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Creator’s transparent burger robot doesn’t grind your brisket and chuck steak into a gourmet patty until you order it. That’s just one way this startup, formerly known as Momentum Machines, wants to serve the world’s freshest cheeseburger for just $6. On June 27th, after eight years in development, Creator unveils its first robot restaurant before opening to the public in September. We got a sneak peek…err…taste.
When I ask how a startup launching one eatery at a time could become a $10 billion company, Creator co-founder and CEO Alex Vardakostas looks me dead in the eye and says, “the market is much bigger than that.”
Here’s how Creator’s burger-cooking bot works at its 680 Folsom Street location in San Francisco. Once you order your burger style through a human concierge on a tablet, a compressed air tube pushes a baked-that-day bun into an elevator on the right. It’s sawed in half by a vibrating knife before being toasted and buttered as it’s lowered to conveyor belt. Sauces measured by the milliliter and spices by the gram are automatically squirted onto the bun. Whole pickles, tomatoes, onions and blocks of nice cheese get slices shaved off just a second before they’re dropped on top.
Meanwhile, the robot grinds hormone-free, pasture-raised brisket and chuck steak to order. But rather than mash them all up, the strands of meat hang vertically and are lightly pressed together. They form a loose but auto-griddleable patty that’s then plopped onto the bun before the whole package slides out of the machine after a total time of about five minutes. The idea is that when you bite into the burger, your teeth align with the vertical strands so instead of requiring harsh chewing it almost melts in your mouth.
If you want to be the first to try it, Creator is selling early access tickets at 10am Pacific today. Otherwise it will be open for lunch Wednesdays and Thursdays until the public launch. Eventually, an app will let people customize the exact ratios of all the ingredients, unlocking near infinite permutations.
For now, the startup’s initial pre-set burger options include the classic-style Creator vs. The World with a mole Thousand Island special sauce, the oyster aioli Tumami Burger designed by Chef Tu of Top Chef, The Smoky with charred onion jam and the sunflower seed tahini Dad Burger from Chef Nick Balla of Bar Tartine.
The taste of each is pretty remarkable. The flavor pops out of all the fresh-cut and ground ingredients that lack the preservatives of pre-sliced stuff. The patties hold together as you munch despite being exceedingly tender. And afterwards I felt less of the greasy, gut-bomb, food coma vibe that typically accompanies scarfing down a cheeseburger.
“This is the kind of burger you would get for $12 to $18 [at an upscale restaurant], and it’s $6,” says Vardakostas. It might not be the best burger I’ve had in my life, but it’s certainly the best at that price. A lot of that comes from the savings on labor and kitchen space afforded by a robot cook. “We spend more on our ingredients than any other burger restaurant.”
The CEO wouldn’t reveal how much Creator has raised, but says it’s backed by Google’s GV, frequent food startup investor Khosla Ventures and hardware-focused Root Ventures. However, SEC filings attained by TechCrunch show the startup raised at least $18.3 million in 2017, and sought $6 million more back in 2013.
It’s understandable why. “McDonald’s is a $140 billion company. It’s bigger than GM and Tesla combined. McDonald’s has 40,000 restaurants. Food is one to the top three biggest markets,” Vardakostas rattles off. “But we have a lot of advantages. The average restaurant is 50 percent bigger in terms of square footage.” Then he motions to his big robot that’s a lot smaller than the backside of most fast-food restaurants, and with a smile says, “That’s our kitchen. You roll it in and plug it in.”
Creator co-founder and CEO Alex Vardakostas
What you want in a founder is a superhero origin story. Some formative moment in their life that makes them hellbent on solving a problem. Vardakostas has a pretty convincing tale. “My parents have a burger joint,” he reveals. “My job was to make several hundred of the same burger every day. You realize there’s so much opportunity not taken because you don’t have the right tools, and it’s hard work.”
