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TCL leaks foretell a weird future for foldable phones

Foldables are going to get weird. And I’m here for it. Just check out these leaked TCL renders from CNET. All manner of strange and wonderful folding devices — two tablets and three smartphones, including one that flips all the way around into a Futurama-style bracelet. There are renders for tablets and phones that fold both in and out.

Granted, few if any will actually come to fruition, but if this first wave of foldables opens up smartphone design in new and interesting ways like these, the industry will be all the better for it. Of course, we’re still in the early stages of all of this — and the first wave of foldables have yet to prove themselves of interest to the smartphone-buying audience beyond simple novelties.

We’ll be seeing a fair bit more of the space week at Mobile World Congress, along with Wednesday’s Samsung event, which is expected to give us another peek at the upcoming Galaxy foldable. For now, however, the Royale FlexPai is the only device that’s actually come to market, and that one still feels like little more than a developer product.

However, while TCL’s not a household name here in the space, the Chinese company certainly has experience in the display department, both through its TV business of the same name and smartphone brands like Alcatel, Palm and BlackBerry.

These sorts of renders are probably pretty standard for all companies currently experimenting with a flexible form factor. If there’s one thing all of the announced devices have proven, it’s that the industry is still a ways away from settling on a consistent design language for these devices. And it’s certainly possible that the industry will never settle on a consistent form factor.

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Instagram’s fundraiser stickers could lure credit card numbers

Mark Zuckerberg recently revealed that commerce is a huge part of the 2019 road map for Facebook’s family of apps. But before people can easily buy things from Instagram etc., Facebook needs their credit card info on file. That’s a potentially lucrative side effect of Instagram’s plan to launch a Fundraiser sticker in 2019. Facebook’s own Donate buttons have raised $1 billion, and bringing them to Instagram’s 1 billion users could do a lot of good while furthering Facebook’s commerce strategy.

New code and imagery dug out of Instagram’s Android app reveals how the Fundraiser stickers will allow you to search for nonprofits and add a Donate button for them to your Instagram Story. After you’ve donated to something once, Instagram could offer instant checkout on stuff you want to buy using the same payment details.

Back in 2013 when Facebook launched its Donate button, I suggested that it could add a “remove credit card after checkout” option to its fundraisers if it wanted to make it clear that the feature was purely altruistic. Facebook never did that. You still need to go into your payment settings or click through the See Receipt option after donating and then edit your account settings to remove your credit card. We’ll see if Instagram is any different. We’ve also asked whether Instagrammers will be able to raise money for personal causes, which would make it more of a competitor to GoFundMe — which has sadly become the social safety net for many facing healthcare crises.

Facebook mentioned at its Communities Summit earlier this month that it’d be building Instagram Fundraiser stickers, but the announcement was largely overshadowed by the company’s reveal of new Groups features. This week, TechCrunch tipster Ishan Agarwal found code in the Instagram Android app detailing how users will be able search for nonprofits or browse collections of Suggested charities and ones they follow. They can then overlay a Donate button sticker on their Instagram Story that their followers can click through to contribute.

We then asked reverse-engineering specialist Jane Manchun Wong to take a look, and she was able to generate the screenshots seen above that show a green heart icon for the Fundraiser sticker plus the nonprofit search engine. A Facebook spokespeople tells me that “We are in early stages and working hard to bring this experience to our community . . . Instagram is all about bringing you closer to the people and things you love, and a big part of that is showing support for and bringing awareness to meaningful communities and causes. Later this year, people will be able to raise money and help support nonprofits that are important to them through a donation sticker in Instagram Stories. We’re excited to bring this experience to our community and will share more updates in the coming months.”

