Monthly Archives: May 2021

News: For companies that use ML, labeled data is the key differentiator

When a company chooses to go with supervised learning, it needs to have a strategy that allows them to label data as fast as it acquires it.

Sylvain Kalache
Contributor

Sylvain Kalache is the co-founder of Holberton, an edtech company training digital talent in more than 10 countries. An entrepreneur and software engineer, he has worked in the tech industry for more than a decade. Part of the team that led SlideShare to be acquired by LinkedIn, he has written for CIO and VentureBeat.

AI is driving the paradigm shift that is the software industry’s transition to data-centric programming from writing logical statements. Data is now oxygen. The more training data a company gathers, the brighter will its AI-powered products burn.

Why is Tesla so far ahead with advanced driver assistance systems (ADAS)? Because no one else has collected as much information — it has data on more than ten billion driven miles, helping it pull ahead of competition like Waymo, which has only about 20 million miles. But any company that is considering using machine learning (ML) cannot overlook one technical choice: supervised or unsupervised learning.

There is a fundamental difference between the two. For unsupervised learning, the process is fairly straightforward: The acquired data is directly fed to the models, and if all goes well, it will identify patterns.

Elon Musk compares unsupervised learning to the human brain, which gets raw data from the six senses and makes sense of it. He recently shared that making unsupervised learning work for ADAS is a major challenge that hasn’t been solved yet.

A major part of real-world AI has to be solved to make unsupervised, generalized full self-driving work, as the entire road system is designed for biological neural nets with optical imagers

— Elon Musk (@elonmusk) April 29, 2021

Supervised learning is currently the most practical approach for most ML challenges. O’Reilly’s 2021 report on AI Adoption in the Enterprise found that 82% of surveyed companies use supervised learning, while only 58% use unsupervised learning. Gartner predicts that through 2022, supervised learning will remain favored by enterprises, arguing that “most of the current economic value gained from ML is based on supervised learning use cases”.

News: Fintech startup Vise raises $65 million in Series C led by Ribbit Capital

Vise today announced a $65 million Series C financing round led by Ribbit Capital, with participation from existing investors including Sequoia. The startup launched on the Disrupt Startup Battlefield stage in 2019 and has since raised upwards of $125 million. Vise uses an AI-powered platform to give independent financial advisors the same level of data as

Vise today announced a $65 million Series C financing round led by Ribbit Capital, with participation from existing investors including Sequoia.

The startup launched on the Disrupt Startup Battlefield stage in 2019 and has since raised upwards of $125 million.

Vise uses an AI-powered platform to give independent financial advisors the same level of data as advisories with their own analyst departments.

The goal, cofounder and CEO Samir Vasavada has told me in the past, is to give indie financial advisors the time and energy to cultivate their client relationships, rather than doing the hard math of building out portfolios. Vise does a lot of heavy lifting where the latter is concerned, freeing up advisors to focus on the former.

The premise behind Vise is to use tech to empower humans, ‘as opposed to replacing them’ by automating an industry that’s very old. The end goal is to ‘enable financial freedom for everyone.’

“We have to build a platform that will service hundreds of millions, billions, of dollars in assets in an automated way,” said Vasavada. “There is a lot of technical infrastructure that can be built, and systems around trading and around go-to-market so we can attack this industry.”

Since raising the company’s Series B, assets under management have ballooned 4x to $250 million and client accounts have more than doubled, says Vise.

Vise has been scaling its tech, team and the clientele for the past couple years, but that hit a new gear upon the appointment of Andrew Fong as CTO. Fong hails from Dropbox, where he served as VP of Infrastructure Engineering. He actually started out as a site reliability engineer at Dropbox back in 2012, climbing the ranks to engineering director, and then senior director of engineering with a focus on infrastructure before becoming a vice president.

Fong’s main goal is scaling up the engineering department, something that continues to be a focus for the company. Vasavada explained that expanding a product and a company is all about the foundation.

The company’s round fits inside the generally bullish market for fintech investments that TechCrunch has observed globally.

