Facebook is getting into fantasy sports and other types of fantasy games. The company this morning announced the launch of Facebook Fantasy Games in the U.S. and Canada on the Facebook app for iOS and Android. Some games are described as “simpler” versions of the traditional fantasy sports games already on the market, while others allow users to make predictions associated with popular TV series, like “Survivor” or “The Bachelorette.”
The first game to launch is Pick & Play Sports, in partnership with Whistle Sports, where fans get points for correctly predicting the winner of a big game, the points scored by a top player, or other events that unfold during the match. Players can also earn bonus points for building a streak of correct predictions over several days. This game is arriving today.
Image Credits: Facebook
In the months ahead, it will be followed by other games in sports, TV, and pop culture, including Fantasy Survivor, where players choose a set of Castaways from the popular CBS TV show to join their fantasy team and Fantasy “The Bachelorette,” where fans will pick a group of men from the suitors vying for the Bachelorette’s heart and get points based on their actions and events that take place during the show. Other upcoming sports-focused games include MLB Home Run Picks, where players pick the team that they think will hit the most home runs, and LaLiga Winning Streak, where fans predict the team that will win that day.
In addition to top players being featured on leaderboards, games have a social component for those who want to play with friends.
Image Credits: Facebook
Players can create their own fantasy league with friends to compete with one another or against other fans, either publicly or privately. League members can compare scores with each other and will have a place where they can share picks, reactions and comments. This league area resembles a private group on Facebook, as it offers its own compose box for posting only to members and its own dedicated feed. However, the page is designed to support groups with specific buttons to “play” or view the “leaderboard,” among others.
The addition of fantasy games could help Facebook increase the time users spent on its app at a time when the company is facing significant competition in social, namely from TikTok. According to App Annie, the average monthly time spent per user in TikTok grew faster than other top social apps in 2020, including by 70% in the U.S., surpassing Facebook.
Facebook had dabbled in the idea of becoming a second screen companion for live events in the past, but in a different way than fantasy sports and games. Instead, its R&D division tested Venue, which worked as a way for fans to comment on live events which were hosted in the app by well-known personalities.
The new league games will be available from the bookmark menu on the mobile app and in News Feed through notifications.
Heroes, one of the new wave of startups aiming to build big e-commerce businesses by buying up smaller third-party merchants on Amazon’s Marketplace, has raised another big round of funding to double down on that strategy. The London startup has picked up $200 million, money that it will mainly be using to snap up more merchants. Existing brands in its portfolio cover categories like babies, pets, sports, personal health and home and garden categories — some of them, like PremiumCare dog chews, the Onco baby car mirror, gardening tool brand Davaon and wooden foot massager roller Theraflow, category best-sellers — and the plan is to continue building up all of these verticals.
Crayhill Capital Management, a fund based out of New York, is providing the funding, and Riccardo Bruni — who co-founded the company with twin brother Alessio and third brother Giancarlo — said that the bulk of it will be going toward making acquisitions, and is therefore coming in the form of debt.
Raising debt rather than equity at this point is pretty standard for companies like Heroes. Heroes itself is pretty young: it launched less than a year ago, in November 2020, with $65 million in funding, a round comprised of both equity and debt. Other investors in the startup include 360 Capital, Fuel Ventures and Upper 90.
Heroes is playing in what is rapidly becoming a very crowded field. Not only are there tens of thousands of businesses leveraging Amazon’s extensive fulfillment network to sell goods on the e-commerce giant’s marketplace, but some days it seems we are also rapidly approaching a state of nearly as many startups launching to consolidate these third-party sellers.
Many a roll-up play follows a similar playbook, which goes like this: Amazon provides the marketplace to sell goods to consumers, and the infrastructure to fulfill those orders, by way of Fulfillment By Amazon and its Prime service. Meanwhile, the roll-up business — in this case Heroes — buys up a number of the stronger companies leveraging FBA and the marketplace. Then, by consolidating them into a single tech platform that they have built, Heroes creates better economies of scale around better and more efficient supply chains, sharper machine learning and marketing and data analytics technology, and new growth strategies.
