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The Google Assistant gets more visual
Google today is launching a major visual redesign of its Assistant experience on phones. While the original vision of the Assistant focused mostly on voice, half of all interactions with the Assistant actually include touch. So with this redesign, Google acknowledges that and brings more and larger visuals to the Assistant experience.
If you’ve used one of the recent crop of Assistant-enabled smart displays, then some of what’s new here may look familiar. You now get controls and sliders to manage your smart home devices, for example. Those include sliders to dim your lights and buttons to turn them on or off. There also are controls for managing the volume of your speakers. Update: Google tells me that update will roll out over the course of the next few weeks, with the iOS release depending on Apple’s app store review process.
Even in cases where the Assistant already offered visual feedback — say when you ask for the weather — the team has now also redesigned those results and brought them more in line with what users are already seeing on smart displays from the likes of Lenovo and LG. On the phone, though, that experience still feels a bit more pared down than on those larger displays.
With this redesign, which is going live on both Android and in the iOS app today, Google is also bringing a little bit more of the much-missed Google Now experience back to the phone. While you could already bring up a list of upcoming appointments, commute info, recent orders and other information about your day from the Assistant, that feature was hidden behind a rather odd icon that many users surely ignored. Now, after you’ve long-pressed the home button on your Android phone, you can swipe up to get that same experience. I’m not sure that’s more discoverable than previously, but Google is saving you a tap.
In addition to the visual redesign of the Assistant, Google also today announced a number of new features for developers. Unsurprisingly, one part of this announcement focuses on allowing developers to build their own visual Assistant experiences. Google calls these “rich responses” and provides developers with a set of pre-made visual components that they can easily use to extend their Assistant actions. And because nothing is complete with GIFs, they can now use GIFs in their Assistant apps, too.
But in addition to these new options for creating more visual experiences, Google is also making it a bit easier for developers to take their users money.
While they could already sell physical goods through their Assistant actions, starting today, they’ll also be able to sell digital goods. Those can be one-time purchases for a new level in a game or recurring subscriptions. Headspace, which has long offered a very basic Assistant experience, now lets you sign up for subscriptions right from the Assistant on your phone, for example.
Selling digital goods directly in the Assistant is one thing, but that sale has to sync across different applications, too, so Google today is also launching a new sign-in service for the Assistant that allows developers to log in and link their accounts.
“In the past, account linking could be a frustrating experience for your users; having to manually type a username and password — or worse, create a new account — breaks the natural conversational flow,” the company explains. “With Google Sign-In, users can now create a new account with just a tap or confirmation through their voice. Most users can even link to their existing accounts with your service using their verified email address.”
Starbucks has already integrated this feature into its Assistant experience to give users access to their rewards account. Adding the new Sign-In for the Assistant has almost doubled its conversion rate.
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Cover collects $16M to insure your gadgets, pets… anything
People procrastinate about buying insurance because it’s such a boring and complicated chore to compare policies. But Cover combines plans from 45 insurance companies into a single marketplace so it’s easy to find the best one for your car, home, rental, business, personal property, pets, jewelry and more. Now Cover is building powerful onboarding tricks like a driving school that earns you lower car insurance rates, and a way for Shopify merchants to sell warranties for their items.
The potential to use tech to run circles around the old insurance brokers has attracted a new $16 million Series B for Cover led by Tribe Capital’s Arjun Sethi, who led the Series A and sits on the startup’s board. The round was joined by Y Combinator, Social Capital, Exor and Samsung, and brings the company to a total of $27.1 million in funding.
“Insurance isn’t very different from being a white-collar bookie, where the house’s rake is too high and the dollars at stake are in the hundreds of billions in the U.S. alone,” says co-founder and CEO Karn Saroya. “This, all to the detriment of regular people, who view insurance as a tax. We’re here to change that perception.”
Saroya and his co-founders have deep ties. He went to high school with Anand Dhillon, is engaged to Natalie Gray and hired Ben Aneesh at the team’s previous startup, a high-end fashion marketplace called StyleKick that was eventually acqui-hired by Shopify. “We were tossing around ideas for what we wanted to do after StyleKick/Shopify, running hackathons on weekends. We built a couple different apps, but Cover — the MVP, where we just asked potential customers to take pictures of things they wanted to insure, surprised us” says Saroya. “Our customers sent us walkthroughs of their homes, pictures of their dogs and videos of themselves washing their cars. When you come across behavior that violates your expectations in consumers, that’s usually when you double-down.”
