Monthly Archives: August 2021

News: New Zealand-based student wellbeing platform Komodo raises $1.8M NZD

Adolescence is a turbulent period and its challenges are being exacerbated by the COVID-19 pandemic. Even in the best of times, teens dealing with personal and school problems might have trouble talking about them. New Zealand-based startup Komodo is a student wellbeing platform that wants to give students a place to communicate with staff, while

Adolescence is a turbulent period and its challenges are being exacerbated by the COVID-19 pandemic. Even in the best of times, teens dealing with personal and school problems might have trouble talking about them. New Zealand-based startup Komodo is a student wellbeing platform that wants to give students a place to communicate with staff, while providing schools with data to help them spot and address issues like depression or bullying.

Founded in 2018 by Chris Bacon, Matt Goodson and Jack Wood, the startup announced today it has raised $1.8 million NZD (about $1.26 million) in seed funding led by Folklore Ventures, with participation from Icehouse Ventures and Flying Fox Ventures. Individual investors included employee engagement platform Culture Amp co-founder Rod Hamilton; Chloe Hamman, Culture Amp’s director of people science; leaders from learning platform Education Perfect; and Kristi Grant, the director of people experience at Auror.

Some of Komodo’s clients and partners in New Zealand and Australia include Marist College Ashgrove in Queensland; St. Andrew’s College in Christchurch; the Australian Boarding Schools Association (ABSA); Independent Schools of New Zealand; and the Council of British International Schools.

Komodo was originally created to monitor the wellbeing of youth athletes, based on research Bacon performed while earning a PhD at the University of Canterbury. A lot of its clients were schools, and that’s when the team began to expand Komodo’s scope.

“The draw for us was witnessing specific examples,” Wood told TechCrunch. “We had schools coming back to us saying ‘we’ve got a kid that’s been bullied for the past three months who hasn’t even remotely felt confident to approach a staff member and start talking about it. We’ve finally seen that come up in Komodo and they feel happy they have a confidential channel to voice that concern.’”

A photo of Komodo Wellbeing co-founders Jack Wood and Chris Bacon

Komodo co-founders Jack Wood and Chris Bacon

Komodo has a web application and a mobile app, which is what most students use. The platform can be customized by schools and includes psychologist-designed surveys and questions about topics like how students feel about going to school, socialization and relationships or major transitions like starting high school or preparing for university. The amount of time students check into Komodo depends on their school. At some it’s once a week, others once every two weeks or month. Schools use the platform differently based on their environment—for example, if they’re learning remotely, they may do more frequent check-ins.

For schools, data collected from surveys can help them see trends emerge and catch potential problems earlier, like cyberbullying. Before implementing Komodo, its founders say some schools did wellbeing surveys a few times per year, but many of them relied on staff and teachers’ intuition—for example, if a student who is typically outgoing suddenly becomes withdrawn. Komodo gives them a more efficient way to identify and address issues, though Wood and Bacon emphasize that it’s not meant to replace person-to-person interactions.

“Ultimately our bigger vision is facilitating and getting wellbeing support to students as early as possible,” said Bacon. The founders have spent a lot of time talking with Culture Amp’s Hamilton “about how it’s really important that the individuals you’re providing data to can actually understand and use it on a regular basis,” he added. “The key part for us to provide visibility and psychologists who can come in and support [school staff] even more.”

Komodo’s seed funding will be used to add more psychologists to its in-house team, develop the platform and expand into more schools in Australia and New Zealand before other markets, including the United States.

 

News: Foreign investors have a bigger role to play in growing Latin America’s startup ecosystem

There has been significant hype around Latin America’s startup success. For good reason, too: Startups have raised $9.3 billion in just the first half of 2021, almost double the amount in all of 2020.

Ricardo Sangion
Contributor

Ricardo Sangion previously launched operations for Facebook and Pinterest in Latin America, before joining operator-led global investors TheVentureCity as partner for first-ticket investments in the region.

There has been significant hype around Latin America’s startup success. For good reason, too: Startups have raised $9.3 billion in just the first half of 2021, almost double the amount in all of 2020, and mega-rounds are a growing trend.

But while the industry hails the rise of the region’s ecosystem and its growing fleet of unicorns, Latin America’s startup story has a far longer past. And it’s one we should keep in mind as entrepreneurs and investors around the world forge the region’s future.

