Daily Archives: July 22, 2021

News: Commercial EV company Arrival to build electric buses for Anaheim

• July 22, 2021
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Arrival, the commercial electric vehicle company that is shaking up the traditional auto production line with AI-run microfactories, has been chosen to build electric buses for the City of Anaheim, California. The Federal Transportation Administration awarded Anaheim a $2 million grant in 2019, and on Thursday the city’s transportation network announced the plan to partner

Arrival, the commercial electric vehicle company that is shaking up the traditional auto production line with AI-run microfactories, has been chosen to build electric buses for the City of Anaheim, California.

The Federal Transportation Administration awarded Anaheim a $2 million grant in 2019, and on Thursday the city’s transportation network announced the plan to partner with Arrival to achieve its goal of running California’s first all-electric bus fleet by 2025.

The U.K.-based company said Anaheim, which operates transit services to and from Disneyland and other local attractions, would be the first customer for its lightweight-battery bus. Arrival will start with five 40-foot buses, but did not respond to requests for more information about when the buses would launch and when to expect more additions to the fleet.

The buses for Anaheim will be built in Arrival’s first U.S. microfactory in Rock Hill, South Carolina. Arrival’s other microfactory is in Charlotte, North Carolina, but the startup aims to have 31 microfactories all over the country by the end of 2024.

Arrival’s partnership with Anaheim Transportation Network also includes workforce development programs, according to a statement from the EV company. Local community colleges with electrical and mechanical engineering programs will be able to give eligible students internships to gain experience working with zero-emission transportation.

“The Arrival Bus will change the face of public transportation when it hits the roads,” said Mike Ableson, CEO of Arrival Automotive. “Our first order from a U.S. transit operator is just the beginning.”

Arrival, which recently went public via a SPAC merger, already has a number of notable  partnerships. Last year, it signed an agreement with UPS to roll out an initial order of 10,000 electric delivery vehicles through 2024. In May the company partnered with Uber to create a purpose-built EV for ride-hailing, and just last week, the company announced an initial order of 3,000 EVs from LeasePlan, a Dutch “car-as-a-service” company.

News: Trouble in fandom paradise: Tumblr users lash out against its beta subscription feature

• July 22, 2021
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The Tumblr community often refers to itself as the Wild West of the internet, and they’re not wrong. A text post with over 70,000 notes puts it best: “Tumblr is my favorite social media site because this place is literally uninhabitable for celebrities. No verification system, no algorithm that boosts their posts, it’s a completely

The Tumblr community often refers to itself as the Wild West of the internet, and they’re not wrong. A text post with over 70,000 notes puts it best: “Tumblr is my favorite social media site because this place is literally uninhabitable for celebrities. No verification system, no algorithm that boosts their posts, it’s a completely lawless wasteland for them.”

But like any social media company, Tumblr needs to keep itself afloat in order for its users to continue sharing esoteric fan art, incomprehensible shitposts, and overly personal diary entries hidden beneath a “Read More” button. Yesterday, Tumblr announced the limited beta test of its Post+ subscription feature, which — if all goes as planned — will eventually let Tumblr users post paywalled content to subscribers that pay them $3.99, $5.99 or $9.99 per month.

Image Credits: Tumblr

Tumblr is far from the first social media platform to seek revenue this way — Twitter is rolling out Super Follows and a Tip Jar feature, and this week, YouTube announced a tipping feature too. Even Instagram is working on its own version of Twitter’s Super Follows that would let users create “exclusive stories.” But on a website with a community that prides itself as being a “completely lawless wasteland” for anyone with a platform (save for Wil Wheaton and Neil Gaiman, who are simply just vibing), the move toward paywalled content was not welcomed with open arms.

Monetization is a double-edged sword. It’s not considered uncool for a Tumblr artist to link to a third-party Patreon or Ko-fi site on their blog, where their most enthusiastic followers can access paywalled content or send them tips. So Post+ seems like an obvious way for Tumblr to generate revenue — instead of directing followers to other websites, they could build a way for fans to support creators on their own platform while taking a 5% cut. This isn’t unreasonable, considering that Twitter will take 3% revenue from its new monetization tools, while video-centric platforms like YouTube and Twitch take 30% and 50%, respectively. But Tumblr isn’t Twitter, or YouTube, or Twitch. Unlike other platforms, Tumblr doesn’t allow you to see other people’s follower counts, and no accounts are verified. It’s not as easy to tell whether the person behind a popular post has 100 followers or 100,000 followers, and the users prefer it that way. But Post+ changes that, giving bloggers an icon next to their username that resembles a Twitter blue check.

A Tumblr Post+ creator profile

Tumblr rolled out Post+ this week to a select group of hand-picked creators, including Kaijuno, a writer and astrophysicist. The platform announced Post+ on a new blog specific to this product, rather than its established staff blog, which users know to check for big announcements. So, as the most public user who was granted access, the 24-year-old blogger was the target of violent backlash from angry Tumblrites who didn’t want to see their favorite social media site turn into a hypercapitalist hellscape. When Kaijuno received death threats for beta testing Post+, Tumblr’s staff intervened and condemned harassment against Post+ users.

