Category: UNCATEGORIZED

12 Nov 2019

Snapchat Spectacles 3 review: Pretty, pricey

No one’s going to pay $380 for decent point-of-view video glasses and some trippy filters. But that’s kind of the point of Snapchat Spectacles 3. They’re merely a stepping stone towards true augmented reality eyewear — a public hardware beta for the Snap Lab R&D team that Apple and Facebook aren’t getting as they tinker in their bunkers.

Still, I hoped for something that could at least unlock the talents of forward-thinking video creators. Yet the unpredictable and uncontrollable AR effects sadly fail to make use of Spectacles‘ fashionable form factor in premium steel. The clunky software requires clips be uploaded for processing and then re-downloaded before you can apply the 10 starter effects like a rainbow landscape filter or a shimmering fantasy falcon. This all makes producing AR content a chore instead of a joy for something only briefly novel.

Spectacles 3 go on sale today for $380 in black ‘Carbon’ or rose gold-ish ‘Mineral’ color schemes on Spectacles.com, Neiman Marcus, and Ron Robinson in the UK, shipping in a week. Announced in August, they’re sunglasses with two stereoscopic lenses capable of capturing depth to produce “3D” photos, and videos you can add AR effects to on your phone. You also get a very nice folds-flat leather USB-C charging case that powers up the glasses four times, and a Google Cardboard-style VR viewer.

“Spectacles 3 is a limited production run. We’re not looking for massive sales here. We’re targeting people who are excited about these effects  — creative storytellers” says Matt Hanover of the Snap Lab team.

Gen 1 featured a “toy-like design to get people used to wearing tech on their face”, while Gen 2 and 2.1 had a more subdued look abandoning the coral color schemes to push mainstream adoption. What Gen 3 can’t do is force a $40 million write-off due to poor sales, as V1 did after only shipping 220,000 with hundreds of thousands more gathering dust somewhere. Snap is already losing $227 million per quarter as it scrambles to break even.

So it seems with Spectacles 3 that Snap is gathering data and biding its time, trying to avoid burning too much cash until it can build a version that overlays effects atop a user’s view through the glasses. “We’re still able to get feedback from the customer and inform the future of Spectacles. That’s really the goal for us” Hanover confirms.

His CEO Evan Spiegel agrees, telling me on stage at TechCrunch Disrupt that it would be 10 years until we see augmented reality glasses worthy of mainstream consumer adoption. That’s a long time for an unprofitable company to spend competing to invest in R&D versus cash-rich companies like Facebook and Apple.

tl;dr

Spectacles could be worth the steep $380 if you’re a videographer for a living, perhaps making futuristic social media clips like Karen X Cheng, a creator Snap hired to demonstrate the device’s potential. They’re cool enough looking that you could wear them around Cannes or Coachella without people getting weirded out like they did with Google Glass. And as Snap’s Lens Studio lets anyone build 3D effects for Spectacles 3, perhaps we’ll see some filters and imaginary characters that are more than just a momentary gimmick.

But for those simply seeking first-person camera glasses, I’d still recommend the Spectacles 2 at $150 to $200 depending on style. The 3D features don’t carry the weight of paying double the price for Spec 3s. And at least the 2nd-gen Specs are waterproof, which make them great for ocean play with fun underwater shooting when you don’t want to risk losing or fizzling your phone.

“We’re testing the price point and the premium aesthetic to see if it lands with this demographic” Hanover says. But Snap’s Director Of Communications Liz Markman notes that “there isn’t this perfect one-to-one overlap with the core Snap users.”

The result is that Spectacles 3 are really more for Snap’s benefit than yours.

Slick Eyewear, Now Where’s The AR?

The Spectacles 3 software is disappointing, but you’ll be delighted when you open the box. Slick black packaging reveal sturdily built metal sunglasses with a luxury matte finish. As they magnetically dislodge from their charging case, you definitely get they sense you’re trying on something futuristic.

The style concurs, with a flat black bar at the top connecting the round lenses with a camera on both corners. Unlike the old Specs that sat right on your nose, feeling heavy at times, Spectacles 3 offers adjustable acetate non-slip nose tips to keep the weight off. All the tech is built discreetly into the hinges and temples without appearing too chunky.

Tap the button either arm, and LED light swooshes in a circle to let people know you’re recording a video for 10 seconds, with multiple presses growing that to up to 60. Tap and hold to shoot a photo, and the light blinks. There’s no obnoxious yellow rubber ring to shout “these are cameras”, and the defused LEDs are more subtle than Gen 2’s dots while remaining an obvious enough signal to passersby so they’re not creepy.

One charge powers up to 70 captures and transfers to your phone over a combined Bluetooth built-in Wifi connection. The 4 gigabyte storage holds up to 100 videos or 1200 photos, and Spectacles 3 even have GPS and GLOSNASS on-board. A 4-mic array picks up audio from others and your own voice, though they’re susceptible to windshear if you’re biking or running.

The magnetically-sealing folding leather USB-C charging case is my favorite part. I wish I could get an even flatter one without a battery in it for my other sunglasses. It’s a huge improvement on the unpocketable bulky triangular case of the previous versions.

A Toy Not Fun Enough For The Price

So far so good, right? But then it comes time to actually see and augment what you shot.

Pairing and syncing is much easier than Gen 1. The glasses forge a Bluetooth connection, then spawn a WiFi network for getting media to your phone faster.

If you just want to share to Snapchat, you’re in luck. Spectacles content posts to Stories or messages in its cool circular format that lets viewers tilt their phones around while always staying full-screen to reveal the edges of your shots. Otherwise, you still have to go through the chore of exporting from Snapchat to your camera roll. Spectacles can at least now export in a variety of croppings for better sharing on Instagram and elsewhere.

