As offices come back, ATMO launches air monitoring device claiming to give COVID-risk score

Way back in 2015 we covered the launch of the Atmotube, a small, innovative, portable air quality monitor which went on to receive a number of awards, post its CES debut.

Since rebranding as ATMO, the company, co-founded by Vera Kozyr, is now launching the Atmocube, an indoor air quality monitoring system for businesses and enterprises. This new product is positioned far more for the Post-COVID era, where air quality inside offices is going to be vital, and this time, instead of being small and portable (although that earlier product is still sold), the Atmocube will be prominent and visible in order to give office workers peace of mind that their air quality is good.

The key to this is measuring CO2 levels which the Atmocube displays on its screen along with other metrics.

The device has up to 14 sensors measuring various environmental parameters such as CO2, formaldehyde NO2, PM1 (small airborne particles), PM2.5, ozone, and others, and other environmental parameters such as relative humidity, temperature, atmospheric pressure, ambient noise, light levels, and color temperature.

The company says this new device also calculates the Airborne Virus Transmission Score — based on the levels of particulate matter, humidity, and CO2, and says it comes up with a “score” that estimates the probability of transferring virus diseases in closed spaces. Obviously, that’s probably something that would need independent testing to verify, but it is the case that the WHO advises that COVID-19 can be transmitted in poorly ventilated and/or crowded indoor settings.

Kozyr said: “Air pollution is dangerous because it can affect you and your health even if you don’t notice it. We aim to help people know what they’re breathing and make changes as a result. As businesses return to the office, they need a tool to make information about indoor air quality transparent and accessible to their employees. Most air quality monitors are designed to be hidden away, so we set out to create a device with a more transparent interface that would highlight HVAC performance safety and create trust between occupants and building owners”.

ATMO is by no means the only player in the space of course, as it’s joined by AirThings, Awair Omni and Kaiterra.

#air-pollution, #airthings, #articles, #europe, #player, #pollution, #tc, #vera-kozyr, #world-health-organization

Facebook enters the fantasy gaming market

Facebook is getting into fantasy sports and other types of fantasy games. The company this morning announced the launch of Facebook Fantasy Games in the U.S. and Canada on the Facebook app for iOS and Android. Some games are described as “simpler” versions of the traditional fantasy sports games already on the market, while others allow users to make predictions associated with popular TV series, like “Survivor” or “The Bachelorette.”

The first game to launch is Pick & Play Sports, in partnership with Whistle Sports, where fans get points for correctly predicting the winner of a big game, the points scored by a top player, or other events that unfold during the match. Players can also earn bonus points for building a streak of correct predictions over several days. This game is arriving today.

Image Credits: Facebook

In the months ahead, it will be followed by other games in sports, TV, and pop culture, including Fantasy Survivor, where players choose a set of Castaways from the popular CBS TV show to join their fantasy team and Fantasy “The Bachelorette,” where fans will pick a group of men from the suitors vying for the Bachelorette’s heart and get points based on their actions and events that take place during the show. Other upcoming sports-focused games include MLB Home Run Picks, where players pick the team that they think will hit the most home runs, and LaLiga Winning Streak, where fans predict the team that will win that day.

In addition to top players being featured on leaderboards, games have a social component for those who want to play with friends.

Image Credits: Facebook

Players can create their own fantasy league with friends to compete with one another or against other fans, either publicly or privately. League members can compare scores with each other and will have a place where they can share picks, reactions and comments. This league area resembles a private group on Facebook, as it offers its own compose box for posting only to members and its own dedicated feed. However, the page is designed to support groups with specific buttons to “play” or view the “leaderboard,” among others.

The addition of fantasy games could help Facebook increase the time users spent on its app at a time when the company is facing significant competition in social, namely from TikTok. According to App Annie, the average monthly time spent per user in TikTok grew faster than other top social apps in 2020, including by 70% in the U.S., surpassing Facebook.

Facebook had dabbled in the idea of becoming a second screen companion for live events in the past, but in a different way than fantasy sports and games. Instead, its R&D division tested Venue, which worked as a way for fans to comment on live events which were hosted in the app by well-known personalities.

The new league games will be available from the bookmark menu on the mobile app and in News Feed through notifications.

#android, #app-annie, #apps, #canada, #computing, #facebook, #gaming, #mlb, #mobile, #player, #private, #software, #survivor, #tiktok, #united-states, #world-wide-web

UK-based Heroes raises $200M to buy up more Amazon merchants for its roll-up play

Heroes, one of the new wave of startups aiming to build big e-commerce businesses by buying up smaller third-party merchants on Amazon’s Marketplace, has raised another big round of funding to double down on that strategy. The London startup has picked up $200 million, money that it will mainly be using to snap up more merchants. Existing brands in its portfolio cover categories like baby, pets, sports, personal health and home and garden categories — some of them, like PremiumCare dog chews, the Onco baby car mirror, gardening tool brand Davaon and wooden foot massager roller Theraflow, category best-sellers — and the plan is to continue building up all of these verticals.

Crayhill Capital Management, a fund based out of New York, is providing the funding, and Riccardo Bruni — who co-founded the company with twin brother Alessio and third brother Giancarlo — said that the bulk of it will be going towards making acquisitions, and is therefore coming in the form of debt.

Raising debt rather than equity at this point is pretty standard for companies like Heroes. Heroes itself is pretty young: it launched less than a year ago, in November 2020, with $65 million in funding, a round comprised of both equity and debt. Other investors in the startup include 360 Capital, Fuel Ventures and Upper 90.

Heroes is playing in what is rapidly becoming a very crowded field. Not only are there are tens of thousands of businesses leveraging Amazon’s extensive fulfillment network to sell goods on the e-commerce giant’s Marketplace; but some days it seems we are also rapidly approaching a state of nearly as many startups launching to consolidate these third-party sellers.

Many a roll-up play follows a similar playbook, which goes like this: Amazon provides the Marketplace to sell goods to consumers, and the infrastructure to fulfill those orders, by way of Fulfillment By Amazon and its Prime service. Meanwhile, the roll-up business — in this case Heroes — buys up a number of the stronger companies leveraging FBA and the Marketplace. Then, by consolidating them into a single tech platform that they have built, Heroes creates better economies of scale around better and more efficient supply chains, sharper machine learning and marketing and data analytics technology, and new growth strategies. 

What is notable about Heroes, though — apart from the fact that it’s the first roll-up player to come out of the UK, and continues to be one of the bigger players in Europe — is that it doesn’t believe that the technology plays as important a role as having a solid relationship with the companies it’s targeting, key given that now the top Marketplace sellers are likely being feted by a number of companies as acquisition targets.

“The tech is very important,” said Alessio in an interview. “It helps us build robust processes that tie all the systems together across multiple brands and marketplaces. But what we have is very different from a SaaS business. We are not building an app, and tech is not the core of what we do. From the acquisitions side, we believe that human interactions ultimately win. We don’t think tech can replace a strong acquisition process.”

Image Credits: Heroes

Heroes’ three founder-brothers (two of them, Riccardo and Alessio, pictured above) have worked across a number of investment, finance and operational roles (the CVs include Merrill Lynch, EQT Ventures, Perella Weinberg Partners, Lazada, Nomura and Liberty Global) and they say there have been strong signs so far of its strategy working: of the brands that it has acquired since launching in November, they claim business (sales) has grown five-fold.

Collectively, the roll-up startups are raising hundreds of millions of dollars to fuel these efforts. Other recent hopefuls that have announced funding this year include Suma Brands ($150 million); Elevate Brands ($250 million); Perch ($775 million); factory14 ($200 million); Thrasio (currently probably the biggest of them all in terms of reach and money raised and ambitions), HeydayThe Razor GroupBrandedSellerXBerlin Brands Group (X2), Benitago, Latin America’s Valoreo and Rainforest and Una Brands out of Asia. 

The picture that is emerging across many of these operations is that many of these companies, Heroes included, do not try to make their particular approaches particularly more distinctive than those of their competitors, simply because — with nearly 10 million third-party sellers today on Amazon globally — the opportunity is likely big enough for all of them, and more, not least because of current market dynamics.

“It’s no secret that we were inspired by Thrasio and others,” Riccardo said. “Combined with Covid-19, there has been a massive acceleration of e-commerce across the continent.” It was that, plus the realization that the three brothers had the right e-commerce, fundraising and investment skills between them, that made them see what was a “perfect storm” to tackle the opportunity, he continued. “So that is why we jumped into it.”

In the case of Heroes, while the majority of the funding will be used for acquisitions, it’s also planning to double headcount from its current 70 employees before the end of this year with a focus on operational experts to help run their acquired businesses. 

#360-capital, #amazon, #asia, #berlin-brands-group, #companies, #crayhill-capital-management, #e-commerce, #ecommerce, #eqt-ventures, #europe, #finance, #fuel-ventures, #heroes, #latin-america, #lazada-group, #liberty-global, #london, #machine-learning, #marketplace, #new-york, #player, #prime, #retailers, #startup-company, #united-kingdom

This Week in Apps: OnlyFans bans sexual content, SharePlay delayed, TikTok questioned over biometric data collection

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.

The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.

Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.

This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.

Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters

Top Stories

OnlyFans to ban sexually explicit content

OnlyFans logo displayed on a phone screen and a website

(Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images)

Creator platform OnlyFans is getting out of the porn business. The company announced this week it will begin to prohibit any “sexually explicit” content starting on October 1, 2021 — a decision it claimed would ensure the long-term sustainability of the platform. The news angered a number of impacted creators who weren’t notified ahead of time and who’ve come to rely on OnlyFans as their main source of income.

However, word is that OnlyFans was struggling to find outside investors, despite its sizable user base, due to the adult content it hosts. Some VC firms are prohibited from investing in adult content businesses, while others may be concerned over other matters — like how NSFW content could have limited interest from advertisers and brand partners. They may have also worried about OnlyFans’ ability to successfully restrict minors from using the app, in light of what appears to be soon-to-come increased regulations for online businesses. Plus, porn companies face a number of other issues, too. They have to continually ensure they’re not hosting illegal content like child sex abuse material, revenge porn or content from sex trafficking victims — the latter which has led to lawsuits at other large porn companies.

The news followed a big marketing push for OnlyFans’ porn-free (SFW) app, OFTV, which circulated alongside reports that the company was looking to raise funds at a $1 billion+ valuation. OnlyFans may not have technically needed the funding to operate its current business — it handled more than $2 billion in sales in 2020 and keeps 20%. Rather, the company may have seen there’s more opportunity to cater to the “SFW” creator community, now that it has big names like Bella Thorne, Cardi B, Tyga, Tyler Posey, Blac Chyna, Bhad Bhabie and others on board.

