Author: azeeadmin

25 Apr 2021

Robo-advisor StashAway gets $25M Series D led by Sequoia Capital India

Investment app StashAway has raised a $25 million Series D led by Sequoia Capital India, with participation from returning investors Eight Roads Ventures and Square Peg. After regulatory approvals for the funding are completed, Sequoia Capital India managing director Abheek Anand will join StashAway’s board of directors as part of the round.

StashAway does not disclose how many investors use its robo-advisor app, but it surpassed $1 billion assets under management in January. It currently has operations in in five markets: Singapore, Malayasia, the United Arab Emirates and Hong Kong, and is preparing to launch in Thailand.

Its Series D brings StashAway’s total paid-up capital to about $61.4 million. The new funding will be used on expanding StashAway’s product and engineering teams to continue feature and product development. Founded in September 2016, the company will also offer to buy back up to $3 million in stock options from its employees. Co-founder and chief executive officer Michele Ferrario told TechCrunch that many of StashAway’s employees have been with the company since the start, so this gives its team members a chance to cash out stock options that have vested while creating a more compelling compensation package for recruiting talent.

StashAway’s products include services for retail investors that focus on wealth-building or specific goals like retirement or buying a house and StashAway Simple, a cash account that can earn a projected rate of 1.2% per annum and allows funds be withdrawn within one to three business days. Its management fees are between 0.2% to 0.8% a year.

Ferrario said that StashAway’s core market is people aged 30 to 45, who are earning enough money to save or invest, but also have obligations like saving for retirement or their childrens’ education. People under 30 account for a smaller portion of StashAway’s assets under management, but are still a significant part of its user base because the app doesn’t require minimum investments, making it accessible to people who recently graduated or are just starting their careers. While StashAway has built an reputation for attracting first-time investors, about 20% of its assets under management come from high-net-worth individuals.

“This is something we didn’t think would happen at the beginning, but then we realized that some of the problems we’re solving are also significant problems for high-net-worth individuals as well,” said Ferrario. “If you have less than $10 million to $15 million in wealth, the services you receive from private banks are not particularly sophisticated or personalized. So we offer a more sophisticated investment at a lower cost.”

At the end of last year, the company launched StashAway WorkPlace, a platform for employers to provide benefits like pensions and vesting schedules. StashAway WorkPlace grew out of the Financial Wellness Program, a set of seminars and workshops on financial planning and investing that has been used in Singapore by about 200 companies, including Salesforce, Twitter, Netflix and LinkedIn.

Since StashAway launched its app in 2017, more robo-advisors have emerged in the same markets it serves. For example, Syfe also caters to new investors. Other investment apps in Singapore include Endowus, Kristal.AI and AutoWealth.

 

One of the main ways StashAway differentiates is its proprietary asset allocation framework, which looks at how each asset class performs under specific economic conditions, measures uncertainty with leading indicators and patterns in economic data, and adjustments to expected returns based on an asset’s valuation relative to its economic fair value. The company says it has outperformed benchmarks since launching in 2017. At the end of March, its portfolios outperformed their same-risk benchmarks (proxied by MSCI World Equity Index and FTSE World Government Bond Index), with annualized returns ranging from 16.5% (for the highest-risk portfolio) to 4% (the lowest-risk portfolio).

Ferrario said the app also emphasizes customer service, with phone calls typically answered in less than eight seconds, and an in-app WhatsApp link that connects users to a human service representative instead of sending them through a chatbot first.

But StashAway’s main competitor is still traditional banks instead of other investment apps. “In the five countries we are in, there is approximately $5 trillion of personal financial wealth. In Singapore alone, it is around $1.1 trillion,” Ferrario said. A large portion of that cash, or about $400 billion, sits in savings accounts. “That’s money that’s not working for whoever owns it,” he added.

In a press statement, Anand said, “StashAway is growing rapidly as it fulfills an obvious gap in the digital wealth management space, especially in areas where its competitors may be lacking: an easy-to-use platform, robust client relationships and a very sophisticated investing framework. StashAway has built trust with its client base by navigating them through market volatility while providing strong returns.”

25 Apr 2021

Robo-advisor StashAway gets $25M Series D led by Sequoia Capital India

Investment app StashAway has raised a $25 million Series D led by Sequoia Capital India, with participation from returning investors Eight Roads Ventures and Square Peg. After regulatory approvals for the funding are completed, Sequoia Capital India managing director Abheek Anand will join StashAway’s board of directors as part of the round.

StashAway does not disclose how many investors use its robo-advisor app, but it surpassed $1 billion assets under management in January. It currently has operations in in five markets: Singapore, Malayasia, the United Arab Emirates and Hong Kong, and is preparing to launch in Thailand.

Its Series D brings StashAway’s total paid-up capital to about $61.4 million. The new funding will be used on expanding StashAway’s product and engineering teams to continue feature and product development. Founded in September 2016, the company will also offer to buy back up to $3 million in stock options from its employees. Co-founder and chief executive officer Michele Ferrario told TechCrunch that many of StashAway’s employees have been with the company since the start, so this gives its team members a chance to cash out stock options that have vested while creating a more compelling compensation package for recruiting talent.

StashAway’s products include services for retail investors that focus on wealth-building or specific goals like retirement or buying a house and StashAway Simple, a cash account that can earn a projected rate of 1.2% per annum and allows funds be withdrawn within one to three business days. Its management fees are between 0.2% to 0.8% a year.

Ferrario said that StashAway’s core market is people aged 30 to 45, who are earning enough money to save or invest, but also have obligations like saving for retirement or their childrens’ education. People under 30 account for a smaller portion of StashAway’s assets under management, but are still a significant part of its user base because the app doesn’t require minimum investments, making it accessible to people who recently graduated or are just starting their careers. While StashAway has built an reputation for attracting first-time investors, about 20% of its assets under management come from high-net-worth individuals.

