Welcome back to This Week in Apps, the TechCrunch series that recaps the latest OS news, the applications they support and the money that flows through it all.

The app industry is as hot as ever, with a record 204 billion downloads and $120 billion in consumer spending in 2019. People are now spending three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.

Top Stories

Apps and the Elections

The tight, nail-biting U.S. elections this week had a number of impacts on the app market.

The apps Americans chose to watch the elections on their iPhone were reflective of the nation’s divisions. Instead of a more neutral news source, like a broadcast network, the top 2 apps were CNN and Fox News — cable news channels that lean left and right, respectively.

On the day after Election Day, the Fox News app hit No. 2 among the top free iPhone apps on the U.S. App Store. This is the highest it has ever ranked. The second-highest ranking it reached was No. 9 on November 9, 2016.

Meanwhile, the CNN app hit No. 3 on the same — its highest rank since it hit No. 2 back on Jan. 20, 2017, the date of Trump’s inauguration. This was also the 3rd highest ever rank. (The app previously reached No, 1 on Nov. 9, 2016).

As of Nov. 5, CNN maintained a top ranking at No. 4 but Fox News slipped to No. 14.

Other news apps didn’t do as well, barely cracking the top 50 at best

Android users showed less interest in the elections, where Fox News only got as high as No. 12 on Nov. 5 and CNN reached No. 16.

In lighter news from this stressful week, Calm’s meditation app made headlines for its hilarious ad campaign that saw it sponsoring CNN’s coverage of the presidential election. The app popped up on the screen during CNN’s “Key Race Alert.” The move seemed to benefit the app in terms of downloads and rankings. 

On social media apps, companies had to react quickly to clamp down on the rapid-fire spread of misinformation and conspiracy theories, and other violating content. Facebook and Instagram ran notifications to inform users that votes were still being counted after Trump falsely claimed he had won.

Facebook also removed conspiracy groups and hashtags associated with election misinformation, as did TikTok. In Facebook’s case, a hashtag block is not a full removal — content will still be returned if you search for a blocked phrase, even if it’s largely from news organizations reporting on the trend. On TikTok, however, a blocked terms returns nothing. TikTok also took more decisive action to fully remove videos spreading election misinformation.

However, for those in the market for misinformation, it’s still fairly easy to find across TikTok, as many other hashtags and terms where misinfo is shared remained untouched.

YouTube, however, took a more controversial stance on its handling of misinformation. The platform this week demonstrated how it’s complicit in the spread of false and dangerous information, when it refused to remove a video that falsely claimed Trump won the election and worked to undermine Americans’ trust in democratic elections. YouTube believes demonetization and warning labels are the solution, but by keeping this content online, it retains users. And then those people do, in fact, watch ads elsewhere, allowing YouTube to profit.

The company did draw the line, at least, at a video from Steve Bannon, that called for violence against and deaths of Anthony Fauci and FBI director Christopher Wray.

According to Sensor Tower, the top social media apps in the U.S. including TikTok, Facebook, Instagram, Snapchat, and Twitter saw their combined iOS and Android installs from November 3 to November 5 decline 8% week-over-week when compared to the installs from October 27 to October 29.

Right-wing social app Parler, meanwhile, ranked at No. 1,023 on iOS on November 2. On November 5, it had climbed to No. 241. As of Friday, it was No. 29.

Apple rolls out a big update to iOS 14

Apple this week released iOS 14.2, which brings a number of new features in addition to the usual bug fixes and security updates.

Of note to consumers, the update brings 117 new emojis.

Among the new emoji is a tweaked version of the “Face with Medical Mask,” which changes the face so the eyes are smiling. Other notable additions include the transgender flag, pinched fingers, people hugging, a smiling face with tear, a man bottle-feeding a baby and a more inclusive set of tuxedo-wearing people and people wearing a veil. There’s also a gender-inclusive alternative to Santa and Mrs. Claus, which offers a gender neutral option of a person in a Santa hat.

The updated iOS also offers eight new wallpapers in both light and dark version; new AirPlay controls; the ability to connect the HomePod to Apple TV for stereo, surround sound and Dolby Atmos audio; support for iPhone 12 Leather Sleeve with MagSafe; optimized battery charging for AirPods; headphone audio level notifications; and more.

One of the more interesting new features, however, is an accessibility upgrade for blind users that takes advantage of the lidar support in iPhone 12, 12 Pro Max and iPad Pro.

The “People Detection” features leverages lidar to detect how close people are to the device owner, as a way to help blind users better navigate the world. 

Get ready for Apple’s new “app privacy” labels

Apple this week announced a deadline of December 8, 2020 for app developers to submit their app’s privacy information to the App Store. This information will be required to submit new apps and app updates, and will give consumers a better understanding of how apps are accessing their data.

On each app’s product page following the deadline, users will be able to see what data an app collects and how that data is used to track them, Apple says. This doesn’t only include data the app developers collect themselves, but also data that’s transmitted off the device for later use by the developer or a third-party partner. That means app developers will have to disclose how data is being handed over to analytics tools, ad networks and other third-party SDKs and other vendors.

