

It would be easy to assume that Verizon’s purchase last week of video-conferencing tool BlueJeans was an opportunistic move to capitalize on the sudden shift to remote work, but the ball began rolling last June and has implications far beyond current work-from-home requirements.
The video-chat darling of the moment is Zoom, but BlueJeans is considered by many to be the enterprise tool of choice. The problem, it seems, is that it had grown as far as it could on its own and went looking for a larger partner to help it reach the next level.
BlueJeans started working with Verizon (which owns this publication) as an authorized reseller before the talks turned toward a deeper relationship that culminated in the acquisition. Assuming the deal passes regulatory scrutiny, Verizon will use its emerging 5G technology to produce much more advanced video-conferencing scenarios.
We spoke to the principals involved in this deal and several industry experts to get a sense of where this could lead. As with any large company buying a startup, outcomes are uncertain; sometimes the acquired company gets lost in the larger corporate bureaucracy, and sometimes additional resources will help grow the company much faster than it could have on its own.
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Facebook’s dedicated Gaming app is now live on Android, months before its planned June release. The social media giant pushed the app out two months prior to its scheduled unveiling amid a global pandemic that’s left people all over the world isolated at home, rapidly burning through entertainment options.
The New York Times announced the upcoming release in an exclusive over the weekend, noting that Facebook’s massive gaming investment has culminated in more 700 million of the sites’s 2.5 billion users actively playing games through the platform monthly. The launch of a devoted app is a clear next step for content that has, until now, been the domain of the site’s Gaming tab.
Social engagement is the focus for the app (naturally), which will be getting an iOS version at some point in the near future (pending Apple approval). “It’s entertainment that’s not just a form of passive consumption but entertainment that is interactive and brings people together,” the app’s head Fidji Simo told the paper, later adding, “We’re seeing a big rise in gaming during quarantine.”
Twitch and YouTube are among the biggest competitors for the app’s gaming Go Live streaming feature. Facebook has already has a massive platform in its own Live offering, which is currently seeing high levels of use as isolated users seek some manner of human connection during the COVID-19 shutdown. With Go Live, users can share gaming streams directly to their Facebook page.
Live streaming is the highlighted feature upon launching the app, while a second tab offers game discovery both through your friends’ activities and a by category breakdown. A final tab sports a chat platform.
The app’s arrival comes after a year and a half of testing in various markets, including Latin America and Southeast Asia. Gaming is launching without ad support, though Facebook tells the Times that it plans to monetize by taking commission off of “stars” — donations viewers send to streamers.
It remains to be seen how the Twitch/YouTube method will translate for a platform traditionally more focused on casual gaming titles like Words With Friends. Not all of the service’s attempts to spin off features as devoted apps have been successful, but the rushed timing could give the service an extra boost, as users seek out new forms of content and socializing during a global shutdown.
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Meet Leverice: A team messenger and collaboration platform that’s aiming to compete with b2b giants like Slack by tackling an issue that continues to plague real-time messaging — namely, ‘always-on’ information overload. This means these tools can feel like they’re eating into productivity as much as aiding it. Or else leave users stressed and overwhelmed about how to stay on top of the work comms firehose.
Leverice’s pitch is that it’s been built from the ground up to offer a better triage structure so vital bits of info aren’t lost in rushing rivers of chatter than flow across less structured chat platforms.
It does this by giving users the ability to organize chat content into nested subchannels. So its theory is that hyper structured topic channels will let users better direct and navigate info flow, freeing them from the need to check everything or perform lots of searches in order to find key intel. Instead they can just directly drill down to specific subchannels, tuning out the noise.
The overarching aim is to bring a little asynchronicity to the world of real-time collaboration platforms, per co-founder and COO Daniel Velton.
“Most messaging and collaboration tools are designed for and built around synchronous communications, instant back-and-forth. But most members of remote teams communicate at their own pace — and there was no go-to messaging tool built around asynchronous communications,” he tells TechCrunch.
