Daily Archives: August 13, 2021

News: There could be more to the Salesforce+ video streaming service than meets the eye

When Salesforce announced its new business video streaming service called Salesforce+ this week, everyone had a reaction. While not all of it was positive, some company watchers also wondered if there was more to this announcement than meets the eye. If you look closely, the new initiative suggests that Salesforce wants to take a bite

When Salesforce announced its new business video streaming service called Salesforce+ this week, everyone had a reaction. While not all of it was positive, some company watchers also wondered if there was more to this announcement than meets the eye.

If you look closely, the new initiative suggests that Salesforce wants to take a bite out of LinkedIn and other SaaS content platforms and publishers. The video streaming service could be a launch point for a broader content platform, where its partners are producing their own content and using Salesforce+ infrastructure to help them advertise to and cultivate their own customers.

The video streaming service could be a launch point for a broader content platform, where its partners are producing their own content and using Salesforce+ infrastructure to help them advertise to and cultivate their own customers.

The company has, after all, done exactly this sort of thing with its online marketplaces and industry events to great success. Salesforce generated almost $6 billion in its most recent quarterly earnings report. That mostly comes from selling its sales, marketing and service software, not any kind of content production, but it has lots of experience putting on Dreamforce, its massive annual customer event, as well as smaller events throughout the year around the world.

On its face, Salesforce+ is a giant, ambitious and quite expensive content marketing play. The company reportedly has hired a large professional staff to produce and manage the content, and built a broadcasting and production studio designed to produce quality shows in-house. It believes that by launching with content from Dreamforce, its highly successful customer conference, attended by tens of thousands people every year pre-pandemic, it can prime the viewing pump and build audience momentum that way, perhaps even using celebrities as it often does at its events to drive audience. It is less clear about the long-term business goals.

News: Kiddom grabs early revenue amid $35M Series C funding

Kiddom, a platform that offers a digital curriculum that fits the core standards required by states, announced today that it has raised a $35 million Series C round led by Altos Ventures, with participation from Owl Ventures, Khosla Ventures and Outcomes Collective. The financing came nearly three years after Kiddom’s Series B, a $15 million

Kiddom, a platform that offers a digital curriculum that fits the core standards required by states, announced today that it has raised a $35 million Series C round led by Altos Ventures, with participation from Owl Ventures, Khosla Ventures and Outcomes Collective. The financing came nearly three years after Kiddom’s Series B, a $15 million round led by Owl.

The startup didn’t just raise money, it finally learned how to make some. Founded in 2012, Kiddom was able to raise millions without revenue or a clear business model. But Ahsan Rizvi, CEO and co-founder of Kiddom, and Abbas Manjee, chief academic officer and co-founder of Kiddom, think an early focus on adoption instead of monetization was necessary.

“At our Series B, we were definitely not making money,” Manjee said. “But we have a free product that teachers and students use, and the idea was to build an enterprise product on top of it.” It’s a common strategy with bottom up sales. For example, ClassDojo prioritized adoption for years before it finally introduced a paying version of its classroom socialization product.

Kiddom poured most of its capital into research and development into its enterprise product. It has two parts. First, it offers a platform that helps schools integrate all of their different platforms into an interface that tracks student utilization and achievement. Second, it offers that platform alongside the product it’s built up for years, a digital curriculum that fits in with Common Core, a set of math and English academic standards that students are required to learn on a grade by grade level. The latter is perhaps the hardest sell for Kiddom, but also the most lucrative.

Manjee explained vendor approval processes across the States can take a long time, and the stakes are high since decision-makers will only turn to a handful of vendors when it comes to meeting core standards.

A lot of Kiddom’s success depends on if traditional curriculum providers, like the Pearsons and McGraw-Hills of the world, don’t catch up to the digitization of education. Rizvi explained that older companies are “losing market share rapidly” right now. Last year, McGraw-Hill and Cengage terminated a proposed merger that would’ve added some fresh competition to the curriculum world.

