Local TV streaming service Locast has closed up shop, at least for the time being. It suspended operations following a ruling on Tuesday that it couldn’t use its non-profit status as a legal shield. Networks have claimed that Locast violated their copyright.
“We are suspending operations, effective immediately,” Locast wrote in an email to users. “As a non-profit, Locast was designed from the very beginning to operate in accordance with the strict letter of the law, but in response to the court’s recent rulings, with which we respectfully disagree, we are hereby suspending operations, effective immediately.”
The court also took issue with the $5/month payments Locast took from users to ostensibly cover running costs. A judge said Locast was using those funds to expand into more markets and that it was bringing in “far more money from user charges than was necessary.”
Editor’s note: This post originally appeared on Engadget.
The global startup community is currently enjoying a period of fundraising success that may be unprecedented in the history of technology and venture capital. While this is happening around the world, few startup hubs in the world are reveling in a greater boost to their ability to attract capital than Boston.
The well-known U.S. city is a traditional venture capital hub, but one that seemed to fall behind its domestic rivals Silicon Valley and New York City in recent years. However, data indicates that Boston’s startup activity in fundraising terms has reached a new, higher plateau, funneling record sums into the city’s upstart technology companies this year.
And, according to local investors, there could be room for further acceleration in capital disbursement.
The Exchange explores startups, markets and money.
The Exchange wanted to better understand what’s driving Boston’s rapid-fire results, and discover if there is any particular need for caution or concern. Is the market overheated? According to local investors Rob Go from NextView, Jamie Goldstein from Pillar VC, Lily Lyman from Underscore and Sanjiv Kalevar from OpenView, things may be more than warm, but Boston’s accelerating venture capital totals in 2021 are not based on FOMO or other potentially ephemeral trends.
Instead, Boston is benefiting from larger structural changes to at least the U.S. venture capital market, helping close historical gaps in its startup funding market and access funds that previously might have skipped the region. And local university density isn’t hurting the city’s cause, either, boosting its ability to form new companies during a period of rich investment access.
Let’s talk data, and then hear from the investing crew about just what is going on over in Beantown.
When discussing venture capital data, we often note that it is somewhat laggy, with rounds announced long after they are closed. In practice, this means that more recent data can undersell how a particular quarter has performed. With Boston’s 2021 thus far, all that we can say is that if this data includes normal venture capital lag, it will simply be all the more incredible.
Medal.tv, a short-form video clipping service and social network for gamers, is entering the livestreaming market with the acquisition of Rawa.tv, a Twitch rival based in Dubai, which had raised around $1 million to date. The seven-figure, all-cash deal will see two of Rawa’s founders, Raya Dadah and Phil Jammal, now joining Medal, and further integrations between the two platforms going forward.
The Middle East and North African region (MENA) is one of the fastest-growing markets in gaming and still one that’s mostly un-catered to, explained Medal.tv CEO Pim de Witte, as to his company’s interest in Rawa.
“Most companies that target that market don’t really understand the nuances and try to replicate existing Western or Far-Eastern models that are doomed to fail,” he said. “Absorbing a local team will increase Medal’s chances of success here. Overall, we believe that MENA is an underserved market without a clear leader in the livestreaming space, and Rawa brings to Medal the local market expertise that we need to capitalize on this opportunity,” de Witte added.
Medal.tv’s community had been asking for the ability to do livestreaming for some time, the exec also noted, but the technology would have been too expensive for the startup to build using off-the-shelf services at its scale, de Witte said.
“People increasingly connect around live and real-time experiences, and this is something our platform has lacked to date,” he noted.
But Rawa, as the first livestreaming platform dedicated to Arab gaming, had built out its own proprietary live and network streaming technology that’s now used in all its products. That technology is now coming to Medal.tv.
Image Credits: Medal.tv
The two companies were already connected before today, as Rawa users have been able to upload their gaming clips to Medal.tv, and some Rawa partners had joined Medal’s skilled player program. Going forward, Rawa will continue to operate as a separate platform, but it will become more tightly integrated with Medal, the company says. Currently, Rawa sees around 100,000 active users on its service.