Of note: Vise’s Vasavada and Sequoia’s Shaun Maguire will join us tomorrow afternoon on Extra Crunch Live, where we’ll discuss how they came together for the financing, what made Vise stand out to Sequoia, and how they’re finding success in the world of fintech. Maguire and Vasavada will also hear live pitches from startups in the audience and give their feedback.

You can hang out with us tomorrow on Extra Crunch Live at 3pm ET/noon PT by registering here.

News: Extend raises $260M on a $1.6B valuation to expand its warranty and protection plan services

A company that has built a new approach to the business of extended warranties — providing a cost-effective and efficient way for retailers or brands to offer them; and an easy way for consumers to buy and file claims against them — is today announcing a huge round of funding as it looks to take

A company that has built a new approach to the business of extended warranties — providing a cost-effective and efficient way for retailers or brands to offer them; and an easy way for consumers to buy and file claims against them — is today announcing a huge round of funding as it looks to take its business to the next level.

Extend — which aims, in the words of co-founder and CEO Woody Levin, to become the “Apple Care” for everything that’s not an actual Apple product — has raised $260 million, a Series C that values the company at over $1.6 billion.

It plans to use the funding to continue expanding its business. That will include a gradual move into covering more than just extended warranties that kick in after manufacturer or retailer warranties run out; much wider geographical expansion; and more activity to prove out its place at the e-commerce table (if the leap to a $1.6 billion valuation in 27 months of operation isn’t testament enough…).

“Same day delivery, buy-now-pay-later, and other tools: we are now all part of that core e-commerce toolset,” Levin said in an interview. “We have been selling since 2019 but the market is just waking up to this. We’re focused on being transparent and fair with warranties. It’s something they haven’t seen before.”

The company says that in 2020, its first full year of business, it sold 300,000 protection plans, but it is now on track to sell more than 3 million protection plans this year. Customers include Peloton, iRobot, Harman/JBL, Backcountry, Balsam Hill, BlendJet, RealTruck, Traeger Grills and “hundreds” of others, along with a growing number of retailers, too. (Peloton likely makes for some interesting stories…)

The funding, a Series C, is coming from an interesting mix of financial and very strategic investors. It is being led by SoftBank, in the latest investment out of its Vision Fund 2. (Levin said he was pitched directly by Mashayoshi Son: “He immediately understood what we were doing.”)

Existing backers Meritech Capital Partners, PayPal Ventures and GreatPoint Ventures, and new investors insurance giant Nationwide, Tomales Bay Capital, Launchpad Capital, 10X Capital and 40North, also participated.

PayPal is a notable name here: warranties are often sold at the point of sale, and so it makes sense that a payment giant is interested in bringing more tools and conversion levers into the mix. (And given the connection between warranties and insurance, it’s also interesting to remember that Stripe, one of PayPal’s big competitors, in March received a huge funding round with insurance giants participating.)

Meanwhile, recall that SoftBank also is a part-owner of T-Mobile (which sells a lot of gadgets) and an investor in, well, a lot. This gives Extend a possible door into a huge range of places where it might integrate and offer extended warranties and other kinds of protection plans.

The round was oversubscribed and comes just eight months after Extend announced a Series B of $40 million. You could say that Extend very much extended its own conversations with VCs with this latest round.

Extended warranties and protection plans have long been a point of contention for consumers: they sound like peace of mind in theory, but they often feel like frustrating upsell, with the tacit message being that somehow the company accepts that its products won’t last. At the same time, they can be time-consuming, if not downright disappointing, to actually claim against.

Extend is all too aware of the pitfalls of the legacy model and has set out to combat it with more flexible offerings (providing tiers of warranty time with prices attached), clear policies that can be managed in one place for all of your Extend-provided coverage, and quick interactions — by way of a digital assistant called Kaley — to get claims against your policies if the need arises. In the background, it also leverages machine learning and risk analysis to make sure it’s not betting the house on its plans.

