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Is “Twitter Stories” on the way? Or will we just get tools to send prettier tweets? Well now Twitter has the talent for both as it’s just acquired Chroma Labs. Co-founded by Instagram Boomerang inventor John Barnett, Chroma Labs’ Chroma Stories app let you fill in stylish layout templates and frames for posting collages and more to Instagram Stories, Snapchat, and more.
Rather than keeping Chroma Stories around, Twitter will be splitting the Chroma Labs squad up to work on its product, design and engineering teams. The Chroma Stories iPhone app won’t be shut down, but it won’t get more updates and will only work until there’s some breaking change to iOS.
Thrilled to welcome the amazing @Chroma_Labs team including @picturejohn, @alexli, @joshuacharris to @Twitter.
They’ll join our product, design, and eng teams working to give people more creative ways to express themselves on Twitter
— Kayvon Beykpour (@kayvz) February 18, 2020
“When we founded Chroma Labs in 2018, we set out to build a company to inspire creativity and help people tell their visual stories. During the past year, we’ve enabled creators and businesses around the world to create millions of stories with the Chroma Stories app” the Chroma Labs team writes on its site. “We’re proud of this work, and look forward to continuing our mission at a larger scale – with one of the most important services in the world.”
We’ve reached out to Twitter for more details on the deal and any price paid. [Update: Twitter confirms this is an acquisition, not just and acquihire of the team as it first appeared, though Chroma Stories is shutting down. It refused to disclose the terms of the acquisition, but said all seven employees of Chroma Labs are coming aboard. The team will be working on the Conversations division at Twitter, and the deal is meant to boost its talent, leadership, and expertise for serving public discussions. A Twitter spokesperson also confirms that Chroma will shut down its .business and future versions of the app will not be available.]
Founded in late 2018, Chroma Labs had raised a seed round in early 2019 and counted Sweet Capital, Index Ventures, and Combine VC as investors. Barnett’s fellow co-founders include CTO Alex Li, who was an engineering manager on Facebook Photos and Instagram Stories; and Joshua Harris was a product design manager on the Oculus Rift and Facebook’s augmented reality filters.

With Chroma Stories, you could choose between retro filters, holiday themed frames, and snazzy collage templates to make your Storie look special amidst the millions posted each day. Sensor Tower estimates Chroma Stories had 37,000 downloads to date. That tepid reception despite the app’s quality might explain why the team is joining Twitter.
By snatching up some of the smartest talent in visual storytelling, Twitter could give its text-focused app some spice. It’s one of the few social apps without a Stories product already, and its creative tools are quite limited. Better ways to lay out photos in tweets could make Twitter more beautiful and less exhausting to sift through. That might make it more appealing to teens and help it boost its user count, which now lags behind Snapchat.
Twitter has become the world’s public record for words. The Chroma Labs talent might make it the real-time gallery for art and design as well.
[Update 3:05pm Pacific: Twitter confirms that this is a full acquisition of the Chroma Labs company, not just an acquisition as we originally printed.]
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“I don’t feel good about that. That sucks,” Chrys Bader-Wechseler reflects when asked about the bullying that went down on the anonymous app Secret he co-founded in 2013. After $35 million raised, 15 million users and a spectacular flame out two years later, the startup was dead. “Since I left Secret I feel alive and aligned with my values and my purpose again.”
But there was one bright side to Secret letting you post without a name or consequences. People opened up, got vulnerable and felt less alone when comments revealed they weren’t the only person dealing with a certain struggle. What Bader learned from watching Secret’s users “do this in the dark” was the realization that “actually, we need to learn to do this in the light, to have that same kind of dialogue, but do it openly with each other.”
So began the journey to Bader’s new startup Ikaria that’s exclusively revealing itself to the world today on TechCrunch. It’s a different kind of chat app, named after the Greek island where a close-knit community helps extend people’s lifespans. The six-person Santa Monica team is funded by a $1.5 million seed round led by Initialized Capital and Fuel Capital. People can sign up for early beta access here.