Cover co-founder and CEO Karn Saroya
So they built Cover, where you don’t have to cobble together an endless set of insurance websites or wait on hold. You download the app, pick your item, list how much you paid and where, provide some photos or video of its condition using its TensorFlow-equipped camera and Cover will check across its insurance partners and find you the best quote instantly. You can easily see what is and isn’t covered, learn how to make claims, and text with an agent if you have questions. For example, I was quickly quoted $5 per month to insure my new iPhone against damage but not loss or theft.
Cover earns between 10 to 35 percent per dollar of premium you pay. Its annualized premium already exceeds $8.5 million and is growing 30 percent per month. Thanks to its low-churn business model, easy cross-promotion of products, low training requirements for customers and no need to constantly update its existing subscriptions, Cover starts to look like a very efficient software-as-a-service business.
The big question remains whether Cover can consistently find the best rates for customers so they don’t second guess its quotes and search somewhere else. It will have to outcompete multi-insurance providers, like State Farm and Geico, as well as startups like MetroMile tackling specific insurance verticals with mobile apps. To really earn the big profits, Cover is building out its own in-house insurance plans. But that will put it under constant threat of insuring the wrong risks and ending up paying out too much.
“We built Cover because we saw an opportunity to build elegant products that could deliver on pricing and customer experience in a way that no incumbent insurance entity can,” Saroya concludes. By bringing the service to mobile and making it a seamless part of owning something, Cover could ensure you’re insured, even if insurance is the last thing you want to think about.
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Apple expands Business Chat with new businesses and additional countries
Apple Business Chat launched earlier this year as a way for consumers to communicate directly with businesses on Apple’s messaging platform. Today the company announced it was expanding the program to add new businesses and support for additional countries.
When it launched in January, business partners included Discover, Hilton, Lowe’s and Wells Fargo. Today’s announcement includes the likes of Burberry, West Elm, Kimpton Hotels, and Vodafone Germany.
The program, which remains in Beta, added 15 new companies today in the US and 15 internationally including in the UK, Japan, Hong Kong, Singapore, Canada, Italy, Australia and France.
Since the launch, companies have been coming up with creative ways to interact directly with customers in a chat setting that many users prefer over telephone trees and staticy wait music (I know I do).
For instance, Four Seasons, which launched Business Chat in July, is expanding usage to 88 properties across the globe with the ability to chat in more than 100 languages with reported average response times of around 90 seconds.
Apple previously added features like Apple Pay to iMessage to make it easy for consumers to transact directly with business in a fully digital way. If for instance, your customer service rep helps you find the perfect item, you can purchase it right then and there with Apple Pay in a fully digital payment system without having to supply a credit card in the chat interface.
Photo: Apple
What’s more, the CSR could share a link, photo or video to let you see more information on the item you’re interested in or to help you fix a problem with an item you already own. All of this can take place in iMessage, a tool millions of iPhone and iPad owners are comfortable using with friends and family.
To interact with Business Chat, customers are given messaging as a choice in contact information. If they touch this option, the interaction opens in iMessage and customers can conduct a conversation with the brand’s CSR, just as they would with friends.
Touch Message to move to iMessage conversation. Photo: Apple
This link to customer service and sales through a chat interface also fits well with the partnership with Salesforce announced last week and with the company’s overall push to the enterprise. Salesforce president and chief product officer, Bret Taylor described how Apple Business Chat could integrate with Salesforce’s Service Bot platform, which was introduced in 2017 to allow companies to build integrated automated and human response systems.
The bots could provide a first level of service and if the customer required more personal support, there could be an option to switch to Apple Business Chat.
Apple Business Chat requires iOS 11.3 or higher.
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SoftBank leads $35M investment in sports engagement startup Heed
Heed, a startup looking to create new ways for sports leagues and clubs to engage with fans, is announcing that it has raised $35 million led by SoftBank Group International.