“We want to hear about what you like, what you love, and what concerns you. Even if it’s not very nice. Tell us. We can take it,” Tumblr wrote on its staff blog. “What we won’t ever accept is the targeted harassment and threats these creators have endured since this afternoon. […] all they’re doing is testing out a feature.”

Before making their post, a representative from Tumblr’s staff reached out to Kaijuno directly to check in on them regarding the backlash, but there’s only so much that Tumblr can do after a user has already been threatened for using their product.

“I felt like the sacrificial lamb, because they didn’t announce Post+ beforehand and only gave it to a few people, which landed me in the crosshairs of a very pissed-off user base when I’m just trying to pay off medical bills by giving people the option to pay for content,” Kaijuno told TechCrunch. “I knew there’d be some backlash because users hate any sort of change to Tumblr, but I thought that the brunt of the backlash would be at the staff, and that the beta testers would be spared from most of it.”

Why do Tumblr users perceive monetization as such a threat? It’s not a question of whether or not it’s valuable to support creators, but rather, whether Tumblr is capable of hosting such a service. Multiple long-time, avid Tumblr users that spoke to TechCrunch referenced an incident in late 2020 when people’s blogs were being hacked by spam bots that posted incessant advertisements for a Ray-Ban Summer Sale.

“Tumblr is not the most well-coded website. It’s easy to break features,” Kaijuno added. “I think anything involving trusting Tumblr with your financial information would have gotten backlash.”

Tumblr users also worried about the implications Post+ could have on privacy — in the limited beta, Post+ users only have the ability to block people who are subscribed to their blog if they contact Tumblr support. In cases of harassment by a subscriber, this could leave a blogger vulnerable in a potentially dangerous situation.

“Ahead of our launch to all U.S.-based creators this fall, Post+ will allow creators to block subscribers directly,” a Tumblr spokesperson told TechCrunch.

Still, the Extremely Online Gen Z-ers who now make up 48% of Tumblr know that they can’t expect the platform to continue existing if it doesn’t pull in enough money to pay for its staff and server fees. In 2018, Tumblr lost almost one-third of its monthly page views after all NSFW content was banned — since then, the platform’s monthly traffic has remained relatively stagnant.

Image Credits: SimilarWeb

A former Tumblr employee told TechCrunch that the feature that became Post+ started out as a Tip Jar. But higher-ups at Tumblr — who do not work directly with the community — redirected the project to create a paywalled subscription product.

“I think a Tip Jar would be a massive improvement,” said the creator behind the Tumblr blog normal-horoscopes. Through the core audience they developed on Tumblr, they make a living via Patreon, but they don’t find Post+ compelling for their business. “External services [like Patreon] have more options, more benefits, better price points, and as a creator I get to choose how I present them to my audience.”

But a paywalled subscription service is different in the collective eyes of Tumblr. For a site that thrives on fandom, creators that make fan art and fanfiction worry that placing this derivative work behind a paywall — which Post+ encourages them to do — will land them in legal trouble. Even Archive of Our Own, a major fanfiction site, prohibits its users from linking to sites like Patreon or Ko-Fi.

“Built-in monetization attracts businesses, corporate accounts, people who are generally there to make money first and provide content second,” said normal-horoscopes. “It changes the culture of a platform.”

Across Tumblr, upset users are rallying for their followers to take Post+’s feedback survey to express their frustrations. The staff welcomes this.

“As with any new product launch, we expect our users to have a healthy discussion about how the feature will change the dynamics of how people use Tumblr,” a Tumblr spokesperson told TechCrunch. “Not all of this feedback will be positive, and that’s OK. Constructive criticism fuels how we create products and ultimately makes Tumblr a better place.”

Tumblr’s vocal community has been empowered over the years to question whether it’s possible for a platform to establish new revenue streams in a way that feels organic. The protectiveness that Tumblr’s user base feels for the site — despite their lack of faith in staff — sets it apart from social media juggernauts like Facebook, which can put e-commerce front and center without much scrutiny. But even three years after the catastrophic porn ban, it seems hard for Tumblr to grow without alienating the people that make the social network unique.

Platforms like Reddit and Discord have remained afloat by selling digital goods, like coins to reward top posters, or special emojis. Each company’s financial needs are different, but Tumblr’s choice to monetize with Post+ highlights the company’s lack of insight into its own community’s wishes.

News: Daily Crunch: Today’s widespread internet outage ‘not a result of a cyberattack,’ says Akamai

• July 22, 2021
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Hello friends and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here.

Hello and welcome to Daily Crunch for July 22, 2021. Today we have a lot of news for you, but with a notable twist. Normally we have lots of startup news and a few notes from Big Tech companies. Today we have a lot from both, so strap in.