“We set out to solve that problem, to build a messenger and collaboration platform that breaks rivers down into rivulets. To do that, we needed a tech stack and unique architecture that would allow teams to efficiently work with hundreds of channels and subchannels distributed between scores of channel branches of varying depths. Having that granularity ensures that each little shelf maintains topical integrity.
“We’re not discussing Feature 2.1.1 and 2.1.2 and 2.1.3 and 2.1.4 inside a single ‘Features’ channel, where the discussions would blend together. Each has its own little home.”
Of course Slack isn’t blind to the info-overload issues its platform can generate. Last month it announced “a simpler, more organized Slack”, which includes the ability for users to organize channels, messages and apps into “custom, collapsible sections”. Aka folders.
So how is Leverice’s subchannel architecture a great leap forward on the latest version of Slack — which does let users organize themselves (and is now in the process of being rolled out across its user-base)?
“All structuring (including folders) on other popular messengers is essentially an individual preference setting,” says Velton. “It does not reflect on a teamwide channel tree. It’s definitely a step in the right direction but it’s about each user adding a tiny bit of structure to their own private interface, not having a structure that affects and improves the way an entire team communicates.
“Leverice architecture is based on structuring of channels and subchannels into branches of unlimited depth. This kind of deep structuring is not something you can simply ‘overlay’ on top of an existing messenger that was designed around a single layer of channels. A tremendous number of issues arise when you work with a directory-like structure of infinite depth, and these aren’t easily solved or addressed unless the architecture is built around it.”
“Sure, in Leverice you can build the ‘6-lane autobahns’,” he adds, using an analogy of vehicle traffic on roads to illustrate the concept of a hierarchy of topic channels. “But we are the only messenger where you can also construct a structured network of ‘country roads’. It’s more ‘places’ but each ‘place’ is so narrow and topical that working through it all becomes more manageable, quick and pleasant, and it’s something you can do at your own pace without fear of missing important kernels of information as they fly by on the autobahn.”
To be clear, while Slack has now started letting users self-organize — by creating a visual channel hierarchy that suits them — Leverice’s structure means the same structured tree of channels/subchannels applies for the whole team.
“At the end of the day, for communications to work, somebody on a team needs to be organized,” argues Velton. “What we allow is structuring that affects the channel tree for an entire team, not just an individual preference that reflects only on a user’s local device.”
Leverice has other features in the pipeline which it reckons will further help users cut through the noise — with a plan to apply AI-powered prioritization to surface the most pressing inbound comms.
There will also be automated alerts for conversation forks when new subchannels are created. (Though generating lots of subchannel alerts doesn’t sound exactly noise-free…)
“We have features coming that alert users to forks in a conversation and nudge the user toward those new subchannels. At this stage those forks are created manually, although our upcoming AI module will have nudges based on those forks,” says Velton.
“The architecture (deep structuring) also opens the door to scripting of automated workflows and open source plug-ins,” he adds.
Leverice officially launched towards the end of February after a month-long beta which coincided with the coronavirus-induced spike in remote work.
At this stage they have “members of almost 400 teams” registered on the platform, per Velton, with initial traction coming from mid-size tech companies — who he says are either unhappy with the costs of their current messaging platform or with distraction/burnout caused by “channel fatigue”; or who are facing info fragmentation as internal teams are using different p2p/messaging tools and lack a universal choice.
“We have nothing but love and respect for our competitors,” he adds. “Slack, Teams, WhatsApp, Telegram, Skype, Viber, etc.: each have their own benefits and many teams are perfectly content to use them. Our product is for teams looking for more focus and structure than existing solutions offer. Leverice’s architecture is unique on the market, and it opens the door to powerful features that are neither technically nor practically feasible in a messenger with a single layer containing a dozen or two dozen channels.”
Other differentiating features he highlights as bringing something fresh to the team messaging platform conversation are a whiteboard feature that lets users collaborate in the app for brainstorming or listing ideas, prorities; and a Jira integration for managing and discussing tasks in the project- and issue-tracking tool. The team is planning further integrations including with Zoom, Google Docs and “other services you use most”.