As laid out for me by CEO Danna Rabin, the company sits at the intersection of sports and IoT — which makes sense, since it was founded by Internet of Things company AGT International and talent agency Endeavor .
“Our primary mission is to connect the young audience with sports leagues and clubs,” Rabin said. “[Those] audiences are consuming less broadcast TV, consuming less of anything linearly. Sports clubs and brands are having more and more issues connecting with and reengaging those younger audiences.”
To create that connection, Heed places sensors around the match or game venue, even potentially on players’ clothing and equipment.
For example, the team let me make a couple punches using gloves with sensors inside, which were created for the mixed martial arts league UFC. Afterwards, I could see the measured force of each of my swings. (I didn’t really have any points of comparison, but I think it’s safe to say that my numbers weren’t too impressive.)
Rabin emphasized that Heed’s real focus isn’t on building fancy hardware, but rather on the artificial intelligence it uses to take that data (which can also be drawn from video and audio footage of the match) and transform it into a general narrative that can be viewed on the Heed smartphone app.
Pointing to the UFC glove, Rabin said, “We extract, only from this sensor, 70 different data points. What’s happening is, the fusion of these data points is what creates the stories.”
Put another way, the goal is to replace the generic commentary that you often get in sports coverage and live games with unique details about how the game or match is unfolding. Those aren’t just numbers like how hard someone is punching, but also inferences about a player’s emotional state based on the data.
“One of our core promises is that it’s not editorial driven,” Rabin added. “The AI is selecting what’s interesting in a match. Of course, we have a creative team that designs the formats, the visuals, how the packaging should look like, but that’s incorporated into the technology, which is automatically selecting the moments and creating the experiences with no human interpretation.”
So does Heed aim to be a technology provider or a sports media company of its own? Well, Rabin said it didn’t make sense to simply provide the tech to individual leagues or teams.
“A specific club does not have the breadth of technologies to keep evolving,” she said. Plus, she argued that the audience isn’t looking for just a one-off site with stories about one team, but an all-around destination where they can “get a bit of everything.”
In addition to the UFC, Heed is also working with EuroLeague (the European basketball league), various soccer clubs and Professional Bull Riding. In the latter case, it’s not just creating content, but actually working with the organization to create a more automated and objective form of judging.
“By leveraging AI and IoT, HEED has developed a unique platform that is changing the way fans watch and interact with sports,” said Softbank President and CFO Alok Sama. “HEED is taking a traditionally static experience and providing fans with deeper insights into the physical and emotional aspects of the sporting event by gathering and analyzing large, complex data in real time.”
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Apple adds student ID cards into Apple Wallet to access buildings, buy food and more
The education market has long been one of the cornerstones of growth for Apple’s hardware business, and today the company is leveraging its popularity in it, specifically among college-aged students, to build out a newer effort. Today, Apple started to integrate university student ID cards — used to access buildings, pay for food or books, and any other transactional campus services — into Wallet, its contactless payment system on the Apple Watch and the iPhone. The first schools to come online are Duke University, the University of Alabama and the University of Oklahoma.
Apple had actually announced the service back in June, during WWDC, earmarking the three schools going live today. It said that Johns Hopkins University, Santa Clara University and Temple University will start using the service by the end of this year.
The expansion comes at a time when Apple is riding on a growth high for its mobile wallet. iPhone and Watch owners have been shown to be enthusiastic users of their devices for making purchases (thrice as more avid, it seems, than Android users), and on the back of that, Apple Pay — which is now live in 24 markets — has laid claim to being the most popular mobile contactless payment in use today, with some 1 billion transactions in the last quarter alone, up three-fold from a year before.
Many of those transactions are specifically related to Apple Pay, made using more traditional payment cards such as American Express or Visa credit cards, and at traditional retail locations — Apple says it expects 60 percent of all US retail locations to support Apple Pay by the end of this year, including over 70 of the top 100 retail chains.
But Apple has also been pursuing a second wave of growth to make Wallet useful, by encouraging people to upload and use the myriad cards they have for various other services, such as loyalty cards and passes for city transport systems. Twelve US metro areas already use Apple Pay, and there is ground being gained internationally too in markets like the UK, China and Japan.