During a long interview about the startup, Bader and his co-founder Sean Dadashi were cagey about exactly how Ikaria works, as it’s still in development. Amidst all the philosophical context about the app’s intention, I was able to pull out a few details about what the product will actually look like.
“Basically, since 2004, technology has created this monumental shift in the human social experience. We’re more connected than ever technically but all the studies show we’re lonelier than ever,” Bader explains. “It’s like eating McDonald’s to get healthy. It’s not the right source of nutrition for our social well-being because true connection requires a level of vulnerability, presence, self-disclosure and reciprocity that you don’t really get on these platforms.”
Ikaria isn’t another feed. It’s a safe space where you can chat with close friends and family, or people going through similar life challenges. Members of these group chats will optionally go through guided experiences that help them reflect on and discuss what’s going on in their hearts and minds. This could become a whole new media format where outside creators or mental health professionals could produce and contribute their own guided experiences.

“Part of the reason we’re announcing this is that . . . it’s a call to action to involve all these practitioners and people who are doing these types of things and giving them a platform to allow them to facilitate these kind of group bonding experiences through a platform where they can extend their practices into the digital world,” Bader tells me. What Calm and Headspace did for making meditation more mainstream and accessible, Ikaria wants to do for mental health through online togetherness.
Ikaria already has a sizable closed beta going, which the startup plans to continue until it finds product fit, and it hopes to know its official release timeline by the end of the year. “We’re not going to launch this until we know 40% of people would be disappointed if they couldn’t use it.”
Rather than monetizing by exploiting people’s attention, Ikaria plans to develop a “customer relationship” with users, which could mean subscription access or in-app payments for buying content. Perhaps one user could act as the sponsor and purchase an experience for their whole group chat. Until then, it’s got its seed funding from Initialized, Fuel Capital, F7 Ventures, Ryan Hoover’s Weekend Fund, Backend Capital, Day One Ventures, Shrug, Todd Goldberg and Superhuman’s Rahul Vohra.
“The hope is that eventually this would be an app you use instead of iMessage, to increase your sense of presence,” Bader explains, revealing its grand ambitions. Why would we need to replace our core chat apps? Well for one thing, they don’t understand who really matters to you. If an app understood who your mom is, it could give her messages special prevalence or remind you to contact her.

Bader met Dadashi through an offline men’s group for discussing life, love and everything in the wake of Secret’s collapse and a rough romantic breakup. After just a few weeks of these meetups, they say they felt closer to each other than to most of their friends. Only later did Bader, a designer by trade, discover that Dadashi was a coder who’d been CTO of electronics company MHD Enterprises before starting a travel and lifestyle startup for mental wellness, called Somatic Studios. They tried working together on an app for sharing quotes from your friends but scrapped it.
Together, the pair went on to research the rapid rise of other vulnerability-focused meetup organizations like the one where they met, including Evryman, ManKind Project, Quilt, Authentic Relating, Circling, and T-Groups. Though they knew that to have a chance at impact at scale, they’d need to build a mobile app familiar enough to get people over the hurdle of starting a mindfulness practice. They laid out a few principles to build by: a focus on relationships instead of Likes and followers, conscious design that won’t exploit people’s attention or weaknesses, no ads, and keeping all data private and in control of the user.