Also, U.S. Secretary of Transportation Pete Buttigieg is coming to Disrupt. Because TechCrunch covers the worlds of micromobility, mobility proper and the future of transit, we have a few questions for the man. — Alex

The TechCrunch Top 3

• Gopuff is raising again: TechCrunch broke the news today that Gopuff, the SoftBank-backed delivery company, is raising more capital. Our sources say $1 billion at around a $15 billion valuation. Axios confirmed the news. The potential funding will follow in the wake of lots of capital raised for instant-delivery grocery around the world.
• Canada’s venture capital market is hotter than the sun: TechCrunch’s exploration of the global, U.S, Indian, European and Latin American startup markets continued today with a look at North North America. It turns out that Canadian startups are enjoying one hell of a year when it comes to landing big venture rounds.
• The internet went down. Here’s why: Akamai’s DNS system hit a pothole today, taking down a pretty big chunk of the internet. Lots of stuff broke, including the Couchbase website right as your humble servant was prepping to chat with its CEO about its recent IPO (more here). Things are back to normal now, but don’t forget that the internet is not a series of tubes. It’s a series of leaky tubes held together with duct tape.

Startups/VC

Let’s talk about startups. Today we have everything from passwordless tech to new venture funds and a robotics roundup. But if you need even more, here’s Greylock’s Mike Duboe explaining how to define growth and build your team.

• Mindtech raises $3.25M for synthetic human watching: No really, that’s what it does. The U.K.-based company’s service wants to train CCTV cameras on digital humans, saving customers from knotty privacy issues. This is one of those times when venture capital dollars appear to be flowing to an actually kinda wild idea?
• Sendlane wants you to spend more: Sendlane, now flush with $20 million in new capital, wants to help its customers use data on their customers to help keep shoppers loyal and spend more. I would call this slightly creepy but then I would sound like the luddite that I am.
• All Raise launches virtual bootcamp for women and nonbinary founders: As venture funding races to new heights, it’s not landing everywhere equally. In fact, some data sources indicate that VC is actually getting less diverse this year. All Raise wants to push back on that by helping more founders other than folks who look like me raise capital. Good.
• Magic raises $27M to get rid of passwords: Magic, a startup that will spend its life trying to live up to its name, just raised a huge amount of money to pursue its vision of a less password-focused future. Its tech allows developers to “implement a variety of passwordless authentication methods with just a few lines of code,” TechCrunch reports.
• What has a five-letter name and 3 billion more dollars? Sadly, it’s not you or me. It’s Index! The venture capital firm has put together new funds worth just under $3 billion, a big chunk more money than it raised, er, a year ago. Hot Startup Summer is being made possible by Hot Zero Interest Rate Policy Decade, which in turn is helping fuel Hot Bored Cash Season, leading to every venture capital firm raising enough money to cause their GPs to lose sleep. Fun!

And for your robotics fans out there, TechCrunch has a new digest from the industry here. Enjoy!

Last-mile delivery in Latin America is ready to take off

Thanks to sprawling fulfillment centers, seamless logistics networks and ubiquitous internet access, consumers in many regions now order groceries and a new set of cookware during breakfast and can reasonably expect everything to arrive in time for dinner.

In Latin America, a lack of technology infrastructure makes delivery operations less complex — products are delivered from a retailer’s loading dock to a customer’s front door — but these supply chains are often managed with spreadsheets, paper and pen.

Algorithms that manage delivery routes or automatically dispatch drivers “are almost unheard of in the Latin America retail logistics sector,” says Bob Ma, an investor at WIND Ventures.

But thanks to growing consumer demand and expanding investment in last-mile delivery startups, Ma says the region is at a turning point.

Since Latin America’s middle class has grown 50% in the last decade and e-commerce constitutes just 6% of all retail, several unicorns have emerged in recent years, with more waiting in the wings.

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

Big Tech Inc.

Let’s start with transportation news and then talk about the rest of Big Tech.

Daily Crunch asked TechCrunch transportation guru and generally sterling person Kirsten Korosec just why there was so much news today from her beat. “I have no idea why, just make it stop,” she joked, before adding that she “can say that with so many automakers making commitments to move to all electric lines, we can expect more announcements about how they plan to ensure they have battery capacity and other raw materials.”

Here’s the news:

• Rivian sets sights on second factory: Fresh off production delays, EV company Rivian is planning for the future in the form of another factory. The company admitted to being in the process of looking for a second plant. Our read? This electric car thing is not slowing down.
• Speaking of which, Tesla will source nickel directly from commodity production giant BHP. It’s going to be the Hunger Games out there for the raw materials needed for electric cars if the market evolves as it is expected to. Tesla wants to make sure it doesn’t lack supplies.
• How much demand are we talking about? Well, Mercedes is going to build eight — eight! — battery plants. Now that we’ve read the news, the idea makes sense, but it still made us sit up and consider its implications. The days of the internal combustion engine are coming to an end.
• Uber buys Transplace for $2.25B: Rounding out our mobility rundown, Uber is making moves with its checkbook, this time buying Transplace, a digital logistics company, for a few billion. The effort will fit into Uber’s larger freight aspirations. The company has said that it intends to reach adjusted profitability this year.
• Meanwhile, Waymo announced it is opening an office in Pittsburgh, where it will certainly put even more pressure on an already competitive talent recruiting process.

