Year: 2018

26 Jul 2018

Jeffrey Katzenberg’s NewTV closes a billion dollar round, says report

Jeffrey Katzenberg’s new mobile video startup NewTV, which snagged Meg Whitman as CEO in January, has now closed on $1 billion in funding, according to a report out today in CNN. Investors in the round include Disney, 21st Century Fox, Warner Bros, Entertainment One and other media companies, with a combined $200 million investment, while institutional investors from the U.S. and China made up the rest.

The news follows a May report from Bloomberg, which said NewTV had then raised around $800 million. It had also said 21st Century Fox and Warner Bros. were investors.

Last fall, an SEC filing revealed WndrCo was looking to raise as much as $2 billion. That could indicate that the round CNN is reporting is still in the process of raising.

NewTV declined to comment, when TechCrunch reached them for confirmation.

Details are still fairly sparse on NewTV, which is being incubated by Katzenberg’s WndrCo, a holding company that’s also invested in startups including Mixcloud, Axios, Node, Flowspace, Whistle Sports, and TYT Network.

So far, we know NewTV aims to bring high-quality Hollywood production values and storytelling to mobile, but in a different format. Instead of producing regular-length TV shows, it aims to release content in “bite-sized formats of 10 minutes or less.” This will also involve custom-designed technology built specifically for mobile, it claims.

But it’s unclear why – beyond having Katzenberg and now Whitman’s names attached – this makes the company worth a billion dollar investment. The market for this type of content hasn’t really been proven out. After all, today’s youngest video consumers are happy with YouTube – their TV alternative of sorts – which is filled with short-form video.

And while YouTubers’ grasp of production values and storytelling chops may fall short of “Hollywood” standards, streaming services like Amazon, Netflix, Hulu and others are filling in the gaps in terms of quality, and are growing sizable subscriber bases.

If there is actually demand for “high-quality short-form” video, it seems content producers could just sell to existing distributors directly.

It’s also unclear for now if NewTV aims to own and distribute its content to others, act as its own standalone streaming service, or plans for a mixture of both.

In any event, as CNN points out, even a large round like this is a small bet for the bigger media companies involved. In addition, they don’t want to miss a shot at backing Katzenberg’s latest – especially given his prior successes at Paramount, Disney and DreamWorks.

 

26 Jul 2018

Meet with Greylock Partners for TechCrunch Include Office Hours this September

TechCrunch will partner with Greylock for Include Office Hours on September 4th from 2-4pm. The day before TechCrunch Disrupt San Francisco, Greylock investors Sarah Guo, Saam Motamedi, Matt Heiman, and Seth Rosenberg will meet with underrepresented and underserved entrepreneurs to provide key feedback and advice. Founders, apply here!

Founded in 2014, TechCrunch launched the Include Program in an effort to leverage the extensive TechCrunch network to facilitate opportunities for underserved groups and founders. The Include Office Hours Program is one such initiative.

TechCrunch collaborates with investors to host private 20-minute sessions with startups, where founders can ask for guidance on critical business issues. During September’s Include Office Hours, Greylock will be meeting with 24 companies. To be considered for a session with these investors, fill out this application.

Unlike previous Office Hours, TechCrunch is looking for startups in the following verticals: Enterprise, B2B, Healthcare, Security, Infrastructure, Big Data, Artificial Intelligence, SaaS, Fintech, Digital Commerce, Travel, Real Estate, Marketplaces, Messaging, E-commerce, Gaming and Crypto.

Underserved and underrepresented founders include but are not limited to female founders, black, Latino/a, Asian, LGBTQ, veteran, formerly incarcerated and people with disabilities.

Let’s meet our investors:

Sarah Guo – Enterprise, SaaS, B2B, Healthcare, Security and Infrastructure

Sarah’s mission is to partner with founders to productize disruptive ideas, get advantaged distribution and build dominant businesses. Sarah invests in enterprise-focused opportunities in SaaS, B2B, healthcare tech and infrastructure and security. Sarah has led Greylock’s investment in Cleo and is on the board of Cleo and Obsidian Security. She also works closely with Awake Security, Crew, Rhumbix and Skyhigh Networks. She is an advocate for STEM education for women and the underserved.