There are other startups hoping to address the sad state of mental health from different angles. Talkspace offers a mobile connection to licensed therapists, though it can be pricey at $65 to $99 per week. 7 Cups and TalkLife makes peer-to-peer counseling from volunteers free, though these aren’t professionals. There are also plenty of journaling products, gratitude practice apps and wellness podcasts out there. But Ikaria’s approach, combining mental health content with group chats of people you trust, feels unique.
Having known Bader since the Secret days, it’s obvious that working with Dadashi has made him happier and more centered. Ikaria is an app he can wake up feeling good about each day. “You know, I don’t like to speak ill of David [Byttow, Secret’s CEO who sources say was verbally abusive to employees], but that relationship was very, very toxic and taxing for me. And this time around with Sean, as I’m sure you can tell, is the polar opposite.”
If Ikaria can help people develop the open and honest relationships with friends or peers like building it has done for Bader and Dadashi, it could be a beacon amidst a sea of time unwell spent.
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Voodoo Games is one of the most interesting startups alive today. In mid-2018, it had 150 million MAUs and raised $200 million from Goldman Sachs, yet I’ve never heard anyone mention the company. That might be normal for an obscure enterprise SaaS play, but Voodoo is consumer-facing through and through.
Quantitative success aside, Voodoo upends much of the conventional thinking about product design and gaming. If it can do it, how can similar strategies apply to other products?
Voodoo is best described as a product conglomerate. Take a look at its App Store page. It has dozens of generic-looking apps. The basic playbook is:
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Despite the rapid growth of e-commerce in India, Southeast Asia and other emerging markets, the vast majority of retail transactions there still happen offline in small stores that also serve as neighborhood hubs.
The central role these stores play in their communities led GGV Capital to develop what the firm refers to as its mom-and-pop shop investment thesis. This means backing startups that help small retailers digitize operations, tap into better supply chains and serve as delivery points in markets where logistics and online payment infrastructures are still developing. In turn, GGV’s managing partners believe this will lay the groundwork for stronger e-commerce growth.
Companies that GGV has already invested in under this thesis include B2B e-commerce platform Udaan and Telio, bookkeeping app KhataBook and social commerce startup Shihuituan (also called Nice Tuan) in China.
GGV managing partner Hans Tung says the mom-and-pop shop thesis means looking at consumers’ shopping habits across countries and understanding why they are different from a historical and social perspective. During his career, Tung has observed e-commerce develop in markets including the United States, China, Japan, Taiwan, India, Southeast Asia and Latin America. Offline shopping habits, population density, transportation infrastructure and credit card penetration all played a factor in how e-commerce evolved in each of those places.
“You realize e-commerce doesn’t exist in a vacuum. It exists as a substitute for what is happening in the offline world,” he says. “Mobile payment doesn’t happen in a vacuum. It just fulfills the same needs with a different method. It was a substitution for what was happening in the offline world with credit card and debit card penetration.”
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After WeWork exploded there was — at least supposedly — a change in sentiment among investors and founders alike. Gone were the days of easy nine-figure rounds, expensive growth, negative unit economics and the rest of the excess that Startupland has enjoyed over the past half-decade.
Inside this purported sentiment shift, I presumed, was a decrease in optimism; surely venture capitalists and entrepreneurs would change their behavior inside this new paradigm?
But by some measures, they haven’t. I expected that startups would achieve more conservative proximate valuations in the post-WeWork world, as their leaders would aim to raise a bit less, and a bit more conservatively, and investors would be less starry-eyed in the prices they were willing to pay for startup equity.
That was all wrong, it turns out. A recent report from Fenwick and West, a legal firm that works with technology companies, paints a picture that is the complete opposite of what we might have anticipated.
Perhaps we shouldn’t be surprised; our recent reporting hardly describes a market in slowdown. Boston is having a good start to the year, for example. SaaS is also looking healthy from a venture capital perspective. Cloud stocks are at all-time highs and One Medical is still defying gravity as a public stock. Whatever lesson WeWork was supposed to teach, it doesn’t appear to have made much impact.
Let’s explore the Fenwick data and then ask if we can spot anywhere where the markets are behaving like the chastened children that we were told had taken over.
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Remember when Zenefits imploded, and kicked out CEO Parker Conrad. Well, Conrad launched a new employee onboarding startup called Rippling, and now he’s going after another HR company called Gusto with a new billboard, “Outgrowing Gusto? Presto change-o.”
The problem is, Gusto got it taken down by issuing a cease & desist order to Rippling and the billboard operator Clear Channel Outdoor. That’s despite the law typically allowing comparative advertising as long as it’s accurate. Gusto sells HR, benefits and payroll software, while Rippling does the same but adds in IT management to tie together an employee identity platform.
Rippling tells me that outgrowing Gusto is the top reasons customers say they’re switching to Rippling. Gusto’s customer stories page lists no customers larger than 61 customers, and Enlyft research says the company is most often used by 10 to 50-person staffs. “We were one of Gusto’s largest customers when we left the platform last year. They were very open about the fact that the product didn’t work for businesses of our size. We moved to Rippling last fall and have been extremely happy with it,” says Compass Coffee co-founder Michael Haft.

