Concept vehicles are a staple of the auto show circuit. And while most will never end up as a production vehicle, they can provide insight into an automaker and clues to where it’s headed.
Over at Audi, designers and engineers might have had a distant planet in mind. Or at least an expanse of wilderness.
The German automaker unveiled Tuesday at the Frankfurt Motor Show the Audi AI: TRAIL quattro, a concept electric vehicle designed for the “future of off roading.” The “Trail” off roader is one of four concept vehicles that Audi has presented at various auto shows since 2017. Other concepts included a sports car, luxury vehicle and one designed for megacities.
Audi argues that these concepts aren’t efforts of futility. Instead, the company says it these four vehicles show how Audi vehicles in the future will be designed for specific use cases.
“In the future, customers will be able to order any of these specialist Audi models from an Audi on-demand vehicle pool to suit their personal preferences and requirements and to lease them for a limited period,” the company said in its announcement.
Audi takes this idea of the on-demand subscription further by noting that vehicles will be configured to suit individual preferences of customers who use this still non-existent and totally conceptual on-demand product. All the essential customer information would be stored in the myAudi system and accompanying app, the company said.
In the video below, Audi’s head of design Marc Lichte explains the thinking behind these concepts.
In the case of the Audi AI: TRAIL, designers put an emphasis on exploration and seeing the surrounding environment. It even comes with five drones, which aside from replacing the headlights, can provide other tasks such as lighting up your camping area or picnic spot.
The all-electric concept, which has a range of up to 310 miles, is about 13.5 feet long and 7 feet wide and is outfitted with beefy 22-inch wheels. And because it’s a vehicle meant to off road, designers gave it ground clearance of 13.4 inches. This concept, if it really existed beyond the showroom floor, can ford through water more than half a meter deep. The range of the vehicle does drop on rough roads to about 155 miles, which would theoretically (if this vehicle actually existed) make wilderness travel more difficult.
The battery unit is integrated into the floor providing a spacious interior that sits four people. Glass surrounds the cabin to provide unrivaled views of the environment, whether it’s an earthly vista or the binary sunset over the fictional Tatooine desert.
The remaining exterior body is made of a mixture of high-tech steel, aluminum and carbon fiber, giving it a total weight of 3,858 pounds.
The concept vehicle is equipped with four electric motors, systems for assisted and automated driving and all-wheel drive. What you won’t find are any screens for streaming video. This concept was designed for viewing the outside world.
The interior, which uses recycled materials, is scant. There are pedals, a yoke for a steering wheel, a few buttons, and a smartphone attached to the steering column as a display and control center for vehicle functions and navigation.
The second row features seats that are designed to function like hammocks — and can be removed and used as mobile outdoor chairs.
Perhaps the most interesting feature is the inclusion of five rotorless electrically operated drones, which serve a variety of purposes. The drones, which have matrix LED lighting, can dock on the roof to get more power with the inductive charging elements.
Audi calls these drones Audi Light Pathfinders because of their ability to fly and illuminate the path ahead. These drones, Audi says replace headlights altogether. When the vehicle is parked, the drones can be used ti light up the surrounding area.
Occupants control the drones through their smartphones in this theoretical use case. The on-board cameras can generate a video image that can be transmitted to the display in front of the driver via Wi-Fi, turning the Pathfinders into “eyes in the sky,” Audi says.
2019 has been a breakout year for podcasting. According to Edison Research’s Infinite Dial report, more than half of Americans have now listened to a podcast, and an estimated 32% listen monthly (up from 26% last year). This is the largest yearly increase since this data started being tracked in 2008. Podcast creation also continues to grow, with more than 700,000 podcasts and 29 million podcast episodes, up 27% from last year.
Thanks to this growing listener base, big companies are finally starting to pay attention to the space — Spotify plans to spend $500 million on acquisitions this year, and already acquired content studio Gimlet, tech platform Anchor, and true crime network Parcast for a combined $400 million. In the past week, Google added playable podcasts to search results, Spotify released an analytics dashboard for podcasters and Pandora launched a tool for podcasters to submit their shows.
We’ve been going to Podcast Movement, the largest annual industry conference, for three years, and have watched the conference grow along with the industry — reaching 3,000 attendees in 2019. Given the increased buzz around the space, we were expecting this year’s conference to have a new level of energy and professionalism, and we weren’t disappointed. We’ve summarized five top takeaways from the conference, from why podcast ads are hard to scale to why so many celebrities are launching their own shows.
We’ve officially entered the age of celebrity podcasters. After early successes like “WTF with Marc Maron” (2009), Alec Baldwin’s “Here’s The Thing” (2011) and Anna Faris’ “Unqualified” (2015), top talent is flooding into the space. In 2017, 15% of Apple’s top 20 most-downloaded podcasts of the year were hosted by celebrities or influencers — this jumped to 32% of the top 25 in 2018. And of all the new shows that launched in 2018, 48% of the top 25 were celebrity-hosted.
Though podcasts are undermonetized compared to other forms of media, talent agents now consider them to be an important part of a well-rounded content strategy. Dan Ferris from CAA tells his clients to think of podcasting as a way of connecting with fans that is “much more intimate than social media.” Podcasts also help celebrities find a new audience. Ben Davis from WME said that while his client David Dobrik has a smaller audience on his podcast than on YouTube (1.5 million downloads per episode versus 6 million views per video), the podcast helps him reach a new group of listeners who stumble upon his show on the Apple Podcast charts.