What’s new are the 3D photos and videos. They utilize the space between the stereoscopic cameras in the corners of Spectacles employ parallax to sense the depth of a scene. After tapping the 3D button on a photo, you can wiggle the perspective of the image around to almost see around the edges of what you’re looking at. Spectacles will automatically pan back and forth for you, and export 3D photos as short Boomerang-esque six-second videos.

Unfortunately, I found that I didn’t get much sense of depth from most of the 3D photos I shot or saw. It takes a very particular kind of three-dimensional object from the right angle in the right light to much sense of movement from the wiggle. Snapchat’s algorithms also had a bad habit of mistakenly assigning bits of the foreground and background to each other, breaking the illusion. Occasionally you’ll have someone’s ear or their hair left behind and disembodied by the 3D effect.

Don’t expect these to flood social media or convince prospective Spectacles buyers. The 3D selfies you can shoot on Snapchat for free look better anyways.

The biggest problem comes with the delay when playing with 3D videos. Snapchat has to do the depth processing on its servers, so you have to wait for your video to upload, get scanned, and be re-downloaded before you can apply the 3D AR filters. On WiFi that takes about 35 seconds per 10 second video, which is quite a bore. It takes forever over a mobile connection. That means you often won’t be able to apply the filters and see how they look until you’re home and unable to reshoot anything.

The filter set is also limited and haphazard. You can add a 3D bird or balloons around you, wander through golden snow or neon arcs, overlay flower projections or rainbow waves, or sprinkle on sparkles and light-bending blobs. While the bird is cute, and the rainbows and flowers are remarkably psychedelic, none of them are more than briefly entertaining.

The 3D objects often glitch through real pieces of scenery, and you can’t control them at all. No summoning the bird mid-video. My favorite trick, learned from Karen X Cheng, was to export unedited and filtered versions of a video and splice them together on my computer as scene in my demo video above. You can’t actually do that from within Snapchat.

Snap will have to build a lot cooler filters with interactivity if they’re going to compel creators to fork over $380 for Spectacles 3. It could hope to rely on its Lens Studio community platform, but so few developers or users will have the glasses that most will stick to making and using filters for phones.

Spectacles 3 are too expensive to be a toy, but don’t excel at being much more. Videography influencers might enjoy having a pair in their tool bag. But it’s hard to imagine anyone not sharing content professionally paying for the gadget.

Iteration vs Ideation

“We’re now pushing to elevate the technology and the design to master depth technically” Hanover tells me. “Holing ourselves up within an R&D center for years and years? That’s not our approach. It’s important to meet the customer where they are today and continue to iterate and get that feedback.”

But this iteration doesn’t feel like Snap meeting the customer where they are. That raises the question of whether Snapchat is really getting enough data out of the whole endeavor to justify publicly releasing Spectacles at all. The company will have to hope that testing short-term is worth thinking short-term, when it’s trying to win the long-term war in augmented reality eyewear.

12 Nov 2019

Snapchat Spectacles 3 review: Pretty, pricey

No one’s going to pay $380 for decent point-of-view video glasses and some trippy filters. But that’s kind of the point of Snapchat Spectacles 3. They’re merely a stepping stone towards true augmented reality eyewear — a public hardware beta for the Snap Lab R&D team that Apple and Facebook aren’t getting as they tinker in their bunkers.

Still, I hoped for something that could at least unlock the talents of forward-thinking video creators. Yet the unpredictable and uncontrollable AR effects sadly fail to make use of Spectacles‘ fashionable form factor in premium steel. The clunky software requires clips be uploaded for processing and then re-downloaded before you can apply the 10 starter effects like a rainbow landscape filter or a shimmering fantasy falcon. This all makes producing AR content a chore instead of a joy for something only briefly novel.

Spectacles 3 go on sale today for $380 in black ‘Carbon’ or rose gold-ish ‘Mineral’ color schemes on Spectacles.com, Neiman Marcus, and Ron Robinson in the UK, shipping in a week. Announced in August, they’re sunglasses with two stereoscopic lenses capable of capturing depth to produce “3D” photos, and videos you can add AR effects to on your phone. You also get a very nice folds-flat leather USB-C charging case that powers up the glasses four times, and a Google Cardboard-style VR viewer.

“Spectacles 3 is a limited production run. We’re not looking for massive sales here. We’re targeting people who are excited about these effects  — creative storytellers” says Matt Hanover of the Snap Lab team.

Gen 1 featured a “toy-like design to get people used to wearing tech on their face”, while Gen 2 and 2.1 had a more subdued look abandoning the coral color schemes to push mainstream adoption. What Gen 3 can’t do is force a $40 million write-off due to poor sales, as V1 did after only shipping 220,000 with hundreds of thousands more gathering dust somewhere. Snap is already losing $227 million per quarter as it scrambles to break even.

So it seems with Spectacles 3 that Snap is gathering data and biding its time, trying to avoid burning too much cash until it can build a version that overlays effects atop a user’s view through the glasses. “We’re still able to get feedback from the customer and inform the future of Spectacles. That’s really the goal for us” Hanover confirms.