The product has resonated with some users. While Kiddom declined to give specifics, it said that new ARR growth grew 2,525% its first year. In 2020 to 2021, ARR growth is on track to be 300%. It said that at least one teacher uses its product in 70% of schools in the United States, a metric that has remained consistent since 2018.

Kiddom’s fresh funding and revenue shows that its years of product development have kept it competitive in the eyes of investors, synergistic unicorns and the stingiest enterprise customer of them all, school districts.

News: Facebook is bringing end-to-end encryption to Messenger calls and Instagram DMs

Facebook has extended the option of using end-to-end encryption for Messenger voice calls and video calls. End-to-end encryption (E2EE) — a security feature that prevents third-parties from eavesdropping on calls and chats — has been available for text conversations on Facebook’s flagship messaging service since 2016. Although the company has faced pressure from governments to

Facebook has extended the option of using end-to-end encryption for Messenger voice calls and video calls.

End-to-end encryption (E2EE) — a security feature that prevents third-parties from eavesdropping on calls and chats — has been available for text conversations on Facebook’s flagship messaging service since 2016. Although the company has faced pressure from governments to roll back its end-to-end encryption plans, Facebook is now extending this protection to both voice and video calls on Messenger, which means that “nobody else, including Facebook, can see or listen to what’s sent or said.”

“End-to-end encryption is already widely used by apps like WhatsApp to keep personal conversations safe from hackers and criminals,” Ruth Kricheli, director of product management for Messenger, said in a blog post on Friday. “It’s becoming the industry standard and works like a lock and key, where just you and the people in the chat or call have access to the conversation.”

Facebook has some other E2EE features in the works, too. It’s planning to start public tests of end-to-end encryption for group chats and calls in Messenger in the coming weeks and is also planning a limited test of E2EE for Instagram direct messages. Those involved in the trial will be able to opt-in to end-to-end encrypted messages and calls for one-on-one conversations carried out on the photo-sharing platform.

Beyond encryption, the social networking giant is also updating its expiring messages feature, which is similar to the ephemeral messages feature available on Facebook-owned WhatsApp. It’s now offering more options for people in the chat to choose the amount of time before all new messages disappear, from as few as five seconds to as long as 24 hours.

“People expect their messaging apps to be secure and private, and with these new features, we’re giving them more control over how private they want their calls and chats to be,” Kricheli added.

News of Facebook ramping up its E2EE rollout plans comes just days after the company changed its privacy settings — again.

 

News: Audio out-of-home advertising is reinventing personalization

Audio out-of-home (AOOH) technology does not request the use of personal data to work effectively. Instead, it focuses on the in-store customer experience.

Paul Brenner
Contributor

Paul Brenner is the chief strategy officer and president of audio out-of-home at Vibenomics, a location-based advertising and audio experience company creating memorable in-store experiences for shoppers.

Do you remember the first time you received a personalized ad? Perhaps you discussed a product with a friend, and the next day, an advertisement for that product popped up on social media. It almost makes you think someone’s listening to your conversations, doesn’t it?

Over time, consumers have become increasingly skeptical about ads like these — and for good reason. A 2019 Accenture study found many customers felt brands communicated in a way they felt was too personal — and 71% of those customers worried how the brands had acquired personal information they hadn’t voluntarily shared.

First-, second- and third-party data make it possible to generate hyperpersonalized ads. But these data collection efforts fall short. Consumers find these methods invasive and a breach of trust — and the data collected is often inaccurate. Google’s third-party cookie is going away, and Apple has made recent changes to its Identifier for Advertisers (IDFA), but no one has clarified the effect of these changes on advertisers’ or marketers’ abilities to reach and remarket consumers.

Many advertisers have begun leveraging AOOH as a more significant part of their brand and marketing strategy to improve reach, frequency and overall business outcomes.

