human would.

Part 2 of 3: the business of virtual influencers

Today’s discussion focuses on virtual influencers: fictional characters that build and engage followings of real people over social media. To explore the topic, I spoke with two experienced entrepreneurs:

  • Dylan Flinn is CEO of Shadows, an LA-based animation studio that’s building a roster of interactive characters for social media audiences. Dylan started his career in VC, funding companies such as Robinhood, Patreon and Bustle, and also spent two years as an agent at CAA.
  • Kevin Gould is CEO of Kombo Ventures, a talent management and brand incubation firm that has guided the careers of top influencers like Jake Paul and SSSniperWolf. He is the co-founder of three direct-to-consumer brands — Insert Name Here, Wakeheart and Glamnetic — and is an angel investor in companies like Clutter, Beautycon and DraftKings.

 


0

TechCrunch’s Top 10 investigative reports from 2019

17:30 | 19 January

Facebook spying on teens, Twitter accounts hijacked by terrorists, and sexual abuse imagery found on Bing and Giphy were amongst the ugly truths revealed by TechCrunch’s investigating reporting in 2019. The tech industry needs more watchdogs than ever as its size enlargens the impact of safety failures and the abuse of power. Whether through malice, naivety, or greed, there was plenty of wrongdoing to sniff out.

Led by our security expert Zack Whittaker, TechCrunch undertook more long-form investigations this year to tackle these growing issues. Our coverage of fundraises, product launches, and glamorous exits only tell half the story. As perhaps the biggest and longest running news outlet dedicated to startups (and the giants they become), we’re responsible for keeping these companies honest and pushing for a more ethical and transparent approach to technology.

If you have a tip potentially worthy of an investigation, contact TechCrunch at tips@techcrunch.com or by using our anonymous tip line’s form.

Image: Bryce Durbin/TechCrunch

Here are our top 10 investigations from 2019, and their impact:

Facebook pays teens to spy on their data

Josh Constine’s landmark investigation discovered that Facebook was paying teens and adults $20 in gift cards per month to install a VPN that sent Facebook all their sensitive mobile data for market research purposes. The laundry list of problems with Facebook Research included not informing 187,000 users the data would go to Facebook until they signed up for “Project Atlas”, not receiving proper parental consent for over 4300 minors, and threatening legal action if a user spoke publicly about the program. The program also abused Apple’s enterprise certificate program designed only for distribution of employee-only apps within companies to avoid the App Store review process.

The fallout was enormous. Lawmakers wrote angry letters to Facebook. TechCrunch soon discovered a similar market research program from Google called Screenwise Meter that the company promptly shut down. Apple punished both Google and Facebook by shutting down all their employee-only apps for a day, causing office disruptions since Facebookers couldn’t access their shuttle schedule or lunch menu. Facebook tried to claim the program was above board, but finally succumbed to the backlash and shut down Facebook Research and all paid data collection programs for users under 18. Most importantly, the investigation led Facebook to shut down its Onavo app, which offered a VPN but in reality sucked in tons of mobile usage data to figure out which competitors to copy. Onavo helped Facebook realize it should acquire messaging rival WhatsApp for $19 billion, and it’s now at the center of anti-trust investigations into the company. TechCrunch’s reporting weakened Facebook’s exploitative market surveillance, pitted tech’s giants against each other, and raised the bar for transparency and ethics in data collection.

Protecting The WannaCry Kill Switch

Zack Whittaker’s profile of the heroes who helped save the internet from the fast-spreading WannaCry ransomware reveals the precarious nature of cybersecurity. The gripping tale documenting Marcus Hutchins’ benevolent work establishing the WannaCry kill switch may have contributed to a judge’s decision to sentence him to just one year of supervised release instead of 10 years in prison for an unrelated charge of creating malware as a teenager.

The dangers of Elon Musk’s tunnel

TechCrunch contributor Mark Harris’ investigation discovered inadequate emergency exits and more problems with Elon Musk’s plan for his Boring Company to build a Washington D.C.-to-Baltimore tunnel. Consulting fire safety and tunnel engineering experts, Harris build a strong case for why state and local governments should be suspicious of technology disrupters cutting corners in public infrastructure.

Bing image search is full of child abuse

Josh Constine’s investigation exposed how Bing’s image search results both showed child sexual abuse imagery, but also suggested search terms to innocent users that would surface this illegal material. A tip led Constine to commission a report by anti-abuse startup AntiToxin (now L1ght), forcing Microsoft to commit to UK regulators that it would make significant changes to stop this from happening. However, a follow-up investigation by the New York Times citing TechCrunch’s report revealed Bing had made little progress.

Expelled despite exculpatory data

Zack Whittaker’s investigation surfaced contradictory evidence in a case of alleged grade tampering by Tufts student Tiffany Filler who was questionably expelled. The article casts significant doubt on the accusations, and that could help the student get a fair shot at future academic or professional endeavors.