The startup — which was founded by CEO Rodion Zhitomirsky in Minsk but is now headquartered in San Jose, California, also with offices in Munich, Germany — has been bootstrapping development for around two years, taking in angel investment of around $600,000.
“We are three friends who managed complex project-based teams and personally felt the pains of all the popular messengers out there,” says Velton, discussing how they came to set up the business. “We used all the usual suspects, and even tried using p2p messengers as substitutes. They all led us and our teams to the same place: we couldn’t track large amounts of communications unless we were in “always-on” mode. We knew there had to be a better way, so we set out to build Leverice.”
The third co-founder is Dennis Dokutchitz.
Leverice’s business model is freemium, with a free tier, a premium tier, and a custom enterprise tier. As well as offering the platform as SaaS via the cloud, they do on-premise installations — for what Velton describes as “the highest level of security and privacy”.
On the security front the product is not end-to-end encrypted but he says the team is developing e2e encrypted channels to supplement the client-server encryption it applies as standard.
Velton notes these forthcoming channels would not support the usual search features, while AI analysis would be limited to “meta-information analysis”, i.e. excluding posts’ content.
“We don’t process customer or message data for commercial purposes, only for internal analytics and features to improve the product for users,” he adds when asked about any additional uses made of customer data. (Leverice’s Privacy Policy can be found here.)
With remote work the order of the day across most of the globe because of the COVID-19 pandemic, it seems likely there will be a new influx of collaboration tools being unboxed to help home workers navigate a new ‘professionally distant’ normal.
“We’ve only been on the market for 6 weeks and have no meaningful revenue to speak of as of yet,” adds Velton.
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Welcome to a look back at the past week in security and what it means for you. Each week we’ll look at the big news of the week and why it matters.
What will the world look like after the coronavirus pandemic subsides?
Some of us are now in our fifth week of sheltering in place, but there’s no fixed end-date in sight. We’ve gone from a period of confusion and concern to testing and mitigation. Now we’re starting to look ahead at the world post-coronavirus. Things still have to get done. But how do we regain a semblance of normality in the middle of a pandemic?
Tech can be the answer but it’s not a panacea; Apple and Google have explained more about their contact tracing efforts to help better understand the spread of the virus seems promising. But privacy concerns and worries that the system could be abused have raised justified concerns. On the other hand, with a U.S. presidential election slated for later this year, many experts want tech out of the picture in favor of a secure solution that uses paper ballots.
Will tech save the day, or will it kick us while we’re down? Let’s dive in.
This year’s U.S. presidential election will still go ahead — it’s in the constitution as an immutable fact — but a pandemic throws a wrench in the works.
But security experts say electronic voting isn’t secure or resilient enough to protect from foreign interference. Even the more established mobile voting offerings have been shown to be deeply flawed.
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Forget the calendar invite. Just jump into a conversation. That’s the idea powering a fresh batch of social startups poised to take advantage of our cleared schedules amidst quarantine. But they could also change the way we work and socialize long after COVID-19 by bringing the free-flowing, ad-hoc communication of parties and open office plans online. While “Live” has become synonymous with performative streaming, these new apps instead spread the limelight across several users as well as the task, game, or discussion at hand.
The most buzzy of these startups is Clubhouse, an audio-based social network where people can spontaneously jump into voice chat rooms together. You see the unlabeled rooms of all the people you follow, and you can join to talk or just listen along, milling around to find what interests you. High-energy rooms attract crowds while slower ones see participants slip out to join other chat circles.
Clubhouse blew up this weekend on VC Twitter as people scrambled for exclusive invites, humblebragged about their membership, or made fun of everyone’s FOMO. For now, there’s no public app or access. The name Clubhouse perfectly captures how people long to be part of the in-crowd.
Clubhouse was built by Paul Davison, who previously founded serendipitous offline people-meeting location app Highlight and reveal-your-whole-camera-roll app Shorts before his team was acquired by Pinterest in 2016. This year he debuted his Alpha Exploration Co startup studio and launched Talkshow for instantly broadcasting radio-style call-in shows. Spontaneity is the thread that ties Davison’s work together, whether its for making new friends, sharing your life, transmitting your thoughts, or having a discussion.
