News: Can data fix healthcare?

• February 20, 2021
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Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s broadly based on the daily column that appears on Extra Crunch, but free, and made for your weekend reading. Want it in your inbox every Saturday morning? Sign up here. Ready? Let’s talk money, startups and spicy IPO rumors. Can data fix healthcare? Not alone, but

Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s broadly based on the daily column that appears on Extra Crunch, but free, and made for your weekend reading. Want it in your inbox every Saturday morning? Sign up here.

Ready? Let’s talk money, startups and spicy IPO rumors.

Can data fix healthcare?

Not alone, but you might be able to make a lot of progress with the right data in the right hands. And that’s precisely what the startup we’re talking about today is up to.

The Exchange caught up with Terry Myerson and Lisa Gurry this week, the CEO and CMO of Truveta, a young company that wants to collect oodles of data from healthcare providers, anonymize it, aggregate it and make it available to third parties for research.

It’s a big task, but the team behind Truveta has experience with big projects. Myerson is best known for his time one-rung below the top of the Microsoft org chart, where he ran things you might have heard of, like Windows. Gurry was a leader inside that org, most recently working on strategy for the Microsoft Store product.

But now they are at a healthtech data company. How did that come to be? After Myerson left Microsoft he worked with Madrona, the Seattle-area venture capital firm, and the Carlyle Group, a huge investing group with a taste for private equity. A few years later, several former Microsoft co-workers of Myerson had wound up at Providence, a healthcare giant. They reached out to Myerson around when COVID-19 was first locking down the United States. The former Microsoft exec agreed to take part in a few calls, but didn’t formally join them as he was stuck at home.

During that time he learned that Providence had put together a white paper concerning the idea that Truveta would become, that by collecting data from healthcare providers a dataset of sufficient size and diversity could be compiled to allow research of all sorts to leverage it. Myerson got stuck on the concept, later founding the company. Then he called up some former colleagues, including Gurry, to help him build it.

Truveta has around 50 people today and will scale to around 100 this year, Myerson said.

Questions abound in your head, I’m sure. Things are still early at Truveta, but the company announced last week that it has signed up 14 healthcare providers to help with its data goals. Those firms are also investors in the company (Myerson put in capital in as well).

I was curious about the company’s business plan. Per Myerson, Truveta will charge different rates depending on who wants to access its data. As you can imagine, commercial entities will pay a different price than an independent researcher.

Next for Truveta is getting more data, locking down its internal data schema, collecting feedback from researchers and, later, approaching commercial access.

Healthcare in America is inequitable — something that the pair of Truveta executives stressed during our call — thus giving the company a huge market to improve and make less racist and sexist.

It was a bit odd to talk to Myerson and Gurry about their startup. In the past I’d chatted with them about some of Microsoft’s largest platforms. Let’s see how fast they can transform Truveta from an idea I can’t help but dig, to a company that is a viable commercial concern. And then how big they can grow it.

Market Notes

A lot has happened in the past few days that we couldn’t get to. Adyen’s earnings, for example. The European payments platform reported H2 revenues of €379.4 million, up 28% compared to the year ago half-year. And from that it reported EBITDA of €236.8 million. Who said fintech can’t be profitable? (Note: Adyen’s results are required reading if you care about Stripe’s valuation and future public offering.)

And there were some rounds that also fell through our fingers. Investments like CloudTalk’s recent $7.3 million Series A. The Slovakia-based startup previously raised a $1.6 million seed round in 2019. The startup, as its name suggests, offers cloud telephony services to call centers.

We suspected that CloudTalk probably had a pretty good year in 2020 thanks to global growth in remote work. It did. In an email, CloudTalk said that it has not seen “Zoom-like [growth] figures” but that in 2020 demand for its services “exceeded [its] expectations.” That helps explain its latest round.

The Exchange was also curious if the company had a perspective on subscription pricing versus consumption pricing, a rising topic amongst software dorks such as myself (more to come on this next week with notes from Appian, Fastly and others). Per the company, CloudTalk charges “for both seats and for usage,” making it a hybrid company from a pricing perspective. CloudTalk called its pricing setup “a good balance for both parties because customers like to know what they are going to be paying ahead of time.”

It’s a startup to keep in mind. As is Zolve, a globally themed neobank with a focus on helping expats have a working financial world. I couldn’t get to it, but TechCrunch wrote it up. More here.

And in case you didn’t have time to watch television during work the last few days let’s talk about Robinhood. Which enjoyed a Congressional hearing this week that was mostly dull apart from some notes on the fintech giant’s business model.

Finally, it was a busy week for crowded startup niches. There was more money for OKR startups, leading to our question about VCs putting capital into related companies in the future. Public also raised several hundred million dollars. Because why not. And low-code player OutSystems raised $150 million to round out the group. It was one hell of a week.

Various and Sundry

I will leave you with a few data points. First, that Clubhouse’s metrics are finally starting to match the hype around the product. People are showing up in droves, pushing its total download figures over the 10 million mark.

And in news that I missed, Substack crossed the 500,000 subscriber mark. That’s impressive!

And to close, a Chicago-based, home-focused insurtech startup called Kin crossed the $10 billion “total insured property value” mark this week. The Exchange reached out, asking the company about its economics. After all it’s not hard to run up premium volume if you are selling dollars for 50-cent pieces.

Ruth Awad from the company responded that her company’s “ loss rate is 53% and our gross margins are 32%.” Not bad at all. Given how quickly insurtech has gone from experiment to public-success, Kin is a company to keep tabs on.

Wrapping, please make sure to support your local heavy metal band this weekend,

Alex

News: South Korea’s prime minister has joined Clubhouse

• February 20, 2021
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After garnering an estimated 8 million downloads since its launch, Clubhouse’s popularity continues across the world and even outside of its original tech-focused seed community. The latest news comes from East Asia, where Korean media reported this morning that the country’s current prime minister, Chung Sye-kyun, has officially joined the social audio app under the

After garnering an estimated 8 million downloads since its launch, Clubhouse’s popularity continues across the world and even outside of its original tech-focused seed community.

The latest news comes from East Asia, where Korean media reported this morning that the country’s current prime minister, Chung Sye-kyun, has officially joined the social audio app under the username @gyunvely, making him among the most senior political leaders worldwide to join the burgeoning app. His account was created on Valentine’s Day (February 14th) and was “nominated” by a user using the name of TJ Park (Clubhouse does not have verified profiles).

So far, the prime minister has garnered slightly fewer than 500 followers and is following a bit fewer than 200 accounts, perhaps indicating the app’s current reach in one of the world’s most mobile and connected digital economies. His Clubhouse bio reads “노란잠바 그 아저씨” or “That Yellow Jacket Guy,” a reference to the Korean civil defense uniform worn by politicians in times of crisis (such as throughout the COVID-19 pandemic) and which currently serves — in cartoon form — as Chung’s profile picture.

According to local media reports, Chung spoke in a Clubhouse room for over an hour with fellow Democratic Party of Korea member Jung Cheong-rae. In a public Facebook post yesterday, the prime minister said that “I heard this [app] is ‘hot’ these days so I tried it as a nighttime walk.”