Burned by an educational laptop

Natasha Lomas’ chronicle of troubles at educational computer hardware startup pi-top, including a device malfunction that injured a U.S. student. An internal email revealed the student had suffered a “a very nasty finger burn” from a pi-top 3 laptop designed to be disassembled. Reliability issues swelled and layoffs ensued. The report highlights how startups operating in the physical world, especially around sensitive populations like students, must make safety a top priority.

Giphy fails to block child abuse imagery

Sarah Perez and Zack Whittaker teamed up with child protection startup L1ght to expose Giphy’s negligence in blocking sexual abuse imagery. The report revealed how criminals used the site to share illegal imagery, which was then accidentally indexed by search engines. TechCrunch’s investigation demonstrated that it’s not just public tech giants who need to be more vigilant about their content.

Airbnb’s weakness on anti-discrimination

Megan Rose Dickey explored a botched case of discrimination policy enforcement by Airbnb when a blind and deaf traveler’s reservation was cancelled because they have a guide dog. Airbnb tried to just “educate” the host who was accused of discrimination instead of levying any real punishment until Dickey’s reporting pushed it to suspend them for a month. The investigation reveals the lengths Airbnb goes to in order to protect its money-generating hosts, and how policy problems could mar its IPO.

Expired emails let terrorists tweet propaganda

Zack Whittaker discovered that Islamic State propaganda was being spread through hijacked Twitter accounts. His investigation revealed that if the email address associated with a Twitter account expired, attackers could re-register it to gain access and then receive password resets sent from Twitter. The article revealed the savvy but not necessarily sophisticated ways terrorist groups are exploiting big tech’s security shortcomings, and identified a dangerous loophole for all sites to close.

Porn & gambling apps slip past Apple

Josh Constine found dozens of pornography and real-money gambling apps had broken Apple’s rules but avoided App Store review by abusing its enterprise certificate program — many based in China. The report revealed the weak and easily defrauded requirements to receive an enterprise certificate. Seven months later, Apple revealed a spike in porn and gambling app takedown requests from China. The investigation could push Apple to tighten its enterprise certificate policies, and proved the company has plenty of its own problems to handle despite CEO Tim Cook’s frequent jabs at the policies of other tech giants.

Bonus: HQ Trivia employees fired for trying to remove CEO

This Game Of Thrones-worthy tale was too intriguing to leave out, even if the impact was more of a warning to all startup executives. Josh Constine’s look inside gaming startup HQ Trivia revealed a saga of employee revolt in response to its CEO’s ineptitude and inaction as the company nose-dived. Employees who organized a petition to the board to remove the CEO were fired, leading to further talent departures and stagnation. The investigation served to remind startup executives that they are responsible to their employees, who can exert power through collective action or their exodus.

If you have a tip for Josh Constine, you can reach him via encrypted Signal or text at (585)750-5674, joshc at TechCrunch dot com, or through Twitter DMs

 


0
<< Back Forward >>
Topics from 1 to 10 | in all: 1678

Site search


Last comments

Walmart retreats from its UK Asda business to hone its focus on competing with Amazon
Peter Short
Good luck
Peter Short

Evolve Foundation launches a $100 million fund to find startups working to relieve human suffering
Peter Short
Money will give hope
Peter Short

Boeing will build DARPA’s XS-1 experimental spaceplane
Peter Short
Great
Peter Short

Is a “robot tax” really an “innovation penalty”?
Peter Short
It need to be taxed also any organic substance ie food than is used as a calorie transfer needs tax…
Peter Short

Twitter Is Testing A Dedicated GIF Button On Mobile
Peter Short
Sounds great Facebook got a button a few years ago
Then it disappeared Twitter needs a bottom maybe…
Peter Short

Apple’s Next iPhone Rumored To Debut On September 9th
Peter Short
Looks like a nice cycle of a round year;)
Peter Short

AncestryDNA And Google’s Calico Team Up To Study Genetic Longevity
Peter Short
I'm still fascinated by DNA though I favour pure chemistry what could be
Offered is for future gen…
Peter Short

U.K. Push For Better Broadband For Startups
Verg Matthews
There has to an email option icon to send to the clowns in MTNL ... the govt of India's service pro…
Verg Matthews

CrunchWeek: Apple Makes Music, Oculus Aims For Mainstream, Twitter CEO Shakeup
Peter Short
Noted Google maybe grooming Twitter as a partner in Social Media but with whistle blowing coming to…
Peter Short

CrunchWeek: Apple Makes Music, Oculus Aims For Mainstream, Twitter CEO Shakeup
Peter Short
Noted Google maybe grooming Twitter as a partner in Social Media but with whistle blowing coming to…
Peter Short