Adding in university student cards falls within that scope, Apple says.
“iPhone and Apple Watch have brought us into a new era of mobility, helping to transform everyday experiences,” said Jennifer Bailey, Apple’s vice president of Internet Services, said in a statement. “When we launched Apple Pay, we embarked on a goal to replace the physical wallet. By adding transit, loyalty cards and contactless ticketing we have expanded the capabilities of Wallet beyond payments, and we’re now thrilled to be working with campuses on adding contactless student ID cards to bring customers even more easy, convenient and secure experiences.”
Apple Pay may not appear to massively profit Apple in a direct way — as it’s been pointed out by others, the percentages on payment transactions are tiny — but what it does give the company indirectly is another tie into how people use their phones and watches, making the devices more valuable to their owners, and those users more tied into the Apple ecosystem.
At colleges (and other schools), we’ve seen an increasing use of student ID cards not just as a way to identify yourself, but to access services and buildings, and also to pay for things, and use of contactless versions of these has been on the rise. Part of the reason for this is safety: having one card for everything means students need to carry less valuables, and if they lose it or it’s stolen, the card can be more easily replaced. At the same time, watches and phones are not items they’re leaving behind, so further consolidating, and making those cards more secure by way of Apple’s device locks, makes sense.
What we don’t know is if Apple is getting a commission (even a tiny one) on the payment transactions made via these student cards. We have asked the company and will update as we learn more.
Educational institutions aren’t the only not-strictly-retail locations that are being put into Wallet. Apple’s been adding sports venues to let attendees use Wallet to carry their tickets, and to then buy food and other concessions once you get in. (See how Apple uses one non-commissioned transaction to lead you into using it for one that might be?)
Today, Apple is estimated to account for between 14 percent and 17 percent of the K-12 education market in the US, and with the likes of Google and Microsoft also pushing hard for growth both here and in higher education, you can see how adding in more services like this could help Apple expand its piece of the pie.
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Meet Adam Mosseri, the new head of Instagram
Former Facebook VP of News Feed and recently appointed Instagram VP of Product Adam Mosseri has been named the new head of Instagram following the resignation of Instagram’s founders Kevin Systrom and Mike Krieger last week. “We are thrilled to hand over the reins to a product leader with a strong design background and a focus on craft and simplicity — as well as a deep understanding of the importance of community,” the founders wrote. “These are the values and principles that have been essential to us at Instagram since the day we started, and we’re excited for Adam to carry them forward.”
Systrom will recruit a new executive team, including heads of product, operations and engineering, to replace himself, Instagram COO Marne Levine, who went back to lead Facebook partnerships last month, and engineering leader James Everingham, who moved to Facebook’s blockchain team in May before finishing at Instagram in July. Instagram’s product director Robby Stein is a strong candidate for the product head position, as he’s been overseeing Stories, feed, Live, direct messaging, camera and profile.
Instagram’s founders announced last week they were leaving the Facebook corporation after sources told TechCrunch the pair had dealt with dwindling autonomy from Facebook and rising tensions with its CEO Mark Zuckerberg. The smiling photo above seems meant to show peace has been restored to Instaland, and counter the increasing perception that Facebook breaks its promises to acquired founders. TechCrunch previously reported Mosseri was first in line for the role according to sources, and The Information later wrote that some inside the company saw him as a lock.
Mosseri’s experience dealing with the unintended consequences of the News Feed, such as fake news in the wake of the 2016 election, could help him predict how Instagram’s growth will affect culture, politics and user well-being. Over the years of interviewing him, Mosseri has always come across as sharp, serious and empathetic. He comes across as a true believer that Facebook and its family of apps can make a positive impact in the world, but cognizant of the hard work and complex choices required to keep them from being misused.
Born and raised in New York, Mosseri started his own design consultancy while attending NYU’s Gallatin School of Interdisciplinary Study to learn about media and information design. Mosseri joined Facebook in 2008 after briefly working at a startup called TokBox. Tasked with helping Facebook embrace mobile as design director, he’s since become part of Zuckerberg’s inner circle of friends and lieutenants. Mosseri later moved into product management and oversaw Facebook’s News Feed, turn it into the world’s most popular social technology and the driver of billions in profit from advertising. However, amidst his successes, Mosseri also oversaw Facebook Home, the flopped mobile operating system, and was the officer on duty when fake news and Russian election attackers proliferated.