It’s very early days for Clubhouse. It doesn’t even have a website. There’s no telling exactly what it will be like if or when it officially launches, and Davison and his co-founder Rohan Seth declined to comment. But the positive reception shows a desire for a more immediate, multi-media approach to discussion that updates what Twitter did with text.
What quarantine has revealed is that when you separate everyone, spontaneity is a big thing you miss. In your office, that could be having a random watercooler chat with a co-worker or commenting aloud about something funny you found on the internet. At a party, it could be wandering up to chat with group of people because you know one of them or overhear something interesting. That’s lacking while we’re stuck home since we’ve stigmatized randomly phoning a friend, differing to asynchronous text despite its lack of urgency.
Clubhouse founder Paul Davison. Image Credit: JD Lasica
Scheduled Zoom calls, utilitarian Slack threads, and endless email chains don’t capture the thrill of surprise or the joy of conversation that giddily revs up as people riff off each other’s ideas. But smart app developers are also realizing that spontaneity doesn’t mean constantly interrupting people’s life or workflow. They give people the power to decide when they are or aren’t available or signal that they’re not to be disturbed so they’re only thrust into social connection when they want it.
Houseparty chart ranks via AppAnnie
Houseparty embodies this spontaneity. It’s become the breakout hit of quarantine by letting people on a whim join group video chat rooms with friends the second they open the app. It saw 50 million downloads in a month, up 70X over its pre-COVID levels in some places. It’s become the #1 social app in 82 countries including the US, and #1 overall in 16 countries.
Originally built for gaming, Discord lets communities spontaneously connect through persistent video, voice, and chat rooms. It’s seen a 50% increase in US daily voice users with spikes in shelter-in-place early adopter states like California, New York, New Jersey, and Washington. Bunch, for video chat overlayed on mobile gaming, is also climbing the charts and going mainstream with its user base shifting to become majority female as they talk for 1.5 million minutes per day. Both apps make it easy to join up with pals and pick something to play together.
Enterprise video chat tools are adapting to spontaneity as an alternative to heavy-handed, pre-meditated Zoom calls. There’s been a backlash as people realize they don’t get anything done by scheduling back-to-back video chats all day.
Screen
While visual communication has been the breakout feature of our mobile phones by allowing us to show where we are, shelter-in-place means we don’t have much to show. That’s expanded the opportunity for tools that take a less-is-more approach to spontaneous communication. Whether for remote partying or rapid problem solving, new apps beyond Clubhouse are incorporating voice rather than just video. Voice offers a way to rapidly exchange information and feel present together without dominating our workspace or attention, or forcing people into an uncomfortable spotlight.
High Fidelity is Second Life co-founder Philip Rosedale’s $72 million-funded current startup. After recently pivoting away from building a virtual reality co-working tool, High Fidelity has begun testing a voice and headphones-based online event platform and gathering place. The early beta lets users move their dot around a map and hear the voice of anyone close to them with spatial audio so voices get louder as you get closer to someone, and shift between your ears as you move past them. You can spontaneously approach and depart little clusters of dots to explore different conversations within earshot.
An unofficial mockup of High Fidelity’s early tests. Image Credits: DigitalGlobe (opens in a new window) / Getty Images
High Fidelity is currently using a satellite photo of Burning Man as its test map. It allows DJs to set up in different corners, and listeners to stroll between them or walk off with a friend to chat, similar to the real offline event. Since Burning Man was cancelled this year, High Fidelity could potentially be a candidate for holding the scheduled virtual version the organizers have promised.
Houseparty’s former CEO Ben Rubin and Skype GM of engineering Brian Meek are building a spontaneous teamwork tool called Slashtalk. Rubin sold Houseparty to Fortnite-maker Epic in mid-2019, but the gaming giant largely neglected the app until its recent quarantine-driven success. Rubin left.
His new startup’s site explains that “/talk is an anti-meeting tool for fast, decentralized conversations. We believe most meetings can be eliminated if the right people are connected at the right time to discuss the right topics, for just as long as necessary.” It lets people quickly jump into a voice or video chat to get something sorted without delaying until a calendared collab session.
