Month: September 2020

09 Sep 2020

As the smartphone market declines, 5G models are set to see continued growth in 2020

Things have gone from bad to worse for a stumbling smartphone market in 2020. Already plateauing and decline figures have taken a big hit from COVID-19. The pandemic has hampered sales of non-essential items, particularly those best enjoyed outside of the home. According to new figures from Canalys, smartphone shipments are set to experience a 10.7% decline for the year.

There are a couple of silver linings worth noting. For starters, 5G adoption continues to growth. The firm projects that some 280 million units will be shipped in 2020, with the Greater China market making up a majority at 62% of the total figure, thanks in part to lower cost devices like the Realme V3, which retails for less than $150 U.S. — a remarkable price for a product with next-gen wireless.

Image Credits: Canalys

North America is in second place, with around 15% of shipments, while EMEA and Asia Pacific (sans Greater China) are projected to each make up around 11%. A 5G-enabled iPhone 12 should help speed up adoption as well, when it’s launched in the next month or so.

“Smartphone vendors have relentlessly pushed new product launches, as well as online marketing and sales during the post-lockdown period, generating strong consumer interest for the latest gadgets,” analyst  Ben Stanton says in a release. “Gradual reopening of offline stores, improving logistics and production have provided necessary uplift for most markets to move into a more stabilized second half of 2020.”

5G was expected to have a rebounding effect for the industry — though the pandemic quickly hampered those plans. Likely it has gone a ways toward helping prohibit a further slide in sales. And numbers are still expected to rebound somewhat in the 2021, at 9.9% year over year. That’s not quite enough to return things to pre-2020 levels, but would no doubt be a welcome sign for an industry that has shown signs of decline for some time now.

09 Sep 2020

Greenstop launches its cannabis vending machine in California dispensaries

Cannabis is now available from vending machines in select California dispensaries. Made by California-based Greenstop, the self-serve kiosks can simultaneously serve four customers while still conforming to local regulations. And they couldn’t come at a better time.

During the COVID-19 pandemic cannabis is considered an essential business in California, and the system provides dispensaries with a solution to keep customers and sales associates safe. Plus, as an introvert myself, sometimes I’m not in the mood to talk to a budtender, and I want to get in and out with my weed. The transaction can happen in seconds, Greenstop’s executives tell TechCrunch.

Greenstop calls it the Smart Dispensary and think of these kiosks as the self-service checkout lane at a grocery store. In this case, a clerk, or a budtender, oversees the operation by granting access after checking IDs and assisting customers when needed. By having this clerk as part of the process, dispensaries conform to regulations and can employ these kiosks as part of their operation.

Greenstop was founded and bootstrapped by Timothy Island and James Edward in 2015 and launched their prototype in 2018. Now, in September of 2020, the company is launching its product, employs ten people, and is looking to raise $5 million to expand the company first in Las Angelas, then throughout California, finally expanding nationwide.

The Smart Dispensary units are located in two locations at launch: Marina Caregivers in Marina Del Rey, CA, and The Healing Touch, in Encino, CA. Since each kiosk serves four people, adding one kiosk to a small dispensary can increase sales capacity without hiring a new budtender.

Initially, the Greenstop machines were designed with just speed in mind. Get in and out with weed as fast as a person could buy a six-pack. Co-CEO Timothy Island tells TechCrunch that after developing the machine, the company discovered other benefits.

“[With] the self-service experience, it feels like you’re in the drivers’ seat when you’re shopping,” Island said.

The Greenstop machine features a fully interactive display allowing the dispensary to upload its entire menu with rich media. Consumers can take their time and read information about strains and types of cannabis. And for the first time, this information is available at a dispensary without talking to someone.

Second, the kiosk provides a contact-free shopping experience. The company fitted temporary plexiglass shields to help increase social distancing during the pandemic.

Co-CEOs Island and Edward say in the future, the company expects to launch a mobile app allowing customers to research and pre-purchase orders from a mobile device.

Currently, Greenstop is co-branding the machine along with the dispensaries. By featuring both brands, consumers gain confidence in its legitimacy while Greenstop gains increase brand awareness.

The company expects to grow first in Los Angeles and the surrounding area. Eventually, they hope to be in dispensaries throughout California and nationwide. The Co-CEOs explain since the company is not operating as a dispensary, but rather as the maker of a retail product, it can move more quickly into other states.