He further said “I was a little startled by the unexpected questions and reactions but the new experience was enjoyable. I think I’ll participate from time to time in the future.” Elaborating, he said “the fact that it’s audio-only and everyone can have a conversation without reserve made me think that it’s a better communication tool than any other social media platforms, especially since currently we’re living in the age of non-face-to-face communication.”

Discussions in the Clubhouse room included questions asking whether it was really him, to more bread-and-butter policy issues like the high price of real estate and physical abuse in the sports world, which has dominated headlines in recent weeks in local media.

While Clubhouse has become something of a fixture for techies and every form of hustle culture connoisseur imaginable, the app has increasingly made forays into politics that are hardly unknown to other social networks.

Miami’s mayor Francis Suarez has been on Clubhouse to sell his city’s potential for the tech industry. San Francisco district attorney Chesa Boudin joined a “debate” on the platform about the future of SF, while NYC mayoral aspirant and all around UBI nerd Andrew Yang joined a discussion about … himself. Meanwhile, Bitcoin aficionado and itinerant Tesla leader Elon Musk has even proposed bringing Vladimir Putin onto Clubhouse for a live fireside chat.

Yet, as the platform expands globally, the challenges to its open and free-wheeling if somewhat moderated conversations are coming under closer scrutiny. China has now blocked Clubhouse within its borders after a brief period of uncensored conversation.

As Clubhouse continues to garner mainstream legitimacy and interest, questions continue to percolate on the future of the app’s success, such as how it will fund creators and continue to thrive once the world opens up after COVID-19.

News: Chief community officer is the new CMO

• February 20, 2021
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Community isn’t a single Slack group or event or newsletter. It’s an aggregation of all of these touch points, and includes both customers, eventual customers and one-time users. Despite this nebulous, disconnected reality, companies are paying more attention to various channels as remote work and digital communication powers our days. My recent tweet underscored the

Community isn’t a single Slack group or event or newsletter. It’s an aggregation of all of these touch points, and includes both customers, eventual customers and one-time users. Despite this nebulous, disconnected reality, companies are paying more attention to various channels as remote work and digital communication powers our days. My recent tweet underscored the chord community strikes even in sectors such as edtech, which often have to sell to fragmented customer bases.

A conversation that I’ve been having over the last week is that startups are finally investing in community in a meaningful way, dedicating actual budgets to community instead of simply stealing a few dollars away from the sales and marketing team.

As one founder told me, “chief community officer is the new CMO.” That piqued my interest, especially because I had just talked to Commsor founder Mac Reddin about his recent funding, a $16 million Series A led by Felicis and Seven Seven Six Ventures.

As the ‘aha’ moment of community continues, Commsor is a solution to help community managers prove that they’re not wasting the budget, and outcomes. Commsor, he says, is the operating system for communities, helping companies distill how their different communities look, and feel, which could eventually trickle down into generating sales leads and revenue. Commsor could pull an insight like, ‘here are three engineers that are using your platform from Google, maybe it’s time to approach Google and ask if they want an enterprise contract.” Finding those sweet spots, and bottoms-up community adopters, is Commsor’s bread and butter.

Commsor, which is still in private beta, says that over the last year there has been a “huge increase” in startups that have a community budget or increase in community budget. To be a startup aiming to disrupt a category that still has a tone of gray in it comes with its own challenges.

Commsor launched C School to help aspiring community managers learn the trade, as well as a fund to back companies in the space. It also posted a memo with signatures from companies like Hopin, Lattice and Notion to show the commitment to defining the community space.

“We are kind of what Customer Success was 10 years ago, or what Revenue Operations was 300 years ago,” Reddin said. “People care about it and there are roles, but there’s still a lot of defining and growth to be done.”

In the rest of this newsletter, we’ll get into early-stage startup competition, the pipeline problem, and Bitcoin breaking barriers. As always, you can find me on Twitter @nmasc_ or e-mail me natasha.m@techcrunch.com. Want Startups Weekly in your inbox every Saturday. Sign up here.

Will your investor put money into a competitor?

When an investor backs a startup, they ideally think that the company will be the winner in said category, whether it’s CBD gummies, financial plumbing or peer-to-peer car-sharing. So, if they place a bet in a competing startup the investment could serve as both a negative signal and a reputation hit.

Here’s what to know, via Alex Wilhelm: As software markets mature, maybe the investing playing field is opening up to investing in competitors? Call it conveniently complementary investments.

Etc: In this week’s Equity episode, we talked about the complexity of competition within startups, and how one firm’s investments seem to all perfectly and conveniently fit into each other. I’ll make you listen to the episode to figure out who, but here’s a hint: Is there a world where Dispo creators track monetization from Clubhouse through Stir?

An Olive startup competes with Amazon

Ambitious early-stage founders often have to answer a common question from investors and journalists: What if Facebook, Apple, Amazon, Netflix or Google built your startup? The idea behind the question is figuring out why a founder is specifically and uniquely qualified to solve a problem, even if a behemoth business throws millions of dollars and a team of engineers at it.

Here’s what to know via Jet co-founder Nate Faust: He sold his business to Walmart for $3 billion in 2016, and now he’s back to compete with Amazon with a sustainable e-commerce play. Olive consolidates a shopper’s purchases into a single weekly delivery in a reusable package.

Faust acknowledged that Olive runs counter to the “arms race” between Amazon and other e-commerce services working to deliver purchases as quickly as possible. But he said that the startup’s consumer surveys found that shoppers were willing to wait a little longer in order to get the other benefits.

Etc: If you were wondering when it makes sense to compete with Zoom, these four edtech startups and Google might have some information for you.

Bust the myth of the pipeline problem

The lack of diversity in Silicon Valley, from the check-writers to the employees, has often been chalked up to the pipeline problem: the idea that there isn’t enough enough diverse, qualified talent to fill roles. But recent research underscores how aged, and flawed, this mindset might be. Reporter Megan Rose Dickey interviewed Dr. Joy Lisi Rankin, a research lead for gender, race and power in artificial intelligence at the AI Now Institute.

Here’s what to know, according to Rankin:

“The pipeline is a way to silo all of that out and say, ‘we just need to get more Black women in tech,’ as opposed to saying, ‘actually, these companies are and have been racist and white supremacist and misogynist, and it’s those institutions and larger societal and global capitalist structures that need to change.”

Rankin adds that transparency around hiring and corporate recruiting could help combat biases and signal important information to talent.

Etc: At TC Sessions: Justice next month, we’ll be talking about how research like this, as well as structures within venture capital, impacts early-stage founders. Speakers include Arlan Hamilton, the founder of Backstage Capital, Brian Brackeen of Lightship Capital, and others. Get your tickets here for $5.

Around TechCrunch

TC Sessions: Justice 2021 kicks off in two weeks

Announcing the TC Early Stage Pitch-Off

Across the week

Seen on TC

Bitcoin breaks the $50,000 barrier as Coinbase’s direct listing looms

Clubhouse has topped 8 million global downloads, per report

YC-backed Queenly launched a marketplace for formalwear

Uber extends work from home policy through mid-September

Why two startups are betting on debt instead of equity

Seen on EC

Pandemic-era growth and SPACS are helping edtech startups graduate early

Investors SPAC push could revapm the private market money game

Dear Sophie: Tips for filing for a green card for my soon-to-be spouse

Why do SaaS companies with usage-based pricing grow faster

Paying $115B for Stripe or $77B for Coinbase might be quite rational

And for dessert, read this piece on how 10 investors predict MaaS, on-demand delivery and EVs will dominate mobility’s post-pandemic future.

