Tag Archives: Blog

News: Clubhouse hires a head of news from NPR to build out publisher relationships

Clubhouse has hired a veteran editor from NPR to lead news publishing for the app. Nina Gregory will serve as Clubhouse’s Head of News and Media Publishers, working as a liaison between news publishers and the Clubhouse’s ecosystem of audio-based communities. Gregory led NPR’s Arts Desk for the last seven years, shaping the news outlet’s

Clubhouse has hired a veteran editor from NPR to lead news publishing for the app. Nina Gregory will serve as Clubhouse’s Head of News and Media Publishers, working as a liaison between news publishers and the Clubhouse’s ecosystem of audio-based communities.

Gregory led NPR’s Arts Desk for the last seven years, shaping the news outlet’s culture and entertainment coverage. “As an audio journalist, [Clubhouse] aligned with what I’ve always believed is the best medium for news,” Gregory told CNN. “You don’t need to know how to read to be able to hear radio news. You don’t need to have an expensive subscription. You don’t need cable.”

I’ve got some news… https://t.co/Q2wAqBb22y

— nina gregory (@ninaberries) September 15, 2021

Helping publishers and other brands get plugged in is one path toward maturation for Clubhouse. Online media properties from USA Today to TechCrunch have built a presence on the app, which exploded in growth as the pandemic limited in-person social interactions. But with competition from more entrenched competitors looming, Clubhouse may need to get creative to stay in the game.

Clubhouse’s quick ascent saw Twitter, Spotify, Facebook and other established tech companies scramble to integrate live audio rooms into their own products. Twitter quickly launched Spaces, while Spotify launched a standalone Clubhouse clone known as Greenroom. Facebook first announced its own live audio rooms in April, opening them to U.S. users two months later.

The kind of viral attention that Clubhouse enjoyed over the last year is almost impossible to maintain, but the company has added features, introduced an Android app and opened its doors to everyone. Clubhouse might not be able to top its February peak, but the app still notched 7.7 million global monthly downloads after expanding to Android this summer, and continues to build out its vision for audio-first social networking.

News: The FDA should regulate Instagram’s algorithm as a drug

Instagram’s unwillingness to do what is right is a clarion call for regulation: The FDA must assert its codified right to regulate the algorithm powering the drug of Instagram.

Daniel Liss
Contributor

Daniel Liss is the founder and CEO of Dispo, the digital disposable camera social network.

The Wall Street Journal on Tuesday reported Silicon Valley’s worst-kept secret: Instagram harms teens’ mental health; in fact, its impact is so negative that it introduces suicidal thoughts.

Thirty-two percent of teen girls who feel bad about their bodies report that Instagram makes them feel worse. Of teens with suicidal thoughts, 13% of British and 6% of American users trace those thoughts to Instagram, the WSJ report said. This is Facebook’s internal data. The truth is surely worse.

President Theodore Roosevelt and Congress formed the Food and Drug Administration in 1906 precisely because Big Food and Big Pharma failed to protect the general welfare. As its executives parade at the Met Gala in celebration of the unattainable 0.01% of lifestyles and bodies that we mere mortals will never achieve, Instagram’s unwillingness to do what is right is a clarion call for regulation: The FDA must assert its codified right to regulate the algorithm powering the drug of Instagram.

The FDA should consider algorithms a drug impacting our nation’s mental health: The Federal Food, Drug and Cosmetic Act gives the FDA the right to regulate drugs, defining drugs in part as “articles (other than food) intended to affect the structure or any function of the body of man or other animals.” Instagram’s internal data shows its technology is an article that alters our brains. If this effort fails, Congress and President Joe Biden should create a mental health FDA.

Researchers can study what Facebook prioritizes and the impact those decisions have on our minds. How do we know this? Because Facebook is already doing it — they’re just burying the results.

The public needs to understand what Facebook and Instagram’s algorithms prioritize. Our government is equipped to study clinical trials of products that can physically harm the public. Researchers can study what Facebook privileges and the impact those decisions have on our minds. How do we know this? Because Facebook is already doing it — they’re just burying the results.