“This is something we didn’t think would happen at the beginning, but then we realized that some of the problems we’re solving are also significant problems for high-net-worth individuals as well,” said Ferrario. “If you have less than $10 million to $15 million in wealth, the services you receive from private banks are not particularly sophisticated or personalized. So we offer a more sophisticated investment at a lower cost.”

At the end of last year, the company launched StashAway WorkPlace, a platform for employers to provide benefits like pensions and vesting schedules. StashAway WorkPlace grew out of the Financial Wellness Program, a set of seminars and workshops on financial planning and investing that has been used in Singapore by about 200 companies, including Salesforce, Twitter, Netflix and LinkedIn.

Since StashAway launched its app in 2017, more robo-advisors have emerged in the same markets it serves. For example, Syfe also caters to new investors. Other investment apps in Singapore include Endowus, Kristal.AI and AutoWealth.

 

One of the main ways StashAway differentiates is its proprietary asset allocation framework, which looks at how each asset class performs under specific economic conditions, measures uncertainty with leading indicators and patterns in economic data, and adjustments to expected returns based on an asset’s valuation relative to its economic fair value. The company says it has outperformed benchmarks since launching in 2017. At the end of March, its portfolios outperformed their same-risk benchmarks (proxied by MSCI World Equity Index and FTSE World Government Bond Index), with annualized returns ranging from 16.5% (for the highest-risk portfolio) to 4% (the lowest-risk portfolio).

Ferrario said the app also emphasizes customer service, with phone calls typically answered in less than eight seconds, and an in-app WhatsApp link that connects users to a human service representative instead of sending them through a chatbot first.

But StashAway’s main competitor is still traditional banks instead of other investment apps. “In the five countries we are in, there is approximately $5 trillion of personal financial wealth. In Singapore alone, it is around $1.1 trillion,” Ferrario said. A large portion of that cash, or about $400 billion, sits in savings accounts. “That’s money that’s not working for whoever owns it,” he added.

In a press statement, Anand said, “StashAway is growing rapidly as it fulfills an obvious gap in the digital wealth management space, especially in areas where its competitors may be lacking: an easy-to-use platform, robust client relationships and a very sophisticated investing framework. StashAway has built trust with its client base by navigating them through market volatility while providing strong returns.”

25 Apr 2021

The #8meals app from Habits of Waste helps people cut back on meaty meals to save the planet

Earth Day may have come and gone, but with apps like #8meals from the non-profit Habits of Waste, anyone can try and do their part to help reduce deforestation and rising greenhouse gas emissions by cutting meat out of their diets for just 8 meals a week.

The app, which was created by Habits of Waste founder Sheila Morovati along with the development shop Digital Pomegranate, gives users a way to schedule which meals of theirs will be meatless and offers recipe suggestions for what to eat to help them stick to their goals.

For Morovati, the #8meals app is only the latest in a series of initiatives that are meant to cut down on waste and consumption. Morovati’s journey to environmental advocacy began with a program to redistribute used crayons from restaurants to schools in the Southern California region.

That program, called Crayon Collection, has redirected over 20 million crayons from landfills, but Morovati’s non-profit push to reduce waste didn’t end there.

The Habits of Waste organization also launched the #cutoutcutlery campaign, which convinced Uber Eats, Postmates, Grubhub and DoorDash to change their default settings to make customers opt-in to receive plastic cutlery. It’s a way to reduce the nearly 40 billion plastic utensils that are thrown away each year, according to the Habits of Waste website.

“We decided to create a whole new arm which is cut out cutlery and eight meals. Trying to shift societal mindset is my goal,” said Morovati. 

Meanwhile, the number of meat replacements available to consumers continues to expand. Everyone from Post Cereal to Anheuser Busch is trying to make a play for replacements to proteins sourced from animals. That’s not to mention the billions raised by companies like Impossible Foods and Beyond Meat to sell replacements direct to consumers.

Going meatless, even for a few meals a week, can make a huge difference for planetary health (and human health). That’s because animal agriculture is responsible for more than 18% of greenhouse gas emissions worldwide — and it contributes to deforestation.

“I always think about this fake person that I’ve created in my mind and I call him Mr. Joe Barbecue,” Morovati said during a YouTube interview with self-described superfood guru, Darien Olien, earlier this year. “How can we get Mr. Joe Barbecue to be on board? Is it possible to tell him to go fully vegan? I don’t think so. Not yet. But I think if we introduce it with eight meals a week, maybe even Mr. Joe Barbecue will be willing to go there and understand it and try it and open up the door a crack to invite people in who may not be willing to do this.”

25 Apr 2021

The #8meals app from Habits of Waste helps people cut back on meaty meals to save the planet

Earth Day may have come and gone, but with apps like #8meals from the non-profit Habits of Waste, anyone can try and do their part to help reduce deforestation and rising greenhouse gas emissions by cutting meat out of their diets for just 8 meals a week.

The app, which was created by Habits of Waste founder Sheila Morovati along with the development shop Digital Pomegranate, gives users a way to schedule which meals of theirs will be meatless and offers recipe suggestions for what to eat to help them stick to their goals.

For Morovati, the #8meals app is only the latest in a series of initiatives that are meant to cut down on waste and consumption. Morovati’s journey to environmental advocacy began with a program to redistribute used crayons from restaurants to schools in the Southern California region.

That program, called Crayon Collection, has redirected over 20 million crayons from landfills, but Morovati’s non-profit push to reduce waste didn’t end there.