Slashtalk co-founder Ben Rubin at TechCrunch Disrupt NY 2015
Whether for work or play, these spontaneous apps can conjure times from our more unstructured youth. Whether sifting through the cafeteria or school yard, seeing who else is at the mall, walking through halls of open doors in college dorms, or hanging at the student union or campus square, the pre-adult years offer many opportunities for impromptu social interation.
As we age and move into our separate homes, we literally erect walls that limit our ability to perceive the social cues that signal that someone’s available for unprompted communication. That’s spawned apps like Down To Lunch and Snapchat acquisition Zenly, and Facebook’s upcoming Messenger status feature designed to break through those barriers and make it feel less desperate to ask someone to hang out offline.
But while socializing or collaborating IRL requires transportation logistics and usually a plan, the new social apps discussed here bring us together instantly, thereby eliminating the need to schedule togetherness ahead of time. Gone too are the geographic limits restraining you to connect only with those within a reasonable commute. Digitally, you can pick from your whole network. And quarantines have further opened our options by emptying parts of our calendars.
Absent those frictions, what shines through is our intention. We can connect with who we want and accomplish what we want. Spontaneous apps open the channel so our impulsive human nature can shine through.
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Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support and the money that flows through it all.
The app industry is as hot as ever, with a record 204 billion downloads in 2019 and $120 billion in consumer spending in 2019, according to App Annie’s “State of Mobile” annual report. People are now spending 3 hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.
In this Extra Crunch series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.
This week we’re continuing to look at how the coronavirus outbreak is impacting the world of mobile applications, including a dig into Houseparty’s big surge, layoffs at VSCO, Google’s launch of a “Teacher Reviewed” tag, Bumble’s virtual dating, plus changes to Instagram in support of small business and live streaming, among other things. Also this week, Google changed its Play Store guidelines, TikTok launched parental controls, a report suggested Apple may be expanding its Search Ads and more.
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One of the best tools we have to slow the spread of the coronavirus is, as you have no doubt heard by now, contact tracing. But what exactly is contact tracing, who does it and how, and do you need to worry about it?
In short, contact tracing helps prevent the spread of a virus by proactively finding people at higher risk than others due to potential exposure, notifying them if possible, and quarantining them if necessary. It’s a proven technique, and smartphones could help make it even more effective — but only if privacy and other concerns can be overcome.
Contact tracing has been done in some form or another as long as the medical establishment has understood the nature of contagious diseases. When a person is diagnosed with an infectious disease, they are asked whom they have been in contact with over the previous weeks, both in order to determine who may have been infected by them and perhaps where they themselves were infected.
Until very recently, however, the process has relied heavily on the recall of people who are in a highly stressful situation and, until prompted, were probably not paying special attention to their movements and interactions.
This results in a list of contacts that is far from complete, though still very helpful. If those people can be contacted and their contacts likewise traced, a network of potential infections can be built up without a single swab or blood drop, and lives can be saved or important resources better allocated.
You might think that has all changed now what with modern technology and all, but in fact contact tracing being done at hospitals right now is almost all still of the memory-based kind — the same we might have used a hundred years ago.
It certainly seems as if the enormous digital surveillance apparatus that has been assembled around us over the last decade should be able to accomplish this kind of contact tracing easily, but in fact it’s surprisingly useless for anything but tracking what you are likely to click on or buy.
While it would be nice to be able to piece together a contagious person’s week from a hundred cameras spread throughout the city and background location data collected by social media, the potential for abuse of such a system should make us thankful it is not so easy as that. In other, less dire circumstances the ability to track the exact movements and interactions of a person from their digital record would be considered creepy at best, and perhaps even criminal.
But it’s one thing when an unscrupulous data aggregator uses your movements and interests to target you with ads without your knowledge or consent — and quite another when people choose to use the forbidden capabilities of everyday technology in an informed and limited way to turn the tide of a global pandemic. And that’s what modern digital contact tracing is intended to do.