His CEO Evan Spiegel agrees, telling me on stage at TechCrunch Disrupt that it would be 10 years until we see augmented reality glasses worthy of mainstream consumer adoption. That’s a long time for an unprofitable company to spend competing to invest in R&D versus cash-rich companies like Facebook and Apple.

tl;dr

Spectacles could be worth the steep $380 if you’re a videographer for a living, perhaps making futuristic social media clips like Karen X Cheng, a creator Snap hired to demonstrate the device’s potential. They’re cool enough looking that you could wear them around Cannes or Coachella without people getting weirded out like they did with Google Glass. And as Snap’s Lens Studio lets anyone build 3D effects for Spectacles 3, perhaps we’ll see some filters and imaginary characters that are more than just a momentary gimmick.

But for those simply seeking first-person camera glasses, I’d still recommend the Spectacles 2 at $150 to $200 depending on style. The 3D features don’t carry the weight of paying double the price for Spec 3s. And at least the 2nd-gen Specs are waterproof, which make them great for ocean play with fun underwater shooting when you don’t want to risk losing or fizzling your phone.

“We’re testing the price point and the premium aesthetic to see if it lands with this demographic” Hanover says. But Snap’s Director Of Communications Liz Markman notes that “there isn’t this perfect one-to-one overlap with the core Snap users.”

The result is that Spectacles 3 are really more for Snap’s benefit than yours.

Slick Eyewear, Now Where’s The AR?

The Spectacles 3 software is disappointing, but you’ll be delighted when you open the box. Slick black packaging reveal sturdily built metal sunglasses with a luxury matte finish. As they magnetically dislodge from their charging case, you definitely get they sense you’re trying on something futuristic.

The style concurs, with a flat black bar at the top connecting the round lenses with a camera on both corners. Unlike the old Specs that sat right on your nose, feeling heavy at times, Spectacles 3 offers adjustable acetate non-slip nose tips to keep the weight off. All the tech is built discreetly into the hinges and temples without appearing too chunky.

Tap the button either arm, and LED light swooshes in a circle to let people know you’re recording a video for 10 seconds, with multiple presses growing that to up to 60. Tap and hold to shoot a photo, and the light blinks. There’s no obnoxious yellow rubber ring to shout “these are cameras”, and the defused LEDs are more subtle than Gen 2’s dots while remaining an obvious enough signal to passersby so they’re not creepy.

One charge powers up to 70 captures and transfers to your phone over a combined Bluetooth built-in Wifi connection. The 4 gigabyte storage holds up to 100 videos or 1200 photos, and Spectacles 3 even have GPS and GLOSNASS on-board. A 4-mic array picks up audio from others and your own voice, though they’re susceptible to windshear if you’re biking or running.

The magnetically-sealing folding leather USB-C charging case is my favorite part. I wish I could get an even flatter one without a battery in it for my other sunglasses. It’s a huge improvement on the unpocketable bulky triangular case of the previous versions.

A Toy Not Fun Enough For The Price

So far so good, right? But then it comes time to actually see and augment what you shot.

Pairing and syncing is much easier than Gen 1. The glasses forge a Bluetooth connection, then spawn a WiFi network for getting media to your phone faster.

If you just want to share to Snapchat, you’re in luck. Spectacles content posts to Stories or messages in its cool circular format that lets viewers tilt their phones around while always staying full-screen to reveal the edges of your shots. Otherwise, you still have to go through the chore of exporting from Snapchat to your camera roll. Spectacles can at least now export in a variety of croppings for better sharing on Instagram and elsewhere.

What’s new are the 3D photos and videos. They utilize the space between the stereoscopic cameras in the corners of Spectacles employ parallax to sense the depth of a scene. After tapping the 3D button on a photo, you can wiggle the perspective of the image around to almost see around the edges of what you’re looking at. Spectacles will automatically pan back and forth for you, and export 3D photos as short Boomerang-esque six-second videos.

Unfortunately, I found that I didn’t get much sense of depth from most of the 3D photos I shot or saw. It takes a very particular kind of three-dimensional object from the right angle in the right light to much sense of movement from the wiggle. Snapchat’s algorithms also had a bad habit of mistakenly assigning bits of the foreground and background to each other, breaking the illusion. Occasionally you’ll have someone’s ear or their hair left behind and disembodied by the 3D effect.

Don’t expect these to flood social media or convince prospective Spectacles buyers. The 3D selfies you can shoot on Snapchat for free look better anyways.

The biggest problem comes with the delay when playing with 3D videos. Snapchat has to do the depth processing on its servers, so you have to wait for your video to upload, get scanned, and be re-downloaded before you can apply the 3D AR filters. On WiFi that takes about 35 seconds per 10 second video, which is quite a bore. It takes forever over a mobile connection. That means you often won’t be able to apply the filters and see how they look until you’re home and unable to reshoot anything.

The filter set is also limited and haphazard. You can add a 3D bird or balloons around you, wander through golden snow or neon arcs, overlay flower projections or rainbow waves, or sprinkle on sparkles and light-bending blobs. While the bird is cute, and the rainbows and flowers are remarkably psychedelic, none of them are more than briefly entertaining.

The 3D objects often glitch through real pieces of scenery, and you can’t control them at all. No summoning the bird mid-video. My favorite trick, learned from Karen X Cheng, was to export unedited and filtered versions of a video and splice them together on my computer as scene in my demo video above. You can’t actually do that from within Snapchat.

Snap will have to build a lot cooler filters with interactivity if they’re going to compel creators to fork over $380 for Spectacles 3. It could hope to rely on its Lens Studio community platform, but so few developers or users will have the glasses that most will stick to making and using filters for phones.

Spectacles 3 are too expensive to be a toy, but don’t excel at being much more. Videography influencers might enjoy having a pair in their tool bag. But it’s hard to imagine anyone not sharing content professionally paying for the gadget.