This has all played in its favor for now. Retailers are getting less interested in handling warranties in-house, and are turning to outside providers to do the work. Extend saw revenues rise 40x in its first full year of business (2020) — a time when many have been spending more hours at home and possibly more willing to follow through on customer support interactions when they do have problems. The startup says it expects revenues to go up by 400% this year.

Its customers continue to be primarily those who sell directly to consumers, although a few new deals with retailers speaks to some opportunities for a much wider opportunity for those who are looking for more services to offer shoppers around the basic proposition of buying goods, to better compete against the wider range of services that a marketplace like Amazon might offer for those who want them.

“As more consumers shop online, merchants are keen to provide customers with a greater peace of mind when making purchases. We believe Extend is reinventing the extended warranty industry through its leading platform, API solutions, and consumer-first approach,” said Nagraj Kashyap, managing partner at SoftBank Investment Advisers. “We are pleased to work with Woody and the Extend team to support their ambition of providing a better way for consumers to protect the products they love.”

News: Explorium scores $75M Series C just 10 months after B round

Without good data, it’s impossible to build an accurate predictive machine learning model. Explorium, a company that has been building a solution over the last several years to help data pros find the best data for a given model, announced a $75 million Series C today — just 10 months after announcing a $31 million

Without good data, it’s impossible to build an accurate predictive machine learning model. Explorium, a company that has been building a solution over the last several years to help data pros find the best data for a given model, announced a $75 million Series C today — just 10 months after announcing a $31 million Series B.

Insight Partners led today’s investment with participation from existing investors Zeev Ventures, Emerge, F2 Capital Ventures, 01 Advisors and Dynamic Loop Capital. The company reports it has now raised a total of $127 million. George Mathew, managing partner at Insight, and former president and COO at Alteryx, will be joining the board, giving the company someone with solid operator experience to help guide them into the next phase.

Company co-founder and CEO Maor Shlomo, says that in spite of how horrible COVID has been from a human perspective, it has been a business accelerator for his company and he saw revenue quadruple last year (although he didn’t share specific numbers beyond that). “It’s related to the nature of our business. We’re helping enterprises and data practitioners find new data sources that can help them solve business challenges,” Sholmo explained.

He says that during the pandemic, a lot of companies had to find new data sources because the old data wasn’t especially helpful for predictive models. That meant that customers required new sources to give them visibility into the shifts and movements in the market to help them adjust and make decisions during pandemic. “And given that’s basically what our platform does in its essence, we’ve seen a lot of growth [over the past year],” he says.

With the revenue growth the company has been experiencing, it has been adding employees at rapid clip. When we spoke to Explorium last July, the company had 87 people. Today that number has grown to 130 with plans to get to 200 perhaps by the end of 2021 or early 2022, depending on how the business continues to grow.

The company has offices in Tel Aviv and San Mateo, California with plans to open a new office in New York City whenever it’s possible to do so. While Shlomo wants a flexible workplace, he’s not going fully remote with plans to allow people to work two days from home and three in the office as local rules allow.

News: Klaviyo’s next-gen email marketing platform engorges on $320M at a $9.5B valuation

Email marketing is decades old, but it’s a category that has surprising life in it. Multiple generations of email marketing companies have come through and sustained success, from Constant Contact to Mailchimp. These brands often become household names — after all, you probably have hundreds of emails with their logos attached to the email footer.

Email marketing is decades old, but it’s a category that has surprising life in it. Multiple generations of email marketing companies have come through and sustained success, from Constant Contact to Mailchimp. These brands often become household names — after all, you probably have hundreds of emails with their logos attached to the email footer.

Klaviyo is not as much of a household name right now, but it is absolutely on its way to the paramount of the next-generation of email marketing startups.

The company announced today that it has raised $320 million in new capital in a Series D round, led by Sands Capital, a private and public equity investor that has, among many areas of focus, a thesis in ecommerce. That brings the company’s total fundraising to $675 million, following a $200 million Series C round from just six months ago.

Klaviyo was the subject of one of our most recent EC-1 analyses, where we looked at the company’s history of growth, how it is rebuilding what’s been dubbed “owned marketing” (i.e. marketing channels that a business owns like email rather than channels owned by platforms like Facebook and Instagram), how marketers are using Klaviyo post-COVID, and some startup growth lessons from the business as well.