All modern mobile phones use wireless radios to exchange data with cell towers, Wi-Fi routers, and each other. On their own, these transmissions aren’t a very good way to tell where someone is or who they’re near — a Wi-Fi signal can travel 100 to 200 feet reliably, and a cell signal can go miles. Bluetooth, on the other hand, has a short range by design, less than 30 feet for good reception and with a swiftly attenuating signal that makes it unlikely to catch a stray contact from much further out than that.
We all know Bluetooth as the way our wireless earbuds receive music from our phones, and that’s a big part of its job. But Bluetooth, by design, is constantly reaching out and touching other Bluetooth-enabled devices — it’s how your car knows you’ve gotten into it, or how your phone detects a smart home device nearby.
Bluetooth chips also make brief contact without your knowledge with other phones and devices you pass nearby, and if they aren’t recognized, they delete each other from their respective memories as soon as possible. But what if they didn’t?
The type of contact tracing being tested and deployed around the world now uses Bluetooth signals very similar to the ones your phone already transmits and receives constantly. The difference is it just doesn’t automatically forget the other devices it comes into contact with.
Assuming the system is working correctly, what would happen when a person presents at the hospital with COVID-19 is basically just a digitally enhanced version of manual contact tracing. Instead of querying the person’s fallible memory, they query the phone’s much more reliable one, which has dutifully recorded all the other phones it has recently been close enough to connect to. (Anonymously, as we’ll see.)
Those devices — and it’s important to note that it’s devices, not people — would be alerted within seconds that they had recently been in contact with someone who has now been diagnosed with COVID-19. The notification they receive will contain information on what the affected person can do next: Download an app or call a number for screening, for instance, or find a nearby location for testing.
The ease, quickness, and comprehensiveness of this contact tracing method make it an excellent opportunity to help stem the spread of the virus. So why aren’t we all using it already?
In fact digital contact tracing using the above method (or something very like it) has already been implemented with millions of users, apparently to good effect, in east Asia, which of course was hit by the virus earlier than the U.S. and Europe.
In Singapore the TraceTogether app was promoted by the government as the official means for contact tracing. South Korea saw the voluntary adoption of a handful of apps that tracked people known to be diagnosed. Taiwan was able to compare data from its highly centralized healthcare system to a contact tracing system it began work on during the SARS outbreak years ago. And mainland China has implemented a variety of tracking procedures through mega-popular services like WeChat and Alipay.
While it would be premature to make conclusions on the efficacy of these programs while they’re still underway, it seems at least anecdotally to have improved the response and potentially limited the spread of the virus.
But east Asia is a very different place from the U.S.; we can’t just take Taiwan’s playbook and apply it here (or in Europe, or Africa, etc.), for myriad reasons. There are also valid questions of privacy, security, and other matters that need to be answered before people, who for good reason are skeptical of the intentions of both the government and the private sector, will submit to this kind of tracking.
Right now there are a handful of efforts being made in the U.S., the largest profile by far being the collaboration between arch-rivals Apple and Google, which have proposed a cross-platform contact tracing method that can be added to phones at the operating system.
The system they have suggested uses Bluetooth as described above, but importantly does not tie it to a person’s identity in any way. A phone would have a temporary ID number of its own, and as it made contact with other devices, it exchanges numbers. These lists of ID numbers are collected and stored locally, not synced with the cloud or anything. And the numbers also change frequently so no single one can be connected to your device or location.
If and only if a person is determined to be infected with the virus, a hospital (not the person) is authorized to activate the contact tracing app, which will send a notification to all the ID numbers stored in the person’s phone. The notification will say that they were recently near a person now diagnosed with COVID-19 — again, these are only ID numbers generated by a phone and are not connected with any personal information. As discussed earlier, the people notified can then take whatever action seems warranted.
MIT has developed a system that works in a very similar way, and which some states are reportedly beginning to promote among their residents.
Naturally even this straightforward, decentralized, and seemingly secure system has its flaws; this article at the Markup gives a good overview, and I’ve summarized them below:
Contact tracing is an important part of the effort to curb the spread of the coronavirus, and whatever method or platform is decided on in your area — it may be different state to state or even between cities — it is important that as many people as possible take part in order to make it as effective as possible.
