Category: UNCATEGORIZED

17 Apr 2019

Terry Gou will resign as Foxconn’s chairman to run for president of Taiwan

Foxconn chairman Terry Gou officially announced on Wednesday that he will run for president of Taiwan. Gou will step down from leading the company (also known as Hon Hai Precision Industry Co. Ltd), one of Apple’s most important manufacturers, in order to campaign for the nomination of the Kuomintang, the pro-China opposition party.

Taiwan’s economy and complicated relationship with China will be at the heart of the 2020 presidential campaign, as incumbent Tsai Ing-wen defends her position against not only candidates from the Kuomintang and other parties, but also a challenger from her own party, the Democratic Progressive Party, William Lai, who entered the race last month.

Gou earlier said that his presidential aspirations had been blessed by Mazu, the sea goddess who is one of the most important Taoist and Buddhist deities. Gou founded Foxconn in 1974 and has held no political office, but his campaign will be helped by his business reputation and reported $7 billion net worth.

Gou’s lack of government experience may be balanced in the mind of voters by his relationships with Donald Trump and China’s government. Foxconn has committed to building a $10 billion factory in Wisconsin and even though Taiwan’s sovereignity is not recognized by China, which views the country as a rogue province, Foxconn has more plants there than in any other country.

17 Apr 2019

Twitter acquihires highlight sharing app Highly

Quotes from articles work much better than links on Twitter, so the social giant is scooping up the team behind highlight sharing app Highly. This talent could help Twitter build its own version of Highly or develop other ways to excerpt the best content from websites and get it into the timeline.

Highly will shut down its iOS and Slack app on April 26th, though it promises that “No highlights will be harmed”. It’s also making its paid “Crowd Control” for private highlight sharing plus Highly For Teams free in the meantime. Twitter confirmed to TechCrunch that the deal was an acquihire, and a spokesperson provided this statement: “We are excited to welcome the Highly team to Twitter. Their expertise will accelerate our product and design thinking around making Twitter more conversational.”

“Social highlights can make sharing stories online feel personal, efficient and alive — like retelling a story to a friend, over coffee. They give people shared context and spark meaningful conversations” the Highly team writes.

Quotes can make the difference between someone breezing past a link they don’t want to leave Twitter to explore, and getting a peek at what’s smart about an article so they know if it’s worth diving deeper. Many people use OneShot to generate Twitter-formatted screenshots of posts. But Highly lets you just rub your finger over text to turn it into an image with a link back to the article for easy tweeting.

“Sharing highlights, not headlines — sharing thinking instead of lazily linking — helps spark the kind of conversation that leaves participants and observers alike a bit better off than they started. We’d like to see more of this” the Highly teams writes. That’s why it’s joining Twitter to work on improving conversation health. Founded in 2014, Highly had raised a seed round in 2017.

 

17 Apr 2019

Audi self-driving unit taps newcomer Aeva for its unique lidar

Audi’s self-driving unit has tapped a startup with a unique approach to lidar as it ramps up testing in Munich using a fleet of autonomous electric e-tron crossover vehicles.

Audi subsidiary Autonomous Intelligent Driving, or AID, said Wednesday it’s using lidar sensors developed by Aeva, a startup founded just two years ago by veterans of Apple and Nikon.

Aeva, a Mountain View, Calif.,-based company started by Soroush Salehian, and Mina Rezk, have developed what they describe as “4D lidar” that can measure distance as well as instant velocity without losing range and all while preventing interference from the sun or other sensors. Move past the 4D branding-speak, and the tech is compelling.

Lidar, or light detection and ranging radar, measures distance. It’s considered by many (with Tesla as one exception) in the emerging automated driving industry as a critical and necessary sensor. And for years, that industry has been dominated by Velodyne.

Today, there are dozens of lidar startups that have popped up with promises of technological breakthroughs that will offer lower cost sensors with better resolution and accuracy than Velodyne. It’s a promise that is fraught with challenges, notably the ability to scale up manufacturing.

Traditional lidar sensors are able to determine distance by sending out high-power pulses of light outside the visible spectrum and then tracking how long it takes for each of those pulses to return. As they come back, the direction of, and distance to, whatever that pulse hits are recorded as a point and eventually forms a 3D map.