In November 2020, as Cecilia Kang and Sheera Frenkel report in “An Ugly Truth,” Facebook made an emergency change to its News Feed, putting more emphasis on “News Ecosystem Quality” scores (NEQs). High NEQ sources were trustworthy sources; low were untrustworthy. Facebook altered the algorithm to privilege high NEQ scores. As a result, for five days around the election, users saw a “nicer News Feed” with less fake news and fewer conspiracy theories. But Mark Zuckerberg reversed this change because it led to less engagement and could cause a conservative backlash. The public suffered for it.

Facebook likewise has studied what happens when the algorithm privileges content that is “good for the world” over content that is “bad for the world.” Lo and behold, engagement decreases. Facebook knows that its algorithm has a remarkable impact on the minds of the American public. How can the government let one man decide the standard based on his business imperatives, not the general welfare?

Upton Sinclair memorably uncovered dangerous abuses in “The Jungle,” which led to a public outcry. The free market failed. Consumers needed protection. The 1906 Pure Food and Drug Act for the first time promulgated safety standards, regulating consumable goods impacting our physical health. Today, we need to regulate the algorithms that impact our mental health. Teen depression has risen alarmingly since 2007. Likewise, suicide among those 10 to 24 is up nearly 60% between 2007 and 2018.

It is of course impossible to prove that social media is solely responsible for this increase, but it is absurd to argue it has not contributed. Filter bubbles distort our views and make them more extreme. Bullying online is easier and constant. Regulators must audit the algorithm and question Facebook’s choices.

When it comes to the biggest issue Facebook poses — what the product does to us — regulators have struggled to articulate the problem. Section 230 is correct in its intent and application; the internet cannot function if platforms are liable for every user utterance. And a private company like Facebook loses the trust of its community if it applies arbitrary rules that target users based on their background or political beliefs. Facebook as a company has no explicit duty to uphold the First Amendment, but public perception of its fairness is essential to the brand.

Thus, Zuckerberg has equivocated over the years before belatedly banning Holocaust deniers, Donald Trump, anti-vaccine activists and other bad actors. Deciding what speech is privileged or allowed on its platform, Facebook will always be too slow to react, overcautious and ineffective. Zuckerberg cares only for engagement and growth. Our hearts and minds are caught in the balance.

The most frightening part of “The Ugly Truth,” the passage that got everyone in Silicon Valley talking, was the eponymous memo: Andrew “Boz” Bosworth’s 2016 “The Ugly.”

In the memo, Bosworth, Zuckerberg’s longtime deputy, writes:

So we connect more people. That can be bad if they make it negative. Maybe it costs someone a life by exposing someone to bullies. Maybe someone dies in a terrorist attack coordinated on our tools. And still we connect people. The ugly truth is that we believe in connecting people so deeply that anything that allows us to connect more people more often is de facto good.

Zuckerberg and Sheryl Sandberg made Bosworth walk back his statements when employees objected, but to outsiders, the memo represents the unvarnished id of Facebook, the ugly truth. Facebook’s monopoly, its stranglehold on our social and political fabric, its growth at all costs mantra of “connection,” is not de facto good. As Bosworth acknowledges, Facebook causes suicides and allows terrorists to organize. This much power concentrated in the hands of one corporation, run by one man, is a threat to our democracy and way of life.

Critics of FDA regulation of social media will claim this is a Big Brother invasion of our personal liberties. But what is the alternative? Why would it be bad for our government to demand that Facebook accounts to the public its internal calculations? Is it safe for the number of sessions, time spent and revenue growth to be the only results that matters? What about the collective mental health of the country and world?

Refusing to study the problem does not mean it does not exist. In the absence of action, we are left with a single man deciding what is right. What is the price we pay for “connection”? This is not up to Zuckerberg. The FDA should decide.

News: Beware the hidden bias behind TikTok resumes

Hiring processes need to be about letting people put their best foot forward, whether that is in writing or on video.

Nagaraj Nadendla
Contributor

Nagaraj Nadendla is SVP of development at Oracle Cloud HCM, where he leads the development of cloud recruitment solutions including Oracle Recruiting and Taleo.

Social media has served as a launchpad to success almost as long as it has been around. The stories of going viral from a self-produced YouTube video and then securing a record deal established the mythology of social media platforms. Ever since, social media has consistently gravitated away from text-based formats and toward visual mediums like video sharing.