There is nearly 10,000 words of analysis packed into that whole story, so read that or save it for the weekend if you really want to get into the nitty-gritty of Klaviyo’s story and how it is fitting in to the wider email marketing space. But suffice it to say that the company’s secret sauce is perhaps obvious: it’s a marketing company that’s pretty damn good at marketing. That’s allowed it to pull in gargantuan numbers of new customers as many retailers and brick-and-mortar businesses fled online in the wake of the COVID-19 pandemic.

In its press statement, the company wrote that “Klaviyo’s customer base doubled over the past 12 months and the company now serves over 70,000 paying customers, a more than 110% increase from 2019 — ranging from small businesses to Fortune 500 companies, in more than 120 countries.” It also said that it plans to increase its head count from 800 to 1,300 people this year.

The company is headquartered in Boston, and Klaviyo’s all-but decacorn valuation is a major win for the Boston enterprise ecosystem, which continues to percolate on high.

In addition to Sands, Counterpoint Global, Whale Rock Capital Management, ClearBridge Investments, Lone Pine Capital, Owl Rock Capital, and Glynn Capital also joined the round as new investors. Previous investors Accel and Summit Partners also participated.

News: Styra, the startup behind Open Policy Agent, nabs $40M to expand its cloud-native authorization tools

As cloud-native apps continue to become increasingly central to how organizations operate, a startup founded by the creators of a popular open-source tool to manage authorization for cloud-native application environments is announcing some funding to expand its efforts at commercializing the opportunity. Styra, the startup behind Open Policy Agent, has picked up $40 million in

As cloud-native apps continue to become increasingly central to how organizations operate, a startup founded by the creators of a popular open-source tool to manage authorization for cloud-native application environments is announcing some funding to expand its efforts at commercializing the opportunity.

Styra, the startup behind Open Policy Agent, has picked up $40 million in a Series B round of funding led by Battery Ventures. Also participating are previous backers A. Capital, Unusual Ventures and Accel; and new backers CapitalOne Ventures, Citi Ventures and Cisco Investments. Styra has disclosed CapitalOne is also one of its customers, along with e-commerce site Zalando and the European Patent Office.

Styra is sitting on the classic opportunity of open source technology: scale and demand.

OPA — which can be used across Kubernetes, containerized and other environments — now has racked up some 75 million downloads and is adding some 1 million downloads weekly, with Netflix, Capital One, Atlassian and Pinterest among those that are using OPA for internal authorization purposes. The fact that OPA is open source is also important:

“Developers are at the top of the food chain right now,” CEO Bill Mann said in an interview, “They choose which technology on which to build the framework, and they want what satisfies their requirements, and that is open source. It’s a foundational change: if it isn’t open source it won’t pass the test.”

But while some of those adopting OPA have hefty engineering teams of their own to customize how OPA is used, the sheer number of downloads (and potential active users stemming from that) speak to the opportunity for a company to build tools to help manage that and customize it for specific use cases in cases where those wanting to use OPA may lack the resources (or appetite) to build and scale custom implementations themselves.

As with many of the enterprise startups getting funded at the moment, Styra has proven itself in particular over the last year, with the switch to remote work, workloads being managed across a number of environments, and the ever-persistent need for better security around what people can and should not be using. Authorization is a particularly acute issue when considering the many access points that need to be monitored: as networks continue to grow across multiple hubs and applications, having a single authorization tool for the whole stack becomes even more important.

Styra said that some of the funding will be used to continue evolving its product, specifically by creating better and more efficient ways to apply authorization policies by way of code; and by bringing in more partners to expand the scope of what can be covered by its technology.

“We are extremely impressed with the Styra team and the progress they’ve made in this dynamic market to date,” said Dharmesh Thakker, a general partner at Battery Ventures. “Everyone who is moving to cloud, and adopting containerized applications, needs Styra for authorization—and in the light of today’s new, remote-first work environment, every enterprise is now moving to the cloud.” Thakker is joining the board with this round.