With this pro-consumer privacy change, Apple customers will know how developers are tracking and/or sharing their personal info, health data, financial information, location, contacts data, user content, browsing and search histories, purchases, app usage, diagnostic and more.

While it’s hard to argue that this is a change for the better, in terms of consumer benefits, Apple’s reasons may not be just about serving their customer base.

By cutting off the ad analytics industry with its upcoming crippling of IDFA and making it more obvious which apps track user data, Apple is putting its own ad tech in a more favored position. Its framework SKAdNetwork hugely benefits from these changes — effectively giving Apple a seat at the table in the multi-billion-dollar ad industry. So, let’s stop pretending this is all about how much Apple cares for its users. This is business.

Weekly News Round-Up

Platforms

• Fortnite finds a way to skirt App Store ban. The game, banned by Apple in a battle over App Store fees, may have another way to reach the iPhone user base by way of Nvidia’s GeForce cloud gaming service that runs on the mobile web.
• WhatsApp rolls out a payments service in India. The Facebook-owned messaging app began testing the service in 2018, but struggled to get government approval. The service, which is built on UPI, offers a challenge to Google and Walmart which currently dominate the mobile payments market in India.
• WhatsApp adds disappearing messages. The new ephemeral messages disappear after seven days and rolled out across iOS and Android. It also made it easier for users to delete large files and manage storage.
• Apple announces a new event. The expectation is that this one will be Mac-focused.
• Apple warns investors that reduced App Store revenues would hurt its financial results. The warning comes amidst increasing regulatory pressure on the App Store, which today requires developers to distribute through its platform to reach iOS users, and requires IAPs through Apple Pay.

Services

• Google Stadia, the cloud gaming service, rolls out Stadia Family Sharing. The feature lets families of up to six share games.
• All the U.K. contact tracing apps are now compatible and work across borders. The separate apps address England & Wales, Scotland and Northern Ireland markets, and use the Apple/Google API.

Politics

• PUBG Mobile plots a way to return to the Indian market, after a ban over cybersecurity concerns due to its connections with Chinese giant Tencent. The company is looking for a local publisher.
• Facebook and Instagram added notifications during the tight U.S. election this week to alert users that votes were still being counted. The move follows Trump’s spread of conspiracies that elections were rigged and his lies saying he had won before all votes had been counted.

Security & Privacy

• Google Screenwise is dead. The tracking app, which records users’ web usage, had been in the news last year for improperly using an iOS enterprise certificate for distribution.

Apps in the News

• Spotify adds standalone streaming support to its Apple Watch app. That means users can leave their iPhone behind and stream directly from their Watch over Wi-Fi or cellular.
• Facebook tests “dark mode” on Android. The new dark mode option had been tested earlier on desktop.
• Triller names Daniel Gillick its Global Head of Partnerships. The exec was previously senior manager of music content and industry relations at Triller rival TikTok.
• TikTok signed a new, longer-term agreement with Sony Music. The deal allows the app to continue to offer music from Sony artists in its app.
• TikTok tests iOS 14 “App Clips.” The test was spotted in beta, and would allow users a full-screen preview with a download prompt.
• NBC News launched an iOS 14 widget for putting election news and results on your home screen.
• Pokémon GO reaches $1 billion in 2020; lifetime revenue tops $4 billion, says Sensor Tower.
• Tencent claims record 100 million daily users on mobile game, Honor of Kings. The game consistently ranks among the world’s top-grossing games, as well.
• Match Group reported Tinder subscriber growth despite a pandemic where people are supposed to be social distancing. Tinder had 6.6 million subscribers in the quarter, up from 6.2 million in the prior quarter. Tinder revenue rose 15%, but ARPU slipped 1%.

Trends

• App Store revenue grew 30% year-over-year during the month of October, according to Sensor Tower preliminary data.
• Apple IAPs rose 54% during Q2 according to research from mCommerce agency JMango360.
• 56% of marketers said iOS 14 updates will negatively impact their businesses, due to how Apple’s new consumer privacy protections offer users more ways to block tracking.
• TikTok still tops worldwide downloads in October 2020.

Funding and M&A (and IPOs)

• Delivery startup goPuff, whose app lets you order convenience store items and alcohol for same-day delivery, acquires alcoholic beverage chain BevMo for $350 million. 
• TikTok parent company ByteDance looking to raise $2 billion before its IPO on the Hong Kong StockExchange.
• Kuaishou Technology, the world’s second-largest short term video app and TikTok rival, filed for IPO in Hong Kong. 
• European challenger banking app Vivid Money raises $17.6 million. The bank offers a metal debit card controlled by an app, and other tech-forward features.

Downloads

The Roku Channel app

The recently released app lets anyone, including non-Roku users, stream from Roku’s catalog of free, live and premium movie and TV content on their iOS or Android device. The app also offers more than 115 live channels including live news, weather, sports, food & home, reality TV, science fiction, true crime, kids’ entertainment and Spanish language content.