Zuckerberg said during the Q4 2018 earnings call last month that “In Instagram, one of the areas I’m most excited about this year is commerce and shopping . . . there’s also a very big opportunity in basically enabling the transactions and making it so that the buying experience is good.” Streamlining those transactions through saved payment details means more people will complete their purchase rather than abandoning their cart. Facebook CFO David Wehner noted on the call that “Continuing to build good advertising products for our e-commerce clients on the advertising side will be a more important contributor to revenue in the foreseeable future.” Even though Facebook isn’t charging a fee on transactions, powering higher commerce conversion rates convinces merchants to buy more ads on the platform.

With all the talk of envy spiraling, phone addiction, bullying and political propaganda, enabling donations is at least one way Instagram can prove it’s beneficial to the world. Snapchat lacks formal charity features, and Twitter appears to have ended its experiment allowing nonprofits to tweet donate buttons. Despite all the flack Facebook rightfully takes, the company has shown a strong track record with philanthropy that mirrors Zuckerberg’s own $47 billion commitment through the Chan Zuckerberg Initiative. And if having some relatively benign secondary business benefit speeds companies toward assisting nonprofits, that’s a trade-off we should be willing to embrace.

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Apple could be looking for its next big revenue model

Apple has always been an evolving company. While it never really invented any product categories, it always seemed to make those product categories work better and smarter. It also found a way to make us want them, even when they were more expensive. Today, the WSJ reports, Apple is trying to find its way to a future without the iPhone at the center of its revenue model.

This shift happens as Apple reported lower revenue for the first time in years against a backdrop of flagging iPhone demand. Part of the problem is a shifting Chinese market, but it’s also due to people simply taking longer to refresh their phones. As that happens, and the price of iPhones soared to more than $1,000, there has been a decline in sales.

With iPhone sales down 15 percent, this was not a typical Apple earnings report, but it was something the company had anticipated when it announced lower Q1 guidance at the beginning of the year. If The Wall Street Journal story is accurate, Apple is already trying to take steps to move the company into its next phase, possibly as a services business.

If that’s the case, it would mark a radical departure from the company’s history in which it has redesigned various types of hardware, bucking popular design trends along the way. Back in the 1970s and 1980s when it was called Apple Computer, Steve Jobs and Steve Wozniak made computers with a GUI when most people were working from the DOS prompt.

In the early 2000s, Apple came out with an MP3 player called the iPod and opened a music store called iTunes. By 2006, the year before it would introduce the iPhone, Apple had sold more than 42 million units and 850 million songs. It was a combination of hardware and services that helped transform a flagging company into a powerhouse.

In 2007, when Apple introduced the iPhone, it knew that it would begin to eat into iPod sales, and it eventually did, but it didn’t matter because it was the next logical step forward. When it introduced the App Store in 2008, the iPhone became more than a standalone piece of hardware. It was a new kind of hardware-service model and it would generate incredible wealth for the company.

The iPad came along in 2009 and the Apple Watch five years later, in 2014. While each has done reasonably well, nothing has touched the success of the iPhone. Keep in mind that analysts estimated that Apple sold 71 million iPhones last quarter, and this was in a quarter in which sales declined. It’s hard to sell 71 million units of anything in a three-month period and have it be a down quarter.

What comes next is probably some combination of entertainment/content and making use of advancing technologies like AR/VR, driverless cars and artificial intelligence. It’s unclear which direction Apple will take in these areas, but we do know that recent hires and acquisitions point in these directions.

There has long been speculation that Apple could make a splashy acquisition in the content area. When Eddie Cue, Apple senior vice president of internet software and services was interviewed by CNN’s Dylan Byers at South by Southwest last year, Buyers specifically asked Cue about buying a property like Netflix or Disney. He implied that it was about taking the Apple TV and combining that with a big-name content production company.

Cue indicated that the two companies were great partners for Apple TV, but he wasn’t ready to commit to anything along those lines. “Generally, in the history of Apple, we haven’t made huge acquisitions.” He went on to explain, from Apple’s perspective, it wants to figure out where the future is and to build something to get it there, rather than buying something that is working for the current state of affairs.