While some podcast veterans grumble about the rise of celebrity talk shows, famous podcasters are good for the industry as a whole. Advertisers are drawn to the space by the opportunity to get to access A-list talent at lower prices. One recent example is Endeavor Audio’s fiction show “Blackout,” which starred Rami Malek, who was fresh off an Oscar win. Endeavor’s head of sales, Charlie Emerson, said brands might have to sign a “seven or eight-figure deal” to advertise alongside Malek’s content in other forms of media. Other podcasters also benefit from new listeners brought into the medium by their favorite stars — a Westwood One survey in fall 2018 found that 60% of podcast listeners report discovering shows via social media, where celebrities and influencers have huge existing audiences to push content to.
Paid listening apps represent a fairly small percentage of podcast listenership, with production platform Anchor estimating that Apple Podcasts and Spotify control more than 70% of listenership. A venture-backed company called Luminary is trying to change this — it raised $100 million to launch a “Netflix for podcasts” this spring. Consumers pay $7.99/month to access Luminary-exclusive shows alongside podcasts that are free on other apps. Because podcasts have RSS feeds, distributors like Luminary can easily grab free content and put it behind a paywall. The platform, not the creator, benefits from this monetization.
Within days of Luminary’s launch, prominent podcasters and media companies (The New York Times, Gimlet and more) requested their shows be removed from the app. It’s interesting to note that YouTube has a similar premium plan — for $11.99/month, users can access and download ad-free videos. Unlike Luminary, however, YouTube, pays creators a cut of the revenue from these subscriptions based on how frequently their content is viewed.
Unsurprisingly, creator sentiment is more positive toward platforms like Spotify and Pandora . Though these companies do make money from premium subscribers who listen to podcasts, creators can choose whether or not to submit their shows. And podcasters benefit from making their shows discoverable to the existing user base of these platforms, which already dominate “earshare.” Spotify alone has 232 million MAUs, which dwarfs the 90 million people in the U.S. who listen to a podcast monthly.
Podcast ad revenue has been scaling quickly, with $480 million in spend last year and a projected $680 million this year. Over the past four years, ad revenue has scaled at a 65% CAGR, and this growth is expected to continue. In its early days, the podcast ad market has largely been driven by D2C brands — you’ve probably heard hundreds of Casper, Blue Apron and Madison Reed ads. However, bigger brands are also starting to enter podcasting (Geico, Capital One and Progressive made the top 10 list for June 2019) due to the growing audience scale and increased precision around targeting and attribution.
While many attendees were excited by the massive growth in ad revenue, others worried that it may kill what makes podcasting special. They’re particularly concerned that podcasts may go the way of online video, with annoying, generic, low CPM ads. Podcast hosts typically read their own ads, and are often true fans of the product — they share personal stories instead of reciting brand talking points. This results in premium CPMs compared to most digital media — AdvertiseCast’s 2019 survey found an average CPM of $18 for a 30-second podcast ad and $25 for a 60-second ad, more than 2x the average CPM on other digital platforms.
While these ads are effective, they’re time-consuming and expensive to produce. Big brands interested in podcast ads often expect to reuse radio spots — they aren’t used to the process of crafting and approving a host-read ad that may only reach 10,000 listeners. Podcasters, meanwhile, value their trust with listeners and don’t want to spam them with loud, unoriginal radio ads. The tension between maintaining the quality of ads while scaling quantity was an underlying theme of most monetization discussions, and industry veterans disagree on how it will play out.
Despite the growth in ad revenue and relatively high CPMs, the industry is significantly undermonetized. Using data from Nielsen, IAB and Edison, we calculated that podcasts monetize through advertisements at only $0.01 per listener hour — less than 10 times the rate of radio. Podcast monetization per listener hour has increased over the past year, up 25% by our calculations, but still substantially lags all other forms of media.
Why are podcasts so undermonetized? Unlike many other forms of media, the dominant distribution platform (Apple Podcasts) has no ad marketplace. Creators have historically had to approach brands themselves or sign with podcast networks to construct custom ad deals, and the “long tail” of podcasters were unable to monetize. This is finally changing. Anchor, which reported in January that it powers 40% of new podcasts, has an ad marketplace that has doubled the number of podcasts that are running ads. Other popular platforms like Radio Public have launched programs for small podcasters to opt-in to ad placements.
The second major hurdle in monetization is attribution. Podcasts have historically monetized through direct response campaigns — a podcaster provides a special URL or promo code for listeners to use when making a purchase. However, many people listen to podcasts when exercising or driving, and can’t write down the promo code or visit the URL immediately. These listeners might remember the product and make a purchase later, but the podcaster won’t get the attribution. Thomas Mancusi of Audioboom estimated that this happens in 50-60% of purchases driven by podcast ads.
Startups are trying to bring better adtech into podcasting to fix this issue. Chartable is one example — the company installs trackers to match a listener’s IP address with a purchaser’s IP address, allowing podcasters to claim attribution for listeners who don’t use their URL or promo code. Chartable currently runs on 10,000 shows, and the early results are so promising that ad agencies expect to see higher CPMs and significantly more spend in the space.
As podcasting grows, the listener base is diversifying. Edison Research looked into data on “rookie” listeners (listening for six months or less) and “veteran” listeners (listening for 3+ years), and found significant demographic differences. Only 37% of veterans are female, compared to 53% of rookies. While the plurality of veterans (43%) are age 35-54, 54% of rookies are age 12-34. Rookies are also 1.6x more likely to say they most often listen to podcasts on Spotify, Pandora or SoundCloud (43% versus 27% of veterans). And social media is an important way that rookies discover podcasts — 52% have found a podcast from video and 46% from audio on social media, compared to 41% and 37% for veterans.
These new listeners will have a profound impact on the future of podcasting, in both the type of content produced and the way it’s distributed. Industry experts are already noting significant new demand for female-hosted podcasts, as well as audio dramas that appeal to young people looking for a fast-paced, suspenseful story. They’re advising podcasters to share clips of their content on social media, and to leverage broader listening platforms like YouTube and SoundCloud for distribution.