The remaining Rawa team will continue to operate the livestreaming platform under co-founder Jammal’s leadership following the deal’s close, and the Rawa HQ will remain based in Dubai. However, Rawa’s employees have been working remotely since the start of the pandemic, and it’s unclear if that will change in the future, given the uncertainty of COVID-19’s spread.
Medal.tv detailed its further plans for Rawa on its site, where the company explained it doesn’t aim to build a “general-purpose” livestreaming platform where the majority of viewers don’t pay — a call-out that clearly seems aimed at Twitch. Instead, it says it will focus on matching content with viewers who would be interested in subscribing to the creators. This addresses one of the challenges that has faced larger platforms like Twitch in the past, where it’s been difficult for smaller streamers to get off the ground.
The company also said it will remain narrowly focused on serving the gaming community as opposed to venturing into non-gaming content, as others have done. Again, this differentiates itself from Twitch which, over the years, expanded into vlogs and even streaming old TV shows. And it’s much different from YouTube or Facebook Watch, where gaming is only a subcategory of a broader video network.
The acquisition follows Medal.tv’s $9 million Series A led by Horizons Ventures in 2019, after the startup had grown to 5 million registered users and “hundreds of thousands” of daily active users. Today, the company says over 200,000 people create content every day on Medal, and 3 million users are actively viewing that content every month.
Late last year, Amazon launched support for two-way calling that worked with its Fire TV Cube devices. The feature allowed consumers to make and receive calls from their connected TV to any other Alexa device with a screen. Today, the company is expanding this system to enable support for two-way calling with Zoom.
Starting today, Fire TV Cube owners (2nd gen.) will be able to join Zoom work meetings or virtual hangouts via their Fire TV Cube.
To take advantage of the new feature, you’ll need Amazon’s Fire TV Cube, its hands-free streaming device and smart speaker that has Alexa built in, as well as a webcam that supports USB Video Class (UVC) with at least 720p resolution and 30fps. But for a better experience, Amazon recommends a webcam with 1080p resolution and a 60-90 degree field of view from 6 to 10 feet away from the TV. It doesn’t recommend 4K webcams, however.
Amazon suggests webcams like the Logitech C920, C922x, C310, or the Wansview 101JD, for example.
You’ll then connect your webcam to your Fire TV Cube using a Micro USB to USB adapter.
For best results, you’ll want to attach the webcam above the TV screen, Amazon notes.
Once everything is set up and connected, you’ll need to download and install the Zoom app from the Fire TV Appstore. When joining meetings, you can either sign in as a guest or use an existing Zoom account, per the on-screen instructions.
Thanks to the Alexa integration, you can join your meetings hands-free, if you prefer, by way of a voice command like “Alexa, join my Zoom meeting.” Alexa will respond by prompting you for the meeting ID and passcode. Alternately, you can choose to use the remote control to enter in this information.
An optional feature also lets you sync your calendar to Alexa to allow the smart assistant to remind you about the upcoming meetings it finds on your calendar. If you go this route, Alexa will suggest the meeting to join and you’ll just have to say “yes” to be automatically dialed in.
Amazon first announced it was bringing video calling support to its Fire TV platform last fall — a significant update in the new era of remote work and schooling, driven by the pandemic. However, it’s not the only option on the market. Google also last year brought group video calls to its Hub Max devices, and later added support for Zoom calls. Meanwhile Facebook Portal devices have offered video calling of a more personal nature, and last year updated to support Zoom, too.
In other words, Amazon is playing a bit of catch-up here. And its solution is a little more unwieldy as it requires consumers to buy their own webcam, while something like Portal TV offers a TV with a smart camera included.
To use the new feature, you’ll need the latest Fire TV Cube software update to get started, Amazon notes.
Sorry Mr. Putin, but there’s a race on for Russian and Eastern European founders. And right now, those awful capitalists in the corrupt West are starting to out-gun the opposition! But seriously… only the other day a $100 million fund aimed at Russian speaking entrepreneurs appeared, and others are proliferating.
Now, London-based Untitled Ventures plans to join their fray with a €100 million / $118M for its second fund to invest in “ambitious deep tech startups with eastern European founders.”
Untitled says it is aiming at entrepreneurs who are looking to relocate their business or have already HQ’ed in Western Europe and the USA. That’s alongside all the other existing Western VCs who are – in my experience – always ready and willing to listen to Russian and Eastern European founders, who are often known for their technical prowess.