Robots and engineering weren’t even on his radar growing up in the restaurant in southern California. Then, “when I was 15 my dad took me to a book store for the first time. I started reading about physics and realizing that this could be a possibility.” He went on to study physics at UC Santa Barbara, got to work in the garage, and finally drove up to Silicon Valley to machine the first robot prototype’s parts at the famous Silicon Valley TechShop.
That’s when he met his co-founder and COO Steve Frehn. “Steve told me he was from Stanford and I was super intimidated,” Vardakostas recalls. But the two had a great working rapport, and a knack for recruiting budding mechanical engineers from the college. Momentum Machines started in 2009, was a full-time garage project by 2010, incorporated and joined Lemnos Labs in 2012 and the startup began to make serious progress by 2014.
In the meantime, other entrepreneurs have tried to find a business in food robots. There was the now-defunct Y Combinator startup Bistrobot that haphazardly spurted liquid peanut butter and Nutella on white bread and called it a sandwich. More recently, Miso Robotics’ burger-flipping arm named Flippy made headlines, even though all it does is flip and cook patties on a traditional griddle. “We have an arm that pulls out the burgers, but that’s probably 5 percent of the complexity” of the full Creator robot run by 350 sensors, 50 actuators and 20 computers, Vardakostas scoffs.
The CEO’s past in the kitchen keeps Creator in touch with the human element. He tells me he thinks the idea of a staff-less restaurant where you order on a computer sounds “dystopian.” In fact, he wants to give his food service employees access to new careers. Vardakostas says with a sigh that “people look at restaurant work as a charity case, but man, we just need a chance.” Referring to the old Google policy of letting employees try out side projects, he explains how “Tech companies get 10 percent time but no one does that for restaurant workers.”
“Something we got really excited about in 2012 and we’re just starting to execute on is reinventing the job of working in a store like this, where the machine it taking care of the dirty and dangerous work,” his co-founder Frehn explains. “We’re playing around with education programs for the staff. Five percent of the time they’re paid just to read. We’re already doing that. There’s a book budget. We’re paying $16 an hour. As opportunities come up to fix the machine, there’s a path we’re going to offer people as repair or maintenance people to get paid even more.”
One tradition Creator couldn’t escape was French fries. Vardakostas says they’re basically the least healthy thing you can eat, noting they’re “worse than donuts because there’s more surface area exposed to the frier.” But chefs told him some people simply wouldn’t eat a burger without them. Creator’s compromise is that burgers are paired with hearty miniature farro or seasonal veggie salads by default, but you can still opt for a side of frites.
Creator’s fate won’t just be determined by the burger robot and the people who work alongside it. The startup will have to prove to fast food diners that it can be just as quick and cheap but a lot tastier, and that they’re welcome amongst the restaurant’s bougie Pottery Barn decor. At the same time, it must convince more affluent eaters that a cafeteria-style ordering counter and low price don’t mean low quality. Oh, and the name is a bit rich for a burger spot.
For now, Creator won’t be licensing out its bot or franchising its restaurant, though those could be lucrative. “I don’t want someone putting frozen beef in there or charging way more,” says Vardakostas. Instead, the goal is to methodically expand, and maybe take advantage of its petite footprint to move into airport terminals or bus stations. “We want to get out of San Francisco,” Frehn confidently concludes. “Our business model is pretty simple. We take a really good burger that people like and sell it for half the price.”
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How can you be sure an image wasn’t Photoshopped? Make sure it was shot with Truepic. This startup makes a camera feature that shoots photos and adds a watermark URL leading to a copy of the image it saves, so viewers can compare them to ensure the version they’re seeing hasn’t been altered.
Now Truepic’s technology is getting its most important deployment yet as the way Reddit will verify that Ask Me Anything Q&As are being conducted live by the actual person advertised — oftentimes a celebrity.
But beyond its utility for verifying AMAs, dating profiles and peer-to-peer e-commerce listings, Truepic is tackling its biggest challenge yet: identifying artificial intelligence-generated Deepfakes. These are where AI convincingly replaces the face of a person in a video with someone else’s. Right now the technology is being used to create fake pornography combining an adult film star’s body with an innocent celebrity’s face without their consent. But the big concern is that it could be used to impersonate politicians and make them appear to say or do things they haven’t.