Aeva’s sensors emit a continuous low power laser, which allows them to sense instant velocity of every point in the frame at ranges up to 300 meters, the company says. In other words, Aeva’s sensors can determine distance and direction as well as speed of the objects coming to or moving away from it.

This is a handy perception feature for autonomous vehicles operating in an environment of objects that travel at different speeds like pedestrians, bicycles, and vehicles.

Aeva, backed by investors including Lux Capital and Canaan Partners, says its sensors are also unique because they’re “free” from interference from other sensors or sunlight.

It was this combination of long range perception, instantaneous velocity measurements at cm/s precision and robustness to interferences that sold AID CTO Alexandre Haag on the Aeva sensors.

Aeva spent the past 18 months going through a validation process with Audi and parent company Volkswagen. This announcement confirms that Aeva has made it past a critical hurdle in Audi’s AV plans. Aeva’s sensors are already on Audi e-tron development vehicles in Munich. The automaker plans to bring autonomous driving to urban mobility services within the next few years.

Interference is possible and can cause a stream of random points on a 3D map if the lidar is pointed directly at the sun or if there are multiple sensors on the same vehicle. Lidar companies have instituted various techniques to prevent interference patterns; autonomous vehicle developers also account for potential interference problems from the sun and snow by creating algorithms to reject these kinds of outliers.

Still, Salehian argues that interference is a significant challenge.

When you talk about challenge of building to scale and designing for mass scale, it’s not just about how easily they can be manufactured, Salehian contends. “It’s also about having these things work in unison together on a row. So when you’re talking about hundreds of thousands of these cars, that’s a big deal.”

17 Apr 2019

Google Cloud brings on 27-year SAP veteran as it doubles down on enterprise adoption

Thomas Kurian, the newly-minted CEO of Google Cloud, used the company’s Cloud Next conference last week to lay out his vision for the future of Google’s cloud computing platform. That vision involves, in part, a hiring spree to give businesses that want to work with Google more people to talk to and get help from. Unsurprisingly, Kurian is also looking to put his stamp on the executive team, too, and today announced that former SAP executive Robert Enslin is joining Google Cloud as its new President of Global Customer Operations.

Enslin’s hire is another clear signal that Kurian is focused on enterprise customers. Enslin, after all, is a veteran of the enterprise business, with 27 years at SAP, where he served on the company’s executive board until he announced his resignation from the company earlier this month. After leading various parts of SAP, including as president of its cloud product portfolio, president of SAP North America and CEO of SAP Japan, Enslin announced that he had “a few more aspirations to fulfill.” Those aspirations, we now know, include helping Google Cloud expand its lineup of enterprise customers.

“Rob brings great international experience to his role having worked in South Africa, Europe, Asia and the United States—this global perspective will be invaluable as we expand Google Cloud into established industries and growth markets around the world,” Kurian writes in today’s announcement.

For the last two years, Google Cloud already had a President of Global Customer Operations, though, in the form of Paul-Henri Ferrand, a former Dell exec who was brought on by Google Cloud’s former CEO Diane Greene . Kurian says that Ferrand “has decided to take on a new challenge within Google.”

 

17 Apr 2019

Unpacking Pinterest’s IPO expectations

For seven years, Pinterest has been considered a “unicorn,” boasting a valuation larger than $1 billion since its 2012 Series C funding round. Before that, it was considered an underdog, puzzling some investors with its “digital pinboard” and preference for “quality growth.”

Now, as the company takes its final step toward its Thursday NYSE initial public offering, it’s being called an “undercorn.”

Pinterest plans to sell shares of its stock, titled “PINS,” at $15 to $17 apiece, less than the roughly $21 per share it charged private market investors to participate in its mid-2017 Series H, its last private financing. That IPO price translates into a mid-range valuation of $10.64 billion, or nearly $2 billion under the $12.3 billion valuation it garnered after its last round, hence “undercorn.”

There are many potential causes to a down round like this. In the case of Pinterest, it’s probably less a result of newly public Lyft’s poor performance on the stock market and more a result of its own reputation for slow growth. Pinterest is a disciplined company that’s carved a clear path to profitability. It has invested a lot of time and energy into building a positive, diverse culture and a product devoid of trolls and hate speech — time some believe should have been spent focused on rapid growth and scale.