U.S. lawmakers demand info on TikTok’s plans for biometric data collection

The TikTok logo is seen on an iPhone 11 Pro max

The TikTok logo is seen on an iPhone 11 Pro max. Image Credits: Nur Photo/Getty Images

U.S. lawmakers are challenging TikTok on its plans to collect biometric data from its users. TechCrunch first reported on TikTok’s updated privacy policy in June, where the company gave itself permission to collect biometric data in the U.S., including users’ “faceprints and voiceprints.” When reached for comment, TikTok could not confirm what product developments necessitated the addition of biometric data to its list of disclosures about the information it automatically collects from users, but said it would ask for consent in the case such data collection practices began.

Earlier this month, Senators Amy Klobuchar (D-MN) and John Thune (R-SD) sent a letter to TikTok CEO Shou Zi Chew, which said they were “alarmed” by the change, and demanded to know what information TikTok will be collecting and what it plans to do with the data. This wouldn’t be the first time TikTok got in trouble for excessive data collection. Earlier this year, the company paid out $92 million to settle a class-action lawsuit that claimed TikTok had unlawfully collected users’ biometric data and shared it with third parties.

Weekly News

Platforms: Apple

Image Credits: Apple

  • ⭐ Apple told developers that some of the features it announced as coming in iOS 15 won’t be available at launch. This includes one of the highlights of the new OS, SharePlay, a feature that lets people share music, videos and their screen over FaceTime calls. Other features that will come in later releases include Wallet’s support for ID cards, the App Privacy report and others that have yet to make it to beta releases.
  • Apple walked back its controversial Safari changes with the iOS 15 beta 6 update. Apple’s original redesign had shown the address bar at the bottom of the screen, floating atop the page’s content. Now the tab bar will appear below the page’s content, offering access to its usual set of buttons as when it was at the top. Users can also turn off the bottom tab bar now and revert to the old, Single Tab option that puts the address bar back at the top as before.
  • In response to criticism over its new CSAM detection technology, Apple said the version of NeuralHash that was reverse-engineered by a developer, Asuhariet Ygvar, was a generic version, and not the complete version that will roll out later this year.
  • The Verge dug through over 800 documents from the Apple-Epic trial to find the best emails, which included dirt on a number of other companies like Netflix, Hulu, Sony, Google, Nintendo, Valve, Microsoft, Amazon and more. These offered details on things like Netflix’s secret arrangement to pay only 15% of revenue, how Microsoft also quietly offers a way for some companies to bypass its full cut, how Apple initially saw the Amazon Appstore as a threat and more.

Platforms: Google

  • A beta version of the Android Accessibility Suite app (12.0.0) which rolled out with the fourth Android beta release added something called “Camera Switches” to Switch Access, a toolset that lets you interact with your device without using the touchscreen. Camera Switches allows users to navigate their phone and use its features by making face gestures, like a smile, open mouth, raised eyebrows and more.
  • Google announced its Pixel 5a with 5G, the latest A-series Pixel phone, will arrive on August 27, offering IP67 water resistance, long-lasting Adaptive Battery, Pixel’s dual-camera system and more, for $449. The phone makes Google’s default Android experience available at a lower price point than the soon to arrive Pixel 6.
  • An unredacted complaint from the Apple-Epic trial revealed that Google had quietly paid developers hundreds of millions of dollars via a program known as “Project Hug,” (later “Apps and Games Velocity Program”) to keep their games on the Play Store. Epic alleges Google launched the program to keep developers from following its lead by moving their games outside the store.

Augmented Reality

  • Snap on Thursday announced it hired its first VP of Platform Partnerships to lead AR, Konstantinos Papamiltiadis (“KP”). The new exec will lead Snap’s efforts to onboard partners, including individual AR creators building via Lens Studio as well as large companies that incorporate Snapchat’s camera and AR technology (Camera Kit) into their apps. KP will join in September, and report to Ben Schwerin, SVP of Content and Partnerships.

Fintech

  • Crypto exchange Coinbase will enter the Japanese market through a new partnership with Japanese financial giant Mitsubishi UFJ Financial Group (MUFG). The company said it plans to launch other localized versions of its existing global services in the future.

Social

Image Credits: Facebook

  • Facebook launched a “test” of Facebook Reels in the U.S. on iOS and Android. The new feature brings the Reels experience to Facebook, allowing users to create and share short-form video content directly within the News Feed or within Facebook Groups. Instagram Reels creators can also now opt in to have their Reels featured on users’ News Feed. The company is heavily investing its its battle with TikTok, even pledging that some portion of its $1 billion creator fund will go toward Facebook Reels.
  • Twitter’s redesign of its website and app was met with a lot of backlash from users and accessibility experts alike. The company choices add more visual contrast between various elements and may have helped those with low vision. But for others, the contrast is causing strain and headaches. Experts believe accessibility isn’t a one-size fits all situation, and Twitter should have introduced tools that allowed people to adjust their settings to their own needs.
  • The pro-Trump Twitter alternative Gettr’s lack of moderation has allowed users to share child exploitation images, according to research from the Stanford Internet Observatory’s Cyber Policy Center.
  • Pinterest rolled out a new set of more inclusive search filters that allow people to find styles for different types of hair textures — like coily, curly, wavy, straight, as well as shaved or bald and protective styles. 

Photos

  • Photoshop for iPad gained new image correction tools, including the Healing Brush and Magic Wand, and added support for connecting an iPad to external monitors via HDMI or USB-C. The company also launched a Photoshop Beta program on the desktop.

Messaging

  • WhatsApp is being adopted by the Taliban to spread its message across Afghanistan, despite being on Facebook’s list of banned organizations. The company says it’s proactively removing Taliban content — but that may be difficult to do since WhatsApp’s E2E encryption means it can’t read people’s texts. This week, Facebook shut down a Taliban helpline in Kabul, which allowed civilians to report violence and looting, but some critics said this wasn’t actually helping local Afghans, as the group was now in effect governing the region.
  • WhatsApp is also testing a new feature that will show a large preview when sharing links, which some suspect may launch around the time when the app adds the ability to have the same account running on multiple devices.

Streaming & Entertainment

  • Netflix announced it’s adding spatial audio support on iPhone and iPad on iOS 14, joining other streamers like HBO Max, Disney+ and Peacock that have already pledged to support the new technology. The feature will be available to toggle on and off in the Control Center, when it arrives.
  • Blockchain-powered streaming music service Audius partnered with TikTok to allow artists to upload their songs using TikTok’s new SoundKit in just one click.
  • YouTube’s mobile app added new functionality that allows users to browse a video’s chapters, and jump into the chapter they want directly from the search page.
  • Spotify’s Anchor app now allows users in global markets to record “Music + Talk” podcasts, where users can combine spoken word recordings with any track from Spotify’s library of 70 million songs for a radio DJ-like experience.
  • Podcasters are complaining that Apple’s revamped Podcasts platform is not working well, reports The Verge. Podcasts Connect has been buggy, and sports a confusing interface that has led to serious user errors (like entire shows being archived). And listeners have complained about syncing problems and podcasts they already heard flooding their libraries.

Dating

  • Tinder announced a new feature that will allow users to voluntarily verify their identity on the platform, which will allow the company to cross-reference sex offender registry data. Previously, Tinder would only check this database when a user signed up for a paid subscription with a credit card.

Gaming

Image Source: The Pokémon Company

  • Pokémon Unite will come to iOS and Android on September 22, The Pokémon Company announced during a livestream this week. The strategic battle game first launched on Nintendo Switch in late July.
  • Developer Konami announced a new game, Castlevania: Grimoire of Souls, which will come exclusively to Apple Arcade. The game is described as a “full-fledged side-scrolling action game,” featuring a roster of iconic characters from the classic game series. The company last year released another version of Castelvania on the App Store and Google Play.
  • Dragon Ball Z: Dokkan Battle has now surpassed $3 billion in player spending since its 2015 debut, reported Sensor Tower. The game from Bandai Namco took 20 months to reach the figure after hitting the $2 billion milestone in 2019. The new landmark sees the game joining other top-grossers, including Clash Royale, Lineage M and others.
  • Sensor Tower’s mobile gaming advertising report revealed data on top ad networks in the mobile gaming market, and their market share. It also found puzzle games were among the top advertisers on gaming-focused networks like Chartboost, Unity, IronSource and Vungle. On less game-focused networks, mid-core games were top titles, like Call of Duty: Mobile and Top War. 

Image Credits: Sensor Tower

Health & Fitness

  • Apple is reportedly scaling back HealthHabit, an internal app for Apple employees that allowed them to track fitness goals, talk to clinicians and coaches at AC Wellness (a doctors’ group Apple works with) and manage hypertension. According to Insider, 50 employees had been tasked to work on the project.
  • Samsung launched a new product for Galaxy smartphones in partnership with healthcare nonprofit The Commons Project, that allows U.S. users to save a verifiable copy of their vaccination card in the Samsung Pay digital wallet.

Image Credits: Samsung

Adtech

Government & Policy

  • China cited 43 apps, including Tencent’s WeChat and an e-reader from Alibaba, for illegally transferring user data. The regulator said the apps had transferred users location data and contact list and harassed them with pop-up windows. The apps have until August 25 to make changes before being punished.

Security & Privacy

  • A VICE report reveals a fascinating story about a jailbreaking community member who had served as a double agent by spying for Apple’s security team. Andrey Shumeyko, whose online handles included JVHResearch and YRH04E, would advertise leaked apps, manuals and stolen devices on Twitter and Discord. He would then tell Apple things like which Apple employees were leaking confidential info, which reporters would talk to leakers, who sold stolen iPhone prototypes and more. Shumeyko decided to share his story because he felt Apple took advantage of him and didn’t compensate him for the work.

Funding and M&A

? South Korea’s GS Retail Co. Ltd will buy Delivery Hero’s food delivery app Yogiyo in a deal valued at 800 billion won ($685 million USD). Yogiyo is the second-largest food delivery app in South Korea, with a 25% market share.

? Gaming platform Roblox acquired a Discord rival, Guilded, which allows users to have text and voice conversations, organize communities around events and calendars and more. Deal terms were not disclosed. Guilded raised $10.2 million in venture funding. Roblox’s stock fell by 7% after the company reported earnings this week, after failing to meet Wall Street expectations.

? Travel app Hopper raised $175 million in a Series G round of funding led by GPI Capital, valuing the business at over $3.5 billion. The company raised a similar amount just last year, but is now benefiting from renewed growth in travel following COVID-19 vaccinations and lifting restrictions.

? Indian quiz app maker Zupee raised $30 million in a Series B round of funding led by Silicon Valley-based WestCap Group and Tomales Bay Capital. The round values the company at $500 million, up 5x from last year.

? Danggeun Market, the publisher of South Korea’s hyperlocal community app Karrot, raised $162 million in a Series D round of funding led by DST Global. The round values the business at $2.7 billion and will be used to help the company launch its own payments platform, Karrot Pay.

? Bangalore-based fintech app Smallcase raised $40 million in Series C funding round led by Faering Capital and Premji Invest, with participation from existing investors, as well as Amazon. The Robinhood-like app has over 3 million users who are transacting about $2.5 billion per year.