The need for ways to weed out Deepfakes has attracted a new $8 million round for Truepic. The cash comes from untraditional startup investors, including Dowling Capital Partners, former Thomson Financial (which become Reuters) CEO Jeffrey Parker, Harvard Business school professor William Sahlman and more. The Series A brings Truepic to $10.5 million in funding.
“We started Truepic long before manipulated images impacted democratic elections across the globe, digital evidence of atrocities and human rights abuses were regularly undermined, or online identities were fabricated to advance political agendas — but now we fully recognize its impact on society,” says Truepic founder and COO Craig Stack. “The world needs the Truepic technology to help right the wrongs that have been created by the abuse of digital imagery.”
Here’s how Truepic works:
For example, Reddit’s own Wiki recommends that AMA creators use the Truepic app to snap a photo of them holding a handwritten sign with their name and the date on it. “Truepic’s technology allows us to quickly and safely verify the identity and claims for some of our most eccentric guests,” says Reddit AMA moderator and Lynch LLP intellectual property attorney Brian Lynch. “Truepic is a perfect tool for the ever-evolving geography of privacy laws and social constructs across the internet.”
The abuses of image manipulation are evolving, too. Deepfakes could embarrass celebrities… or start a war. “We will be investing in offline image and video analysis and already have identified some subtle forensic techniques we can use to detect forgeries like deepfakes,” Truepic CEO Jeff McGregor tells me. “In particular, one can analyze hair, ears, reflectivity of eyes and other details that are nearly impossible to render true-to-life across the thousands of frames of a typical video. Identifying even a few frames that are fake is enough to declare a video fake.”
This will always be a cat and mouse game, but from newsrooms to video platforms, Truepic’s technology could keep content creators honest. The startup has also begun partnering with NGOs like the Syrian American Medical Society to help it deliver verified documentation of atrocities in the country’s conflict zone. The Human Rights Foundation also trained humanitarian leaders on how to use Truepic at the 2018 Freedom Forum in Oslo.
Throwing shade at Facebook, McGregor concludes that “The internet has quickly become a dumpster fire of disinformation. Fraudsters have taken full advantage of unsuspecting consumers and social platforms facilitate the swift spread of false narratives, leaving over 3.2 billion people on the internet to make self-determinations over what’s trustworthy vs. fake online… we intend to fix that by bringing a layer of trust back to the internet.”
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While applications like Google Maps and Yelp seem to provide an inexhaustible source of information about local restaurants, stores and other points of interest, they also can come up short — moments when you arrive somewhere only to discover that the hours you had were wrong, or the store is closed for a holiday, or it’s just shut down altogether.
The team at StreetCred is trying to build a better system for gathering and selling that data. And it’s raised $1 million in seed funding from Bowery Capital and Notation Capital.
CEO Randy Meech explained that if someone wanted to build the next Uber or the next Pokémon GO, they’d need location data to make it work. And while they could buy that data now, it’s “very difficult, very expensive.”
Plus, he sees room for lots more data — while Foursquare has data about 105 million points of interest and Google has 100 million, Meech estimates that there are more than 1 billion POIs across the world, many of them in developing nations where the data is more spotty.
So StreetCred is building a marketplace where users should be rewarded for collecting this data, while interested companies should be able to buy the data more easily.
Meech has been working on mapping for years, serving as the CTO at MapQuest (which, like TechCrunch, is owned by Verizon/Oath) and then as CEO at Mapzen, an open-source mapping subsidiary of Samsung. That’s where Meech met his StreetCred co-founder Diana Shkolnikov — he said StreetCred was created partly in response to the disappointment of shutting down Mapzen earlier this year.
“If we can get this protocol and data economy right, it can’t be shut down,” Meech said. That means leveraging blockchain technology: “It’s a very natural way to open up and decentralize the data and also to build a payment mechanism around that.”