The Collage Atlas

Looking to wind-down from a week of stress and anxiety? The Apple Arcade game, The Collage Atlas, may help. This unique hand-drawn game created by developer John William Evelyn is a work of art where players are invited to journey through a pen-and-ink dream world, accompanied by a soundtrack shaped by your gameplay. The title, which was in development for more than four years, is more of something to experience than something to more actively “play” — and that may be just what’s needed right now.

A former controller and CFO of the state of California, Steve Westly is passionate about government. The onetime eBay exec and early Tesla board member has also been a proponent of clean energy for roughly 30 years, so he’s feeling optimistic right now, with former U.S. VP Joe Biden amassing a growing number of electoral votes and widening his leading Donald Trump as he inches toward an election win.

We talked earlier today with Westly, who founded the venture firm The Westly Group 13 years ago and which is currently raising up to $250 million for a fourth fund, according to SEC paperwork filed earlier this week. We wanted to know whether he thinks Biden will be able to achieve any part of his climate plan in the likely scenario that Republicans continue to control the Senate. We also wondered what he makes of VCs leaving California, and where he sees the most opportunities right now. We kicked off our conversation with the news of the day. Our chat has been edited lightly for length.

TC: As we talk, Joe Biden looks to be on the cusp of winning the U.S. presidential election while Donald Trump continues to tweet about taking his claims about a rigged election to the Supreme Court. Are you concerned about that rhetoric, given that Republicans don’t seem to be pushing back against it?

SW: You have to be worried about such things, but I think most people are looking at the big picture. This is not going to be a 270 to 268 [electoral college] vote. Biden might get 290 to 306 [electoral votes]. It’s a decisive difference. He also received more than 4 million more [popular] votes than Trump. The people have spoken, and they’ve spoken loudly.

There are rules in most states that say if you aren’t within a percent or half a percent — i think [Biden has a] 1.6% [advantage] in Nevada and 1.4% [lead in] Arizona right now — there won’t be a recount. I think his lead in Pennsylvania will rise to 100,000, so the window [for a Trump win] is diminishing pretty quickly.

I am also seeing more Republican officials, like Senator Bob Toomey of Pennsylvania, saying that we count the votes, we follow the rules, what the president is doing is irresponsible, and it’s time to move on.

TC: You’re raising a fund that you’ve already told me you won’t talk about, citing SEC rules, but I’m wondering: has Westly Group’s mandate has changed over time? I remember when the firm was first formed that it was one of the only pure ‘cleantech’ venture firms, but it seems like it has broadened out a bit.

SW: Sustainable energy has become the new hot thing and it makes me laugh because I’ve been involved in energy for 30 years [including in government roles]. I wrote two books on the future of energy in the ‘80s, so I’ve been at this a bit.

Our thesis continues to be that there are revolutions occurring in smart energy, mobility and smart buildings, and they are being driven by renewable energy, which costs less than carbon-based fuels in virtually every part of the world today, from the U.S. to India to Africa. That’s not a political statement; it’s a fact.

Fully 70% of new energy coming online now is sustainable, so people are smart to pay attention to that. Because costs are going down and the cost of storage is going down precipitously — the cost of lithium ion batteries came down so much that we reached an inflection point in 2018, and the cost of a kilowatt per hour costs less than $150 now  — everybody is going electric.

Carmakers haven’t wanted to say this publicly because it freaks out shareholders, but we’re headed toward a world where the majority of energy will be sustainable in the near future and most of the cars will be electric and that will happen a lot faster than people think.

Buildings play a key role, too, because they’ve historically been dumb; now they’re digitized buildings with power storage, and soon every home, building, hospital, and university [will run off digitized energy] and you‘ll see arbitrage happening continuously between buildings, homes, and vehicles, where people won’t pay a penny for electricity or gasoline every again. A decade ago when I said this, people thought I was nuts, but now California requires that all newly constructed homes must have solar panels.

TC: With things moving more quickly in that direction, what does all this lost revenue mean for PG&E, the company that powers most of Northern California and whose infrastructure is already crumbling and causing wildfires?

They should follow the lead of smart utilities like Duke [a Westly Group investor] and European companies that are moving beyond traditional revenue streams to new revenue streams. Every utility today has a menu, and if yours only features electricity ions and gas molecules, that’s not a good menu. It’s like saying we have soup and meat, period. These companies should have a special menu for residential customers and a different menu for commercial and industrial customers and they should be thinking about installing power walls and putting solar on roofs; they should be thinking long-term contracts, like even financing electric vehicles.

TC: PG&E is in a bad spot, but California may be, too, as a lot of people leave the Bay Area, citing taxes, among other reasons. Are you worried about a broader movement out of the state and what it could mean?

SW: This is the big question of the next 10 years. California is about to face a wall of debt. We’ve gone from a surplus to what could be a $40 billion deficit in a very short period [because of COVID-19].

This year will be covered a little because there’s still an active IPO market [as capital gains are taxed the same as income, making the state heavily dependent on the stock market]. But there are 12.6 million Americans out of work, and a disproportionate number of them are in California, so likely a Democrat-controlled legislature will try and start to pass a series of taxes.