See y’all next week,

Natasha

 

News: Original Content podcast: Apple’s ‘Ted Lasso’ is all about relentless optimism

• February 20, 2021
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Your enjoyment of “Ted Lasso” — a sports comedy that debuted on Apple TV+ last year — will probably depend on how you respond to the titular football coach played by Jason Sudeikis. As we discuss on the latest episode of the Original Content podcast, the show’s setup is deliberately over-the-top and ridiculous with Rebecca

Your enjoyment of “Ted Lasso” — a sports comedy that debuted on Apple TV+ last year — will probably depend on how you respond to the titular football coach played by Jason Sudeikis.

As we discuss on the latest episode of the Original Content podcast, the show’s setup is deliberately over-the-top and ridiculous with Rebecca Walton (Hannah Waddingham) taking ownership of the AFC Richmond football (a.k.a. soccer) team after an acrimonious divorce, then recruiting American football coach Ted Lasso as its new manager, despite his complete ignorance of the game.

Anthony and Jordan found Ted to be charming, and they enjoyed the show’s fish-out-water comedy. Anthony also appreciated some of the more emotional moments later in the season — he’s an easy crier, and “Ted Lasso” definitely made him a little teary-eyed.

Darrell, however, had considerably less patience for the character’s blithe naiveté, comparing it to the similar cluelessness of Netflix’s “Emily in Paris,” and he gave up on the show quickly.

In addition to reviewing the series, we discuss Martin Scorsese’s feelings about the word “content,” and we have some exciting news about the podcast: This will be our last episode on TechCrunch, as Original Content goes independent! So consider subscribing on your favorite podcast app if you’d like to continue listening. (If you’ve already subscribed, there’s no need to do anything.)

You can listen to our review in the player below, subscribe using Apple Podcasts, Spotify, Google Podcasts or your favorite podcast app. If you like the show, please let us know by leaving a review on Apple. You can also follow us on Twitter.

If you’d like to skip ahead, here’s how the episode breaks down:
0:00 Intro
0:26 Podcast news
5:12 “Content” and Martin Scorsese discussion
20:43 “Ted Lasso” review
47:40 “Ted Lasso” spoiler discussion

News: This Week in Apps: Sneak peek at TikTok shopping, new iOS and Android betas, kids’ app Prodigy hit with FTC complaint

• February 20, 2021
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Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy. The app industry is as hot as ever, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.

The app industry is as hot as ever, with a record 218 billion downloads and $143 billion in global consumer spend in 2020.

Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.

Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.

This week, we’ve got a first look at one of TikTok’s early e-commerce tests, which involves a program for sellers involving product anchors on videos and the option for affiliate sales. We’re also digging into the new iOS and Android betas, the FTC complaint against math app Prodigy and more.

Top Stories

TikTok tests a new e-commerce experience in Indonesia

The Financial Times recently reported TikTok was preparing to launch a range of new e-commerce experiences in 2021, including the ability for creators to share links to products, support for affiliate sales, and even livestreamed shopping. Now, we’ve got a first look at some of the live tests around e-commerce that TikTok has in progress.

The company recently launched a “Seller University” website aimed at its Indonesian audience, where it details how brands can advertise their products on video. Here, TikTok explains brands have two ways to advertise, either by making their own videos or by working with affiliates.

“If you choose to sell through your personal page, you can then display products via livestreaming or short videos, with product anchors embedded in your content. When customers view your content, they can be redirected to the corresponding product detail page by clicking on the product anchor,” the site explains.

The Seller University also details other information, like how to sign up to be a TikTok seller and what sort of products are prohibited, along with other rules and guidelines.

TikTok Sellers have to provide their contact information, including location, phone, email, shop and warehouse location, and other required documentation to be approved. They can then set up a Seller profile, where they can manage other users associated with their account. Once live as a Seller on the app, they’ll have a “TikTok Shop” on the second tab on their profile, which users can view when they visit the page.

When their videos showing their products are viewed, there are “product anchors” embedded in the content. Clicking on these anchors will redirect the viewer to the product detail page where they can transact. In addition, brands can collaborate with TikTok influencers to promote their products through a new “TikTok Affiliate” program.

TikTok told TechCrunch the program is a test of its e-commerce solutions in Indonesia, and one of several product tests in the area of e-commerce.

Consumer advocacy groups file FTC complaint against edtech app Prodigy

A coalition of 20 consumer advocacy groups, led by the Campaign for a Commercial-Free Childhood, have filed an FTC complaint against the popular edtech app Prodigy, which offers a math learning app for web and mobile. The app is designed much like modern-day freemium games, with math “battles” designed to improve math skills, grades and test scores.

The complaint alleges a variety of abuses, including how it aggressively pushes kids using the free version provided to schools to nag parents for the paid $59 annual subscription, which includes a richer gaming experience.

The groups also take issue with the app’s in-app rewards and badges — some of which are only available to paid users, including fancier loot boxes — saying these features cause division between those who pay and those who can’t. And it alleges that Prodigy’s claims about educational improvements don’t hold merit.

In response, Prodigy says it takes the concerns seriously, but over 95% of users play the game for free and the business model involving the paid membership is how free access is provided.

“Without this model, we would be required to put all of our educational content behind a paywall, which contradicts our mission of providing full access to fun and engaging math learning,” a company spokesperson said. “The alternative would be to generate revenue via advertising, which is not a model we believe best benefits or protects our users. We never show third-party ads on our platform, nor do we sell or lease any other user information to third parties,” they noted.

The FTC has stepped up its enforcement over how apps targeting children can behave, with a focus on data collection practices and COPPA violations, which has resulted in fines for apps like TikTok and YouTube. This complaint, however, is not about children’s privacy, but rather how they’re being marketed to via edtech.

Weekly News

Platforms: Apple

Apple rolls out iOS 14.5, beta 2. The update includes a new Apple Music interface with the ability to share lyrics on social and use new swipe gestures; new Shortcuts actions for taking screenshots, setting screen orientation switching between cellular data modes, and more; expanded support for iPad privacy features (in relation to shutting off the microphone); and more than 200 new emoji.

The most notable new emoji include the heart on fire, exhaling face, face in clouds, gender options for people with beards and an updated syringe that removes the blood, making it more useful for conversations about the COVID vaccine.

Apple welcomed the teams from 13 app companies in its inaugural cohort for Apple’s Entrepreneur Camp for Black Founders and Developers. The program focuses on building technical skills and designing a great user experience through sessions, hands-on labs, one-on-ones with Apple experts and engineers, and more. VC firm Harlem Capital will also offer mentorship.

Participants include fitness app B3am, news app Black, music app Bar Exam, 3D photos app Film3D, MIDI Controller app FormKey, healthcare app Health Auto Export, gardening app Hologarden, remote learning solution Hubli (beta testing), game Justice Royale, sneaker enthusiast app Kickstroid, nail art app Nailstry, social app Peek: Movies & TV Shows and music app TuneBend.