The Habits of Waste organization also launched the #cutoutcutlery campaign, which convinced Uber Eats, Postmates, Grubhub and DoorDash to change their default settings to make customers opt-in to receive plastic cutlery. It’s a way to reduce the nearly 40 billion plastic utensils that are thrown away each year, according to the Habits of Waste website.

“We decided to create a whole new arm which is cut out cutlery and eight meals. Trying to shift societal mindset is my goal,” said Morovati. 

Meanwhile, the number of meat replacements available to consumers continues to expand. Everyone from Post Cereal to Anheuser Busch is trying to make a play for replacements to proteins sourced from animals. That’s not to mention the billions raised by companies like Impossible Foods and Beyond Meat to sell replacements direct to consumers.

Going meatless, even for a few meals a week, can make a huge difference for planetary health (and human health). That’s because animal agriculture is responsible for more than 18% of greenhouse gas emissions worldwide — and it contributes to deforestation.

“I always think about this fake person that I’ve created in my mind and I call him Mr. Joe Barbecue,” Morovati said during a YouTube interview with self-described superfood guru, Darien Olien, earlier this year. “How can we get Mr. Joe Barbecue to be on board? Is it possible to tell him to go fully vegan? I don’t think so. Not yet. But I think if we introduce it with eight meals a week, maybe even Mr. Joe Barbecue will be willing to go there and understand it and try it and open up the door a crack to invite people in who may not be willing to do this.”

25 Apr 2021

Gardening startups like Neverland want to make every day Earth Day for the home gardener

Vera Kutsenko and Hayley Leibson have incredible tech pedigrees, but their latest venture involves as much digging in dirt as it does digging through lines of code.

The two women have founded Neverland, a startup for the home gardener that aims to be a marketplace connecting mom and pop gardening shops with the explosion of amateur horticulturalists that have sprung up since the pandemic began and everyone needed someone (or something) to talk to.

Gardening businesses were among the big winners during the pandemic, with sales at home and lawncare and gardening businesses shooting up 9% in 2020, according to data from the 200 year-old flower retailer, Breck’s.

It’s that surge in business, and the two co-founders own passion for home plants, that led to the launch of Neverland, the two founders said.

For both, it’s a change of pace. Kutsenko studied computer science at Cornell, worked at Facebook on the Internet.org initiative and led teams working on the mobile app at Uber. Meanwhile, Leibson founded LunchClub and served as that company’s chief operating officer.

Kutsenko and Leibson first connected through a women’s tech networking group in San Francisco and bonded over a shared love of plants. Leibson has roughly 24 plants in her apartment while Kutsenko had a plant nursery that she tended to herself.

“We really view the opportunity for Neverland to be the sustainability focused marketplace,” said Leibson. “The power of what we’re doing is we’re able to create a really consistent support network for the consumer.”

It’s a huge market. Kutsenko said that globally plant and gardening spending is roughly $52 billion and $28 billion of that market is indoor and outdoor gardening.

Using customer data, Neverland prompts users on how to optimize their gardens and horticulture activities based on their geography and what plants customers would want to grow. The company also looks to connect would-be green thumbed growers with companies in their region.

“The educational piece we’re pulling from is the USDA agricultural APIs,” said Kutsenko. “We take and translate the super science-y terms into language that [customers] would understand. We’re pulling this from existing government resources and aggregating it and making it accessible to folks.”

It was both the CVs of the founders and the overall size of the market that convinced investors to throw their financial weight behind the company — and it’s an impressive roster of consumer-focused and sustainability minded investors including: Obvious Ventures, Maveron, Kimbal Musk, and Y Combinator, which had Neverland in its most recent cohort. In all, Neverland managed to bring in $3 million for its marketplace and gardening community. 

And since everything starts with community, the company has managed to amass a healthy following on Instagram even before its scheduled launch this summer. Already 140,000 people follow Neverland’s posts. And the company has signed on 50 sellers in the Bay Area and beyond.

 

25 Apr 2021

Gardening startups like Neverland want to make every day Earth Day for the home gardener

Vera Kutsenko and Hayley Leibson have incredible tech pedigrees, but their latest venture involves as much digging in dirt as it does digging through lines of code.

The two women have founded Neverland, a startup for the home gardener that aims to be a marketplace connecting mom and pop gardening shops with the explosion of amateur horticulturalists that have sprung up since the pandemic began and everyone needed someone (or something) to talk to.

Gardening businesses were among the big winners during the pandemic, with sales at home and lawncare and gardening businesses shooting up 9% in 2020, according to data from the 200 year-old flower retailer, Breck’s.

It’s that surge in business, and the two co-founders own passion for home plants, that led to the launch of Neverland, the two founders said.

For both, it’s a change of pace. Kutsenko studied computer science at Cornell, worked at Facebook on the Internet.org initiative and led teams working on the mobile app at Uber. Meanwhile, Leibson founded LunchClub and served as that company’s chief operating officer.

Kutsenko and Leibson first connected through a women’s tech networking group in San Francisco and bonded over a shared love of plants. Leibson has roughly 24 plants in her apartment while Kutsenko had a plant nursery that she tended to herself.

“We really view the opportunity for Neverland to be the sustainability focused marketplace,” said Leibson. “The power of what we’re doing is we’re able to create a really consistent support network for the consumer.”

It’s a huge market. Kutsenko said that globally plant and gardening spending is roughly $52 billion and $28 billion of that market is indoor and outdoor gardening.

Using customer data, Neverland prompts users on how to optimize their gardens and horticulture activities based on their geography and what plants customers would want to grow. The company also looks to connect would-be green thumbed growers with companies in their region.

“The educational piece we’re pulling from is the USDA agricultural APIs,” said Kutsenko. “We take and translate the super science-y terms into language that [customers] would understand. We’re pulling this from existing government resources and aggregating it and making it accessible to folks.”