Co-CEO James Edward said their product is gaining increased attention due to COVID-19. “A lot of people see the need not to have to talk to a budtender because, nationwide, you have to talk to a budtender to buy cannabis.”

He’s right. In some dispensaries, this causes large lines, and space is a premium with social distancing restrictions.

COVID-19 is presenting Greenspot with a unique opportunity. Cannabis is booming during the pandemic. Social distancing is becoming the social requirement, and Greenspot’s product is built and ready to be deployed to make 2020 suck a little bit less.


TechCrunch Disrupt 2018

09 Sep 2020

U.S. holiday shopping season on mobile expected to be largest to date, topping 1B hours on Android

The coronavirus pandemic’s impact on the holiday shopping season is already underway. Amazon has delayed its annual sales event, Prime Day, from July to October 2020, while top e-commerce retailers, including Walmart, Target and Amazon, are becoming more powerful than ever. According to a new report from App Annie, mobile shopping apps are poised to see their biggest shopping season to date. The mobile data and analytics firm is estimating that U.S. consumers will spend over 1 billion hours on Android devices alone during the fourth quarter, a 50% increase from the same time last year.

This forecast represents a jump ahead for mobile commerce that wasn’t expected until four to six years from now, but the pandemic has pushed that timetable forward.

Image Credits: App Annie

The firm also predicts that the pace of online shopping will look different than in years past.

While, typically, holiday shopping would be concentrated in the weeks around Black Friday and Cyber Monday, it’s expected that the shopping season this year will be longer and more drawn out. To some extent, this could be attributed to Prime Day’s delay, but the economic pressures of the pandemic are also taking their toll.

Heading in the third quarter, unemployment rates in the U.S. were still higher than during the Great Financial Crisis and more than two times higher than pre-COVID rates. App Annie says this will manifest in lower disposable incomes and greater price sensitivity, which will in turn lead consumers to seek out deals and promotions for longer periods of time throughout the lead up to the 2020 holidays.

Prime Day’s delay may also impact the shopping activity that takes place during the normally busy November shopping days, given that the sales event will take place this year much closer to Black Friday and Cyber Monday than ever before.

App Annie also noted that Amazon’s app continues to rank No. 1 by monthly active users among U.S. Shopping apps, and sees strong cross-app usage with other top Shopping apps.

Image Credits: App Annie

 

For comparison’s sake, weekly sessions in Shopping apps had grown by 25% during peak weeks during Q4 2019. They were also up 15% in the U.K.

This growth trend will continue as the changes brought on by the pandemic have been built upon existing consumer behavior, which have now been dialed up. Those changes are here to stay, App Annie claims.

Image Credits: App Annie

Related to mobile shopping’s growth, and the over 1 billion hours spent shopping in Q4 on Android, App Annie also predicts other categories of apps will benefit. PayPal, for example, reported its best quarter ever with total payment volume increasing 29% year over year.

Online grocery services are also booming, particularly in markets with rising COVID-19 cases like the U.S. and Brazil. Higher usage of mobile grocery shopping apps is expected to continue through Thanksgiving in the U.S., as consumers use app for checking inventory, self-checkout, delivery, and buy online/pickup in store. Similarly, meal delivery services like UberEats, DoorDash, and Grubhub are also expected to remain valuable and widely used in Q4.

Image Credits: App Annie

Outside the U.S., App Annie forecasts that Singles Day 2020 will bring in over 310 billion CNY (over $45 billion in U.S. dollars) to make it the biggest shopping day ever. This will top last year’s record of $38 billion in sales, and follows Q3 2020’s 4.8% year-over-year retail sales growth in China.

09 Sep 2020

Snapchat’s new Lens celebrates tomorrow’s NFL kickoff

Snap and the NFL recently announced a multi-year extension to their content partnership. Now, with the season starting tomorrow, they’re revealing more details about what kinds of content fans can expect to find on Snapchat.

For tomorrow night’s kickoff, they’ve created a special augmented reality Lens that takes fans from the Kansas Chiefs’ locker room (the Chiefs are hosting the Houston Texans) through the tunnel and into Arrowhead stadium, where they’ll be greeted by Kansas City’s Patrick Mahomes and Houston’s Deshaun Watson.