StreetCred is just starting to test the system out around New York City. The idea is that users can download an app and then collect location data around the city, earning crypto tokens as they do. (They take photos to validate their location, and the data is also verified by other users.) Then companies that want to buy the data can do so by purchasing tokens.
Meech drew parallels to Foursquare, which started as a location-sharing app before building a business around its data. StreetCred, on the other hand, won’t have any social component — Meech said the app will be “completely anonymous” and focus entirely on the collection of location data.
The team is still experimenting with the specific details of how contributions are incentivized and compensated, but Meech said users will be paid through an “anonymized wallet mechanism.” And while it’s important to make sure StreetCred’s tokens can be converted into “fiat currency” (i.e. regular money), Meech said this approach should also mean users are more invested in StreetCred’s success: “We want to build an asset where the value of the currency is tied to the value of the data,” Meech emphasized.
“Our thesis is that if you make the data much more accessible, much cheaper to buy … you’re going to make things a lot easier and enable things that don’t exist today,” he said.
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Instagram’s meteoric rise continues, dwarfing the stagnant growth rates of Snapchat and Facebook. Today Instagram announced that it has reached 1 billion monthly active users, after passing 800 million in September 2017 with 500 million daily users.
That massive audience could be a powerful draw for IGTV, the longer-form video hub it’s launching for creators today. While IGTV monetization options are expected in the future, content makers may flock to it early just to get exposure and build their fan base.
While Snapchat’s daily user count grew just 2.13 percent in Q1 2018 to 191 million, and Facebook’s monthly count grew 3.14 percent to reach 2.196 billion, Instagram is growing closer to 5 percent per quarter.
Hitting the 1 billion user milestone could put pressure on Instagram to carry its weight in the Facebook family and bring home more cash. Facebook doesn’t break out Instagram’s revenue and has never given any guidance about it. But eMarketer estimates that Instagram will generate $5.48 billion in U.S. ad revenue in 2018, up 70 percent from last year. It reports that Instagram makes up 28.2 pecent of Facebook’s mobile ad revenue.
IGTV could open even more premium mobile ad inventory that traditional television advertisers crave, which helped push Facebook’s share price up more that 2.2 precent to $202.
The Instagram brand increasingly looks like Facebook’s life raft. Sentiment toward Facebook, especially amongst teens, has been in decline, and it’s constantly rocked by privacy scandals. But many users don’t even realize Facebook owns Instagram, and still love the photo-sharing app. With the 1 billion user badge, businesses and content creators may take the photo and video app even more seriously. Selling windows into your friends’ worlds is a lucrative business.
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Instagram is ready to compete head-on with YouTube. Today at a flashy event in San Francisco, the company announced it will begin allowing users to upload videos up to one hour in length, up from the previous one-minute limit. And to house the new longer-form videos from content creators and the general public, Instagram is launching IGTV. Accessible from a button inside the Instagram homescreen, as well as a standalone app, IGTV will spotlight popular videos from Instagram celebrities.
The launch confirms TechCrunch’s scoops over the past month outlining the features and potential of IGTV that we said would arrive today, following the WSJ’s report that Instagram would offer videos up to an hour in length.
“It’s time for video to move forward, and evolve,” said Instagram CEO Kevin Systrom onstage at the event. “IGTV is for watching long-from videos from your favorite creators.” Just before he took the stage, Instagram’s business blog outed details of IGTV.
Kevin Systrom onstage at the IGTV launch
IGTV will let anyone be a creator, not just big-name celebrities. People will be able to upload vertical videos through Instagram’s app or the web. Everyone except smaller and new accounts will be able to upload hour-long videos immediately, with that option expanding to everyone eventually.
The IGTV app will be available globally on iOS and Android sometime today, as well as in the Instagram app through a TV shaped button above Stories. “We made it a dedicated app so you can tap on it and enjoy video without all the distraction,” Systrom explained.