People often ask me: How are consumers different in Brazil? How does the Peruvian market behave compared to the United States? These questions don’t really see each country for its inherent value, but instead gear people up to expect the unexpected from a historically economically disadvantaged region.

In fact, the evolution of business shares far more similarities across countries than we might expect. Latin America’s market has evolved over a very long time — as long as Silicon Valley and any other hub. This region has a global outlook, spectacular universities, a diverse population and an army of entrepreneurs.

It’s important for investors outside of Latin America to get involved in fundraising at earlier stages, when founders need extra support from everyone around.

That’s why the unicorns and megadeals should come as no surprise: They’re the natural evolution of the ecosystem, of more capital generating more success after years of hard work.

As Latin America has grown, competition has grown even more intense in the United States. VCs have more money than ever, and it’s getting increasingly expensive to invest in North America. So they’re looking to diversify their investments with high-potential opportunities abroad. Big funds are now dedicating resources to exclusively targeting Latin America, from SoftBank creating a region-specific fund, to Sequoia saying it will pay more attention to the region.

These incoming investors must bring more than money to ensure that entrepreneurship continues to grow in a healthy manner, rather than set it off balance. Investors should bring a local strategy that makes them an asset to Latin America’s startup ecosystem.

Investors should look for younger markets

Most Latin American companies reaching unicorn status and going public now were started around 2012. This is not very different from the timeline of businesses in other markets such as the United States. For instance, e-commerce giant MercadoLibre launched in Argentina around the time eBay was emerging.

What this tells us is that foreign investors would do well to keep a sharp eye on emerging opportunities beyond heavily covered markets like Brazil and Mexico. There is a huge opportunity to do what local investors did in Brazil and Mexico years ago, and play a significant role in the next chapter of countries with blossoming markets like Colombia, Peru or Uruguay.

U.S. investors remain shy

The amount of VC capital being funneled into Latin American startups has surged since 2017, with angel investment close behind. However, much of this investment comes from local and regional investors. Every top university in Brazil has a pool of angels. Investors in the Andean region cover Peru, Chile and Colombia. If today’s ecosystem is flourishing, it’s largely because native investors are lighting the spark.

Meanwhile, U.S. investor presence at the early stages is still low and risk averse. It’s much harder for a pre-seed or seed startup to get foreign investor interest than when they’ve already reached Series A or B. Investors also tend to come in on an ad hoc basis or as outliers brought about by a mutual contact. Foreign investors are the exception, not the rule.

It’s important for investors outside of Latin America to get involved in fundraising at earlier stages, when founders need extra support from everyone around. Investors should be pursuing a long-term strategy that will bring more consistency to the local ecosystem as a whole.

Money is not enough, investors should bring dedicated resources

Your contribution as an investor is largely about the resources you can offer. That’s especially challenging for a foreigner who has less of an understanding of the local industry and lacks a network and people on the ground.

While investors may say their your regular value offering is enough — network and U.S. customers — in truth, this won’t necessarily be of much use. Your hiring network might not be ideal for a Latin American company, and your thorough understanding of the U.S. market might not reflect developments in Latin America.

Remember that the region has a plethora of VC organizations who have worked with local startups over the course of a decade. Latin America is a very welcoming and open market, and local investors and accelerators will happily work with foreign investors, including in deal-sharing opportunities.

It’s crucial to create incentives within the ecosystem, which — like in the United States — largely means matching founders with unique opportunities. In North America, this often happens organically, because people are on the ground and actively engaged with what’s happening in the region, from networking events, to awards, and grants and partnership opportunities.

To create this in Latin America, foreign investors need to dedicate a team and money to their regional commitments. They will have to understand the local industry and be available to mentor founders with diverse perspectives.

In my experience helping EA, Pinterest and Facebook land in Latin America, we always had someone on the ground or working remotely but fully dedicated to the region. We had people focused on localizing the product, and we had research teams studying similarities and differences in user behavior. That’s how corporations land their products; it’s how VCs should land their money.

Only disrupt when it adds value

The idea is for foreign investors to strike a balance locally while creating disruptions when it helps startups look outward rather than attempting to overhaul steady, positive internal growth. That can mean encouraging companies to incorporate in the United States to make it easier for investors from anywhere to invest or preparing the company to go global. Local investors can help investors new to the region understand the balance of things that should or shouldn’t be disrupted.