It’s worth noting that Apple TV has not matched the huge success of its other devices, but service revenue has been growing steadily. In the most recent earnings report, Apple reported services revenue of $10.9 billion, up 19 percent year over year. That’s still a small percentage of the overall $84.3 billion the company reported for the quarter, but it is growing.

Regardless, nobody can know if Apple can approach the success with any product that it has had with the iPhone. But it knows that in spite of its vast riches, it’s dangerous for any company to rest on its past success. So it looks ahead and hires new blood and looks for a future with less dependence on the iPhone because it knows, as the Grateful Dead once sang, “You can’t go back and you can’t stand still. If the thunder won’t get you, then the lightning will.” Apple is hoping to avoid that fate, and perhaps it is some new combination of hardware, content and services that could lead the way.

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Study says US Twitch streamers raked in roughly $87 million in 2017

A new study estimates that revenue-earning American Twitch streamers grew to nearly 9,800 in 2017 (a 59 percent increase from 2016) and made an estimated $87.1 million (representing a 30 percent YOY increase).

Twitch is one of the fastest-growing platforms for American content creators. In terms of year over year growth in number of creators themselves, Twitch falls just behind Instagram and YouTube, and ranks second behind Instagram in YOY revenue growth for those creators. (Fun Fact: Instagram’s creator-based revenue growth grew nearly 50 percent from 2016 to 2017 to $460 million, according to the study.)

Recreate Coalition says these numbers are very conservative based on the methodology of the study and the fact that it’s limited to the U.S.

The growth of Twitch is predicated on a few obvious trends, as well as a very nuanced relationship between a streamer and his or her respective audience.

In the case of the former, “live” digital experiences continue to be a fascination for startups and consumers alike. While Twitch and YouTube have offered live broadcasts for a while, social media companies have followed along with their own live-streaming products. In fact, Betaworks dedicated a season of its accelerator program to “live” startups, calling the program LiveCamp.

With regards to the latter, things get more interesting. The relationship between a viewer and a streamer is similar to our relationships with other famous celebrities, artists and athletes, but puts the viewer far closer to the action.

Streamers don’t just pop up briefly in articles, TV interviews or on Twitter or Instagram. They spend hours and hours each day just sitting there, doing whatever it is they do on stream and chatting with their viewers. You can get to know their personality, talk to them and they talk back to you!

It’s a bizarre combination that has proven financially fruitful for these streamers, especially at a time when the gaming industry itself is growing by double-digit percentages YOY for the past two years.

A tier of elite, hyper-popular streamers such as Shroud, DrDisrespect, Dakotaz and of course Ninja are leading the way for others as they continue to gain followers. In fact, Ninja just partnered with Wicked Cool Toys to introduce to the market a line of actual toys. Ninja himself made nearly $10 million in 2018.

But as the gaming world explores new genres and esports grow, there seems to be plenty of room for streamers to make a name (and a pretty penny) for themselves.

Editor’s Note: An earlier version of this post included a few too many zeroes, stating that U.S. Twitch streamers made $87 billion instead of $87 million. It has been corrected for accuracy with my apologies.

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Alan raises another $45 million for its health insurance product

Paris-based startup Alan has raised a Series B round of funding of $45 million (€40 million). Index Ventures is once again leading the round, with partners of DST Global also participating. The company had raised a $28 million funding round only 10 months ago.

Alan is a software-as-a-service startup tackling a very specific industry: the health insurance market in France — and soon across Europe. The company wants to create a well-designed insurance product with transparent pricing and policies to make healthcare more accessible. And it isn’t just a marketplace — the startup has obtained an official health insurance license and is the first new health insurance company in France in 30 years.

In France, every employee is covered by the national healthcare system for basic reimbursements, as well as a private insurance company for more expensive treatments. In addition to that, legacy insurance companies have neglected those products as they usually don’t generate a lot of margins on that segment. It creates a huge market opportunity for Alan.

