Sony announces $10M fund to help indie game developers impacted by COVID-19

Though more people are stuck at home with their PCs and gaming consoles, times are still tough for small indie game developers that are often dependent on gaming conferences to both promote their titles and source investments and publishing deals.

Today, Sony announced that they had earmarked $10 million for a fund dedicated to helping out indie game developers that have seen negative impacts from the pandemic crisis. Earlier this month, Sony announced that they had formed a $100 million fund dedicated to COVID-19 relief, though that fund was more explicitly focused on healthcare workers and remote education.

Sony didn’t share much in the way of details around the fund, noting that more details would be available soon. Alongside the fund’s announcement, Sony shared that in order to encourage more PlayStation users to stay indoors, they were making both Uncharted: The Nathan Drake Collection and Journey available as free digital downloads on their digital store. The two bits of news are forming the basis for what PlayStation calls its “Play at Home Initiative.”

The titles will be available for free downloads from April 15 through May 5.


Source: Tech Crunch

Replace non-stop Zoom with remote office avatars app Pragli

Could avatars that show what co-workers are up to save work-from-home teams from constant distraction and loneliness? That’s the idea behind Pragli, the Bitmoji for the enterprise. It’s a virtual office app that makes you actually feel like you’re in the same building.

Pragli uses avatars to signal whether co-workers are at their desk, away, in a meeting, in the zone while listening to Spotify, taking a break at a digital virtual water coooler or done for the day. From there, you’ll know whether to do a quick ad hoc audio call, cooperate via screenshare, schedule a deeper video meeting or a send a chat message they can respond to later. Essentially, it translates the real-word presence cues we use to coordinate collaboration into an online workplace for distributed teams.

“What Slack did for email, we want to do for video conferencing,” Pragli co-founder Doug Safreno tells me. “Traditional video conferencing is exclusive by design, whereas Pragli is inclusive. Just like in an office, you can see who is talking to who.” That means less time wasted planning meetings, interrupting colleagues who are in flow or waiting for critical responses. Pragli offers the focus that makes remote work productive with the togetherness that keeps everyone sane and in sync.

The idea is to solve the top three problems that Pragli’s extensive interviews and a Buffer/AngelList study discovered workers hate:

  1. Communication friction
  2. Loneliness
  3. Lack of boundaries

You never have to worry about whether you’re intruding on someone’s meeting, or if it’d be quicker to hash something out on a call instead of vague text. Avatars give remote workers a sense of identity, while the Pragli water cooler provides a temporary place to socialize rather than an endless Slack flood of GIFs. And because you clock in and out of the Pragli office just like a real one, co-workers understand when you’ll reply quickly versus when you’ll respond tomorrow unless there’s an emergency.

“In Pragli, you log into the office in the morning and there’s a clear sense of when I’m working and when I’m not working. Slack doesn’t give you a strong sense if they’re online or offline,” Safreno explains. “Everyone stays online and feels pressured to respond at any time of day.”

Pragli co-founder Doug Safreno

Safreno and his co-founder Vivek Nair know the feeling first-hand. After both graduating in computer science from Stanford, they built StacksWare to help enterprise software customers avoid overpaying by accurately measuring their usage. But when they sold StacksWare to Avi Networks, they spent two years working remotely for the acquirer. The friction and loneliness quickly crept in.

They’d message someone, not hear back for a while, then go back and forth trying to discuss the problem before eventually scheduling a call. Jumping into synchronous communicating would have been much more efficient. “The loneliness was more subtle, but it built up after the first few weeks,” Safreno recalls. “We simply didn’t socially bond while working remotely as well as in the office. Being lonely was de-motivating, and it negatively affected our productivity.”

The founders interviewed 100 remote engineers, and discovered that outside of scheduled meetings, they only had one audio or video call with co-workers per week. That convinced them to start Pragli a year ago to give work-from-home teams a visual, virtual facsimile of a real office. With no other full-time employees, the founders built and released a beta of Pragli last year. Usage grew 6X in March and is up 20X since January 1.

Today Pragli officially launches, and it’s free until June 1. Then it plans to become freemium, with the full experience reserved for companies that pay per user per month. Pragli is also announcing a small pre-seed round today led by K9 Ventures, inspired by the firm’s delight using the product itself.

To get started with Pragi, teammates download the Pragli desktop app and sign in with Google, Microsoft or GitHub. Users then customize their avatar with a wide range of face, hair, skin and clothing options. It can use your mouse and keyboard interaction to show if you’re at your desk or not, or use your webcam to translate occasional snapshots of your facial expressions to your avatar. You can also connect your Spotify and calendar to show you’re listening to music (and might be concentrating), reveal or hide details of your meeting and decide whether people can ask to interrupt you or that you’re totally unavailable.