Don’t be surprised when Latin America’s apparent “boom” starts happening in other emerging markets like Africa and Asia. This isn’t about a secret hack coming in from the outside. It’s just about creating the right environment for local talent to flourish and ensuring it maintains healthy growth.

News: Zoom announces first startups receiving funding from $100M investment fund

For more than a year now, Zoom has been on a mission to transform from an application into a platform. To that end it made three announcements last year: Zoom Apps development tools, the Zoom Apps marketplace and a $100 million development fund to invest in some of the more promising startups building tools on

For more than a year now, Zoom has been on a mission to transform from an application into a platform. To that end it made three announcements last year: Zoom Apps development tools, the Zoom Apps marketplace and a $100 million development fund to invest in some of the more promising startups building tools on top of their platform. Today, at the closing bell, the company announced it has made its first round of investments.

Ross Mayfield, product lead for Zoom Apps and integrations spoke to TechCrunch about the round of investments. “We’re in the process of creating this ecosystem. We felt it important, particularly to focus on the seed stage and A stage of partnering with entrepreneurs to create great things on this platform. And I think what you see in the first batch of more than a dozen investments is representative of something that’s going to be a significant ongoing undertaking,” he explained.

He said while they aren’t announcing exact investment amounts, they are writing checks for between $250,000 and $2.5 million. They are teaming with other investment partners, rather than leading the rounds, but that doesn’t mean they aren’t working with these startups using internal resources for advice and executive backing, beyond the money.

“Every one of these investments has an executive or senior sponsor within the company. So there’s another person inside that knows the lay of the land, can help them advance and spend more personal time with them,” Mayfield said.

The company is also running several Zoom chat channels for the startups receiving investments to learn from one another and the Zoom Apps team. “We have a shared chat channel between the startup and my team. We have a channel called Announcements and a channel called Help, and another one that the startups created called Community,” he said.

Every week they use these channels to hold a developer office hour, business office hour which Mayfield runs, and then there’s a community hour where the startups can gather and talk amongst themselves about whatever they want.

Among the specific categories receiving funding are collaboration and productivity, community and charity, DE&I and PeopleOps, and gaming and entertainment. In the collaboration and productivity category, Warmly is a sales tool that provides background and information about each person participating in the meeting ahead of time, while allowing the meeting organizer to create customized Zoom backgrounds for each event.

Another is Fathom, which alleviates the need to take notes during a meeting, but it’s more than recording and transcription. “It gives you this really simple interface where you can just tag moments. And then, as a result you have this transcript of the video recording, and you can click on those tagged moments as highlights, and then share a clip of the meeting highlights to Salesforce, Slack and other tools,” Mayfield said.

Pledge enables individuals or organizations to request and collect donations inside a Zoom meeting instantly, and Canvas is a hiring and interview tool that helps companies build diverse teams with data that helps them set and meet DEI goals.

These and the other companies represent the first tranche of investments from this fund, and Mayfield says the company intends to continue looking for startups using the Zoom platform to build their startup or integrate with Zoom.

He says that every company starts as a feature, then becomes a product and then aspires to be a line of products. The trick is getting there.  The goal of the investment program and the entire set of Zoom Apps tools is about helping these companies take the first step.

“The art of being an entrepreneur is working with that risk in the absence of resources and pushing at the frontier of what you know.” Zoom is trying to be a role model, a mentor and an investor on that journey.

News: Prive has raised $1.7 million to build a more configurable e-commerce subscription platform

Prive, a months-old, San Francisco-based startup founded by two former Uber product managers, just raised $1.7 million in pre-seed funding to create what it describes as a far more customizable e-commerce subscriptions platform for D2C brands. The round was co-led by Patrick Chung and Brandon Farwell at XFund and Ben Ling from Bling Capital, with

Prive, a months-old, San Francisco-based startup founded by two former Uber product managers, just raised $1.7 million in pre-seed funding to create what it describes as a far more customizable e-commerce subscriptions platform for D2C brands.

The round was co-led by Patrick Chung and Brandon Farwell at XFund and Ben Ling from Bling Capital, with participation from Defy Partners, Halogen Ventures, and Uber executives.

Founded by Claudia Laurie and Alex Craciun — who both spent two-and-a-half years at Uber and decided, based on their learnings about pricing and incentives, to leave the company earlier this year —  Prive aims to better enable small retailers to compete with behemoths like Amazon.