The Lens will be available nationally, and as regular games begin, it will transform into an entrance into a more generic NFL stadium.

After that, the NFL will be creating a highlight show that updates each game day, plus three weekly shows — “Rankings” (which offers historic NFL facts designed to encourage fan debates), “Mic’d Up” (a behind-the-scenes look at what coaches and players say during the games) and and “Predictions.” The NFL will also continue producing “Real Talk with the NFL,” a show that highlights the league’s social justice initiatives.

Ian Trombetta, the NFL’s senior vice president of social and influence marketing, told me that all of this content is created by the league’s social lab in partnership with Snap. And while the NFL continues to see high ratings on traditional linear TV, he said Snapchat plays “a really critical role for us.”

“It’s always about: How do we engage new audiences, younger audiences, and do it in ways that are very authentic to the platforms,” Trombetta said. “We don’t look to do things that are just content dumps.”

NFL Kickoff Portal Lens

Image Credits: Snap

Snapchat says that viewership of NFL content increased 80% during the 2019-20 season, and that 90% of viewers were under the age of 35.

Of course, it’s going to be a strange season. Like other professional sports organizations, the NFL has to test its players for COVID-19, and different teams are taking different approaches towards allowing fans in the stadiums — many games will be taking place without fans at all.

“The [NFL] organization is leaning on us more than they ever had,” Trombetta said. “We didn’t ignore the fact of what’s happening, anyone would be crazy to think we could totally shut that off. There has to be an acknowledgement of it, while also finding new ways, very seamless ways for fans to engage and celebrate rituals around games that they’ve established over years and decades.”

09 Sep 2020

Can carbon capture save the world from climate change? Jennifer Holmgren will tell us at Disrupt

Before she became the chief executive officer of LanzaTech, one of the first generation of companies working on carbon capture and conversion technologies, Jennifer Holmgren was the general manager of the Renewable Energy and Chemicals business at UOP (which stands for Universal Oil Products).

That division of Honeywell, the $115 billion dollar industrial conglomerate, was responsible for developing most of the early alternative fuels for the aviation industry and reflects Holmgren’s longtime interest in making existing chemicals and fuels more sustainable.

Now the world is on the precipice of climate disaster and companies that provide alternative, zero carbon sources of fuel and feedstock for chemicals are front and center in the fight to mitigate the worst impacts of global warming.

Or are they?

The suffering caused by the global COVID-19 pandemic has sent the global economy into a tailspin and has reshaped vast swaths of the global economy and the oil industry is no different. Demand for oil has cratered and new work patterns have remade cities in a less energy intensive ways. In Europe, coming legislation will force countries to further decarbonize.

So where does this leave the energy industry and alternative sources of fuels that are based on carbon capture technologies?

These and other questions will be on the agenda at Disrupt 2020 from September 14-18 when Holmgren sits down to talk about her business with LanzaTech, the recent spinoff of LanzaJet to make alternative jet fuels, and the other products in the company’s pipeline.

With nothing less than the future of the energy industry on the table, the discussion with Holmgren is sure to be interesting.

And her company is uniquely positioned to tackle the challenges. Since its launch in 2007 LanzaTech has raised $276.3 million in financing from investors including Khosla Ventures, Novo Holdings, the investment arm of the Novo Nordisk life sciences conglomerate, and the sovereign investment fund of the New Zealand government, the NZ Superfund.

LanzaTech has already been rewarded for its efforts — receiving the U.S. Environmental Protection Agency Presidential Green Chemistry Award and Holmgren, herself, received the BIO Rosalind Franklin Award for Leadership in Industrial Biotechnology and the Outstanding Leader Award in Corporate Social Innovation from the YWCA Metropolitan Chicago. She was named most influential leader in the Bioeconomy by Biofuels Digest in 2017 and received the Digest Global Bioenergy Leadership Award in 2018.

Disrupt 2020 runs from September 14 through September 18 and will be 100% virtual this year. Get your front row seat to see Holmgren live with a Disrupt Digital Pro Pass a Digital Startup Alley Exhibitor Package or even a Digital Pass for just $45. We’re excited to see you there.

09 Sep 2020

Calling VCs in Vienna: Be featured in The Great TechCrunch Survey of European VC

TechCrunch is embarking on a major new project to survey the venture capital investors of Europe, and their cities.