Saam Motamedi – Big Data, Artificial Intelligence and SaaS

Saam works with entrepreneurs building the next generation of enterprise companies with a focus on applications, big data, AI and vertical SaaS. He works closely with Blend, Spoke and Avi Networks. Prior to Greylock, Saam co-founded Guru Labs, a startup that uses machine learning to turn credit card transaction data into sales for offline merchants by predicting customer preferences.

Matt Heiman – Fintech, Digital Commerce, Travel, Real Estate and Marketplaces

Matt partners with entrepreneurs building companies around fintech, digital commerce, travel, real estate, and marketplaces. He sourced and works closely with Greylock’s investment in Coinbase and several more companies not yet announced. Prior to joining Greylock, Matt was a growth equity investor at Lee Equity Partners, and before that worked as a consultant at McKinsey & Company, where he managed teams advising Fortune 500 clients across a number of industries.

Seth Rosenberg – Messaging, E-commerce, Gaming, Crypto and Marketplaces

Seth partners with entrepreneurs who are building consumer products and platforms, including messaging, e-commerce, gaming, marketplaces and crypto. Seth works closely with Mammoth Media, DIRT Protocol and companies that are still in stealth. Prior to joining Greylock, Seth worked as a product manager at Facebook, where he led Product for the Messenger Developer Platform. Before Facebook, Seth worked at Goldman Sachs in New York doing tech and media investment banking.

If you are an investor, partner or managing director at a fund interested in hosting Include Office Hours, email neesha@techcrunch.com.

26 Jul 2018

GitHub and Google reaffirm partnership with Cloud Build CI/CD tool integration

When Microsoft acquired GitHub for $7.5 billion smackeroos in June, it sent some shock waves through the developer community as it is a key code repository. Google certainly took notice, but the two companies continue to work closely together. Today at Google Next, they announced an expansion of their partnership around Google’s new CI/CD tool, Cloud Build, which was unveiled this week at the conference.

Politics aside, the purpose of the integration is to make life easier for developers by reducing the need to switch between tools. If GitHub recognizes a Docker file without a corresponding CI/CD tool, the developer will be prompted to grab one from the GitHub Marketplace with Google Cloud Build offered prominently as one of the suggested tools.

Photo: GitHub

Should the developer choose to install Cloud Build, that’s where the tight integration comes into play. Developers can run Cloud Build against their code directly from GitHub, and the results will appear directly in the GitHub interface. They won’t have to switch applications to make this work together, and that should go a long way toward saving developer time and effort.

Google Cloud Build. Photo: Google

This is part of GitHub’s new “Smart Recommendations,” which will be rolling out to users in the coming months.

Melody Meckfessel, VP of Engineering for Google Cloud says that the two companies have a history and a context and they have always worked extremely well together on an engineer-to-engineer level. “We have been working together from an engineering standpoint for so many years. We both believe in doing the right thing for developers. We believe that success as it relates to cloud adoption comes from collaborating in the ecosystem,” she said.

Given that close relationship, it had to be disappointing on some level when Microsoft acquired GitHub. In fact, Google Cloud head, Diane Greene expressed sadness about the deal in an interview with CNBC earlier this week, but GitHub’s SVP of Technology Jason Warner believes that Microsoft will be a good steward and that the relationship with Google will remain strong.

Warner says the company’s founding principles were about not getting locked in to any particularly platform and he doesn’t see that changing after the acquisition is finalized. “One of the things that was critical in any discussion about an acquisition was that GitHub shall remain an open platform,” Warner explained.

He indicated that today’s announcement is just a starting point, and the two companies intend to build on this integration moving forward. “We worked pretty closely on this together. This announcement is a nod to some of the future oriented partnerships that we will be announcing later in the year,” he said. And that partnership should continue unabated, even after the Microsoft acquisition is finalized later this year.

26 Jul 2018

Facebook finally hands over leave campaign Brexit ads

The UK parliament has provided another telling glimpse behind the curtain of Facebook’s unregulated ad platform by publishing data on scores of pro-Brexit adverts which it distributed to UK voters during the 2016 referendum on European Union membership. The ads were run on behalf of several vote leave campaigns who paid a third company to use Facebook’s ad targeting tools.