Platforms: Google

Google launches the first developer preview of Android 12. The update includes new privacy controls; pre-set password complexity levels of high, medium and low; other improved user experience tools and app compatibility improvements; the ability to transcode media into higher-quality formats like the AV1 image format; transitions and animations for notifications, plus the ability to decorate notifications with custom content; enrollment-specific IDs for employee-owned devices; streamlined credential management for unmanaged devices; an improved screenshot editor; better support for multi-channel audio; Project Mainline improvements; and more.

Google’s Play Store adds support for Nearby Sharing. The feature allows users to share apps and updates with nearby Android devices.

Google suspended the Trump 2020 app from the Play Store for non-functionality. The app would either hang upon first launch or immediately reported a server error. Google says the app was in violation of its policies around non-functional apps, but the app can return if it’s fixed.

E-commerce

YouTube says it’s now beta testing a new e-commerce shopping experience in the app that allows creators to market products to fans, who can then buy directly on YouTube. The feature, which aims to compete with TikTok’s growing shopping ambitions, will expand later in 2021 beyond the initial group of creators.

Fintech

Robinhood’s CEO Vlad Tenev testified before Congress this week over the GameStop frenzy. Tenev denied helping hedge funds and asked for the SEC to modify trading rules. AOC pointed out that Robinhood isn’t truly free, it’s just hiding the cost from retail investors by subsidizing free trades with payment for order flow. (A percentage of its revenue Tenev ridiculously claimed he couldn’t recall, saying only “it’s over 50%.”)

Social

TikTok parent ByteDance is exploring a sale of its TikTok operations in India to Bangalore-headquartered Glance, a mobile content platform founded by InMobi founder Naveen Tewari. Glance operates a TikTok rival Roposo, which has seen massive growth since TikTok was banned in India over national security concerns. The two companies — ByteDance and Glance parent InMobi Pte — share an investor with SoftBank, which initiated the talks, per a Bloomberg report.

Instagram is fixing the iMessage bug. Some suspected the issue was related to Apple and Facebook’s ongoing public battles, but Instagram said the problem where Instagram links in iMessage wouldn’t show a preview was just a bug. The company noted a fix will arrive soon.

TikTok inks a multi-year deal with UFC which includes livestreams of pre- and post-fight content, and other behind-the-scenes footage. The content will stream on UFC TikTok accounts including @UFC, @UFCRussia, @UFCBrasil and @UFCEurope.

Douyin, the Chinese version of TikTok, now has 550 million users for its in-app Search feature alone. The app last reported in September it had 600 million daily users, indicating an even larger base of MAUs.

Right-wing social network Parler announced it’s back online for existing users and will re-open to new users next week. The company also has a new interim CEO, Mark Meckler, who previously co-founded the Tea Party Patriots.

Triller is mired in controversy over its MAUs. A Billboard report says the company misrepresented the number of monthly active users it had — 25 million instead of the 50 million it claimed. Triller CEO Mike Lu had said the discrepancies didn’t matter because there’s “no legal definition” for an MAU. After the report came out, Lu denied the company was inflating its numbers. We happen to recall that Triller immediately threatened to sue over a report that it had inflated its downloads last year.

Photos

YouTube star David Dobrik’s photo-sharing app Dispo, backed by a $4 million seed, launched into private beta to a ton of buzz. The app quickly maxed out TestFlight’s 10,000-person limit, instead of being the low-key beta debut the team had expected. Dispo’s gimmick is that users have to wait 24 hours to see the photos they snap.

Messaging

 

WhatsApp will roll out an in-app banner in an attempt to better explain its new privacy policy. When clicked, users will be directed toward policy information they can review at their leisure ahead of the May 15 deadline to accept the changes.

Streaming & Entertainment

Clubhouse has topped 8 million global downloads, 2.6 million of which were in the U.S., according to a new report from App Annie. The report also highlighted the broader impact Clubhouse is having on social audio, as local audio apps are gaining new installs, too.

Global mobile users streamed 935 billion hours of video in 2020, up 40% YoY, says App Annie. The pandemic impacts were clear — users went from 146 billion hours in Q1 2019 to 240 billion in Q4 2020, a 65% rise in two years.

Cameo, the app that connects customers with celebs for paid personalized messages, is said to be raising $100 million, valuing its business at $1 billion, reports Bloomberg Quint. Not coincidentally, Facebook just began testing its Cameo clone, Super.

YouTube reveals its 2021 plans. In a blog post from Chief Product Officer Neal Mohan, YouTube gave a look at coming updates across its suite of apps:

• YouTube to redesign its YouTube VR app homepage to improve navigation, accessibility and search functionality.
• YouTube says it will expand its video chapters feature to add chapters automatically and update the watch experience to be more intuitive, including on the tablet.
• YouTube TV, now with 3 million-plus users, will introduce a paid add-on that will support 4K streaming, DVR for off-line playback and unlimited simultaneous in-home streams.
• YouTube Kids will add a feature that allows parents to specify the channels and videos their kids are allowed to watch.
• YouTube will expand its Applause tipping feature to more creators in 2021.
• YouTube Music will improve playlist creation and make those playlists more discoverable.
• And as noted above, YouTube is testing an e-commerce feature that lets users check out on the app.
• YouTube Shorts, an in-app TikTok rival of sorts, will come to the U.S. in March, following its tests in India.

Gaming

Microsoft xCloud, the game streaming service that lets users play Xbox games on Android tablets and phones, has begun testing a web version. In a review by The Verge, the experience is described as similar to the mobile version, with a simple launcher, recommendations, access to cloud games through Xbox Game Pass Ultimate and the ability to resume recently played games.

Apple demanded sensitive data from Valve to aid in its legal battle with Epic Games. The request included things like total yearly sales of apps and in-app products; annual ad revenues from Steam; annual revenues from Steam; annual earnings gross or net from Steam; and more. Apple also wanted the names of all Steam apps, price and IAP, and date range available. Valve, not surprisingly, did not agree to this. PCGamer has the full report.

Epic Games expands its legal fight with Apple to the EU. The Fortnite owner filed a formal antitrust complaint with the European Commission, alleging Apple’s anti-competitive restrictions that have “eliminated competition in app distribution and payments.” Epic Games is also fighting Apple in the U.S., U.K. and Australia.

Stadia layoffs shocked team. Google Stadia, the game streaming service available via Chromecast Ultra, the Chrome browser, ChromeOS tablets and the Stadia mobile app for Android, recently shut down its in-house game development studio, Stadia Games and Entertainment. A report from Kotaku this week indicates how much of a surprise this was to team, as just days before the mass layoffs, leadership was praising staff for their “great progress.”

Health & Fitness

Apple tells developers that only apps submitted by recognized public health authorities will be able to publish “health pass” apps to the App Store. These apps are designed to show someone’s COVID-19 testing and vaccination status. Apple says it will accept apps from government, medical and other credentialed institutions, healthcare providers, laboratories and test kit manufacturers.

Apple promotes iOS health apps to Apple Card holders. In honor of American Heart Month, Apple emailed Apple Card users savings on iOS health apps including Strava, Ten Percent Happier, Sleep Cycle and Lifesum.