Sure, if Pinterest had tossed its values aside and blitzscaled, maybe it would debut with a larger initial market cap, but its corporate culture will be key to its long-term value, and investors are going to get rich off its IPO either way. So Pinterest is an undercorn — who cares?

Pinterest isn’t too nice

Ben Silbermann, chief executive officer of Pinterest. Photographer: Yana Paskova/Bloomberg via Getty Images

Founded in 2010, Pinterest is one of the youngest members of the newly dubbed “A-PLUS” cohort of unicorns, made up of Airbnb, Pinterest, Lyft, Uber and Slack. Compared to its peers, Pinterest has raised a modest $1.47 billion in equity funding from Bessemer Venture Partners, which holds a 13.1 percent pre-IPO stake, FirstMark Capital (9.8 percent), Andreessen Horowitz (9.6 percent), Fidelity Investments (7.1 percent) and Valiant Capital Partners (6 percent), according to the company’s IPO filing.

Today, Pinterest counts more than 250 million monthly active users, despite a company culture that many have said has slowed progress. Co-founder and chief executive officer Ben Silbermann, as The New York Times pointed out in a recent profile, is not your typical unicorn CEO. He has refused to adopt the move fast and break things mentality, and shied away from the press and focused on “quality growth” and a supportive company culture.

Even with Pinterest’s new status as an undercorn, Bessemer still owns a stake worth upwards of $1 billion. At a midpoint price, FirstMark and a16z’s shares will be worth about $700 million each. Pinterest employees may be too nice to make decisions as quick as other unicorns, as is the claim in CNBC’s recent piece on the company, but the company wouldn’t be where it is today if it completely lacked a “strategic direction.”

“Being nice and having core values and making decisions with intent is to their overall benefit,” Eric Kim, the co-founder of consumer tech investment firm Goodwater Capital, told TechCrunch. “They’ve done an amazing job at being very disciplined with a focus on top lines.”

IPO prospects

More often than not, businesses accrue value at IPO. Look at Zoom, for example; the under-the-radar video conferencing business is expected to increase its valuation nine times over in its IPO, expected tomorrow.

It’s a disappointment to late-stage investors when the opposite happens for one obvious reason: They may not see a return on their investment. If Pinterest indeed becomes an undercorn next week, the new investors that participated in its Series H may have to hold on to their stock longer than planned in hopes its value climbs over time. That, right there, is the worst thing about being an undercorn. These titles are otherwise just nonsense.

Pinterest’s valuation has long radically exceeded its revenues — a factor that surely paved the way for a down round — yet it was touted as a tech marvel, a unicorn among unicorns. In recent years, its valuation has swelled from $4.75 billion in 2014 to $10.47 billion in 2015 to, finally, $12.3 billion in 2017. Meanwhile, Pinterest posted revenues of $299 million in 2016, $473 million in 2017 and $756 million in 2018. There’s no denying the company’s clear path to profitability, as its losses are shrinking year-over-year while profits grow, but 2018’s revenues are still 16 times less than Pinterest’s “decacorn” valuation.

Silicon Valley has a tendency to over-value unprofitable consumer-facing businesses; Pinterest’s down round IPO could be a sign of Wall Street’s reckoning with Silicon Valley’s vanity metrics. Pinterest, however, isn’t the first unicorn to take a hit to its valuation at IPO. Both Box, the cloud-based content management platform, and payments company Square were undercorns when they went public, for example. Square has since thrived as a public company, while Box is currently trading around its initial share price.

“The recovery is all about execution as a public company when everything is much more transparent,” Monique Skruzny, CEO of InspIR Group, an advisory firm focused on investor relations, told TechCrunch. “The IPO is the beginning of a company’s long-term relationship with the public markets and the public markets have to make money. Going public at a valuation that may not necessarily be what some might think or consider to be the top leaves room for upside going forward.”

For Pinterest, continuing to cut losses and surpassing $1 billion in revenue this year is key. Given its history, financial metrics and the generally favorable market conditions, it looks poised to make that happen.

The bottom line is Pinterest, given its slow growth and inflated valuation, was probably always doomed to be nicknamed an undercorn. Its culture, however, shouldn’t be to blame for its new status. After all, a $10 billion IPO is something for the tech industry to be proud of, not to criticize.