It’s not so much that customers don’t appreciate ads targeting their interests — the concern lies in the methods marketers use to collect data and how consumers can maintain control over what personal data they choose to share. Interestingly, as consumer demands for personalization have increased, according to the 2021 State of Ad Personalization report, half of marketers have yet to invest in ad personalization.

Personalization and data play a vital role in the success of marketing and advertising campaigns today. Brands and their marketing departments must think outside the box and use a more targeted medium not predicated on invading privacy but designed, nevertheless, to provide a unique, personalized experience for in-store shoppers: audio out-of-home (AOOH) technology.

AOOH technology does not request the use of personal data to work effectively. Instead, it focuses on the in-store customer experience. AOOH broadcasts premium music and programmatic advertisements to enrich customer experiences and reach shoppers directly at the point of sale, influencing buying decisions and positively impacting sales.

The current generation of personalization and data collection

In the marketing world, personalization has many nuances. Ultimately, marketers see its goal as providing a unique experience to every individual based on personal preferences and data. The current generation of personalization in marketing is not about collecting cookies or third-party data, merchandising or guesswork.

Today’s personalization focuses instead on delivering the right content, the right offer, the right channel and, most importantly, the right sequence of events generating value exchange between the brand and the consumer.

Although consumers don’t trust superpersonalized ads, they still expect brands to offer a personalized experience. Ninety-one percent of consumers polled in another Accenture study indicated a willingness to shop brands with some form of personalization.

On the other hand, personalization in audio advertising has seen significant growth over the past 15 years, as reflected by a willingness by brands to invest in this medium. A recent report predicts an astonishing 84% growth in digital audio ad revenue for 2025 compared to 2019.

News: Reddit is quietly rolling out a TikTok-like video feed button on iOS

From Instagram’s Reels to Snapchat’s Spotlight, most social media platforms are looking toward the TikTok boom for inspiration. Now, even Reddit, a discussion-based forum, is making short-form video more pronounced on its iOS app. According to Reddit, most iOS users should have a button on their app directly to the right of the search bar

From Instagram’s Reels to Snapchat’s Spotlight, most social media platforms are looking toward the TikTok boom for inspiration. Now, even Reddit, a discussion-based forum, is making short-form video more pronounced on its iOS app.

According to Reddit, most iOS users should have a button on their app directly to the right of the search bar — when tapped, it will show a stream of videos in a TikTok-like configuration. When presented with a video, (which shows the poster who uploaded it and the subreddit it’s from), users can upvote or downvote, comment, gift an award or share it. Like TikTok, users can swipe up to see another video, feeding content from subreddits the user is subscribed to, as well as related ones. For instance, if you’re subscribed to r/printmaking, you might see content from r/pottery or r/bookbinding.

The user interface of the videos isn’t new — Reddit has been experimenting with this format over the last year. But before, this manner of watching Reddit videos was only accessible by tapping on a video while scrolling through your feed — rather than promoting discovery of other communities, the first several videos recommended would be from the same subreddit.

Images of new Reddit features

Image Credits: Reddit, screenshots by TechCrunch

“Reddit’s mission is to bring community and belonging to everyone in the world, and subsequently, Reddit’s video team’s mission is to bring community through video,” a Reddit spokesperson told TechCrunch, about the new addition. “Over the course of the last year, our goal was to build a unified video player, and re-envision the player interface to match what users (new and old) expect when it comes to an in-app video player — especially commenting, viewing, engaging and discovering new content and communities through video,” they noted.

Reddit doesn’t yet have a timeline for when the feature will roll out to everyone, but confirmed that this icon first appeared for some users in late July and has continued to roll out to almost all iOS users. But by placing a broader, yet still personalized video feed on the home screen, Reddit is signaling a growing curiosity in short form video. In December 2020, Reddit acquired Dubsmash, a Brooklyn-via-Berlin-based TikTok competitor. The terms of the deals were undisclosed, but Facebook and Snap also reportedly showed interest in the platform, which hit 1 billion monthly views in January 2020.