With today’s funding announcement, the startup has shared some numbers. In 2018 alone, the company grew from 5,000 insured people to 27,000, and revenue jumped from $4 million to $25 million (€3.5 million to €22 million). Alan has been focused on freelancers as well as small and medium companies, such as My Little Paris, Le Slip Français, Ledger and Converteo.

More interestingly, Alan is close to break-even right now with 64 employees. That gives you an idea of Alan’s margins.

Following today’s funding round, the company is going to hire a lot more people. There should be around 175 people working for Alan by the end of the year.

On the product front, the company is always looking at ways to make the experience as seamless as possible. “We’re trying to make the insurance process instantaneous, from quotes to coverage and reimbursements” co-founder and CEO Jean-Charles Samuelian told me.

But Alan has always been about healthcare at large, not just insurance products. So let’s see how they can use this influx of funding to simplify healthcare in general.

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Razer is closing its game store after less than a year

Razer is one of the dominant brands in gaming when it comes to buying equipment to play, but one of its biggest efforts to own a larger slice of digital spending hasn’t gone according to plan. After less than a year, the company announced it will close its digital game store at the end of this month “as part of realignment plans.”

The Razer Game Store launched worldwide in April 2018 with the aim of taking a slice of a game sales business that is dominated by Steam. Razer’s offering tied into its gamer credit (virtual currency) strategy to incentivize its customers to buy hardware and digital content with the promise of discounts. The company didn’t comment on why the store is closing, but you’d imagine that it didn’t go as well as Razer had hoped.

It sure takes a lot to bite into digital game sales, but the rewards are potentially lucrative.

Steam made $4.7 billion in 2017 (we don’t yet know its total for 2018) and Epic Games, buoyed by the runaway success of Fortnite, banked a $3 billion profit last year across its entire business, sources previously told TechCrunch.

Amazon-owned Twitch — which dominates the live-streaming space — had its own store before it closed, while Epic launched a very competitive offering at the end of 2018. The Epic Games Store, though, is fairly sparsely populated at this point. It is a long-term project, but the fact that even a company of the size and influence of Epic needs time goes to show the struggle that any new entrant will face.

The Razer Game Store will close on February 28

The Razer Game Store will close its doors at 1am PST February 28. All purchased games will continue to work and pre-ordered titles will ship as planned, according to Razer. Discount vouchers must be used before that date, however.

In a Q&A accompanying the announcement, Razer said it would “continue bringing games to gamers via other services.”

“We will be investing in other ways to deliver great content and introduce game promotions through Razer Gold, our virtual credits system,” the company said, perhaps hinting at tie-ins with other game stores in the future.

Razer went public with an IPO in Hong Kong in 2017.

Note: The original version of this post has been updated to correct that Twitch’s store has in fact already closed, such is the challenge of rivaling Steam. Thank you to reader James Binns for spotting the error and writing in.

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GoCardless raises $75M Series E for its recurring payments network and heads to America

Compared to startups born into the frothy London fintech space as it exists today, 2011-founded GoCardless could well be considered a slow burner. However, in more recent years, the nearly 300-person company — headed by co-founder and CEO Hiroki Takeuchi — has undoubtedly stepped on the gas in a bid to become the one-stop shop globally for businesses that want to let customers pay via recurring bank payments.

A little over a year ago, GoCardless announced that it had raised $22.5 million in further funding, off the back of record annual growth in the U.K. and strong early traction in new markets. And today the fintech is disclosing another fresh injection of capital: $75 million in Series E funding, in part to fund new offices across EMEA, APAC and North America. In addition to its London HQ, the company already has sites in France, Australia and Germany, from which it says it processes transactions for 40,000 businesses worldwide.

Leading the round are new investors Adams Street Partners, Google Ventures and Salesforce Ventures. Previous backers Accel Partners, Balderton Capital, Notion Capital and Passion Capital also followed on.

