The past year has changed the way we work, on so many levels — a fact from which podcasters certainly weren’t immune. I can say, anecdotally, that as a long-time podcaster, I had thrown in the towel on my long-standing insistence that I do all of my interviews in-person — for what should probably be obvious reasons.
2020 saw many shows shifting to a remote format and experimenting with different remote recording tools, from broad teleconferencing software like Zoom to more bespoke solutions like Zencastr. Tel Aviv-based Riverside.fm (originally from Amsterdam) launched right on time to ride the remote podcasting wave, and today the service is announcing a $9.5 million Series A.
The round is led by Seven Seven Six and features Zeev-ventures.com, Casey Neistat, Marques Brownlee, Guy Raz, Elad Gil and Alexander Klöpping. The company says it plans to use the money to increase headcount and build out more features for the service.
“As many were forced to adapt to remote work and production teams struggled to deliver the same in person quality, from a distance—Gideon and Nadav saw an opportunity to not only solve a great need for creators, but to build an extraordinary product,” Seven Seven Six founder Alexis Ohanian said in a release. “As a creator myself, I can say from experience that Riverside’s quality is unmatched and the new editing capabilities are peerless.”
Riverside.fm is a remote video and audio platform that records lossless audio and 4K video tracks remotely to each user’s system, saving the end result from the kind of technical hiccups that come with spotty internet connections.
Along with the funding round, the company is also rolling out a number of software updates to its platform. At the top of the list is brand new version of its iPhone app, which instantly records and uploads video, a nice extension as more users are looking to record their end on mobile devices.
On the desktop front, “Magic Editor” streamlines the multi-step process of recording, editing and uploading. There’s also a new “Smart Speakerview” feature that automatically switches between speakers for video editing, while not switching for accidental noises like sneezing and coughing.
It’s a hot space that’s only heating up. Given how quickly the company was able to piece their original offering together, it will be interesting to see what they’re able to do with an additional $9.5 million in their coffers.
Non-fungible tokens (NFTs) have a natural fit with sports memorabilia, another category of speculative asset whose value is primarily dependent on the prices its adherents are willing to pay. A new startup called SportsIcon aims to deliver even more value via sports-focused NFTs, with direct collaboration with athletes and lessons from the pros to accompany the one-off digital collectibles.
SportsIcon has backing from Roham Gharegozlou, the CEO of Dapper Labs, which was at the very forefront of the NFT craze and which powers NBA Top Shot. It’s also funded by rapper Nas, whose portfolio includes a number of prescient early bets, former NBA player Andrew Bogut, Eniac Ventures’ Partner Nihal Mehta and more. The company announced its initial round of funding along with its public launch, but declined to disclose the total amount, noting only that it was “in the seven figures.”
Initially, SportsIcon will be debuting between 15 and 20 NFTs, created in collaboration with athletes, that commemorate specific, historic moments from their sporting careers. Accompanying these NFTs will be “two-hour masterclasses,” which the company said in a press release will give “fans access to their mental and physical training methods, techniques and best practices.”
That masterclass approach is due in part to the background of co-founder Chris Worsey, who previously built a number of edtech startups including Coursematch. Worsey told TechCrunch that the key to its approach lies in the exclusive content that will be packaged along with the NFTs it’s bringing to market. SportsIcon is differentiated because it’s creating unique content, shooting for two days with the athlete — the first day will be “interviews about their journey and their past,” the second day will be shooting them on the training field, he said.
“This is the key: The beauty is the built-in scarcity of this content,” Worsey added. “We won’t be releasing it elsewhere.”
The hope is to build a “long-term relationship with the icons,” he explained, while the exact financial details/split will differ from deal to deal. In some cases, the athlete is donating their proceeds to the charity of their choice. Each unique art piece will be auctioned off, and the packs will sell for anywhere from $10 to $999. The more expensive packs will be “the really rare, scarce moments where the icon’s talking about their greatest moments,” according to Worsey. Packs can also include real-world prizes like signed memorabilia or box seats at a game.
The real differentiator for SportsIcon, he says, is down to the focus on content, and creating something that’s not only unique, but also high-quality.
“SportsIcon is different because we invest in the content,” Worsey told TechCrunch. “We hire world-class directors and we make world-class content.”
While the startup isn’t yet revealing any of the athletes its working with on its debut NFTs, it says the first sports stars that will appear on the platform will come from soccer, tennis, MMA, basketball and baseball, with agreements with stars in each of those areas currently in progress.
AppliedXL, a startup creating machine learning tools with what it describes as a journalistic lens, is announcing that it has raised $1.5 million in seed funding.
Emerging from the Newlab Venture Studio last year, the company is led by CEO Francesco Marconi (previously R&D chief at The Wall Street Journal) and CTO Erin Riglin (former WSJ automation editor). Marconi told me that AppliedXL started out by working on a number of different data and machine learning projects as it looked for product-market fit — but it’s now ready to focus on its first major industry, life sciences, with a product launching broadly this summer.
He said that AppliedXL’s technology consists of “essentially a swarm of editorial algorithms developed by computational journalists.” These algorithms benefit from “the point of view and expertise of journalists, as well as taking into account things like transparency and bias and other issues that derive from straightforward machine learning development.”
Marconi compared the startup to Bloomberg and Dow Jones, suggesting that just as those companies were able to collect and standardize financial data, AppliedXL will do the same in a variety of other industries.
He suggested that it makes sense to start with life sciences because there’s both a clear need and high demand. Customers might include competitive intelligence teams as pharmaceutical companies and life sciences funds, which might normally try to track this data by searching large databases and receiving “data vomit” in response.
“Our solution for scaling [the ability to spot] newsworthy events is to design the algorithms with the same principles that a journalist would approach a story or an investigation,” Marconi said. “It might be related to the size of the study and the number of patients, it might be related to a drug that is receiving a lot of attention in terms of R&D investment. All of these criteria that science journalist would bring to clinical trials, we’re encoding that into algorithms.”
Eventually, Marconi said the startup could expand into other categories, building industry-“micro models.” Broadly speaking, he suggested that the company’s mission is “measuring the health of people, places and the planet.”
The seed funding was led by Tuesday Capital, with participation from Frog Ventures, Team Europe and Correlation Ventures.