Our <a href=”https://forms.gle/k4Ji2Ch7zdrn7o2p6”>survey of VCs in Vienna will capture how the city is faring, and what changes are being wrought amongst investors by the coronavirus pandemic. The deadline is Tuesday. (Please note, if you have filled the survey out already, there is no need to do it again).

We’d like to know how Vienna’s startup scene is evolving, how the tech sector is being impacted by COVID-19, and, generally, how your thinking will evolve from here.

Our survey will only be about investors, and only the contributions of VC investors will be included. More than one partner is welcome to fill out the survey.

The shortlist of questions will require only brief responses, but the more you can add, the better.

You can fill out the survey here.

Obviously, investors who contribute will be featured in the final surveys, with links to their companies and profiles.

What kinds of things do we want to know? Questions include which trends are you most excited by? What startup do you wish someone would create? Where are the overlooked opportunities? What are you looking for in your next investment, in general? How is your local ecosystem going? And how has COVID-19 impacted your investment strategy?

This survey is part of a broader series of surveys we’re doing to help founders find the right investors.

For example, here is the recent survey of London.

You are not in Vienna, but would like to take part? European VC investors can STILL fill out the survey, as we will be putting a call out to your city next anyway!

The survey is covering almost every European country on the continent of Europe (not just EU members, btw), so just look for your country and city on the survey and please participate (if you’re a venture capital investor).

Thank you for participating. If you have questions you can email mike@techcrunch.com

09 Sep 2020

In a startup reprise, Courtne Smith launches NewNew, a social network based on shared content

Since her departure from Drake’s entourage (where she worked as his longtime personal assistant) Courtne Smith has launched a line of hair products; a giveaway game that dropped swag like Yeezy shoes and Kardashian beauty products called Suprize; and now, NewNew, a social network based on the videos its users like and share.

Think of the pitch as TikTok meets Facebook, where users congregate and create networks based on the videos, memes, and images they share.

When Suprize launched in 2018 with the promise of tickets to a Drake show and an exclusive offer for a jacket from the artist’s Scorpion tour, sites like Complex and Refinery 29 took notice.

After a year in operation, so did investors. The company Smith co-founded with Filip Diarra, a graphic designer and developer, attracted the attention of Andreessen Horowitz, Founders Fund, Canaan, Dreamers VC and Shrug Capital. 

We raised it really to transition Suprize into a social discovery platform based on ranking sharing and connecting over cool things that you connect and that you agree with,” said Smith. “After time running Suprize we saw NewNew taking over as the smarter, more scalable and more mature product to focus on really.”

Social media businesses have tried to use ranking, list-making and sharing to develop a following with companies like Wishbone and The Tylt using lists and voting to generate traffic and as the hook for the site.

NewNew, by contrast, intends to create a social graph around shared interest in videos or visual content, in much the same way that Instagram created a new platform for social networking. The difference is that The NewNew won’t focus on content creators, but instead the passive followers who amplify those creators.

“We saw an opportunity to do something around ranking,” said Smith. “We’re obsessed with short form media and who it’s shared with. The creation of your own social media content. That’s difficult… our focus is how it’s shared and who it’s shared with rather than creating new content.”

Image Credit: NewNew

Smith said that her company will exist in a “symbiotic relationship” with all the other content creation platforms. “There’s not really a place to organize the conversation around all the content that’s being shared. And that’s what the NewNew is trying to do.”

For Smith, the launch of NewNew is just the latest step in a lifelong journey toward entrepreneurship, the young founder said. “I always wanted to be an entrepreneur,” she said. “My dad was entrepreneurial. Hea had gone through a lot of career changes in his lifetime. He was a football player, and then a real estate entrepreneur and then a teacher.”

Another entrepreneurial role model was her friend and longtime employer, Drake. The two met when he was just becoming famous as a teenage actor in Toronto on the show Degrassi: The Next Generation.

Smith told Vogue, “Drake and I have been best friends since we were kids. I always found myself helping him organize his things for work and travel years before he was the ‘6 God’ we now all know and love, so it was a pretty natural transition from organized friend to assistant, at the time,” she said. “I consider Drake one of my role models and a great example of being aware of your strengths and working hard to get what you want in life.”