In a call with Takeuchi late last week, he picked up on a familiar theme, describing the collection of recurring payments for many business as “broken.” Accessing the various bank to bank payments schemes has traditionally been difficult from a commercial, compliance and technical point of view. Instead, businesses have typically relied on payment methods, such as card payments or cheques, which aren’t up to the job of recurring payments.

That’s because these payment options are designed for one-off transactions (cards, for example, expire, breaking the payment flow). Meanwhile, there’s been a rise in subscription business models and an expanding B2B market in which contractors and partners need to make regular variable payments. According to Takeuchi, this means an international recurring payments network like the one GoCardless is building is needed more than ever.

“A global network for bank debit is an absolute necessity in allowing businesses to easily collect recurring payments anywhere, in any currency,” he says. “Thanks to the support of our investors we can now open up our global network and payments platform to more businesses across the world, delivering on our mission to take the pain out of getting paid, so that businesses can focus on what they do best.”

Takeuchi also tells me GoCardless is investing heavily in its product, with a product team of around 100 members. He declined to go into much detail with regards to GoCardless’ immediate or more long-term roadmap, although currency conversion is one area the company is developing new products for. It’s not clear if that will be via an FX partner, such as London neighbour TransferWise, or a more homegrown solution, although the former seems more likely. Takeuchi wouldn’t be drawn on any specifics.

Other areas of development include products to help businesses boost cash flow via “instant settlement,” and smarter payment features to increase transaction success rates. The latter could include using open banking to check if funds are available before trying to process a bank debit, or to automatically set the most appropriate payment date.

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How to read fiction to build a startup

“The book itself is a curious artefact, not showy in its technology but complex and extremely efficient: a really neat little device, compact, often very pleasant to look at and handle, that can last decades, even centuries. It doesn’t have to be plugged in, activated, or performed by a machine; all it needs is light, a human eye, and a human mind. It is not one of a kind, and it is not ephemeral. It lasts. It is reliable. If a book told you something when you were 15, it will tell it to you again when you’re 50, though you may understand it so differently that it seems you’re reading a whole new book.”—Ursula K. Le Guin

Every year, Bill Gates goes off-grid, leaves friends and family behind, and spends two weeks holed up in a cabin reading books. His annual reading list rivals Oprah’s Book Club as a publishing kingmaker. Not to be outdone, Mark Zuckerberg shared a reading recommendation every two weeks for a year, dubbing 2015 his “Year of Books.” Susan Wojcicki, CEO of YouTube, joined the board of Room to Read when she realized how books like The Evolution of Calpurnia Tate were inspiring girls to pursue careers in science and technology. Many a biotech entrepreneur treasures a dog-eared copy of Daniel Suarez’s Change Agent, which extrapolates the future of CRISPR. Noah Yuval Harari’s sweeping account of world history, Sapiens, is de rigueur for Silicon Valley nightstands.

This obsession with literature isn’t limited to founders. Investors are just as avid bookworms. “Reading was my first love,” says AngelList’s Naval Ravikant. “There is always a book to capture the imagination.” Ravikant reads dozens of books at a time, dipping in and out of each one nonlinearly. When asked about his preternatural instincts, Lux Capital’s Josh Wolfe advised investors to “read voraciously and connect dots.” Foundry Group’s Brad Feld has reviewed 1,197 books on Goodreads and especially loves science fiction novels that “make the step function leaps in imagination that represent the coming dislocation from our current reality.”

This begs a fascinating question: Why do the people building the future spend so much of their scarcest resource — time — reading books?

Image by NiseriN via Getty Images. Reading time approximately 14 minutes.

Don’t Predict, Reframe

Do innovators read in order to mine literature for ideas? The Kindle was built to the specs of a science fictional children’s storybook featured in Neal Stephenson’s novel The Diamond Age, in fact, the Kindle project team was originally codenamed “Fiona” after the novel’s protagonist. Jeff Bezos later hired Stephenson as the first employee at his space startup Blue Origin. But this literary prototyping is the exception that proves the rule. To understand the extent of the feedback loop between books and technology, it’s necessary to attack the subject from a less direct angle.