That all suggests the Rippling ad’s claim is reasonable. But the C&D claims that “Gusto counts as customers multiple companies with 100 or more employees and does not state the businesses will ‘outgrow’ their platfrom at a certain size.”
In an email to staff provided to TechCrunch, Rippling CMO Matt Epstein wrote, “We take legal claims seriously, but this one doesn’t pass the laugh test. As Gusto says all over their website, they focus on small businesses.”
So rather than taking Gusto to court or trying to change Clear Channel’s mind, Conrad and Rippling did something cheeky. They responded to the cease & desist order in Shakespeare-style iambic pentameter.
Our billboard struck a nerve, it seems. And so you phoned your legal teams,
who started shouting, “Cease!” “Desist!” and other threats too long to list.Your brand is known for being chill. So this just seems like overkill.
But since you think we’ve been unfair, we’d really like to clear the air.
Rippling’s general counsel Vanessa Wu wrote the letter, which goes on to claim that “When Gusto tried to scale itself, we saw what you took off the shelf. Your software fell a little short. You needed Workday for support,” asserting that Gusto’s own HR tool couldn’t handle its 1,000-plus employees and needed to turn to a bigger enterprise vendor. The letter concludes with the implication that Gusto should drop the cease-and-desist, and instead compete on merit:
So Gusto, do not fear our sign. Our mission and our goals align.
Let’s keep this conflict dignified—and let the customers decide.
Rippling CMO Matt Epstein tells me that “While the folks across the street may find competition upsetting, customers win when companies push each other to do better. We hope our lighthearted poem gets this debate back down to earth, and we look forward to competing in the marketplace.”
Rippling might think this whole thing was slick or funny, but it comes off a bit lame and try-hard. These are far from 8 Mile-worthy battle rhymes. If it really wanted to let customers decide, it could have just accepted the C&D and moved on…or not run the billboard at all. It still has four others that don’t slam competitors running. That said, Gusto does look petty trying to block the billboard and hide that it’s unequipped to support massive teams.
We reached out to Gusto over the weekend and again today asking for comment, whether it will drop the C&D, if it’s trying to get Rippling’s bus ads dropped too and if it does in fact use Workday internally.
[Update 2pm Pacific: Gusto’s PR representative Paul Loeffler claims that “This is common business practice in maintaining a brand”, says that for Gusto “A core, but not exclusive focus, are small businesses”, and admits that “as Gusto itself has grown to become a large-scale company, we have different needs than many of our customers and transitioned to Workday.”
Finally, he declares that “We’re excited to see more companies create new solutions that make it easier for businesses to take care of and support their teams” despite theatening to sue one that was. If Gusto itself grew out of Gusto, an ad asking if its customers are too seems wholly accurate.]