What is notable about Heroes, though — apart from the fact that it’s the first roll-up player to come out of the U.K., and continues to be one of the bigger players in Europe — is that it doesn’t believe that the technology plays as important a role as having a solid relationship with the companies it’s targeting, key given that now the top marketplace sellers are likely being feted by a number of companies as acquisition targets.
“The tech is very important,” said Alessio in an interview. “It helps us build robust processes that tie all the systems together across multiple brands and marketplaces. But what we have is very different from a SaaS business. We are not building an app, and tech is not the core of what we do. From the acquisitions side, we believe that human interactions ultimately win. We don’t think tech can replace a strong acquisition process.”
Image Credits: Heroes
Heroes’ three founder-brothers (two of them, Riccardo and Alessio, pictured above) have worked across a number of investment, finance and operational roles (the CVs include Merrill Lynch, EQT Ventures, Perella Weinberg Partners, Lazada, Nomura and Liberty Global) and they say there have been strong signs so far of its strategy working: of the brands that it has acquired since launching in November, they claim business (sales) has grown five-fold.
Collectively, the roll-up startups are raising hundreds of millions of dollars to fuel these efforts. Other recent hopefuls that have announced funding this year include Suma Brands ($150 million); Elevate Brands ($250 million); Perch ($775 million); factory14 ($200 million); Thrasio (currently probably the biggest of them all in terms of reach and money raised and ambitions), Heyday, The Razor Group, Branded, SellerX, Berlin Brands Group (X2), Benitago, Latin America’s Valoreo and Rainforest and Una Brands out of Asia.
The picture that is emerging across many of these operations is that many of these companies, Heroes included, do not try to make their particular approaches particularly more distinctive than those of their competitors, simply because — with nearly 10 million third-party sellers today on Amazon globally — the opportunity is likely big enough for all of them, and more, not least because of current market dynamics.
“It’s no secret that we were inspired by Thrasio and others,” Riccardo said. “Combined with COVID-19, there has been a massive acceleration of e-commerce across the continent.” It was that, plus the realization that the three brothers had the right e-commerce, fundraising and investment skills between them, that made them see what was a ‘perfect storm’ to tackle the opportunity, he continued. “So that is why we jumped into it.”
In the case of Heroes, while the majority of the funding will be used for acquisitions, it’s also planning to double headcount from its current 70 employees before the end of this year with a focus on operational experts to help run their acquired businesses.
Tencent is in advanced stages of talks to lead an investment round in Gurgaon-headquartered Pocket FM, the latest in the Chinese giant’s push to broaden its consumer internet portfolio in the Indian market.
The Chinese firm, which is already an investor in Pocket FM, is in talks to lead a ~20-25 million round in Pocket FM, according to three people with knowledge of the matter. The proposed term values the three-year-old startup between $75 million to $100 million, two people said. Existing investors Times Internet’s Brand Capital and Lightspeed are also participating in the round.
Tencent and Pocket FM declined to comment.
Pocket FM operates an eponymous app that offers users podcasts and audiobooks in English and several Indian languages. On its website, the service says its catalog is over 10,000 hours. The startup works with several creators to produce audiobooks.
The app is available in a freemium model. It has a paid subscription as well as an ad-supported free version.
The investment talks come at a time when a range of Indian startups are beginning to launch in — or expand to — audio category. Indian social network ShareChat, for instance, launched a Clubhouse-like feature earlier this year.
Pocket FM will be Tencent’s latest bet in India’s consumer internet space. The Chinese giant is also an investor in music streaming service Gaana and on-demand video streaming player MX Player.
Tencent slowed its the pace of investments in India last year after New Delhi amended a rule to require Chinese companies to take its approval before backing Indian firms. It has become more active in recent quarters, investing through debt instead of equity with a convertible note.
Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.
The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.
Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.
This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.
Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters
(Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images)
Creator platform OnlyFans is getting out of the porn business. The company announced this week it will begin to prohibit any “sexually explicit” content starting on October 1, 2021 — a decision it claimed would ensure the long-term sustainability of the platform. The news angered a number of impacted creators who weren’t notified ahead of time and who’ve come to rely on OnlyFans as their main source of income.