It was both the CVs of the founders and the overall size of the market that convinced investors to throw their financial weight behind the company — and it’s an impressive roster of consumer-focused and sustainability minded investors including: Obvious Ventures, Maveron, Kimbal Musk, and Y Combinator, which had Neverland in its most recent cohort. In all, Neverland managed to bring in $3 million for its marketplace and gardening community. 

And since everything starts with community, the company has managed to amass a healthy following on Instagram even before its scheduled launch this summer. Already 140,000 people follow Neverland’s posts. And the company has signed on 50 sellers in the Bay Area and beyond.

 

25 Apr 2021

Interview: Apple executives on the 2021 iPad Pro, stunting with the M1 and creating headroom

When the third minute of Apple’s first product event of 2021 ticked over and they had already made 3 announcements we knew it was going to be a packed one. In a tight single hour this week, Apple launched a ton of new product including AirTags, new Apple Card family sharing, a new Apple TV, a new set of colorful iMacs, and a purple iPhone 12 shade.

Of the new devices announced, though, Apple’s new 12.9” iPad Pro is the most interesting from a market positioning perspective. 

This week I got a chance to speak to Apple Senior Vice President of Worldwide Marketing Greg Joswiak and Senior Vice President of Hardware Engineering John Ternus about this latest version of the iPad Pro and its place in the working universe of computing professionals. 

In many ways, this new iPad Pro is the equivalent of a sprinter being lengths ahead going into the last lap and just turning on the afterburners to put a undebatable distance between themselves and the rest of the pack. Last year’s model is still one of the best computers you can buy, with a densely packed offering of powerful computing tools, battery performance and portability. And this year gets upgrades in the M1 processor, RAM, storage speed, Thunderbolt connection, 5G radio, new ultra wide front camera and its Liquid Retina XDR display. 

This is a major bump even while the 2020 iPad Pro still dominates the field. And at the center of that is the display.

Apple has essentially ported its enormously good $5,000 Pro Display XDR down to a 12.9” touch version, with some slight improvements. But the specs are flat out incredible. 1,000 nit brightness peaking at 1,600 nits in HDR with 2,500 full array local dimming zones — compared to the Pro Display XDR’s 576 in a much larger scale.

Given that this year’s first product launch from Apple was virtual, the media again got no immediate hands on with the new devices introduced, including iPad Pro. This means that I have not yet seen the XDR display in action. Unfortunately, these specs are so good that estimating them without having seen the screen yet is akin to trying to visualize “a trillion” in your head. It’s intellectually possible but not really practical. 

It’s brighter than any Mac or iOS device not the market and could be a big game changing device for professionals working in HDR video and photography. But even still, this is a major investment to ship a micro-LED display in the millions or tens of millions of units with more density and brightness than any other display on the market. 

I ask both of them why there’s a need to do this doubling down on what is already one of the best portable displays ever made — if not one of the best displays period. 

“We’ve always tried to have the best display,” says Ternus. “We’re going from the best display on any device like this and making it even better, because that’s what we do and that’s why we, we love coming to work every day is to take that next big step.

“[With the] Pro Display XDR if you remember one thing we talked about was being able to have this display and this capability in more places in the work stream. Because traditionally there was just this one super expensive reference monitor at the end of the line. This is like the next extreme of that now you don’t even have to be in the studio anymore you can take it with you on the go and you can have that capability so from a, from a creative pro standpoint we think this is going to be huge.”

In my use of the Pro Display and my conversations with professionals about it one of the the common themes that I’ve heard is the reduction in overall workload due to the multiple points in the flow where color and image can be managed accurately to spec now. The general system in place puts a reference monitor very late in the production stage which can often lead to expensive and time consuming re-rendering or new color passes. Adding the Liquid Retina XDR display into the mix at an extremely low price point means that a lot more plot points on the production line suddenly get a lot closer to the right curve. 

One of the stronger answers on the ‘why the aggressive spec bump’ question comes later in our discussion but is worth mentioning in this context. The point, Joswiak says, is to offer headroom. Headroom for users and headroom for developers. 

“One of the things that iPad Pro has done as John [Ternus] has talked about is push the envelope. And by pushing the envelope that has created this space for developers to come in and fill it. When we created the very first iPad Pro, there was no Photoshop,” Joswiak notes. “There was no creative apps that could immediately use it. But now there’s so many you can’t count. Because we created that capability, we created that performance — and, by the way sold a fairly massive number of them — which is a pretty good combination for developers to then come in and say, I can take advantage of that. There’s enough customers here and there’s enough performance. I know how to use that. And that’s the same thing we do with each generation. We create more headroom to performance that developers will figure out how to use.

“The customer is in a great spot because they know they’re buying something that’s got some headroom and developers love it.”

The iPad Pro is now powered by the M1 chip — a move away from the A-series naming. And that processor part is identical (given similar memory configurations) to the one found in the iMac announced this week and MacBooks launched earlier this year.

“It’s the same part, it’s M1,” says Ternus. “iPad Pro has always had the best Apple silicon we make.”

“How crazy is it that you can take a chip that’s in a desktop, and drop it into an iPad,” says Joswiak. “I mean it’s just incredible to have that kind of performance at such amazing power efficiency. And then have all the technologies that come with it. To have the neural engine and ISP and Thunderbolt and all these amazing things that come with it, it’s just miles beyond what anybody else is doing.”