“With industry leading real-time data pipelining, Applied XL is building the tools and platform for the next generation of data-based decision making that business leaders will rely on for decades,” said Tuesday Capital Partner Prashant Fonseka in a statement. “Data is the new oil and the team at Applied XL have figured out how to identify, extract and leverage one of the most valuable commodities in the world.”
During the pandemic, having an automated solution for onboarding and updating Apple devices remotely has been essential, and today Kandji, a startup that helps IT do just that, announced a hefty $60 million Series B investment.
Felicis Ventures led the round with participation from SVB Capital, Greycroft, Okta Ventures and The Spruce House Partnership. Today’s round comes just 7 months after a $21 million Series A, bringing the total raised across three rounds to $88.5 million, according to the company.
CEO Adam Pettit says that the company has been growing in leaps in bounds since the funding round last October.
“We’ve seen a lot more traction than even originally anticipated. I think every time we’ve put targets up onto the board of how quickly we would grow, we’ve accelerated past them,” he said. He said that one of the primary reasons for this growth has been the rapid move to work from home during the pandemic.
“We’re working with customers across 40+ industries now, and we’re even seeing international customers come in and purchase so everyone now is just looking to support remote workforces and we provide a really elegant way for them to do that,” he said.
While Pettit didn’t want to discuss exact revenue numbers, he did say that it has tripled since the Series A announcement. That is being fueled in part he says by attracting larger companies, and he says they have been seeing more and more of them become customers this year.
As they’ve grown revenue and added customers, they’ve also brought on new employees, growing from 40 to 100 since October. Pettit says that the startup is committed to building a diverse and inclusive culture at the company and a big part of that is making sure you have a diverse pool of candidates to choose from.
“It comes down to at the onset just making the decision that it’s important to you and it’s important to the company, which we’ve done. Then you take it step by step all the way through, and we start at the back into the funnel where are candidates are coming from.”
That means clearly telling their recruiting partners that they want a diverse candidate pool. One way to do that is being remote and having a broader talent pool to work with. “We realized that in order to hold true to [our commitment], it was going to be really hard to do that just sticking to the core market of San Diego or San Francisco, and so now we’ve expand expanded nationally and this has opened up a lot of [new] pools of top tech talent,” he said.
Pettit is thinking hard right now about how the startup will run its offices whenever they allowed back, especially with some employees living outside major tech hubs. Clearly it will have some remote component, but he says that the tricky part of that will be making sure that the folks who aren’t coming into the office still feel fully engaged and part of the team.
I’ve been playing around with Apple’s new AirTag location devices for a few hours now and they seem to work pretty much as advertised. The setup flow is simple and clean, taking clear inspiration from the one Apple developed for AirPods. The precision finding feature enabled by the U1 chip works as a solid example of utility-driven augmented reality, popping up a virtual arrow and other visual identifiers on the screen to make finding a tag quicker.
The basic way that AirTags work, if you’re not familiar, is that they use Bluetooth beaconing technology to announce their presence to any nearby devices running iOS 14.5 and above. These quiet pings are encrypted and invisible (usually) to any passer by, especially if they are with their owners. This means that no one ever knows what device actually ‘located’ your AirTag, not even Apple.
With you, by the way, means in relative proximity to a device signed in to the iCloud account that the AirTags are registered to. Bluetooth range is typically in the ~40 foot range depending on local conditions and signal bounce.
In my very limited testing so far, AirTag location range fits in with that basic Bluetooth expectation. Which means that it can be foiled by a lot of obstructions or walls or an unflattering signal bounce. It often took 30 seconds or more to get an initial location from an AirTag in another room, for instance. Once the location was received, however, the instructions to locate the device seemed to update quickly and were extremely accurate down to a few inches.
The AirTags run for a year on a standard CR2032 battery that’s user replaceable. They offer some water resistance including submersion for some time. There are a host of accessories that seem nicely designed like leather straps for bags, luggage tags and key rings.
So far so good. More testing to come.
As with anything to do with location, security and privacy are a top of mind situation for AirTags, and Apple has some protections in place.
You cannot share AirTags — they are meant to be owned by one person. The only special privileges offered by people in your iCloud Family Sharing Group is that they can silence the ‘unknown AirTag nearby’ alerts indefinitely. This makes AirTags useful for things like shared sets of keys or maybe even a family pet. This means that AirTags will not show up on your family Find My section like other iOS devices might. There is now a discrete section within the app just for ‘Items’ including those with Find My functionality built in.
The other privacy features include a ‘warning’ that will trigger after some time that a tag is in your proximity and NOT in the proximity of its owner (aka, traveling with you perhaps in a bag or car). Your choices are then to make the tag play a sound to locate it — look at its information including serial number and to disable it by removing its battery.
Any AirTag that has been away from its owner for a while — this time is variable and Apple will tweak it over time as it observes how AirTags work — will start playing a sound whenever it is moved. This will alert people to its presence.
You can, of course, also place an AirTag into Lost Mode, offering a choice to share personal information with anyone who locates it as it plays an alert sound. Anyone with any smart device with NFC, Android included, can tap the device to see a webpage with information that you choose to share. Or just a serial number if you do not choose to do so.
This scenario addresses what happens if you don’t have an iOS device to alert you to a foreign AirTag in your presence, as it will eventually play a sound even if it is not in lost mode and the owner has no control over that.
It’s clear that Apple has thought through many of the edge cases, but some could still crop up as it rolls out, we’ll have to see.
Apple has some distinct market advantages here:
Important to note that Apple has announced the development of a specification for chipset makers that lets third-party devices with Ultra Wideband radios access the U1 chip onboard iPhones ‘later this Spring’. This should approximate the Precision Finding feature’s utility in accessories that don’t have the advantage of having a U1 built in like the AirTags do. And, of course, Apple has opened up the entire Find My mesh network to third party devices from Belkin, Chipolo and VanMoof that want to offer a similar basic finding function as offered by AirTags. Tile has announced plans to offer a UWB version of its tracker as well, even as it testified in Congress yesterday that Apple’s advantages made its entry into this market unfair.
It will be interesting to see these play out once AirTags are out getting lost in the wild. I have had them for under 12 hours so I’ve not been able to test edge cases, general utility in public spaces or anything like that.