International markets also represent an enormous opportunity for growth. Most podcast listeners today live in the U.S. or China, but content producers are starting to see significant demand elsewhere. Castbox’s Valentina Kaledina said that many fans abroad have resorted to listening in their non-native language, with the top 100 shows in each country comprising a mix of English and local language. Adonde Media’s Martina Castro, who recently conducted the first listener survey on Spanish-language podcast fans, said that 53% of the survey’s 2,100 respondents reported listening to podcasts in English — and only 20% of them use Apple Podcasts.
Larger podcast producers are beginning to translate shows for non-English-speaking markets. Wondery CEO Hernan Lopez announced at the conference that the company’s hit show Dr. Death is now available in seven languages. Lopez noted that it was an expensive process, and he doesn’t expect the shows to generate profit in the near future. However, he believes that Wondery will eventually see a significant return from investing in the development of new podcast markets — and if they do, other podcast companies will likely follow in their footsteps.
The 2019 Audi e-tron has become the first battery-electric vehicle to earn a top safety rating from the Insurance Institute for Highway Safety, an achievement that Tesla and other electric models like the Chevy Bolt have not been able to capture.
Scoring an IIHS top safety award isn’t easy. A vehicle has to earn good ratings in six crashworthiness evaluations, as well as an advanced or superior rating for front crash prevention and a good headlight rating.
IIHS said Wednesday that the e-tron fulfills the criteria to earn a top safety rating with standard equipment. The vehicle performed well in crashworthiness testing, earning good ratings in the driver-side small overlap front, passenger-side small overlap front, moderate overlap front, side, roof strength and head restraint tests, according to IIHS.
The SUV’s standard front crash prevention system rated superior in IIHS track tests. It avoided a collision in the 25 mph test and reduced its impact speed by an average of 11 mph in the 12 mph test. Its forward collision warning component meets National Highway Traffic Safety Administration criteria.
The award provides a much needed boost to the e-tron. There’s a lot riding on the e-tron, the German automaker’s first mass-produced electric vehicle. And while TechCrunch’s Matt Burns found it quick, comfortable and familiar, the vehicle has had a rocky start that included a voluntary recall in the U.S. due to the risk of battery fire.
Tesla has gotten close to the top safety pick designation. A Tesla Model S was tested in 2017 and performed well, but fell short of earning the top score due to poor headlights and an “acceptable” score in the small overlap crash test. The IIHS has never tested the Tesla Model X.
The electric automaker does have another chance. This time, it’s with the Tesla Model 3, which IIHS is currently testing, according to a recent tweet from the organization.
Tests of the 2019 Tesla Model 3 commence next week with the side crash test. pic.twitter.com/yXtbGDC9h9
— IIHS (@IIHS_autosafety) August 7, 2019
The Model 3 has already achieved an all-around five-star safety rating from the National Highway Traffic Safety Administration. Despite the high marks, NHTSA and Tesla have tussled over how the automaker has characterized the rating in an October 7 blog post when it said the Model 3 had achieved the lowest probability of injury of any vehicle the agency ever tested.
Earlier this month, Hyundai’s hydrogen fuel cell SUV, the Nexo, became the first fuel cell vehicle to be tested and to earn IIHS’s top safety award.
As companies collect increasingly large amounts of data about customers, the end game is about improving the customer experience. It’s a term we’re hearing a lot of these days, and we are going to be discussing that very topic with Amit Ahuja, Adobe’s vice president of ecosystem development, next month at TechCrunch Sessions: Enterprise in San Francisco. Grab your early-bird tickets right now – $100 savings ends today!
Customer experience covers a broad array of enterprise software and includes data collection, analytics and software. Adobe deals with all of this including the Adobe Experience Platform for data collection, Adobe Analytics for visualization and understanding and Adobe Experience Cloud for building applications.
The idea is to begin to build an understanding of your customers through the various interactions you have with them, and then build applications to give them a positive experience. There is lots of talk about “delighting” customers, but it’s really about using the digital realm to help them achieve what they want as efficiently as possible, whatever that means to your business.
Ahuja will be joining TechCrunch’s editors along with Qualtrics chief experience officer Julie Larson-Green and Segment CEO Peter Reinhardt to discuss the finer points of what it means to build a customer experience, and how software can help drive that.
Ahuja has been with Adobe since 2005 when he joined as part of the $3.4 billion Macromedia acquisition. His primary role today involves building and managing strategic partnerships and initiatives. Prior to this, he was the Head of Emerging businesses and the GM of Adobe’s Data Management Platform business, which focuses on advertisers. He also spent 7 years in Adobe’s Corporate Development Group where he helped complete the acquisitions of Omniture, Scene7, Efficient Frontier, Demdex and Auditude.
Amit will be joining us on Sept 5 in San Francisco along with some of the biggest influencers in enterprise including Bill McDermott from SAP, Scott Farquhar from Atlassian, Aparna Sinha from Google, Wendy Nather from Duo Security, Aaron Levie from Box and Andrew Ng from Landing AI.
Early-bird savings end today, August 9. Book your tickets today and you’ll save $100 before prices go up.
Bringing a group? Book our 4+ group tickets and you’ll save 20% on the early-bird rate. Bring the whole squad here.
The Los Angeles-based syndicated podcasting platform, which counts athletes, politicians, talk radio, and reality television stars like Adam Carolla, Shaquille O’Neal, Steve Austin, Kaitlyn Bristowe, Dan Patrick, Spencer and Heidi Pratt, Jim Harbaugh, Ladygang, Dr. Drew, Chael Sonnen, Rich Eisen, Barbara Boxer, is angling to get insight into potential new talent through the venture.