There are risks, yes, but the risks are relatively minor and the benefits would appear to outweigh them by orders of magnitude. When the time comes to opt in, it is out of consideration for the community at large that one should make the decision to do so.
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Crowdfunding platform for startups Republic has acquired crowdfunding platform for games Fig, joining forces to help creators get their ideas off the ground. Users of each service will be happy to know they’ll continue as-is for the foreseeable future.
The model of publicly accessible micro-equity has proven an effective one, and both platforms have recent successes under their belts. Startups of a wide variety have raised hundreds of thousands on Republic, while Fig has had a great year with games like the critically acclaimed (and popular) Outer Wilds and What the Golf.
The scale of the sites is small compared with Kickstarter and Indiegogo, but the projects are more carefully curated and, although they are all crowdfunding platforms, the Republic/Fig model is different, awarding equity rather than product. Or in addition to product — who can resist wanting to have their own weird new Intellivision console?
The terms of the acquisition were not disclosed, but the general idea is to merge the two sites without compromising either. Ideally both will see an increased audience, and users will see an increased variety of projects to potentially back. Gaming is a growing area of investment, especially niche indie games that might be the next big unexpected hit, so Republic saw Fig as a natural extension of its existing platform.
“One of the best things going for Fig is how successful they’ve been in making positive returns for investors. Capital raised is used to develop the game, games are sold, and sales revenue is shared with investors,” said Republic Funding Portal CEO Chuck Pettid in a statement sent to TechCrunch. “Most private investments take 7-10 years for investors to get meaningful returns. Fig has accelerated that outcome and even boasts 3 straight years (2017, 2018 and 2019) of positive returns for investors. There isn’t another crowdfunding platform in the world that can say that.”
Fig’s CEO, Justin Bailey, will stay on as a board member at Republic and help guide the intelligent integration of the two sites.
“Fig will continue on and over time will slowly become a part of Republic,” he said. “Republic will keep the core parts of Fig’s community publishing platform and then add in its ingredients such as its commitment to diversity which will create an even stronger platform for indie game developers. In the end, Fig’s mission is to help support independent developers and making games possible that wouldn’t be.”
Both CEOs went out of their way to mention that the sites especially value underserved and underrepresented groups, which may find crowdfunding the only way to collect enough capital to pursue an idea. “More than half of the campaigns featured on Republic have come from underrepresented founders,” said Pettid. “In the past few years, the tech and video game industry has pushed the diversity message, but not enough is being done.”
Bailey noted that the pandemic has led to a major disruption of traditional investment methods. Crowdfunding is already successful, but in the modified post-coronavirus world it may be even more valid.
“Developers should always be rethinking how to raise funding,” he said. “Innovation and creative thinking leads to the best campaigns, and we will be there to assist them.”
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Before the COVID-19 pandemic shook up the world and reshaped the economy, Boston was quietly setting records.
According to new venture data compiled by TechCrunch, the region set what was at least a local maximum in venture capital raised in the space of a single quarter in Q1 2020.
But while Boston’s startup market announced a number of huge rounds that bolstered its total venture dollars raised in the first quarter, there were signs of weakness: Deal volume was its best since Q2 2019, according to a set of data compiled and released by PwC and CB Insights, but was still a little under the pace set in 2018.
So Boston’s startups raised lots of money, but couldn’t match prior highs when it came to the number of checks written. And those results were largely recorded before COVID-19 shuttered the city. Since then, we’ve seen a number of area startups lay off staff, something we explored last week.
Now, with fresh data in hand, we can take a closer look at the city’s first quarter of 2020. To better understand what we’re unpacking, we asked a number of local venture capitalists to weigh in. Let’s look back at Boston’s Q1 as we stride into Q2 with the help of Venture Lane, .406 Ventures, Volition Capital and Flybridge Capital Partners.
Starting with a programming note is counter-flow, but bear with us. TechCrunch is starting a regular, monthly series on Boston and its startup market. This is a second prelude of sorts. Normally we’d hold news and interviews for a later date so that we’d have plenty of material for a column. In the face of relentless change, however, we didn’t want to hold off on reporting and synthesizing new information. When things are more normal, our pace will follow.