For most people, a video on social media won’t be a ticket to stardom, but in recent months, there have been a growing number of stories of people getting hired based on videos posted to TikTok. Even LinkedIn has embraced video assets on user profiles with the recent addition of the “Cover Story” feature, which allows workers to supplement their profiles with a video about themselves.

As technology continues to evolve, is there room for a world where your primary resume is a video on TikTok? And if so, what kinds of unintended consequences and implications might this have on the workforce?

Why is TikTok trending for jobs?

In recent months, U.S. job openings have risen to an all-time high of 10.1 million. For the first time since the pandemic began, available jobs have exceeded available workers. Employers are struggling to attract qualified candidates to fill positions, and in that light, it makes sense that many recruiters are turning to social platforms like TikTok and video resumes to find talent.

But the scarcity of workers does not negate the importance of finding the right employee for a role. Especially important for recruiters is finding candidates with the skills that align with their business’ goals and strategy. For example, as more organizations embrace a data-driven approach to operating their business, they need more people with skills in analytics and machine learning to help them make sense of the data they collect.

Recruiters have proven to be open to innovation where it helps them find these new candidates. Recruiting is no longer the manual process it used to be, with HR teams sorting through stacks of paper resumes and formal cover letters to find the right candidate. They embraced the power of online connections as LinkedIn rose to prominence and even figured out how to use third-party job sites like GlassDoor to help them draw in promising candidates. On the back end, many recruiters use advanced cloud software to sort through incoming resumes to find the candidates that best match their job descriptions. But all of these methods still rely on the traditional text-based resume or profile as the core of any application.

Videos on social media provide the ability for candidates to demonstrate soft skills that may not be immediately apparent in written documents, such as verbal communication and presentation skills. They are also a way for recruiters to learn more about the personality of the candidate to determine how they’d fit into the culture of the company. While this may be appealing for many, are we ready for the consequences?

We’re not ready for the close-up

While innovation in recruiting is a big part of the future of work, the hype around TikTok and video resumes may actually take us backward. Despite offering a new way for candidates to market themselves for opportunities, it also carries potential pitfalls that candidates, recruiters and business leaders need to be aware of.

The very element that gives video resumes their potential also presents the biggest problems. Video inescapably highlights the person behind the skills and achievements. As recruiters form their first opinions about a candidate, they will be confronted with information they do not usually see until much later in the process, including whether they belong to protected classes because of their race, disability or gender.

Diversity, equity and inclusion (DE&I) concerns have had a major surge in attention over the last couple of years amid heightened awareness and scrutiny around how employers are — or are not — prioritizing diversity in the workplace.

But evaluating candidates through video could erase any progress made by introducing more opportunities for unconscious, or even conscious, bias. This could create a dangerous situation for businesses if they do not act carefully because it could open them up to consequences such as damage to their reputation or even something as severe as discrimination lawsuits.

A company with a poor track record for diversity may have the fact that they reviewed videos from candidates used against them in court. Recruiters reviewing the videos may not even be aware of how the race or gender of candidates are impacting their decisions. For that reason, many of the businesses I have seen implement an option for video in their recruiting flow do not allow their recruiters to watch the video until late in the recruiting process.

But even if businesses address the most pressing issues of DE&I by managing bias against those protected classes, by accepting videos there are still issues of diversity in less protected classes such as neurodiversity and socioeconomic status. A candidate with exemplary skills and a strong track record may not present themselves well through a video, coming across as awkward to the recruiter watching the video. Even if that impression is irrelevant to the job, it could still influence the recruiter’s stance on hiring.

Furthermore, candidates from affluent backgrounds may have access to better equipment and software to record and edit a compelling video resume. Other candidates may not, resulting in videos that may not look as polished or professional in the eyes of the recruiter. This creates yet another barrier to the opportunities they can access.

As we sit at an important crossroads in how we handle DE&I in the workplace, it is important for employers and recruiters to find ways to reduce bias in the processes they use to find and hire employees. While innovation is key to moving our industry forward, we have to ensure top priorities are not being compromised.

Not left on the cutting room floor

Despite all of these concerns, social media platforms — especially those based on video — have created new opportunities for users to expand their personal brands and connect with potential job opportunities. There is potential to use these new systems to benefit both job seekers and employers.