The broad idea is that by plugging into existing APIs from Shopify and other e-commerce platforms, Prive can form an opinion that it sells to merchants about what customers tend to buy on a recurrent basis. Maybe it sees that people who buy razors also tend to buy toothbrushes on a similar cadence, for example. It passes that information along, then helps the brand create more customized, and flexible, offerings so that their shoppers are presented with items they might, as well as can more easily cancel items

“The market opportunity is huge, and the existing [e-commerce subscription] tools are just scratching the surface,” notes Laurie. Indeed, according to the group eMarketer,  subscription e-commerce sales have grown 41% from the start of the coronavirus pandemic, and it foresees that 3% of US retail e-commerce sales will come from subscriptions this year, totaling $27.67 billion. That’s up from $10 billion in just two years’ time.

Of course, a lot has yet to be built, which is where the pre-seed funding comes in. Right now, Prive is a seven-person team with some serious competition, namely from Recharge, a seven-year-old, Santa Monica, Calif.-based subscription e-commerce company that in May raised $277 million in growth capital at a post-money valuation of $2.1 billion. As of that announcement, Recharge had roughly 330 employees and was fueling the subscription service for what it said was 15,000 merchants and 20 million subscribers worldwide.

Other rivals include nine-year-old, Bold Commerce (it has raised $44 million altogether), and 10-year-old, Chargebee, which has raised around $220 million over the years, according to Crunchbase data.

“E-commerce ‘subscription’ is an incredibly hot buzzword,” acknowledges Craciun, but he also thinks the today’s current product offerings are just scratching the service.

Clearly, investors are willing to gamble that he’s right — and that Prive could be the team to prove it.

“Current tools can create more headaches than they actually solve,” says Craciun. “There is a lot of rigidity in today’s subscriptions that makes it very difficult to identify the right recurring mix of offerings. We’re here to break down that mental model.”

News: Lessons from COVID: Flexible funding is a must for alternative lenders

Alternative lending is any lending that occurs outside of a conventional financial institution. These lenders offer different types of loans such as lines of credit, microloans and equipment financing.

Archita Bhandari
Contributor

Archita Bhandari is a senior associate at FischerJordan, a multidisciplinary consulting firm, helping businesses achieve uncommon clarity, gain control and win in the marketplace.

Deeba Goyal
Contributor

Deeba Goyal is an analyst at FischerJordan, helping organizations to exchange complexity for clarity by combining strategy, analytics and technology practices.

Rachael runs a bakery in New York. She set up shop in 2010 with her personal savings and contributions from family and friends, and the business has grown. But Rachael now needs additional financing to open another store. So how does she finance her expansion plans?

Because of stringent requirements, extensive application processes and long turnaround times, small and medium-sized businesses (SMBs) like Rachael’s bakery seldom qualify for traditional bank loans. That’s when alternative lenders — who offer short and easy applications, flexible underwriting and quick turnaround times — come to the rescue.

Alternative lending is any lending that occurs outside of a conventional financial institution. These kinds of lenders offer different types of loans such as lines of credit, microloans and equipment financing, and they use technology to process and underwrite applications quickly. However, given their flexible requirements, they usually charge higher interest rates than traditional lenders.

Securitization is another cost-effective option for raising debt. Lenders can pool the loans they have extended and segregate them into tranches based on credit risk, principal amount and time period.

But how do these lenders raise funds to bridge the financing gap for SMBs?

As with all businesses, these firms have two major sources of capital: equity and debt. Alternative lenders typically raise equity funding from venture capital, private equity firms or IPOs, and their debt capital is typically raised from sources such as traditional asset-based bank lending, corporate debt and securitizations.

According to Naren Nayak, SVP and treasurer of Credibly, equity generally constitutes 5% to 25% of capital for alternative lenders, while debt can be between 75% and 95%. “A third source of capital or funding is also available to alternative lenders — whole loan sales — whereby the loans (or merchant cash advance receivables) are sold to institutions on a forward flow basis. This is a “balance-sheet light” funding solution and an efficient way to transfer credit risk for lenders,” he said.

Let’s take a look at each of these options in detail.

Funding sources for alternative lenders.

Image Credits: FischerJordan

Equity capital

Venture capital or private equity funding is one of the major sources of financing for alternative lenders. The alternative lending industry is said to be a “gold mine” for venture capital investments. While it is difficult for such companies to receive credit from traditional banks because of their stringent requirements in the initial stages, once the founders have shown a commitment by investing their own money, VC and PE firms usually step in.