And from the rest of the world of giant tech companies:

• Spotify and Giphy team up: Er, have you wanted GIFs in your music player? Well, good news if so: Spotify has “a new partnership with online GIF database GIPHY to enable discovery of new music through GIFs.” Cool?
• Microsoft buys CloudKnox: Microsoft’s push to provide cash returns to every cybersecurity-focused venture capitalist continued today, with the Redmond-based software giant buying CloudKnox. It’s the fourth deal this year for a smaller cybersecurity-focused startup from Microsoft.
• Visa buys Currencycloud: Visa, likely still stinging slightly from its inability to buy fintech API provider Plaid, is busy buying other companies. This time it’s Currencycloud, which builds other fintech APIs. Jokes aside, the deal will bring the smaller company’s remittance and currency-transfer tech into Visa for just under $1 billion.

TechCrunch Experts: Growth Marketing

Image Credits: SEAN GLADWELL (opens in a new window) / Getty Images

We’re reaching out to startup founders to tell us who they turn to when they want the most up-to-date growth marketing practices. Fill out the survey here.

Read one of the testimonials we’ve received below!

Marketer: Adam DuVander, EveryDeveloper

Recommended by: Karl Hughes, Draft.dev

Testimonial: “In addition to writing a book on developer marketing, Adam draws from deep experience as a developer and developer advocate to make sure his clients set a winning strategy in motion.”

News: Khosla Ventures leads Even’s $5M seed to give India the kind of healthcare their insurance doesn’t

• July 22, 2021
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Even, a healthcare membership company, aims to make going to a primary care doctor as easy and accessible in India as it is in other countries.

The global pandemic highlighted inefficiencies and inconsistencies in healthcare systems around the world. Even co-founders Mayank Banerjee, Matilde Giglio and Alessandro Ialongo say nowhere is this more evident than in India, especially after the COVID death toll reached 4 million this week.

The Bangalore-based company received a fresh cash infusion of $5 million in seed funding in a round led by Khosla Ventures, with participation from Founders Fund, Lachy Groom and a group of individuals including Palo Alto Networks CEO Nikesh Arora, CRED CEO Kunal Shah, Zerodha founder Nithin Kamath and DST Global partner Tom Stafford.

Even, a healthcare membership company, aims to cover what most insurance companies in the country don’t, including making going to a primary care doctor as easy and accessible as it is in other countries.

Banerjee grew up in India and said the country is similar to the United States in that it has government-run and private hospitals. Where the two differ is that private health insurance is a relatively new concept for India, he told TechCrunch. He estimates that less than 5% of people have it, and even though people are paying for the insurance, it mainly covers accidents and emergencies.

This means that routine primary care consultations, testings and scans outside of that are not covered. And, the policies are so confusing that many people don’t realize they are not covered until it is too late. That has led to people asking doctors to admit them into the hospital so their bills will be covered, Ialongo added.

Banerjee and Giglio were running another startup together when they began to see how complicated health insurance policies were. About 50 million Indians fall below the poverty line each year, and many become unable to pay their healthcare bills, Banerjee said.

They began researching the insurance industry and talking with hospital executives about claims. They found that one of the biggest issues was incentive misalignment — hospitals overcharged and overtreated patients. Instead, Even is taking a similar approach to Kaiser Permanente in that the company will act as a service provider, and therefore, can drive down the cost of care.

Even became operational in February and launched in June. It is gearing up to launch in the fourth quarter of this year with more than 5,000 people on the waitlist so far. Its health membership product will cost around $200 per year for a person aged 18 to 35 and covers everything: unlimited consultations with primary care doctors, diagnostics and scans. The membership will also follow as the person ages, Ialongo said.

The founders intend to use the new funding to build out their operational team, product and integration with hospitals. They are already working with 100 hospitals and secured a partnership with Narayana Hospital to deliver more than 2,000 COVID vaccinations so far, and more in a second round.

“It is going to take a while to scale,” Banerjee said. “For us, in theory, as we get better pricing, we will end up being cheaper than others. We have goals to cover the people the government cannot and find ways to reduce the statistics.”

News: Cowboy Ventures’ Ted Wang: CEO coaching is ‘about having a second set of eyes’

• July 22, 2021
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‘I think you want insight from people who understand how human beings listen and learn and grow.’