The first step is to ensure that there is always a place for a traditional text-based resume or profile in the recruiting process. Even if recruiters can get all the information they need about a candidate’s capabilities from video, some people will just naturally feel more comfortable staying off camera. Hiring processes need to be about letting people put their best foot forward, whether that is in writing or on video. And that includes accepting that the best foot to put forward may not be your own.

Instead, candidates and businesses should consider using videos as a place for past co-workers or managers to endorse the candidate. An outside endorsement can do a lot more good for an application than simply stating your own strengths because it shows that someone else believes in your capabilities, too.

Video resumes are hot right now because they are easier to make and share than ever and because businesses are in desperate need of strong talent. But before we get caught up in the novelty of this new way of sharing our credentials, we need to make sure that we are setting ourselves up for success.

The goal of any new recruiting technology should be to make it easier for candidates to find opportunities where they can shine without creating new barriers. There are some serious kinks to work out before video resumes can achieve that, and it is important for employers to consider the repercussions before they damage the success of their DE&I efforts.

News: OpenSea admits incident as top exec is accused of trading NFTs on insider information

The “eBay of NFTs” is running into a scandal as it admits one of its employees traded the crypto digital assets using insider information from the platform. Yesterday, a top executive at NFT platform OpenSea was accused of front-running sales on the platform, purchasing pieces from NFT collections before they were featured on the homepage

The “eBay of NFTs” is running into a scandal as it admits one of its employees traded the crypto digital assets using insider information from the platform.

Yesterday, a top executive at NFT platform OpenSea was accused of front-running sales on the platform, purchasing pieces from NFT collections before they were featured on the homepage of the platform. According to Twitter user @ZuwuTV, the startup’s Head of Product was using secret crypto wallets to buy drops before they listed on the main page of OpenSea, selling them shortly after they were highlighted publicly by OpenSea, and funneling the profits back to his main account. Users linked to a handful of transactions from accounts linked back to the executive on the public blockchain including an NFT drop that was, at the time, actively listed on the front page of the platform.

Hey @opensea why does it appear @natechastain has a few secret wallets that appears to buy your front page drops before they are listed, then sells them shortly after the front-page-hype spike for profits, and then tumbles them back to his main wallet with his punk on it?

— Zuwu🟩👻🎃🦇 (@ZuwuTV) September 14, 2021

Today, OpenSea seemed to acknowledge the incident, saying in a blog post that it had “learned that one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly.” The company did not identify the employee but said that they were conducting an “immediate” review of the incident. The startup, which was recently valued at $1.5 billion after raising a $100 million Series B from Andreessen Horowitz, added in the unsigned blog post that this incident was “incredibly disappointing.”

“We’re conducting a thorough review of yesterday’s incident and are committed to doing the right thing for OpenSea users,” OpenSea CEO Devin Finzer said in a tweet.

OpenSea, which did a record $3.4 billion in transaction volume last month, appears not to have had any rules in places preventing employees from using confidential information to buy or sell NFTs on its own platform to its own users. The company detailed that it was now implementing a policy that team members could not buy or sell “from collections or creators while we are featuring or promoting them,” and that they are “prohibited from using confidential information to purchase or sell any NFTs, whether available on the OpenSea platform or not.”

Most NFTs are not generally assumed to be securities, despite little official guidance from the SEC on the crypto asset class. Some in the space have questioned whether different mechanics around buying and selling, alongside ongoing rewards structures may be pushing some NFT sales further into securities territory.

“Many have been enticed by dramatic jumps in the value of new digital assets,” Senate Banking Committee Chairman Sherrod Brown said in a hearing yesterday — as transcribed by The Block — where the relationship between crypto markets and SEC enforcement was discussed. “Some professional investors and celebrities make earning millions look easy. But, as we are reminded time and again, it’s never that simple – and too often, someone’s quick profit comes at the expense of workers and entire communities.”

We’ve reached out to OpenSea for further comment.

News: Stamp your Passport to Disrupt for a chance to win these prizes

As you prepare to dive in to three days of TechCrunch Disrupt 2021, be sure to take your passport. No, not the government-issued variety. Our Disrupt Passport lets you collect experiences during the virtual conference and gives you a chance to win some pretty fabulous prizes. Seriously, who wouldn’t want a chance to win these?

As you prepare to dive in to three days of TechCrunch Disrupt 2021, be sure to take your passport. No, not the government-issued variety. Our Disrupt Passport lets you collect experiences during the virtual conference and gives you a chance to win some pretty fabulous prizes.