? Social listening app Earbuds raised $3 million in Series A funding led by Ecliptic Capital. Founded by NFL star Jason Fox, the app lets anyone share their favorite playlists, livestream music like a DJ or comment on others’ music picks.

? U.S. neobank app One raised $40 million in Series B funding led by Progressive Investment Company (the insurance giant’s investment arm), bringing its total raise to date to $66 million. The app offers all-in-one banking services and budgeting tools aimed at middle-income households who manage their finances on a weekly basis.

Public Markets

?Indian travel booking app ixigo is looking to raise Rs 1,600 crore in its initial public offering, The Economic Times reported this week.

?Trading app Robinhood disappointed in its first quarterly earnings as a publicly traded company, when it posted a net loss of $502 million, or $2.16 per share, larger than Wall Street forecasts. This overshadowed its beat on revenue ($565 million versus $521.8 million expected) and its more than doubling of MAUs to 21.3 million in Q2.  Also of note, the company said dogecoin made up 62% of its crypto revenue in Q2.

Downloads

Polycam (update)

Image Credits: Polycam

3D scanning software maker Polycam launched a new 3D capture tool, Photo Mode, that allows iPhone and iPad users to capture professional-quality 3D models with just an iPhone. While the app’s scanner before had required the use of the lidar sensor built into newer devices like the iPhone 12 Pro and iPad Pro models, the new Photo Mode feature uses just an iPhone’s camera. The resulting 3D assets are ready to use in a variety of applications, including 3D art, gaming, AR/VR and e-commerce. Data export is available in over a dozen file formats, including .obj, .gtlf, .usdz and others. The app is a free download on the App Store, with in-app purchases available.

Jiobit (update)

Jiobit, the tracking dongle acquired by family safety and communication app Life360, this week partnered with emergency response service Noonlight to offer Jiobit Protect, a premium add-on that offers Jiobit users access to an SOS Mode and Alert Button that work with the Jiobit mobile app. SOS Mode can be triggered by a child’s caregiver when they detect — through notifications from the Jiobit app — that a loved one may be in danger. They can then reach Noonlight’s dispatcher who can facilitate a call to 911 and provide the exact location of the person wearing the Jiobit device, as well as share other details, like allergies or special needs, for example.

Tweets

When your app redesign goes wrong…

Image Credits: Twitter.com

Prominent App Store critic Kosta Eleftheriou shut down his FlickType iOS app this week after too many frustrations with App Review. He cited rejections that incorrectly argued that his app required more access than it did — something he had successfully appealed and overturned years ago. Attempted follow-ups with Apple were ignored, he said. 

Image Credits: Twitter.com

Anyone have app ideas?

#911, #ac-wellness, #ad-networks, #afghanistan, #alibaba, #amazon, #amy-klobuchar, #android, #app-store, #apple, #apple-arcade, #apps, #arkansas, #audius, #bandai-namco, #bangalore, #chartboost, #coinbase, #computing, #control-center, #danggeun-market, #delivery-hero, #disney, #dst-global, #e-commerce, #e-reader, #e2e-encryption, #ecliptic-capital, #epic, #facebook, #faering-capital, #food, #google, #gpi-capital, #guilded, #hbo, #hdmi, #healthcare, #instagram, #ios, #ipad, #iphone, #ironsource, #itunes, #jason-fox, #john-thune, #kabul, #konami, #kosta-eleftheriou, #lens-studio, #microsoft, #mobile-app, #mobile-applications, #mobile-devices, #netflix, #nfl, #nintendo, #noonlight, #operating-systems, #pinterest, #play-store, #player, #pokemon-company, #roblox, #samsung, #sensor-tower, #silicon-valley, #smartphones, #snap, #snapchat, #software, #sony, #south-korea, #spotify, #svp, #taliban, #tc, #this-week-in-apps, #tiktok, #travel-app, #united-states, #wand

Medal.tv, a video clipping service for gamers, enters the livestreaming market with Rawa.tv acquisition

Medal.tv, a short-form video clipping service and social network for gamers, is entering the live streaming market with the acquisition of Rawa.tv, a Twitch rival based in Dubai, which had raised around $1 million to date. The seven-figure, all cash deal will see two of Rawa’s founders, Raya Dadah and Phil Jammal, now joining Medal and further integrations between the two platforms going forward.

The Middle East and North African region (MENA) is one of the fastest-growing markets in gaming and still one that’s mostly un-catered to, explained Medal.tv CEO Pim de Witte, as to his company’s interest in Rawa.

“Most companies that target that market don’t really understand the nuances and try to replicate existing Western or Far-Eastern models that are doomed to fail,” he said. “Absorbing a local team will increase Medal’s chances of success here. Overall, we believe that MENA is an underserved market without a clear leader in the livestreaming space, and Rawa brings to Medal the local market expertise that we need to capitalize on this opportunity,” de Witte added.

Medal.tv’s community had been asking for the ability to do livestreaming for some time, the exec also noted, but the technology would have been too expensive for the startup to build using off-the-shelf services at its scale, de Witte said.

“People increasingly connect around live and real-time experiences, and this is something our platform has lacked to date,” he noted.

But Rawa, as the first livestreaming platform dedicated to Arab gaming, had built out its own proprietary live and network streaming technology that’s now used in all its products. That technology is now coming to Medal.tv.

Image Credits: Medal.tv

The two companies were already connected before today, as Rawa users have been able to upload their gaming clips to Medal.tv, and some Rawa partners had joined Medal’s skilled player program. Going forward, Rawa will continue to operate as a separate platform, but it will become more tightly integrated with Medal, the company says. Currently, Rawa sees around 100,000 active users on its service.

The remaining Rawa team will continue to operate the livestreaming platform under co-founder Jammal’s leadership following the deal’s close, and the Rawa HQ will remain based in Dubai. However, Rawa’s employees have been working remotely since the start of the pandemic, and it’s unclear if that will change in the future, given the uncertainty of Covid-19’s spread.

Medal.tv detailed its further plans for Rawa on its site, where the company explained it doesn’t aim to build a “general-purpose” livestreaming platform where the majority of viewers don’t pay — a call-out that clearly seems aimed at Twitch. Instead, it says it will focus on matching content with viewers who would be interested in subscribing to the creators. This addresses on of the challenges that has faced larger platforms like Twitch in the past, where it’s been difficult for smaller streamers to get off the ground.

The company also said it will remain narrowly focused on serving the gaming community as opposed to venturing into non-gaming content, as others have done. Again, this differentiates itself from Twitch which, over the years, expanded into vlogs and even streaming old TV shows. And it’s much different from YouTube or Facebook Watch, where gaming is only a subcategory of a broader video network.

The acquisition follows Medal.tv’s $9 million Series A led by Horizons Ventures in 2019, after the startup had grown to 5 million registered users and “hundreds of thousands” of daily active users. Today, the company says over 200,000 people create content every day on Medal, and 3 million users are actively viewing that content every month.

#apps, #clips, #digital-media, #dubai, #exit, #gamer, #gamers, #games, #horizons-ventures, #livestreaming, #ma, #mass-media, #media, #mena, #middle-east, #mobile, #new-media, #player, #social-network, #startups, #streaming, #streaming-media, #twitch, #video, #video-clipping, #video-games

DraftKings shares plans for launch of NFT collectibles marketplace

DraftKings is charging into the NFT game, announcing a marketplace aimed at curating sports and entertainment-themed digital collectibles for its audience of enthusiasts. The platform is “debuting later this summer,” and showcases another potentially lucrative expansion for the fantasy sports betting company.

DraftKings is entering a market that is both crowded and sparse — with plenty of NFT marketplace options for today’s niche group of collectors though offerings are still light when considering the billions that have flowed through the space in the first several months of the year. This week, investors gave NFT marketplace OpenSea a $1.5 billion valuation. Dapper Labs, which makes NBA Top Shot, recently raised at a reported $7.5 billion valuation.

Dapper’s existing sway in the space will leave DraftKings pursuing opportunities outside exclusive league partnerships. NBA Top Shot allows players to buy “Moments” from NBA history, clips of actual game and player footage which it has access to via league and players association partnerships. In addition to the NBA, Dapper has already partnered with other leagues.

DraftKings foothold in the space will come from an exclusive partnership with Autograph, a newly-launched NFT startup co-founded by quarterback Tom Brady. The company has inked exclusive NFT deals with some top athletes including Tiger Woods, Wayne Gretzky, Derek Jeter, Naomi Osaka and Tony Hawk, hoping to build out its platform as the hub for sports personality collectibles.

Aside from the partnerships, DraftKings is hoping to get a leg up in the space by further simplifying the user onboarding process, allowing users to buy NFTs without loading a wallet with cryptocurrency, instead purchasing with USD. When the platform launches users will be able to purchase NFTs from DraftKings and resell or trade them through the platform.

For DraftKings, which has raised some $720 million in funding since launch in 2012, the NFT expansion could offer an opportunity of funneling their existing audience into the new vertical. Few existing tech startups have made noteworthy expansions into the NFT world despite plenty of hype and investor interest. DraftKings co-founder Matt Kalish tells TechCrunch that the startup’s devoted community is its biggest asset to winning in the rising space.

“DraftKings has millions of people in our community who show up to out platform every day and every week,” Kalish says. “We think our biggest advantage is the strength and size of our community… [We] will bring a lot of eyeballs to the table.”

#autograph, #blockchain, #co-founder, #cryptocurrency, #daily-fantasy-sports, #derek-jeter, #draftkings, #games, #gaming, #national-basketball-association, #nba, #nfts, #player, #quarterback, #startups, #tc, #tom-brady, #tony-hawk

Iceland’s Frumtak Ventures raises its third, $57M, fund focusing on post-seed and Series A

Frumtak Ventures, one of the few VCs in Iceland, has raised its third fund, Frumtak III. The $57 million (ISK 7b, €48m) fund will focus on post-seed and Series A startups. The firm says its typical ticket size will range from $1-5 million (€850k-4.2m).

Frumtak was a somewhat lesser-known European VC until it popped up on our radar as the backers behind the Controlant real-time supply chain monitoring startup, the technology from which was pictured beside Andrew Cuomo, governor of New York, when he held up a box containing the first-ever shipment of the COVID-19 vaccine to the city. Controlant has been a key player in the global distribution cold chain associated with vaccines.

However, the fund has also backed digital banking solutions provider Meniga, digital therapeutics scaleup Sidekick Health, travel CRM and travel booking system provider Kaptio, live event and fan engagement data analytics company Activity Stream, and Data Market, which was acquired by Qlik in 2014.

Svana Gunnarsdottir, managing partner of Frumtak Ventures said: “We are proud of the accomplishments of our portfolio companies and their teams, as well as the investment decisions we made through our first two funds. We look forward to continuing our support of high-potential startups and brilliant founders with Frumtak III. We are also grateful for the confidence shown to us by our LP’s, many of whom have been with us since our first fund in 2009.”