Given Gusto has raised $516 million — 10X what Rippling has — you’d think it could just outspend Rippling on advertising or invest in building the enterprise HR tools so customers really couldn’t outgrow it. They’re both Y Combinator companies with Kleiner Perkins as a major investor (conflict of interest?), so perhaps they can still bury the hatchet.
At least they found a way to make the HR industry interesting for an afternoon.
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1. HQ Trivia shuts down after acquisition falls through
HQ Trivia is dead. On Valentine’s Day, the company laid off its full team of 25. The company had a deal in the works to be acquired, but the buyer pulled out and the investors aren’t willing to fund it any longer, according to a statement from CEO and co-founder Rus Yusupov.
At least the game went out with a bonkers finale, where the hosts cursed, sprayed champagne, threatened to defecate on the homes of trolls in the chat window and begged for new jobs.
2. Living with the Samsung Galaxy Z Flip
Brian Heater says he enjoyed his (admittedly brief) time with the Galaxy Z Flip. In fact, in many ways, it’s exactly the device that Samsung’s original foldable should have been.
3. Google ends its free Wi-Fi program Station
Google is winding down Google Station, a program where it worked with partners to bring free Wi-Fi to more than 400 railway stations in India and “thousands” of other public places in several additional pockets of the world.
4. Facebook pushes EU for dilute and fuzzy internet content rules
“I do think that there should be regulation on harmful content,” said CEO Mark Zuckerberg during a Q&A session at the Munich Security Conference. He then suggested that Facebook should fall “somewhere in between” media and telco regulation.
5. Is tech socialism really on the rise?
In the second part of our interview with writer/ethicist Ben Tarnoff, he goes in-depth on the relationship between socialism and technology. (Extra Crunch membership required.)
6. Oyo’s revenue surged in FY19, but loss widened, too
Budget-lodging startup Oyo on Monday reported a loss of $335 million on $951 million revenue globally for the financial year ending March 31, 2019, and pledged to cut down on its spending as the India-headquartered firm grows cautious about its aggressive expansion. (Yes, it seems a bit late to be talking about earnings from 2018-19, but that’s how Indian finance law works.)
7. This week’s TechCrunch podcasts
The latest full episode of Equity discusses a big funding round for meditation app Headspace, while its Monday news roundup looks at global growth concerns due to coronavirus. And over at Original Content, we’ve got a review of “Mythic Quest,” the video game-focused comedy on Apple TV+.
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“Not gonna lie. This f*cking sucks. This is the last HQ ever!” yelled host Matt Richards . And it just got crazier from there.The farewell game of HQ Trivia before it shut down last night was a beautiful disaster. The hosts cursed, sprayed champagne, threatened to defecate on the homes of trolls in the chat window, and begged for new jobs. Imagine Jeopardy but Trebek is hyped-up and blacked-out.
Yesterday HQ Trivia ran out of money, laid off its 25 employees, and shut down. It was in talks to be acquired, but the buyer pulled out last minute and investors weren’t willing to pour any money into the sagging game show. It had paid out $6 million in prizes from its $15 million-plus in venture capital since launching in late 2017.
But HQ was in steady decline since February 2018 when it peaked at over 2.3 million concurrent players to just tens of thousands recently. The games grew repetitive, prize money was split between too many winners, co-founder Colin Kroll passed away, original host and quiz daddy Scott Rogowsky was let go, the startup’s staff failed in an attempt to mutiny and oust the CEO, and layoffs ensued. You can read how it all went down here.
But rather than wither away, the momentary cultural phenemenon went out with a bang. “Should HQ trivia shut down? No? Yes? Or f*ck no!” Richards cackled.
You can watch the final show here, and we’ve laid out some of Richards’ and co-host Anna Roisman’s choicest quotes from HQ’s last game:
“Who likes healthy snacks! That’s why the investors stopped giving us money, because there wasn’t any f*cking snacks in this b*tch. We were snackless. Who the fuck can work in a place without snacks!” -RichardsThen things really went off the rails at 41 minutes in, cued up here:
Farewell, HQ Trivia, you glorious beast.
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HQ Trivia is dead. Today the company laid off its full staff of 25 and will cease operation of its trivia, sports and word guessing games, a source close to the company confirmed.
HQ Trivia had a deal in the works to be acquired, but the buyer pulled out yesterday and investors aren’t willing to fund it any longer, CEO and co-founder Rus Yusupov said in a statement attained by CNN Business’ Kerry Flynn:

“We received an offer from an established business to acquire HQ and continue building our vision, had definitive agreements and legal docs, and a projected closing date of tomorrow, and for reasons we are still investigating, they suddenly changed their position and despite our best efforts, we were unable to reach an agreement,” Yusupov writes. “Unfortunately, our lead investors are no longer willing to fund the company, and so effective today, HQ will cease operations and move to dissolution. All employees and contractors will be terminated as of today.”
With HQ we showed the world the future of TV. We didn’t get to where we hoped but we did stretch the world’s imagination for what’s possible on our smartphones. Thanks to everyone who helped build this and thanks for playing.
— Rus (@rus) February 14, 2020
Launched in October 2017, TechCrunch wrote the first coverage of the 12-question live video trivia game started by two of the former Vine founders. Users could win real money by answering all the questions and not being eliminated in multiple daily games. HQ Trivia had raised more than $15 million, including a Series A led by Founders Fund. At one point it had more than 2.3 million concurrent players.

But eventually the novelty began to wear off. Cheaters came in, splitting the prize money down to just a few dollars or cents per winner. Copycats emerged internationally. Engineering issues led users to get kicked out of the game.
Then tragedy struck. Co-founder Colin Kroll passed away. That exacerbated internal problems at HQ Trivia. Product development was slow, leading users to grow tired of the game. New game types and viral features materialized too late.
A failed internal mutiny saw staffers prepare to petition the board to remove Yusupov from the CEO position. When he caught wind of the plot, organizers of the revolt were fired. Morale sunk. By July 2019, downloads were just 8% of their previous year’s, and 20% of the staff was laid off. HQ managed about 15 million all-time installs, peaking at 2 million in February 2018, while last month it had just 67,000, according to Sensor Tower.
The demise of HQ Trivia demonstrates the fickle nature of the gaming industry, and the startup scene as a whole. Momentary traction is no guarantee of future success. Products must continually evolve and adapt to their audience to stay relevant. And executives must forge ahead while communicating clearly with their teams, even amongst uncertainty, or find their companies withered by the rapid passing of time.
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Want to spice up the bedroom without paying for pills or awkward visits to a sex therapist? A new app called Lover lets you take a sexual personality quiz, explore carnal knowledge tutorials and discretely figure out which turn-ons you share with your partner. Built by board-certified sexual medicine clinical psychologist Dr. Britney Blair, Lover launches today on iOS with $5 million in seed funding from Tinder founder Sean Rad and other investors.
“It is strange that there are such taboos around sex when it is something we all do…whether we enjoy ourselves or not. We think it is time to start the conversation around this important aspect of our health,” says Dr. Blair. “We believe Lover can help build confidence, facilitate communication, improve partner connection and just raise consciousness about sex and sexuality.”