“We will see which podcasts are performing well and offer them the opportunity to partner and grow with PodcastOne, and provide them with all the resources the network offers, including production, talent booking, promotion, a dedicated sales team and more,” said PodcastOne chief executive, Peter Morris, in a statement. “As the leading ad-supported podcast network, we are embracing the over 700,000 podcasts out there, and are here to support the long-term growth of independent podcasters.”
Called Launchpad Digital Media, the new hosting service is pitching podcasters a free platform including unlimited hosting; access to analytics including listenership, geography, and device data; total ownership of direct monetization channels for a podcast’s subscriber base, and complete control over how podcasts are distributed via Apple, Spotify or other services.
The company is also billing itself as a discovery platform, offering free promotion for the services various podcasts across its own network of popular podcasting talent.
“Over the years, people have shared with us how hard it can be out there in the desert of independent podcasting: you have to pay to host and get your podcast heard; you get no help in discoverability; you’re scared to leave and stop paying your hosting platform because you might lose your subscribers; and it’s virtually impossible to get noticed by a major podcast network who can help you take your hard work to the next level,” said Morris, in a statement. “Launchpad was built with the independent podcaster in mind. We wanted to help solve these problems… for free.”
Since nothing is actually free, and since PodcastOne wants to get paid, the catch is the company’s own ability to insert pre- and mid-roll advertising into podcasts that are hosted on the new service.
So podcasters can manage their direct advertising, but they give PodcastOne the ability to slot in ads that the company chooses across any of the podcasts that agree to be hosted on the service. It gives the company access to both marquee talent for high value, big spending advertisers, and a way to flood other podcasts with whatever ads the company wants.
Ads that LaunchpadDM inserts won’t be longer than two total minutes per episode and podcasters can determine the location of the midroll spot when uploading the episode.
Electric scooters are inundating cities, and for good reason. They’re relatively easy to use, accessible, cheap and even a fun means of traveling short distances. And yet, scooters aren’t infallible.
For one, it’s nearly impossible to use hand signals, a problem that jacks up the danger factor of these increasingly popular devices. Audi introduced an electric scooter Monday that could solve that problem.
The Audi e-tron scooter — a name that matches the German automaker’s all-electric SUV — combines a traditional electric scooter with the machinations of a skateboard. The scooter isn’t cheap; it’s priced at €2,000 ($2,244 on today’s exchange rate). And it sounds a bit more complicated to use. Users control the scooter like a skateboard with their feet by shifting their weight.
The scooter, which weighs 26 pounds and can be folded up or pulled like a trolley, has movable axles with four wheels for making tight turns.
Audi says using the scooter is like “surfing waves.” Setting this grandiloquent description aside, the scooter does allow for one-handed use, which should make it a lot safer. The one-handed design allows users to signal to cars, pedestrians and cyclists when they’re stopping or making a left or right turn.
This isn’t the only scooter that can be used with one hand. The Boosted scooter recently reviewed here at TechCrunch can be navigated with one hand. Still, the design feature is an exception, not the rule in scooterland.
The steering handle opens up this product to people whose skateboarding skills are lacking. The stem of the handle is also where the battery and electronics are stored and how riders accelerate and brake. A display at the base of the handle shows how much range is left in the battery.
The e-tron scooter might be easy to maneuver and safer to use, but with a top speed of 12.5 miles per hour, it could turn off potential customers.
The scooter has a range of 12.5 miles and uses regenerative braking, which can lengthen its range. It also comes with a hydraulic foot brake and LED lights, including a headlight, daytime running light, rear light and brake light.
Production and sales to private customers are planned for late 2020. Audi hinted that the scooter could be used in fleets or be provided to customers who buy its e-tron model electric vehicles. The e-scooter will be able to be charged in the car trunk through a dedicated socket.
Africa’s mobile phone industry has in recent times been dominated by Transsion, a Shenzhen-based company that is little known outside the African continent and is gearing up for an initial public offering in China. Now, its Chinese peer Vivo is following its shadow to this burgeoning part of the world with low-cost offerings.
Vivo, the world’s fifth-largest smartphone maker, announced this week that it’s bringing its budget-friendly Y series smartphones into Nigeria, Kenya and Egypt; the line of products is already available in Morocco.
It’s obvious that Vivo wants in on an expanding market as its home country China experiences softening smartphone sales. Despite a global slowdown, Africa posted annual growth in smartphone shipments last year for the first time since 2015 thanks in part to the abundance of entry-level products, according to market research firm IDC.
Affordability is the key driver for any smartphone brands that want to grab a slice of the African market. That’s what vaulted Transsion into a top dog on the continent where it sells feature phones for less than $20. Vivo’s Y series smartphones, which are priced as little as $170, are vying for a place with Transsion, Samsung and Huawei that have respective unit shares of 34.3%, 22.6% and 9.9% in Africa last year.
The Middle East is also part of Vivo’s latest expansion plan despite the region’s recent slump in smartphone volumes. The Y series, which comes in several models sporting features like the 89% screen-to-body ratio or the artificial intelligence-powered triple camera, is currently for sale in the United Arab Emirates and will launch in Saudi Arabia and Bahrain in the coming months.
“Since our first entry into international markets in 2014, we have been dedicated to understanding the needs of consumers through in-depth research in an effort to bring innovative products and services to meet changing lifestyle needs,” said Vivo’s senior vice president Spark Ni in a statement.
“The Middle East and Africa markets are important to us, and we will tailor our approach with consumers’ needs in mind. The launch of Y series is just the beginning. We look forward to bringing our other widely popular products beyond Y series to consumers in the Middle East and Africa very soon,” the executive added.
Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I noted some challenges plaguing mental health tech startups. Before that, I wrote about Zoom and Superhuman’s PR disasters.
Anyway, onto the subject on everyone’s mind this week: SoftBank’s second Vision Fund.
Well into the evening on Thursday, SoftBank announced a target of $108 billion for the Vision Fund 2. Yes, you read that correctly, $108 billion. SoftBank indeed plans to raise even more capital for its sophomore vehicle than it did for the record-breaking debut vision fund of $98 billion, which was majority-backed by the government funds of Saudi Arabia and Abu Dhabi, as well as Apple, Foxconn and several other limited partners.
Its upcoming fund, to which SoftBank itself has committed $38 billion, has attracted investment from the National Investment Corporation of National Bank of Kazakhstan, Apple, Foxconn, Goldman Sachs, Microsoft and more. Microsoft, a new LP for SoftBank, reportedly hopped on board with the Japanese telecom giant as part of a grand scheme to convince the massive fund’s portfolio companies to transition to Microsoft Azure, the company’s cloud platform that competes with Amazon Web Services . Here’s more on that and some analysis from TechCrunch editor Jonathan Shieber.
News of the second Vision Fund comes as somewhat of a surprise. We’d heard SoftBank was having some trouble landing commitments for the effort. Why? Well, because SoftBank’s investments have included a wide-range of upstarts, including some uncertain bets. Brandless, a company into which SoftBank injected a lot of money, has struggled in recent months, for example. Wag is said to be going downhill fast. And WeWork, backed with billions from SoftBank, still has a lot to prove.
Here’s everything else we know about The Vision Fund 2:
On to other news…
The company made headlines again this week after word slipped it was accelerating its IPO plans and targeting a September listing. We don’t know much about its IPO plans yet as we are still waiting on the co-working business to unveil its S-1 filing. Whether WeWork can match or exceed its current private market valuation of $47 billion is unlikely. I expect it will pull an Uber and struggle, for quite some time, to earn a market cap larger than what VCs imagined it was worth months earlier.
The consumer financial app made headlines twice this week. The first time because it raised a whopping $323 million at a $7.6 billion valuation. That is a whole lot of money for a business that just raised a similarly sized monster round one year ago. In fact, it left us wondering, why the hell is Robinhood worth $7.6 billion? Then, in a major security faux pas, the company revealed it has been storing user passwords in plaintext. So, go change your Robinhood password and don’t trust any business to value your security. Sigh.
While we’re on the subject on fintech, TechCrunch editor Danny Crichton noted this week the rise of mega-rounds in the fintech space. This week, it was personalized banking app MoneyLion, which raised $100 million at a near unicorn valuation. Last week, it was N26, which raised another $170 million on top of its $300 million round earlier this year. Brex raised another $100 million last month on top of its $125 million Series C from late last year. Meanwhile, companies like payments platform Stripe, savings and investment platform Raisin, traveler lender Uplift, mortgage backers Blend and Better and savings depositor Acorns have also raised massive new rounds this year. Naturally, VC investment in fintech is poised to reach record levels this year, according to PitchBook.
Arianna Huffington, the CEO of Thrive Global, stepped down from Uber’s board of directors this week, a team she had been apart of since 2016. She addressed the news in a tweet, explaining that there were no disagreements between her and the company, rather, she was busy and had other things to focus on. Fair. Benchmark’s Matt Cohler also stepped down from the board this week, which leads us to believe the ride-hailing giant’s advisors are in a period of transition. If you remember, Uber’s first employee and longtime board member Ryan Graves stepped down from the board in May, just after the company’s IPO.
Today I told my fellow @Uber board members that given @Thrive's growth, I will no longer be able to give my board duties the attention they deserve, so I will be stepping down. I look forward to watching Uber go from strength to strength! Here is the email I sent to the board: pic.twitter.com/sck0CPLwAV
— Arianna Huffington (@ariannahuff) July 24, 2019
Unity, now valued at $6B, raising up to $525M
Bird is raising a Sequoia-led Series D at $2.5B valuation
SMB payroll startup Gusto raises $200M Series D
Elon Musk’s Boring Company snags $120M
a16z values camping business HipCamp at $127M
An inside look at the startup behind Ashton Kutcher’s weird tweets
Dataplor raises $2M to digitize small businesses in Latin America
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If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Equity co-host Alex Wilhelm, TechCrunch editor Danny Crichton and I unpack Robinhood’s valuation and argue about scooter startups. Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple Podcasts, Overcast and Spotify.
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The rumored involvement of Microsoft in financing SoftBank Vision Fund II (electric boogaloo?) is interesting for what it may indicate about how the relationship between venture investors, startups and the large corporations that dominate the tech industry are changing.
If the name of the game is platform and services, then corporate behemoths like Microsoft, Alphabet, Amazon and Apple are in interesting positions to invest in startups as a flywheel for growth in some of their most profitable and strategic business units.
To some extent this has always been true, but it’s becoming more important now as web services become larger slices of the corporate balance sheet at these three companies (particularly — although IBM is also playing in this game). Basically, like corporate accelerators and venture arms, investing in SoftBank is another service that’s being potentially offered to lock in startups to corporate cloud ecosystems.
While there are no guarantees that a nudge from an investor to use one tech platform for web services over another would make any difference, it’s clear that big tech companies like Amazon, Alphabet and Microsoft are all over startups to use one web stack over another.
Amazon has tied itself ever more tightly to the Techstars ecosystem of incubators for new tech companies, Microsoft has its own corporate accelerator programs and investment arm and Alphabet does the same.
As technology continues to advance, the big companies have more services they can offer to tech companies that will be increasingly more compelling and drive increasing revenue.