Concurrently, Asthildur Otharsdottir has joined the firm as partner and Frumtak III’s lead investment manager. Otharsdottir was previously Frumtak’s Chairman for 6 years and has been on the board of Marel and Icelandair Group.

#andrew-cuomo, #business, #chairman, #companies, #crm, #europe, #frumtak-ventures, #governor, #iceland, #managing-partner, #meniga, #new-york, #player, #private-equity, #startup-company, #tc

Facebook’s entry into VR advertising isn’t going too well

Facebook’s efforts to bring advertising to the Oculus virtual reality platform it has spent billions of dollars building out doesn’t seem to be off to a great start.

The company announced last week that they were planning to roll out their first in-game ads inside the title Blaston from the prolific VR game developer Resolution Games, and just days later the game studio has shared that after hearing an earful from users they’ve decided to abandon the ad rollout.

“After listening to player feedback, we realize that Blaston isn’t the best fit for this type of advertising test,” a tweet from the Blaston account read. “Therefore, we no longer plan to implement the test. We look forward to seeing you in the arena and hope you try the Crackdown Update that went live today!”

This potential ad rollout had been particularly noteworthy because the ads were being tested inside a title from a third-party developer. Facebook has purchased a handful of VR studios in recent months and owns a number of the most popular Quest titles inside its marketplace, so the opportunity to roll out advertising with a third-party partner gave Facebook an chance to frame the advertising rollout as a way for other developers to open up their monetization channels, rather than for Facebook to do so.

The announcement last week still brought out plenty of critics in the VR community who weren’t thrilled about Facebook’s broader struggles with balancing advertising efforts with user privacy, but other users seemed to be more annoyed by the prospect of ads being rolled out inside a paid title they had already purchased. Blaston retails for $9.99 in the Oculus store.

Update: Resolution Games reached out to TechCrunch with a statement, floating the possibility of further ad tests down the road inside one of the developer’s free apps. “To make it clear, we realize that Blaston isn’t the best fit for this type of advertising test. As an alternative, we are looking to see if it is feasible to move this small, temporary test to our free game, Bait! sometime in the future.”

Resolution Games abandoning the test before it even started is an early setback for Facebook’s VR advertising efforts that showcases just how skeptical the Oculus platform’s most vocal users still are of Facebook. In a blog post last week, Facebook sought to address early concerns with what user data would be used to serve up advertising in VR, specifically noting that conversations recorded by the headset’s microphone and images analyzed by the onboard tracking cameras would not be used.

Facebook saw considerable backlash last year from virtual reality fans when they shared that new headset owners would need a Facebook account in order to activate their devices. While criticism poured in following the announcement, the recently released $299 Quest 2 headset has already outsold all of Facebook’s previous VR devices combined, the company has said.

We’ve reached out to Facebook for comment.

 

#computing, #facebook, #facebook-horizon, #mixed-reality, #oculus, #oculus-quest, #player, #software, #tc, #virtual-reality, #vr, #wearable-devices

Roku debuts a 15-minute weekly series that recommends what to watch next

Roku is expanding its programming for its free content hub, The Roku Channel, with today’s launch of its own weekly entertainment program called “Roku Recommends.” The 15-minute show will leverage Roku’s data to highlight the Top 5 titles for viewers to stream that week. While not exactly “original programming” the way that Roku’s recent additions of its acquired Quibi content is, the series will run only on Roku, where it can be found in The Roku Channel and Featured Free, with new episodes every Thursday.

The series is the first production to emerge from the new Roku Brand Studio — a studio that aims to produce video ads and other custom branded content for ad partners. The show is produced by Funny Or Die and Mike Farah, Beth Belew, and Jim Ziegler serve as executive producers.

The show’s co-hosts include entertainment reporter and AfterBuzz TV co-founder Maria Menounos and former NFL player, Andrew “Hawk” Hawkins. The duo will present the Top 5 titles to viewers. These recommended shows or movies may come from any of the thousands of channels across the Roku platform, based on data exclusive to the platform.

“According to Nielsen data, the average streamer spends more than seven minutes searching for what to watch next,” said Chris Bruss, Head of Roku Brand Studio, in a statement. “We are uniquely positioned to use our trending data both to help consumers find incredible movies and shows and to help advertisers go beyond the traditional 30-second ad to entertain streamers who otherwise spend time in ad-free, subscription-only environments,” he added.

The series will also allow for ad sponsors. The company says it has already signed on several national advertisers, starting with Walmart, to sponsor the program. Advertisers will have access to Roku’s Measurement Partner Program to determine whether or not their integration reaches subscription video on-demand (SVOD)-only streaming users, as well as view other metrics about their video ad campaign’s reach, brand perception and impact.

The series comes at a time when the streaming landscape is shifting. Today’s streaming services regularly serve up recommended content based on what their customers are watching — Netflix, for example, shows rows of popular and trending content, as well as a Top 10 list of newly popular titles. But as the number of available streaming services grows, larger entities merge, and content jumps around as licensing agreements end and start, consumers may be more in need of a set of current recommendations from across channels and services, not just those isolated inside one service.

Amazon Fire TV’s update recently addressed this need with the introduction of a new “Find” feature that aims to make it easier for users to search and browse movies, shows and free content across its platform. Roku, however, didn’t have a recommendation system of its own.

It’s also interesting to see that Roku is willing to use its proprietary streaming data in this way — something it could choose to do more with further down the road to help build out a broader set of recommendations, if it chose.

 

#cord-cutting, #funny-or-die, #internet-television, #media, #multimedia, #player, #quibi, #roku, #streaming, #streaming-media, #streaming-services, #television, #tv, #walmart

Synctera raises $33M Series A to pair fintechs with banks

Synctera, which aims to serve as a matchmaker for community banks and fintechs, has raised $33 million in a Series A round of funding led by Fin VC.

The raise comes just under six months after the fintech raised $12.4 million in a seed round of funding.

New investors Mastercard and Gaingels also participated in the latest round, which included follow-on investments from Lightspeed Venture Partners, Diagram Ventures, SciFi Ventures and Scribble Ventures. Several angel investors put money in the Series A including Omri Dahan, Marqeta’s Chief Revenue Officer, Feedzai Chairman and CEO Nuno Sebastiao and Greenlight co-founder and CEO Tim Sheehan. 

Alongside the Series A, Synctera is also announcing its commitment to the new Cap Table Coalition – which includes funding from Gaingels, Neythri Futures Fund, Plexo Capital and over 20 angels – alongside other startups by allocating 10% of all funding rounds to “traditionally marginalized,” or underrepresented, investors via an SPV. (Fellow fintech Finix led the initiative earlier this year before forming this coalition but more on that later).

“This has exposed us to find great folks who we otherwise might not have known,” said Synctera’s co-founder and CEO Peter Hazlehurst. “That’s why we pledge to reserve 10% of this round and all future rounds to diverse investors.”

In a nutshell, San Francisco-based Synctera has developed a platform designed to help facilitate partnership banking. It was founded on the premise that some community banks and credit unions are actually turning down deals with young fintechs because the relationships can be too complicated or time-consuming to manage. Synctera’s goal is to connect community banks and fintechs to streamline the process with its “Banking-as-a-Service” (BaaS) platform.

TechCrunch recently caught up with Hazlehurst, who most recently served as former head of Uber Money and previously also led development of Google Wallet and products related to its payments system.

Put simply, Synctera wants to make it easier for community banks and fintechs to partner with each other. It examines banks’ needs and then sets them up with a fintech that is best suited to meet those needs. It claims to “do the work for both parties,” managing the partnership from its back-end platform, while dealing with issues like regulatory compliance, which can be a deterrent for some companies. The process of managing, reconciling and billing banks can result in “a lot of operational overhead and complexity,” according to the company.

The company says it’s built a “diverse” marketplace of banks and fintech companies so that it can apply a “personalized touch to each match” and make sure that the parties “align on geography, brand ethos, and desired business goals.”

So far, Synctera has signed three banks with plans to sign on three more this month. The startup has already paired Coastal Community Bank – a local bank serving the greater Puget Sound community – with One, a new digital banking platform, and Ellevest, a new fintech. 

By using Synctera’s platform, the company claims, banks can more freely allow their fintech counterparts to offer FDIC-insured mobile checking, debit cards, savings accounts or innovations in payments to their prospective customers, the company claims. They can also make more money doing so, Hazlehurst said, by bringing in more revenue beyond interchange fees.

“Like most small businesses, community banks have been hit hard by COVID-19,” he added. “We hope to further diversify community banks’ revenue streams.”

Banks can also more easily manage multiple relationships with various fintechs as the companies agree to adopt Synctera’s tech stack, the company claims.

“We build a single dashboard for a bank, so there’s a consolidated position across all fintechs,” Hazlehurst told me at the time of the company’s last raise. “It’s all about visibility for the bank.”

Currently Synctera has about 50 employees, including about two dozen engineers, most of whom are located in Canada, Hazlehurst said. The company plans to ramp up to 160 employees by year’s end with a focus on engineering, sales, marketing and customer success staff.

Looking ahead, Hazlehurst predicts that the fourth quarter will be “all about support for small business fintechs.”

“We want to create a neobank for gig economy workers, and want to add lending as a service,” he said. “But our next big phase is to onboard a lot of fintechs, and learn from them.”

Logan Allin, managing general partner and founder at Fin VC, believes that Banking-as-a-Service in general will transform legacy national and regional banks, credit unions, fintecs, corporate tech and retailers alike “as these players either seek to vertically integrate financial services or accelerate their digitization process.”

Synctera, he adds, has taken an approach with its tech stack that allows for integration with legacy community banks and their respective cores. This, Allin believes, will help ensure a “cloud native and scalable model” and made it an attractive investment. (Fin VC has also backed the likes of other fintechs such as Pipe and SoFi).

“Synctera’s peers are simply abstracting bank cores and serving as ‘API wrappers’ in a kludgy short-term approach and having come from the legacy bank and modern fintech worlds, we recognized that these players had not built sufficiently strong bridges across the ecosystem,” Allin told TechCrunch.

For his part, Finix Founder Richie Serna is thrilled that other startups are following his lead in the pledge to make their cap tables more diverse.

“After Finix announced our special purpose vehicle for Black and Latinx investors, the response was overwhelmingly positive,” he told TechCrunch. “Startups in every sector and at every stage have asked us how to recreate our SPV. In response, we started the Cap Table Coalition to make it as easy as possible for more high-growth startups, like Synctera, to take control over their cap tables,” said Richie Serna, CEO and co-founder of Finix. “We see this as an inflection point that will completely upend how the VC world functions.”