In IGTV’s dedicated app or its in-Instagram experience, viewers will be able to swipe through a variety of longer-form videos, or swipe up to visit a Browse tab of personally recommended videos, popular videos, creators they’re following and the option to continue watching previously started videos. Users will also get callouts from the IGTV button alerting them to new content.
IGTV will also let creators develop Instagram Channels full of their different videos that people can subscribe to. Creators will be able to put links in the description of their videos to drive traffic elsewhere.
“There’s no ads in IGTV today,” says Systrom, but he says it’s “obviously a very reasonable place [for ads] to end up.” He explained that since creators are investing a lot of time into IGTV videos, he wants to make that sustainable by offering them a way to monetize in the future. Instagram isn’t paying any creators directly for IGTV videos either, like Facebook did to jump-start its flopped Facebook Watch video hub.With 1 billion users on Instagram, IGTV could be popular with creators not only trying to earn money but grow their audience. Instagram is expected to build out a monetization option for IGTV creators, potentially including ad revenue shares. The big user base could also attract advertisers. eMarketer already expects Instagram to earn $5.48 billion in U.S. ad revenue in 2018. Facebook shareholders loved the sound of more premium ad inventory that businesses crave as they shift spend away from television. Facebook’s share price is up over 2.2 percent today to nearly $202.
Instagram has evolved far beyond the initial simplicity of just filtering and sharing photos. When it launched, mobile networks, screens and cameras weren’t ready for longer-form video, and neither were users. As more families cut the cord or teens ignore television altogether, though, Instagram has an opportunity to become the TV of mobile. YouTube may always have a wider breadth of content, but through curation of creators and publishers’ video content, Instagram could become the reliable place to watch something great on the small screen.
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Facebook is starting to let Group admins charge $4.99 to $29.99 per month for access to special sub-Groups full of exclusive posts. A hand-picked array of parenting, cooking and “organize my home” Groups will be the first to get the chance to spawn a subscription Group open to their members.
During the test, Facebook won’t be taking a cut, but because the feature bills through iOS and Android, those operating systems get their 30 percent cut of a user’s first year of subscription and 15 percent after that. But if Facebook eventually did ask for a revenue share, it could finally start to monetize the Groups feature that’s grown to more than 1 billion users.
The idea for subscription Groups originally came from the admins. “It’s not so much about making money as it is investing in their community,” says Facebook Groups product manager Alex Deve. “The fact that there will be funds coming out of the activity helps them create higher-quality content.” Some admins tell Facebook they actually want to funnel subscription dues back into activities their Group does together offline.
Content users might get in the exclusive version of groups includes video tutorials, lists of tips and support directly from admins themselves. For example, Sarah Mueller’s Declutter My Home Group is launching a $14.99 per month Organize My Home subscription Group that will teach members how to stay tidy with checklists and video guides. The Grown and Flown Parents group is spawning a College Admissions and Affordability subscription group with access to college counselors for $29.99. Cooking On A Budget: Recipes & Meal Planning will launch a $9.99 Meal Planning Central Premium subscription group with weekly meal plans, shopping lists for different grocery stores and more.
But the point of the test is actually to figure out what admins would post and whether members find it valuable. “They have their own ideas. We want to see how that is going to evolve,” says Deve.
Here’s how subscription Groups work. First, a user must be in a larger group where the admin has access to the subscription options and posts an invitation for members to check it out. They’ll see preview cards outlining what exclusive content they’ll get access to and how much it costs. If they want to join, and they’re already an approved member of larger free group, they’re charged the monthly fee right away.
They’ll be billed on that date each month, and if they cancel, they’ll still have access until the end of their billing cycle. That prevents anyone from joining a group and scraping all the content without paying the full price. The whole system is a bit similar to subscription patronage platform Patreon, but with a Group and its admin at the center instead of some star creator.
Back in 2016, Facebook briefly tested showing ads in Groups, but now says that was never rolled out. However, the company says that admins want other ways beyond subscriptions to build revenue from Groups and it’s considering the possibilities. Facebook didn’t have any more to share on this, but perhaps one day it will offer a revenue split from ads shown within groups.