Seriously, who wouldn’t want a chance to win these?

Here’s the deal. The Disrupt Passport (which you can download in the Disrupt virtual venue — and watch a video detailing how to play), contains a series of experiences. Complete all the experiences in just one row and then send your entry to the TechCrunch team by 11:59 pm (PT) on September 23, 2021.

We’ll select three people who successfully submit their completed passport to win one of the three prizes.

What experiences do you need to do? Nothing more strenuous than what you already plan to do at Disrupt. Take a look at the activities in just one of the Passport’s rows.

  • Meet with a Startup During Startup Alley Crawl: Tuesday
  • Attend a Breakout Session: Thursday
  • Schedule and Attend a Meeting with CrunchMatch: Thursday
  • Take a Photo in the Disrupt Photobooth
  • Meet with a Sponsor in the Expo

All the experiences listed in the Disrupt Passport offer the kind of opportunities that can help you build your startup or expand your portfolio without reinventing the wheel. TechCrunch Disrupt 2021 is the place to create, collaborate, learn and inspire — and snag cool prizes, too. But you have to have a pass to Disrupt to play. Get yours today for under $100 before prices increase next week.

News: Front introduces customer-centric features with deeper CRM integration

Customer communication platform Front is holding an event today to introduce three new features. These new features focus on showing you more information about your customers right from Front’s user interface. If you’re not familiar with Front, the company started as a shared email inbox product so that you can interact with incoming emails as

Customer communication platform Front is holding an event today to introduce three new features. These new features focus on showing you more information about your customers right from Front’s user interface.

If you’re not familiar with Front, the company started as a shared email inbox product so that you can interact with incoming emails as a team. For instance, if your company uses email lists, such as support@companyname.com, sales@companyname.com or jobs@companyname.com, multiple team members can see incoming emails in Front.

Before replying, you can triage conversations by assigning them to specific team members, discuss the current conversation in the comment section or show your email draft before sending it.

Over time, Front has evolved to integrate more communication channels. You can now use Front for SMS conversations, live chat on your website with your customers, Facebook messages, etc. The company has also refined its product with more powerful features.

For instance, you can set up rules to automate your workflow with simple ‘if this then that’ rules. It’s a good way to spread out work across multiple team members and make sure the right person sees the incoming message as quickly as possible.

Today, the company is showcasing features that will be particularly useful for teams that interact with bigger customers, such as sales, support and customer success teams. First, Front users will be able to learn more about the customer they’re interacting with directly from their inbox.

The refreshed context panel works better if the team is interacting with multiple people working for your client. Instead of viewing past conversations with someone in particular, you can view past conversations with everyone working for this client.

Front already integrates with your CRM, such as Salesforce or HubSpot. You can now more easily pull data into the context panel. You can see the name of the account owner, the customer segment and the SLA (service-level agreement) commitment with this customer.

Image Credits: Front

Second, Front is adding new capabilities for its automated routing feature with deeper integrations with your CRM. For instance, you can find the name of the account owner in your CRM and assign incoming emails to the account owner directly.

If the account owner changes in Salesforce, rules will be automatically updated in Front. You can also fetch annual revenue data from your CRM and set a VIP tag if you’re receiving a message from an important customer.

Image Credits: Front

Finally, Front will soon upgrade the analytics pages. For instance, you can track the team’s performance for a specific account and compare that to the SLA.

These updates position Front as a tool that works better for bigger enterprise clients with expensive B2B contracts. Current Front customers include Shopify, Dropbox, Flexport, Checkout.com, Lydia and Airbnb.

Image Credits: Front

News: Check out the amazing speakers joining us on Extra Cru… ahem, TechCrunch Live

It’s been an Extra Crunch summer. We’ve heard how to craft your pitch deck around the one thing that really hooks an investor, and how the industry experience of Retail Zipline’s Melissa Wong ticked every box for Emergence when raising her Series A. And that’s just the tip of the iceberg. We’ve also gotten a

It’s been an Extra Crunch summer. We’ve heard how to craft your pitch deck around the one thing that really hooks an investor, and how the industry experience of Retail Zipline’s Melissa Wong ticked every box for Emergence when raising her Series A. And that’s just the tip of the iceberg.