As the M1 was rolling out and I began running my testing, the power per watt aspects really became the story. That really is the big differentiator for M1. For decades, laptop users have been accustomed to saving any heavy or intense workloads for the times when their machines were plugged in due to power consumption. M1 is in the process of resetting those expectations for desktop class processors. In fact, Apple is offering not only the most powerful CPUs but also the most power-efficient CPUs on the market. And it’s doing it in a $700 Mac Mini, a $1,700 iMac and a $1,100 iPad Pro at the same time. It’s a pretty ridiculous display of stunting, but it’s also the product of more than a decade of work building its own architecture and silicon.

“Your battery life is defined by the capacity of your battery and the efficiency of your system right? So we’re always pushing really really hard on the system efficiency and obviously with M1, the team’s done a tremendous job with that. But the display as well. We designed a new mini LED for this display, focusing on efficiency and on package size, obviously, to really to be able to make sure that it could fit into the iPad experience with the iPad experience’s good battery life. 

“We weren’t going to compromise on that,” says Ternus.

One of the marquee features of the new iPad Pro is its 12MP ultra-wide camera with Center Stage. An auto-centering and cropping video feature designed to make FaceTime calling more human-centric, literally. It finds humans in the frame and centers their faces, keeping them in the frame even if they move, standing and stretching or leaning to the side. It also includes additional people in the frame automatically if they enter the range of the new ultra-wide 12MP front-facing camera. And yes, it also works with other apps like Zoom and Webex and there will be an API for it.

I’ve gotten to see it in action a bit more and I can say with surety that this will become an industry standard implementation of this kind of subject focusing. The crop mechanic is handled with taste, taking on the characteristics of a smooth zoom pulled by a steady hand rather than an abrupt cut to a smaller, closer framing. It really is like watching a TV show directed by an invisible machine learning engine. 

“This is one of the examples of some of our favorite stuff to do because of the way it marries the hardware and software right,” Ternus says. “So, sure it’s the camera but it’s also the SOC and and the algorithms associated with detecting the person and panning and zooming. There’s the kind of the taste aspect, right? Which is; how do we make something that feels good it doesn’t move too fast and doesn’t move too slow. That’s a lot of talented, creative people coming together and trying to find the thing that makes it Apple like.”

It also goes a long way to making the awkward horizontal camera placement when using the iPad Pro with Magic Keyboard. This has been a big drawback for using the iPad Pro as a portable video conferencing tool, something we’ve all been doing a lot of lately. I ask Ternus whether Center Stage was designed to mitigate this placement.

“Well, you can use iPad in any orientation right? So you’re going to have different experiences based on how you’re using it. But what’s amazing about this is that we can keep correcting the frame. What’s been really cool is that we’ve all been sitting around in these meetings all day long on video conferencing and it’s just nice to get up. This experience of just being able to stand up and kind of stretch and move around the room without walking away from the camera has been just absolutely game changing, it’s really cool.”

It’s worth noting that several other video sharing devices like the Portal and some video software like Teams already offer cropping-type follow features, but the user experience is everything when you’re shipping software like this to millions of people at once. It will be interesting to see how Center Stage stacks up agains the competition when we see it live. 

With the ongoing chatter about how the iPad Pro and Mac are converging from a feature-set perspective, I ask how they would you characterize an iPad Pro vs. a MacBook buyer? Joswiak is quick to respond to this one. 

“This is my favorite question because you know, you have one camp of people who believe that the iPad and the Mac are at war with one another right it’s one or the other to the death. And then you have others who are like, no, they’re bringing them together — they’re forcing them into one single platform and there’s a grand conspiracy here,” he says.

“They are at opposite ends of a thought spectrum and the reality is that neither is correct. We pride ourselves in the fact that we work really, really, really hard to have the best products in the respective categories. The Mac is the best personal computer, it just is. Customer satisfaction would indicate that is the case, by a longshot.”

Joswiak points out that the whole PC category is growing, which he says is nice to see. But he points out that Macs are way outgrowing PCs and doing ‘quite well’. He also notes that the iPad business is still outgrowing the tablets category (while still refusing to label the iPad a tablet). 

“And it’s also the case that it’s not an ‘either or’. The majority of our Mac customers have an iPad. That’s an awesome thing. They don’t have it because they’re replacing their Mac, it’s because they use the right tool at the right time.

What’s very cool about what [Ternus] and his team have done with iPad Pro is that they’ve created something where that’s still the case for creative professionals too — the hardest to please audience. They’ve given them a tool where they can be equally at home using the Mac for their professional making money with it kind of work, and now they can pick up an iPad Pro — and they have been for multiple generations now and do things that, again, are part of how they make money, part of their creative workflow flow,” says Joswiak. “And that test is exciting. it isn’t one or the other, both of them have a role for these people.”

Since converting over to an iPad Pro as my only portable computer, I’ve been thinking a lot about the multimodal aspects of professional work. And, clearly, Apple has as well given its launch of a Pro Workflows team back in 2018. Workflows have changed massively over the last decade, and obviously the iPhone and an iPad, with their popularization of the direct manipulation paradigm, have had everything to do with that. In the current world we’re in, we’re way past ‘what is this new thing’, and we’re even way past ‘oh cool, this feels normal’ and we’re well into ‘this feels vital, it feels necessary.’ 

Contrary to some people’s beliefs, we’re never thinking about what we should not do on an iPad because we don’t want to encroach on Mac or vice versa,” says Ternus. “Our focus is, what is the best way? What is the best iPad we can make what are the best Macs we can make. Some people are going to work across both of them, some people will kind of lean towards one because it better suits their needs and that’s, that’s all good.

If you follow along, you’ll know that Apple studiously refuses to enter into the iPad vs. Mac debate — and in fact likes to place the iPad in a special place in the market that exists unchallenged. Joswiak often says that he doesn’t even like to say the word tablet.