Reddit declined to comment on whether or not its new video player is using an algorithm to promote discovery of new subreddits based on user activity. However, a Reddit spokesperson confirmed that the company will use Dubsmash’s technology to develop other features down the road, though not for this particular product, they said.

Reddit first launched its native video platform in 2017, which allows users to upload MP4 and MOV files to the site. Then, in August 2019, it launched RPAN (Reddit Public Access Network), which lets people livestream to selected subreddits — the most popular livestreams are promoted across the platform. Reddit currently attracts 50 million daily active visitors and hosts 100,000 active subreddits.

News: Employee talent predictor retrain.ai raised another $7M, adds Splunk as strategic investor

Automation will displace 85 million jobs while simultaneously creating 97 million new jobs by 2025, according to the World Economic Forum. Although that sounds like good news, the hard reality is that millions of people will have to retrain in the jobs of the future. A number of startups are addressing these problems of employee

Automation will displace 85 million jobs while simultaneously creating 97 million new jobs by 2025, according to the World Economic Forum. Although that sounds like good news, the hard reality is that millions of people will have to retrain in the jobs of the future.

A number of startups are addressing these problems of employee skills, so looking at talent development, neuroscience-based assessments, and prediction technologies for staffing. These include Pymetrics (raised $56.6M), Eightfold (raised $396.8M) and EmPath (raised $1M). But this sector is by no means done yet.

retrain.ai bills itself as a ‘Talent Intelligence Platform’ and it’s now closed an additional $7 million from its current investors Square Peg, Hetz Ventures, TechAviv, .406 Ventures and Schusterman Family Investments. It’s also now added Splunk Ventures as a strategic investor. The new round of funding takes its total raised to $20 million.

retrain.ai says it uses AI and machine learning to help governments and organizations retrain and upskill talent for jobs of the future, enable diversity initiatives, and that it helps employees and jobseekers manage their careers.
 
Dr. Shay David, Co-Founder and CEO of retrain.ai said: “We are thrilled to have Splunk Ventures join us on this exciting journey as we use the power of data to solve the widening skills gap in the global labor markets.”

The company says it helps companies tackle future workforce strategies by “analyzing millions of data sources to understand the demand and supply of skill sets.”
 
retrain.ai new funding will be used for U.S. expansion, hiring talent and product development.

News: What happens when Wall Street falls out of love with your sector?

Either the neoinsurance companies’ long-term models will come to fruition thanks to large cash balances providing runway to prove their point, or Wall Street is correct — they were always overvalued.

It’s been an awful week for public neoinsurance companies. A subsector of the larger insurtech world, neoinsurance providers tackled a number of insurance categories using a blend of modern app design and machine learning in hopes of creating more user-friendly and profitable insurance products.

The idea proved attractive to venture capitalists, who invested in a host of companies working on the problem space. And it went so well that in the last year or so we saw a number of U.S. neoinsurance companies go public.


The Exchange explores startups, markets and money.

Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.


That’s the extent of the good news. Since the IPOs and SPAC combinations that took MetroMile, Hippo, Lemonade and Root public, the group has seen their values either decline sharply below their initial trading prices or far under their recent highs.

We’ve covered some of these declines in recent weeks and wondered if we should be worried about neoinsurance valuations and how they may impact startups. This morning, we’re examining what happened to neoinsurance companies this week, why, and which startups could be impacted.

Grounding our work is an interview that The Exchange held with Root CEO Alex Timm in the wake of his company’s earnings report. It’s a pretty illustrative example of where the sector finds itself today: Flush, busy and somewhat unloved.

Recent declines

Measuring from last Friday’s closing price to yesterday’s, here’s a digest of where the market is for public neoinsurance companies:

  • Hippo: -20%
  • MetroMile: -30%
  • Root: -23%
  • Lemonade: -6%

Declines from recent highs are more extreme for several of the now-public neoinsurance companies, something that we discussed last Friday. The point we made then has only become more acute. We could add names to this list, like Oscar Health, but health insurance feels sufficiently distinct from the above companies that I don’t want to muddy the waters.