Iteration vs Ideation

“We’re now pushing to elevate the technology and the design to master depth technically” Hanover tells me. “Holing ourselves up within an R&D center for years and years? That’s not our approach. It’s important to meet the customer where they are today and continue to iterate and get that feedback.”

But this iteration doesn’t feel like Snap meeting the customer where they are. That raises the question of whether Snapchat is really getting enough data out of the whole endeavor to justify publicly releasing Spectacles at all. The company will have to hope that testing short-term is worth thinking short-term, when it’s trying to win the long-term war in augmented reality eyewear.

12 Nov 2019

PacketAI predicts IT incidents by parsing large event data sets

Meet PacketAI, a French startup that wants to alert you when there’s something wrong with your app or service. The company uses machine learning to parse raw event data and find out if there’s anything wrong.

PacketAI can intercept incidents at many different levels. For instance, the service can tell you if your users can’t write something on your database or if there’s something wrong with your compute layer.

PacketAI doesn’t try to reinvent the wheel. The startup is well aware that there are many monitoring tools our there — Datadog, Splunk and Dynatrace for instance.

“Those tools are primarily designed for humans so that they can understand information delivered by machines,” co-founder and CEO Hardik Thakkar told me.

PacketAI integrates directly with the APIs of Datadog, Splunk or Dynatrace to analyze raw event data in real time. Instead of scrolling through thousands of lines, you can get an alert that tells you that bank transfers take a a lot more time than usual to go through for instance.

Eventually, you should be able to repair your problem much more quickly, which could potentially improve your revenue.

For now, the startup creates a machine learning model for each client. But the plan is to create a model for each vertical as soon as you have four or five companies in the same space using PacketAI. You could imagine a model for banking companies, a model for telecom companies, etc.

The startup already raised $2.3 million (€2.1 million) from Aster Capital, BNP Paribas Developpement, Entrepreneur First and SGPA.

PacketAI is already working with some clients on the first implementations of its product. The service will be available to anyone in early 2020. Pricing varies depending on the number of nodes (any physical or virtual network element) you want to monitor using PacketAI.

12 Nov 2019

PacketAI predicts IT incidents by parsing large event data sets

Meet PacketAI, a French startup that wants to alert you when there’s something wrong with your app or service. The company uses machine learning to parse raw event data and find out if there’s anything wrong.

PacketAI can intercept incidents at many different levels. For instance, the service can tell you if your users can’t write something on your database or if there’s something wrong with your compute layer.

PacketAI doesn’t try to reinvent the wheel. The startup is well aware that there are many monitoring tools our there — Datadog, Splunk and Dynatrace for instance.

“Those tools are primarily designed for humans so that they can understand information delivered by machines,” co-founder and CEO Hardik Thakkar told me.

PacketAI integrates directly with the APIs of Datadog, Splunk or Dynatrace to analyze raw event data in real time. Instead of scrolling through thousands of lines, you can get an alert that tells you that bank transfers take a a lot more time than usual to go through for instance.

Eventually, you should be able to repair your problem much more quickly, which could potentially improve your revenue.

For now, the startup creates a machine learning model for each client. But the plan is to create a model for each vertical as soon as you have four or five companies in the same space using PacketAI. You could imagine a model for banking companies, a model for telecom companies, etc.

The startup already raised $2.3 million (€2.1 million) from Aster Capital, BNP Paribas Developpement, Entrepreneur First and SGPA.

PacketAI is already working with some clients on the first implementations of its product. The service will be available to anyone in early 2020. Pricing varies depending on the number of nodes (any physical or virtual network element) you want to monitor using PacketAI.

12 Nov 2019

Introducing the TC Top Picks for Disrupt Berlin 2019

Can we get a fanfare of trumpets, please? The time has come to introduce you to our TC Top Picks for Disrupt Berlin 2019. The ingenuity and creativity reflected in the international startup community can’t be overstated, and narrowing the field from the hundreds of applications we received was no easy task.

The program showcases outstanding early-stage startups across these categories: AI/Machine Learning, Biotech/Healthtech, Blockchain, Fintech, Mobility, Privacy/Security, Retail/E-commerce, Robotics/IoT/Hardware, CRM/Enterprise and Education.

Challenging as it was, TechCrunch editors had a (wicked fun) job to do — select up to five early-stage startups they felt represent the best of their specific tech category. This remarkable cadre of early-stage startups knocked our proverbial socks off. Cold toes notwithstanding, we think you’ll be equally impressed.

Founders who earn the TC Top Picks designation receive a free Startup Alley Exhibitor Package, one full day of exhibiting, three free Founder passes, intense investor and media interest and VIP treatment — including an interview on the Showcase Stage with a TechCrunch editor. And we promote that video across our social media platforms.

Alright, it’s time for the big reveal. Congratulations to the TC Top Picks for Disrupt Berlin 2019!

Artificial Intelligence + Machine Learning

  • Apostera: An automotive company offering a set of innovative products world-wide.
  • CYANITE: Music analysis tool — the interface between the music industry, data science and software engineering.
  • Prodsight: Helps companies make data-driven product development decisions.
  • Stormly: An AI-powered platform that works as a data consultant.
  • Timekettle Technologies: Committed to building a global brand of AI translator so immersive that it disappears into the experience.

Biotech + Healthtech

  • Glazomer: An affordable Hi-End Eye Tracking system for professional academic and clinical research.
  • Healthy Quit: Digital health company and a pharmacy that provides vaping and smoking cessation by utilizing an artificial intelligent treatment algorithm and medications to help patients quit.
  • mettleAI: Leveraging ML/AI to predict substance abuse relapse before it happens.
  • Thryve: We power the individualization of health care by providing the API needed by health services to access health data from more than 100 wearables.
  • Volta Medical: Aims at developing a wide range of intelligent software solutions designed to guide cardiologists during interventional procedures.