U.S. health & fitness apps saw over 405 million installs in 2020, up 22% year-over-year, reports Sensor Tower. The apps, which benefited from gym closures amid COVID, saw $838 million in consumer spend, up 42% YoY. The average age of users also continued climb, demonstrating better retention with older users.

A second report from the firm indicated U.S. pharmacy app installs were up 47% as the COVID-19 vaccine began to roll out.

Productivity

Microsoft launched a unified app for iPad that combines Word, PowerPoint, Excel and OneNote into one single app. The app is a free download with in-app subscriptions, starting at $6.99/month. A $69.99/year subscription is also available. Microsoft previously launched unified apps for the iPhone and Android.

Government & Policy

TikTok faces a new series of regulatory complaints in Europe, including unfair terms over its virtual currency, whose exchange rate can be modified by TikTok; unfair terms in relation to copyright, related to TikTok’s ability to redistribute users’ videos without paying them (e.g. for ads); child safety concerns over suggestive content and “hidden marketing” of its branded Hashtag Challenges; and other accusations of misleading data processing and privacy practices.

North Dakota’s Senate votes down the App Store bill that would have forced Apple to allow users to sideload apps on their mobile devices. The bill was funded by the advocacy group Coalition for App Fairness, which includes Epic Games, Spotify, Match Group, Tile and others with a beef against Apple over its commission structure. Similar bills are under consideration in Arizona and Georgia.

Adtech

The Post-IDFA Alliance, which consists of Liftoff, Fyber, Chartboost, InMobi, Vungle and Singular, launched a new “No IDFA? No Problem” resource that aims to help publishers and advertisers navigate the iOS 14 transition.

Security

File sharing app SHAREit, one of the world’s most popular apps, is found to have several security flaws, researchers reported. The vulnerabilities could be abused to leak sensitive user data and “execute arbitrary code” with app permissions.

Funding and M&A

Robinhood rival Public.com raised $220 million just months after its $65 million Series C, as previously reported by TechCrunch. Prior investors returned, including Greycroft, Accel, Tiger Global, Inspired Capital, and others, valuing the business at $1.2 billion.

Robinhood rival Webull raised $150 million in a new round that values the business at over $1 billion. The brokerage was founded by Alibaba alum Wang Anquan and, like Public.com, has benefitted from the exodus of disgruntled Robinhood users, who left over the GameStop debacle.

Math learning app Photomath raised $23 million in Series B funding in a round led by Menlo Ventures. The app, now with 220 million downloads, lets you point your phone at a math problem and it explains the solution.

Live video shopping startup Talkshoplive raised $3 million from Spero Ventures for its live video shopping platform that lets users watch its videos on the web and mobile web — or anywhere else they’re embedded.

Event networking app Grip raised a $13 million Series A, despite the pandemic. The app pivoted last year to support virtual, hybrid and live events, instead of just in-person events.

Mobile gaming startup Artie raised $10 million for its gaming platform that lets users play mobile games without installing an app, from the browser or anywhere links can be shared online. Investors included Zynga founder Mark Pincus, Kevin Durant and Rich Kleiman’s Thirty Five Ventures, Scooter Braun’s Raised In Space, Shutterstock founder Jon Oringer, Tyler and Cameron Winklevoss, Googler Manuel Bronstein and YouTube co-founder Chad Hurley.

Low-code app development service OutSystems raised $150 million in a round led by Abdiel Capital and Tiger Global, valuing the business at $9.5 billion.

Cross-border neobanking app Zolve raised $15 million in a seed round led by Accel and Lightspeed. The app was founded by the Raghunandan G, the founder of ride-hailing firm TaxiForSure, which exited to Ola. It’s aimed at people moving from India to the U.S. or vice versa.

Dating app Jigsaw raised $3.7 million for its app that hides daters’ faces with puzzle pieces in an effort to push users to engage and get to know each other before the reveal. While “face reveals” are popular on social media, a dating app that does this lends itself to objectifying people by not showing the face, as users focus on the daters’ body instead.

Downloads

Outfit

TechCrunch this week covered DIY home renovation startup Outfit, which leverages consumers’ mobile devices to help them with their home projects. After submitting information, including dimensions and photos, Outfit’s app offers the customer a step-by-step guide for completing the project, including documenting their space, getting items and tools delivered, a custom to-do list and receiving support while the project is underway.

Hush

Hush, a recently launched Safari ad blocker for Mac, iPhone and iPad, does more than just block ads. The app also works to block other invasive trackers and those annoying cookie warnings that now pop up everywhere due to GDPR laws. (it actually doesn’t consent or deny the “accept cookies?” requests — it just blocks the scripts and elements on the website. It doesn’t interact with the site or click any buttons.

Unlike some blockers, Hush doesn’t collect your data. It doesn’t log your browser habits or passwords or even collect crash reports. It’s also free, but you can sponsor the developer on GitHub.

Zillow’s update

The updated version of Zillow’s 3D Home app introduced new technology that combines into one interface 3D Home tours, listing photos and AI-generated floor plans. To create the floor plans and home tour, the app uses computer vision and machine learning on panoramic photos the agent or photographer captured using the app and a 360-degree camera. The app also leverages AI to predict things like room dimensions and square footage. Both the home tour and floor plan can then be automatically uploaded to the lists and added to a website, MLS or shared on email/social media.

Due to the pandemic, Zillow 3D Home tours published on for-sale listings increased 255% during 2020 as customers used it as a safer way to tour properties, the company also noted.

News: As the SPAC frenzy continues, questions arise about how much the market can absorb

• February 20, 2021
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Another week and the biggest story in a sea of big stories continues to center on SPACs, these blank-check companies that raise capital through IPOs expressly to acquire a privately held company and take it public. But some industry watchers as starting to wonder: Is this party just getting started, with more early guests still

Another week and the biggest story in a sea of big stories continues to center on SPACs, these blank-check companies that raise capital through IPOs expressly to acquire a privately held company and take it public. But some industry watchers as starting to wonder: Is this party just getting started, with more early guests still trickling in? Have we reached the party’s peak, with the music still thumping? Or did someone just quietly barf in the corner, a sure indicator that it’s time to grab one’s coat?

It certainly feels like things are in full swing. Just today, B Capital, the venture firm cofounded by Facebook cofounder Eduardo Saverin, registered plans to raise a $300 million SPAC. Mike Cagney, the fintech entrepreneur who founded SoFI and more recently founded Figure, a fintech company in both the home equity and blockchain space, raised $250 million for his SPAC. Even Michael Dell has made the leap, with his family office registering plans this afternoon to raise a $500 million blank-check company.

Altogether, according to Renaissance Capital, 16 blank-check companies raised $3.4 billion this week, and new filers continue to flood into the IPO pipeline, with 45 SPACs submitting initial filings this week (compared with 10 traditional IPO filings). Perhaps it’s no wonder that we’re starting to see headlines like one in Yahoo News just yesterday titled, “Why some SPAC investors may get burned.”

Interestingly, such headlines could help puncture the SPAC bubble. So argues INSEAD professor Ivana Naumovska in a new Harvard Business Review piece that’s ominously titled, “The SPAC Bubble is About to Burst.”