However, word is that OnlyFans was struggling to find outside investors, despite its sizable user base, due to the adult content it hosts. Some VC firms are prohibited from investing in adult content businesses, while others may be concerned over other matters — like how NSFW content could have limited interest from advertisers and brand partners. They may have also worried about OnlyFans’ ability to successfully restrict minors from using the app, in light of what appears to be soon-to-come increased regulations for online businesses. Plus, porn companies face a number of other issues, too. They have to continually ensure they’re not hosting illegal content like child sex abuse material, revenge porn or content from sex trafficking victims — the latter which has led to lawsuits at other large porn companies.
The news followed a big marketing push for OnlyFans’ porn-free (SFW) app, OFTV, which circulated alongside reports that the company was looking to raise funds at a $1 billion+ valuation. OnlyFans may not have technically needed the funding to operate its current business — it handled more than $2 billion in sales in 2020 and keeps 20%. Rather, the company may have seen there’s more opportunity to cater to the “SFW” creator community, now that it has big names like Bella Thorne, Cardi B, Tyga, Tyler Posey, Blac Chyna, Bhad Bhabie and others on board.
The TikTok logo is seen on an iPhone 11 Pro max. Image Credits: Nur Photo/Getty Images
Earlier this month, Senators Amy Klobuchar (D-MN) and John Thune (R-SD) sent a letter to TikTok CEO Shou Zi Chew, which said they were “alarmed” by the change, and demanded to know what information TikTok will be collecting and what it plans to do with the data. This wouldn’t be the first time TikTok got in trouble for excessive data collection. Earlier this year, the company paid out $92 million to settle a class-action lawsuit that claimed TikTok had unlawfully collected users’ biometric data and shared it with third parties.
Image Credits: Apple
Image Credits: Facebook
Image Source: The Pokémon Company
Image Credits: Sensor Tower
Image Credits: Samsung
South Korea’s GS Retail Co. Ltd will buy Delivery Hero’s food delivery app Yogiyo in a deal valued at 800 billion won ($685 million USD). Yogiyo is the second-largest food delivery app in South Korea, with a 25% market share.
Gaming platform Roblox acquired a Discord rival, Guilded, which allows users to have text and voice conversations, organize communities around events and calendars and more. Deal terms were not disclosed. Guilded raised $10.2 million in venture funding. Roblox’s stock fell by 7% after the company reported earnings this week, after failing to meet Wall Street expectations.
Travel app Hopper raised $175 million in a Series G round of funding led by GPI Capital, valuing the business at over $3.5 billion. The company raised a similar amount just last year, but is now benefiting from renewed growth in travel following COVID-19 vaccinations and lifting restrictions.
Indian quiz app maker Zupee raised $30 million in a Series B round of funding led by Silicon Valley-based WestCap Group and Tomales Bay Capital. The round values the company at $500 million, up 5x from last year.
Danggeun Market, the publisher of South Korea’s hyperlocal community app Karrot, raised $162 million in a Series D round of funding led by DST Global. The round values the business at $2.7 billion and will be used to help the company launch its own payments platform, Karrot Pay.
Bangalore-based fintech app Smallcase raised $40 million in Series C funding round led by Faering Capital and Premji Invest, with participation from existing investors, as well as Amazon. The Robinhood-like app has over 3 million users who are transacting about $2.5 billion per year.
Social listening app Earbuds raised $3 million in Series A funding led by Ecliptic Capital. Founded by NFL star Jason Fox, the app lets anyone share their favorite playlists, livestream music like a DJ or comment on others’ music picks.
U.S. neobank app One raised $40 million in Series B funding led by Progressive Investment Company (the insurance giant’s investment arm), bringing its total raise to date to $66 million. The app offers all-in-one banking services and budgeting tools aimed at middle-income households who manage their finances on a weekly basis.
Indian travel booking app ixigo is looking to raise Rs 1,600 crore in its initial public offering, The Economic Times reported this week.