What’s new in all of this is that the value of some of these companies is getting close to their cash balance. Or more simply, they are trending toward basement-level enterprise values. Here’s the data:

News: Argentine fintech Ualá lands $350M at a $2.45B valuation in SoftBank, Tencent-led round

The dollars keep flowing into Latin America. Today, Argentine personal finance management app Ualá announced it has raised $350 million in a Series D round at a post-money valuation of $2.45 billion. SoftBank Latin America Fund and affiliates of China-based Tencent co-led the round, which included participation from a slew of existing backers, including funds

The dollars keep flowing into Latin America.

Today, Argentine personal finance management app Ualá announced it has raised $350 million in a Series D round at a post-money valuation of $2.45 billion.

SoftBank Latin America Fund and affiliates of China-based Tencent co-led the round, which included participation from a slew of existing backers, including funds managed by Soros Fund Management LLC, funds managed by affiliates of Goldman Sachs Asset Management, Ribbit Capital, Greyhound Capital, Monashees and Endeavor Catalyst. New funds, such as D1 Capital Partners and 166 2nd, also put money in the round in addition to angel investors such as Jacqueline Reses and Isaac Lee.

The round is believed to be the largest private raise ever by an Argentinian company and brings Uala’s total raised to $544 million since its 2017 inception.

Founder and CEO Pierpaolo Barbieri, a Buenos Aires native and Harvard University graduate, has said his ambition was to create a platform that would bring all financial services into one app linked to one card.

Today, Ualá says it has developed “a complete financial ecosystem,” including universal accounts, a global Mastercard card, bill payment options, investment products, personal loans, installments (BNPL) and insurance. It has also launched merchant acquiring, Ualá Bis, a solution for entrepreneurs and merchants that allows selling through a payment link or mobile point-of-sales (mPOS). 

The startup has issued more than 3.5 million cards in its home country and in Mexico, where it launched operations last year. The company claims that more than 22% of 18 to 25-year-olds in Argentina have a Ualá card. At the time of its Series C raise in November 2019, it had issued 1.3 million cards.

Image Credits: Ualá

Over 1 million users invest in the mutual fund available on the Ualá app, which the company claims is the second largest mutual fund in Argentina in number of participants. The company, which has aimed to provide more financial transparency and inclusion in the region, says that 65% of its users had no credit history prior to downloading the app.

Ualá plans to use its new capital to continue expanding within Latin America, develop new business verticals and do some hiring, with the plan of having 1,500 employees by year’s end. It currently has more than 1,000 employees.

“We are most impressed by Ualá’s ambition and execution. Our investment will propel the next stage of their vision, furthering a regional ecosystem that can make financial services more accessible and transparent across LatAm,” said Marcelo Claure, CEO of SoftBank Group International and COO of SoftBank Group, in a written statement.

News: Don’t give your weed dealer all your data

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines. Our beloved Danny was back, joining Natasha and Alex and Grace and Chris to chat through yet another incredibly busy week. As a window into our process, every week we tell one another that the next week we’ll cut the show down to

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Our beloved Danny was back, joining Natasha and Alex and Grace and Chris to chat through yet another incredibly busy week. As a window into our process, every week we tell one another that the next week we’ll cut the show down to size. Then the week is so interesting that we end up cutting a lot of news, but also keeping a lot of news. The chaotic process is a work in progress, but it means that the end result is always what we decided we can’t not talk about.

Here’s what we got into:

Equity drops every Monday at 7:00 a.m. PDT, Wednesday, and Friday morning at 7:00 a.m. PDT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

News: Pushing for an ‘apolitical’ workplace is immoral (and unrealistic)

The personal is political, and companies are made up of people, not products.

Mandy Andress
Contributor

Mandy Andress is the chief information security officer at Elastic, an enterprise search company, and has more than 25 years of experience in information risk management and security.