In the words of former investor and Evernote co-founder Phil Libin, who joined me on the Equity podcast last week to talk IPOs: “Who would criticize a company who sacrifices growth because they have important culture? Losers, honestly.”

“If they didn’t have the culture and the people they wouldn’t have made anything,” he added.

17 Apr 2019

Walt Disney and Badoo join companies pledging money to rebuild Notre-Dame

Walt Disney and dating app Badoo are the latest companies to pledge funds for the rebuilding of Notre-Dame after the historic cathedral sustained severe damage in a fire earlier this week. Disney is giving $5 million to help reconstruct the 800-year-old Parisian landmark, while Badoo will donate all of its April profits from its 22 million users in France.

They join several other companies that have already promised money, including Apple and a €100 million (about $113 million) pledge from Groupe Artemis, the holding company of French billionaire François-Henri Pinault. Pinault is the owner of luxury brand conglomerate Kering, which counts Gucci and Saint Laurent in its portfolio.

In total, about $1 billion in total has been pledged from individuals and companies. President Emmanuel Macron has set an ambitious five-year plan to restore Notre-Dame, though restoration experts say it may take as many as 15 years.

In a statement, Walt Disney chairman and chief executive officer Bob Iger said “Notre-Dame is a beacon of hope and beauty that has defined the heart of Paris and the soul of France for centuries, inspiring awe and reverence for its art and architecture and for its enduring place in human history. The Walt Disney Company stands with our friends and neighbor in the community, offering our heartfelt support as well as a $5 million donation for the restoration of this irreplacable masterpiece.”

Badoo made its announcement in a tweet earlier today.

17 Apr 2019

As researchers pursue links between the bacteria and human health, startups stand to benefit

In 2009, the National Institutes of Health launched a five-year, $150 million project to stimulate research into a new field of medicine examining the connections between the millions of bacteria living in the human gut and overall human health.

Spurred by the advancements in genetics from a decade earlier, this new field of research would map not just the human genome, but the genetic sequences of the microbes living in the body to ascertain their function and the role they played in ensuring the health of the humans they inhabited.

A decade later, investors are encouraging the commercialization of these tools with hundreds of millions in financing for startup companies with names like uBiome, Viome, Finch Therapeutics, Kallyope, Second Genome, Human Longevity, Maat Pharma, Seed and many, many more.

In all, these companies have raised well over half a billion dollars.

Some of these companies, like Finch Therapeutics, Second Genome, and Maat Pharma are squarely in the clinical world of big pharma — developing treatments for disease through standard research techniques and clinical trials.

Others, like uBiome and Viome, have gone directly to consumers first. Looking to build up a body of knowledge about the microbiome through consumer microbiome analysis kits that will give customers a snapshot of the microbes living in their gut ,and offer basic recommendations on how changes in diet could improve their overall health.

Viome chief executive and co-founder, Naveen Jain

These companies are operating in the regulatory gray area that governs supplements and nutraceuticals, which means they aren’t subject to regulatory approval.

But as they look for validation and acceptance in retail stores and scientific journals, they’re beginning to focus on clinically validated trials to prove that the science behind their recommendations is sound — and so that they can move further up the value chain into drug development. It’s like the strategy that 23andMe used to collect a body of genetic knowledge that the company is now offering up to drug companies so they can collaborate on developing new treatments for diseases.

Earlier this year, uBiome, which has raised over $100 million from investors for its microbiome testing kits since its launch in 2012, laid off over 50 employees in a move the company said was designed to refocus its efforts on drug development.

Now, Viome has raised $25 million as it pursues roughly 15 clinical research trials and looks to move into developing treatments of its own.

The goal of the trials is “to show that our intervention that we’re recommending actually produces results,” says Jain.

Recent scientific research has shown that focusing on microbiome health can reduce the disease burden or slow progression for a variety of illnesses including depression, osteoarthritis, functional bowel diseases, and multiple sclerosis.

Photo: Andrew Brookes/Getty Images

For its part, Viome is focusing on colorectal cancer, breast cancer, depression and anxiety, diabetes and obesity, Crohn’s disease, colitis and digestive disorders.

While Viome has lagged behind other companies in filing patents and publishing papers, the new $25 million in funding from new and existing investors including Khosla Ventures, Bold Capital, Marc Benioff, Physician Partners, Hambrecht Healthcare Growth Venture Fund, and Matthew Harris of Global Infrastructure Partners will likely change that.