Per PwC and CB Insights, here’s the last few quarters of data, along with a few yearly totals to draw you the picture we can now see:
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Another startup has turned to downsizing and fund raising to help weather the uncertainty around the economy amid the global coronavirus health pandemic. People.ai, a predictive sales startup backed by Andreessen Horowitz, Iconic, Lightspeed and other investors and last year valued at around $500 million, has laid off around 30 people, working out to about 18% of staff, TechCrunch has learned and confirmed.
Alongside that, the company has quietly raised a debt round in the “tens of millions of dollars” to make strategic investments in new products and potentially other moves.
Oleg Rogynskyy, the founder and CEO, said the layoffs were made not because business has slowed down, but to help the company shore up for whatever may lie ahead.
“We still have several years of runway with what we’ve raised,” he noted (it has raised just under $100 million in equity to date). “But no one knows the length of the downturn, so we wanted to make sure we could sustain the business through it.”
Specifically, the company is reducing its international footprint — big European customers that it already has on its books will now be handled from its U.S. offices rather than local outposts — and it is narrowing its scope to focus more on the core verticals that make up the majority of its current customer base.
He gave as an example the financial sector. “We create huge value for financial services industry but have moved the functionality for them out to next year so that we can focus on our currently served industries,” he said.
People.ai’s software tracks the full scope of communication touch points between sales teams and customers, supposedly negating the tedious manual process of activity logging for SDRs. The company’s machine learning tech is also meant to generate the average best way to close a deal — educating customer success teams about where salespeople may be deviating from a proven strategy.
People.ai is one of a number of well-funded tech startups that is making hard choices on business strategy, costs and staffing in the current climate.
Layoffs.fyi, which has been tallying those losing their jobs in the tech industry in the wake of the coronavirus (it’s based primarily on public reports with a view to providing lists of people for hire), says that as of today, there have been nearly 25,000 people laid off from 258 tech startups and other companies. With companies like Opendoor laying off some 600 people earlier this week, the numbers are ratcheting up quickly: just seven days ago, the number was just over 16,000.
In that context, People.ai cutting 30 may be a smaller increment in the bigger picture (even if for the individuals impacted, it’s just as harsh of an outcome). But it also underscores one of the key business themes of the moment.
Some businesses are getting directly hit by the pandemic — for example, house sales and transportation have all but halted, leaving companies in those categories scrambling to figure out how to get through the coming weeks and months and prepare for a potentially long haul of life and consumer and business behavior not looking like it did before January.
But other businesses, like People.ai, which provides predictive sales tools to help salespeople do their jobs better, is (for now at least) falling into that category of IT still in demand, perhaps even more than ever in a shrinking economy. In People.ai’s case, software to help salespeople have better sales conversations and ultimately conversions at a time when many customers might not be as quick to buy things is an idea that sells right now (so to speak).
Rogynskyy noted that more than 90% of customers that are up for renewal this quarter have either renewed or expanded their contracts, and it has been adding new large customers in recent weeks and months.
The company has also just closed a round of debt funding in the “tens of millions” of dollars to use for strategic investments.
It’s not disclosing the lender right now, but it opted for debt in part because it still has most of its most recent round — $60 million raised in May 2019 led by Iconic — in the bank. Although investors would have been willing to invest in another equity round, given that the company is in a healthy position right now, Rogynskyy said he preferred the debt option to have the money without the dilution that equity rounds bring.
The money will be used for strategic purposes and considering how to develop the product in the current climate. For example, with most people now working from home, and that looking to be a new kind of “normal” in office life (if not all the time, at least more of the time), that presents a new opportunity to develop products tailored for these remote workers.
There have been some M&A moves in tech in the last couple of weeks, and from what we understand People.ai has been approached as well as a possible buyer, target and partner. All of that for now is not something the company is considering, Rogynskyy said. “We’re focused on our own future growth and health and making sure we are here for a long time.”
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