“There’s iPads and tablets, and tablets aren’t very good. iPads are great,” Joswiak says. “We’re always pushing the boundaries with iPad Pro, and that’s what you want leaders to do. Leaders are the ones that push the boundaries leaders are the ones that take this further than has ever been taken before and the XDR display is a great example of that. Who else would you expect to do that other than us. And then once you see it, and once you use it, you won’t wonder, you’ll be glad we did.”

Image Credits: Apple

25 Apr 2021

Gillmor Gang: FreeCoin

The current rave about newsletters and so-called or social audio is just the latest version of the story of podcasting. Take the idea that podcasting is experiencing a new wave of popularity and scaffolding. Are you sure? Apple is bent on turning the space into a subscription model, and we’re all going to twist again like we did last summer. Somehow I doubt it. The basic attraction for me is not paying for podcasts. Subscription startups may be an important step forward, but the heart of the matter is talent formation.

Back when they first started, the real charge was the ability to own the whole stack: writer, producer, editor, star, and marketer. Making money for this may have been a future goal, but right now the real power was in figuring out what might work without the intrusion of what people other than yourself thought about the product. Only if something made itself apparent was it necessary to address the needs and wants of the audience.

Luckily, that ruled out about ninety percent of the resulting wave of stuff. There were Ted talks, or what became Ted talks, well thought out verbal slide decks in an 8 minute payload that grabbed, shook, and exacted payment in credibility and validation of the expertise of the artist. Always lurking was the question of what day job the author was moonlighting from. Many self help business books emerged from this.

Then there were the professionals, the public radio folks who knew how to do this in their sleep but were looking for a role not dependent on grant writing or public liberal funding. Reporters who knew how to squeeze out a story, producers who mined their rolodex to fashion a conversation, screenwriters looking for momentum to bank a shot off studio executives to get a pilot or series starter commitment. Eventually this added up to enough successful podcasts to attract sponsorship support from audiobooks and publishing services. Scripted shows became farm clubs for independent talent aiming for the Big Show. This endured for 20 years.

Meanwhile, the Beatles transformed the music business from a vaudeville-like zero-sum game to a Renaissance of control over writing, performing, promoting, and touring. Aspiration was the fuel of the business model, obviating the need for incremental success in favor of explosive momentum and dominance of the media. Hair, boots, sex, striking fear in the hearts of parents and then politicians everywhere. Sgt. Pepper and Kubrick created a version of the future that made everything else pale by comparison. That it all crashed and burned was just one of the risks of what became the startup culture in Silicon Valley and Route 128.

In today’s world of NFTs and Decacorns, free still has a reason for believing. The old guard of the blogging world have reinvented themselves as Lone Rangers in the creator economy. Slap a badge on that podcast and hitch a ride on the promise of endless subscription growth, minus 10% per newsletter sub or 30% for the first year in the AppStore. It’s not the long tail, so what is it? To be sure, the world will endorse the talented solitary surfers, armed with MG Sieglerian talent for the suite spot of the tech zeitgeist, the revolutionary zeal of the breakthrough synthesists of the political, lyrical, and comic survivalists.

How will the media compensate for the loss of their gatekeeper status? For starters, the more the stampede accelerates, the bundlers will storm the economics with constructs that look very much like the magazines and social destinations they replace. As crypto enters the bloodstream, streaming will generate a new measure of success and equity for the artists. Free will still be the driver of the form, but transitional models like tip jars will migrate to social capital to be banked by investors betting on the future success of the talent.

Even this early, some things have to change. The no recording conceit is an artifact of the launch stage, soon to be jettisoned when the effort reaches escape velocity. Clubhouse gains much of its critical mass from who rather than how many are swarming; interesting combinations of speakers and listeners weigh more tellingly than the raw numbers of name guests and moderators. Live is important, but committing to the voice of the artist is a calculation of time, window of opportunity, relevance to the emotion and tenor of the times. And the competitive landscape for that attention spans so many of the medias being replaced or transformed by the application of free.

None of this means the newsletter and conversation startups won’t succeed. Subscribing gives us something to consume to justify the tithe, and most people who drop streaming subs replace them with another service. As these services proliferate, competition drives innovation and expansion into events and paradigm shifts like Netflix and SPACs. Witness TechCrunch, built on just the dynamics Substack and Revue-Twitter now make accessible to a new wave of Arringtons.

from the Gillmor Gang Newsletter

__________________

The Gillmor Gang — Frank Radice, Michael Markman, Keith Teare, Denis Pombriant, Brent Leary and Steve Gillmor. Recorded live Friday, April 16, 2021.

Produced and directed by Tina Chase Gillmor @tinagillmor

@fradice, @mickeleh, @denispombriant, @kteare, @brentleary, @stevegillmor, @gillmorgang

Subscribe to the new Gillmor Gang Newsletter and join the backchannel here on Telegram.

The Gillmor Gang on Facebook … and here’s our sister show G3 on Facebook.

24 Apr 2021

Building a creator-focused OS

Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s broadly based on the daily column that appears on Extra Crunch, but free, and made for your weekend reading. 

A week ago TechCrunch covered Pico’s $6.5 million funding round and described it as “a New York startup that helps online creators and media companies make money and manage their customer data.” The Exchange has also covered Pico before, most recently during a mid-2020 dive into the world of indie pubs and subscription media.

While our own Anthony Ha did an inimitable job covering the Pico round, I got on a Zoom call with the company, as well, as their new capital came with a relaunch of sorts that I wanted to better understand.

The Pico team walked me through what’s changed at their business by describing the historical progress of creative digital tooling. They said earlier eras in the space focused on content hosting and distribution. In the startup’s view, a new generation of creative-focused tooling will bring the market to an era in which content management systems, or CMSs — say, Substack or WordPress — will not own the center of tooling. Instead, monetization will.