However, VC and PE firms can be expensive sources of capital — their investment dilutes the ownership and control in the company. Plus, obtaining venture capital is a long, involved and competitive process.

Alternative lenders that have achieved good growth rates and scaled their operations have another option: An IPO lets them quickly raise large amounts of money while providing a lucrative exit for early investors.

News: Telegram tops 1 billion downloads

Popular instant messaging app Telegram has joined the elite club of apps that have been downloaded over 1 billion times globally, according to Sensor Tower. The Dubai-headquartered app, which was launched in late 2013, surpassed the milestone on Friday, the mobile insight firm told TechCrunch. As is the case with the app’s chief rival, WhatsApp,

Popular instant messaging app Telegram has joined the elite club of apps that have been downloaded over 1 billion times globally, according to Sensor Tower.

The Dubai-headquartered app, which was launched in late 2013, surpassed the milestone on Friday, the mobile insight firm told TechCrunch. As is the case with the app’s chief rival, WhatsApp, India is the largest market for Telegram. The world’s second largest internet market represents approximately 22% of its lifetime installs, Sensor Tower said.

“[India is] followed by Russia and Indonesia, which represent about 10% and 8% of [all installs], respectively. The app’s installs accelerated in 2021, reaching about 214.7 million installs in the first half of 2021, up 61% year-over-year from 133 million in H1 2020,” it added.

It’s worth noting that the number of installs doesn’t equate to the app’s active userbase. Telegram had about 500 million monthly active users as of early this year, for instance. But the surge in downloads, which coincides with WhatsApp’s poor handling of relaying its privacy policies to its massive userbase, nonetheless suggests that Telegram has enjoyed some additional attention in recent quarters.

Telegram, which earlier this year raised over $1 billion, is the 15th app worldwide to have been downloaded 1 billion times or more, Sensor Tower told TechCrunch. Other apps on the list include WhatsApp, Messenger, Facebook, Instagram, Snapchat, Spotify, and Netflix, according to Sensor Tower. (Mobile research firms don’t track the installs of most Google apps that come pre-installed on Android devices.)

Telegram didn’t immediately respond to a request for comment.

News: Luminate aims to make hair loss from chemotherapy a thing of the past

Hair loss resulting from chemotherapy is one of the most recognizable side effects in all of medicine, and for many is an unwanted public announcement of their condition and treatment. Luminate Medical may have a solution in a medical wearable that prevents the chemical cocktail from tainting hair follicles, preventing the worst of the loss

Hair loss resulting from chemotherapy is one of the most recognizable side effects in all of medicine, and for many is an unwanted public announcement of their condition and treatment. Luminate Medical may have a solution in a medical wearable that prevents the chemical cocktail from tainting hair follicles, preventing the worst of the loss and perhaps relegating this highly visible condition to the past.

When Luminate CEO Aaron Hannon and his co-founder Bárbara Oliveira were asking patients and doctors about areas of cancer treatment that they could perhaps innovate in, “we were just astonished at how much hair loss dominated the conversation,” said Hannon. “So from then on out we’ve just been laser focused on making that something that doesn’t exist any more.”

When a patient is undergoing chemotherapy, the cancer-inhibiting drugs course through their entire body — anywhere the blood goes. This has a variety of side effects, like weakness and nausea, and on a longer time scale hair loss occurs as the substances affect the follicles. Luminate’s solution, developed in partnership with the National University of Ireland Galway, is to prevent the blood from reaching those cells in the first place.

Image of a woman wearing the Luminate headset.

Image Credits: Luminate

The device that effects this is a sort of mechanized compression garment for the head. If that sounds a bit sinister, don’t worry — the pressure comes from air bladders and pads pressing against the scalp, not screws or plates; Hannon says that it isn’t uncomfortable and pressure is carefully monitored.

There’s also no risk of damage from lack of blood flow in those cells. “Compression therapy has been really well studied,” he said. “There are years of literature around how long you can apply these therapies without damaging the cells. There’s a certain amount of mechanical engineering involved in making it both comfortable and effective.”

The patient wears the cap during and after the whole chemo session. By restricting blood flow to the skin of the scalp only, it allows the drugs to flow unimpeded to wherever the tumor or cancer site is while saving the hair follicles from damage.

Tests have been done on animals, which saw hair retention of around 80 percent with no adverse effects — and while full human trials are something that will need some time and approval to set up, initial tests of the headset’s bloodflow-blocking effects on healthy patients showed that it works exactly as expected on people as well.