Blockchain

  • Acatena AG: IoT & Blockchain platform to reinvent premium product authenticity.
  • Anytype: An operating system for the new internet.
  • etoshi: The all-in-one crypto platform: trading, wallets and taxes under one roof!
  • SIMBA Chain: A cloud-based, smart-contract-as-a-service (SCaaS) platform, enabling users across a variety of skill sets to implement dapps (decentralized applications).

CRM + Enterprise

  • Cumul.io: A cloud analytics platform for business experts & SaaS companies to integrate intuitive yet powerful data visualization into their daily lives.
  • cux.io: Your one-stop shop for understanding your users’ experiences online.
  • Radicalbit: Event stream processing self-service platform. One platform for data engineering, data ops & MLOps on top of Kafka.
  • Stack: Internet launchpad, increasing the efficiency of working with the web for the average internet users by allowing simultaneous use of multiple web-apps within a neatly organized working environment.
  • Usercentrics: A CMP that helps enterprise customers obtain, manage and document the user consent, with all different aspects of consent storage, consent API’s, consent in ad tech.

Fintech

  • ChromaWay: Blockchain “2.0” platform that enables smart contracts and digital assets for financial applications and non-financial applications.
  • CurioInvest: A technology platform that lets anyone invest directly in rare alternative assets.
  • Raison: A platform for operations with investments and personal finance.
  • TXC Markets: Peer to peer fintech trading technologies and marketplaces for illiquid and alternative assets.

Mobility + Transportation

  • DUCKT: The world’s first universal electrical scooter charging station. Better operations, better experience for people & the city.
  • MachineMax: Used to track utilisation, idling, fuel and geolocation for any machine.
  • Pixmoving: Provides universal autonomous driving chassis.
  • Qibus: Making autonomous mobility a reality.
  • TRAXIT: Tracking multi service company changing the way we track our belongings, starting from Aviation vertical.

Privacy + Security

  • Nect: Delivers the self-service future of identity verification as a service — easy to use and with military-grade security.
  • o.vision: Develops facial identification solutions for integration within smart office frameworks and commercial bank security systems.
  • Sypher Solutions: Software platform that simplifies analysis and helps prevent mistakes when documenting and maintaining GDPR compliance.
  • Wire: The most secure collaboration platform, transforming the way business’ communicate in the same way and speed that our founders disrupted telephony with Skype.

Retail + E-commerce

  • combyne: A social tool for combining clothing. Our vision is to digitize the usage of fashion.
  • Fashwire: A global data-driven marketplace with 200+ fashion designers from 25+ countries.
  • Squareshot: We help consumer, fashion and dnvb brands streamline content production and create beautiful product shots to maximize their online sales.

Robotics + Hardware + IoT

  • Aether Biomedical: A rehabilitation robotics startup focused on building bionic limbs for upper limb amputees.
  • Domotron: The most advanced smart home that adapts to your lifestyle. To make your life easier.
  • Infocode: Smart building solution company that provides smart waste bin for office and public spaces.
  • RoboChef: World’s first fully automated robotic kitchen cooking 500+ recipes with ZERO manual effort powered by IoT, Robotics & AI.

Disrupt Berlin 2019 takes place on 11-12 December. Buy your pass today and be sure to swing by Startup Alley to meet and greet the TC Top Picks. One more thing. It’s not too late to buy a Startup Alley Exhibitor Package and strut your stuff alongside hundreds of companies and sponsors. All exhibiting startups have a shot at winning the Wild Card to compete for $50,000 in our famous pitch competition, Startup Battlefield. What have you got to lose? Nuthin!

12 Nov 2019

Angular Ventures outs $41M seed fund for European and Israeli enterprise and ‘deep tech’ startups

Angular Ventures, the early-stage enterprise and “deep tech”-focused VC firm founded by former DFJ Esprit partner Gil Dibner, is announcing the closing of its debut fund at $41 million.

Targeting startups in Europe and Israel, Angular Ventures has been operating in so-called “stealth mode” for almost two years, seeing its portfolio grow to 12 companies. The VC typically invests between $250,000 and $1.5 million, from writing a startup’s first cheque to Series A. It says it aims to do five-seven new investments per year.

Companies backed by Angular include “service intelligence” startup Aquant.io, HR workplace misconduct platform Vault, nano-tech security technology provider Dust Identity (also backed by Kleiner Perkins) and food supply chain optimization company Trellis.

Notably, Dibner is Angular Ventures’ sole general partner. Prior to founding Angular Ventures, he was most recently running an angel syndicate on AngelList, although his venture career goes back much further.

Prior to leading the syndicate, Dibner was a partner at London-based venture capital firm DFJ Esprit, which he departed in March 2015. Before that he was a principal at Index Ventures, also in London, and had earlier spells at Israeli VCs Gemini Israel Ventures and Genesis Partners, both in Tel Aviv.

Dibner says he wanted to “re-imagine” early-seed venture capital in Europe and Israel by building what he describes as a sector-focused firm, and removing geographical boundaries by investing in both Europe and Israel, and establishing a U.S. presence to support portfolio startups with global expansion.

Whether or not you think that is particularly unique, you’re mileage may vary, but there is no doubt Dibner has a decent investment track record in the enterprise space and beyond, either way.

Throughout his career to date, Dibner says he has backed 40 companies. Breaking this down further: 28 have raised capital from U.S.-based VC firms or exited to U.S.-based acquirers. In fact, he’s seen eight exits overall, and two of Dibner’s investments — JFrog and SiSense — have reached “unicorn” status, i.e. a valuation of $1 billion or more.