That’s Pico’s bet, and so it’s building what it considers to be an operating system for the creator market. My gut read is that a creative digital world that centers around monetization sounds like one that is more lucrative than what preceding eras brought us.

Pico’s view is that regardless of where someone first builds their audience, they eventually go multi-SKU — or multi-platform, perhaps — so keeping a single, centralized register of customer data may prove critical.

The startup’s revamped service is a bit of a monetization tool, as before, along with a creator-focused CRM that sits atop your CMS or other digital output on any particular platform. So far customer growth at the company looks good, growing by about 5x in the last year. Let’s see how far Pico can ride its vision, and if it can help build out a middle class in the creator economy.

The grocery revolution will be IRL

Somewhat lost in our circles amid the hype regarding Instacart’s epic COVID period is the fact that most folks still go to stores to buy their fruit and veg, as our friends in the UK might say.

Grocers did not forget the fact. But their historically thin margins and rising competition for customer ownership in the Instacart era hasn’t left them too secure. How can they pursue a more digitally enabled strategy without outsourcing their customer relationship to a third party?

Swiftly might be part of the answer. The startup is building technology that may help grocery chains of all sizes go digital, take advantage of modern mobile technology, and generate more incomes via ads, while offering consumers more shopping options. Neat, yeah?

The startup has raised a little over $15 million to date, per Crunchbase data, but came back into our minds thanks to the launch of a deal with the Dollar Tree company, a consumer retailer that has around one zillion stores in America.

I’ve been aware of Swiftly for ages, having met its co-founder Henry Kim back when he was building Sneakpeeq, which later became Symphony Commerce. The latter company was eventually bought by Quantum Retail. But during my chats with Kim over the years in and around San Francisco, he consistently brought up the grocery market, a space he’d had experience in before building Symphony Commerce.

After hearing Kim hype up the possibilities for grocery and digital for a half decade or so, to see the company that came out of his hopes and planning land a major partner is fun.

Swiftly provides two main products, a retail system and a media service. The retail side of its business provides checkout services, loyalty programs, personalized offers and the like for mobile shoppers. And the media side allows IRL grocers to snag a bit of the consumer packaged goods (CPG) ad spend that they often miss out on, while looping in analytics to provide better attribution to the impact of ads sold.

I expect that Swiftly will raise more capital in the next few quarters now that it has a big, public deal out. More when we have it.

UiPath, SPACs, and a neat venture capital round

Over the past two weeks The Exchange has written quite a lot about the UiPath IPO. Probably too much. But to catch you up just in case, the company’s first IPO pricing range looked like a warning for late-stage investors as the resulting valuations were a bit lower than anticipated. Next the company raised that range, ameliorating if not eliminating our earlier concern. Then the company priced above its raised range, though still at a discount to its final private round. Then it gained ground after starting to trade, and its CFO was like, we did good.

To dig even more into the company’s private-public valuation saga, The Exchange asked B2B investor Dharmesh Thakker, a general partner at Battery Ventures, about his take on the company’s final private round in the context of it landing a bit higher than where the company eventually priced its IPO. Here’s what he had to say:

[T]here was smart money involved in that round. These are people who understand that material value creation happens 3-5 years post IPO, as we have seen with Twilio, Atlassian, MongoDB, Okta, and Crowdstrike who have increased value 5-10x post IPO.

Right now, UIPath has only 1% penetration at $608M revenue in a $60B automation market, and the urgency around intelligent process automation for repetitive tasks is only increasing post-COVID. Companies need help managing their costs with automation. So, as the company penetrates its target market and grows over time, UIPath will drive ongoing value, which pre-IPO and IPO stage investors realize. They will be patient.”

He’s bullish, in other words. A more acerbic take on the UiPath IPO came in from PitchBook analyst Brendan Burke. Here’s what he had to say about the company and its market:

RPA has scaled rapidly due to the demand for automation yet remains a limited solution that may lack durable value. Due to its reliance on custom scripts, we view RPA as a bridge technology to cloud-native AI automation that faces competitive risk from AI-native challengers. The future of enterprise automation is for front-line users to deploy cloud-native machine learning models that can adapt to dynamic data streams and make accurate decisions. UiPath’s implementations are not cloud-native and require third party integrations with around 75 AI model vendors for intelligent decision-making. Additionally, the company lists the ability to recruit AI engineers as a risk factor for the business. UiPath’s ability to expand across the AI value chain will be critical for its long-term prospects.

I include that remark as it can be, at times, hard to get actual negative commentary out of the broader analyst world, as people are so terrified of being rude.

Scooting along, there’s a new SPAC deal out this week that I wanted to flag for you: SmartRent is merging with Fifth Wall Acquisition Corp. I. SmartRent raised more than $100 million while private, according to Crunchbase data, from RET Ventures, Spark Capital and Bain Capital Ventures, among others.

So this particular SPAC deal, which puts a $2.2 billion equity valuation on SmartRent, is a material venture-backed exit. You can check its investor deck here. We care about the company as it appears to work in a similar space to Latch, which is also going out via a SPAC. Dueling OS companies for rental units? This should be fun. (More on Latch’s SPAC deal here.)

Finally for our main work today, HYPR raised $35 million this week. Among all the venture capital rounds that I wish I could have written about this week but didn’t get to, HYPR is up there because it promises a password-free future. And having just raised a Series C, it may have a shot at pulling it off. Please god, let it happen.

Various and sundry

I got to cover a few rounds raised by recent Y Combinator graduates this week, including Queenly and Albedo’s recent funding events. Check ‘em out.