Trading app Robinhood disappointed in its first quarterly earnings as a publicly traded company, when it posted a net loss of $502 million, or $2.16 per share, larger than Wall Street forecasts. This overshadowed its beat on revenue ($565 million versus $521.8 million expected) and its more than doubling of MAUs to 21.3 million in Q2. Also of note, the company said dogecoin made up 62% of its crypto revenue in Q2.
Image Credits: Polycam
3D scanning software maker Polycam launched a new 3D capture tool, Photo Mode, that allows iPhone and iPad users to capture professional-quality 3D models with just an iPhone. While the app’s scanner before had required the use of the lidar sensor built into newer devices like the iPhone 12 Pro and iPad Pro models, the new Photo Mode feature uses just an iPhone’s camera. The resulting 3D assets are ready to use in a variety of applications, including 3D art, gaming, AR/VR and e-commerce. Data export is available in over a dozen file formats, including .obj, .gtlf, .usdz and others. The app is a free download on the App Store, with in-app purchases available.
Jiobit, the tracking dongle acquired by family safety and communication app Life360, this week partnered with emergency response service Noonlight to offer Jiobit Protect, a premium add-on that offers Jiobit users access to an SOS Mode and Alert Button that work with the Jiobit mobile app. SOS Mode can be triggered by a child’s caregiver when they detect — through notifications from the Jiobit app — that a loved one may be in danger. They can then reach Noonlight’s dispatcher who can facilitate a call to 911 and provide the exact location of the person wearing the Jiobit device, as well as share other details, like allergies or special needs, for example.
When your app redesign goes wrong…
Prominent App Store critic Kosta Eleftheriou shut down his FlickType iOS app this week after too many frustrations with App Review. He cited rejections that incorrectly argued that his app required more access than it did — something he had successfully appealed and overturned years ago. Attempted follow-ups with Apple were ignored, he said.
Anyone have app ideas?
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.
DraftKings is charging into the NFT game, announcing a marketplace aimed at curating sports and entertainment-themed digital collectibles for its audience of enthusiasts. The platform is “debuting later this summer,” and showcases another potentially lucrative expansion for the fantasy sports betting company.
DraftKings is entering a market that is both crowded and sparse — with plenty of NFT marketplace options for today’s niche group of collectors though offerings are still light when considering the billions that have flowed through the space in the first several months of the year. This week, investors gave NFT marketplace OpenSea a $1.5 billion valuation. Dapper Labs, which makes NBA Top Shot, recently raised at a reported $7.5 billion valuation.
Dapper’s existing sway in the space will leave DraftKings pursuing opportunities outside exclusive league partnerships. NBA Top Shot allows players to buy “Moments” from NBA history, clips of actual game and player footage which it has access to via league and players association partnerships. In addition to the NBA, Dapper has already partnered with other leagues.
DraftKings foothold in the space will come from an exclusive partnership with Autograph, a newly-launched NFT startup co-founded by quarterback Tom Brady. The company has inked exclusive NFT deals with some top athletes including Tiger Woods, Wayne Gretzky, Derek Jeter, Naomi Osaka and Tony Hawk, hoping to build out its platform as the hub for sports personality collectibles.
Aside from the partnerships, DraftKings is hoping to get a leg up in the space by further simplifying the user onboarding process, allowing users to buy NFTs without loading a wallet with cryptocurrency, instead purchasing with USD. When the platform launches users will be able to purchase NFTs from DraftKings and resell or trade them through the platform.
For DraftKings, which has raised some $720 million in funding since launch in 2012, the NFT expansion could offer an opportunity of funneling their existing audience into the new vertical. Few existing tech startups have made noteworthy expansions into the NFT world despite plenty of hype and investor interest. DraftKings co-founder Matt Kalish tells TechCrunch that the startup’s devoted community is its biggest asset to winning in the rising space.
“DraftKings has millions of people in our community who show up to out platform every day and every week,” Kalish says. “We think our biggest advantage is the strength and size of our community… [We] will bring a lot of eyeballs to the table.”