The devices go on sale on April 23rd.
The Internet of Things has a security problem. The past decade has seen wave after wave of new internet-connected devices, from sensors through to webcams and smart home tech, often manufactured in bulk but with little — if any — consideration to security. Worse, many device manufacturers make no effort to fix security flaws, while others simply leave out the software update mechanisms needed to deliver patches altogether.
That sets up an entire swath of insecure and unpatchable devices to fail, and destined to be thrown out when they break down or are invariably hacked.
Security veteran Window Snyder thinks there is a better way. Her new startup, Thistle Technologies, is backed with $2.5 million in seed funding from True Ventures with the goal of helping IoT manufacturers reliably and securely deliver software updates to their devices.
Snyder founded Thistle last year, and named it after the flowering plant with sharp prickles designed to deter animals from eating them. “It’s a defense mechanism,” Snyder told TechCrunch, a name that’s fitting for a defensive technology company. The startup aims to help device manufacturers without the personnel or resources to integrate update mechanisms into their device’s software in order to receive security updates and better defend against security threats.
“We’re building the means so that they don’t have to do it themselves. They want to spend the time building customer-facing features anyway,” said Snyder. Prior to founding Thistle, Snyder worked in senior cybersecurity positions at Apple, Intel, and Microsoft, and also served as chief security officer at Mozilla, Square, and Fastly.
Thistle lands on the security scene at a time when IoT needs it most. Botnet operators are known to scan the internet for devices with weak default passwords and hijack their internet connections to pummel victims with floods of internet traffic, knocking entire websites and networks offline. In 2016, a record-breaking distributed denial-of-service attack launched by the Mirai botnet on internet infrastructure giant Dyn knocked some of the biggest websites — Shopify, SoundCloud, Spotify, Twitter — offline for hours. Mirai had ensnared thousands of IoT devices into its network at the time of the attack.
Other malicious hackers target IoT devices as a way to get a foot into a victim’s network, allowing them to launch attacks or plant malware from the inside.
Since device manufacturers have done little to solve their security problems among themselves, lawmakers are looking at legislating to curb some of the more egregious security mistakes made by default manufacturers, like using default — and often unchangeable — passwords and selling devices with no way to deliver security updates.
Snyder said the push to introduce IoT cybersecurity laws could be “an easy way for folks to get into compliance” without having to hire fleets of security engineers. Having an update mechanism in place also helps to keeps the IoT devices around for longer — potentially for years longer — simply by being able to push fixes and new features.
“To build the infrastructure that’s going to allow you to continue to make those devices resilient and deliver new functionality through software, that’s an incredible opportunity for these device manufacturers. And so I’m building a security infrastructure company to support that security needs,” she said.
With the seed round in the bank, Snyder said the company is focused on hiring device and back-end engineers, product managers, and building new partnerships with device manufacturers.
Phil Black, co-founder of True Ventures — Thistle’s seed round investor — described the company as “an astute and natural next step in security technologies.” He added: “Window has so many of the qualities we look for in founders. She has deep domain expertise, is highly respected within the security community, and she’s driven by a deep passion to evolve her industry.”
Coinswitch Kuber, a startup that allows young users in India to invest in cryptocurrencies, said on Thursday it has raised $25 million in a new financing round as it looks to expand its reach in India, the world’s second largest internet market and also the place where the future of private cryptocurrencies remains uncertain for now.
Tiger Global financed the entire Series B funding round of Coinswitch Kuber and valued the three-year-old Indian startup at over $500 million. The announcement of Series B comes just three months after Coinswitch closed its $15 million Series A round from Ribbit Capital, Sequoia Capital India, and Kunal Shah. The Bangalore-based startup has raised $41.5 million to date.
TechCrunch reported earlier this month that the New York-headquartered technology hedge fund had led or was in advanced stages of talks to lead investments in many Indian startups including Coinswitch.
Coinswitch Kuber is one of the handful of startups operating in the cryptocurrency space today. The crypto exchange allows users to buy slivers of several popular cryptocurrencies. A user on Coinswitch, for instance, can buy small sachets of bitcoin and other currencies for as low as 100 Indian rupees ($1.3)-worth.
The startup said it has amassed over 4.5 million users, more than half of whom are aged 25 or younger. In the past 11 months, Coinswitch Kuber said it processed transactions over $5 billion.
But how the startup, which aims to add 5.5 million by the end of this year, performs in the future is not entire in its hand.
While trading of private cryptocurrency such as bitcoin is currently legal in India, New Delhi is widely expected to introduce a law that bans all private cryptocurrency.
Ashish Singhal, co-founder and chief executive of Coinswitch Kuber, said he is optimistic that India will not ban private cryptocurrencies, but said the startup closed the financing round with Tiger Global before New Delhi’s indication to formulate a law.
“This investment round brings us at par with some of the most sought after cryptocurrency companies in the world and sets us up for the long run,” said Singhal.
In recent months, some crypto startups in India have started to explore a contingency plan in the event the nation does end up banning cryptocurrency trading in the country. Many startups are today building in India, but focusing on serving customers overseas.
“As they build India’s leading cryptocurrency platform, CoinSwitch is well positioned to capture the tremendous growing interest in crypto among retail investors. We are excited to partner with CoinSwitch as they innovate in this emerging asset class,” said Scott Shleifer, Partner at Tiger Global, in a statement.
SmartNews announced today that its tools to help Japanese users find nearby COVID-19 vaccine bookings have reached more than one million users just a week after launching. The news discovery unicorn decided to create Vaccine Alert and Map features for its Japanese app because many people there are frustrated by the speed of vaccine rollouts. In the United States, where vaccinations are going much faster, SmartNews just released a feature that lets people find appointments by zip code today.
The company has more than 20 million monthly active users combined in Japan and the United States.
According to a public opinion poll by Nippon TV, more than 70% of Japanese people are dissatisfied with its slow vaccine rollout. That sentiment was echoed in SmartNews’ own research, which surveyed 900 people aged 65 to 79 at the beginning of April, and found that more than 90% felt there was insufficient information available about when and where they could get vaccinated. Challenges included the lack of a central portal for vaccine booking information, meaning local government offices and healthcare providers were inundated with questions.