Earlier this month, Cowboy Ventures’ Ted Wang joined us at TechCrunch Early Stage: Marketing and Fundraising, where he spoke about executive coaching and why he encourages founders in his portfolio to have a CEO coach. Wang, who has an executive coach himself, sees coaching as a key way to drive sustained personal growth, a factor that he believes separates the middling CEOs from the best ones.

Why CEOs need coaching

Just like professional athletes at the top of their game still need coaching, executives can need external validation and comment on where they are and aren’t delivering, Wang says. These insights can be tough for executives to catch on their own and might require a level of honesty that can be challenging for a CEO to expect from anyone involved with their company.

Roger Federer — the famous tennis player who has won 20 Grand Slam events — he has a coach, but he doesn’t just have a coach, he has a coach for tennis. I’m pretty sure Roger knows the rules of the game and all the different strokes he needs to hit, so why would he have a coach? The answer is really that it’s about having a second set of eyes; when you’re in the moment … it’s hard to be able to see yourself and assess yourself. (Timestamp: 4:52)

Coaches can help entrepreneurs reflect and reframe the things being communicated with them.

A good example — you might be at a board meeting and one of your board members is being critical of your VP of marketing, and one way to think of that is “Oh, OK, here are some things we need to solve for this person,” but another point of view that a coach might open your eyes to, is actually maybe this person thinks you’re not hiring the right people. (Timestamp: 8:59)

While advisers can help startups navigate tactical situations, therapists may be more focused on helping clients navigate emotional states and improve themselves. Coaching exists in a very nebulous gray area between startup advisers and licensed therapists, Wang says, but coaching is more focused on improving yourself as a business leader rather than solving a particularly vexing startup issue.

News: One week left to buy passes to TC Disrupt 2021 for less than $100

• July 22, 2021
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TechCrunch Disrupt 2021, the world’s original and most epic conference dedicated to tech startups, takes place September 21-23. Are you ready to take full advantage of this opportunity-packed event? Start right now and buy a Disrupt pass for less than $100. But don’t wait — the early bird prices disappear on July 30 at 11:59

TechCrunch Disrupt 2021, the world’s original and most epic conference dedicated to tech startups, takes place September 21-23. Are you ready to take full advantage of this opportunity-packed event? Start right now and buy a Disrupt pass for less than $100. But don’t wait — the early bird prices disappear on July 30 at 11:59 pm (PT).

Experience the full range of the global tech startup culture. Disrupt draws thousands of attendees from around the world, ready to learn, network, inspire and inform. You’ll hear from the leading voices across the tech spectrum — people like Coinbase CEO, Brian Armstrong, Pear VC’s Mar Hershenson and Accel’s Arun Matthew. And even a few tech-savvy celebrity founders (we’re looking at you, Seth Rogan).

Head to the Disrupt Stage for compelling interviews, panel discussions and presentations. And if you’re hot for tips, strategies and advice you can put to work in your startup right away, head on over to the Extra Crunch Stage. Our virtual platform makes it easy to pop in and out as your schedule permits, and you’ll have three months of video-on-demand access to all presentations when the event ends. You won’t miss a thing.

Check out the Disrupt 2021 agenda and register here to get updates when we add new speakers, events and discounts.

Startup Alley, our legendary expo area, is already sold out. Do not miss this collection of innovative startups showcasing their impressive tech and talent. Stop by their virtual booths, schedule 1:1 video meeting, ask for a product demo. You might just find a new collaborator, the perfect solution to a nagging problem or a promising addition to your investment portfolio.

Pro Tip: Every Startup Alley exhibitor will take part in one of our pitch feedback breakout sessions. It’s not only an opportunity to learn about the company — the feedback they receive from the Team TechCrunch can help you improve your own pitch.

Of course, Startup Battlefield is where the best-of-the best take the virtual stage to pitch for glory, global exposure and, oh yeah, $100,000 in equity-free prizemoney. It’s the startup world’s best launch pad and, since its inception, 922 companies have collectively raised $9 billion and generated 117 exits. Here’s how Rachael Wilcox, a creative producer at Volvo Cars described watching Startup Battlefield at Disrupt 2020.

“The Startup Battlefield translated easily to the virtual format. You could see the excitement, enthusiasm and possibility of the young founders, and I loved that. You could also ask questions through the chat feature, and you don’t always have time for questions at a live event.”

Tune in to watch this thrilling throwdown. You never know — this year’s cohort might produce a future unicorn or two.

TechCrunch Disrupt 2021 takes place on September 21-23. Buy your Disrupt pass before July 30 at 11:59 pm (PT), and you’ll pay less than $100. Now that’s an opportunity worth grabbing.

Is your company interested in sponsoring or exhibiting at Disrupt 2021? Contact our sponsorship sales team by filling out this form.