Despite his track record, Dibner says it took four years to finally close this fund, which has given him even more empathy for founders during fundraising.

“It took nearly four years to get from concept to a first close, and although we were ultimately significantly oversubscribed, I had to hear a lot of ‘nos’ to get this done,” he tells TechCrunch. “There are a lot of differences between raising a fund and raising money for a company, but experience has given me even more empathy with founders who are often enduring very difficult fundraising pathways. The most ambitious ideas usually have the most difficult fundraising.”

It is also probably worth noting that all of Angular’s LPs are private/commercial — in other words, no taxpayer money is at stake here, unlike a plethora of European VC funds. And whilst Dibner is the sole GP, he says he’s working with a team of advisors helping to source deals, provide due diligence and support portfolio companies.

They include: Fred Simon, founder of JFrog; Eldad Farkash, founder of SiSense and Firebolt, an Angular portfolio company; Guy Poreh, former EVP New Media at BBDO, who led Wix’s U.S. market launch and founded Playground; Jerry Dischler, who leads product for Google search and YouTube search; and Phil Wickham, who founded Sozo Ventures and is the chairman of the Kauffman Fellows Program.

12 Nov 2019

Disney officially launches its streaming ‘crown jewel,’ Disney+

The centerpiece of Disney’s streaming strategy is here.

After an initial test in the Netherlands, Disney+ is officially launching in the United States and Canada today, with a lineup of original content that includes the first episode of the very first live action Star Wars series, “The Mandalorian,” along with a deep library of Disney, Pixar and Marvel movies and shows — not to mention the first 30 seasons of “The Simpsons.”

Disney+ is available on the web, iOS, Android, Roku, various smart TVs — and, as just announced last week, Amazon Fire TV, all for a monthly price of $6.99.

This isn’t Disney’s first streaming service. It took a big step in this direction with the launch of ESPN+ last year, and it’s also taken operational control of Hulu following its acquisition of Fox. (The company is even offering Disney+, ESPN+ and Hulu all together in a package that it calls the Disney Bundle, at a monthly price of $12.99 — the same as a basic Netflix subscription.) Plus, it owns the streaming service Hotstar in India, which it plans to bring to other developing Asian countries.

Still, at a press event last week in New York City, Direct to Consumer and International Chairman Kevin Mayer described Disney+ as “the crown jewel of our streaming collection.” He explained that the service will be “the ultimate and exclusive home” for all the content from the company’s Disney, Pixar, Marvel, Star Wars and National Geographic brands.

The Mandalorian

Of course, that doesn’t mean everything will be premiering on Disney+ — those giant Marvel movies are still coming to theaters. But they’ll eventually make their way over to the service, where they will stream exclusively.

Mayer noted that this has required a big shift in Disney’s strategy, since it’s had to pass up revenue from licensing content to streamers like Netflix. The company also expects to spend $1 billion on original content during the service’s first year, with that number increasing to $2.5 billion by its 2024 fiscal year.

In addition to “The Mandalorian,” original shows announced for Disney+ include an Obi-Wan Kenobi series, as well as the Marvel titles “WandaVision,” “The Falcon and the Winter Soldier” and “Loki.”

Disney+ President of Content and Marketing Ricky Strauss explained that the Marvel shows will allow filmmakers to explore characters and post-“Avengers: Endgame” storylines more deeply, which can then feed back into what you see on the big screen.

“The Marvel Cinematic Universe is not just a theatrical play” anymore, Strauss said.

Disney+

There will also be movies like “Lady and the Tramp,” and unscripted series like “The World According to Jeff Goldblum.” Disney+ Senior Vice President of Content Agnes Chu added that the unscripted programs can supplement the big movies — for example, someone could watch the animated “Beauty and the Beast,” then learn more about lyricist Howard Ashman in the original documentary “Howard.”

Everything is meant to be family-friendly, with no R-content on the platform. So despite acquiring “Deadpool” as part of the Fox deal, Disney will be streaming that movie elsewhere.

Still, Mayer suggested that initial usage in the Netherlands confirms Disney’s hopes that the service will appeal to a variety of audiences; even though subscribers usually start by watching a Marvel movie, the most-watched titles overall are “Agents of SHIELD,” “The Sweet life of Zack and Cody” and “Mickey Mouse Clubhouse.”

It could also take a little while before the full libraries of the various Disney brands make it onto the Disney+, because they need to be freed up from the company’s deals with Netflix and others. But at launch, it will offer a number of classic Disney films, as well as the first seven Star Wars movies (available in 4K Dolby Vision for the first time) and many Marvel movies including “Endgame.”

In fact, Disney specifically moved up the streaming release of “Endgame” to coincide with the Disney+ launch — something that Mayer described as a one-time decision that “does not indicate an ongoing compression of the home video window.”

The Mandalorian

He also emphasized that Disney will continue to make movies for theatrical release — not just Marvel blockbusters, but also Fox Searchlight’s artier films, which will continue to “find their way into theaters.” At the same time, the company is also making movies specifically for Disney+ and Hulu — Mayer said those are cases where executives have decided that the movies will “live better on our SVOD services.”

Strauss projected that in its first year, Disney+ will premiere 30 original series and 15 movies and specials, while also hosting a library of 7,500 TV episodes and more than 500 films. And Mayer said that by 2024, Disney is expecting the service to break even, with 60 to 90 million paying subscribers.

The event closed with a half-hour screening of clips from the first few episodes of “The Mandalorian,” which tells the story a mysterious bounty hunter and takes place in the aftermath of the Empire’s overthrow in “Return of the Jedi.”