To create its Vaccine Alert and Map, SmartNews aggregated information from 1,741 municipalities across Japan. The Vaccine Alert lets users know when they are eligible to get a shot based on their location, age, occupation and health conditions. The Vaccine Map combines data from about 37,000 facilities, so people can see where bookings are available near them or get notified when their healthcare providers begin taking reservations.
The features were released on April 12, the day vaccinations began for elderly people in Japan, and had more than one million users a week later. This is in part because SmartNews is one of the country’s most popular news aggregator apps and also because the new features were covered by TV Asahi, a major TV station.
A company representative told TechCrunch that many people who signed up for the vaccine features were already SmartNews users, but it has also seen new downloads as people share their vaccination appointments with friends and family.
Being an expectant mom can be frightening, as can mothering an infant or toddler. The answers don’t come automatically, and while there’s no shortage of books and websites (and advice from grandparents) about how to parent at every stage, finding satisfying information often proves a lot harder than imagined.
There are online social groups that deliver some of the social and emotional support that new parents need, no matter where they live. There are many dozens of mom communities on Facebook, for example. However, it’s because there’s room for improvement on this theme — big groups can feel isolating, bad information abounds —that Oath Care, a young, four-person San Francisco-based startup, just raised $2 million in seed funding from XYZ Ventures, General Catalyst, and Eros Resmini, former CMO of Discord and managing partner of the Mini Fund.
What is it building? Founder Camilla Hermann describes it as a subscription-based mobile app that’s focused on improving the lives of new mothers by combining parents who have lots in common with healthcare specialists and moderators who can guide them in group chats, as well as one-on-one video calls.
More specifically, she says, for $20 per month, Oath matches pregnant and postpartum moms in circles of up to 10 based on factors like stage of pregnancy, age of child, location, and career so they can ask questions of each other, with the help of a trained moderator (who is sometimes a mother with older children).
Oath also pushes curriculum that Oath’s team is developing in-house to members based on each group’s specific needs. Not last, every group is given collective access to medical specialists who can answer general questions as part of the members’ subscription and who are also available for consultations when individualized help is needed.
Hermann says the pricing of these 15-minute-long consultations is still being developed, but that the medical experts with whom it’s already working see the app as a form of lead generation.
It’s an interesting concept, one that could be taken in a host of directions, acknowledges Hermann who says she was inspired to cofound the company based on earlier work developing a contact tracing technology created to track outbreaks like Ebola in real time.
As she said yesterday during a Zoom call with TechCrunch and her cofounder, Michelle Stephens, a pediatric clinician and research scientist: “We’ve fundamentally misunderstand something really important about health in the West; we think that [changes] happen to one person at a time or one part of the body at a time, but it always happens in interconnected systems both inside and outside the body, which fundamentally means that it is always happening in community.”
For her part, Stephens — who was introduced to Hermann at a dinner years ago — says her motivation in cofounding Oath was born out of research into childhood stress, and that by “better equipping parents to be those positive consistent caregivers in their child’s life,” Oath aims to help enable stronger, more intimate child-parent bonds.
It might sound grand for a mobile app, but it also sounds like a smart starting point. Though the idea is to match mothers in similar situations at the outset to help bolster theirs and their children’s health, it’s easy to imagine the platform evolving in a way that brings together parents in numerous groups based on interests, from preschool applications to autism to same-sex parenting. It’s easy to see the platform helping to sell products that parents need. It’s easy to imagine the company amassing a lot of valuable information.
Indeed, says Hermann, the longer-term vision for Oath is to create rich datasets that it hopes can be used to improve health outcomes, including by identifying health issues earlier. Relatedly, it also hopes to build relationships with health systems and payers in order to increase access to its products.
For now, Oath is mostly just trying to keep up with demand. Hermann says the “small and scrappy” company found its first 50 users through Facebook ads, and that this base quickly tripled organically before Oath was forced to create a growing waitlist for what has been a closed beta until now. (Oath is “anticipating a full launch in late summer,” says Stephens.)
That’s not to say the company isn’t thinking at all about next steps.
While right now it is “laser focused on building out the most exceptional experience for this specific cohort of users in this specific period of time of their lives,” says Hermann, once it builds out many more communities of small trusted groups with “high engagement and high trust,” there is “a lot you can layer on top of that. It’s virtually limitless.”
After an upward revision, UiPath priced its IPO last night at $56 per share, a few dollars above its raised target range. The above-range price meant that the unicorn put more capital into its books through its public offering.
For a company in a market as competitive as robotic process automation (RPA), the funds are welcome. In fact, RPA has been top of mind for startups and established companies alike over the last year or so. In that time frame, enterprise stalwarts like SAP, Microsoft, IBM and ServiceNow have been buying smaller RPA startups and building their own, all in an effort to muscle into an increasingly lucrative market.
In June 2019, Gartner reported that RPA was the fastest-growing area in enterprise software, and while the growth has slowed down since, the sector is still attracting attention. UIPath, which Gartner found was the market leader, has been riding that wave, and today’s capital influx should help the company maintain its market position.
It’s worth noting that when the company had its last private funding round in February, it brought home $750 million at an impressive valuation of $35 billion. But as TechCrunch noted over the course of its pivot to the public markets, that round valued the company above its final IPO price. As a result, this week’s $56-per-share public offer wound up being something of a modest down-round IPO to UiPath’s final private valuation.
Then, a broader set of public traders got hold of its stock and bid its shares higher. The former unicorn’s shares closed their first day’s trading at precisely $69, above the per-share price at which the company closed its final private round.
So despite a somewhat circuitous route, UiPath closed its first day as a public company worth more than it was in its Series F round — when it sold 12,043,202 shares sold at $62.27576 apiece, per SEC filings. More simply, UiPath closed today worth more per-share than it was in February.
How you might value the company, whether you prefer a simple or fully-diluted share count, is somewhat immaterial at this juncture. UiPath had a good day.
While it’s hard to know what the company might do with the proceeds, chances are it will continue to try to expand its platform beyond pure RPA, which could become market-limited over time as companies look at other, more modern approaches to automation. By adding additional automation capabilities — organically or via acquisitions — the company can begin covering broader parts of its market.