News: VOCHI raises additional $2.4 million for its computer vision-powered video editing app

• July 22, 2021
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VOCHI, a Belarus-based startup behind a clever computer vision-based video editing app used by online creators, has raised an additional $2.4 million in a “late-seed” round that follows the company’s initial $1.5 million round led by Ukraine-based Genesis Investments last year. The new funds follow a period of significant growth for the mobile tool, which

VOCHI, a Belarus-based startup behind a clever computer vision-based video editing app used by online creators, has raised an additional $2.4 million in a “late-seed” round that follows the company’s initial $1.5 million round led by Ukraine-based Genesis Investments last year. The new funds follow a period of significant growth for the mobile tool, which is now used by over 500,000 people per month and has achieved a $4 million-plus annual run rate in a year’s time.

Investors in the most recent round include TA Ventures, Angelsdeck, A.Partners, Startup Wise Guys, Kolos VC, and angels from other Belarus-based companies like Verv and Bolt. Along with the fundraise, VOCHI is elevating the company’s first employee, Anna Bulgakova, who began as head of marketing, to the position of co-founder and Chief Product Officer.

According to VOCHI co-founder and CEO lya Lesun, the company’s idea was to provide an easy way for people to create professional edits that could help them produce unique and trendy content for social media that could help them stand out and become more popular. To do so, VOCHI leverages a proprietary computer-vision-based video segmentation algorithm that applies various effects to specific moving objects in a video or to images in static photos.

“To get this result, there are two trained [convolutional neural networks] to perform semi-supervised Video Object Segmentation and Instance Segmentation,” explains Lesun, of VOCHI’s technology. “Our team also developed a custom rendering engine for video effects that enables instant application in 4K on mobile devices. And it works perfectly without quality loss,” he adds. It works pretty fast, too — effects are applied in just seconds.

The company used the initial seed funding to invest in marketing and product development, growing its catalog to over 80 unique effects and more than 30 filters.

Image Credits: VOCHI

Today, the app offers a number of tools that let you give a video a particular aesthetic (like a dreamy vibe, artistic feel, or 8-bit look, for example). It can also highlight the moving content with glowing lines, add blurs or motion, apply different filters, insert 3D objects into the video, add glitter or sparkles, and much more.

In addition to editing their content directly, users can swipe through a vertical home feed in the app where they can view the video edits others have applied to their own content for inspiration. When they see something they like, they can then tap a button to use the same effect on their own video. The finished results can then be shared out to other platforms, like Instagram, Snapchat and TikTok.

Though based in Belarus, most of VOCHI’s users are young adults from the U.S. Others hail from Russia, Saudi Arabia, Brazil and parts of Europe, Lesun says.

Unlike some of its video editor rivals, VOCHI offers a robust free experience where around 60% of the effects and filters are available without having to pay, along with other basic editing tools and content. More advanced features, like effect settings, unique presents and various special effects require a subscription. This subscription, however, isn’t cheap — it’s either $7.99 per week or $39.99 for 12 weeks. This seemingly aims the subscription more at professional content creators rather than a casual user just looking to have fun with their videos from time to time. (A one-time purchase of $150 is also available, if you prefer.)

To date, around 20,000 of VOCHI’s 500,000 monthly active users have committed to a paid subscription, and that number is growing at a rate of 20% month-over-month, the company says.

Image Credits: VOCHI

The numbers VOCHI has delivered, however, aren’t as important as what the startup has been through to get there.

The company has been growing its business at a time when a dictatorial regime has been cracking down on opposition, leading to arrests and violence in the country. Last year, employees from U.S.-headquartered enterprise startup PandaDoc were arrested in Minsk by the Belarus police, in an act of state-led retaliation for their protests against President Alexander Lukashenko. In April, Imaguru, the country’s main startup hub, event and co-working space in Minsk — and birthplace of a number of startups, including MSQRD, which was acquired by Facebook — was also shut down by the Lukashenko regime.

Meanwhile, VOCHI was being featured as App of the Day in the App Store across 126 countries worldwide, and growing revenues to around $300,000 per month.

“Personal videos take an increasingly important place in our lives and for many has become a method of self-expression. VOCHI helps to follow the path of inspiration, education and provides tools for creativity through video,” said Andrei Avsievich, General Partner at Bulba Ventures, where VOCHI was incubated. “I am happy that users and investors love VOCHI, which is reflected both in the revenue and the oversubscribed round.”

The additional funds will put VOCHI on the path to a Series A as it continues to work to attract more creators, improve user engagement, and add more tools to the app, says Lesun.

News: Check out the all-star speakers joining us on Extra Crunch Live in August

• July 22, 2021
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Extra Crunch Live has taught us a lot. From how Retail Zipline’s Series A pitch deck ticked every box for Emergence Capital to how Coda perfected the growth fly wheel, much to the delight of Madrona’s S. Somasegar to Toast’s ongoing obsession with its customers, and why its investors are obsessed with Toast. And that’s

Extra Crunch Live has taught us a lot. From how Retail Zipline’s Series A pitch deck ticked every box for Emergence Capital to how Coda perfected the growth fly wheel, much to the delight of Madrona’s S. Somasegar to Toast’s ongoing obsession with its customers, and why its investors are obsessed with Toast.