Oh, and Afterpay’s recent earnings show that the buy-now-pay-later market is still growing like all hell,

Alex

24 Apr 2021

What the MasterClass effect means for edtech

MasterClass, which sells a subscription to celebrity-taught classes, sits on the cusp of entertainment and education. It offers virtual, yet aspirational learning: an online tennis class with Serena Williams, a cooking session with Gordon Ramsay. While there’s the off chance that an instructor might actually talk to you — it has happened before — the platform mostly just offers paywalled documentary-style content.

The vision has received attention. MasterClass is raising funding that would value it at $2.5 billion, as scooped by Axios and confirmed independently by a source to TechCrunch. But while MasterClass has found a sweet spot, can the success be replicated?

Investors certainly think so. Outlier, founded by MasterClass’ co-founder, closed a $30 million Series C this week, for affordable, digital college courses. The similarities between Outlier and its founder’s alma mater aren’t subtle: It’s literally trying to apply MasterClass’ high-quality videography to college classes. This comes a week after I wrote about a “MasterClass for Chess lovers” platform launched by former Chess World Champion Garry Kasparov.

Two back-to-back MasterClass copycats raising millions in venture capital makes me think about if the model can truly be verticalized and focused down into specific niches. After 2020 and the rise of Zoom University, we know edtech needs to be more engaging, but we don’t know the exact way to get there. Is it by creating micro-learning communities around shared loves? Is it about gamification? Aspirational learning has different incentives than for-credit learning. In order to be successful, Outlier needs to prove to universities it can use MasterClass magic for true outcomes that rival in-person lectures. It’s a harder, and more ambtious promise.

My riff aside, I turned to two edtech founders to understand how they see the MasterClass effect panning out, and to cross-check my gut reaction.

Taylor Nieman, the founder of language learning startup Toucan:

Although I do love how these models try to lean into this theme of “invisible learning” like we leverage with Toucan, it faces the same issues as so many other consumer products that try to steal time out of people’s very busy days. Constantly competing for time leads to terrible engagement metrics and very high churn. That leads me to question what true learning outcomes could occur from little to no usage of the product itself.

Amanda DoAmaral, the founder of Fiveable, a learning platform for high school students:

Masterclass is important for showing us why educational content should be treated more like entertainment. All of our bars for content quality is much higher now than it ever was before and I’m excited to see how that affects learning across the board.

For students, it’s about creating environments that support them holistically and giving them space to collaborate openly. It feels so obvious that these spaces should exist for young people, but we’ve lost sight of what students actually need. At my school, we built policies that assumed the worst in students. I want to flip that. Assume the best, be proactive to keep them safe, and create ways to react when we need to.

Anyways, that’s just some nuance to chew on during this fine day. In the rest of this newsletter, we will focus a lot on tactical advice for founders, from the money they raise to the peacock dance they might want to do one day. Make sure to follow me on Twitter @nmasc_ so we can talk during the week, too!

The peacock dance

You know when male peacocks fan their feathers to court a lover? That, but for startups trying to get acquired. As one of our many rabbit holes on Equity this week, we talk about Discord walking away from a Microsoft deal, and if that deal ever existed in the first place or if it was just a way to drum up investor excitement in the audio gaming platform.

Here’s what to know: Discord is reportedly pursuing an IPO after walking away from talks with multiple companies that were looking to acquire the audio gaming giant.

Discord aside, the consolidation environment continues to be hot for some sectors.

Four business people used ropes to tighten their money bags, economic austerity, reduced income, economic crisis

Image Credits: VectorInspiration / Getty Images

Even venture capital knows that the future isn’t simply venture capital

Clearbanc, a Toronto-based fintech startup that gives non-dilutive financing to businesses, has rebranded alongside a $100 million financing that valued it at $2 billion. Now rebranded as Clearco, the startup wants to be more than just a capital provider, but a services provider, too.

Here’s what to know: The startup has been on a tear of product development for the past year, launching services such as valuation calculators or runway tools. It’s a step away from what Clearbanc originally flexed: the 20-minute term sheet and rapid-fire investment. I talk about some of the levers at play in my piece:

Many of Clearco’s newest products are still in their infancy, but the potential success of the startup could nearly be tied to the general growth of startups looking for alternatives to venture capital when financing their startups. Similar to how AngelList’s growth is neatly tied to the growth of emerging fund managers, Clearco’s growth is cleanly related to the growth of founders who see financing as beyond a seed check from Y Combinator.

abstract human brain made out of dollar bills isolated on white background

Abstract human brain made out of dollar bills isolated on white background. Image Credits: Iaremenko / Getty Images

Don’t market your opportunity away

Keeping on the theme of tactical advice for founders, let’s move onto talking about marketing. Tim Parkin, president of Parkin Consulting, explained how startup founders can use marketing as a tool to stand out in the noisy environment. Differentiation has never been harder, but also more imperative.

Here’s what to know: Parkin outlines four ways that martech will shift in 2021, strapped with anecdotes and a nod to the importance of investing in influencers.

Red ball on curved light blue paper, blue background. Image Credits: PM Images / Getty Images

Around TechCrunch

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Across the site

Seen on TechCrunch

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Attack of the robotic SPACs

Tiger Global backs Indian crypto startup at over $500M valuation

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Seen on Extra Crunch

Dear Sophie: How can I get my startup off the ground and visit the US?

How to pivot your startup, save cash and maintain trust with investors and customers

How startups can ensure CCPA and GDPR compliance in 2021

As UiPath closes above its final private valuation, CFO Ashim Gupta discusses his company’s path to market

European VC soars in Q1

zoom glitch

Image Credits: TechCrunch

Thanks for reading along today and everyday. Sending love to my readers in India and everyone around the world that is facing yet another deadly surge of this horrible disease. I’m rooting for you.

N