All three big companies mentioned above (and even IBM, bless its big blue non-existent heart) have machine learning tools that they’d love to provide as a service to startups as well. And even as IBM sunsets Watson as a balance sheet item (an event that was an elementary conclusion to anyone who has tracked its long, slow spiral), machine learning services are going to become a larger slice of revenue for the providers who can effectively tie startups into those services.
Most entrepreneurs pay lip service to the fact that enhanced algorithms are going to become table stakes in new product offerings so observers can watch that become another engine of growth for the big companies that can get it right.
Also, startups are going to increasingly become a sales channel for big tech, even as big tech has traditionally been a sales channel for startups.
Software as a service businesses using a freemium business model have an easier time getting into a corporate environment than Microsoft or Google . And even as the productivity suites from these companies battle it out (Verizon, FWIW, is team Google for now), some of the money flowing to a SaaS company’s coffers from a big corporate entity will ultimately wind up in either Microsoft, Amazon or Alphabet’s returns.
This model also helps venture investors, who now have more assurance that there will be late-stage capital to bolster their businesses (including really, really bad ones), although most traditional firms have a love-hate relationship with Masayoshi Son’s gargantuan investment vehicle.
Finally, there’s the simple fact that divorcing SoftBank from Saudi Arabia’s journalist-killing murder money is a good thing for the firm and the larger technology industry, which has enough moral conundrums to consider without adding to the mix another problematic geopolitical relationship.
Sonos and Ikea’s Symfonisk collaboration took a lot of people by surprise when it was announced earlier this year, but the match up is less unlikely than it might appear at first glance. Ikea’s entire mission has been delivering practical, quality design concepts at price points that are more broadly accessible – and that’s exactly what it’s done with its collaboration with Sonos, albeit with sound instead of furniture. The new $99 Symfonisk WiFi bookshelf speaker, and the new $179 Symfonisk table lamp with WiFi speaker both deliver the excellent performance and sound quality that’s expected from the Sonos brand, in beguilingly practical everyday designs created by Ikea.
Symfonisk bookshelf speaker
The descriptor “bookshelf speaker” in this case means more than it usually does – Ikea has designed these to either blend seamlessly in with hour actual book collection on existing shelf units, or to actually act as shelves themselves, using a simple add-on accessory kit that includes a flush wall mount and a rubber matt to protect its top surface while holding your gear (up to 6.6 lbs). They can also rail-mount on Ikea’s kitchen rail products for convenient kitchen installation, or they have rubberized pads on both the bottom and side surfaces for either horizontal or vertical surface mounting. Each speaker has two channels for cables to exit both vertically and horizontally for flush mounting, and there’s an Ethernet port on each and a cable in the box for hardwired connections to your home network.
At $99, they’re the new most affordable way to get into the Sonos system, undercutting the Play:1 by $50. Leaving aside their utility as free-floating shelves (with a decent 12″ x 6″ surface area, likely suitable for bedside tables for many), they’re a perfect introduction to the Sonos ecosystem for anyone who’s felt that Sonos hardware is too expensive. And they’re almost tailor-made to act as rear speakers in a Sonos surround sound home theater configuration. I paired mine with my existing Sonos Beam sounder and Sonos Sub, and they delivered to the point where you’d be hard-pressed to tell the difference between the Symfonisk bookshelves and the Play:1 operating in that capacity.
That said, you do notice a difference between the Symfonisk bookshelf and the Play:1, or the Sonos One, when it comes to sound quality when they’re used on their own as individual or stereo-paired speakers. The bookshelf speakers contain entirely new internal speaker designs, since the form factor is nothing like any existing Sonos hardware on the market, and that means you end up with a different sound profile vs. the more squat, rotund Sonos One and Play:1.
To my ears, the Symfonisk bookshelf speaker sounds slightly worse when compared to the Sonos One and Play:1. This is not that surprising – those Sonos speakers are more expensive, for one, and they really out punch their weight class when it comes to overall sound quality. And even if the Symfonisk shelves are not quite up to par, they’re still excellent sounding wireless speakers for their price – without a doubt I would opt to pick these up in place of Play:1s for parts of my house where I don’t need the built-in Alexa or Google Assistant of the Sonos One, but want high-fidelity sound. In stereo pair configuration, the difference is even less noticeable.
The Symonisk shelf speaker design seems mostly focused on practicality, but it’s a good looking speaker (available in both black, as tested, and white). The rectangular box look is a bit harder to integrate as flexibly with your decor when compared to the Sonos One, in my opinion, but on the other hand there are some settings where the Symfonisk shelf fits far more seamlessly, like when wall mounted behind a couch to act as rears, or when acting as bookend on an existing bookshelf. The fabric speaker grill is removable, and you can expect Sonos to look at aesthetic updates to potentially change the look in future, too.
Because these are wireless speakers, there’s another aspect of performance that’s important: connectivity. Symfonisk’s speakers (both these and the table lamp, which I’ll talk more about later on) worked flawlessly during my multiple days of testing in this regard, with zero drop-outs that I noticed when it came to music playback, and flawless integration with my existing Sonos network of speakers. I’m also likely one of Sonos’ outlier customers in terms of the number of speakers I’m using – I have 14 active currently, including the Symfonisk speakers, all operating fully wireless and without the included Ethernet connection, and wireless playback has been rock solid during tests of this new Ikea line.
Set up is also a breeze, whether you’re new to Sonos or an existing user, and is handled via the Sonos app (Ikea will also eventually add it to its own smart home control software, the company tells me, and you’ll be able to control it from both). Once added to your app, you can also use them via Alexa or Google Assistant if you have those linked to your Sonos system, and they show up as AirPlay 2 speaker for iOS and macOS users, too.