Prop 15 [which would have taxed properties based on their current market value rather than purchase price and would have increased property taxes on commercial properties] failed, so this will be an ongoing issue. Still, if we continue to raise taxes, we run the risk of losing entrepreneurs to other states. I know firsthand many friends who have moved to Austin. We need to have a balanced approach to managing out expenses without pushing people off to other states.

TC: Any bright ideas on that front?

SW: I was the CFO of California, and your option beside taxing more is spending less. Those are the choices.

Longer term, we need a major overhaul of the tax system so we aren’t aren’t so dependent on capital gains, which is a roller coaster system where when you hit a trough in the market, you have to go and lay off a bunch of teachers, then try to hire them back when the economy is better.

TC: It’s looking like Joe Biden is going to win the election, but there’s also a strong chance that he’ll be working with a Republican-controlled Senate. Meanwhile, climate change was not in the top five concerns for voters of either party. Does this can get kicked down the road again?

No, it just means they’ll have to work together and that he’ll have to go directly to the issues that are most popular to get them through.

Trump had no clue that sustainable energy is immensely popular today and that some of the states that used to block green initiatives — including Texas, North Dakota, and South Dakota — are increasingly becoming wind and solar powers, such that their senators who used to say, ‘natural gas forever’ are also saying that solar and wind are employing more and more people in their states.

What do you see as first steps?

SW: Biden will bring the U.S. back into the Paris climate agreement. You’ll also see him at the front of this global movement toward the electrification of everything, and there will be support for EVs and support for sustainable energy.

You’ll also see some sort of penalties or restrictions on carbon-based fuels because of the increased data we have that carbon in the atmosphere is causing public health problems, reducing air quality and that large insurance companies are having to pay for [these things]. Now that Munich Re and others say, ‘We pretty much know what the cost is, and we’re charging you back,’ the government can use that data to charge carbon producers appropriately.

TC: Traditional energy companies– the biggest carbon emitters — say they’ve resolved to address this problem. Do you think that’s mostly optics?

SW: A lot is optics, but it’s also a realization that you either change your business model or you go down with the ship. You don’t want to take the Kodak approach. You want to be Apple and reinvent yourself.

I’ve worked at TechCrunch for a little over a year, but this was one of the hardest weeks on the job so far.

Like many people, I’ve been distracted in recent days. As I write this, I have one eye on my keyboard and another on a TV that sporadically broadcasts election results from battleground states. Despite the background noise, I’m completely impressed with the TechCrunch staff; it takes a great deal of focus and energy to set aside the world’s top news story and concentrate on the work at hand.

Monday feels like a distant memory, so here’s an overview of top Extra Crunch stories from the last five days. These articles are only available to members, but you can use discount code ECFriday to save 20% off a one or two-year subscription. Details here.

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B2B marketplaces will be the next billion-dollar e-commerce startups

Marketplaces created for B2B activity are surging in popularity. According to one report, transactions in these venues generated around $680 billion in 2018, but that figure is predicted to reach $3.6 trillion by 2024.

The COVID-19 pandemic is helping startups that innovate in areas like payments, financing, insurance and compliance.

Even so, according to Merritt Hummer, a partner at Bain Capital Ventures, “B2B marketplaces cannot simply remain stagnant, serving as simple transactional platforms.”

The startups that are first to market with innovative “adjacent services will emerge as winners in the next few years,” she advises.

Software companies are reporting a pretty good third quarter

For this morning’s edition of The Exchange, Alex Wilhelm interviewed three executives at cloud and SaaS companies to find out how well Q3 2020 has been treating them:

• Ping CFO Raj Dani
• JFrog CEO Shlomi Ben Haim
• BigCommerce CEO Brent Bellm

As one Twitter commenter noted, Alex doesn’t just talk to the best-known tech execs; he reaches out to a wide range of people, and it shows in the quality of his reporting.

Will new SEC equity crowdfunding rules encourage more founders to pass the hat?

New Regulation Crowdfunding guidelines the SEC released this week allow companies to directly raise up to $5 million each year from individual investors, an increase from the previous limit of $1.07 million.

“Life has gotten easier in other ways as well for founders pursuing this fundraising type and the platforms that seek to simplify it,” reports Lucas Matney, who interviewed Wefunder CEO Nicholas Tommarello.

Funding for seed-stage startups slumped 32% last quarter compared to 2019, so “the tide could be turning” for founders who were reluctant to raise from a giant pool of small dollars, Lucas found.

3 tips for SaaS founders hoping to join the $1 million ARR club

Reaching scale is paramount for software companies, so growth is a top priority.

In a guest post for Extra Crunch, Drift CEO David Cancel explains that too many SaaS and cloud companies waste time trying out a number of solutions before finding the right recipe.

“I can tell you that there absolutely is a repeatable process to building a successful SaaS business,” he says, “one that can reliably guide you to product-market fit and then help you quickly scale.”

Implementing a data-driven approach to guarantee fair, equitable and transparent employee pay

Companies that hope to eliminate longstanding inequities in the workplace can’t just rely on doing what they think is right. Without a data-driven approach, subjective judgments and implicit bias tend to negate good intentions.