TechCrunch spoke with UiPath CFO Ashim Gupta today, curious about the company’s choice of a traditional IPO, its general avoidance of adjusted metrics in its SEC filings, and the IPO market’s current temperature. The final question was on our minds, as some companies have pulled their public listings in the wake of a market described as “challenging”.
In today’s antitrust hearing in the U.S. Senate, Apple and Google representatives were questioned on whether they have a “strict firewall” or other internal policies in place that prevent them from leveraging the data from third-party businesses operating on their app stores to inform the development of their own competitive products. Apple, in particular, was called out for the practice of copying other apps by Senator Richard Blumenthal (D-CT), who said the practice had become so common that it earned a nickname with Apple’s developer community: “sherlocking.”
Sherlock, which has its own Wikipedia entry under software, comes from Apple’s search tool in the early 2000s called Sherlock. A third-party developer, Karelia Software, created an alternative tool called Watson. Following the success of Karelia’s product, Apple added Watson’s same functionality into its own search tool, and Watson was effectively put out of business. The nickname “Sherlock” later became shorthand for any time Apple copies an idea from a third-party developer that threatens to or even destroys their business.
Over the years, developers claimed Apple has “sherlocked” a number of apps, including Konfabulator (desktop widgets), iPodderX (podcast manager), Sandvox (app for building websites) and Growl (a notification system for Mac OS X) and, in more recent years, F.lux (blue light reduction tool for screens) Duet and Luna (apps that makes iPad a secondary display), as well as various screen-time-management tools. Now Tile claims Apple has also unfairly entered its market with AirTag.
During his questioning, Blumenthal asked Apple and Google’s representatives at the hearing — Kyle Andeer, Apple’s chief compliance officer and Wilson White, Google’s senior director of Public Policy & Government Relations, respectively — if they employed any sort of “firewall” in between their app stores and their business strategy.
Andeer somewhat dodged the question, saying, “Senator, if I understand the question correctly, we have separate teams that manage the App Store and that are engaged in product development strategy here at Apple.”
Blumenthal then clarified what he meant by “firewall.” He explained that it doesn’t mean whether or not there are separate teams in place, but whether there’s an internal prohibition on sharing data between the App Store and the people who run Apple’s other businesses.
Andeer then answered, “Senator, we have controls in place.”
He went on to note that over the past 12 years, Apple has only introduced “a handful of applications and services,” and in every instance, there are “dozens of alternatives” on the App Store. And, sometimes, the alternatives are more popular than Apple’s own product, he noted.
“We don’t copy. We don’t kill. What we do is offer up a new choice and a new innovation,” Andeer stated.
His argument may hold true when there are strong rivalries, like Spotify versus Apple Music, or Netflix versus Apple TV+, or Kindle versus Apple Books. But it’s harder to stretch it to areas where Apple makes smaller enhancements — like when Apple introduced Sidecar, a feature that allowed users to make their iPad a secondary display. Sidecar ended the need for a third-party app, after apps like Duet and Luna first proved the market.
Another example was when Apple built screen-time controls into its iOS software, but didn’t provide the makers of third-party screen-time apps with an API so consumers could use their preferred apps to configure Apple’s Screen Time settings via the third-party’s specialized interface or take advantage of other unique features.
Blumenthal said he interpreted Andeer’s response as to whether Apple has a “data firewall” as a “no.”
Posed the same question, Google’s representative, White, said his understanding was that Google had “data access controls in place that govern how data from our third-party services are used.”
Blumenthal pressed him to clarify if this was a “firewall,” meaning, he clarified again, “do you have a prohibition against access?”
“We have a prohibition against using our third-party services to compete directly with our first-party services,” White said, adding that Google has “internal policies that govern that.”
The senator said he would follow up on this matter with written questions, as his time expired.
Third-party hardware integration can be a tricky thing. Peloton this week raised some eyebrows by dropping Apple GymKit compatibility for its Bike Bootcamp program. Users were, naturally, quick to react. The situation left some wondering whether the move was a direct response to Apple’s recent entry into the home exercise market with Fitness+.
A Peloton spokesperson offered the following statement to TechCrunch, “Apple GymKit is designed to work with equipment-based cardio workouts. However, Peloton recently implemented GymKit with Bike Bootcamp, a multi-disciplinary class type that combines strength and cardio, which the feature does not support. Members can still use GymKit to sync their cycling-only workouts to their Apple Watch from the Bike+.”
The comment appears to reflect one of the bigger issues with its initial GymKit implementation. Designed with the gym in mind, Apple’s program engages with specific exercise equipment. In other words, use the integration on the treadmill and the Watch specifically goes to work tracking run metrics. Use it with a bike and it tracks cycling.
A program like Bike Bootcamp complicates things, adding to the mix things like weightlifting. Likely that didn’t quite mesh with the third-party guidelines around GymKit implementation. The bigger issue for Peloton owners is that GymKit was a primary distinguisher between the standard Peloton bike and the Bike+ — two products with a $500 gulf between them.
Truth is, for now at least, working together is still a net positive for both parties. Apple may have its own fitness platform, but Peloton has a huge footprint — one that likely has significant overlap with Apple Watch users. GymKit may have been developed with gyms in mind, but people haven’t visited the gym much in the past year, and there’s a reasonable expectation that the industry might never entirely bounce back.
For Peloton’s part, it’s probably good to play nice with the company that utterly dominates the smartwatch category.
This is not a boast, but a warning: I could write a how-to article on almost any topic.
Give me enough time to do some research, and I can put together a reliable step-by-step for building a custom gaming PC, installing a hot water heater or interpreting public health data. But since I’ve never actually done those things, I would encourage you to ignore any advice I have to offer.
Trusted advice comes from experience. That’s why Ron Miller interviewed three entrepreneurs who have each built multiple companies to uncover some essential truths about achieving product-market fit:
The basic tenets presented in Ron’s story will resonate with anyone who’s launched a startup.
Alex Wilhelm was particularly prolific this morning: For The Exchange, he studied UiPath’s 2020 quarterly results to get a clearer picture of its first S-1/A filing. Is the “somewhat slack news regarding UiPath’s potential IPO valuation” a harbinger of things to come?