Symfonisk table lamp speaker
Like the bookshelf speaker, the Symfonisk table lamp is incredibly easy to setup and manage using the Sonos app, and works with Alexa/Google Assistant and AirPlay 2. It was also outstanding in terms of performance with wireless connection and working with other speakers, and you can use Sonos’ TruePlay sound tuning feature to ensure that it provides the right sound profile for your space with a quick adjustment process using your phone’s microphone (this also works with the shelf speakers, by the way, and I recommend it for any Sonos equipment).
The table lamp really impresses in two ways, including sound quality and – this might seem obvious – by virtue of it also being a great lamp as well as a speaker. The base of the lamp is where the speaker resides, and it’s wrapped in a removable fabric cover that looks great from afar and up close. The shade is a single piece of handcrafted opaque glass, which provides a very pleasant glow when lit from within, and which uses a bayonet mount to lock into place.
This mount and shade choice are not just about looks – Sonos and Ikea evaluated different options and found that this was easily the best when it came to minimizing reverb and rattle for a lamp that’s also capable of outputting a lot of high-volume sound. The choice appears to have been the good one – in testing, I never noticed anything that suggested there was anything rattling or shaking around as a result of even loud music being played through the Symfonisk lamp speaker.
As mentioned, the looks benefit from this design decision, too. This table lamp at first struck me as maybe a bit too modern in photos, but in situ it looks great and is easily now a favorite item among my overall home decor. I do have a few small complaints, like that the large dial on the side is actually a simple on/off switch, rather than a dimmer or a volume knob like I assumed it would be. The controls are on the front of the saucer-like base instead, which is a clever way to make the lamp look less like a gadget and more like furniture.
The light itself supports bulbs with E12-style threaded connectors and a max of 7 watts of energy consumption, which are more commonly seen in chandeliers. Ikea sent over one of its Tradfri smart bulbs, with wireless connectivity and adjustable white spectrum temperature control. It’s the perfect complement to the lamp, and I was even able to quickly connect it to my existing Philips Hue hub for control without an Ikea smart bridge. With a smart bulb, the Symfonisk speaker lamp offers voice-control for both the lightning and the speaker component.
Where the Symfonisk shelf speaker differs from its Sonos brethren a bit in sound profile, the Symfonisk lamp speaker is surprisingly similar to the Play:1 ($149) and Sonos One ($199) and sits right in between both at $179. The internals are largely leveraged from those devices, according to Sonos, which makes sense given its industrial design is also basically a somewhat squat cylinder. Regardless of how, the result is terrific – it’s a lamp that’s actually a fantastic speaker, and you can definitely pull a trick at parties of asking guests to try to figure out the source of your high-quality, room filling sound if you pick one or more of these up. As rears, they blend away seamlessly with the decor, solving the age-old problem of having to choose between quality surround sound and having a living room that doesn’t look like a Hi-Fi audio shop.
The Symfonisk lamp is big, however – it’s about two inches taller than a Sonos One without the shade, and wider both in terms of the base and the saucer-like bottom. The look, while appealing to me, also isn’t necessarily for everyone (though there are black and white versions depending on your preference) so that might be another reason to opt for other offerings in the Sonos line vs. this one. But this particular light/Sonos speaker combo is unique in the market, and definitely a strong value proposition.
With the Symfonisk line, Ikea and Sonos have really pulled off something fairly amazing – creating practical, smart decor that’s also great audio equipment. It’s a blending of two worlds that results in very few compromises, and stands as a true example of what’s possible when two companies with a focus on human-centric design get together and really focus on establishing a partnership that’s much deeper than two names on a label.
Sonos and Ikea’s team-up isn’t just a limited collection, either – it’s a long-term partnership, so you can expect more from both down the road. For now, however, the Symfonisk bookshelf and Symfonisk table lamp speakers go on sale starting August 1 at Ikea.com and Ikea’s stores, and are very good options if you’re in the market for a smart speaker.
SoftBank is said to be preparing the announcement of a $40 billion investment in its second Vision Fund, according to a new report from The Wall Street Journal. News of the mammoth investment comes after weeks of rumors the Japanese telecom giant was struggling to secure capital for its second fund, citing lukewarm reception from investors of the firm’s initial Vision Fund.
SoftBank declined to comment.
Goldman Sachs and Standard Chartered are amongst the first confirmed investors in the second Vision Fund. SoftBank is reportedly in talks with Microsoft to invest in the fund under the condition that SoftBank encourage its portfolio companies to transition away from Amazon Web Services to Microsoft’s Azure, the company’s cloud platform. Microsoft declined to comment.
The Department of Justice is set to announce its approval of T-Mobile’s merger with Sprint, majority-owned by SoftBank, as soon as this week. Once the merger is confirmed, SoftBank is expected to deploy additional capital to its sophomore Vision Fund.
The debut SoftBank Vision Fund, led by SoftBank CEO Masayoshi Son, has been making headlines since plans for the massive vehicle were announced in late 2016. In May 2017, the firm held a first close on $93 billion, later increasing the fund’s size to $98 billion. The fund has a general focus on global tech companies across industries including IoT, AI, robotics, mobile applications & computing, cloud technologies & software, consumer tech and fintech. To date, it’s invested large sums in Brandless, WeWork, Ola, Grab, Didi Chuxing, Uber, Lemonade and several others.
The debut fund’s largest investors are Saudi Arabia’s sovereign wealth fund and Abu Dhabi’s national wealth fund, a fact that’s ignited a debate across Silicon Valley on the ethics of accepting capital from Saudi Arabia, a country responsible for numerous human rights abuses. Apple, Qualcomm and Foxconn Technology are among the first Vision Fund’s other LPs.