Meanwhile, Synctera is not the only player trying to help banks and fintechs forge partnerships. Last week, TechCrunch reported on Visa said it has expanded its Visa Fintech Partner Connect program, which is designed to help financial institutions quickly connect with a “vetted and curated” set of technology providers. 

#api, #articles, #bank, #banking-as-a-service, #canada, #diversity, #economy, #fdic, #finance, #financial-services, #financial-technology, #finix, #fintech, #founder, #funding, #fundings-exits, #google, #greenlight, #head, #lightspeed-venture-partners, #marqeta, #mastercard, #peter-hazlehurst, #player, #plexo-capital, #recent-funding, #richie-serna, #san-francisco, #startup, #startups, #uber, #venture-capital

Brazilian proptech startup QuintoAndar lands $300M at a $4B valuation

Fintech and proptech are two sectors that are seeing exploding growth in Latin America, as financial services and real estate are two categories in particular dire need of innovation in a region.

Brazil’s QuintoAndar, which has developed a real estate marketplace focused on rentals and sales, has seen impressive growth in recent years. And today, the São Paulo-based proptech has announced it has closed on $300 million in a Series E round of funding that values it at an impressive $4 billion.

The round is notable for a few reasons. For one, the valuation – high by any standards but especially for a LatAm company – represents an increase of four times from when QuintoAndar raised a $250 million Series D in September 2019.

It’s also noteworthy who is backing the company. Silicon Valley-based Ribbit Capital led its Series E financing, which also included participation from SoftBank’s LatAm-focused Innovation Fund, LTS, Maverik, Alta Park, an undisclosed US-based asset manager fund with over $2 trillion in AUM, Kaszek Ventures, Dragoneer and Accel partner Kevin Efrusy.

Having backed the likes of Coinbase, Robinhood and CreditKarma, Ribbit Capital has historically focused on early-stage investments in the fintech space. Its bet on QuintoAndar represents clear faith in what the company is building, as well as its confidence in the startup’s plans to branch out from its current model into a one-stop real estate shop that also offers mortgage, title, insurance and escrow services.

The latest round brings QuintoAndar’s total raised since its 2013 inception to $635 million.

Ribbit Capital Partner Nick Huber said Quintoandar has over the years built “a unique and trusted brand in Brazil” for those looking for a place to call home.

“Whether you are looking to buy or to rent, QuintoAndar can support customers through the entire transaction process: from browsing verified inventory to signing the final contracts,” Huber told TechCrunch. “The ability to serve customers’ needs through each phase of life and to do so from start to finish is a unique capability, both in Brazil and around the world.”

QuintoAndar describes itself as an “end-to-end solution for long-term rentals” that, among other things, connects potential tenants to landlords and vice versa. Last year, it expanded also into connecting a home buyers to sellers.

Image Credits: QuintoAndar

TechCrunch spoke with co-founder and CEO Gabriel Braga and he shared details around the growth that has attracted such a bevy of high-profile investors.

Like most other businesses around the world, QuintoAndar braced itself for the worst when the COVID-19 pandemic hit last year – especially considering one core piece of its business is to guarantee rents to the landlords on its platform.

“In the beginning, we were afraid of the implications of the crisis but we were able to honor our commitments,” Braga said. “In retrospect, the pandemic was a big test for our business model and it has validated the strength and defensibility of our binsess on the credit side and reinforced our value proposition to tenants and landlords. So after the initial scary moments, we actually felt even more confident in the business that we are building.”

QuintoAndar describes itself as “a distant market leader” with more than 100,000 rentals under management and about 10,000 new rentals per month. Its rental platform is live in 40 cities across Brazil, while its homebuying marketplace is live in 4. Part of its plans with the new capital is to expand into new markets within Brazil, as well as in Latin America as a whole.

The startup claims that, in less than a year, QuintoAndar managed to aggregate the largest inventory among digital transactional platforms. It now offers more than 60,000 properties for sale across Sao Paulo, Rio de Janeiro, Belho Horizonte and Porto Alegre. To give greater context around the company’s growth of that side of its platform: in its first year of operation, QuintoAndar closed more than 1,000 transactions. It has now surpassed the mark of 8,000 transactions in annualized terms, growing between 50% and 100% quarter over quarter.

As for the rentals side of its business, Braga said QuintoAndar has more than 100,000 rentals under management and is closing about 10,000 new rentals per month. The company is not profitable as it’s focused on growth, although it is unit economics are particularly favorable in certain markets such as Sao Paulo, which is financing some of its growth in other cities, according to Braga.

Now, the 2,000-person company is looking to begin its global expansion with plans to enter the Mexican market later this year. With that, Braga said QuintoAndar is looking to hire “top-tier” talent from all over.

“We want to invest a lot in our product and tech core,” he said. “So we’re trying to bring in more senior people from abroad, on a global basis.”

Some history

CEO Braga and CTO André Penha came up with the idea for QuintoAndar after receiving their MBAs at Stanford University. As many startups do, the company was founded out of Braga’s personal “nightmare” of an experience – in this case, of trying to rent an apartment in Sao Paulo.

The search process, he recalls, was difficult as there was not enough information available online and renters were forced to provide a guarantor, or co-signer, from the same city or pay rent insurance, which Braga described as “very expensive.”

“Overall, I felt it was a very inefficient and fragmented process with no transparency or tech,” Braga told me at the time of the company’s last raise. “There was all this friction and high cost involved, just real tangible problems to solve.”

The concept for QuintoAndar (which can be translated literally to “Fifth Floor” in Portuguese) was born.

“Little by little, we created a platform that consolidated supply and inventory in a uniform way,” Braga said.

The company took the search phase online for the first time, according to Braga. It also eliminated the need for tenants to provide a guarantor, thereby saving them money. On the other side, QuintoAndar also works to help protect the landlord with the guarantee that they will get their rent “on time every month,” Braga said.

It’s been interesting watching the company evolve and grow over time, just as it’s been fascinating seeing the region’s startup scene mature and shine in recent years.

#articles, #brazil, #coinbase, #cto, #finance, #financial-services, #funding, #fundings-exits, #kaszek-ventures, #kevin-efrusy, #latin-america, #player, #property-technology, #proptech, #quintoandar, #real-estate, #recent-funding, #renting, #ribbit-capital, #sao-paulo, #series-e, #silicon-valley, #softbank, #stanford-university, #startup, #startups, #techcrunch, #technology, #venture-capital

API security startup 42Crunch raises $17M Series A led by Energy Impact Partners

With security top of mind in many companies these days, especially given how many staff work at home, there is one area that remains chronically ignored: that of the world of APIs which power all of the platforms we all use every day.

Now, a significant player in the cybersecurity of APIs is super-charging its offering. 42Crunch, an API security startup, has raised $17 million in a Series A round led by Energy Impact Partners. Adara Ventures also participated.

42Crunch has a ‘micro firewall’ for APIs which aims to protect against attacks listed in the OWASP Top 10 for API Security. It is used by companies such as Mulesoft, Ford Motors, and Qualys.

CEO and Co-Founder of 42Crunch, Jacques Declas said: “What do the recent data breaches at Tesla, Facebook, and Clubhouse have in common? They all came about due to API vulnerabilities. 83% of internet traffic now comes from APIs but traditional firewall approaches are not adapted to cope with the specific threats that APIs create.”

The three French co-founders came up with the idea after being the number of APIs used by customers proliferate.

The normal approach to firewalls – relying on patterns and signatures to detect potential incursions – does not work when it comes to API traffic. 42Crunch claims its platform can individually protect each API, and prevent common cyber-attacks such as injections but also API-specific attacks.

Isabelle Mauny, Co-founder and CTO of 42Crunch, said: “Protecting APIs from threats at runtime is only part of the story. APIs will only be truly secured when security becomes part of the developer’s flow, rather than an afterthought.”

Nazo Moosa, Co-Managing Partner, Energy Impact Partners added: “42Crunch’s ‘shift-left approach’ to the creation of secure-by-design APIs fits strongly with EIP’s vision of protecting global critical infrastructure. The company’s six-digit customer wins last year were catalytic to our decision to lead the round.”

#adara-ventures, #api, #apis, #computing, #energy-impact-partners, #europe, #facebook, #firewall, #ford-motors, #internet-traffic, #mulesoft, #player, #qualys, #software-engineering, #tc, #technology

Xbox teams up with Tencent’s Honor of Kings maker TiMi Studios

TiMi Studios, one of the world’s most lucrative game makers and is part of Tencent’s gargantuan digital entertainment empire, said Thursday that it has struck a strategic partnership with Xbox.

The succinct announcement did not mention whether the tie-up is for content development or Xbox’s console distribution in China but said more details will be unveiled for the “deep partnership” by the end of this year.

Established in 2008 within Tencent, TiMi is behind popular mobile titles such as Honor of Kings and Call of Duty Mobile. In 2020, Honor of Kings alone generated close to $2.5 billion in player spending, according to market research company SensorTower. In all, TiMi pocketed $10 billion in revenue last year, according to a report from Reuters citing people with knowledge.

The partnership could help TiMi build a name globally by converting its mobile titles into console plays for Microsoft’s Xbox. TiMi has been trying to strengthen its own brand and distinguish itself from other Tencent gaming clusters, such as its internal rival LightSpeed & Quantum Studio, which is known for PUBG Mobile.

TiMi operates a branch in Los Angeles and said in January 2020 that it planned to “triple” its headcount in North America, adding that building high-budget, high-quality AAA mobile games was core to its global strategy. There are clues in a recruitment notice posted recently by a TiMi employee: The unit is hiring developers for an upcoming AAA title that is benchmarked against the Oasis, a massively multiplayer online game that evolves into a virtual society in the fiction and film Ready Player One. Oasis is played via a virtual reality headset.

Xbox’s latest Series X and Series S are to debut in China imminently, though the launch doesn’t appear to be linked to the Tencent deal. Sony’s Playstation 5 just hit the shelves in China in late April. Nintendo Switch distributes in China through a partnership with Tencent sealed in 2019.

Chinese console players often resort to grey markets for foreign editions because the list of Chinese titles approved by local authorities is tiny compared to what’s available outside the country. But these grey markets, both online and offline, are susceptible to ongoing clampdown. Most recently in March, product listings by multiple top sellers of imported console games vanished from Alibaba’s Taobao marketplace.

#asia, #call-of-duty, #china, #gadgets, #gaming, #honor-of-kings, #los-angeles, #nintendo, #nintendo-switch, #player, #ready-player-one, #tencent, #video-games, #video-gaming, #virtual-reality, #xbox

Direct-to-consumer orthodontic startup Impress raises $50M to scale across Europe

As the famous phrase goes, ‘software is eating the world’ and now software is eating dentistry. Or, perhaps more accurately, the arena of orthodontics — the specialty of dentistry that deals with things like braces — is slowly but surely being digitalized.