Many startups don’t hire full-time HR managers until they’ve reached scale, but this comprehensive post lays out several critical factors for creating — and maintaining — a fair pay model.

4 questions as Airbnb’s IPO looms

News broke this week that Airbnb plans to to raise approximately $3 billion in a public filing that would allow it to reach a valuation in the $30 billion range.

Our expert unicorn wrangler Alex Wilhelm says curious investors should ask themselves the following:

• Will Airbnb be able to show a near-term path to profitability?
• How high-quality is Airbnb’s revenue after the pandemic?
• Is there anything lurking in its recent financings that public investors won’t like?
• Will Airbnb be able to show year-over-year revenue gains?

Starling Bank founder Anne Boden says new book ‘isn’t a memoir’

“People at the end of their career write memoirs,” Starling Bank founder Anne Boden told TechCrunch’s Steve O’Hear. “I’m at the beginning.”

In Boden’s new book, “Banking On It,” she shares the story of how (and why) she decided to found a challenger bank, eventually parting with colleagues who launched competitor Monzo.

“This is really putting down on paper where we are at the moment,” she said. “It’s been written over several years, and I’m hoping to use this to inspire a generation of entrepreneurs.”

Pandemic’s impact disproportionately reduced VC funding for female founders

Natasha Mascarenhas and Alex Wilhelm collaborated on Monday’s edition of The Exchange to report on how investors became less likely to fund female founders since the beginning of the COVID-19 pandemic.

Drawing on data from multiple sources, Alex and Natasha found that startups led by women and mixed-gender founding teams received 48% less VC funding in Q3 2020 than in Q2, even though overall funding bounced back.

“From fear in late Q1, to a middling Q2, to a boom in Q3,” they wrote. “It was an impressive comeback. For some.”

Booming edtech M&A activity brings consolidation to a fragmented sector

Natasha Mascarenhas has owned TechCrunch’s edtech beat since she came aboard at the start of 2020, just a few months before the pandemic led to widespread school closures.

She’s reported on countless funding rounds and interviewed founders and investors who are active in the space, but she recently spotted a new trend: “M&A activity is buzzier than usual.”

4 takeaways from fintech VC in Q3 2020

Alex Wilhelm shrugged off his Election Day distractions long enough to write a column that comprehensively examined fintech investment activity over the last quarter.

In Q3 2020, “60% of all capital raised by financial technology startups came from just 25 rounds worth $100 million or more,” he reports.

Are these mega-rounds funding “the next crop of unicorns?” It’s too early to say, but it’s clear that pandemic-fueled uncertainty is driving consumers into the arms of companies like Robinhood, Chime, Lemonade and Root.

In 1,316 words, Alex captures the state of play in insurtech, banking, wealth management and payments investing: “Now, we just want to see some ******* IPOs.”

New GV partner Terri Burns has a simple investment thesis: Gen Z

Five years ago, Terri Burns was a product manager at Twitter. Today, she’s the first Black woman — and the youngest person — to be promoted to partner at Google Ventures.

In a Q&A with Natasha Mascarenhas, Burns talked about her plans for the new role, as well as her investment thesis.

“I don’t know what it actually means to build a sustainable business and venture is a really great way to sort of learn that,” said Burns.

GV General Partner MG Siegler talks portfolio management and fundraising 6 months into the COVID-19 pandemic

Are founders and investors really leaving Silicon Valley for greener pastures? Now that investors are limited to virtual interactions, are they being more hands-on with their portfolio companies?

In an Extra Crunch Live chat hosted by Darrell Etherington, GV General Partner MG Siegler talked about how the pandemic is — and is not — shaping the way he does business.

“I do feel like things are operating in a pretty streamlined manner, or as much as they can be at this point,” he said.

“But, you know, there’s always going to be some more wildcards — like we’re a week away, today, from the U.S. election.”

Thank you very much for reading Extra Crunch; I hope you have a great weekend.

Netflix takes an old-fashioned approach for its latest feature, Amazon plans a new data center in India and we review the PlayStation 5. This is your Daily Crunch for November 6, 2020.

The big story: Netflix tests a linear video channel

Today in surprising product strategies: Netflix is testing a linear channel in France called Netflix Direct, according to Variety.

To be clear, it’s not a regular TV channel but rather something you access on Netflix’s website. But like a broadcast or cable channel, it ditches streaming’s on-demand side. Instead, you watch whatever movie or TV show is playing right now.

Netflix previously tested a Shuffle button, so apparently it’s very interested in exploring a viewer experience where you just turn the TV on and veg out. The service says it’s testing this in France because “many viewers like the idea of programming that doesn’t require them to choose what they are going to watch.”

The tech giants

Review: Sony’s PlayStation 5 is here, but next-generation gaming is still on its way — Devin Coldewey writes that the new generation of consoles is both a hard and an easy sell.

Amazon to invest $2.8 billion to build its second data center region in India — The investment will allow Amazon to launch an AWS Cloud region in Hyderabad by mid-2022.