David Mitchell’s Cloud Atlas is full of indirect angles that all manage to reveal deeper truths. It’s a mind-bending novel that follows six different characters through an intricate web of interconnected stories spanning three centuries. The book is a feat of pure M.C. Escher-esque imagination, featuring a structure as creative and compelling as its content. Mitchell takes the reader on a journey ranging from the 19th century South Pacific to a far-future Korean corpocracy and challenges the reader to rethink the very idea of civilization along the way. “Power, time, gravity, love,” writes Mitchell. “The forces that really kick ass are all invisible.”

The technological incarnations of these invisible forces are precisely what Kevin Kelly seeks to catalog in The Inevitable. Kelly is an enthusiastic observer of the impact of technology on the human condition. He was a co-founder of Wired, and the insights explored in his book are deep, provocative, and wide-ranging. In his own words, “When answers become cheap, good questions become more difficult and therefore more valuable.” The Inevitable raises many important questions that will shape the next few decades, not least of which concern the impacts of AI:

“Over the past 60 years, as mechanical processes have replicated behaviors and talents we thought were unique to humans, we’ve had to change our minds about what sets us apart. As we invent more species of AI, we will be forced to surrender more of what is supposedly unique about humans. Each step of surrender—we are not the only mind that can play chess, fly a plane, make music, or invent a mathematical law—will be painful and sad. We’ll spend the next three decades—indeed, perhaps the next century—in a permanent identity crisis, continually asking ourselves what humans are good for. If we aren’t unique toolmakers, or artists, or moral ethicists, then what, if anything, makes us special? In the grandest irony of all, the greatest benefit of an everyday, utilitarian AI will not be increased productivity or an economics of abundance or a new way of doing science—although all those will happen. The greatest benefit of the arrival of artificial intelligence is that AIs will help define humanity. We need AIs to tell us who we are.”

It is precisely this kind of an AI-influenced world that Richard Powers describes so powerfully in his extraordinary novel The Overstory:

“Signals swarm through Mimi’s phone. Suppressed updates and smart alerts chime at her. Notifications to flick away. Viral memes and clickable comment wars, millions of unread posts demanding to be ranked. Everyone around her in the park is likewise busy, tapping and swiping, each with a universe in his palm. A massive, crowd-sourced urgency unfolds in Like-Land, and the learners, watching over these humans’ shoulders, noting each time a person clicks, begin to see what it might be: people, vanishing en masse into a replicated paradise.”

Taking this a step further, Virginia Heffernan points out in Magic and Loss that living in a digitally mediated reality impacts our inner lives at least as much as the world we inhabit:

“The Internet suggests immortality—comes just shy of promising it—with its magic. With its readability and persistence of data. With its suggestion of universal connectedness. With its disembodied imagines and sounds. And then, just as suddenly, it stirs grief: the deep feeling that digitization has cost us something very profound. That connectedness is illusory; that we’re all more alone than ever.”

And it is the questionable assumptions underlying such a future that Nick Harkaway enumerates in his existential speculative thriller Gnomon:

“Imagine how safe it would feel to know that no one could ever commit a crime of violence and go unnoticed, ever again. Imagine what it would mean to us to know—know for certain—that the plane or the bus we’re travelling on is properly maintained, that the teacher who looks after our children doesn’t have ugly secrets. All it would cost is our privacy, and to be honest who really cares about that? What secrets would you need to keep from a mathematical construct without a heart? From a card index? Why would it matter? And there couldn’t be any abuse of the system, because the system would be built not to allow it. It’s the pathway we’re taking now, that we’ve been on for a while.” 