What separates Viome from other companies in the direct-to-consumer microbiome space is its testing technology, according to Jain. The company is the first spinout from Jain’s BlueDot venture, which was founded to commercialize orphaned technology coming from various national research laboratories around the country.

Viome’s tests have their origins in tech that BlueDot pulled from Los Alamos National Laboratory which is a variant on sequencing ribonucleic acid, the messenger mechanism which provides instructions to cells on what they should be producing.

Jain and his team of scientists argue that by sequencing RNA they can see the signaling pathway and metabolic pathway for how bacteria are producing chemicals in the body that can benefit or harm human health.

Viome and uBiome both benefited from their embrace by the “quantified self,” biohacking, and wellness communities that are looking for ways to optimize health using homeopathic or natural remedies for many diseases.

Image courtesy of Shutterstock

“Three years ago the microbiome was a very niche market and now the market is more mainstream. Now that it is mainstream it has to work for people,” says Jain. “It can’t simply be a research tool for the self-quantified people. It has to deliver value.”

That’s why the company is beginning to develop its clinical trials — a process that Jain said came with some growing pains.

A brief scan of customer reviews for the company’s product on consumer reporting websites reveals that not everyone has embraced Viome’s products and services and Jain attributed those reviews to the company’s decision to receive CLIA certification — something Jain said was necessary to proceed with the clinical trial research.

“We had growing pains last November and December. We were growing fast and we wanted to become a clinically certified lab…. That certification took a month [then] once we got the federal certification and we needed to get the state certification,” Jain says. “In those three months we got a lot of unhappy customers.”

Some industry observers ascribe the struggles of microbiome-focused startups less to their movement into clinical trials and more to the simple fact that these companies tackled the market too early, while much of the science remains unproven.

“The microbiome space is incredibly important too. But there is both on the scientific side a wealth of information that is still to be uncovered and the collection and understanding of that data needs to be moving that field forward,” said one entrepreneur in the consumer health market. “But the process [for] consumers is still too early.”

That’s likely one reason why both Viome and uBiome are looking to develop treatments.

Photo courtesy of Getty Images

“We are going to break even or lose money on selling the kits,” says Jain. “Once we understand why people have insomnia, diabetes and depression, then we can come up with a personalized set of nutrients that each person needs… Some could be new types of probiotics or prebiotics.”

Meanwhile, uBiome is touting its own patent portfolio as indicative of the real science behind its services (although most of the patents are around the technology it uses to sequence and analyze microbiome health, not any treatment protocols based on its analysis).

The company’s chief officers and researchers hold the first, second, and third spots as top microbiome inventors in terms of portfolio size and they hold the second, third, and fourth spots in terms of patent quality. This study provides a case study of how in-depth patent analyses can identify early indicators of technology and investment trends from large patent databases, according to a statement from uBiome last month.

The patents cover the method and analysis of their microbiome test kits, as well as the diagnostics and therapeutics of conditions ranging from cardiovascular disease, endocrine conditions, autoimmune disorders, neurological disorders, and more, the company said.

Both Jain and uBiome chief executive Jessica Richman are unlikely standard bearers for the potential of microbiome treatments. Neither have a background in science, but both believe strongly in the need to give consumers access to the potential benefits of the science quickly.

“The NIH-funded Human Microbiome Project (HMP) was a five-year, $173 million endeavor to better understand the human microbiome that ran from 2007 to August 2012. We started our crowdfunding campaign on Indiegogo in November 2012– right after it ended,” Richman said in an interview published on the Y Combinator site. “We wanted to take the results of the HMP and bring them directly to the public, enabling all of us to learn about our microbiomes and participate in science as soon as possible– without waiting years and years for the results to trickle down into products and services that people could use.”

For Jain, Viome represents an opportunity to give back and a chance to develop a cure for the disease that killed his father.

It is more than a company to me it is a mission to me it is my promise to my dad to making it right,” Jain says. “It’s also part of paying it forward.”

17 Apr 2019

Daily Crunch: Apple and Qualcomm settle their patent dispute

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. Apple and Qualcomm are ending their legal battles

In a standoff that has been brewing since 2017, Apple argued that Qualcomm was charging too much for patent licensing. After Apple shifted to using Intel chips, Qualcomm moved to get iPhone imports banned in countries around the world for patent infringement.