Steve Bannon’s show pulled off Twitter and YouTube over calls for violence — Bannon had his show suspended from Twitter and an episode removed by YouTube after calling for violence against FBI director Christopher Wray and Dr. Anthony Fauci.

Startups, funding and venture capital

Challenger bank Starling is out raising a new £200M funding round — Having raised £363 million to date, including a £100 million state-aid grant, Starling now boasts 1.9 million customers.

Chinese autonomous vehicle startup Pony.ai hits $5.3 billion valuation — The company has raised more than $1 billion since its founding, including $400 million from Toyota.

Provizio closes $6.2M seed round for its car safety platform using sensors and AI — The startup has a “five-dimensional” sensory platform that supposedly perceives, predicts and prevents car accidents in real time and beyond the line-of-sight.

Advice and analysis from Extra Crunch

Startups making meat alternatives are gaining traction worldwide — New partnerships with global chains like McDonald’s in Hong Kong, the launch of test kitchens in Israel and new financing rounds for startups in Sydney and Singapore point to abounding opportunities.

Software companies are reporting a pretty good third quarter — It’s great news for startups looking for capital heading into 2021.

(Reminder: Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Europe urges e-commerce platforms to share data in fight against coronavirus scams — The concern here is not only consumers being ripped off, but also the real risk of harm if people buy a product that does not actually protect them as claimed.

Elon Musk’s Tesla tequila will run you $250 a bottle — Sure, why not.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

Netflix takes an old-fashioned approach for its latest feature, Amazon plans a new data center in India and we review the PlayStation 5. This is your Daily Crunch for November 6, 2020.

The big story: Netflix tests a linear video channel

Today in surprising product strategies: Netflix is testing a linear channel in France called Netflix Direct, according to Variety.

To be clear, it’s not a regular TV channel but rather something you access on Netflix’s website. But like a broadcast or cable channel, it ditches streaming’s on-demand side. Instead, you watch whatever movie or TV show is playing right now.

Netflix previously tested a Shuffle button, so apparently it’s very interested in exploring a viewer experience where you just turn the TV on and veg out. The service says it’s testing this in France because “many viewers like the idea of programming that doesn’t require them to choose what they are going to watch.”

The tech giants

Review: Sony’s PlayStation 5 is here, but next-generation gaming is still on its way — Devin Coldewey writes that the new generation of consoles is both a hard and an easy sell.

Amazon to invest $2.8 billion to build its second data center region in India — The investment will allow Amazon to launch an AWS Cloud region in Hyderabad by mid-2022.

Steve Bannon’s show pulled off Twitter and YouTube over calls for violence — Bannon had his show suspended from Twitter and an episode removed by YouTube after calling for violence against FBI director Christopher Wray and Dr. Anthony Fauci.

Startups, funding and venture capital

Challenger bank Starling is out raising a new £200M funding round — Having raised £363 million to date, including a £100 million state-aid grant, Starling now boasts 1.9 million customers.

Chinese autonomous vehicle startup Pony.ai hits $5.3 billion valuation — The company has raised more than $1 billion since its founding, including $400 million from Toyota.

Provizio closes $6.2M seed round for its car safety platform using sensors and AI — The startup has a “five-dimensional” sensory platform that supposedly perceives, predicts and prevents car accidents in real time and beyond the line-of-sight.

Advice and analysis from Extra Crunch

Startups making meat alternatives are gaining traction worldwide — New partnerships with global chains like McDonald’s in Hong Kong, the launch of test kitchens in Israel and new financing rounds for startups in Sydney and Singapore point to abounding opportunities.

Software companies are reporting a pretty good third quarter — It’s great news for startups looking for capital heading into 2021.

(Reminder: Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Europe urges e-commerce platforms to share data in fight against coronavirus scams — The concern here is not only consumers being ripped off, but also the real risk of harm if people buy a product that does not actually protect them as claimed.

Elon Musk’s Tesla tequila will run you $250 a bottle — Sure, why not.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

Startups that produce lab-grown meat and meat substitutes are gaining traction and raising cash in global markets, mirroring a surge of support food tech companies are seeing in the United States.

New partnerships with global chains like McDonald’s in Hong Kong, the launch of test kitchens in Israel and new financing rounds for startups in Sydney and Singapore point to abounding opportunities in international markets for meat alternatives.

In Hong Kong, fresh off a $70 million round of funding, Green Monday Holdings’ OmniFoods business unit was tapped by McDonald’s to provide its spam substitute at locations across the city.

The limited-time menu items featuring OmniFoods’ pork alternatives show that the fast food chain remains willing to offer customers vegetarian and vegan sandwich options — so long as they live outside of the U.S. In its home market, McDonald’s has yet to make any real initiatives around bringing lab-grown meat or meat replacements to consumers.

Speaking of lab-grown meat, consumers in Tel Aviv will now be able to try chicken made from a lab at the new pop-up restaurant The Chicken, built in the old test kitchen of the lab-grown meat producer SuperMeat.

The upmarket restaurant doesn’t cost a thing: it’s free for customers who want to test the company’s blended chicken patties made with chicken meat cultivated from cells in a lab that are blended with soy, pea protein or whey, according to the company.