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In a follow-up, he recapped news from the public debuts of Coinbase, UiPath, Zenvia, AppLovin and Grab, all of which “adds up to a somewhat muddled picture of the current IPO market.” It feels like we’re in a turbulent window, but it’s also possible that we’re in the calm after the storm, he suggests.
Final note: I asked TechCrunch graphic designer/illustrator Bryce Durbin to create an image to accompany this primer on raising a Series A round. He didn’t just exceed my expectations — it’s my favorite TechCrunch illustration ever. Thanks, Bryce!
I hope you got something out of reading Extra Crunch this week. Have a great weekend.
Senior Editor, TechCrunch
Image Credits: Bryce Durbin/TechCrunch
From building out Facebook’s first office in Austin to putting together most of Quora’s team, Bain Capital Ventures managing director Sarah Smith has done a bit of everything when it comes to hiring.
At TechCrunch Early Stage, she spoke about how to ensure the critical early hires are the right ones to grow a business. As an investor, Smith has a broad view into the problems companies face as they search for the right candidates to spur organizational success.
She touched on a number of issues, such as who to hire and when, when to fire, and how to ensure diversity from the earliest days.
Image Credits: Bryce Durbin/TechCrunch
During a seed funding round, a founder needs to convince a venture capital investor on a vision. But during a Series A fundraise, napkin-stage ideas don’t make the cut — a founder needs product progress, numbers and revenue (or at least a plan to eventually generate some).
In many ways, the stakes are higher for a Series A — and Bucky Moore, a partner at Kleiner Perkins, joined TechCrunch Early Stage last week to give founders tactical advice on the process of raising one.
Moore spoke about storytelling over semantics, pricing, and where his firm sees itself “raising the bar” for startups.
For a long time, “revenue” seemed to be a taboo word in the startup world. Fortunately, things have changed with the rise of SaaS and alternative funding sources such as revenue-based investing VCs.
Still, revenue modeling remains a challenge for founders. How do you predict earnings when you’re still figuring it out?
Image Credits: erhui1979 / Getty Images
If you have a great idea within the open-core framework, expect your risks to be much lower than with a traditional business structure.
Clearly communicate this fact to venture capitalists for the best chance at securing the seed funding your organization needs.
But it takes more: Boasting a strong community around an emerging open-source product essentially serves as an “introduction letter” to venture capitalists. It highlights the founders’ ability to successfully execute their vision, as well as the mission to bring their product to a commercial reality.
Additionally, the iterative nature of open-source projects leads to fostering a sense of teamwork between the founders, their team, and investors and stakeholders.
Image Credits: Ureeka
Melissa Bradley is the co-founder of a startup called Ureeka, an investor at 1863 Ventures, and a professor at Georgetown’s business school. So it’s not an understatement to say that she understands the fundraising process from every angle.
She both invested and fundraised for her own startup during this last year, where the landscape has shifted drastically. At TechCrunch Early Stage, she led a session on how to nail your virtual pitch meeting.
Bradley covered how to allocate your time during the meeting, how to prepare, how to close out the meetings with a clear list of action items, and what to avoid.
Image Credits: Eric Millette / Scale AI
Scale CEO and co-founder Alex Wang credits their success since founding — which includes raising over $277 million and achieving breakeven status in terms of revenue — to early support from investors, including Accel’s Dan Levine.
Accel haș participated in four of Scale’s financing rounds, and Levine wrote one of the company’s very first checks. So on this past week’s episode of Extra Crunch Live, we spoke with Levine and Wang about how that first deal came together, and what their working relationship has been like in the years since.
Let’s parse Uber’s latest, vet its profit promise, consider its rivals and their performance, and then ask ourselves if the great ride-hailing and food-delivery booms will ever make back the money they cost to scale.
Image Credits: Noam Galai/Getty Images
For UiPath, its initial IPO price interval is a disappointment, though the company could see an upward revision in its valuation before it does sell shares and begin to trade.
But more to the point, the company’s private-market valuation bump followed by a quick public-market correction stands out as a counter-example to something that we’ve seen so frequently in recent months.
Is UiPath’s first IPO price interval another indicator that the IPO market is cooling?
Image Credits: alexsl / Getty Images
As artificial intelligence becomes more advanced, previously cutting-edge — but generic — AI models are becoming commonplace, such as Google Cloud’s Vision AI or Amazon Rekognition.
While effective in some use cases, these solutions do not suit industry-specific needs right out of the box. Organizations that seek the most accurate results from their AI projects will simply have to turn to industry-specific models.
Any team looking to expand its AI capabilities should first apply its data and use cases to a generic model and assess the results.
Let’s dive into each of these approaches and how businesses can decide which one works for their distinct circumstances.
Image Credits: Atomico
In the earliest stages of building a startup, it can be hard to justify focusing on anything other than creating a great product or service and meeting the needs of customers or users.
However, there are still a number of surefire measures that any early-stage company can and should put in place to achieve “people ops” success as they begin scaling, according to venture capital firm Atomico‘s talent partners, Caro Chayot and Dan Hynes.
Long story short: You need to recruit for what you need, but you also need to think about what is coming down the line.
Image Credits: Roslan Rahman/Getty Images
Southeast Asian superapp Grab is going public via a SPAC.
Grab, which provides ride-hailing, payments and food delivery, will trade under the ticker symbol “GRAB” on the Nasdaq exchange when the combination is complete.
Let’s walk through several key points from Grab’s SPAC investor deck, including growth, segment profitability, aggregate costs and COVID-19, among other factors.
Microsoft’s huge purchase of health tech AI company Nuance led the technology news cycle this week. The $19.7 billion transaction is Microsoft’s second-largest to date, only beaten by its purchase of LinkedIn some years ago.
For the AI space, the sale is a coup. Nuance was already a public company, but to see Microsoft offer a firm premium over its public-market value demonstrates the value that AI technology can have to wealthy companies. For startups working in the AI space, the Nuance deal is good news; the value of AI revenue was repriced by the acquisition’s announcement — and for the better.
In light of the megadeal, The Exchange dug into the AI venture capital market. What’s happening on the startup side of the coin in the artificial intelligence and machine learning (AI/ML) space?
Image Credits: Bryce Durbin
When the word “hydrogen” is uttered today, the average non-insider’s mind likely gravitates toward transportation — cars, buses, maybe trains or 18-wheelers, all powered by the gas.