“We’re really excited about the efficacy of this therapy because it works with lots of hair types,” said Hannon. That’s a real consideration, since a tech that only worked with short hair, straight hair, or some other subset of hairstyles would exclude far too many people.

Luminate's app showing how long is left in therapy for the user.

Image Credits: Luminate / Wild Island Pictures

As for competition, although there are some new treatments that cool the scalp instead of compressing it, Hannon noted that the most money is spent by far on wigs. An average of a thousand dollars per patient who opts for a wig means there’s considerable leeway for a device in that neighborhood.

Although hair loss is considered a medical condition by many insurance companies and other methods of reimbursement, and wigs are often covered, it will take time and lots of evidence to get Luminate’s device approved for those processes. But the team is confident that at around $1,500, the device is within the means of many as long as other costs are being picked up by insurance. People do, after all, spend that much and more not just on wigs but on other hair retention products and methods. If there was a checkbox for “don’t lose hair” on the chemo forms with a $1,500 price tag, a whole lot of people would check it without a second thought.

Cofounders Bárbara Oliveira (left) and Aaron Hannon.

Image Credits: Luminate

Ultimately, however, Luminate wants to be able to offer the device also to those who can’t afford the cost out of pocket, so they are progressing towards FDA approval and a U.S. launch, with Europe and others to come.

 

So far Luminate, just graduating from Y Combinator’s Summer 2021 batch, has been lucky enough to operate on funds provided through grants from the Irish government, which are of course non-dilutive. While more capital will almost certainly be required come time for scaling and international launch, right now the team is focused on getting the device into the hands (and onto the heads) of its first set of patients.

News: TikTok owner ByteDance buys a top virtual reality hardware startup

TikTok parent company ByteDance seem to be looking to one-up Facebook anywhere it can. After taking over the mantle of most-downloaded social media app in the world with TikTok, ByteDance is coming for Facebook’s moonshot, buying up its own virtual reality headset maker called Pico. The deal first reported on by Bloomberg last week was

TikTok parent company ByteDance seem to be looking to one-up Facebook anywhere it can. After taking over the mantle of most-downloaded social media app in the world with TikTok, ByteDance is coming for Facebook’s moonshot, buying up its own virtual reality headset maker called Pico.

The deal first reported on by Bloomberg last week was confirmed by the company on Monday, though ByteDance didn’t disclose a price tag for the deal. Pico had raised some $62 million in venture funding from Chinese firms including a $37 million Series B in March. Like Oculus, they create both hardware and software for their VR devices. Unlike Oculus, they have a substantial presence in China. Pico may not hold the same name recognition as Oculus or HTC, but the company is a top VR hardware maker, selling to consumer audiences in China and enterprise customers in the Western world.

With Pico finding its home now at ByteDance, two of the world’s largest virtual reality brands now reside inside social media companies. Ironically, many of the company’s North American customers I’ve chatted with over the years seem to have at least partially opted for Pico headsets over Oculus hardware due to general weariness of Facebook’s data and ads-dependent business models which they fear Oculus will eventually become a larger part of.

It’s no secret that the virtual reality market has been slow out of the gate, but Facebook has blazed the trail for the technology dumping billions of dollars into an ecosystem that traditional investors have largely seemed uninterested in, in recent years.

Without knowing broad terms of the deal (I’m asking around), it’s hard to determine whether this is a moment of resurgence for VR or another sign of a contracting market. What seems most likely to me is that ByteDance is indeed interested in building out a consumer VR brand and is aiming to follow in Facebook’s footsteps closely while learning from their missteps and capitalizing on their contributions to the ecosystem. Whether the company solely focuses on the consumer markets in China or loosely pursue enterprise clients stateside as well is a big question ByteDance will have to address.

News: Apple buys classical music service, Primephonic

In a bid to expand its classical music offering, Apple today announced that it has Primephonic. The Amsterdam-based service, which launched in 2014, will bring a laser focus on a music genre that’s been sorely lacking in Apple Music’s generalized approach to streaming. The service will effectively be discontinued as a standalone offering, as it’s

In a bid to expand its classical music offering, Apple today announced that it has Primephonic. The Amsterdam-based service, which launched in 2014, will bring a laser focus on a music genre that’s been sorely lacking in Apple Music’s generalized approach to streaming.