To whit, Impress, a Southern European player in direct-to-consumer orthodontics, has raised a $50 million Series A funding round led by CareCapital (a dental division of Hillhouse Capital in Asia), along with Nickleby capital, UNIQA Ventures, and investors including Michael Linse, Valentin Pitarque, Peter Schiff, Elliot Dornbusch, and others. All existing shareholders, such as TA Ventures and Bynd VC, also participated. 

Impress is an homage to the direct-to-consumer startups in this area in the US such as SmileDirect< and now plans to scale across Europe from its existing bases in Spain, Italy, Portugal, UK, and France.

The company was founded in 2019 in Barcelona by orthodontist Dr. Khaled Kasem and serial entrepreneurs Diliara and Vladimir Lupenko.

Speaking from Barclenoa, Lupenko told me that the idea was to “combine the best orthodontic tradition with the most innovative technology in the sector.”

As things stand, most of the time, consumers can usually only access cosmetic teeth alignment treatments or orthodontic medical treatments in conventional clinics. The new wave of clinics employs 3D scans and panoramic X-rays to check nerve and bone health.

Impress’s model is to offer these high-quality medical treatments directly to consumers, by developing its own chain of orthodontic clinics, which also put an emphasis on design and a ‘modern’ patient experience, it says.

As Diliara Lupenko says: “We didn’t copy what other companies in the space were doing and approached the market from a different angle from the get-go. We doubled down on the doctor-led digital model which brought us way better conversion rates and treatment quality even though on paper it looked complex in the beginning. It’s still very complex but we were able to crack it and scale exponentially.”

Impress now has 75 clinics in Spain, Italy, the UK, France, and Portugal which optimize costs and automate key parts of the value chain.

It now says it’s approaching €50m in annual run-rate and is projected to grow to €150m of revenue in 12 months. 

Andreas Nemeth, managing partner of UNIQA Ventures GmbH commented: “Impress’s customer-centric focus, as well as its demonstrated ability to blitzscale, attracted us to the business. Vladimir and his team leverage technology to create a seamless customer journey for invisible orthodontics and optimized their cost structure in a unique way using software.”

#andreas-nemeth, #asia, #barcelona, #dentistry, #dentists, #europe, #france, #hillhouse-capital, #italy, #managing-partner, #michael-linse, #orthodontist, #player, #portugal, #spain, #ta-ventures, #tc, #united-kingdom, #united-states

Sequoia Games looks to capitalize on NBA Top Shot fever with an AR tabletop game

It’s the golden age of collectibles and legacy institutions are looking to move beyond trading cards, embracing new tech that brings the fandom together online. Sequoia Games, a new game studio launching out of stealth, is aiming for a hit with its tabletop AR game that’s looking to find an audience in a post-Top Shot world.

With a game that seems to be trading cards meets Catan meets NFTs meets augmented reality, Flex NBA is aiming to capture some of the magic that Dapper Labs did with NBA Top Shot, albeit with a title reliant on physical collectibles and a tabletop game.

Collectibles are incredibly hot right now and while there’s been a lot of attention on digital-only collectibles, Sequoia Games’ hybrid approach is probably one that will likely find some new audience segments. The game is centered around these hexagonal discs that function like trading cards but can be tracked inside its mobile app with 3D animations of the players superimposed on top of them. With mechanics similar to other popular trading card games, users can augment those tiles with power-up tiles.

Users get a handful of tiles that vary depending on the tier of their Kickstarter pledge, but going forward, the startup is planning to sell the tiles in randomized packs as well.

Image via Sequoia Games

Users register these tiles inside their app where the ownership of individual tiles is tracked across the network using something that sounds an awful lot like a blockchain — though that’s a word the team was very careful to avoid using. What’s interesting is that once the tiles are registered users can play the game in-person or online. The company is working on first-party marketplace for the tiles, though buyers will have to actually purchase and ship the physical tiles even if they are only playing on mobile.

Like Top Shot, Sequoia Games boasts an official partnership with the NBA and national players’ association. Unlike Dapper Labs, they’re not currently sitting on hundreds of millions of dollars of venture money. The startup’s founder says they’ve raised a modest seed round and are in the process of closing a more sizable Series A.

Also unlike Top Shot, which can — and has been able to — rapidly adjust supply of new moments to meet demand, Sequoia Games is stuck in the physical world and is thus a little more supply-confined — one of the reasons they’ve chosen to do a Kickstarter to gauge interest from potential users early-on.

Prices for the tiers of Kickstarter tiers vary pretty wildly, with a $35 basic pack that includes the most common tiles and a $699 “Supreme Flex Domination Pack” that boast rarer items like MVP-level player tiles. The startup plans to start shipping out packs in July.

#gaming, #national-basketball-association, #nba, #player, #tc

YouTube announces a $100M fund to reward top YouTube Shorts creators over 2021-2022

YouTube is giving its TikTok competitor, YouTube Shorts, an injection of cash to help it better compete with rivals. The company today introduced the YouTube Shorts Fund, a $100 million fund that will pay YouTube Shorts creators for their most viewed and most engaging content over the course of 2021 and 2022. Creators can’t apply for the fund to help with content production, however. Instead, YouTube will reach out to creators each month whose videos exceeded certain milestones to reward them for their contributions.

The company expects to dole out money to “thousands” of creators every month, it says. And these creators don’t need to be in the YouTube Partner Program to qualify — anyone is eligible to receive rewards by creating original content for YouTube Shorts.

YouTube declined to share more specific details about the fund’s operations at this time, including how creators will be vetted or what specific thresholds for receiving payments YouTube has in mind. It also wouldn’t offer details as to whether YouTube creators could receive multiple payments in the same pay period if they had several videos that would qualify, or any other details.

And while the company stressed that only “original” content would gain rewards, it didn’t clarify how it will go about checking to ensure the content isn’t already uploaded on another platform, like Reels, Snapchat, or TikTok.

Image Credits: YouTube

Instead, YouTube said that more details about the payments and qualifications would be available closer to the fund’s launch, which is expected sometime in the next few months. It pointed out also that it has paid out over $30 billion to creators, artists and media companies over the last three years, and it expects the new fund will help it to build a long-term monetization model for Shorts on YouTube going forward.

YouTube isn’t the only platform to take on the threat of TikTok by throwing cash at the problem.

Snapchat has been paying $1 million per day to creators for their top-performing videos on Spotlight, its own TikTok clone, minting several millionaires in the process. Facebook-owned Instagram, meanwhile, made lucrative offers to top TikTok stars to use its new service, Reels, The WSJ reported last year.

Despite the size of these efforts, TikTok’s own Creator Fund remains a competitive force. It announced its fund would grow to over $1 billion in the U.S. in the next three years and would be more than double that on a global basis. This March, it also added another requirement to receiving the fund’s payments, including having at least 100K authentic views in the last 30 days — a signal that it’s setting the bar even higher, given its current success.

Alongside the debut of YouTube’s Shorts Fund, the company also noted it’s expanding its Shorts player feature across more place on YouTube to help viewers discover this short-form video content, will begin testing ads for Shorts, and will be rolling out the new “remix audio” feature to all Shorts creators.

Image Credits: YouTube

This somewhat controversial feature allows Shorts creators to sample sounds from other YouTube videos for use in their Shorts, instead of only using song clips or original audio. Some YouTube creators were surprised to find the feature was opt-out by default — meaning their content could be used on YouTube Shorts unless they took the time to turn this setting off or removed their video from YouTube.

Since its launch, YouTube has also rolled out other features to Shorts, including support for captions, the ability to record up to 60 seconds with the Shorts camera, the ability to add clips from your phone’s gallery to your recordings made with the Shorts camera, and the ability use basic filters to color correct videos. YouTube says more effects will arrive in the future.

But even as YouTube tries to catch up with TikTok on feature sets, TikTok has been expanding its own effects lineup and becoming more YouTube-like by supporting longer videos. Some TikTok creators, for example, have recently been given the ability to record videos 3 minutes in lengths, instead of just 60 seconds.

YouTube says the new fund will roll out in the coming months and it will listen to the feedback from the creator community to develop a long-term program designed for YouTube Shorts.

#computing, #creator-fund, #facebook, #forward, #instagram, #media, #mobile, #mobile-applications, #player, #shorts, #snapchat, #social, #software, #tiktok, #united-states, #video-hosting, #youtube, #youtube-shorts

ConsenSys raises $65M from JP Morgan, Mastercard, UBS to build infrastructure for DeFi

ConsenSys, a key player in crypto and a major proponent of the Ethereum blockchain, has raised a $65 million funding round from J.P. Morgan, Mastercard, and UBS AG, as well as major blockchain companies Protocol Labs, the Maker Foundation, Fenbushi, The LAO and Alameda Research. Additional investors include CMT Digital and the Greater Bay Area Homeland Development Fund. As well as fiat, several funds invested with Ethereum-based stablecoins, DAI and USDC, as consideration.

Sources told TechCrunch that this is an unpriced round because of the valuation risk, and the funding instrument is “full”, so the round is being closed now.

The fundraise looks like a highly strategic one, based around the idea that traditional institutions will need visibility into the increasingly influential world of ‘decentralized finance’ (DeFi) and the Web3 applications being developed on the Ethereum blockchain.

In a statement on the fundraise, ConsenSys said it has been through a “period of strategic evolution and growth”, but most outside observers would agree that this is that’s something of an understatement.

After a period of quite a lot of ‘creative disruption’ to put it mildly (at one point a couple of years ago, ConsenSys seemed to have everything from a VC fund, to an accelerator, to multiple startups under its wing), the company has restructured to form two main arms: ConsenSys, the core software business; and ConsenSys Mesh, the investment arm, incubator, and portfolio. It also acquired the Quorum product from J.P. Morgan which has given it a deeper bench into the enterprise blockchain ecosystem. This means it now has a very key product suite for the Etherum platform, including products such as Codefi, Diligence, Infura, MetaMask, Truffle, and Quorum.

This suite allows it to serve both public and private permissioned blockchain networks. It can also support Layer 2 Ethereum networks, as well as facilitate access to adjacent protocols like IPFS, Filecoin, and others. ConsenSys is also a major contributor to the Ethereum 2.0 project, for obvious reasons.

Commenting on the fundraise, Joseph Lubin, founder of ConsenSys and co-founder, Ethreum said in a statement: “When we set out to raise a round, it was important to us to patiently construct a diverse cap table, consistent with our belief that similar to how the web developed, the whole economy would join the revolutionaries on a next-generation protocol. ConsenSys’ software stack represents access to a new automated objective trust foundation enabled by decentralized protocols like Ethereum. We are proud to partner with preeminent financial firms alongside leading crypto companies to further converge the centralized and decentralized financial domains at this particularly exciting time of growth for ConsenSys and the entire industry.”

With financial institutions able to see, ‘in public’ DeFi happening on Ethereuem, because of the public chain, they can see how much of the financial system is gradually starting to merge with the blockchain world. So it’s becoming clearer what attracts these major institutions.