Between subscriptions, ad revenue shares, tipping, sponsored content and product placement — all of which Facebook is testing — creators are suddenly flush with monetization options. While we spent the last few decades of the consumer internet scarfing up free content, creativity can’t be a labor of love forever. Letting creators earn money could help them turn their passion into their profession and dedicate more time to making things people love.
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TechCrunch has learned that the Instagram longer-form video hub that’s launching tomorrow is called IGTV and it will be part of the Explore tab, according to multiple sources. Instagram has spent the week meeting with online content creators to encourage them to prepare videos closer to 10-minute YouTube vlogs than the 1-minute maximum videos the app allows today. Videos can range from 15 seconds to 60 minutes.
You can read our full post about the official IGTV launch here, and read about Instagram hitting 1 billion users.
Instagram is focusing its efforts around web celebrities that made their name on mobile rather than more traditional, old-school publishers and TV studios that might come off too polished and processed. The idea is to let these creators, who have a knack for this style of content and who already have sizeable Instagram audiences, set the norms for what IGTV is about.
Instagram declined to comment on the name IGTV and the video hub’s home in app’s Explore tab.
[Update 6/19/18 11pm pacific: A screenshot of the uploader for the new long-form video feature and more from Matt Navarra shows Instagram will allow clips between 15 seconds and 60 minutes.]
[Update 6/20/18 9:15am pacific: Instagram and YouTube celebrity Lele Pons posted that she’s part of a special Instagram announcement today at 10am pacific. This further backs up our report that today’s IGTV announcement is focused on creators.]
[Update 6/20/18 10:40am pacific: Leaked screenshots confirm Instagram is launching “IGTV” today. The images come courtesy of TechCrunch’s favorite app investigator Jane Manchun Wong. You can see more about how IGTV works above.]
We’ll get more information at the feature’s launch event in San Francisco tomorrow at 9am Pacific.
Following the WSJ’s initial report that Instagram was working on allowing videos up to an hour long, TechCrunch learned much more from sources about the company’s plan to build an aggregated destination for watching this content akin to Snapchat Discover. The videos will be full-screen, vertically oriented, and can have a resolution up to 4K. Users will be greeted with collection of Popular recent videos, and the option to Continue Watching clips they didn’t finish.
The videos aren’t meant to compete with Netflix Originals or HBO-quality content. Instead, they’ll be the kind of things you might see on YouTube rather than the short, off-the-cuff social media clips Instagram has hosted to date. Videos will offer a link-out option so creators can drive traffic to their other social presences, websites, or ecommerce stores. Instagram is planning to offer direct monetization, potentially including advertising revenue shares, but hasn’t finalized how that will work.
We reported that the tentative launch date for the feature was June 20th. A week later, Instagram sent out press invites for an event on June 20th our sources confirm is for IGTV.
Based on its historic growth trajectory that has seen Instagram adding 100 million users every four months, and its announcement of 800 million in September 2017, it’s quite possible that Instagram will announce it’s hit 1 billion monthly users tomorrow. That could legitimize IGTV as a place creators want to be for exposure, not just monetization.
IGTV could create a new behavior pattern for users who are bored of their friends’ content, or looking for something to watch in between Direct messages. If successful, Instagram might even consider breaking out IGTV into its own mobile app, or building it an app for smart TVs
The launch is important for Facebook because it lacks a popular video destination since its Facebook Watch hub was somewhat of a flop. Facebook today said it would expand Watch to more creators, while also offering new interactive video tools to let them make their own HQ trivia-style game shows. Facebook also launched its Brand Collabs Manager that helps businesses find creators to sponsor. That could help IGTV stars earn money through product placement or sponsored content.
Until now, video consumption in the Facebook family of apps has been largely serendipitous, with users stumbling across clips in their News Feed. IGTV will let it more directly compete with YouTube, where people purposefully come to watch specific videos from their favorite creators. But YouTube was still built in the web era with a focus on horizontal video that’s awkward to watch on iPhones or Androids.