The service will effectively be discontinued as a standalone offering, as it’s absorbed into the broader Apple Music platform. On September 7, Primephonic will shut down for good, while Apple readies the 2022 launch of a classical music app based on its own streaming service.

“Artists love the Primephonic service and what we’ve done in classical, and now we have the ability to join with Apple to deliver the absolute best experience to millions of listeners,” Primephonic co-founder and CEO Thomas Steffans said in a release issued by Apple. “We get to bring classical music to the mainstream and connect a new generation of musicians with the next generation of audience.”

According to an interview with Primephonic’s CTO published last year, the service has launched in 150 countries. It also appears to have an older demographic than more generalized streaming services.

“Most of our users are age 55 plus and are highly educated and relatively well off,” Henrique Boregio told Mixpanel in 2020. “We joke in the office that we don’t know whether you start liking classical music and then you become wealthy, or if it’s the other way around.”

Apple notes of the upcoming offering, “Apple Music Classical fans will get a dedicated experience with the best features of Primephonic, including better browsing and search capabilities by composer and by repertoire, detailed displays of classical music metadata, plus new features and benefits.”

While the new classical service is being built out, the company is offering an olive branch to existing Primephonic users in the form of six free months of Apple Music.

News: Instagram will require users to provide their birthday

Instagram will begin prodding users to share their birthday with the service, if they haven’t already done so. The company today announced it will now start popping up a notification that asks you to add your birthday to “personalize your experience.” But the prompt can only be dismissed a handful of times before becoming a

Instagram will begin prodding users to share their birthday with the service, if they haven’t already done so. The company today announced it will now start popping up a notification that asks you to add your birthday to “personalize your experience.” But the prompt can only be dismissed a handful of times before becoming a requirement. The move is a part of Instagram’s larger goal to create new safety features aimed at younger users, the company explains. This includes the teen privacy protections introduced earlier this year, as well as Instagram’s longer-term plan to launch a version of its service aimed at users under the age of 13.

This March, Instagram rolled out new features that made it more difficult for adults to contact teens through its app. Then in July, the company announced a larger series of changes to the default settings for new users under the age of 16. It will now default these users’ accounts to “private” and limit their accounts from being suggested elsewhere in the app. It also now restricts adults whose accounts are flagged as “potentially suspicious” from being able to reach out to other minors or interact with their posts.

Starting this week, Instagram says users who have not yet shared their birthday will begin to see pop-up notifications when they open the Instagram app.

These notifications will appear a handful of times, but at some point, users will no longer be able to dismiss the message by tapping “Not Now.” Instead, everyone will ultimately be required to share their birthday to continue to use Instagram.

The company will also now request you to share your birthday information when you come across a post with a warning screen. These screens, which hide content that’s flagged as sensitive or graphic, are not new. But Instagram has never before asked for a user’s birthday before displaying the hidden content.

Image Credits: Instagram

The birthday entry form itself is not complex. You simply scroll to choose the month, day and year of your birthday.

Of course, kids are commonly known to lie on these entry forms in order to bypass restrictions when signing up for apps. On this front, Instagram has developed A.I. technology to help it identify accounts were kids may have lied. For instance, it may be able to infer someone’s birthday based on comments left on “Happy Birthday” posts, where the user’s age may be referenced. The company also hints at further plans in this area, noting how it will later require users to verify their age when Facebook’s technology determines a mismatch between the age the user submitted and what appears to be their real age, based on other signals.

That technology is still in the “early stages,” says Instagram, but will involve a menu of options that will allow someone to verify their age.

The need to have users’ birthdays on hand isn’t only meant to power the recently launched teen protection features. Instagram is also working to bring its app to younger users — a decision that’s been met with a hostile response from legislators and consumer advocacy groups alike. In addition, age remains an important data point for ad targeting. Even as Instagram pulled back on the ability for marketers to target teens using interest data or their activity on other apps, it will continue to allow ad targeting based on age, gender and location across age groups.

The company is now one of several to have rolled out added protections for younger teen users, ahead of regulations that would force them to do so. Over the course of this year, TikTok, YouTube, and Google have also announced changes to how younger teens can use their services and how they can be targeted by ads, in anticipation of a regulatory crackdown. While each has crafted its own set of teen safety features independently, the changes have largely addressed making the default settings for new teenage users more restrictive.

Instagram says the new birthday pop-up notifications will begin to appear this week on the mobile app and will continue to roll out over the weeks ahead to reach more users.

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