The ads were run prior to Facebook having any disclosure rules for political ads. So there was no way for anyone other than each target recipient to know a particular ad existed or who it was being targeted at.

The targeting of the ads was carried out on Facebook’s platform by AggregateIQ, a Canadian data firm that has been linked to Cambridge Analytica/SCL — aka the political consultancy at the center of a massive Facebook data misuse storm, including by Facebook itself, which earlier this year told the UK parliament it had found billing and administration connections between the two.

Aggregate IQ is now under joint investigation by Canadian data watchdogs. But in 2016 the data firm was paid £3.5M by a number of Brexit supporting campaigns to spend on targeted social media advertising using Facebook as the primary conduit.

Facebook was asked by the UK parliament’s DCMS committee to disclose the Brexit ads — as part of its multi-month enquiry investigating fake news and the impact of online disinformation on democratic processes. The company eventually did so, releasing ads run by AIQ for the official Vote Leave campaign, BeLeave/Brexit Central, and DUP Vote Leave.

Several of the Brexit campaigns whose ads have now been made public were also recently found to have broken UK election law by breaching campaign spending limits. Most notably the Electoral Commission found that the youth-focused campaign, BeLeave, had been joint-working with the official Vote Leave campaign — yet the pair had not jointly declared spending thereby enabling the official campaign to overspend by almost half a million pounds. And that overspend went straight to Aggregate IQ to run targeted Facebook ads.

The committee has now published the Brexit ads that Facebook disclosed to it, more than two years after the referendum vote took place. Facebook also provided it with ad impression ranges and some targeting data which it has also published. The committee’s enquiry remains ongoing.

In a letter to the committee, Facebook says it’s unable to disclose ads run by AIQ for another Brexit campaign, Veterans for Britain, saying that campaign “has not permitted us to disclose that information to you”. So the view of the Brexit political ads we’re finally getting is by no means complete. Facebook’s platform also essentially enables anyone to be an advertiser — so it’s entirely possible other Brexit related messages were distributed using its ad tools.

In the case of the Brexit ads run by AIQ specifically, it’s not clear how many ad impressions they racked up in all. But total impressions look very sizable.

While some of what runs to many thousands of distinctly targeted ads which AIQ distributed via Facebook’s platform are listed as only garnering between 0-999 impressions apiece, according to Facebook’s data, others racked up far more views. Commonly listed ranges include 50,000 to 99,999 and 100,000 to 199,999 — with even higher ranges like 2M-4.9M and 5M-9.9M also listed.

One ad that generated ad impressions of between 2M-4.9M was targeted almost exclusively (99%) at English Facebook users — and included the claim that: “EU protectionism has prevented our generation from benefiting from key global trade deals. It is time we unite to give our country the freedom to be a prosperous and competitive nation!”

A spokesperson for the DCMS committee told us it hadn’t had a chance to compiled the thousands of ad impression ranges into a total ad impression range — but had rather published the data as it had received it from Facebook. We’ve also asked the company to prove an estimate on the total ad impressions and will update this story with any response.

The ad creative used by these campaigns has been published as well and — across all of them — the adverts display a mixture of (roundly debunked) claims about suddenly being able to spend ‘£350M a week on the NHS’, rousing calls to ‘take back control’ (including a bunch of ‘hero’ shots of Boris Johnson), coupled with ample fearmongering about EU regulations ‘holding the UK back’ or posing a risk to UK jobs and wages; plus a lot of out-and-out ‘project fear’ messaging — with the official Vote Leave campaign especially deploying direct dogwhistle racism to stir up fear among voters about foreigners coming to the UK if it can’t control its own border or if the EU expands to add more countries…

 

At a glance, the Brexit ad creative is not as ‘out there’ as some of the wilder stuff the Kremlin was pumping onto Facebook’s platform to try to skew the 2016 U.S. election.

But the blatant xenophobia leaves a very bad taste.

In the case of Brexit Central/BeLeave, their ad creative was more subtle in its xenophobia — urging target recipients to back a “fair immigration system” or an “Australian-style points based system” but without making any direct references to any specific non-EU countries.

The youth campaign also created a couple of ads (below) which invoked consumer technology as a reason to back Brexit — with one appealing to users of ride-hailing and another to users of video streaming apps to reject the EU by suggesting its regulations might interfere with access to the services they use.