But hydrogen is, and does, a lot of things, and a better understanding of its other roles — and challenges within those roles — is necessary to its success in transportation.
Hydrogen is now capturing the attention of governments and private sector players, fueled by new tech, global green energy legislation and post-pandemic “green recovery” schemes.
Image Credits: LaylaBird / Getty Images
Before a startup can achieve product-market fit, founders must first listen to their customers, build what they require and fashion a business plan that makes the whole enterprise worthwhile.
The numbers will tell the true story, but when it happens, you’ll feel it in your bones because sales will be good, customers will be happy and revenue will be growing.
Reaching that tipping point can be a slog, especially for first-time founders. To uncover some basic truths about building products, we spoke to three entrepreneurs who have each built more than one company.
In broad strokes, the United States had a crushing venture capital start to the new year, pandemic be damned.
That is especially true when we consider 2020’s full-year figures. Last year, venture capitalists deployed some $166 billion into U.S.-based startups across 12,546 rounds. In contrast, if the first quarter’s pace was maintained during the rest of 2021, the United States would see around 16,000 rounds worth around $280 billion.
Of course, we cannot see the future, so those projections are merely shared to underscore how active the first quarter proved to be.
Image Credits: Bryce Durbin/TechCrunch
For the past few years, our company has put very promising candidates into the annual H-1B lottery. None of them have been selected — and none of them meet the requirements for other work visas like an O-1A.
We lost out again in this year’s H-1B lottery. Are there any other ways we can obtain H-1Bs for our team members?
— Soldiering On in Sunnyvale
Image Credits: Alexa von Tobel
Few people are more knowledgeable on the topic of how founders should manage their finances than Alexa von Tobel.
She is a certified financial planner, started her own company in the midst of the recession (which happened to be a wildly successful personal finance startup that sold for hundreds of millions of dollars), and is now a VC who invests and advises founders.
At Early Stage 2021, she gave a presentation on how founders should think about managing their own wealth. Startup founders can often put all their money into their venture and end up paying more attention to the finances of their company than their own bank account.
Von Tobel outlined the various steps you can take to stay out of debt, build credit and accumulate wealth through investments to ensure you have financial peace of mind as you take on the most stressful venture of your life: Starting a company.
Image Credits: Olive
A few years ago, founder Sean Lane thought he’d achieved product-market fit.
Speaking to attendees at TechCrunch’s Early Stage virtual event, Lane said Queue, a secure digital check-in tablet for hospital waiting rooms that reduced wait times by uniting and correcting electronic medical records, was “selling like hotcakes.” But once Lane realized it would only ever address one piece of a much bigger market opportunity, he sold off the product, laid off two-thirds of the people affiliated with it and redirected the employees who were left.
Lane explained that what he really wanted to build is what his company — since renamed Olive — has now become, a robotic process automation (RPA) company that takes on hospital workers’ most tedious tasks so nurses and physicians can spend more time with patients.
Image Credits: jayk7 (opens in a new window) / Getty Images
In business today, many believe that consumer privacy and business results are mutually exclusive — to excel in one area is to lack in the other. Consumer privacy is seen by many in the technology industry as an area to be managed.
But the truth is that the companies that champion privacy will be better-positioned to win in all areas. This is especially true as the digital industry continues to undergo tectonic shifts in privacy — both in government regulation and browser updates.
Image Credits: Chris Jongkind (opens in a new window)/ Getty Images
Founders shouldn’t be worried about starting companies that rely on other platforms.
Platforms exist to help startups get to users and customers faster and should be used as a means to an end, but everyone must get their piece.
Coinbase’s direct listing was a massive finance, startup and cryptocurrency event, and the transaction’s effects will be felt for some time in the public market, but also among the startups and capital that comprise the private market.
In the buildup to Coinbase’s flotation — and we’d argue especially after it released its blockbuster Q1 2021 results — there was a general expectation that the unicorn’s direct listing would provide a halo effect for other startups in the space.
The widely held perspective raised two questions: Will the success of Coinbase’s direct listing bolster private investment in crypto-focused startups, and will that success help other areas of financially focused startup work garner more investor attention?
Image Credits: twomeows (opens in a new window)/ Getty Images
The “billion-dollar B2B” paradigm refers to the forces shaping a new class of cloud-first, enterprise-tech behemoths with the potential to reach $1 billion in ARR — and achieve market capitalizations in excess of $50 billion or even $100 billion.
One of the biggest factors driving billion-dollar B2Bs is a simple but important shift in how organizations buy enterprise technology today.
Image Credits: tumsasedgars (opens in a new window) / Getty Images
Data is the most valuable asset for any business in 2021. If your business is online and collecting customer personal information, your business is dealing in data, which means data privacy compliance regulations will apply to everyone — no matter the company’s size.
Small startups might not think the world’s strictest data privacy laws — the California Consumer Privacy Act (CCPA) and Europe’s General Data Protection Regulation (GDPR) — apply to them, but it’s important to enact best data management practices before a legal situation arises.
Image Credits: Bloomberg / Getty Images
When Dell announced it was spinning out VMware, the move itself wasn’t surprising; there had been public speculation for some time.
But Dell could have gone a number of ways in this deal, despite its choice to spin VMware out as a separate company with a constituent dividend instead of an outright sale.
It seems Dell hopes to have its cake and eat it too with this deal: It generates a large slug of cash to use for personal debt relief while securing a five-year commercial deal that should keep the two companies closely aligned.
Robotic process automation platform UiPath filed its first S-1/A this week, setting an initial price range for its shares. The numbers were impressive, if slightly disappointing because what UiPath indicated in terms of its potential IPO value was a lower valuation than it earned during its final private fundraising.
Here at The Exchange, we wondered if the somewhat slack news regarding UiPath’s potential IPO valuation was a warning to late-stage investors.
But in good news for UiPath shareholders, most everyone — ourselves included! — who discussed the company’s price range didn’t dig into the fact that the company first disclosed quarterly results to the same S-1/A filing that included its IPO valuation interval. And those numbers are very interesting, so much so that The Exchange is now generally expecting UiPath to target a higher price interval before it debuts.
But let’s dig into the company’s quarterly results to get a clearer picture of UiPath.