The two companies have just announced a settlement, with both agreeing to drop all litigation with the other worldwide.

2. Stripe acquires Touchtech, updates APIs to prep for strong customer authentication in Europe

Touchtech Payments is a startup out of Ireland that works with banks to help them build and manage Strong Customer Authentication, a verification process that will typically require customers to provide two different forms of authentication in order to process transactions.

3. Jack Dorsey says it’s time to rethink the fundamental dynamics of Twitter

For most of the interview, Dorsey outlined steps that Twitter has taken to combat abuse and misinformation, but the TED’s Chris Anderson explained why the company’s critics sometimes find those steps so insufficient and unsatisfying. He compared Twitter to the Titanic, and Dorsey to the captain, listening calmly to passengers’ concerns about the iceberg up ahead.

Billionaire Richard Liu, founder and chief executive officer of JD.com Inc., listens during an interview in Beijing, China, on Wednesday, Oct. 19, 2016. Photographer: Qilai Shen/Bloomberg via Getty Images

4. Student sues JD.com’s billionaire CEO Richard Liu for alleged rape

Four months after local prosecutors decided not to press charges, a Chinese student has filed a lawsuit against JD.com founder and chief executive Richard Liu, alleging the billionaire businessman raped her in Minnesota back in August.

5. Lyric raises $160M Series B led by Airbnb

Lyric is a hospitality platform for business travelers. The company secures its own inventory in multi-family residential buildings through partnerships with landlords. It then brings in its designers to beautify the place and pack it full of amenities, including coffee from a local roaster and a fully functional kitchen.

6. Twitter to launch a ‘hide replies’ feature, plus other changes to its reporting process

Speaking of Twitter and its attempts to improve conversational health: Twitter announced the “Hide Replies” feature is set to launch in June. This puts the original poster in control of which tweets appear in a conversation thread.

7. Netflix added 9.6M subscribers in Q1, with revenue of $4.5B

The earnings letter also says Netflix will be testing something new in Q2 by releasing weekly top 10 lists of popular content for U.K. viewers: “For those who want to watch what others are watching, this may make choosing titles even easier.”

17 Apr 2019

Google Cloud, McDonald’s big tech acquisition, and motivating an engineering team

Our live conference call on Google Cloud Next

Last week at its conference in San Francisco, Google Cloud unveiled a bevy of new features, and we also got to hear for the first time from its head honcho, Thomas Kurian . TechCrunch was on the scene, with enterprise editor Frederic Lardinois and enterprise reporter Ron Miller covering all aspects of this major conference.

They conducted a live conference call with Extra Crunch members last week. In case you missed it, we’ve posted the transcript for members.

New Series: The Exit (this time with Dynamic Yield)

We talk a lot at Extra Crunch about starting companies up, but how do startups exit?

Lucas Matney, one of TechCrunch’s San Francisco-based writers, is developing a new series exploring why certain companies successfully exit. In this inaugural interview, he talks with venture capitalist Adam Fisher of Bessemer about his investment in Dynamic Yield, an adtech (but not really ad-based) startup that exited to (of all places) McDonald’s for a reported $300 million.

Lucas Matney: McDonald’s certainly seems like a bit of an unexpected buyer considering the early history of the company, but at what point in the company’s life cycle did it make sense that they would want to buy this tech? Or are you still a little surprised that this is the deal that went through?

Adam Fisher: Oh, yeah, with these kind of things you have to be skeptical until you see it in writing, and even then, skeptical. You know, as a VC, I’ve seen too many deals never mature to an offer, or even after the offer it’s pulled away. I mean, the less traditional the buyer, the more worried you have to be that something strange will happen, that somebody will change their mind, that somebody will get fired, that something unrelated will happen on the macro level.

So, you know, we were obviously skeptical until there was an offer.

But it was very clear, at a certain point, that the level of engagement was so high and so immense that they were serious, that this wasn’t just an idea that popped up after the had met Dynamic Yield, that they had been thinking about making such an acquisition for quite a while beforehand.