I suspect the clips were carefully selected to avoid revealing any major plot details, but I’m happy to report that the show explores a seedier side of the Star Wars universe — think the Mos Eisley cantina scene, but starring Boba Fett and expanded across eight episodes, with plenty of big-budget action and effects.

And yes, legendary director Werner Herzog makes for a delightful Star Wars baddie.

12 Nov 2019

Nigeria’s Interswitch confirms $1B valuation after Visa investment

Nigerian digital payments firm Interswitch confirmed today it has reached unicorn status after Visa acquired a minority equity stake in the firm.

“The investment makes Interswitch one of the most valuable African fintech businesses with a valuation of $1 billion,” Interswitch said in a release to TechCrunch.

The Visa investment could create the first of two market distinctions for Interswitch — as it shouldn’t change the Lagos based company’s plans to go public.

“An IPO is still very much in the cards; likely sometime in the first half of 2020,” a source with knowledge of the situation told TechCrunch on background.

Interswitch did not reveal the amount of Visa’s investment and would not confirm Sky News reporting Monday that pegged it at $200 million for 20%.

Whatever the exact number, Interswitch’s confirmation of a $1 billion valuation marks another milestone in African tech.

Only one VC backed startup, turned later-stage company on the continent — e-commerce venture Jumia — has generated enough revenue and capital to achieve a ten-figure valuation.

For the near to medium-term, Interswitch could stand as Africa’s sole tech-unicorn, since Jumia’s volatile share-price and declining market-cap since an April IPO have dropped the company’s worth below $1 billion (for now).

Founded in 2002 by Mitchell Elegbe, Interswitch pioneered the infrastructure to digitize Nigeria’s then predominantly paper-ledger and cash-based economy.

The company now provides much of rails for Nigeria’s online banking system that serves Africa’s largest economy and population. Interswitch offers a number of personal and business finance products, including its Verve payment cards and Quickteller payment app.

Interswitch Quickteller

From its home-base of Nigeria Interswitch has expanded its physical presence to Uganda, Gambia and Kenya .

Interswitch also sells its products in 23 African countries and launched a partnership in August for its Verve cardholders to make payments on Discover’s global network.

Visa and Interswitch are touting the equity investment as a strategic collaboration between the two companies, without a lot of detail on what that will mean.

“The partnership will create an instant acceptance network across Africa to benefit consumers and merchants,” was the characterization offered in a press release.

Verve Times Square Interswitch

Interswitch’s imminent IPO has been delayed for several years. CEO and founder Mitchell Elegbe told TechCrunch, “a dual-listing on the London and Lagos stock exchange is an option on the table,” in a January 2016 call.

In subsequent years, Elegbe and other Interswitch executives named Nigeria’s recession as a reason for the delay.

A number stories have surfaced, including Bloomberg News reporting in July, that the company was poised to go public on the LSE.

TechCrunch’s source close to the matter offered the latest indication that Interswitch will list on a major exchange by mid-2020.

With possible exits for backers Helios Investment Partners, TA Investments and IFC, Interswitch’s unicorn status and pending IPO could create more momentum for startup investment in Africa. VC to the continent has grown significantly over the last 5 years, but stands at just over $1 billion annually, per Partech numbers.

Interswitch could also be in a stronger position to offer more capital directly to the continent’s fintech startups by reviving its ePayment Growth Fund. The venture arm made two investments in 2015, but then went largely quiet.

 

 

 

 

12 Nov 2019

Balderton Capital raises new $400M fund to back European tech startups at Series A

Balderton Capital, one of the so-called “big four” early-stage VC firms in London (the others being Accel, Atomico and Index), has raised a new $400 million fund to continue backing European tech startups at Series A.

Dealroom recently released a report that pegged Balderton as the most active Series A investor in Europe (between 2014-2018), and in many ways this new fund is a continuation, and business as usual for the firm. It is also roughly the same size as the VC’s last Series A fund, which it closed in 2017 at $375 million.

That’s not to be confused with Balderton’s other recently launched “secondary” fund, which is dedicated to buying equity stakes from early shareholders in European-founded “high-growth, scale-up” technology companies. The move essentially formalised the secondary share dealing that already happens — typically as part of a Series C or other later rounds — which often sees founders take some money off the table so they can improve their own financial situation and won’t be tempted to sell their company too soon, but also gives early investors a way out so they can begin the cycle all over again.

Meanwhile, Balderton says the new Series A fund is being launched against a backdrop of “unprecedented momentum” within the European tech ecosystem. The VC notes that the number of Series A rounds in Europe per year has quadrupled since 2012, with the total amount of VC funding going into European startups hitting record highs last year — from €11.5 billion in 2014 to a chunky €24.6 billion in 2018.

That, together with the sheer number of new funds that have launched over the last 12 months — and three I’m covering this week — leads me to wonder out loud if tech, and Europe in particular, has entered a bubble.

“I don’t think we are,” Balderton Partner Suranga Chandratillake tells me during a call, before acknowledging that it is often hard to know if you are in a bubble if you are actually in one. “If you look at the public markets, the valuations around tech companies, while they are high, I would argue that in many cases they are justifiable when you look at the profitability and the growth rate of those businesses, especially things like enterprise software. But I think it’s harder when you get into businesses where they are more one-off… [where] we don’t necessarily know exactly how to value those long term.”