Naumovska points to research showing that when more people adopt a practice, it will become increasingly widespread due to growing awareness and legitimacy. (See Clubhouse.) But when it comes to something that’s more controversial — which it could be argued that SPACs are — outsider concern and skepticism also grows as the practice becomes more widely used. Thus are born headlines like that one in Yahoo Finance.

Naumovska has studied this phenomenon before, focusing on earlier reverse mergers that, as she notes, “surged in the mid-2000s, outnumbering IPOs in some years, and peaked in 2010, before falling off a cliff in 2011.” She says she and fellow researchers collected a plethora of data on the use of reverse mergers and market responses to them, including how the media evaluated such vehicles. Of the 267 articles published between 2001 and 2012, she says, 6 were positive, 148 were neutral, 113 were negative.

Notably and unsurprisingly, the negative articles grew as the number of reverse merger transactions involving firms with relatively low reputations increased. Then again, the same thing happens whenever the “IPO window” is open. Great companies go public, then good companies, then half-baked companies that think they might just blend in with the others. Except that the media picks up on these companies, as do regulators, and with investors, regulators, and the media feeding off one another’s signals, the party typically comes to a screeching halt.

Anecdotally, much more of the coverage around SPACs right now remains positive to neutral. If business reporters are privately skeptical of SPACs, they are reserving judgment, possibly because save for some highly concerning cases —  like when the electric truck startup Nikola was accused of fraud — there isn’t much to criticize yet.

That’s partly because these things appeared so abruptly that public shareholders are still trying to understand them.

The argument that most investors have for creating a SPAC — which is that a lot of so-called unicorn companies are ready to be publicly traded — resonates, too, given how bloated the private market has become.

It’s also impossible to judge many of the SPACs raised over the last six months, as they have yet to announce their targets (they have two years from the time they raise funds from investors to zero in on a company or else have they have give back those IPO proceeds).

In the meantime, some of the merger deals that critics have long expected would begin to unravel have not, like Virgin Galactic, the space tourism company that kicked off SPAC mania when it went public in the fall of 2019.

Sir Richard Branson founded the company in 2004 in order to fly passengers on suborbital trips to space, but even after putting off plans yet again to attempt a rocket-powered flight to suborbital space last week, its shares — which have more than doubled since January– remain in the figurative stratosphere. (The company, which reported almost no revenue last year, is currently valued at $12 billion.)

Other offerings haven’t gone quite as smoothly. Clover Health, a health insurance company that, like Virgin Galactic, was taken public via a SPAC organized by famed investor Chamath Palihapitiya, is “facing a confluence of existential threats” to its business, as observed in a deep dive by Forbes.

Among others that are “digging into Clover’s business practices, including how the company incentivizes doctors and patients to buy its insurance and use its technology,” are the The Department of Justice, the Securities and Exchange Commission and influential short-sellers. (Clover has rebutted the allegations, but it is reportedly still facing at least three class-action lawsuits that have been filed over the company’s failure to disclose ahead of its IPO that the DOJ was investigating the company.)

“I don’t get it,” said skeptic Steve Jurvetson last month in conversation with this editor of the SPAC frenzy. The veteran venture capitalist, who sits on the board of SpaceX, said there are “some good companies [being taken public]. Don’t get me wrong; they aren’t all fraudulent.” But many are “early-stage venture companies,” he noted, “and they don’t need to meet the forecasting requirements that the SEC normally requires of an IPO, so [SPAC sponsors are] specifically looking for companies that don’t have any operating numbers to show [because they] can make any forecasts they want . . .That’s the whole racket.”

If others agree with Jurvetson, they hesitate to say so publicly. For one thing, plenty of VCs would be happy to see their portfolio companies taken public however possible; others who haven’t formed SPACs of their own are reserving the right to consider them down the road.

Ed Sim of Boldstart Ventures in New York is one of few VCs in recent months to say outright, when asked, that his firm isn’t considering raising a SPAC at any point. “I have zero interest in that honestly,” says Sim. “You can come back to me if you see my name or Boldstart [affiliated] with a SPAC two years from now,” he adds, laughing.

Many more investors stress that it’s all about who is sponsoring what. Among these is Kevin Mayer, the former Disney exec and, briefly, the CEO of the social network TikTok. In a call yesterday, he noted that there are “many fewer public companies now than there were 10 years ago, so there is a need for supplying another way to go public.”

Mayer has a vested interest in promoting the benefits of SPACs. Just yesterday, along with former Disney colleague Tom Staggs, he registered plans for a second a SPAC, after it was announced earlier this month that their first SPAC will be used to take public the digital fitness specialist Beachbody Company.

But Mayer also argues that not every SPAC should be judged by the same yardstick. “Do I think it’s overdone? Sure, everyone and their brother is now getting to a SPAC, so yeah, that does seem a bit ridiculous. But I think . . . the wheat will be separated from the chaff very, very soon.”

It had better if SPACs are to endure. Working against SPAC sponsors already are numbers that are starting to trickle in and that don’t look so great.

Late last week, Bloomberg Law reported that based on its analysis of the companies that went public as a result of a merger with a SPAC dating back to Jan. 1, 2019, and for which at least one month of post-merger performance data is available, 14 out of 24 (or 60%) reported a depreciation in value as of one month following the completion of the merger, and one-third of the companies reported a year-to-date depreciation in value.

The number of securities lawsuits filed by SPAC stockholders post-merger is also on the rise, noted the outlet.

Certainly, SPACs — more recently heralded as a lasting fix for a broken IPO market — could still prove durable.

But given the accelerating rate at which SPACs are being formed, as well as the some of the companies in their sights — some of them still in the prototype phase — the question of whether the phenomenon is sustainable is one that more are beginning to ask.

News: Daily Crunch: Uber loses UK legal challenge

• February 19, 2021
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Uber loses a legal battle over driver classification, we survey mobility investors and new data suggests a COVID-19 vaccine should be easier to transport. This is your Daily Crunch for February 19, 2021. The big story: Uber loses UK legal challenge The United Kingdom’s Supreme Court has reaffirmed earlier rulings that the Uber drivers who

Uber loses a legal battle over driver classification, we survey mobility investors and new data suggests a COVID-19 vaccine should be easier to transport. This is your Daily Crunch for February 19, 2021.

The big story: Uber loses UK legal challenge

The United Kingdom’s Supreme Court has reaffirmed earlier rulings that the Uber drivers who brought the case — which dates back to 2016 — are workers, not independent contractors.

“Drivers are in a position of subordination and dependency in relation to Uber such that they have little or no ability to improve their economic position through professional or entrepreneurial skill,” the court said in a statement. “In practice the only way in which they can increase their earnings is by working longer hours while constantly meeting Uber’s measures of performance.”

Uber, while acknowledging the decision, emphasized that it applies to the specific group of drivers who brought the case, many of whom are no longer driving through the app.

Startups, funding and venture capital

Ex-General Catalyst and General Atlantic VC announces $68M debut fund — New York-based Avid Ventures is launching its $68 million debut venture capital fund.