Ironically enough, it was London’s transport authority that withdrew Uber’s license to operate last year — in a regulatory decision that had absolutely nothing to do with the EU. (Uber has since appealed and got a 15-month reprieve.)

Though, also last year, the EU’s top court judged that a spade is a spade — and Uber is a transport company, not a mere technology platform. Though the ruling has not prevented Uber from continuing to operate and even expand ride-hailing services in Europe. Sure, it has to work more closely with city authorities now, but that means meshing with local priorities rather than seeking to override what local people want.

In a further irony, the EU also took steps to liberalize passenger transport services, back in 2007, issuing a directive that makes it harder for cities authorities to place their own controls on ride-hailing services. Albeit, evidently facts didn’t get a starring role in the vote leave Brexit ads.

As for quotas on streaming services, it’s a curious thing to complain about — especially to a youth-focused audience which you’re also targeting with ads claiming they’ll have better job prospects outside the EU.

The EU has merely suggested online streaming services should provide for and subsidize up to a third of their output of films and TV as being made in Europe.

Which seems unlikely to have a deleterious impact on European creative industries, given platforms would be contributing to the development of local audiovisual production. So — in plainer English — it should mean more money to support more creative jobs in Europe which many young people would probably love to have a crack at…

The publication of the Brexit ads is, above all, a reminder that online political advertising has been allowed to be a blackhole — and at times a cesspit — because cash-rich entities have been able to unaccountably exploit the obscurity of Facebook’s systemically dark ad targeting tools for their own ends, leaving no right of public objection let alone reply for the people as a whole whose lives are affected by political outcomes such as referendums.

Facebook has been making some voluntary changes to offer a degree of political ad disclosure, as it seeks to stave off regulatory rule. Whether its changes — which at best offer partial visibility — will go far enough remains to be seen. And of course they come too late to change the conversation around Brexit.

Which is why, earlier this month, the UK’s data watchdog calling for an ethical pause of political ad ops — saying there’s a risk of democracy being digitally undermined.

“It is important that there is greater and genuine transparency about the use of such techniques to ensure that people have control over their own data and that the law is upheld,” it wrote. “Without a high level of transparency – and therefore trust amongst citizens that their data is being used appropriately – we are at risk of developing a system of voter surveillance by default.”

26 Jul 2018

IGTV carousel funnels Instagram feed traffic to buried videos

IGTV didn’t get the benefit of being splayed out atop Instagram like Stories did. Instead, the long-form video hub is a bit more distant, located in a standalone app as well as behind a static orange button on the main app’s homescreen. That means users can go right on tapping and scrolling through Instagram without coming across IGTV’s longer videos that range up to an hour.

IGTV has only been out a month and Instagram’s feed has been around for 8 years so it makes sense to try to push views from the app’s core feature to this new one. That’s why Instagram is experimenting with a way to show off a carousel of IGTV videos in its main app’s feed. Spotted by app researcher Jane Manchun Wong, we asked Instagram about it. A spokesperson confirmed it was testing the carousel, and provided this statement: “We’re always testing new and different ways to surface interesting content for people on Instagram.”

The IGTV carousel appears below the Stories tray, pushing down the traditional feed so less of the first photo or video immediately appears on the screen. It shows a preview tile of the IGTV videos with overlaid titles and lengths, plus the creator’s name and profile pic. They look similar to Snapchat’s Discover page and the carousels of “Recent Stories” Instagram began running mid-feed last year.

By teasing IGTV’s actual content rather than just slapping a logo buton atop the screen, Instagram might get more users to check out the feature and standalone app. More views could in turn lure more content from creators. If they don’t see IGTV’s audience as significant, they won’t go to the trouble of shooting long-form vertical video for the platform or editing their landscape Instagram feed and YouTube videos for the format.

Given yesterday’s bloodbath of a Facebook earnings report, there’s more pressure than ever on Instagram to pull its weight. Facebook sunk to its slowest growth rate in history, losing users in Europe and going flat in North America. In fact, it revealed a new “family of apps audience” metric of 2.5 billion people using at least one of Facebook’s apps (Facebook, Instagram, WhatsApp, or Messenger) to distract from the bad news. That stat will let Facebook hide how younger users are abandoning it in favor of Instagram.