News: Help TechCrunch find the best email marketers for startups

Email marketing has been with us for decades, but today it has been refined to a science and an art form. If you’re an early-stage founder, it is one of the best ways to build and grow your direct relationship with your customer. You know how fickle the platforms can be. You can’t afford to

Email marketing has been with us for decades, but today it has been refined to a science and an art form.

If you’re an early-stage founder, it is one of the best ways to build and grow your direct relationship with your customer. You know how fickle the platforms can be. You can’t afford to mess this up.

So when and how should you think about doing email marketing, versus all of your other frantic priorities?

Here at Extra Crunch, we’re helping you find the answers. Today, we’re launching a survey of founders who want to recommend a great email marketer or agency they have worked with to the rest of the startup world.

Fill out the survey here.

If you have someone to recommend, make sure to let us know: We’ll use your answers to create a freely available public database of experts in this domain on TechCrunch. We’ll feature the most helpful responses (anonymously if requested) so other founders can find the right people for them to work with.

The next step might be even more useful: We’ll provide EC subscribers with our own coverage of email marketing how-to topics and issues in more detail, based on our ongoing conversations with these experts.

In the coming months, you’ll see us dig into topics from great content production to optimizing deliverability, flow, timing, and design. We’ll also examine how to use email together with other marketing funnels, to improve your ROI on paid advertising efforts.

We’ll cover ongoing changes to the technology that affect the space, including the state of the art in email tools, email service provider platform changes, privacy laws, and much more.

If you’re a founder and you respond to the survey, you’ll also receive a discount to a new Extra Crunch subscription.

We’re particularly interested in what the expert did in the early to middle stages of the startup’s journey. Usually before Series C, for venture-backed companies. Recommendations wanted for both individuals and agencies.

If you’re a growth marketing expert, you’re encouraged to share the survey with your founder clients.

Finally, for those who have been reading TechCrunch for at least a few years, you’ll remember a similar set of surveys we had begun around other categories of startup experts, including legal, brand and overall growth. After a hiatus to take care of a few other things, this survey marks the resumption of that initiative!

News: Fantasy fantasy sport Blaseball developers score $3M seed funding to go mobile

In the absence of a real baseball league, it is perhaps not surprising that a simulated one should grow popular during the troubled year 2020. But even so, the absurdist horror and minimalist aesthetic of Blaseball seem an unlikely success. The text-based fantasy fantasy league has attracted hundreds of thousands of players and now $3.4

In the absence of a real baseball league, it is perhaps not surprising that a simulated one should grow popular during the troubled year 2020. But even so, the absurdist horror and minimalist aesthetic of Blaseball seem an unlikely success. The text-based fantasy fantasy league has attracted hundreds of thousands of players and now $3.4 million in funding to build up the game and go mobile.

If you’re unfamiliar with Blaseball, feel free to go check it out now and sign up — it’s free. You’ll probably get a better idea of what the game is from 30 seconds of browsing than the next couple paragraphs.

For those of you who’d rather read, however, Blaseball is a web-based fictional baseball-esque league where players can bet in-game currency on the outcomes. But this is where things get weird. The teams aren’t the Mariners or the Mets but the Moist Talkers and the Worms; players have names like Chorby Soul and Peanutiel Duffy; their stats include things like allergies, pregame rituals, and an inventory of RPG-like items.

Likewise, games — told through simple text summaries of the action like you might see in the corner of a sports site — involve hits, balls, and stealing, but also incineration, shaming, and secret bases. “Weather” might involve spontaneous blood transfusions between players, or birds that interfere with play.

In short, it’s totally ridiculous, utterly unpredictable, and very funny. This totally unique concoction of fantasy leagues, baseball satire, and cosmic horror has accrued a dedicated yet routinely puzzled fanbase over its 19 week-long seasons. And like so many hits, this one came as something of a shock to its creators.

Activity feed from the game Blaseball showing various absurd and normal events like hits and incinerations.