With $20M A round, Promise brings financial flexibility to outdated government and utility payment systems — Promise integrates with official payment systems to offer more forgiving terms for fees and debts that people can’t handle all at once.

Acast acquires podcasting startup RadioPublic — RadioPublic spun out of public radio marketplace PRX in 2016.

Advice and analysis from Extra Crunch

Ten investors predict MaaS, on-demand delivery and EVs will dominate mobility’s post-pandemic future — The COVID-19 pandemic didn’t just upend the transportation industry, it laid bare its weaknesses and uncovered potential opportunities.

A fraction of Robinhood’s users are driving its runaway growth — A closer look at payment for order flow, a controversial practice in which Robinhood is paid by market makers for executing customer trades.

Three strategies for elevating brand authority in 2021 — Advice from Fractl marketing director Amanda Milligan.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Everything else

Pfizer-BioNTech’s COVID-19 vaccine just got a lot easier to transport and distribute — There’s new stability data collected by Pfizer and BioNTech, which has been submitted to the U.S. Food and Drug Administration.

Dizzying view of Perseverance mid-descent makes its ‘seven minutes of terror’ feel very real — NASA has just shared a hair-raising image of the rover as it dangled from its jetpack above the Martian landscape.

Will the Texas winter disaster deter further tech migration? — It’s too early to tell the exact toll the storm has taken in loss of life, property damage and economic activity.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

News: Google fires top AI ethics researcher Margaret Mitchell

• February 19, 2021
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Google has fired Margaret Mitchell, the founder and former co-lead of the company’s ethical AI team. Mitchell announced the news via a tweet. Google confirmed Mitchell’s firing in a statement to TechCrunch, Google said: After conducting a review of this manager’s conduct, we confirmed that there were multiple violations of our code of conduct, as

Google has fired Margaret Mitchell, the founder and former co-lead of the company’s ethical AI team. Mitchell announced the news via a tweet.

Google confirmed Mitchell’s firing in a statement to TechCrunch, Google said:

After conducting a review of this manager’s conduct, we confirmed that there were multiple violations of our code of conduct, as well as of our security policies, which included the exfiltration of confidential business-sensitive documents and private data of other employees.

In January, Google revoked corporate access from AI ethicist Margaret Mitchell for reportedly using automated scripts to find examples of mistreatment of Dr. Timnit Gebru, according to Axios. Gebru says she was fired from Google while Google has maintained that she resigned.

Earlier this month, Mitchell published the email she said she sent to Google’s press team the day her corporate email access was cut off. The email spoke about Gebru’s firing and how it appeared to be “fueled by the same underpinnings of racism and sexism that our AI systems, when in the wrong hands, tend to soak up.”

Mitchell’s letter, which you can read in full here, details the different ideas and structures at play that led to Dr. Gebru’s departure from Google. Mitchell argues what happened to Gebru “appears to stem from the same lack of foresight that is at the core of modern technology, and so itself serves as an example of the problem.”

Mitchell adds:

The firing seems to have been fueled by the same underpinnings of racism and sexism that our AI systems, when in the wrong hands, tend to soak up.  How Dr. Gebru was fired is not okay, what was said about it is not okay, and the environment leading up to it was — and is — not okay.  Every moment where Jeff Dean and Megan Kacholia do not take responsibility for their actions is another moment where the company as a whole stands by silently as if to intentionally send the horrifying message that Dr. Gebru deserves to be treated this way.  Treated as if she were inferior to her peers.  Caricatured as irrational (and worse).  Her research writing publicly defined as below the bar.  Her scholarship publicly declared to be insufficient.  For the record: Dr. Gebru has been treated completely inappropriately, with intense disrespect, and she deserves an apology. 

The letter went on to discuss the ethical artificial intelligence approach to developing technology, how Mitchell came to lead and then co-lead the ethical AI team with Gebru and what ultimately happened. Within the next year, Mitchell said she wanted “those of us in positions of privilege and power” to come to terms with “the discomfort of being part of an unjust system that devalued one of the world’s leading scientists, and keep something like this from ever happening again.”

Mitchell’s firing comes shortly after Google announced the appointment of Dr. Marian Croak to lead its responsible artificial intelligence division. When we reached out to Google yesterday the company did not have a comment on Mitchell’s fate.

Earlier today, Google internally announced the results of its investigation of Gebru’s exit, according to Axios. The company did not reveal what it found, but said it would implement some new policies to enhance diversity and inclusion at Google.

News: Extra Crunch roundup: Optimized SaaS pricing, recruiting growth experts, VC surveys, more

• February 19, 2021
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Thanks very much for reading Extra Crunch this week!

Since the pandemic began, have you been walking more, or do you know someone who bought a new car? Perhaps you ran your first errand on a rented e-bike or scooter?

Over the last year, I’ve experimented with different mobility options to see which ones best suit my needs, as have most people I know. It can be challenging to maintain a recommended physical distance on a bus or subway. (After a decade-plus hiatus, I even briefly considered rejoining the ranks of automobile owners!)

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It took some getting used to, but I now enjoy traveling around San Francisco on a scooter or e-bike. Pre-pandemic, I was leery of riding two-wheeled vehicles in a city with a high rate of injury collisions, but there are fewer cars on the road than there used to be.

COVID-19 has spotlighted many of the weakest points in our transportation system, but some of the rapid shifts in consumer behavior are creating opportunities for tech once considered fanciful, like sidewalk delivery robots and eVTOLs (electric vertical and takeoff vehicles).

Transportation editor Kirsten Korosec reached out to 10 investors to learn more “about the state of mobility, which trends they’re most excited about and what they’re looking for in their next investments.”

Here’s who she interviewed:

• Clara Brenner, co-founder and managing partner, Urban Innovation Fund
• Shawn Carolan, partner, Menlo Ventures
• Dave Clark, partner, Expa
• Abhijit Ganguly, senior manager, Goodyear Ventures
• Rachel Holt, co-founder and general partner, Construct Capital
• David Lawee, founder and general partner, CapitalG
• Sasha Ostojic, operating partner, Playground Global
• Sebastian Peck, managing director, InMotion Ventures
• Natalia Quintero and Rachel Haot, Transit Innovation Partnership/Transit Tech Lab

Thanks very much for reading Extra Crunch this week!

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

A fraction of Robinhood’s users are driving its runaway growth

Yesterday’s House Financial Services Committee hearing on the GameStop short squeeze saga was fairly typical: Most lawmakers used their time to grandstand and little new information was revealed.

But Alex Wilhelm found one tidbit: Much of Robinhood’s revenue is generated from payment for order flow (PFOF). Under the practice, market makers pay the trading platform for executing trades.

To get a sense of how much Robinhood’s high rollers contribute to the company’s general health, he calculated its PFOF revenues for the last three months of 2020.

“Borrowing a term from the casino trade, these whales generate the bulk of the company’s revenue stream.”

Why do SaaS companies with usage-based pricing grow faster?

HubStop introduced usage-based pricing in 2011 to boost its retention rate, then near 70%.

When it went public three years later, its net revenue retention rate was edging close to 100%, “all without hurting the company’s ability to acquire new customers.”

Offering new users frictionless onboarding, customer support and free credits is a proven method for making them more active — and loyal.