From there, you can by audio, video or text communicate with any of your available co-workers. Guests can join conversations via the web and mobile too, though the team is working on a full-fledged app for phones and tablets. Tap on someone and you can instantly talk to them, though their mic stays muted until they respond. Alternatively, you can jump into Slack-esque channels for discussing specific topics or holding recurring meetings. And if you need some down time, you can hang out in the water cooler or trivia game channel, or set a manual “away” message.

Pragli has put a remarkable amount of consideration into how the little office social cues about when to interrupt someone translate online, like if someone’s wearing headphones, in a deep convo already or if they’re chilling in the microkitchen. It’s leagues better than having no idea what someone’s doing on the other side of Slack or what’s going on in a Zoom call. It’s a true virtual office without the clunky VR headset.

“Nothing we’ve tried has delivered the natural, water-cooler-style conversations that we get from Pragli,” says Storj Labs VP of engineering JT Olio. “The ability to switch between ‘rooms’ with screen sharing, video and voice in one app is great. It has really helped us improve transparency across teams. Plus, the avatars are quite charming as well.”

With Microsoft’s lack of social experience, Zoom consumed with its scaling challenges and Slack doubling down on text as it prioritizes Zoom integration over its own visual communication features, there’s plenty of room for Pragli to flourish. Meanwhile, COVID-19 quarantines are turning the whole world toward remote work, and it’s likely to stick afterwards as companies de-emphasize office space and hire more abroad.

The biggest challenge will be making comprehensible enough to onboard whole teams such a broad product encompassing every communication medium and tons of new behaviors. How do you build a product that doesn’t feel distracting like Slack but where people can still have the spontaneous conversations that are so important to companies innovating?,” Safreno asks. The Pragli founders are also debating how to encompass mobile without making people feel like the office stalks them after hours.

“Long-term, [Pragli] should be better than being in the office because you don’t actually have to walk around looking for [co-workers], and you get to decide how you’re presented,” Safreno concludes. “We won’t quit, because we want to work remotely for the rest of our lives.”


Source: Tech Crunch

Price Technologies adds product availability feature for items experiencing COVID-19 shortages

Price Technologies, the operator of the comparison shopping website Price.com and its related browser extension, is adding a feature to show product availability for a few essential items that have had supply issues caused by the COVID-19 outbreak in the U.S.

Products like aspirin, acetaminophen, facial tissues, hand sanitizer, ibuprofen, rice, soap, soup, toilet paper and other items are going to be shown on the company’s website with their availability at online vendors.

“We’ve been tracking how essential COVID-19 supplies are becoming difficult to find online,” the company wrote in a blogpost. “Therefore, we are now updating the product availability in real-time for these essential items. We are launching an early version of this feature and plan to continue to expand/refine this feature’s functionality in the following weeks.”

Launched in 2016, Price.com is somewhat of a competitor to services like Honey, the online discount shopping service acquired by PayPal last year.

According to Crunchbase, the company’s backed by a slew of early-stage investors, including Dave McClure, (the founder of 500 Startups), Plug and Play Ventures, Social Capital and VentureSouq.


Source: Tech Crunch

Frank raises $5M more in its quest to get students max financial aid

Frank, a New York-based student-facing startup, has raised $5 million in what the company described as an “interim strategic round” led by Chegg, a public edtech company. According to Frank founder and CEO Charlie Javice, previous investors Aleph and Marc Rowan took part in the round alongside new investor GingerBread Capital.

The education funding-focused startup last raised known capital in December of 2017, when it closed a $10 million Series A. Frank raised a seed round earlier that same year worth $5.5 million.

According to Javice, her firm closed its round in early March, before the recent market carnage. Bearing in mind that there is always lag between when a funding round is closed and when it is announced, the new Frank round is on the fresher side of things. Most rounds are a bit more like Shippo’s recent investment (closed in December, announced in April) than Podium’s recent deal, which it started raising in mid-February of this year.

Timing aside, what Frank is doing is interesting, so let’s talk about its business, how it approached 2019 and how it’s faring in today’s changed market.

Everyone’s broke

To help keep student debt low, Frank is a bit akin to TurboTax for college money, as TechCrunch wrote when covering its Series A, helping students get through a thicket of forms and aid to collect as much aid as possible while avoiding borrowing.

American higher education is too expensive, and applying for financial help is irksome and byzantine. I can safely report that sans quoting an expert, as I had to go through it as a student and only finished paying my student loans last July.