Image Credits: The Game Band

“We’re as surprised as you are,” said Sam Rosenthal, founder and CEO of The Game Band, which developed (and is developing) the game. “Blaseball was an experimental side project for the studio — we were in the middle of a pandemic, publishers were in a spending freeze, it was a scary time. We wanted to make a game that brings people together in this really isolating time.”

The idea for it came from banter at a real baseball game, where Rosenthal and a friend speculated about a league where the rules were “different and more chaotic.” Of course the rules of real-life baseball are continually being revised, but so far there haven’t been any resurrections of players incinerated by rogue umpires, free runs for home teams, or shrink rays.

While the resulting game-like product bears some resemblance to baseball, betting, and fantasy leagues, it’s much too weird and random to really be considered the same thing. That’s led to some friction as players who expect a more traditional experience lose coins on a game decided by, say, a bird pecking their team’s star hitter inside an enormous peanut shell, or a guaranteed home run because the batter ate magma.

The Hades Tigers… so hot right now. The roster shows a team’s current and permanent attributes, while players can work together to create change by voting weekly.

“Sometimes we have to remind the fans that this is a horror game,” Rosenthal admitted. The gameplay, as players discover in time, consists more in cooperation and guiding the league itself than in precision oddsmaking. “This is not a game about individual success but collective success. The mechanics of the game reward organization, fans banding together with other fans of their team.”

Using those coins to buy votes to determine how the most-idolized players are treated at the end of a season, for instance, could have huge repercussions on the next season. Ultimately the players are really participating in a sort of long-term alternative-reality game rather than a zany baseball sim, as the ominous announcements and events drive home now and again.

Next to the outcome of a match and the news that a player was walked to second base, you might learn that “Reality flickered in the Feedback” or see disembodied dialogue about the league or disordered cosmos.

It can be disconcerting and one may rightly wonder whether the creators have a narrative or goal in mind, or whether they’re just winging it and being weird for weirdness’s sake. I guessed the latter, but Rosenthal set me straight.

The Game Band logo on a flag behind several instruments.

Image Credits: The Game Band

“It is going somewhere,” he assured me. “There are a lot of plans, we have a ton of lore written. We literally have a writers’ room every day, usually about 3-4 hours long. But we need to stay flexible because there’s two other creators: the simulation, since we don’t know what will happen in the games themselves, and the fans. There are things we don’t know they’ll latch onto, emergent narratives like the reincarnation of Jaylen Hotdogs. We’re always learning, and we give ourselves a lot of room to backtrack or change things quickly if needed.”

What was never clear even to the developers, however, was whether the game would live long enough to see those plans come to fruition. Blaseball, being a side project built during strange days, was never envisioned as a big money maker. For a small game developer to have a runaway success on their hands but little ability to monetize that success, the stresses of continuing development and support can overtake the benefits of popularity.

“Since we didn’t really set it up from the get go to be profitable, we were just sort of slowly losing money,” said Rosenthal. “Fortunately our community has been really supportive through Patreon and sponsorships. But ultimately we wanted to make the game better and sustainable, and we wanted to pay our team what they deserve.”

Illustration showing how 51 percent of Blaseball players are on mobile.

Image Credits: The Game Band

The $3M seed round keeps the lights on, to begin with, but also lets The Game Band staff up, so the writers don’t have to break up a meeting early because one of them is doubling as product support and the site is breaking. More importantly, however, the team plans to make a native mobile app. More than half of Blaseball’s players (that is, the real ones, not Baby Triumphant and Wyatt Mason IV) are on mobile and Rosenthal admitted the mobile experience is “not great.”

The company comes from a mobile development background, he noted, so they know what they’re doing, but saw the web as the easiest platform to deploy on during the pandemic. Now they want to get mobile up and running, since the live, constantly shifting nature of the game fits well with the kind of updates sports and fantasy aficionados tend to sign up for. Who wouldn’t want to know right away that their favorite team has entered Party Time, or that their idolized player found a new piece of armor, or that a new non-physical law has been ratified?

Rosenthal said they resisted seeking funding to begin with due to a desire for independence, but was enthused about their choice of investor, Makers Fund, saying they actually understand Blaseball and have been partners rather than parents when it comes to moving the operation towards making money.