While Smith has worked in fashion and entertainment, the tech industry always beckoned, she said. “Tech was the thing that was big and impactful and has the way to make the most difference in the world,” she said. 

Ultimately, the hope is for The NewNew to become a utility in the same way that other big social media platforms have become.

“There’s generations that grew up on those platforms. We see ourselves becoming a utility down the road,” Smith said. 

09 Sep 2020

AT&T customers can now make and receive calls via Alexa

Amazon this morning announced it’s teaming up with AT&T on a new feature that will allow some AT&T customers to make and receive phone calls through their Alexa-enabled devices, like an Amazon Echo smart speaker. Once enabled, customers with supported devices will be able to speak to the Alexa digital assistant to start a phone call or answer an incoming call, even if their phone is out of reach, turned off, or out of battery.

The feature, “AT&T calling with Alexa,” has to be first be set up under the user’s Alexa account.

To do so, users who want to enable the option will need to go to the “Communication” section in their Alexa app’s Settings. From there, you’ll select “AT&T” and then follow the on-screen instructions to link your mobile number.

Once linked, AT&T customers will be able to say things like “Alexa, call Jessica,” or “Alexa, dial XXX-XXX-XXXX” (where the X’s represent someone’s phone number).

When a call is coming in, Alexa will announce the call by saying, “Incoming call from James,” or whoever is ringing you. You can respond, “Alexa, answer,” to pick up, then speak to the caller via your Alexa device.

There are few different ways to control when you want to receive incoming calls.

You can create an Alexa Routine that specifies you’ll only receive your calls through Alexa during workday hours of 9 am to 5 pm, for example. You could also make a routine that allowed you to disable AT&T calls on your device when you said a trigger phrase, like “Alexa, I’m leaving home.” Plus, you can manually turn off the feature when you’re leaving the house, by switching on the “Away Mode” setting in the Alexa app.

The new feature is made possible by AT&T’s Numbersync service that allows users to make and receive phone calls on smartwatches, tablets, computers, and now, Alexa devices. There’s no cost associated with using the feature, which is included with all eligible AT&T mobile plans.

Amazon says AT&T Calling with Alexa is available on post-paid plans for those customers who have a compatible HD-voice mobile phone, like an iPhone or Samsung Galaxy device, among many others.

While only AT&T customers in the U.S. can take advantage of the feature, they’re able to place outgoing calls to numbers across Mexico, Canada, and the U.K., as well as the U.S.

Amazon declined to say if it plans to offer a similar feature to customers with other carriers, but says it will respond to user feedback to evolve the feature over time.

This is not the first feature designed to make Alexa devices a tool for communication.

Amazon has already tried to make its Alexa devices work like a cross between a home intercom and a phone. With features like Drop-In, users can check in on family members in other parts of the home. Or they could use Announcements to broadcast messages, like “Dinner’s ready!” Meanwhile, calling features like Alexa-to-Alexa Calling or Alexa Outbound Calling, have allowed users to make free phone calls to both other Alexa users and most mobile and landline numbers in the U.S., U.K., Canada, and Mexico through Alexa devices or the Alexa app.

However, these features didn’t support incoming calls or calls to emergency services, like 911, so they weren’t full phone replacements.

Arguably, it may also be hard to get users to change their habit of using their cell phone in favor of an Alexa device, given that many people tend to keep phones nearby at all times, even when at home.

By offering a way to tie an Alexa device to a real phone number, however, users may be more inclined to try calling through Alexa.

The feature could also benefit the elderly, who couldn’t get to their phone in time, in the event of an emergency, or those with other special needs or disabilities that make walking over to a cell phone to answer a call more difficult.

Unfortunately, there’s still a major roadblock to using this service: spam calls. So many calls today are unwanted robocalls and spam. Having them announced over Alexa could become more of an annoyance than a help, unless users already subscribe to an advanced call blocker service.

Amazon says the new feature is live today across the U.S.

09 Sep 2020

Xometry raises $75M Series E to expand custom manufacturing marketplace

When companies need to find manufacturers to build custom parts, it’s not always an easy process, especially during a pandemic. Xometry, a 7-year old startup based in Maryland has built an online marketplace where companies can find manufacturers across the world with excess capacity to build whatever they need. Today, the company announced a $75 million Series E investment to keep expanding the platform.