Frank wants to help make college more affordable, with the company noting in a call with TechCrunch that there’s been a good number of companies working to help students service debt in a less expensive way after they’ve hired the money; it wants to help students avoid taking on so much red ink in the first place.

According to Javice, lots of students fail to finish signing up for federal aid programs, and some students wind up dropping out of programs before finishing them, leaving them saddled with debt but no degree. That’s a hell of a trap to wind up in, as student loans are the barnacles of the financial world — incredibly hard to get rid of.

According to Javice, Frank was a little early to rethinking its own growth/profit trade-off than the rest of the startup world, which woke up when WeWork filed to go public and was quickly booed off Wall Street. In mid-2019, Frank slowed growth to get closer to the margins it wanted. (Thinking out loud, this is probably how the startup managed to survive so long off its December 2017 Series A.)

Indeed, according to Frank’s CEO, it was in a comfortable cash position before this round, which she described as more a vote of confidence than a round of necessity.

Which brings us to today, and the new, COVID-19 world. In an email to TechCrunch, Javice said that “like everyone else,” her company is “adjusting to the new realities.” She added that college and university attendance “has typically been countercyclical” and that her company is “seeing a large demand for higher education and specifically financial aid.”

If the new economy winds up creating a little tailwind for Frank, it won’t be the only startup to accrue help; Slack and Zoom and other remote work-friendly companies have also seen their fortunes turn for the better in recent weeks. And now with $5 million more on hand, it can certainly meet new demand.


Source: Tech Crunch

Driverless vehicles in the age of the novel coronavirus

The COVID-19 pandemic has led to different outcomes for different businesses. While some have stood to benefit (think Zoom, Facebook and bidet startup Tushy), others have been hit hard and laid off employees in order to survive. But there are some that fall somewhere in the middle. Autonomous driving startup Voyage believes it is not explicitly benefiting, but it’s not at risk of going under either, says CEO Oliver Cameron.

Cameron’s response to the pandemic centers around three areas: passenger operations, technology and company-building. While operations have halted, Voyage is moving forward with its technology and has shifted the company to a 100% remote-work environment. With a post-pandemic world in mind, Cameron envisions more demand for autonomous vehicles.

Before COVID-19 was declared a pandemic, Voyage had already paused its consumer operations, which primarily serve seniors in retirement communities.

“We did that because, obviously, seniors are disproportionately impacted by this and it would be horrific for Voyage to be patient zero in the retirement community and this is something we were operating out of an abundance of caution,” says Cameron. “So we paused our operations from a consumer service perspective very early and we won’t open those up for quite some time. It’s tough to say at what particular point because it seems like the consensus is it will be a progressive opening up of the economy, meaning some populations will be fine to go back to work and there will be some that are significantly impacted, like seniors, that are effectively locked down for an extended period of time. So we’re not in a rush to get that back up and running until we hear from the community itself that it’s OK to do that.”

Despite the hiatus in operations, Voyage is still running simulations and using a variety of automated testing tools to determine if it is making progress. For example, Voyage uses automation to test for regressions in perception. A challenge in perception is false positives and false negatives — that is, seeing something that isn’t there or not seeing something that is there, Cameron explains.

“And we have this pretty cool tool that enables us to monitor with each perception release if we are seeing regressions based on perception performance in the past,” he says. “We don’t need to be there in the real world to see that. We can just tell instantaneously if that is the case.”

Voyage also has a way of testing different permutations of environments to see how its planning and prediction software can handle different scenarios. Then, of course, it uses more traditional simulation tools provided by Applied Intuition.

“But we don’t fool ourselves into thinking that simulation or automated testing makes up for all that real-world testing brought to the table,” Cameron says. “It doesn’t, and there’s definitely going to be some time that we have to spend once we do get back on the road, fixing issues that we just couldn’t find as a result of not being on the road.”

From a company and personnel standpoint, Voyage has also transitioned into a remote-working company. It hasn’t been a distraction, according to Cameron, since Voyage embraced remote work some time ago.

“We’re lucky that we are able to weather the storm,” Cameron says. “We’ve got a good chunk of cash in the bank and, luckily, we raised at a reasonable time — at the end of last year — so we’re going to be fine.”

Many companies in the tech ecosystem have been forced to lay off employees amid the COVID-19 pandemic. Voyage, however, will seemingly not be one of them. As Cameron noted, Voyage raised a $31 million round in September.

“There’s been a lot of discussion about great companies will weather this and the companies that were going to die anyway will die. I’m sure there is some truth to that, but some of it is just luck. Some of it is that you raised at a time you didn’t know was important, but turned out to be quite important. And, you know, our burn has always been low compared to others in the space. For us, we’ve always been frugal, and it turns out that’s quite important in a pandemic.”