Machine learning pioneer, former President of Google China, and leading Chinese venture capitalist Kai-Fu Lee loves reading science fiction in this vein — books that extrapolate AI futures — like Hao Jingfang’s Hugo Award-winning Folding Beijing. Lee’s own book, AI Superpowers, provides a thought-provoking overview of the burgeoning feedback loop between machine learning and geopolitics. As AI becomes more and more powerful, it becomes an instrument of power, and this book outlines what that means for the 21st century world stage:

“Many techno-optimists and historians would argue that productivity gains from new technology almost always produce benefits throughout the economy, creating more jobs and prosperity than before. But not all inventions are created equal. Some changes replace one kind of labor (the calculator), and some disrupt a whole industry (the cotton gin). Then there are technological changes on a grander scale. These don’t merely affect one task or one industry but drive changes across hundreds of them. In the past three centuries, we’ve only really seen three such inventions: the steam engine, electrification, and information technology.”

So what’s different this time? Lee points out that “AI is inherently monopolistic: A company with more data and better algorithms will gain ever more users and data. This self-reinforcing cycle will lead to winner-take-all markets, with one company making massive profits while its rivals languish.” This tendency toward centralization has profound implications for the restructuring of world order:

“The AI revolution will be of the magnitude of the Industrial Revolution—but probably larger and definitely faster. Where the steam engine only took over physical labor, AI can perform both intellectual and physical labor. And where the Industrial Revolution took centuries to spread beyond Europe and the U.S., AI applications are already being adopted simultaneously all across the world.”

Cloud Atlas, The Inevitable, The Overstory, Gnomon, Folding Beijing, and AI Superpowers might appear to predict the future, but in fact they do something far more interesting and useful: reframe the present. They invite us to look at the world from new angles and through fresh eyes. And cultivating “beginner’s mind” is the problem for anyone hoping to build or bet on the future.

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Startups Weekly: Is Y Combinator’s latest cohort too big?

Greetings from Chittorgarh, one of my stops on a two-week excursion through Goa and Rajasthan, India. I’ve been a little too busy exploring, photographing cows and monkeys and eating a lot of delicious food to keep up with *all* the tech news, but I’ve still got the highlights.

For starters, if you haven’t heard yet, TechCrunch launched Extra Crunch, a paid premium subscription offering full of amazing content. As part of Extra Crunch, we’ll be doing deep dives on select businesses, beginning with Patreon. Read Patreon’s founding story here and learn how two college roommates built the world’s leading creator platform. Plus, we’ve got insights on Patreon’s product, business strategy, competitors and more.

Sign up for Extra Crunch membership here.

On to other news…

Y Combinator’s latest batch of startups is huge

So huge the Silicon Valley accelerator had to move locations and set up two stages at its upcoming demo days (March 18-19) to accommodate the more than 200 startups ready to pitch investors (who will have to hop between stages at the event). There will also be a virtual demo day live-streamed for some investors to watch “because there are so few seats.” Here’s what I’m wondering… At what point is a YC cohort too big? If investors aren’t even able to view all the companies at Demo Day, what exactly is the point? Send me your thoughts.

Deal of the week

Another week, another SoftBank deal. The Vision Fund’s latest bet is autonomous delivery. The Japanese telecom giant has invested $940 million in Nuro, the developer of a custom unmanned vehicle designed for last-mile delivery of local goods and services. The startup, also backed by Greylock and Gaorong Capital, will use the cash to expand its delivery service, add new partners, hire employees and scale up its fleet of self-driving bots. And while we’re on the subject of autonomous, TuSimple, a self-driving truck startup, has raised a $95 million Series D at a unicorn valuation.

Mamoon Hamid and Ilya Fushman

The future of KPCB

TechCrunch’s Connie Loizos spoke with Mamoon Hamid and Ilya Fushman, who joined Kleiner Perkins from Social Capital and Index Ventures, respectively. The pair talked about Kleiner Perkins, touching on people who’ve left the firm, how its decision-making process now works, why there are no senior women in its ranks and what they make of SoftBank’s Vision Fund.