And that’s just the tip of the Extra Crunch Live iceberg.

But there’s plenty more where that came from.

Without further ado, here’s a look at what you can expect in August:

STARTUP ALLEY EDITION:
Edith Yeung (Race Capital) + Laela Sturdy (CapitalG)

August 4 – 12pm PT/3pm ET

REGISTER FOR RACE CAPITAL AND CAPITALG

Check out the Startup Alley companies that will exhibit at TechCrunch Disrupt 2021 in an episode dedicated to the art of the pitch. Expert VCs will give their live feedback to quick elevator pitches. Hear about the hottest new startups and learn a thing or two about how to nail your own pitch.

Image Credits: Race Capital / CapitalG

Jory Bell (Playground Global) + Jen Nwankwo (1910 Genetics)

August 11 – 12pm PT/3pm ET

REGISTER FOR PLAYGROUND GLOBAL AND 1910 GENETICS

After the last year+, VC money has been pouring into biotech companies, and 1910 Genetics is no different. Hear from founder and CEO Jen Nwankwo and investor Jory Bell, from Playground Global, about how to fundraise in the bio/health tech sector and use that financing to your advantage.

Image Credits: Playground Global / 1910 Genetics

Stephanie Zhan (Sequoia Capital) + Nick Fajt (Rec Room)

August 18 – 12pm PT/3pm ET

REGISTER FOR SEQUOIA CAPITAL AND REC ROOM

Sequoia is one of, if not the, biggest names in VC. On this episode of ECL, hear from Sequoia partner Stephanie Zhan and Rec Room CEO Nick Fajt about how the two came together for the startup’s seed round, why Zhan also led the Series A and how it has gone on to raise nearly $150 million in funding.

Image Credits: Rec Room / Sequoia Capital

Aileen Lee (Cowboy Ventures) + Rachel Carlson (Guild Education)

August 25 – 12pm PT/3pm ET

REGISTER FOR COWBOY VENTURES AND GUILD EDUCATION

Aileen Lee is one of the most sought-after and well-respected VCs in the country. Hear the Cowboy Ventures founder and GP talk through her criteria for investment and how Guild Education’s Rachel Carlson met, and even exceeded, that criteria. The founder/investor duo will also give their live feedback on startup pitches from the audience.

Image Credits: Cowboy Ventures / Guild Education

As a reminder, Extra Crunch Live is all about helping founders build better venture-backed businesses. We do that by (duh!) talking to founders and the investors who finance them. Extra Crunch Live also features the ECL Pitch-off, where founders in the audience can come on our virtual stage to pitch their wares to our expert guests and learn how to crush their pitch.

Extra Crunch Live is accessible to anyone and everyone, but accessing the content on-demand is reserved exclusively for Extra Crunch members. If you aren’t yet a member, join here now!

News: Democratic bill would suspend Section 230 protections when social networks boost anti-vax conspiracies

• July 22, 2021
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Two Democratic senators introduced a bill Thursday that would strip away the liability shield that social media platforms hold dear when those companies boost anti-vaccine conspiracies and other kinds of health misinformation. The Health Misinformation Act, introduced by Senators Amy Klobuchar (D-MN) and Ben Ray Luján (D-NM), would create a new carve-out in Section 230

Two Democratic senators introduced a bill Thursday that would strip away the liability shield that social media platforms hold dear when those companies boost anti-vaccine conspiracies and other kinds of health misinformation.

The Health Misinformation Act, introduced by Senators Amy Klobuchar (D-MN) and Ben Ray Luján (D-NM), would create a new carve-out in Section 230 of the Communications Decency Act to hold platforms liable for algorithmically-promoted health misinformation and conspiracies. Platforms rely on Section 230 to protect them from legal liability for the vast amount of user-created content they host.

“For far too long, online platforms have not done enough to protect the health of Americans,” Klobuchar said. “These are some of the biggest, richest companies in the world and they must do more to prevent the spread of deadly vaccine misinformation.”

The bill would specifically alter Section 230’s language to revoke liability protections in the case of “health misinformation that is created or developed through the interactive computer service” if that misinformation is amplified through an algorithm. The proposed exception would only kick in during a declared national public health crisis, like the advent of Covid-19, and wouldn’t apply in normal times. The bill would task the Secretary of the Department of Health and Human Services (HHS) with defining health misinformation.

“Features that are built into technology platforms have contributed to the spread of misinformation and disinformation, with social media platforms incentivizing individuals to share content to get likes, comments, and other positive signals of engagement, which rewards engagement rather than accuracy,” the bill reads.