We’ve also gotten a sneak peek at the Disrupt Startup Alley companies in our summer episodes of Extra Crunch Live: Startup Alley Edition.

But there’s more where that came from this fall. Without any further ado, check out the incredible speakers joining us on upcoming episodes of Extra Crunch Live.

Oh, and by the way, we’re changing the name. Henceforth, ECL shall be known as TechCrunch Live. Here’s why: We realized that hanging out with TechCrunch in this context should be accessible to everyone. We interview startup founders and the investors that finance them to learn how the deal actually gets done, and we have folks in the audience pitch to get the expert feedback of our guests. Everyone should be able to benefit from that.

Because of that, we’re calling the series TechCrunch Live, as the live event hasn’t been an EC member perk for quite some time. Although the live portion is free upon registration, the video replays from TechCrunch Live will remain behind the paywall.

So, let me try that again.

Here are the upcoming speakers joining us on TechCrunch Live in October.

Nicole Quinn (Lightspeed Venture Partners) + Vlad Novakovski (Lunchclub)

October 6 – 3pm ET/12pm PT

Nicole Quinn, partner at Lightspeed, has spent her career helping startups reach their target audiences on digital platforms. Her portfolio includes Cameo, Zola, Goop, Calm and Haus Laboratories, among others. Hear Quinn and Lunchclub founder Vlad Novakovski talk through how they came together for the startup’s Series A, and get their feedback on your startup’s elevator pitch!

REGISTER FOR LIGHTSPEED VENTURE PARTNERS AND LUNCHCLUB

Image Credits: Lightspeed Venture Partners / Lunchclub

Shawn Carolan (Menlo Ventures) + Chris Britt (Chime)

October 13 – 3pm ET/12pm PT

Chime, helmed by Chris Britt, has raised over $2 billion, with a valuation of $25 billion. Hear Britt, alongside investor and Menlo Ventures partner Shawn Carolan, share how the company got its earlier funding and how they’ve strategized growth since. Carolan and Britt will also hear live pitches from the audience and give their feedback.

REGISTER FOR MENLO VENTURES AND CHIME

Image Credits: Menlo Ventures / Chime

Mark Goldberg (Index) + Jessica McKellar (Pilot)

October 20 – 3pm ET/12pm PT

Jessica McKellar’s Pilot has taken an old-school business (taxes, bookkeeping, etc.) and made it simple through software, with more than $160 million in funding. Index led the company’s A and B rounds. On TCL, we’ll hear why Index doubled down from partner Mark Goldberg, and McKeller, and they will give live feedback on pitches from the audience.

REGISTER FOR INDEX VENTURES AND PILOT

News: Microsoft now lets you sign-in without a password

Microsoft is further nudging users away from passwords by rolling out passwordless sign-in options to all consumer Microsoft accounts. The tech giant, like many others in the industry, has waged a war against traditional password-based authentication for some time. This is because passwords are a prime target for cyberattacks, since weak or reused passwords can

Microsoft is further nudging users away from passwords by rolling out passwordless sign-in options to all consumer Microsoft accounts.

The tech giant, like many others in the industry, has waged a war against traditional password-based authentication for some time. This is because passwords are a prime target for cyberattacks, since weak or reused passwords can be guessed or brute-forced through automated attacks.

To that end, and as it gears up to launch Windows 11 in just a few weeks time, Microsoft is rolling out its passwordless sign-in option, previously available only to commercial customers, to all Microsoft accounts. This means that users will be able to sign in to services, such as Outlook and OneDrive, without having to use a password. Instead, users can use the Microsoft Authenticator app, Windows Hello, a security key, and SMS or emailed codes.

Some Microsoft apps will still continue to require a password, however, including Office 2010 or earlier, Remote Desktop and Xbox 360. Similarly, those using now-unsupported versions of Windows won’t be able to ditch their passwords just yet either, as the feature will only be supported on Windows 10 and Windows 11.

Microsoft says that passwordless sign-in will be rolled out to consumer accounts over the coming weeks, so you might not be able to get rid of your password just yet. It added that it’s also working on a way to eliminate passwords for Azure AD accounts, with admins set to be able to choose whether passwords are required, allowed, or don’t exist for specific users.