The big concern is that vertical videos and Stories are the future of content creation and consumption, but Facebook hasn’t figured out how to monetize these formats as well as its tried-and-true News Feed ads. Concerns about eyeballs shifting away from feeds faster than ad dollars contributed to Facebook’s 20 percent share price drop erasing $120 billion in market cap.

But Facebook’s saving grace, and the reason the stock might bounce back, is that it ruthlessly cloned Snapchat Stories for two years before it was obvious that it had to and now has 1.1 billion daily Stories users across its apps. If Facebook said Stories were the future but it was way behind, it could have been beaten down even worse by Wall Street.

Still, short-form Stories are best paired with short-form Stories ads. If it can make IGTV a hit, it could run longer o unskippable ads that earn it more. So you can expect to see more and more of IGTV in the Instagram feed.

26 Jul 2018

Bring your best questions for these Q&A speakers at Disrupt SF

This week we’re excited to announce another addition to the TechCrunch Disrupt SF program — the Q&A agenda.

This is new for Disrupt. After chats on the Main and Next stages, select speakers will take questions from the audience in special, extended Q&A sessions.

These panels will last 30-45 minutes and be open to Disrupt attendees. Talk to Kai-Fu Lee about the evolution of artificial intelligence. Dive deeper into CRISPR by posing questions to Rachel Haurwitz. Ask Avichal Garg for advice on launching an ICO. Sessions will feature speakers across all key topics and it’s your chance to ask questions to some of the greatest minds in technology.

The only way to get involved is to snag a ticket to Disrupt SF. Click here to get a special early-bird discount until August 1. General admission and exhibitor packages are still available. For the full Disrupt SF agenda, click here. The Q&A agenda is below. We’ll be adding speakers in the weeks leading up to Disrupt, so check back often for updates.

WEDNESDAY, SEPTEMBER 5TH

Morning


  • Exploring Private and Public Space Exploration and book signing with Alan Stern (NASA)
  • Uniting Under Unity with John Riccitiello (Unity Technologies)

Afternoon


THURSDAY, SEPTEMBER 6TH

Morning

  • Investing in China with Hans Tung (GGV Capital) and Yi Wang (Lingochamp)
  • Making mobility possible with Reilly Brennan (Trucks VC) and others to be announced
  • Building for Voice with Jason Mars (Clinc) and others to be announced

Afternoon

  • Rebooting the Robots with Claire Delaunay (Nvidia), Rich Mahoney (Seismic) and others to be announced
  • Creating with CRISPR with Rachel Haurwitz (Caribou Biosciences) and others to be announced

FRIDAY, SEPTEMBER 7TH

Morning


Afternoon

26 Jul 2018

ACLU says Amazon facial recognition associated Congress members with mugshots

As far as attention-grabbing stunts go, this is a pretty good one. The ACLU has been attempting to raise awareness of Amazon’s Rekognition software for some time, stating that it “raises profound civil liberties and civil rights concerns.”

For its part, Amazon has brushed these off, telling TechCrunch back in May, “As a technology, Amazon Rekognition has many useful applications in the real world.” In a bid to get Congress to sit up and take notice, however, the ACLU says it used Rekognition to scan images of every current member of Congress.

The ACLU claims the software falsely matched 28 members of Congress with arrest mugshots. “The members of Congress who were falsely matched with the mugshot database we used in the test include Republicans and Democrats, men and women, and legislators of all ages, from all across the country,” the organization writes in a statement.

Those tagged, however, “were disproportionately of people of color, including six members of the Congressional Black Caucus, among them civil rights legend Rep. John Lewis,” it adds.

Amazon has, naturally, rejected the findings. The company noted that such technologies are used to narrow down results, rather than make arrests. “We remain excited about how image and video analysis can be a driver for good in the world,” it said in a statement.

That the service appears to have an outsized target on people of color, however, does add fuel to the ACLU’s existing privacy complaints. Earlier this month, Microsoft president Bradford L. Smith called for additional regulation for these technologies as they continue to become more of a mainstay for law enforcement.

“Facial recognition technology raises issues that go to the heart of fundamental human rights protections like privacy and freedom of expression,” Smith wrote. “These issues heighten responsibility for tech companies that create these products. In our view, they also call for thoughtful government regulation and for the development of norms around acceptable uses.”