T. Rowe Price Associates led the investment with participation from new firms Durable Capital Partners LP and ArrowMark Partners. Previous investors also joined the round including BMW i Ventures, Greenspring Associates, Dell Technologies Capital, Robert Bosch Venture Capital, Foundry Group, Highland Capital Partners and Almaz Capital. Today’s investment brings the total raised to $193 million, according to the company.

Company CEO and co-founder Randy Altschuler says Xometry fills a need by providing a digital way of putting buyers and manufacturers together with a dash of artificial intelligence to put the right combination together. “We’ve created a marketplace using artificial intelligence to power it, and provide an e-commerce experience for buyers of custom manufacturing and for suppliers to deliver that manufacturing,” Altschuler told TechCrunch.

The kind of custom pieces that are facilitated by this platform include mechanical parts for aerospace, defense, automotive, robotics and medical devices — what Altschuler calls mission critical parts. Being able to put companies together in this fashion is particularly useful during COVID when certain regions might have been shut down.

“COVID has reinforced the need for distributed manufacturing and our platform enables that by empowering these local manufacturers, and because we’re using technology to do it, as COVID has unfolded […] and as continents have shut down, and even specific states in the United States have shut down, our platform has allowed customers to autocorrect and shift work to other locations,” he explained

What’s more, companies could take advantage of the platform to manufacture critical personal protective equipment. “One of the beauties of our platform was when COVID hit customers could come to our platform and suddenly access this tremendous amount of manufacturing capacity to produce this much-needed PPP,” he said.

Xometry makes money by facilitating the sale between the buyer and producer. They help set the price and then make money on the difference between the cost to produce and how much the buyer was willing to pay to have it done.

They have relationships with 5000 manufacturers located throughout the world and 30,000 customers using the platform to build the parts they need. The company currently has around 350 employees with plans to use the money to add more to keep enhancing the platform.

Altschuler says from a human perspective, he wants his company to have a diverse workforce because he never wants to see people being discriminated against for whatever reason, but he also says as a company with an international market having a diverse workforce is also critical to his business. “The more diversity that we have within Xometry, the more we’re able to effectively market to those folks, sell to those folks and understand how they utilize technology. We’re just going to better understand our customer set as we [build a more diverse workforce],” he said.

As a Series E-stage company, Altschuler does not shy away from the IPO question. In fact, he recently brought in new CFO Jim Rallo, who has experience taking a company public. “The market that we operate in is so large, and there’s so many opportunities for us to serve both our customers and our suppliers, and we have to be great for both of them. We need capital to do that, and the public markets can be an efficient way to access that capital and to grow our business, and in the end that’s what we want to do,” he said.

09 Sep 2020

Socialbakers acquired by customer engagement company Astute

Astute, a customer engagement platform headquartered in Columbus, Ohio, is announcing that it has acquired social media marketing company Socialbakers.

The financial terms of the acquisition were not disclosed. Socialbakers CEO Yuval Ben-Itzhak will become president of Socialbakers for the combined company, and he told me via email that the entire Socialbakers team will be joining as well, resulting in a combined organization with more than 600 employees and $100 million in annual recurring revenue.

Socialbakers was one of the last independent players from the first wave of social analytics. Founded in 2008 and based in Prague, the company raised a total of $34 million in funding, according to Crunchbase, from investors including Earlybird Venture Capital and Index Ventures. And it’s used by more than 2,5000 brands globally.

Astute, meanwhile, has been around for 25 years, and focuses on unifying customer data. Ben-Itzhak said that by acquiring Socialbakers, Astute will be able to add social media-focused features like audience insights, content planning, influencer marketing and ad analytics.

“Socialbakers and Astute are already sharing dozens of mutual brand customers in the enterprise segment,” he said. “This is, in fact, how the acquisition talks came about. The platform integration process has already started and is expected to continue through Q4.”

In a statement, Astute CEO Mark Zablan also emphasized the comprehensiveness of the resulting platform.

“The lines between customer care, customer experience, and marketing have become increasingly blurred, presenting real challenges for companies,” Zablan said. “Combining the market-leading social media marketing capabilities of Socialbakers with Astute’s engagement suite not only helps our customers tackle this challenge more effectively, but also marks a major milestone along Astute’s journey towards becoming the end-to-end customer engagement platform that the Chief Customer Officer needs to succeed.”