News: News aggregator SmartNews raises $230 million, valuing its business at $2 billion

SmartNews, a Tokyo-headquartered news aggregation website and app that’s grown in popularity despite hefty competition from built-in aggregators like Apple News, today announced it has closed on $230 million in Series F funding. The round brings SmartNews’ total raise to date to over $400 million and values the business at $2 billion — or as

SmartNews, a Tokyo-headquartered news aggregation website and app that’s grown in popularity despite hefty competition from built-in aggregators like Apple News, today announced it has closed on $230 million in Series F funding. The round brings SmartNews’ total raise to date to over $400 million and values the business at $2 billion — or as the company touts in its press release, a “double unicorn.” (Ha!)

The funding included new U.S. investors Princeville Capital and Woodline Partners, as well as JIC Venture Growth Investments, Green Co-Invest Investment, and Yamauchi-No.10 Family Office in Japan. Existing investors participating in this round included ACA Investments and SMBC Venture Capital.

Founded in 2012 in Japan, the company launched to the U.S. in 2014 and expanded its local news footprint early last year. While the app’s content team includes former journalists, machine learning is used to pick which articles are shown to readers to personalize their experience. However, one of the app’s key differentiators is how it works to pop users’ “filter bubbles” through its “News From All Sides” feature, which allows its users to access news from across a range of political perspectives.

It has also developed new products, like its Covid-19 vaccine dashboard and U.S. election dashboard, that provide critical information at a glance. With the additional funds, the company says it plans to develop more features for its U.S. audience — one of its largest, in addition to Japan —  that will focus on consumer health and safety. These will roll out in the next few months and will include features for tracking wildfires and crime and safety reports. It also recently launched a hurricane tracker.

The aggregator’s business model is largely focused on advertising, as the company has said before that 85-80% of Americans aren’t paying to subscribe to news. But SmartNews’ belief is that these news consumers still have a right to access quality information.

In total, SmartNews has relationships with over 3,000 global publishing partners whose content is available through its service on the web and mobile devices.

To generate revenue, the company sells inline ads and video ads, where revenue is shared with publishers. Over 75% of its publishing partners also take advantage of its “SmartView” feature. This is the app’s quick-reading mode, and alternative to something like Google AMP. Here, users can quickly load an article to read, even if they’re offline. The company promises publishers that these mobile-friendly stories, which are marked with a lightning bolt icon in the app, deliver higher engagement — and its algorithm rewards that type of content, bringing them more readers. Among SmartView partners are well-known brands like USA Today, ABC, HuffPost, and others. Currently, over 70% of all SmartNews’ pageviews are coming from SmartView first.

SmartNews’ app has proven to be very sticky, in terms of attracting and keeping users’ attention. The company tells us, citing App Annie July 2021 data, that it sees an average time spent per user per month on U.S. mobile devices that’s higher than Google News or Apple News combined.

Image Credits: App Annie data provided by SmartNews

The company declined to share its monthly active users (MAUs), but had said in 2019 it had grown to 20 million in the U.S. and Japan. Today, it says its U.S. MAUs doubled over the last year.

According to data provided to us by Apptopia, the SmartNews app has seen around 85 million downloads since its October 2014 launch, and 14 million of those took place in the past 365 days. Japan is the largest market for installs, accounting for 59% of lifetime downloads, the firm noted.

“This latest round of funding further affirms the strength of our mission, and fuels our drive to expand our presence and launch features that specifically appeal to users and publishers in the United States,” said SmartNews co-founder and CEO Ken Suzuki. “Our investors both in the U.S. and globally acknowledge the tremendous growth potential and value of SmartNews’s efforts to democratize access to information and create an ecosystem that benefits consumers, publishers, and advertisers,” he added.

The company says the new funds will be used to invest in further U.S. growth and expanding the company’s team. Since its last fundraise in 2019, where it became a unicorn, the company more than doubled its headcount to approximately 500 people globally. it now plans to double its headcount of 100 in the U.S., with additions across engineering, product, and leadership roles.

The Wall Street Journal reports SmartNews is exploring an IPO, but the company declined to comment on this.

The SmartNews app is available on iOS and Android across more than 150 countries worldwide.