17 Apr 2019

How-to video maker Jumprope launches to leapfrog YouTube

Sick of pausing and rewinding YouTube tutorials to replay that tricky part? Jumprope is a new instructional social network offering a powerful how-to video slideshow creation tool. Jumprope helps people make step-by-step guides to cooking, beauty, crafts, parenting and more using voice-overed looping GIFs for each phase. And creators can export their whole lesson for sharing on Instagram, YouTube, or wherever.

Jumprope officially launches its iOS app today with plenty of how-tos for making chocolate chip bars, Easter eggs, flower boxes, or fierce eyebrows. “By switching from free-form linear video to something much more structured, we can make it much easier for people to share their knowledge and hacks” says Jumprope co-founder and CEO Jake Poses.

The rise of Snapchat Stories and Pinterest have made people comfortable jumping on camera and showing off their niche interests. By building a new medium, Jumprope could become the home for rapid-fire learning. And since viewers will have tons of purchase intent for the makeup, art supplies, or equipment they’ll need to follow along, Jumprope could make serious cash off of ads or affiliate commerce.

The opportunity to bring instruction manuals into the mobile video era has attracted a $4.5 million seed round led by Lightspeed Venture Partners and joined by strategic angels like Adobe Chief Product Officer Scott Belsky and Thumbtack co-founders Marco Zappacosta and Jonathan Swanson. People are already devouring casual education content on HGTV and the Food Network, but Jumprope democratizes its creation.

Jumprope co-founders (from left): CTO Travis Johnson and CEO Jake Poses

The idea came from a deeply personal place for Poses. “My brother has pretty severe learning differences, and so growing up with him gave me this appreciation for figuring out how to break things down and explain them to people” Poses reveals. “I think that attached me to this problem of ‘how do you organize information so its simple and easy to understand?’. Lots and lots of people have this information trapped in their heads because there isn’t an a way to easily share that.”

Poses was formerly the VP of product at Thumbtack where he helped grow the company from 8 to 500 people and a $1.25 billion valuation. He teamed up with AppNexus’ VP of engineering Travis Johnson, who’d been leading a 50-person team of coders. “The product takes people who have knowledge and passion but not the skill to make video [and gives them] guard rails that make it easy to communicate” Poses explains.

Disrupting incumbents like YouTube’s grip on viewers might take years, but Jumprope sees its guide creation and export tool as a way to infiltrate and steal their users. That strategy mirrors how TikTok’s watermarked exports colonized the web

How To Make A Jumprope.

Jumprope lays out everything you’ll need to upload, including a cover image, introduction video, supplies list, and all your steps. For each, you’ll record a video that you can then enhance with voice over, increased speed, music, and filters.

Creators are free to suggest their own products or enter affiliate links to monetize their videos. Once it has enough viewers, Jumprope plans to introduce advertising, but it could also add tipping, subscriptions, paid how-tos, or brand sponsorship options down the line. Creators can export their lessons with five different border themes and seven different aspect ratios for posting to Instagram’s feed, IGTV, Snapchat Stories, YouTube, or embedding on their blog.

“Like with Stories, you basically tap through at your own pace” Poses says of the viewing experience. Jumprope offers some rudimentary discovery through categories, themed collections, or what’s new and popular. The startup has done extensive legwork to sign up featured creators in all its top categories. That means Jumprope’s catalog is already extensive, with food guides ranging from cinnabuns to pot roasts to how to perfectly chop an onion. 

“You’re not constantly dealing with the frustration of cooking something and trying to start and stop the video with greasy hands. And if you don’t want all the details, you can tap through it much faster” than trying to skim a YouTube video or blog post, Poses tells me. Next the company wants to build a commenting feature where you can leave notes, substitution suggestions, and more on each step of a guide.

Poses claims there’s no one building a direct competitor to its mobile video how-to editor. But he admits it will be an uphill climb to displace viewership on Instagram and YouTube. One challenge facing Jumprope is that most people aren’t hunting down how-to videos every day. The app will have to work to remind users it exists and that they shouldn’t just go with the lazy default of letting Google recommend the videos it hosts.

The internet has gathered communities around every conceivable interest. But greater access to creation and consumption necessitates better tools for production and curation. As we move from a material to an experiential culture, people crave skills that will help them forge memories and contribute to the world around them. Jumprope makes it a lot less work to leap into the life of a guru.