“The know we can’t just copy monetization from another game and put it in Blaseball, that would ruin the experience right away. They have an amazing network of people in the games industry, and at the end of the day they’re not prescriptive,” he said.

(They also gamely did not object to a line in the press release by the fictional Commissioner asserting that “Blaseball has acquired Makers Fund,” which says a lot.)

“We’re very cognizant that there are ways that free games can monetize that are detrimental to the community,” he continued. “So it will always be free to play and it will never be pay to win. Like, the Crabs are never going to run away with it because they’re the richest team. When we think about monetization we think about how it can benefit the community as a whole, not individuals.”

In the meantime the league slouches on, morphing from week to week in a live dialogue between players and developers. Don’t expect it go get any less weird, because the creators know that constant disorientation is part of the game’s charm.

Amazingly, Rosenthal even managed to suggest that Blaseball was, in the parlance of game design tropes, the Dark Souls of baseball simulators — “it [Dark Souls] gives you so little, it asks you to interpret and put a thesis together, to go linger on forums and talk with others about it. We wanted to create that kind of experience, and see how people would interpret this sort of weird, unknowable entity.”

They certainly got the weird and unknowable part right. You can try Blaseball out for yourself here.

News: Somewhere Good just raised $3.75M to make your somewhere good

Nearly every social media experience today is built on the same premise: Humans identify with individuality. Users create a profile, upload an avatar picture, write a short biography and can then scream into the ether to other users on behalf of their digitally sculpted selves. Naj Austin, the founder behind Ethel’s Club, built Somewhere Good

Nearly every social media experience today is built on the same premise: Humans identify with individuality. Users create a profile, upload an avatar picture, write a short biography and can then scream into the ether to other users on behalf of their digitally sculpted selves.

Naj Austin, the founder behind Ethel’s Club, built Somewhere Good last year on an entirely different premise. She believes that humans crave collectivism more than individualism in a post-COVID world. So she’s in the process of reinventing how social media looks and feels, and with community and people of color at the core.

Less than a year after launching, Somewhere Good announced this morning that it has raised $3.75 million in a seed round led by True Ventures. Existing investors Dream Machine, Debut Capital and Canvas Ventures participated in the round, along with new investors, including Slauson & Co., NextView Ventures and 2PM Inc. Notable angels include Ellen Pao of Project Include and actor Gabrielle Union. The money will be used for continued product innovation and expanding its nine-person team.

“I’m thinking about scale and trying to ensure that the most people have access to a safe and authentic community on their phones, and that means it has to be venture-backed in terms of being able to accomplish that in a way that also feels delightful,” Austin said. “To build a platform that allows for us to have consultants who are thinking about accessibility, safety and privacy, we have to pay them.”

Extracting the buzz from Community

Somewhere Good is a mobile app that connects people and then fosters that connection in a solely group setting, across a diversity of interests — such as a birdwatching collective for people of color or an anti-capitalist book club.

The platform arose from Austin’s other company, subscription-based community for people of color, Ethel’s Club. Members kept asking her for different things: a cooking club, a therapist recommendation, a wellness group. She said she became a de facto Google for members, and that Ethel’s Club began to “frankenstein” into different groups and needs.

“Which is, you know, not scalable,” she said. “We thought ‘Why don’t we build a technology layer that communities like Ethel’s club need?’” Somewhere Good is now a social search platform for people to join, chat and discover new communities.

Somewhere Good

Users can visit and drop into different “worlds” or communities that fit their interests, she explained. Once a user has entered a world, they can view and post content and have real-time audio conversations with others. People are encouraged to cite content in order to promote content and nuance.

“If I add an Angela Davis article in ‘Abolition World’ I can also see that you added it to ‘Black Feminists’ world and so on,” Austin explained. “This is likely to encourage you to look into the Black Feminists world and further your discovery.”

Austin stressed that no one person or host controls the experience, instead putting focus on the community as a whole to create a world that is living and breathing. It’s her response to the rise of community in every startup right now.