Provizio, a combination hardware and software startup with technology to improve car safety, has closed a seed investment round of $6.2million. Investors include Bobby Hambrick (the founder of Autonomous Stuff); the founders of Movidius; the European Innovation Council (EIC); ACT Venture Capital.

The startup has a ‘five-dimensional’ sensory platform that – it says – perceives, predicts and prevents car accidents in real-time and beyond the line-of-sight. Its ‘Accident Prevention Technology Platform’ combines proprietary vision sensors, machine learning, radar and with ultra-long range and foresight capabilities to prevent collisions at high speed and in all weather conditions, says the company. The Provizio team is made up of experts in robotics, AI, and vision and radar sensor development.

Barry Lunn, CEO of Provizio Said: “One point three five road deaths to zero drives everything we do at Provizio. We have put together an incredible team that is growing daily. AI is the future of automotive accident prevention and Provizio 5D radars with AI on-the-edge are the first step towards that goal.”

Also involved in Provizio is also Dr. Scott Thayer and Prof Jeff Mishler formally of Carnegie Mellon robotics, famous for developing early autonomous technologies for Google/ class="crunchbase-link" href="https://crunchbase.com/organization/waymo" target="_blank" data-type="organization" data-entity="waymo">Waymo, Argo, Aurora and Uber.

Provizio, a combination hardware and software startup with technology to improve car safety, has closed a seed investment round of $6.2million. Investors include Bobby Hambrick (the founder of Autonomous Stuff); the founders of Movidius; the European Innovation Council (EIC); ACT Venture Capital.

The startup has a ‘five-dimensional’ sensory platform that – it says – perceives, predicts and prevents car accidents in real-time and beyond the line-of-sight. Its ‘Accident Prevention Technology Platform’ combines proprietary vision sensors, machine learning, radar and with ultra-long range and foresight capabilities to prevent collisions at high speed and in all weather conditions, says the company. The Provizio team is made up of experts in robotics, AI, and vision and radar sensor development.

Barry Lunn, CEO of Provizio Said: “One point three five road deaths to zero drives everything we do at Provizio. We have put together an incredible team that is growing daily. AI is the future of automotive accident prevention and Provizio 5D radars with AI on-the-edge are the first step towards that goal.”

Also involved in Provizio is also Dr. Scott Thayer and Prof Jeff Mishler formally of Carnegie Mellon robotics, famous for developing early autonomous technologies for Google/ class="crunchbase-link" href="https://crunchbase.com/organization/waymo" target="_blank" data-type="organization" data-entity="waymo">Waymo, Argo, Aurora and Uber.

European lawmakers are pressing major ecommerce and media platforms to share more data with each other as a tool to fight rogue traders who are targeting consumers with coronavirus scams.

After the pandemic spread to the West Internet platforms were flooded with local ads for PPE of unknown and/or dubious quality and other dubious coronavirus offers — even after some of the firms banned such advertising.

The concern here is not only consumers being ripped off but the real risk of harm if people buy a product that does not offer the protection claimed against exposure to the virus or even get sold a bogus coronavirus ‘cure’ when none in fact exists.

In a statement today, Didier Reynders, the EU commissioner for justice, said: “We know from our earlier experience that fraudsters see this pandemic as an opportunity to trick European consumers. We also know that working with the major online platforms is vital to protect consumers from their illegal practices. Today I encouraged the platforms to join forces and engage in a peer-to-peer exchange to further strengthen their response. We need to be even more agile during the second wave currently hitting Europe.”

The Commission said Reynders met with 11 online platforms today — including Amazon, Alibaba/AliExpress, Ebay, Facebook, Google, Microsoft/Bing, Rakuten and (TechCrunch’s parent entity) Verizon Media/Yahoo — to discuss new trends and business practices linked to the pandemic and push the tech companies to do more to head off a new wave of COVID-19 scams.

In March this year EU Member States’ consumer protection authorities adopted a common position on the issue. The Commission and a pan-EU network of consumer protection enforcers has been in regulator contact with the 11 platforms since then to push for a coordinated response to the threat posed by coronavirus scams.

The Commission claims the action has resulted in the platforms reporting the removal of “hundreds of millions” of illegal offers and ads. It also says they have confirmed what it describes as “a steady decline” in new coronavirus-related listings, without offering more detailed data.

In Europe, tighter regulations over what ecommerce platforms sell are coming down the pipe.

Next month regional lawmakers are set to unveil a package of legislation that will propose updates to existing ecommerce rules and aim to increase their legal responsibilities, including around illegal content and dangerous products.

In a speech last week, Commission EVP Margrethe Vestager, who heads up the bloc’s digital policy, said the Digital Services Act (DSA) will require platforms to take more responsibility for dealing with illegal content and dangerous products, including by standardizing processes for reporting illegal content and dealing with reports and complaints related to content.

A second legislative package that’s also due next month — the Digital Markets Act — will introduce additional rules for a sub-set of platforms considered to hold a dominant market position. This could include requirements that they make data available to rivals, with the aim of fostering competition in digital markets.