26 Jul 2018

Facebook acquires Redkix to enhance communications on Workplace by Facebook

Facebook had a rough day yesterday when its stock plunged after a poor earnings report. What better way to pick yourself up and dust yourself off than to buy a little something for yourself. Today the company announced it has acquired Redkix, a startup that provides tools to communicate more effectively by combining email with a more formal collaboration tool. The companies did not reveal the acquisition price.

Redkix burst out of the gate two years ago with a $17 million seed round, a hefty seed amount by any measure. What prompted this kind of investment was a tool that combined a collaboration tool like Slack or Workplace by Facebook with email. People could collaborate in Redkix itself, or if you weren’t a registered user, you could still participate by email, providing a more seamless way to work together.

Alan Lepofsky, who covers enterprise collaboration at Constellation Research, sees this tool as providing a key missing link. “Redkix is a great solution for bridging the worlds between traditional email messaging and more modern conversational messaging. Not all enterprises are ready to simply switch from one to the other, and Redkix allows for users to work in whichever method they want, seamlessly communicating with the other,” Lepofsky told TechCrunch.

As is often the case with these kinds of acquisitions, the company bought the technology  itself along with the team that created it. This means that the Redikix team including the CEO and CTO will join Facebook and they will very likely be shutting down the application after the acquisition is finalized.

Lepofsky thinks that enterprises that are adopting Facebook’s enterprise tool will be able to more seamlessly transition between the two modes of communication, the Workplace by Facebook tool and email, as they prefer.

Although a deal like this has probably been in the works for some time, after yesterday’s earning’s debacle, Facebook could be looking for ways to enhance its revenue in areas beyond the core Facebook platform. The enterprise collaboration tool does offer a possible way to do that in the future, and if they can find a way to incorporate email into it, it could make it a more attractive and broader offering.

Facebook is competing with Slack, the darling of this space and others like Microsoft, Cisco and Google around communications and collaboration. When it launched in 2015, it was trying to take that core Facebook product and put it in a business context, something Slack had been doing since the beginning.

To succeed in business, Facebook had to think differently than as a consumer tool, driven by advertising revenue and had to convince large organizations that they understood their requirements. Today, Facebook claims 30,000 organizations are using the tool and over time they have built in integrations to other key enterprise products, and keep enhancing it.

Perhaps with today’s acquisition, they can offer a more flexible way to interact with platform and could increase those numbers over time.

26 Jul 2018

SuperAwesome now offers kids brands an alternative to YouTube

SuperAwesome, the “kidtech” startup valued now at over $100 million, is today launching its own alternative to YouTube’s embedded video player. The technology is aimed at kids publishers – not consumers directly – and is part of the company’s larger platform of kid-safe technology. This includes tools for social engagement, parental controls, advertising, authentication, and more, all specifically designed for companies catering to kids.

The launch comes at a key time in the industry, as YouTube is now the subject of a class-action lawsuit over children’s privacy, and recently had an FTC complaint filed against it by 23 advocacy groups. The complaint says YouTube has been collecting data on children’s viewing patterns for years, in violation of federal law – meaning COPPA, aka the Children’s Online Privacy Protection Act.

The new player provided by SuperAwesome gives kids brands another choice amid all these questions over YouTube and its respect for children’s privacy.

Explains the company, the player does not capture data on children, nor does it breach regulations like COPPA (U.S.) or GDPR-K (E.U.).

The opportunity for SuperAwesome is fairly sizable here. Already, the company counts among its customer base over 190 kids’ brands like Crayola, Topps, Spin Master, Warner Bros., Hasbro, Disney, Roald Dahl, Mattel, Dreamworks, Penguin, and others. These companies use SuperAwesome’s platform and its tools for socially engaging, advertising and connecting with their under-13 audience.

“The demand for [the video player] has come directly from our customers and the player has been in beta testing for a while,” SuperAwesome CEO Dylan Collins tells TechCrunch.

As with its other tools, the kids’ publishers will be able to embed the new player within their own websites and apps, and then manage all their social content – including video – from SuperAwesome’s “PopJam” dashboard.

“To give you a sense of scale, the PopJam Connect platform is enabling tens of millions of kid-safe social engagements every month,” Collins adds.