Here’s your weekly reminder to send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets

Facebook almost bought Unity

Facebook CEO Mark Zuckerberg considered a multi-billion-dollar purchase of Unity, a game development platform. This is according to a new book coming out next week, “The History of the Future,” by Blake Harris, which digs deep into the founding story of Oculus and the drama surrounding the Facebook acquisition, subsequent lawsuits and personal politics of founder Palmer Luckey. Here’s more on the acquisition-that-could-have-been from TechCrunch’s Lucas Matney.

Venture capital funds

Indonesia-focused Intudo Ventures raised a new $50 million fund this week to invest in the world’s fourth most populated country; InReach Ventures, the “AI-powered” European VC, closed a new €53 million early-stage vehicle; and btov Partners closed an €80 million fund aimed at industrial tech startups.

Xiaomi-backed electric toothbrush startup Soocas raises $30M

Startup cash

Jobvite raises $200M+ and acquires three recruitment startups to expand its platform play
Opendoor files to raise another $200M
DriveNets emerges from stealth with $110M for its cloud-based alternative to network routers
Figma gets $40M Series C to put design tools in the cloud
Xiaomi-backed electric toothbrush Soocas raises $30 million Series C
Malt raises $28.6 million for its freelancer platform
Elevate Security announces $8M Series A to alter employee security behavior
Massless raises $2M to build an Apple Pencil for virtual reality

Subscription scooters

Just when you thought the scooter boom and the subscription-boom wouldn’t intersect, Grover arrived to prove you wrong. The startup is launching an e-scooter monthly subscription service in Germany. Their big idea is that instead of purchasing an e-scooter outright, GroverGo customers can enjoy unlimited e-scooter rides without the upfront costs or commitment of owning an e-scooter.

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and General Catalyst’s Niko Bonatsos chat startups.

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Apple acquires talking Barbie voicetech startup PullString

Apple has just bought up the talent it needs to make talking toys a part of Siri, HomePod, and its voice strategy. Apple has reportedly acquired PullString, also known as ToyTalk, according to Axios’ Dan Primack and Ina Fried. The company makes voice experience design tools, artificial intelligence to power those experiences, and toys like talking Barbie and Thomas The Tank Engine toys in partnership with Mattel. Founded in 2011 by former Pixar executives, PullString went on to raise $44 million.

Apple’s Siri is seen as lagging far behind Amazon Alexa and Google Assistant, not only in voice recognition and utility, but also in terms of developer ecosystem. Google and Amazon has built platforms to distribute Skills from tons of voice app makers, including storytelling, quizzes, and other games for kids. If Apple wants to take a real shot at becoming the center of your connected living room with Siri and HomePod, it will need to play nice with the children who spend their time there. Buying PullString could jumpstart Apple’s in-house catalog of speech-activated toys for kids as well as beef up its tools for voice developers.

PullString did catch some flack for being a “child surveillance device” back in 2015, but countered by detailing the security built intoHello Barbie product and saying it’d never been hacked to steal childrens’ voice recordings or other sensitive info. Privacy norms have changed since with so many people readily buying always-listening Echos and Google Homes.

In 2016 it rebranded as PullString with a focus on developers tools that allow for visually mapping out conversations and publishing finished products to the Google and Amazon platforms. Given SiriKit’s complexity and lack of features, PullString’s Converse platform could pave the way for a lot more developers to jump into building voice products for Apple’s devices.

We’ve reached out to Apple and PullString for more details about whether PullString and ToyTalk’s products will remain available.

The startup raised its cash from investors including Khosla Ventures, CRV, Greylock, First Round, and True Ventures, with a Series D in 2016 as its last raise that PitchBook says valued the startup at $160 million. While the voicetech space has since exploded, it can still be difficult for voice experience developers to earn money without accompanying physical products, and many enterprises still aren’t sure what to build with tools like those offered by PullString. That might have led the startup to see a brighter future with Apple, strengthening one of the most ubiquitous though also most detested voice assistants.

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