After going on parental leave this year, Mosseri returned to take over the role of Instagram VP of Product from Kevin Weil as he moved to Facebook’s blockchain team. A source tells TechCrunch he was well-received and productive since joining Instagram, and has gotten along well with Systrom. Mosseri now lives in San Francisco, close enough to work from both Instagram’s city office and South Bay headquarters. He’ll report to Facebook’s chief product officer Chris Cox as he did at Facebook. Cox wrote, “Kevin and Mike, we will never fill your shoes. But we will work hard to uphold the craft, simplicity, elegance, and the incredible community of Instagram: both the team and the product you’ve built.”
“The impact of their work over the past eight years has been incredible. They built a product people love that brings joy and connection to so many lives,” Mosseri wrote about Instagram’s founders in an Instagram post. “I’m humbled and excited about the opportunity to now lead the Instagram team. I want to thank them for trusting me to carry forward the values that they have established. I will do my best to make them, the team, and the Instagram community proud.”
Mosseri will be tasked with balancing the needs of Instagram, such as headcount, engineering resources and growth, with the priorities of its parent company Facebook, such as cross-promotion to Instagram’s younger audience and revenue to contribute to the corporation’s earnings reports. Some see Mosseri as more sympathetic to Facebook’s desire than Instagram’s founders, given his long-stint at the parent company and his close relationship with Zuckerberg. Interestingly, Zuckerberg wasn’t mentioned or pictured in the transition announcement and hasn’t posted anything congratulating Mosseri as is common in Facebook’s employee culture. Zuckerberg may be seeking to reduce the appearance that he’s playing puppet master and instead does actually let Instagram run independently.
The question now is whether users will end up seeing more notifications and shortcuts linking back to Facebook, or more ads in the Stories and feed. Instagram hasn’t highlighted the ability to syndicate your Stories to Facebook, which could be a boon for that parallel product. Instagram Stories now has 400 million daily users compared to Facebook Stories and Messenger Stories’ combined 150 million users. Tying them more closely could see more content flow into Facebook, but it might also make users second guess whether what they’re sharing is appropriate for all of their Facebook friends, which might include family or professional colleagues.
Mosseri’s most pressing responsibility will be reassuring users that the culture of Instagram and its app won’t be assimilated into Facebook now that he’s running things instead of the founders. He’ll also need to snap into action to protect Instagram from being used as a pawn for election interference in the run-up to the 2018 U.S. mid-terms. While he’ll never have the same mandate and faith from employees that the founders did, Mosseri is the experienced leader Instagram needs to grapple with its scaled-up influence.
View this post on InstagramA post shared by Adam Mosseri (@mosseri) on
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Google Maps adds ‘Commute’ tab and music controls
Google just announced new features for Google Maps on Android and iOS. The update is rolling out this week and features a bunch of new features focused on commuting, music and getting more personal data from you.
While Google Maps is particularly useful for road trips and vacation, the app also can be useful for stressful commutes. Google is resurfacing some of those features with a new “Commute” tab.
After setting up your home and work address, the app will help you know what to expect in the morning and the evening. If you drive to work, Google Maps now tells you how long it’s going to take and if there are any alternative routes. It works pretty much like Waze’s ETA screen and tells you if it’s going to be faster or slower in 30 minutes or an hour.
If you take the bus or train to work, Google Maps can help you find out when you should leave. The app takes into account the walk or drive to the station. Those public transit features compete directly with Citymapper and most likely relies on a lot of open data.
Talking about public transit, you’ll be able to see your bus or train on the map, slowly moving closer to you. The app also tells you how long you have to wait. This feature will be available in 80 regions around the world. In Sydney, the app tells you how full the next bus is going to be.
Unfortunately, this update comes with a privacy drawback. Until very recently, you could associate your home and work address with your Google account in Google Maps.
Now, you need to activate “web & app activity,” the infamous all-encompassing privacy destroyer — I used to store my home and work address and I can no longer change those addresses without enabling that. If you activate that setting, Google will collect your search history, your Chrome browsing history, your location, your credit card purchases and more.