“We are not a social impact company. No more societal and political discussions on our company account.”

That’s been the recent message from a number of tech CEOs who have declared that they want the companies they run to be “apolitical” and employees to focus solely on the goals of growing revenue and driving profit.

That’s left me wondering: What might that mean for me as an LGBTQIA+ person in the workplace?

I don’t consider myself a particularly political person. I just want to do a good job, be a supportive team member and leader, and play a valuable role in the organization that employs me. I’m lucky to work as chief information security officer at Elastic, a software company that prioritizes inclusivity and acceptance for all employees, telling us to come as we are.

When we consider who gets to define what’s political or not, we need to think hard about the level of privilege they enjoy — and whom they might be excluding from everyday workplace conversations.

But what if things were different?

If I worked for a different company, would being a gay woman who’s out at work make me “political?” Would talking with colleagues about my home life and my family be considered a political act?

It would all depend, I guess, on whom you asked. I’m well aware that, to certain people, being out in the workforce might be considered political — but I’m just being open and transparent about who I am.

Staying in the shadows

When we consider who gets to define what’s political or not, we need to think hard about the level of privilege they enjoy — and whom they might be excluding from everyday workplace conversations.

Managers and executives who insist on an apolitical workplace are inevitably asking some employees, particularly those belonging to historically underrepresented groups, to stay in the shadows, to keep quiet about who they are.

I’ve been there and I’ve felt the impact firsthand. Earlier in my career, I hid my sexual orientation. I wore a virtual mask at work, and it was exhausting and stressful to have to worry about who knew my “secret” and what might happen if the truth got out.

It was also a significant distraction from doing my job. Even if bosses aren’t concerned about the emotional impact of mandating an apolitical workplace on their employees, they might at the very least consider the productivity impact.

A recent survey from online careers site Glassdoor found that LGBTQ+ employees are less satisfied at work compared to their non-LGBTQ+ counterparts, and that while certain companies and industries are highly rated by LGBTQ+ employees, many others still have considerable progress to make.

Since it’s no secret that less satisfied employees are likely to be less engaged, that could potentially send corporate metrics that focus on productivity, performance and retention into a nosedive.

Conversely, a 2020 report published by strategy firm McKinsey suggests that diversity helps organizations increase innovation, reconsider entrenched ways of thinking and improve financial performance — but also stresses that they only enjoy these benefits if all employees feel a sense of inclusion. The study’s authors define this as “the degree to which an individual feels that their authentic selves are welcomed at work, enabling them to contribute in a meaningful and deliberate manner.”

The firm’s survey of almost 2,000 employees, across a wide range of companies and industries worldwide, shows clearly that women, respondents from ethnic and racial minorities, and people who identify as LGBTQ+ still encounter additional challenges to feeling included.

Working from home

On top of all this, it’s not realistic to ask people to leave their personal lives and beliefs at home after huge numbers of employees began working from home on a full-time basis amid the pandemic, many for the first time ever. If strict lines between their personal and professional lives were clearer for some employees pre-COVID, those days are almost certainly over.

While the pandemic forced many organizations to restructure the workplace, I’ve been working in a fully remote, distributed environment since joining Elastic in 2018. This has shaped how I manage my team because every individual has their own perceptions and experiences, all of which can be more challenging to identify in a distributed workforce. In particular, I’ve learned that building an inclusive, high-functioning team starts with empathetic leadership.

For me, it’s all about being present, asking questions and not making assumptions. When everyone is working in their own environment, it’s easy to postulate about how someone’s feeling about their work or a particular project, because that’s human nature — but the danger here is that we jump to the negative. Staying curious and seeking to understand is key at all times.

Above all, it’s about inclusion and acceptance. Giving everyone the freedom to express what’s on their mind. That’s how everyone should feel about their workplace, and it’s the environment I will continue to work to foster for my own team — because oftentimes, the personal is political, and companies are made up of people, not products.

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