News: Chamath Palihapitiya is coming to Disrupt

Retail investors love him. Venture capitalists envy him. But pretty much everyone writing checks these days is paying attention to Chamath Palihapitiya, whose star has been on the rise since the outset of his career at an early online media player called Winamp that was acquired by AOL. Indeed, over the last 20 years, Palihapitiya

Retail investors love him. Venture capitalists envy him. But pretty much everyone writing checks these days is paying attention to Chamath Palihapitiya, whose star has been on the rise since the outset of his career at an early online media player called Winamp that was acquired by AOL.

Indeed, over the last 20 years, Palihapitiya — whose family moved from Sri Lanka to Canada as refugees when he was five — has been changing up the status quo of nearly everything he touches. At AOL, he became the company’s youngest VP and wound up doing a small deal with Facebook whose “biggest outcome of the deal was the connection Palihapitiya formed with Mark Zuckerberg,” as writer Steven Levy reported last year. (Palihapitiya later said that one of his biggest takeaways from AOL was that, “Most people at most companies are really shit.”)

Hired into Facebook in 2007, his role there would prove more seminal. Though Palihapitiya reportedly floundered at first — even proposing after a year that Zuckerberg should perhaps fire him, according to Levy — he zeroed in on how to make both himself and Facebook more valuable by building a data-driven “growth team” that focused relentlessly on improving and growing the engagement of monthly active users.

Among its biggest successes: Facebook’s “People You Know” feature, which was heavily inspired by a similar LinkedIn feature after Palihapitiya’s team identified that new users needed to discover seven friends and fast.

That period of Palihapitiya’s life would have wide-ranging ripple effects. For one thing, like a lot of people working at Facebook before it went public in 2012, he made a fortune from his Facebook shares, such that around the same time that he was leaving in 2011, he acquired a stake in the Golden State Warriors and founded his own venture capital firm, Social Capital.

Being a “former Facebook exec” also made Palihapitiya more widely famous, including as he began expressing regret publicly over his role with the company, which he began to see as corrosive.

Indeed, in 2017, he told an audience at the Stanford Graduate School of Business what many had already begun to fear about Facebook: “I think we have created tools that are ripping apart the social fabric of how society works,” he said.

More drama, more money and more fame have followed. In recent years, Social Capital has shed most of its employees — Palihapitiya now describes himself as a solo GP. He has become a regular guest on CNBC.

He has become closely identified with special purpose acquisition vehicles, or SPACs, owing both to his early and bullish embrace of them. The first SPAC he organized merged with Virgin Galactic Holdings, enabling the space tourism company to begin trading publicly in October 2019. It performed so well that it kicked off a massive boom in SPAC activity, with Palihapitiya — whose many earlier bets include Yammer, Palantir and Box — forming or investing in more than a dozen SPACs since, including one that took public Opendoor and another that took public Clover Health. (Earlier this year, The New Yorker dedicated valuable real estate to Palihapitiya in a profile titled, “The Pied Piper of SPACs.”)

One question is whether Palihapitiya is now moving on. SPAC activity has cooled, with enthusiasm around the vehicles dampened by class-action lawsuits (including against Clover Health) and the widespread expectation that the Securities & Exchange Commission is about to regulate them more closely.

Back in March, Palihapitiya was also believed to be shifting his gaze toward environmental investment, including through the sale of his entire personal stake in Virgin Galactic for more than $200 million — a move he said was designed to help finance “a large investment I am making towards fighting climate change.”

(He also late last month donated $7 million to an organization that is affixing hydropanels that supply clean water to homes in the California counties of Fresno, Monterey, Kern and Tulare, which has become “ground zero” for the climate crisis, observes Fast Company.)

What has come of that large investment he was planning to make? Is he past SPACs? And what else does the inimitable Palihapitiya have cooking? We’re very excited to say we’ll have the opportunity to talk with him about all of these things and much more in roughly one week at TechCrunch Disrupt, our signature annual event, which is entirely virtual this year. While 25 minutes will surely prove too short a time, we’ll cover as much ground with him as we can in a conversation that, if you know Palihapitiya at all, you know you definitely don’t want to miss.

Even better, Palihapitiya joins a whole host of amazing speakers at Disrupt, including Canva CEO Melanie Perkins, actor-entrepreneur Ryan Reynolds, and U.S. Transportation Secretary Pete Buttigieg.

The show is coming up fast. Get your ticket now for less than $100 just for a few short days, and we’ll see you next week.

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