On Europe specifically, Chandratillake points out that some European tech hubs are more heated than others and that sentiment can vary considerably per geography. “As you get to more and more the local level, of course, you can experience what feel like sort of comparative bubbles. So, you know, maybe London was expensive two years ago, and France is expensive right now at Series A or whatever, but I don’t think those things really matter in the long run, because ultimately they iron out as long as the employee valuations are sensible. And as an investor, you’re paying attention to that stuff when you’re going to make an investment.”

One rumour within London VC is there are firms that have felt pressured to do follow-on investments in portfolio companies they otherwise might not have during cooler times, for fear of signalling to the market not just that a company isn’t doing well but that the VC firm itself isn’t as founder-friendly as competing VCs. How does Balderton think about signaling?

“Signaling is a massive deal [in venture capital],” says Chandratillake. “And actually, this is an area where, you know, we think we have a fairly strong position, because for over 10 years now we have focused almost entirely on Series A… and we are very open about that.”

He says that unlike other Series A VCs that invest at Series B or Series C, too, and also quite often dabble in seed, companies backed by Balderton shouldn’t expect the firm to “lead or be a major part of your Series B.”

“Of course, we’ll help, we’re going to do some of our pro-rata or maybe all of our pro-rata to try and protect some of our ownership, all those sorts of rational things we do. But we’re not raising a fund which allows us to be a big investor in your Series B and your C and your D and so on. I think as long as you’re really open with entrepreneurs about that early, they totally get that and they understand why it works economically for us and why it’s a good thing.

“Then if you do that for a long enough period of time, as we have, and stick to that — so you don’t do weird things like, you know, say that, but then on the other hand with the most interesting company, you try to bully your way into more of a Series B or whatever, then the ecosystem overall starts to realise… then the signal problem goes away.”

With regards to future investments, Chandratillake says Balderton will continue to invest all over Europe across any sector where “information technology” is being leveraged and creating value.

In the fund prior to last, for example, fintech was a major focus, backing companies like Revolut and Nutmeg, but more recently the VC has been investing more in health tech, where computer science is helping life science solve problems faster or cheaper.

“I think that there will be more of that,” says Chandratillake. “There’s a lot more to be done in this health tech space, both at the patient level, but also actually a lot of really interesting things behind the scenes that will help health systems operate more efficiently and use technology in interesting ways. It’s a really interesting area for Europe, because we have, you know, within the continent, a plethora of different health systems — from almost fully private systems through to obviously entirely state single payer systems like the NHS. It’s a great place to experiment with different models. It’s also of course, as a continent, home to some of the most important pharmaceutical companies [in the world].”

11 Nov 2019

A16Z-backed Shift.org announces veterans hiring pipeline partnership with Better.com

While across much of Asia, November 11th is either “singles day” (a $38 billion Alibaba extravaganza this year) or Pepero Day (named because 11/11 looks like a bunch of chocolate dessert sticks), here in the United States and parts of Europe, November 11th also marks the end of World War I and the commemoration of Veterans Day.

Every year in the U.S., tens of thousands of soldiers leave active duty and transition into the civilian workforce, a route that can be startlingly difficult to navigate. How do you describe what an ordnance specialist does to civilians who have no idea what an MOS is? While the military teaches skills useful to a wide number of professions, holding the right conversations in a job search is key to making the leap.

That’s why a spate of new programs aims to help make it easier for veterans to head into the civilian workforce, and particularly into tech, which obviously has huge growth and great jobs waiting for those who can lock them up. I’ve previously covered one TechStars-connected non-profit, Patriot Boot Camp, which helps veterans looking to launch startups navigate the founder route.

One company that we haven’t covered on TechCrunch before though is Shift.org, an A16Z-backed for-profit startup that aims to help veterans learn the key career skills needed to “shift” from the military into the civilian workforce.

Today for Veterans Day, the company announced a new employer partnership with mortgage fintech startup Better.com that will see Better.com hire 80 veterans in the next few months using Shift.org as a sourcing pool, and a projected target of 5,000 veterans and their spouses by 2025 (assuming, as with all high-growth startups, that the high-growth continues firing on all cylinders).

In a press statement, Better.com CEO Vishal Garg said that “Veterans are an untapped source of talent that learned, operated and adapted to some of the world’s most innovative technologies from VR to robotics, nuclear technology and cyber.”

I chatted a bit with Shift.org CEO Mike Slagh about how he sees these partnerships and his own path into building a company. I “got started three years ago after serving in the Navy for just over five years as a bomb disposal officer,” he explained. In many ways, Shift.org was trying to fix his own challenge in moving back into the civilian workforce:

… My story was, I was going on base to the career fairs — there are these big aircraft hangers — and you’re sitting across the table from these employers, and they’re telling you what it’s like to work at their company, they’re telling you what [their] culture is like, and it’s just really hard to picture and it’s such an anxiety-ridden decision, and a big high-stakes moment in your life where you want to get it right for your family, you want to get it right for your future career trajectory.

Part of that anxiety is that saying the right things is often more crucial in recruitment settings than having the right skills. Slagh said that “I actually think that the gap is much narrower than many people naturally assume,” but, “you have to have oftentimes industry-specific context for somebody to take a bet on you when you have a non-traditional background.”

Since launching, Shift.org has partnered with employers like Better.com, Major League Baseball, and Symantec to help bridge the divide and open the pipeline to a wider and more diverse set of candidates.

The company was first funded by Garrett Camp of Expa Labs, and netted a reported $4 million round from Jeff Jordan at Andreessen Horowitz early last year. Slagh said his hope is to eventually work with hundreds of thousands of veterans not just secure great jobs, but also to train them in the skillsets they need to succeed in the future. The company is exclusively partnered today with Lambda School to help provide some of that technical background, for instance.