A solid portion of Lover’s content is free for the first seven days, including audio guides to oral sex, video explainers on how to be generous in bed and multi-step “playlists” of content like “Getting Hard, Made Easy.” Lover charges $9.99 per month or $59.99 per year for continued access to themed educational materials like “Coreplay Not Foreplay” and “Fantasy To Reality” that are recommended based on the results of your sexual questionnaire.
“Almost 50% of women and 40% of men have a sexual complaint . . . [but] most people don’t realize how common and treatable their issues are,” Dr. Blair tells me. “In our [pre-launch tests] focused purely on erectile dysfunction, 62% of users reported improvements to their erections within three weeks of using the app. That’s pretty wild when you think Viagra’s efficacy rate is approximately 65% and it lasts only five hours.”
Startups like digital pharmacy Ro have scored $500 million valuations just 18 months after launch by prescribing and selling men’s health drugs like Viagra. Lover sees a market for education-based alternative approaches to sexual wellness.
Lover co-founders (from left): Jas Bagniewski, Dr. Britney Blair and Nick Pendle
Dr. Blair got interested in the space a decade ago after a Stanford grad school lecture illuminated how prevalent sexual problems are but how quickly they can be resolved with learning and communication. She teamed up with her CEO Jas Bagniewski, who’d been the manager of Europe’s largest e-commerce business, Zalando in the U.K., and a founder of City Deal that sold to Groupon. Bagniewski and fellow Lover co-founder Nick Pendle started European Casper mattress competitor Eve Sleep and brought it to IPO.
The plan is to combine Dr. Blair’s educational materials with Bagniewski and Pendle’s e-commerce chops to monetize Lover through subscriptions and eventually recommending products like sex toys for purchase. Now they have $5 million in seed funding led by Lerer Hippeau, and joined by Manta Ray Ventures, Oliver Samwer’s Global Founders Capital, Fabrice Grinda and Jose Marin. The cash will go toward building out an Android app and adding games that partners can play together in bed.

There are plenty of random sex tip websites out there. Lover tries to differentiate itself by personalizing content based on the results of a Myers-Briggs-esque quiz. This asks you how adventurous, communicative and assertive you are. You then receive a classification like “The Muse” with a few pages of explanation, for example, revealing how you like to inspire others while being the center of attention.
From there, Lover can suggest guides for mastering your own sexual personality or branching out into new behavior patterns. There’s also a feature copied from another app called XConfessions for figuring out what you and your partner like. You connect your apps and then separately swipe yes or no on questions about whether you’d like “having your partner drip candle wax on you” or “your partner dressing as a strict cop.” If you and they match, the app tells you both so you can try it out.
Overall, Lover’s content is a lot higher quality and more compassionate than where most people learn about sex: pornography. Having a real sexual medicine doctor overseeing the app lends credibility to Lover. And the design and tone throughout make you feel empowered rather than sleazy.
Still, Dr. Blair admits that “it’s hard to motivate people into behavioral change, people already have subscription apps on their phones and we may run into ‘subscription fatigue.’ ” People might feel natural paying for Viagra because the impact is obvious. The value of a subscription to sex tips might seem too vague or redundant to what’s free online.
To get a lot of users opening their wallets, not just their pants, Lover will need to do a better job of previewing what’s behind the paywall, and offering more interactivity that online content lacks. But if it can give users one unforgettable night thanks to its advice, it may be able to seduce them for the long-run.
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