And Google nudges you to activate that “feature” all the time. You need to turn on “web & app activity” to use Google Assistant on an Android device for instance. It’s becoming quite clear that Google is monetizing its newest features with your data.
Lame: if you want to save a home or work address in Google Maps, you now have to allow activity tracking throughout Google services. pic.twitter.com/OhFkXsUOmc
— Jonathan Mayer (@jonathanmayer) September 24, 2018
In other news, Google also is adding music controls in Google Maps. You’ll be able to control Spotify, Apple Music and Google Play Music. It looks like the company is taking advantage of taller screens to add a banner near the bottom of the screen with the current song and the ability to skip a song or pause the music.
There will be a new button on the right to open your music app, as well. Spotify users on Android also will be able to browse the Spotify library from Google Maps directly.
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Babbel CEOs to talk about language and startup lessons at Disrupt Berlin
The slow and steady rise of Babbel has been impressive on many fronts. The company is now managing the top-grossing language learning app in the world. That’s why I’m excited to announce that we’ll have founder and CEO Markus Witte as well as CEO U.S. Julie Hansen at TechCrunch Disrupt Berlin.
Babbel has been around for over a decade. The company started with a web-based language learning service. It was based on Adobe Flash and HTML. Now, most Babbel users interact with the service using the company’s mobile app.
And Babbel also represents a European success story. Thanks to the European Union, many people live, work and travel all around Europe. It creates a unique market opportunity as the continent is a highly fragmented market when it comes to languages — there are dozens of different languages. That’s why building a language learning startup in Berlin is the perfect fit.
Babbel operates with a freemium, subscription-based model. Downloading the app is free, but you need to pay a subscription to unlock all the features.
More recently, Babbel has been betting on the U.S. as its next market opportunity. Many Europeans want to learn English, and it’s also true in the U.S. Immigrants want to improve their knowledge of English.
It’s a different market that causes a different set of challenges. That’s why the company has named Julie Hansen as CEO of the U.S. division of Babbel.
If you want to hear both Hansen and Witte talk about Babbel’s past ten years and the company’s next ten years, you should come to Disrupt Berlin.
Buy your ticket to Disrupt Berlin to listen to this discussion and many others. The conference will take place on November 29-30.
In addition to fireside chats and panels, like this one, new startups will participate in the Startup Battlefield Europe to win the highly coveted Battlefield cup.
Markus Witte
Babbel Founder and CEO
Markus Witte is CEO and founder of Babbel , the world’s top-grossing language learning app. He describes Babbel as a learning company inside and out: “Heading a team in which each and every person, as well as the organization itself, is constantly learning new things is incredibly fulfilling.”
Markus began his career at NYU, and later lectured at Humboldt University in Berlin, where he discovered his passion for teaching. Following his time as an academic, he led the development of online marketing and web infrastructure and managed the online and systems teams at music software company Native Instruments. Coming back to learning and teaching, he founded Babbel with three others in 2007.
Julie Hansen
Babbel CEO U.S.
Julie Hansen is CEO U.S. at Babbel. Based in the company’s New York office she is leading the US expansion of the world’s top-grossing language learning app.
Before joining Babbel, Julie was the COO and President of Business Insider. Under her leadership the news site became the most visited business outlet on the internet. Prior to Business Insider, Hansen held top management roles at sports site NCAA.com, Condé Nast Publications, and Time Inc. Julie has over two decades of experience growing digital media companies, launching interactive web sites, deploying mobile apps, and leading online and offline marketing campaigns. She began her career at Penguin Books, publishing learning software for literature among other products.
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Compound launches easy way to short cryptocurrencies
Think Ethereum and other crypto coins are overvalued? Now you can make money when their prices fall via Compound, which is launching its money market protocol for shorting cryptocurrencies today. The Coinbase and Andreessen Horowitz-funded startup today opens its simple web interface allowing users to borrow and short Ethereum, 0x’s ZRX, Brave’s BAT, and Augur’s REP token, or lend them through Compound to earn interest.