TechCrunch Sessions is heading to San Jose on July 10 — just a few days from now — to dig into the future (and present) of transportation.
The agenda at TC Sessions: Mobility is packed with startups and giants in the tech industry. TechCrunch has brought together some of the best and brightest minds working on autonomous vehicle technology, micromobility and electric vehicles, including Dmitri Dolgov at Waymo, Karl Iagnemma of Aptiv, Seleta Reynolds of the Los Angeles Department of Transportation, Ford Motor CTO Ken Washington, Katie DeWitt of Scoot and Argo AI’s chief security officer, Summer Craze Fowler.
It wouldn’t be a TechCrunch Sessions without an up-close look and demonstration of the tech. Alongside the speakers, TC Sessions: Mobility will have several demos, including the unveiling of one startup currently in stealth.
The demos will begin with Holoride, the startup that spun out of Audi that aims to bring a VR experience to the backseat of every car, no matter if it’s a Ford, Mercedes or Chrysler Pacifica minivan. Later in the day, check out Damon X Labs, a company aiming to make motorcycles safer with a system that anticipates accidents and warns the rider.
Finally, the day will wrap up with a Michigan-based startup coming out of stealth. We can’t say much yet, but this startup will show off its approach to getting things to people — even in winter.
The Tesla Model S vehicle fire that occurred in Shanghai this past April, prompting international media attention, was caused by a single battery module and is not a system defect, the company said Friday.
Tesla provided the update on the cause of the fire in a post Friday on its Weibo social media account. A team of investigators analyzed the battery, vehicle history, software and manufacturing data. The fire was caused by a single battery module at the front of the vehicle, Tesla said.
The company has issued a software update that will change battery charge and thermal management settings in Model S sedans and Model X SUVs.
This software update was first announced in May following the company’s investigation into another Model S fire in Hong Kong. In that incident, a Tesla Model S caught fire March 14 while parked near a Hong Kong shopping mall. The vehicle was sitting for about a half an hour before it burst into flames. Three explosions were seen on CCTV footage.
Tesla said, at the time, that the software update was being done out of “an abundance of caution.” The update is supposed to “protect the battery and improve its longevity.” The over-the-air software update will not be made to Model 3 vehicles.
The company added that while the probability of a Tesla electric vehicle fire is lower than a gasoline-powered vehicle, it takes any incident seriously.
Two other companies, Chinese automotive startup Nio and Audi, have issued recalls to due to risk of battery fire. In Audi’s case, there hasn’t been any reported fires. But the company went ahead and issued a voluntary recall in the U.S. for the E-Tron SUV after it found that moisture can seep into the battery cell through a wiring harness. There have been five cases worldwide where this has caused a battery fault warning.
Nio is grappling with a design issue in an older battery pack module. The company, which began deliveries of its ES8 SUV in June 2018, is recalling nearly 5,000 of the vehicles after a series of battery fires in China and a subsequent investigation revealed a vulnerability that created a safety risk.
A Nio-led team of experts that included the supplier of the battery pack module, investigated a reported fire involving an ES8 in Shanghai. The team concluded there was a vulnerability in the design of the battery pack that could cause a short circuit. In this case, battery packs in the vehicles involved were equipped with a module specification NEV-P50.
Vehicles with 70kWh battery packs produced after October 20, 2018 are equipped with the NEV-P102 modules and have different internal structural designs. These packs don’t have the same risk, Nio said.
Chinese automotive startup Nio is recalling nearly 5,000 of its ES8 high-performance electric SUVs after a series of battery fires in China and a subsequent investigation revealed a vulnerability that created a safety risk.
The recall affects a quarter of the ES8 vehicles it has sold since they went on sale in June 2018.
A Nio-led team of experts that included the supplier of the battery pack module, investigated a reported fire involving an ES8 in Shanghai. The team concluded there was a vulnerability in the design of the battery pack that could cause a short circuit.
The battery packs in the vehicles involved were equipped with a module specification NEV-P50. These packs were pressing up against voltage sampling cable harness due to improper positioning, Nio said. The insulation on the cable may wear out due to this repeated contact and cause a short circuit, Nio determined.
Nio said other ES8 vehicles that have experienced issues had the same battery pack.
The recall affects 4,803 models produced from April 02, 2018 to October 19, 2018 that are equipped with NEV-P50 batteries. The company will be replace the battery packs, a process that could take up to two months.
All NEV-P50 batteries in the battery swap network will also be replaced to ensure, Nio said.
Vehicles with 70kWh battery packs produced after October 20, 2018 are equipped with the NEV-P102 modules and have different internal structural designs. These packs don’t have the same risk, Nio said.
The recall comes at an inauspicious time for Nio. Nio began deliveries of the ES8 in China in June 2018. And while deliveries initially surpassed expectations, they have since slowed in 2019. The company reported loss of $390.9 million in the first quarter.
Nio said it would shift its vehicle production plans, reduce in R&D spending and cut to its workforce by 4.5% in response to the weak quarter.
Other automakers with electric vehicles have issued recalls over fire risk. Earlier this month, Audi issued a voluntary recall in the U.S. for the E-Tron SUV due to the risk of battery fire. No fires had been reported in the 1,644 E-Trons that Audi has sold. The company issued the recall after it found that moisture can seep into the battery cell through a wiring harness. There have been five cases worldwide where this has caused a battery fault warning.
In May, Tesla started pushing out a software update that will change battery charge and thermal management settings in Model S sedans and Model X SUVs following a fire in a parked vehicle in Hong Kong. The software update, which Tesla said at the time was being done out of “an abundance of caution,” is supposed to “protect the battery and improve its longevity.” The over-the-air software update will not be made to Model 3 vehicles.