Image Credits: Mohd Hafiez Mohd Razali/EyeEm (opens in a new window) / Getty Images
If you only stayed up to date with the Coinbase direct listing this week, you’re forgiven. It was, after all, one heck of a flotation.
But underneath the cryptocurrency exchange’s public debut, other IPO news that matters did happen this week. And the news adds up to a somewhat muddled picture of the current IPO market.
To cap off the week, let’s run through IPO news from UiPath, Coinbase, Grab, AppLovin and Zenvia. The aggregate dataset should help you form your own perspective about where today’s IPO markets really are in terms of warmth for the often unprofitable unicorns of the world.
By 2025, 463 exabytes of data will be created each day, according to some estimates. (For perspective, one exabyte of storage could hold 50,000 years of DVD-quality video.) It’s now easier than ever to translate physical and digital actions into data, and businesses of all types have raced to amass as much data as possible in order to gain a competitive edge.
However, in our collective infatuation with data (and obtaining more of it), what’s often overlooked is the role that storytelling plays in extracting real value from data.
The reality is that data by itself is insufficient to really influence human behavior. Whether the goal is to improve a business’ bottom line or convince people to stay home amid a pandemic, it’s the narrative that compels action, rather than the numbers alone. As more data is collected and analyzed, communication and storytelling will become even more integral in the data science discipline because of their role in separating the signal from the noise.
Yet this can be an area where data scientists struggle. In Anaconda’s 2020 State of Data Science survey of more than 2,300 data scientists, nearly a quarter of respondents said that their data science or machine learning (ML) teams lacked communication skills. This may be one reason why roughly 40% of respondents said they were able to effectively demonstrate business impact “only sometimes” or “almost never.”
The best data practitioners must be as skilled in storytelling as they are in coding and deploying models — and yes, this extends beyond creating visualizations to accompany reports. Here are some recommendations for how data scientists can situate their results within larger contextual narratives.
Ever-growing datasets help machine learning models better understand the scope of a problem space, but more data does not necessarily help with human comprehension. Even for the most left-brain of thinkers, it’s not in our nature to understand large abstract numbers or things like marginal improvements in accuracy. This is why it’s important to include points of reference in your storytelling that make data tangible.
For example, throughout the pandemic, we’ve been bombarded with countless statistics around case counts, death rates, positivity rates, and more. While all of this data is important, tools like interactive maps and conversations around reproduction numbers are more effective than massive data dumps in terms of providing context, conveying risk, and, consequently, helping change behaviors as needed. In working with numbers, data practitioners have a responsibility to provide the necessary structure so that the data can be understood by the intended audience.
Streaming revenue has been a longtime concern for musicians, especially those scraping by in the wake of an industry-wide implosion of record labels. Of course, a year that has made touring an impossibility has only brought those issues into starker relief as the primary revenue source for many has completely dried up.
Apple is hoping to clarify some of the major questions around streaming revenue in a letter it sent to artists. The note, reported by The Wall Street Journal, outlines a revenue that amounts to around double what Spotify pays out.
“As the discussion about streaming royalties continues, we believe it is important to share our values,” the company notes. “We believe in paying every creator the same rate, that a play has a value, and that creators should never have to pay for featuring music in prime display space on its service.”
The company’s comment is a clear shot at Spotify’s much more varied payment model. What that actually works out to at the end of the day, however, is a slightly more complicated question. Things start at around a penny-per-stream (though it can go down from there). That amount is paid out to rights holders — be they record labels or publishers. It’s another in a long line of issues that have led many musicians to question the efficacy of intermediaries in 2021.
Spotify CEO Daniel Ek fanned the flames in an interview last year, stating, “Some artists that used to do well in the past may not do well in this future landscape, where you can’t record music once every three to four years and think that’s going to be enough.”
At the end of the day, it’s a battle of pennies — or fractions thereof, for many artists. And it has become immensely difficult for mid-tier and truly independent artists to maintain a living as the world has shifted to a streaming model. Services like Bandcamp and Soundcloud have worked to make things more manageable for smaller artists, but the life of a modern musician remains a struggle — especially in the age of COVID-19.
Pakistan has temporarily blocked several social media services in the South Asian nation, according to users and a notice reviewed by TechCrunch.
In an order titled “Complete Blocking of Social Media Platforms,” the Pakistani government ordered Pakistan Telecommunication Authority to block social media platforms including Twitter, Facebook, WhatsApp, YouTube, and Telegram from 11am to 3pm (9.30am GMT) Friday.
The move comes as Pakistan looks to crackdown against a violent terrorist group and prevent troublemakers from disrupting Friday prayers congregations following days of violent protests.
Earlier this week Pakistan banned the Islamist group Tehrik-i-Labaik Pakistan after arresting its leader, which prompted protests, according to local media reports.
An entrepreneur based in Pakistan told TechCrunch that even though the order is supposed to expire at 3pm local time, similar past moves by the government suggests that the disruption will likely last for longer.
Though Pakistan, like its neighbor India, has temporarily cut phone calls access in the nation in the past, this is the first time Islamabad has issued a blanket ban on social media in the country.
Pakistan has explored ways to assume more control over content on digital services operating in the country in recent years. Some activists said the country was taking extreme measures without much explanations.
What kind of national emergency we are dealing with that govt banned entire social media temporarily? These arbitrary decisions of blocking and banning have never done any good instead opened ways to blanket bans.
— Nighat Dad (@nighatdad) April 16, 2021
Good news, Bay Area! Apple Pay now works with Clipper cards.
That means you can now use an iPhone or Apple Watch to pay for BART. Or Muni. Or Caltrain. Or the Ferry! Or (almost) any other transit-related thing you’d otherwise use the plastic Clipper card for.
Clipper has a page outlining the Apple Pay setup process right here.
A few quick but important things to note:
As noted back in February when this was first confirmed as on-the-way, Clipper works with Apple’s “Express Transit” feature. That’s just a fancy way to say that you can tap-to-pay with the digital Clipper card without first needing to punch in your phone’s PIN or using FaceID. On certain newer iPhones, it also lets you keep using the Clipper card for a few hours after your battery has died; a wonderful thing in a pinch, but probably not something you want to rely on regularly.