With traditional television viewership slipping, Facebook’s size and advertiser connections could let it muscle into the lucrative space. But rather than try to port old-school TV shows to phones, IGTV could let creators invent a new vision for television on mobile.
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The founders of entrepreneurial community Startup Grind have a startup of their own — Bevy, which announced today that it has raised $6.4 million in Series A funding.
The funding comes from Upfront Ventures, author Steve Blank, Qualtrics founders Ryan Smith and Jared Smith, and Pluralsight CEO Aaron Skonnard.
CEO Derek Andersen (who founded and runs both Bevy and Startup Grind with CTO Joel Fernandes) said that the product was created to deal with Startup Grind’s challenges as the team tried to organize events using a mix of Eventbrite, Meetup and MailChimp,
“It worked fine at first, but a few years later, we looked up and we had hundreds of cities, and we had maybe 500 people that were working on it, and it was too much,” Andersen said. “For the first time in many years, we started to get smaller instead of bigger. We were spending all of this time just running triage and maintenance on the platform.”
So in early 2016, the team built its own event management software, with what Andersen said was “no intention of anyone else using it.” But eventually, he realized that other companies were facing similar problems, so he launched Bevy as a separate startup to further develop and commercialize the product.
“We really focus on the smaller, community events,” Andersen added. “If you just do a conference, Eventbrite is great — I’ve hosted thousands of events on Eventbrite. But if you want to host five or 10 events a month or jack that number up anywhere above that, and you don’t want to hire 10 people, then that’s really what we’re perfect to do.”
Usually, these are events where community members play a big role, or are even doing most of the organizing themselves. So beyond supporting tasks like creating event listings, sending out promotional emails and managing sponsorships, Andersen said one of Bevy’s big differentiators is the ability to precisely control which users are authorized to perform different roles at different events.
In addition, Andersen said that with Bevy, companies can create fully branded experiences and get full access to the customer data around their events. Customers include Atlassian, Duolingo, Docker, Evernote and Asana.
Andersen also suggested that the company is taking advantage of a broader shift in marketing, where companies are relying more on their own customers and communities.
“All the best companies do it today,” he said. He predicted that in the future, “Every company will have a customer-to-customer marketing strategy. Now we’ve made it affordable and turnkey.”
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Facebook wants to help connect brands to creators so they can work out sponsored content and product placement deals, even if it won’t be taking a cut. Confirming our scoop from May, Facebook today launched its Brand Collabs Manager. It’s a search engine that brands can use to browse different web celebrities based on the demographics of their audience and portfolios of their past sponsored content.
Creators hoping to score sponsorship deals will be able to compile a portfolio connected to their Facebook Page that shows off how they can seamlessly work brands into their content. Brands will also be able to find them based on the top countries where they’re popular, and audience characteristics like interests, gender, education, relationship status, life events or home ownership.
Facebook also made a wide range of other creator monetization announcements today:
Facebook also made a big announcement today about the launch of interactive video features and its first set of gameshows built with them. Creators can add quizzes, polls, gamification and more to their videos so users can play along instead of passively viewing. Facebook’s Watch hub for original content is also expanding to a wider range of show formats and creators.
Facebook needs the hottest new content from creators if it wants to prevent users’ attention from slipping to YouTube, Netflix, Twitch and elsewhere. But to keep creators loyal, it has to make sure they’re earning money off its platform. The problem is, injecting Ad Breaks that don’t scare off viewers can be difficult, especially on shorter videos.
But Vine proved that six seconds can be enough to convey a subtle marketing message. A startup called Niche rose to arrange deals between creators and brands who wanted a musician to make a song out of the windows and doors of their new Honda car, or a comedian to make a joke referencing Coca-Cola. Twitter eventually acquired Niche for a reported $50 million so it could earn money off Vine without having to insert traditional ads. [Disclosure: My cousin Darren Lachtman was a co-founder of Niche.]