Untitled is going to be aiming at B2B, AI, agritech, medtech, robotics, and data management startups with proven traction emerging from the Baltics, CEE, and CIS, or those already established in Western Europe
LPs in the fund include Vladimir Vedeenev, a founder of Global Network Management>. Untitled also claims to have Google, Telegram Messenger, Facebook, Twitch, DigitalOcean, IP-Only, CenturyLinks, Vodafone and TelecomItaly as partners.
Oskar Stachowiak, Untitled Ventures Managing Partner, said: “With over 10 unicorns, €1Bn venture funding in 2020 alone, and success stories like Veeam, Semrush, and Wrike, startups emerging from the fast-growing regions are the best choice to focus on early-stage investment for us. Thanks to the strong STEM focus in the education system and about one million high-skilled developers, we have an ample opportunity to find and support the rising stars in the region.”
Konstantin Siniushin, the Untitled Ventures MP said: “We believe in economic efficiency and at the same time we fulfill a social mission of bringing technological projects with a large scientific component from the economically unstable countries of the former USSR, such as, first of all, Belarus, Russia and Ukraine, but not only in terms of bringing sales to the world market and not only helping them to HQ in Europe so they can get next rounds of investments.”
He added: “We have a great experience accumulated earlier in the first portfolio of the first fund, not just structuring business in such European countries as, for example, Luxembourg, Germany, Great Britain, Portugal, Cyprus and Latvia, but also physically relocating startup teams so that they are perceived already as fully resident in Europe and globally.”
To be fair, it is still harder than it needs to be to create large startups from Eastern Europe, mainly because there is often very little local capital. However, that is changing, with the launch recently of CEE funds such as Vitosha Venture Partners and Launchub Ventures, and the breakout hit from Romania that was UIPath.
The Untitled Ventures team:
• Konstantin Siniushin, a serial tech entrepreneur
• Oskar Stachowiak, experienced fund manager
• Mary Glazkova, PR & Comms veteran
• Anton Antich, early stage investor and an ex VP of Veeam, a Swiss cloud data management company
acquired by Insight Venture Partners for $5bln
• Yulia Druzhnikova, experienced in taking tech companies international
• Mark Cowley, who has worked on private and listed investments within CEE/Russia for over 20 years
Untitled Ventures portfolio highlights – Fund I
• Sizolution: AI-driven size prediction engine, based in Germany
• Pure app – spontaneous and impersonal dating app, based in Portugal
• Fixar Global – efficient drones for commercial use-cases, based in Latvia,
• E-contenta – based in Poland
• SuitApp – AI based mix-and-match suggestions for fashion retail, based in Singapore
• Sarafan.tech, AI-driven recognition, based in the USA
• Hello, baby – parental assistant, based in the USA
• Voximplant – voice, video and messaging cloud communication platform, based in the USA (exited)
Finding go-to-market fit (GTM) is a pivotal moment for a startup. It means you’ve found a repeatable formula for finding and winning lead that can be written into a repeatable GTM playbook. But before you scale up your sales and marketing, you should check the metrics to make sure you’re ready.
So, how do you know when your startup is ready to scale? I’ll help you answer this using numbers you can calculate on a napkin.
You have to consider three metrics — gross churn rate, the magic number and gross margin. With these, you can measure the health and profitability of your business. By combining them into a simple equation, you can get your LTV:CAC ratio (long-term customer value to customer acquisition cost), which is a measure of your business’ long-term financial outlook. If the LTV:CAC is over 3, you’re ready to scale.
Whatever your particular business, it’s worth spending some time with these metrics to find realistic targets that will push LTV:CAC over 3. Otherwise, you might be in danger of running off a cliff.
Let’s unpack the three basic metrics:
Gross churn rate (GCR) is a measure of product-market fit (PMF). GCR is the percentage of recurring revenue lost from customers that didn’t renew. It answers the question: Do your customers stay with you? If your customers don’t stick with you, you haven’t found PMF.
GCR = Lost monthly recurring revenue / Total MRR.
Example: At the beginning of March, the company brought in $60,000 in MRR. By the end of the month, $15,000 worth of contracts didn’t renew.
GCR = $15,000 / $60,000 = 0.25, or 25% GCR.