The bill also makes mention of the “disinformation dozen” — just twelve people, including anti-vaccine activist Robert F. Kennedy Jr. and a grab bag of other conspiracy theorists, who account for a massive swath of the anti-vax misinformation ecosystem. Many of the individuals on the list still openly spread their messaging through social media accounts on Twitter, Facebook and other platforms.

Section 230’s defenders generally view the idea of new carve-outs to the law as dangerous. Because Section 230 is such a foundational piece of the modern internet, enabling everything from Yelp and Reddit to the comment section below this post, they argue that the potential for unforeseen second order effects means the law should be left intact.

But some members of Congress — both Democrats and Republicans — see Section 230 as a valuable lever in their quest to regulate major social media companies. While the White House is pursuing its own path to craft consequences for overgrown tech companies through the Justice Department and the FTC, Biden’s office said earlier this week that the president is “reviewing” Section 230 as well. But as Trump also discovered, weakening Section 230 is a task that only Congress is positioned to accomplish — and even that is still a long shot.

While the new Democratic bill is narrowly targeted as far as proposed changes to Section 230 go, it’s also unlikely to attract bipartisan support.

Republicans are also interest in stripping away some of Big Tech’s liability protections, but generally hold the view that platforms remove too much content rather than too little. Republicans are also more likely to sow misinformation about the Covid-19 vaccines themselves, framing vaccination as a partisan issue. Whether the bill goes anywhere or not, it’s clear that an alarming portion of Americans have no intention of getting vaccinated — even with a much more contagious variant on the rise and colder months on the horizon.

“As COVID-19 cases rise among the unvaccinated, so has the amount of misinformation surrounding vaccines on social media,” Luján said of the proposed changes to Section 230. “Lives are at stake.”

News: Last-mile delivery in Latin America is ready to take off

• July 22, 2021
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Venture capitalists have been investing heavily in last-mile delivery over the past five years on a global scale, but Latin America has lagged behind.

In the United States, same-day and next-day Amazon Prime deliveries have become the de facto standard in e-commerce. People want convenience and instant gratification, evidenced by the fact that an astonishing ~45% of U.S. consumers are Amazon Prime members.

Most major retailers are scrambling to catch up to Amazon by partnering with last-mile delivery startups. Walmart has become a major investor in Cruise for autonomous-vehicle deliveries, and Target acquired Shipt and Deliv last-mile delivery startups to increase its delivery speed. Costco partnered with Instacart for same-day deliveries, and even Domino’s Pizza has jumped in by partnering with Nuro for last-mile delivery using autonomous vehicles.

The holdout: Latin America

Venture capitalists have been investing heavily in last-mile delivery over the past five years on a global scale, but Latin America (LatAm) has lagged behind. Over $11 billion has been invested globally in last-mile logistics over the past decade, but Latin America only saw about $1 billion over the same period (Source: PitchBook and WIND Ventures research).

Within this, only about $300 million was in Spanish-speaking Latin America — a surprisingly small amount for a region that has 110 million more consumers than in the U.S.

Brazil-based Loggi accounts for about 60% of last-mile VC investment in Latin America, but it only operates in Brazil. That leaves major Spanish countries like Mexico, Colombia, Chile and Argentina without a leading independent last-mile logistics company.

In these countries, about 60% of the last-mile delivery market is dominated by small, informal companies or independent drivers using their own trucks. This results in inefficiencies due to a lack of technologies such as route optimization as well as a lack of operating scale. These issues are quickly becoming more pronounced as e-commerce in LatAm has taken off at a compound annual industry growth rate of 16% over the past five years.

Retailers are missing an opportunity to give customers what they want. Customers today expect free, reliable same- or next-day delivery — on-time, all the time, and without damage or theft. All of these are challenging in LatAm. Theft, in particular, is a significant problem, because unprofessional drivers often steal products out for delivery and then sell them for a profit. Cost is a problem, too, because free same- and next-day deliveries are simply not available in many places.

Operational and technological roadblocks abound

Why does Latin America lag when it comes to the last mile? First, traditional LatAm e-commerce delivery involves multiple time-consuming steps: Products are picked up from the retailer, delivered to a cross-dock, distributed to a warehouse, delivered to a second cross-dock, and then finally delivered to the customer.

By comparison, modern delivery operations are much simpler. Products are picked up from the retailer, delivered to a cross-dock, and then delivered directly to the customer. There’s no need for warehousing and an extra pre-warehouse cross-dock.

And those are just the operational challenges. Lack of technology also plays a significant role. Most delivery coordination and routing in LatAm are still done via a spreadsheet or pen and paper.

Dispatchers have to manually pick up a phone to call drivers and dispatch them. In the U.S., computerized optimization algorithms dramatically cut both delivery cost and time by automatically finding the most efficient route (e.g., packing the most deliveries possible on a truck along the route) and automatically dispatching the driver that can most efficiently complete the route based on current location, capacity and experience with the route. These algorithms are almost unheard of in the Latin America retail logistics sector.

Major retail brands are the last-mile catalyst