MEPs have also pushed for a ‘know your business customer’ principle to be included in the DSA.

Simultaneously, the Commission has been pressing for social media platforms to open up about what it described in June as a coronavirus “infodemic” — in a bid to crack down on COVID-19-related disinformation.

Today the Commission gave an update on actions taken in the month of September by Facebook, Google, Microsoft, Twitter and TikTok to combat coronavirus disinformation — publishing its third set of monitoring reports. Thierry Breton, commissioner for the internal market, said more needs to be done there too.

“Viral spreading of disinformation related to the pandemic puts our citizens’ health and safety at risk. We need even stronger collaboration with online platforms in the coming weeks to fight disinformation effectively,” he said in a statement. 

The platforms are signatories of the EU’s (non-legally binding) Code of Practice on disinformation.

Legally binding transparency rules for platforms on tackling content such as illegal hate speech look set to be part of the DSA package. Though it remains to be seen how the fuzzier issue of ‘harmful content’ (such as disinformation attached to a public health crisis) will be tackled.

A European Democracy Action Plan to address the disinformation issue is also slated before the end of the year.

In a pointed remark accompanying the Commission’s latest monitoring reports today, Vera Jourová, VP for values and transparency, said: “Platforms must step up their efforts to become more transparent and accountable. We need a better framework to help them do the right thing.”

European lawmakers are pressing major ecommerce and media platforms to share more data with each other as a tool to fight rogue traders who are targeting consumers with coronavirus scams.

After the pandemic spread to the West Internet platforms were flooded with local ads for PPE of unknown and/or dubious quality and other dubious coronavirus offers — even after some of the firms banned such advertising.

The concern here is not only consumers being ripped off but the real risk of harm if people buy a product that does not offer the protection claimed against exposure to the virus or even get sold a bogus coronavirus ‘cure’ when none in fact exists.

In a statement today, Didier Reynders, the EU commissioner for justice, said: “We know from our earlier experience that fraudsters see this pandemic as an opportunity to trick European consumers. We also know that working with the major online platforms is vital to protect consumers from their illegal practices. Today I encouraged the platforms to join forces and engage in a peer-to-peer exchange to further strengthen their response. We need to be even more agile during the second wave currently hitting Europe.”

The Commission said Reynders met with 11 online platforms today — including Amazon, Alibaba/AliExpress, Ebay, Facebook, Google, Microsoft/Bing, Rakuten and (TechCrunch’s parent entity) Verizon Media/Yahoo — to discuss new trends and business practices linked to the pandemic and push the tech companies to do more to head off a new wave of COVID-19 scams.

In March this year EU Member States’ consumer protection authorities adopted a common position on the issue. The Commission and a pan-EU network of consumer protection enforcers has been in regulator contact with the 11 platforms since then to push for a coordinated response to the threat posed by coronavirus scams.

The Commission claims the action has resulted in the platforms reporting the removal of “hundreds of millions” of illegal offers and ads. It also says they have confirmed what it describes as “a steady decline” in new coronavirus-related listings, without offering more detailed data.

In Europe, tighter regulations over what ecommerce platforms sell are coming down the pipe.

Next month regional lawmakers are set to unveil a package of legislation that will propose updates to existing ecommerce rules and aim to increase their legal responsibilities, including around illegal content and dangerous products.

In a speech last week, Commission EVP Margrethe Vestager, who heads up the bloc’s digital policy, said the Digital Services Act (DSA) will require platforms to take more responsibility for dealing with illegal content and dangerous products, including by standardizing processes for reporting illegal content and dealing with reports and complaints related to content.

A second legislative package that’s also due next month — the Digital Markets Act — will introduce additional rules for a sub-set of platforms considered to hold a dominant market position. This could include requirements that they make data available to rivals, with the aim of fostering competition in digital markets.

MEPs have also pushed for a ‘know your business customer’ principle to be included in the DSA.

Simultaneously, the Commission has been pressing for social media platforms to open up about what it described in June as a coronavirus “infodemic” — in a bid to crack down on COVID-19-related disinformation.

Today the Commission gave an update on actions taken in the month of September by Facebook, Google, Microsoft, Twitter and TikTok to combat coronavirus disinformation — publishing its third set of monitoring reports. Thierry Breton, commissioner for the internal market, said more needs to be done there too.

“Viral spreading of disinformation related to the pandemic puts our citizens’ health and safety at risk. We need even stronger collaboration with online platforms in the coming weeks to fight disinformation effectively,” he said in a statement. 

The platforms are signatories of the EU’s (non-legally binding) Code of Practice on disinformation.

Legally binding transparency rules for platforms on tackling content such as illegal hate speech look set to be part of the DSA package. Though it remains to be seen how the fuzzier issue of ‘harmful content’ (such as disinformation attached to a public health crisis) will be tackled.

A European Democracy Action Plan to address the disinformation issue is also slated before the end of the year.

In a pointed remark accompanying the Commission’s latest monitoring reports today, Vera Jourová, VP for values and transparency, said: “Platforms must step up their efforts to become more transparent and accountable. We need a better framework to help them do the right thing.”