Vine naturally attracted content makers in a way that Facebook has had some trouble with. YouTube’s sizable ad revenue shares, Patreon’s subscriptions and Twitch’s fan tipping are pulling creators away from Facebook.
So rather than immediately try to monetize this sponsored content, Facebook is launching the Brand Collabs Manager to prove to creators that it can get them paid indirectly. Facebook already offered a way for creators to tag their content with disclosure tags about brands they were working with. But now it’s going out of its way to facilitate the deals. Fan subscriptions and tipping come from the same motive: letting creators monetize through their audience rather than the platform itself.
Spinning up these initiatives to be more than third-rate knockoffs of Niche, YouTube, Patreon and Twitch will take some work. But hey, it’s cheaper for Facebook than paying these viral stars out of pocket.
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Rather than build its own HQ trivia competitor, Facebook is launching a gameshow platform. Today the company announced a new set of interactive live and on-demand video features that let creators add quizzes, polls, challenges and gamification so players can be eliminated from a game for a wrong answer. The features could help Facebook achieve its new mission to push healthier active video consumption rather than passive zombie watching that hurts people’s well-being. Creators and publishers who want early access can sign up here.
Gameshow launch partners include Fresno’s What’s In The Box, where viewers guess what’s inside, and BuzzFeed News’ Outside Your Bubble, where contestants have to guess what their opponents are thinking. Plus, Facebook is testing the ability to award prize money with (Business) INSIDER’s Confetti, where viewers answer trivia questions and can see friends’ responses, with winners splitting the cash.
“Video is evolving away from just passive consumption to more interactive two-way formats,” Facebook’s VP of video product Fidji Simo tells TechCrunch. “We think creators will want to reward people. If this is something that works with Insider and Confetti, we may consider rolling out payments tools.”
When asked if Facebook was inspired by HQ, Simo repeatedly dodged the question and avoided mentioning the startup’s name, but relented in saying, “I think they’re part of a much broader trend that is making content interactive. We’ve seen that across much more than one player.”
Facebook won’t be taking a share of the prize money in this test. For now, it’s also forgoing its cut of its $4.99 per month subscriptions option that lets fans pay for exclusive content, which rolls out today to more creators. Facebook also just launched its Brand Collabs Manager that we scooped in May, which helps brands browse creators by demographic and portfolio so they can set up sponsored content and product placement deals.
Initially Facebook is not taking a cut there either. For all three of these features, though, Simo says “that doesn’t mean we never will.” Creators can sign up for these monetization options here.
The new interactive video features will be available to all publishers and creators, alongside the global launch of the Android version of Facebook’s Creator app for web celebs. The tools range from offering basic in-video polls to creating a full trivia gameshow. Creators will be able to write out their trivia questions and designate correct answers, as well as “write down the logic of the game,” says Simo.
While polls will work for Live and on-demand videos, gamification that impacts the outcome of the broadcast is only for Live. Brent Rivera and That Chick Angel are two creators who will be testing the features in the coming weeks. Facebook already found that fans enjoyed polling on its Watch show Help Us Get Married, which let viewers influence the wedding planning decisions about themes and the venue.
Facebook’s last attempt at original video, its Watch hub, saw mediocre adoption as the content felt also-ran rather than something special or must-see. That’s why Facebook is expanding Watch to offer a broader range of shows for more creators, including potentially longer or non-episodic content. That includes bringing Facebook videos originally only hosted on Pages into the Watch destination.
Facebook’s family of apps will get another chance at an original video home run when Instagram launches its long-form video hub tomorrow, according to TechCrunch’s sources.
What we’re seeing here is positioning that diverges Facebook and Instagram’s video efforts. Facebook’s might be more interactive, about playing and watching with friends, and embrace more novel new formats like mobile gameshows. Instagram, with its history of polished photos, could house more traditional high-end entertainment content.
“We’re not trying to do one show or one trivia game. We’re trying to get every creator to create such gameplay. The beauty of the creators space is that they each have a unique audience,” Simo tells me. With 2.2 billion users, making an in-house one-size-fits-all game may have been impossible.
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