So, why do public SaaS firms with usage-based pricing see faster growth?

“Because they’re better at landing new customers, growing with them and keeping them as customers,” says Kyle Powar, VP of growth at OpenView.

Paying $115B for Stripe or $77B for Coinbase might be quite rational

In October 2018, private-market money valued Coinbase at around $8 billion. As of this week, it’s valued at $77 billion.

Similarly, Stripe is valued at $115 billion on secondary markets. In the middle of last year, that figure was closer to $36 billion.

“Would I line up to pay $77 billion for Coinbase?” asked Alex. “Probably not, but that doesn’t mean that the public markets won’t.”

Pandemic-era growth and SPACs are helping edtech startups graduate early

Natasha Mascarenhas reports that some edtech startups are hitching rides with special purpose acquisition vehicles so they can speed up their journey to the public markets.

To learn more, she interviewed Susan Wolford, chairperson of $200 million SPAC Edify Acquisition, and Nerdy CEO Chuck Cohn. Nerdy, parent company of Varsity Tutors, is going through a reverse merger with TPG Pace Tech Opportunities.

“It’s less about going into the public markets and more about that this transaction allows us to take an offensive position and lean into the big opportunities,” Cohn said.

Dear Sophie: Tips for filing for a green card for my soon-to-be spouse

Dear Sophie:

My fiancé is in the U.S. on an H-1B visa, which is set to expire in about a year and a half.

We were originally planning to marry last year, but both he and I want to have a ceremony and party with our families and friends, so we decided to hold off until the pandemic ends. I’m a U.S. citizen and plan to sponsor my fiancé for a green card.

How long does it typically take to get a green card for a spouse? Any tips you can share?

— Sweetheart in San Francisco

Inside Rover and MoneyLion’s SPAC-led public debuts

When I saw that Alex Wilhelm wrote on Tuesday about two more startups that were taking the SPAC route to public markets, I briefly wondered if we’ve been covering special purpose acquisition companies too frequently.

After I read his first sentence, I realized Alex made exactly the right call because the trend that emerged in 2020 may be turning into a actual wave: This week, pet e-commerce company Rover and fintech startup MoneyLion both announced that they’re planning SPAC-led debuts.

On Monday, Alex covered the news that Lerer Hippeau Acquisition Corp. and Khosla Ventures Acquisition Co. I, II and III. filed S-1 filings last week.

“You have to wonder if every VC worth a damn in the future will have their own raft of SPAC offerings,” says Alex.

Wrote Lerer Hippeau Acquisition Corp.:

With our portfolio now maturing to the stage at which many are considering the public markets, we view SPACs as a natural next step in the evolution of our platform.

“If we are not careful, every entry of this column could consist of SPAC news,” writes Alex.

From dorm rooms to board rooms: How universities are promoting entrepreneurship

Fifteen U.S.-based institutions of higher learning have joined forces to create the University Technology Licensing Program LLC (UTLP).

The program makes it easier for entrepreneurs and investors to find IP that can drive their companies forward, but it’s also an attempt to repair what one participant calls “the somewhat broken interface between universities and very large companies in the tech space.”

4 strategies for deep tech companies recruiting top growth marketers

Here’s some real talk for technical founders: if you find it frustrating to work with growth experts and marketing professionals, the feeling’s probably mutual.

“Incredible growth people are independent and creative and are drawn to environments that explicitly value these traits,” says Jessica Li, a content/growth professional who was previously a VC.

To land top talent, “demonstrate that you have a team structure in place where a growth marketer could fit in and thrive.”

9 investors discuss hurdles, opportunities and the impact of cloud vendors in enterprise data lakes

Before my first cup of coffee this morning, I’d already interacted with four different devices that transmitted details about my behavior to a data lake.

Hopefully, the response I sent to an automated text while waiting for the kettle to boil will generate a discount offer in my inbox later today. (And hopefully, the raw data I’m transmitting has been properly secured and cataloged.)

Enterprise reporter Ron Miller interviewed nine investors to learn more about their approach to the lucrative data lake market:

• Caryn Marooney, general partner, Coatue Management
• Dharmesh Thakker, general partner, Battery Ventures
• Casey Aylward, principal, Costanoa Ventures
• Derek Zanutto, general partner, CapitalG
• Navin Chaddha, managing director, Mayfield
• Jon Lehr, co-founder and general partner, Work-Bench
• Peter Wagner, founding partner, Wing Ventures
• Nicole Priel, managing director, Ibex Ventures
• Ilya Sukah, partner, Matrix Partners

Felicis’ Aydin Senkut and Guideline’s Kevin Busque on the value of simple pitch decks

When it comes to building a durable relationship between a founder and an investor, “the trust starts in the pitch deck,” says Guideline CEO Kevin Busque.

Busque joined Extra Crunch Live last week with Felicis Ventures’ Aydin Senku to discuss the seed round Senku declined to join — and the Series B he led a short while later.

In keeping with our new format, the pair also offered feedback on pitch decks submitted by members of the audience. Read highlights, or watch a video with the full conversation.

News: WhatsApp details what will happen to users who don’t agree to privacy changes

• February 19, 2021
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WhatsApp said earlier this week that it will allow users to review its planned privacy update at “their own pace” and will display a banner to better explain them the changes in its terms. But what happens to its users who do not accept the terms by the May 15 deadline? In an email to

WhatsApp said earlier this week that it will allow users to review its planned privacy update at “their own pace” and will display a banner to better explain them the changes in its terms. But what happens to its users who do not accept the terms by the May 15 deadline?

In an email to one of its merchant partners, reviewed by TechCrunch, Facebook-owned WhatsApp said it will “slowly ask” such users to comply with the new terms “in order to have full functionality of WhatsApp” starting May 15.

If they still don’t accept the terms, “for a short time, these users will be able to receive calls and notifications, but will not be able to read or send messages from the app,” the company added in the note. The company confirmed to TechCrunch that the note accurately characterizes its plan.

WhatsApp did not define the duration of this “short time” in the note, but linked to a newly created FAQ page that says its policy related to inactive users will apply to such users after May 15 deadline.

WhatsApp’s policy for inactive users states that accounts are “generally deleted after 120 days of inactivity.”

The instant messaging service received backlash from some of its users — including those in India, its biggest market — last month after an in-app alert said they had until February 8 to agree to the planned privacy terms, which are being made to reflect its recent push into e-commerce, if they wished to continue using the service.

Following backlash, WhatsApp said its planned privacy update had created confusion among some of its users. “We’ve heard from so many people how much confusion there is around our recent update. There’s been a lot of misinformation causing concern and we want to help everyone understand our principles and the facts,” it wrote in a blog post last month.

Since 2016, WhatsApp’s privacy policies have granted the service permission to share certain metadata such as user phone numbers and device information with Facebook. The new terms will allow Facebook and WhatsApp to share payments and transactions data in order to help them better target ads as the social juggernaut broadens its e-commerce offerings and looks to merge its messaging platforms.

WhatsApp, used by over 2 billion users, last month delayed enforcing the new policy by three months and has been explaining its terms to users ever since — though its explanations hadn’t explicitly addressed what it planned to do with users who didn’t accept the terms.