Compound’s protocol isn’t just useful for crypto haters, or HODLers who want to generate interest instead of just having their coins gathering dust in a wallet. “If/when Compound scales, this will lead to some really interesting improvements in market structure, namely, fairer prices” Compound CEO Robert Leshner tells me.
The startup spent the summer completing a security audit by Trail Of Bits and adding 26 hedge fund partners who will trade with Compound, offering liquidity to independent investors looking to be matched with borrowers or lenders. Next, the startup wants to offer a stablecoin on its protocol, bring in big financial institutions to add even more liquidity, and partner with a wallet provider to make signup faster.
Compound users visit its site through a Web3 browser such as MetaMask or Coinbase Wallet and enter their Ethereum price. They can then view the interest rates for borrowing and shorting or lending and earning interest for each of the supported tokens. Compound’s secret sauce is that those interest rates are set algorithmically based on demand, though eventually it wants a community governance body to oversee this process. “It ranges from 5 percent to 45 percent APR depending on how scarce liquidity is . . . in general, we expect supply to outnumber borrowing about 5-1, and borrowing rates to be about 10 percent”.
To make sure no one thinks they’re getting scammed, Compound is also releasing a transparency dashboard users can view to check up on all the assets moving through the protocol and see what Compound is earning. It charges 10 percent of what borrowers pay in interest, with the rest going to the lender. That margin is what attracted the $8.2 seed round for Compound that also included Polychain Capital and Bain Capital Ventures.
It could also make crypto exchanges like Coinbase or Robinhood less attractive to users because leaving their coins there comes with the opportunity cost of not lending them for profit. Meanwhile, shorts could pop the volatile crypto bubble and push prices to more sensible and stable levels. That’s market health is a critical precursor to big banks and traditional investors diving into crypto.
[Disclosure: The author owns small positions in Bitcoin and Ethereum, but has no financial motive for writing this article, did not make trades in the week prior to this article, and doesn not plan to make trades in the 72 hours following publication.]
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The Infatuation raises $30M from Jeffrey Katzenberg’s WndrCo to bring Zagat into the digital age
WndrCo, the consumer tech investment and holding company founded by longtime Hollywood executive Jeffrey Katzenberg, has invested $30 million in The Infatuation, a restaurant discovery platform.
The Infatuation made waves earlier this year when it purchased Zagat from Google, which had paid $151 million for the 40-year-old company in 2011. Despite efforts to makeover the Zagat app, the search giant ultimately decided to unload the perennial restaurant review and recommendation service and focus on expanding its database of restaurant recommendations organically.
New York-based The Infatuation was founded by music industry vets Chris Stang and Andrew Steinthal in 2009. It has previously raised $3.5 million for its mobile app, events, newsletter and personalized SMS-based recommendation tool.
Stang told TechCrunch this morning that they plan to use a good chunk of the funds to develop the new Zagat platform, which will be kept separate from The Infatuation.
“The first thing we want to do before we build anything is spend a lot of time researching how people have used Zagat in the past, how they want to use it in the future, what a community-driven platform could look like and how to apply community reviews and ratings to the brand,” said Stang, The Infatuation’s chief executive officer. “Zagat’s roots are in user-generated content. … What we are doing now is thinking through what that looks like with new tech applied to it. What it looks like in the digital age. How [we can] take our domain expertise and that legendary brand and make something new with it.”
The Infatuation will also expand to new cities beginning this fall with launches in Boston and Philadelphia. It’s already active in a dozen or so U.S. cities including Los Angeles, Seattle and San Francisco. The startup’s first and only international location is London.
Katzenberg, who began his Hollywood career at Paramount Pictures, began raising up to $2 billion for WndrCo about a year ago. Since then, he’s unveiled WndrCo’s new mobile video startup NewTV, which has raised $1 billion and hired Meg Whitman, the former president and CEO of Hewlett Packard, as CEO.
On top of that, WndrCo has invested in Mixcloud, Axios, Node, Flowspace, Whistle Sports, TYT Network and others.
Given The Infatuation founders’ experience in the entertainment industry, a partnership with Katzenberg was natural.
“We really felt like between content and technology they had … expertise on both sides,” Stang said. “The Infatuation is at its best when great content intersects with great technology, to find a fund that was perfectly suited to that was exciting.”
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