Mike Dargan, Head of Group Technology at UBS said: “Our investment in ConsenSys adds proven expertise in distributed ledger technology to our UBS Next portfolio.”

For MasterCard this appears to be not just a pure investment – Consensys has been working with it on a private permissioned network.

Raj Dhamodharan, executive vice president of digital asset and blockchain products and partnerships at Mastercard said: “Enterprise Ethereum is a key infrastructure on which we and our partners are building payment and non-payment applications to power the future of commerce… Our investment and partnership with ConsenSys helps us bring secure and performant Enterprise Ethereum capabilities to our customers.”

Colleen Sullivan, Co-Founder and CEO of CMT Digital said: “ConsenSys is the pioneer in bridging the gaps across traditional finance, centralized crypto, and DeFi, and more broadly, between Web 2.0 and Web 3.0. We are proud to participate in this funding round as the ConsenSys team continues to pave the way for global users  — retail and institutional — to easily access the crypto ecosystem.”

TechCrunch understands that the fundraise was started around the time of the Quorum acquisition, last June. The $65 million round is in majority fiat currency as opposed to cryptocurrency and is an adjunct to the round done with JP Morgan last summer.

The presence of significant crypto players such as Maker Protocol Labs shows the significance of the fund-raise, beyond the simple transaction. The announcement also comes just ahead of the Coinbase IPO, which makes for interesting timing.

ConsenSys’ products have become highly significant in the world where developers, enterprises, and consumers meet blockchain and crypto. In its statement, the company claims MetaMask now has over three million monthly active users across mobile and desktop, a 3x increase in the last five or six months, it says. This is roughly the same amount of monthly active customers as Coinbase.

The ConsenSys announcement comes just ahead of the Coinbase IPO. While Coinbase is acting as an exchange to turn fiat into crypto and vice versa, it has also been getting into DeFi of late. Where there are also resemblances with ConsenSys, is that Coinbase, with 3 million users, is used as a wallet, and MetMask, which also has 3 million users, can also be used as a wallet. The comparison ends there, but it’s certainly interesting, given Coinbase’s $100 billion valuation.

As Jeremy Millar, Chief Development Officer, told me: “Coinbase has pioneered an exchange, in one of the world’s most regulated financial markets, the US. And it has helped drive significant interest in the space. We enjoy a very positive relationship with Coinbase, trying to further enable the ecosystem and adoption of the technology.”

The background to this raise is that a lot of early-stage blockchain and crypto companies have been raising a lot of money recently, but much of this has been through crypto investment firms. Only a handful of Silicon Valley VCs are backing blockchain, such as Andreessen Horowitz.

What’s interesting about this announcement is that these incumbent financial giants are not only taking an interest, but working alongside ConsenSys to both invest and build products on Ethereum.

It’s ConsenSys’ view that every payment service provider, banks will need this financial infrastructure in the future, especially for DeFI.

Given there is roughly $43 billion collateralized in DeFi, it’s increasingly the case that major investors are involved, and there are increasingly higher returns than traditional yield and bond or bond yields.

The moves by Central Banks into digital currencies is also forcing companies and governments to realize digital currency, and the ‘blockchain rails’ on which it runs, is here to stay. This is what is suggested by the Greater Bay Area Homeland Development Fund’s (a Shenzhen / Hong Kong joint partnership) decision to get involved.

Another aspect of this story is that ConsenSys is sitting on some extremely powerful products. Consensys has six products that serve three different types of people.

Service developers who are building on Ethereum are using Truffle to develop smart contracts. Users joining the NFT hype are using MetaMask underneath it all.

The MetaMask wallet allows users to swap one token for another. This has proved quite lucrative for ConsenSys, which says it has resulted in $1.8 billion in volume in decentralized exchange use. ConsenSys takes a 0.875 percent cut on every swap that it serves.

And institutions are using Consensys’ products. The company says more than 150,000 developers use Infura’s APIs, and 4.5 million developers create and deploy smart contracts using Truffle, while its Protocols group — developer of Hyperledger Besu and ConsenSys Quorum — are building Central Bank Digital Currencies (CBDCs) for six central banks, says Consensys.

Consensys is also making hay with the NFT boom. Developers are using Consensys products for the nodes and infrastructure on Ethereum which stores the NFT files.

Consensys is also riding two waves. One is the developer eave and the other is the financial system wave.

As a spokesperson said: “Where the interest in money and invention started happening was on public networks like Ethereum. So we really believe that these are converging and they will continue to, and every one of our products offers public main net compatibility because we think this is the future.”

Millar added: “If we want to help the world adopt the technology we need to meet it at its adoption point, which for many large enterprises means inside the firewall first. But similarly, we think, just like the public Internet, the real value – the disruptive value – changes the ability to do this on a broader permissionless basis, especially when you have sufficient privacy and authentication available.”

#andreessen-horowitz, #articles, #blockchains, #co-founder, #coinbase, #consensys, #cryptocurrencies, #decentralization, #decentralized-finance, #energy, #ethereum, #finance, #firewall, #founder, #joseph-lubin, #jp-morgan, #mastercard, #player, #protocol-labs, #quorum, #shenzhen, #smart-contract, #software, #spokesperson, #tc, #technology, #united-states

The Cult of CryptoPunks

Last month, hours before news of Beeple’s $69 million NFT sale grabbed the front pages of newspapers across the country, a pair of 24 x 24 pixel portraits of aliens wearing little hats sold separately for around $7.5 million each.

The sales, which occurred within 20 hours of each other, didn’t garner the same headlines that the Beeple auction received, but there was a bit of coverage in the tech press, mostly because one of the aliens was sold by Dylan Field, the CEO of design software startup Figma. In a Clubhouse conversation following the sale, Field said he hoped that a century from now the blocky image he had sold would be seen as the “Mona Lisa of digital art.”

Punk #7804, which recently sold for 4,200 Ether (about $7.5M at the time of sale)

The pixelated alien portraits belonged to an NFT platform called CryptoPunks. In the world of NFTs, the platform is as close to ancient history as it gets, meaning it’s almost four years old. There are 10,000 punks, all of which were procedurally generated and claimed for free when the project launched in 2017.

Since then, the economy built around trading these images has sauntered on with a small but passionate community, at least until a few months ago. That’s when it suddenly exploded, dragging into the fray Silicon Valley CEOs, prominent venture capitalists, famous YouTubers, poker stars and major business personalities. The platform has seen nearly $200 million worth of transaction volume in official deals since launch, according to NFT tracking site CryptoSlam, with 98% of that volume flowing through the platform in the past few months.

The sudden rise in punk prices is owed to an explosion of interest in NFTs largely brought about by climbing cryptocurrency prices, the rise in popularity of Dapper Labs’ NBA Top Shot and the resurgence of the physical collectibles markets, all of which have made some investors more comfortable with the idea of betting on digital goods.

Today, the cheapest punk you can buy will run you about $30,000 in Ethereum cryptocurrency, while the rarest may be worth just shy of $10 million.

CryptoPunks have captured plenty of attention, but even with all eyeballs on the project, people still aren’t sure exactly what they’re looking at.

“In NFT world, people are talking about selling Jack Dorsey tweets, Top Shots and Beeple in the same sentence right now,” Sotheby’s CEO Charles Stewart told TechCrunch in an interview. “The lines can get a little blurry. When you look at CryptoPunks, are they art? Are they collectibles? Are they… you know, well… what are they exactly?”

Image Credits: Lucas Matney

A ‘more honest’ stock market

Back in early 2017, John Watkinson and Matt Hall were playing with a pixelated character generator they built, and they were pretty enthusiastic about the fun little pop art portraits they had been cooking up. By June, they had created 10,000 characters with different hairstyles, hats and glasses for a project called CryptoPunks that would be hosted on the nascent Ethereum blockchain. Some punks had a handful of attributes, some had none, some were apes, some were aliens. While the creators had a hand in curating some elements, they let their generator take control of the creativity.

They launched to modest interest from a small community of blockchain enthusiasts who only had to pay a few pennies in Ethereum “gas” transaction fees to own their own punk. It was a novel idea, pre-dating the NFT platform CryptoKitties by months and NBA Top Shot by years, but it arrived at the cusp of crypto’s 2017 wave during the early throes of initial coin offerings, where scams were plentiful and attention was hard to come by. Hall said that about 20-30 punks were claimed in the days following launch.

Then a week later Mashable wrote a story about the fledgling crypto art project, and within hours every punk was gone.

Some users went all-in immediately. One user that went by the username hemba has become something of a cautionary figure in the CryptoPunks community, claiming more than 1,000 punks at launch and selling every one of them before the market took off this year, missing out on tens of millions of dollars in profits at current prices. Another user who goes by mr703 claimed some 703 punks in total at launch, hundreds of which they are still holding onto years later in a collection similarly worth tens of millions.

In a Discord chat with the pseudonymous mr703, we asked whether they felt they had enough or if there were any punks they still intended to buy. “I own all the punks I ever really want,” they typed back. Their public wallet shows they paid more than $37,000 for a punk in the minutes in between our question and their answer. They spent $35,000 on another one several hours later.

Some investors who have already gone all-in backing risky cryptocurrencies see NFTs as a way to diversify their crypto holdings. Others see CryptoPunks as more of a game.

CryptoPunks creators Matt Hall and John Watkinson

“I think that with each year that passes the definition of what is gambling and what is investing move closer and closer together,” says Mike McDonald, a 31-year-old professional poker player who recently bought his first punk.

Why are some punks worth tens of thousands of dollars while others are worth millions? Users in the thriving CryptoPunks Discord community have had to decide that on their own, combining objective analysis of the rarity of certain design attributes with the more subjective impressions of punk “aesthetics.”

Things aren’t always predictable. Earrings are the most common attribute for punks, commanding much lower price floors than those with beanie hats, which are the rarest attribute. But hundreds of punks are wearing 3D glasses, yet they tend to earn a hefty premium over those with green clown hair even though fewer of those punks exist. Some attributes gain market momentum randomly; for instance, the market for punks wearing hoodies has been particularly hot in recent weeks.

“Obviously this is a very speculative market… but it’s almost more honest than the stock market,” user Max Orgeldinger tells TechCrunch. “Kudos to Elon Musk — and I’m a big Tesla fan — but there are no fundamentals that support that stock price. It’s the same when you look at GameStop. With the whole NFT community, it’s almost more honest because nobody’s getting tricked into thinking there’s some very complicated math that no one can figure out. This is just people making up prices and if you want to pay it, that’s the price and if you don’t want to pay it, that’s not the price.”

As prices have surged, owning a piece of the CryptoPunks’ finite supply has become a “digital flex” in its own right, especially when used as an avatar on social media sites, several punk owners told us. That has drawn plenty of wealthy buyers outside the blockchain world, including influencers like YouTuber Logan Paul who uploaded a video last month detailing his $170,000 purchase of several punks.