The platform itself offers a set of basic tools for free, but larger companies pay for premium upgrades on a SaaS (software-as-a-service) basis. Because it’s working with so many big brands, SuperAwesome is now turning a profit. It’s expecting to grow 100 percent this year to reach a revenue run rate of $50 million, it recently said.

And it also just added Tim Weller, chairman of Trustpilot and Taptica, as its Chairman a few months ago, and announced former Upworthy CRO, Ben Zagorski as its North American Chief Revenue Officer.

SuperAwesome’s platform today is addressing an underserved audience: kids brands that need to abide by federal and international regulations around children’s privacy, but have had limited options in terms of technology that helps them do so.

That was the case with video in particular – there hasn’t really been a viable alternative to YouTube’s player that suits kids publishers’ needs.

“There are over 170,000 children going online for the first time every day and the kidtech ecosystem is growing equally quickly to make the broader internet compatible with this new audience,” noted SuperAwesome CTO Joshua Wohle in a statement about the player’s launch. “Many people misinterpreted children’s appearance on the internet as a temporary blip, whereas in reality it is a structural shift that is changing the landscape,” he said.

 

 

 

26 Jul 2018

Root Ventures, a young SF firm focused on ‘hard tech,’ just closed a much bigger second fund with $76.7 million

Root Ventures, a San Francisco-based venture firm that closed its debut fund with $30 million in 2015, has raised a second fund, closing it with $76.7269 million dollars in capital commitments. Why? Because Root is proudly composed of engineering nerds, and 767.269 miles per hour is the speed of sound. In dry air. At 20 degrees Celsius.

Of course, more mathematically significant to its investors is how the firm is faring, and on that front, Root’s backers must like what they see.

Though Root’s investments are mostly too new to judge yet — its debut fund took stakes in 27 companies — it can easily back up claims that it invests in “deeply technical founders” who are tackling “interdisciplinary engineering problems,” including in robotics, machine learning and software for physical industries.

Among Root’s many interesting bets to date: Creator, a hamburger-making robot that can craft a burger from start to finish in five minutes; Nautilus Labs, which sells machine learning-based analytics to maritime shipping companies, including to help them reduce their fuel costs; NordSense, whose ultra low-cost sensors sit inside garbage bins to monitor how full they are; and Wild Type, a young startup focused on creating lab-grown meat.

Firm co-founder Avidan Ross tells us that with the firm’s new fund, he and investing partners Chrissy Meyer and Kane Hsieh will be writing slightly larger initial checks, ranging from $1 million to $2 million, up from the $500,000 checks it was writing with its first fund. He adds that the firm plans to stay firmly rooted (ahem) to its mission of supporting seed-stage founders whose companies may ultimately require a lot of resources, yet which Root can help because of its collective engineering and investing muscle.

Ross is himself a trained engineer who was previously CTO of the private equity firm CIM Group. Meyer was an engineering program manager at both Apple and Square before becoming the director of hardware product development at Pearl Automation. (The three-year-old company was founded by numerous Apple employees and set out to make automotive back-up cameras, but it shut down last year.)

Meanwhile, Hsieh, who studied computer science at Harvard, spent a couple of years as a senior associate with RRE Ventures in New York before co-founding a bike company focused on low cost and high design. Then, shortly after Root was founded, Ross talked him into joining. “Kane is obsessed with optimization and automation,” says Ross.

Root has seen a few exits already, among them Preact, a cloud-based platform and service aimed at helping subscription-model businesses reduce churn; it was acquired for undisclosed terms by Spotify in late 2016.  Root also saw Cape Networks, a startup that used sensors to provide service assurance and test network and application performance, sell to Hewlett Packard Enterprise earlier this year for undisclosed terms.

As for its investors, like most venture firms, Root doesn’t discuss these. Still, we’re aware that one of Root’s backers, in both its first and second vehicles, is the fund of funds manager Cendana Capital, based in San Francisco.

Cendana has been an early investor in many promising seed-stage firms, some that have since graduated from Cendana’s sweet spot, which is groups that raise sub $100 million funds. Some of its other investments over the years have included Forerunner Ventures, Uncork Capital, Bolt, Notation Capital and IA Ventures.