“Communities become a buzzword that everyone’s trying to tap into their platforms now,” she said. “Things I know about community and what I’ve learned over the last year-and-a-half is that you need intimacy, you need nuance, you need collaboration and you need this magical collision of people who have shared identities.”

How Somewhere Good actually executes this mission will rely heavily on its product, which is still in its infancy. Right now, Austin shared that they have made intentional choices to remove what she sees as the “empty noise” of other social media platforms. At this point, there are no advertisements on Somewhere Good, no user profiles, no friending, no following and no feed.

Notably, this differentiation is also one of Somewhere Good’s biggest challenges.

“When building something new, it potentially feels like we are taking it away from the users,” she said. “For example, taking profiles away may feel like it is a less than, versus that it is additive in the long run because you no longer have to have a perfect profile and worry about users.”

The startup is testing out user reaction to these sorts of fundamental structural changes over the next couple of weeks. Somewhere Good also launched SHIFT, a $50,000 year-long fellowship program, to invite people to join the team and create a feedback loop on product, team and community, as well as explore some of the ideas that Austin is experimenting with today.

“We still aren’t going to be able to make the most perfect platform for everyone on Earth to start, and we know that, but in doing so we’ve created a fellowship to help inform us, and kind of heads down and deploy that occurs when you’re building a product.”

Entering the Clubhouse

The app was meant to go into beta in January 2020 but that has now been pushed to the second half of 2021 so the team could continue to tweak the product. The beta will be invite-only to start, including 50 to 75 communities and their members that Somewhere Good has vetted beforehand and the some 5,000 people on its waitlist.

Somewhere Good’s monetization plan is also in the early innings, and the founder says it will focus on that more when the app reaches scale.

Clubhouse, an app valued at $1 billion that is similarly focused on community and spontaneity, could be seen as competition to Somewhere Good. Clubhouse has an exploration page that helps users discover different clubs, and it also built out a creator network to bring high-quality, recurring content to its platform.

“It’s a solid company,” Austin said. “But I think they’ve struggled with really big questions and I think that there are solutions and answers out there that Clubhouse has chosen not to embed to their platform, and that was simply a choice that they made.”

For now, she doesn’t seem fazed.

“I feel like most of the platforms that exist are taking what already exists and kind of putting a veneer on it,” she said. “There’s nothing wrong with repainting, but then it’s just repainting.” Reinventing feels like an outsized opportunity.

“I believe if we get Somewhere Good right, it can replace many of the apps on your phone,” she said. “When you think about it, where you receive the most value, outside of the calculator app, is with your friends and the people you know and trust.”

News: Pizza robot-maker Picnic raises another $16.3M

The events of the past year and a half could well mark the beginning of a sea change for the world of restaurant robotics. The essential industrial was slammed amid the pandemic, leaving many companies searching for a decent automated option that could both keep things running and potentially avoid transmission vectors. Seattle-based Picnic is

The events of the past year and a half could well mark the beginning of a sea change for the world of restaurant robotics. The essential industrial was slammed amid the pandemic, leaving many companies searching for a decent automated option that could both keep things running and potentially avoid transmission vectors.

Seattle-based Picnic is the latest to benefit from that interest, announcing a $16.3 raise this week. Led by Thursday Ventures — with participation from Creative Ventures, Flying Fish Partners and Vulcan Capital – the Series A includes a $3 million bridge filed last fall.

The company is one of a handful looking to automate the pizza-making process. It’s an obvious target for this technology, given both the food’s popularity and the relative uniformity, versus other meals. XRobotics debuted its own system late-late year, while Zume – possibly the best-known of the bunch – has long since exited the category.

Picnic, meanwhile, says interest in its own pizza system has ramped up of late, announcing a number of industry partnerships, including Orion Land Mark, Ethan Stowell Restaurants, National Service Cooperative  and Baseline Hardware Financing. The plan is to roll the technology out to both restaurants and other public gathering spaces, including schools, stadiums and hospitals. The company says this latest round will go toward headcount and expanding operations.

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