“When you don’t have a punk, the ecosystem seems like this gentlemen’s club of the 10,000 people that can afford these kinds of avatars,” says McDonald.

There is some concern among the community whether all of this outside attention is a sign of an impending crash in prices, though many investors feel reassured by the historical value of CryptoPunks among NFTs. Nevertheless, some of the investors have a hard time convincing those in their lives that what they’re doing is anything but reckless.

After a recent six-figure punk purchase, user Chris Mintern says his girlfriend was exasperated that he had just dropped more money on a punk than her house was worth. “She says it’s all just a bunch of internet nerds who don’t appreciate the value of money. That to them, it’s just a game and numbers on a screen,” he told TechCrunch.

The community surrounding CryptoPunks has largely bloomed on the chat app Discord in a dedicated group where users that are verified as punk owners tend to drive conversations and can gather attention for up-and-coming NFT projects they’re betting on.

“It’s a bit of a cult,” said user thebeautyandthepunk in an interview.

Like many early users, thebeautyandthepunk has stayed pseudonymous since claiming a couple dozen punks at launch, telling us that no one in her life has any idea she’s sitting on an NFT collection likely worth millions — except her accountant. She did recently decide to make it known that she was one of the few female traders who have been present in the overwhelmingly male CryptoPunks community since the beginning.

“I really try to keep my real life and my crypto life completely separate,” she says. “But people need to know that women have been [in this space] for a while and we’re not going anywhere.”

Today, all 10,000 punks are scattered across some 1,889 wallets, according to crypto tracker Etherscan. Some of those accounts are inactive and feared dead, with the punks inside them lost on the blockchain forever. The largest single wallet of punks today belongs to the platform’s creators, holding some 488 punks. It’s their only ownership in a blockchain-based marketplace where most mechanics are already set in stone.

“We’re just users now, too. Nothing about our website is specific to us having created the project,” Watkinson tells TechCrunch. “Our only equity is through the punks we own. We don’t take a cut of the market or anything.”

Image Credits: Lucas Matney

The NFT high-rollers table

Today, CryptoPunks’ creators are working on NFTs full time. While they can’t make any underlying changes to the CryptoPunks contract, they have aimed to improve the website’s marketplace while hopping into the Discord group to keep an eye on the ever-growing community of users.

“It was never our intention for this to sort of be our careers,” Watkinson says.

In 2019, the duo debuted a follow-up project called Autoglyphs, which brought generative art to the blockchain. It didn’t boast the pop aesthetic of CryptoPunks, but it added a new layer to their exploration of blockchain art. Hall and Watkinson have built up a company around their various projects called Larva Labs, and they are in the process of building up a new NFT project that they hope will have a lower barrier of entry than CryptoPunks and Autoglyphs.

“As the CryptoPunks get more and more expensive, they’re just hard to get into,” Hall says.

At around $200 million in official marketplace sales, CryptoPunks’ total lifetime sales volume is about 40% of what Dapper Labs’ NBA Top Shot has achieved in its past several months. Though CryptoPunks has done so with 0.35% of Top Shot’s total transaction volume, which is fewer than 12,000 trades compared to more than 3.3 million, according to CryptoSlam. Those high transaction numbers spread across millions of NFTs mean much less value per transaction on Top Shot, but a much, much bigger pool of active users.

Last month, Dapper Labs announced they had raised $305 million at a $2.6 billion valuation as they look to expand their private Flow blockchain to other blockchain “games” through more high-profile partnerships. Hall and Watkinson have been watching Dapper Labs’ success, but don’t think Larva Labs will need venture funding to continue exploring what’s next for NFTs.

“Rather than looking at becoming a large company and doing a deal with the NBA or something like that, we’re more just looking forward to kind of just continuing to explore the tech possibilities,” Watkinson said. “What we love about CryptoPunks is the action, and so we’d like to find a way back to sort of that level of action, and our next project is going to try to find ways to sort of keep the deal flow going.”

They have few details to share on the new project, which they said will debut “relatively soon” this year.

Image Credits: Lucas Matney

The origin of the species

CryptoPunks lore is largely steeped in the assertion that they are the oldest NFT project on the Ethereum blockchain. It’s a line that was floated by almost all of the punk owners I spoke with as the main reason they had dumped hundreds of thousands of dollars into the platform. In Paul’s recent YouTube video, he justified prices to his skeptical friends by noting, “[CryptoPunks] is the first and that makes it special.”

But over the past few weeks, holes in that narrative have begun to emerge, as “crypto archaeologists” have begun to unearth abandoned NFT projects that were created in Ethereum’s earliest days, with at least one arriving before CryptoPunks. We recently spoke with Cyrus Adkisson, the creator of a project called Etheria, which he debuted back in 2015, just three months after Ethereum’s mainnet went live. The project allowed users to buy up, sell and build on hexagonal swaths of digital land on a large map. It didn’t develop much of a following at launch and sat abandoned for years on the Ethereum blockchain until Adkisson saw the “fever pitch” developing around NFTs and started searching for the passcode to his old account.

“I remember calling my parents toward the end of February, telling them I may be sitting on a goldmine here,” Adkisson told TechCrunch.

After ultimately gaining access to his Etheria account, he then fired off a few tweets from Etheria’s long-dormant Twitter account, detailing that the bulk of the 914 tiles across two externally tradeable versions were still available and could be claimed for 1 Ether each. Adkisson says by the end of that weekend, his previously empty wallet was filled with $1.4 million worth of Ethereum.

Age alone won’t make Etheria a hit; the major challenge from here is building up a community around the project that brings in more users and pushes the prices of land tiles higher. A tile recently sold for nearly $25,000 worth of Ether, but early adopters are struggling to balance waiting out the market’s development with liquidating enough tiles so that new users can get involved and the project can build hype. 

“With these projects, it’s like, yeah, you have the historical context, but now you need to build a solid foundation with your communities because your real measure is not now, but it’s going to be what your community, size and engagement look like in a year,” says Allen Hena, an NFT enthusiast who helped attract attention to the Etheria community last month with a series of blog posts.

 In the days following the project’s resurrection, the young community has already seen plenty of disagreement and infighting as Adkisson aims to maintain some level of control over the platform on which plenty have already pinned their retirement plans. Owners are mainly frustrated by Adkisson’s attempts to make an older version of Etheria externally tradeable, something that would likely make land tiles on the existing contracts considerably less valuable. Since our interview, Adkisson has left Etheria’s Discord server and admins in the group have vowed to continue on without him as he decides which direction he wants to take Etheria 1.0.

While punk owners we talked with are keeping an eye on these newly reemerged projects, they’re also skeptical that Etheria’s older status will do much to impact CryptoPunks’ value to NFT history.

“On paper it looks cool but it didn’t actually do anything for the community,” says user Daniel Maegaard. “CryptoPunks did all the hard work.”

Punk #6487, which Daniel Maegaard recently sold for 550 Ether (about $1.05M at the time of sale)

Maegaard, a 30-year-old crypto investor based in Brisbane, Australia, is more tied up in the value of CryptoPunks than most. He recently sold a particularly rare female “zero-trait” punk for more than $1 million. He’s also the owner of one of the rarest — some argue the rarest — punks, the only one with seven unique attributes, a qualifier that has earned it the nickname “7-atty” and a sacred place in punk lore. When he bought the punk for about $18,000 in Ethereum last year, it was the most anyone had ever paid. He isn’t keen to let it go anytime soon, saying he recently turned down a private offer for $4.2 million from a group of investors that hoped to tokenize the NFT and sell fractional shares of it to other users. Part of holding onto it is the potential for further gains, but the real reason, he says, is that he’s beginning to feel an emotional bond with his collection of digital files.

“These little pixelated faces, it should be easy to give them up. I’ve sold a few punks and I’ve regretted every sale, I experienced that when I sold my zero-trait punk,” Maegaard says. “Like, yeah, a million dollars is nice, but I really liked her.”

#accountant, #blockchain, #blockchain-art, #blockchains, #brisbane, #crypto-art, #crypto-economy, #cryptocurrencies, #cryptocurrency, #dapper-labs, #decentralization, #dylan-field, #elon-musk, #ethereum, #figma, #gamestop, #jack-dorsey, #logan-paul, #matt-hall, #mona-lisa, #national-basketball-association, #nba, #nfts, #player, #sothebys, #tc

Hiro Capital puts $2.3M into team sports tracking platform PlayerData — as does Sir Terry Leahy

Hiro Capital has gradually been making a name for itself as an investor in the area know as ‘Digital Sports’ or DSports for shorts. It’s now led a $2.3m funding round in PlayerData. While the round might sound small, the area it’s going into is large and growing. Also investing in the round is Sir Terry Leahy, previously the CEO of Tesco, the largest British retailer.

Edinburgh, UK-based PlayerData uses wearable technology and software tracking to give grass-roots and professional sports teams feedback on their training. It can, for instance, allow coaches to replay key moments from a game, even modeling different outcomes based on player positioning.

This is Hiro Capital’s 4th DSports and ‘connected fitness’ investment, and it joins Zwift, FitXR and NURVV. Hiro has also invested in eight games startups in the UK, USA and Europe, as befits the heritage of cofounder and partner Ian Livingstone, OBE,CBE, who is the former chairman of Tomb Raider publisher Eidos plc and all-round gaming pioneer.

PlayerData says it has captured more than 10,000 team sessions across UK soccer and rugby, and logged over 50 million meters of play. It also has strong network effects, it says. Every time a new team encounters one using Playerdata’s platform, it generates 5 more clubs as users.

Roy Hotrabhvanon is cofounder and CEO of PlayerData, and is a former international-level archer. He’s joined by Hayden Ball, cofounder and CTO, a firmware and cloud infrastructure expert.

playerdata app

playerdata app

In a statement Hotrabhvanon said: “Our mission is to bring fine-grained data and insight to clubs across team sports, helping them supercharge their game-making, improve player performance, and avoid injury… Our ultimate goal is to implement cutting-edge insights from pioneering wearables that are applicable to any team in any discipline at any level.”

Cherry Freeman, co-founding Partner at Hiro says: “PlayerData ticks all of our key boxes: a huge TAM with over 3m grass-roots clubs; a deep moat built on shared player data, machine learning and highly actionable predictive algorithms; compelling customer network effects; and a really impressive yet humble founding team.”

The PlayerData news forms part of a wider growth in digital sports, which includes such breakout names as Peloton, Tonal, Mirror, as well as Hiro’s portfolio investment, Zwift. With the pandemic putting an emphasison both home workouts and general health, the fascination with digital measurement of performance now has a growing grip on the sector.

Speaking to TechCrunch, Freeman added: “We think there are something like 3 million teams that are potential customers for PlayerData. Obviously the number of runners is enormous, and they only need to get a small slice of that market to have a very, very large business. At the end of the day everyone, everyone works out, even if you just go for a walk, so the target market’s huge and they started with running but their technology is applicable to a whole raft of other sports.”

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