Despite Voyage’s use of simulation, its automated testing and healthy bank account, the pandemic is still a major complication.

“I think it’s got to set everyone back,” Cameron says. “I think there is a spectrum and there are companies that stand to benefit from this. We’ve seen with Zoom they stand to benefit from this. Remote working tools, they stand to benefit from this. And then you go all the other way to the end of the spectrum — those that are actively impacted like airlines, ridesharing, scooters and I believe we’re somewhere in the middle. The reason we’re in the middle is because in a post-virus world, I’m pretty sure behaviors change. It’s TBD on how long those behaviors last, but it’s clear that behaviors are going to change.”

In that world where behaviors change, Cameron bets that driverless cars will add more value than traditional ride-hailing services. In a world where people may still be hesitant to get into a car with strangers, a driverless car would mitigate those fears, he says.

“In the short term, everyone’s impacted,” he says. “There’s a slowdown in everything. In the medium and long term, we’ll be fine because I believe the demand is still there for driverless vehicles and even more so for those disproportionately impacted.”


Source: Tech Crunch

Ford partners with Thermo Fisher on COVID-19 test kits, expands production to face masks, gowns

Ford has expanded its plan to produce critical medical equipment and supplies, including a new effort to make reusable gowns from airbag materials as well as a partnership with scientific instrument provider Thermo Fisher Scientific to ramp up production of COVID-19 collection kits to test for the virus.

This broader plan highlights the latest effort by automakers and medical device manufacturers to help ease a shortage of equipment and supplies such as face shields, face masks, protective gowns and ventilators, a medical device that is used in the treatment of COVID-19, a disease caused by the coronavirus.

Ford announced in March a partnership with 3M to build Powered Air-Purifying Respirators (PAPRs), as well as a separate effort to produce more than 3 million face shields at its factory in Plymouth, Mich.

On Monday, Ford provided an update on its 3M partnership and laid out new plans to produce other medical equipment. Ford will start Tuesday producing PAPRs — respirators used by healthcare workers that filter out contaminants in the air — at its Vreeland facility near Flat Rock, Mich. Paid United Auto Worker volunteers will be working to assemble the PAPR devices. Ford said it expects to be able to make 100,000 PAPR devices.

Ford to make Powered Air-Purifying Respirator

Ford will start producing an all-new PAPR design to help protect health care professionals on the front lines fighting COVID-19

“I think our immediate focus is on the surge need that is really at the end of April, May and June, so we’re focusing on that time frame,” Jim Baumbick, vice president of Ford Enterprise Product Line Management said during a call with reporters Monday. “What I can also say is we have very clear signals working with our partners that the demand is far outpacing the supply of this critical equipment. We know that there’s incredible demand and need for this during this short time horizon.”

Ford engineers have also been working to increase the output of PAPRs and N95 respirators at 3M’s U.S.-based manufacturing facilities. 3M has doubled its N95 production to more than 1.1 billion annually and has plans to double that again in the next 12 months, according to Mike Kesti, the global technical director of the personal safety division at 3M.

In addition to its previously announced plans to make face shields, Ford outlined three additional efforts, including face mask and gown production, as well as the partnership with Thermo Fisher Scientific.

The company has started to produce face masks for its own workers to use throughout its global operations. The face masks, which are being made at Ford’s Van Dyke Transmission Plant in Sterling Heights, Mich., were developed in collaboration with the UAW and are being made for internal use to lessen the burden on an already squeezed supply chain. Ford said it is looking to have the masks certified for medical use.

Ford has also tapped supplier Joyson Safety Systems to make reusable gowns from airbag material. The automaker worked with a local hospital in Michigan to develop a pattern for the gowns. The airbag material used for the gown is nylon-based and has built-in coating.

“This is really a great find that we could take something that we already knew how to produce and then turn that into isolation gowns, and they are washable,” said Marcy Fisher, Ford director of global body exterior and interior engineering.

Ford-supplier Joyson Safety Systems will cut and sew 1.3 million gowns by July 4. The gowns are self-tested to federal standards and are washable up to 50 times, according to Ford.

Finally, the company said it will help Thermo Fisher Scientific expand production of COVID-19 collection kits. Ford engineers at its Kansas City Assembly Plant are helping set up additional collection kit production machinery. These engineers are also helping Thermo Fisher adapt machinery that currently runs glass vials for other products to run plastic vials required in drive-through coronavirus test collection.


Source: Tech Crunch

Hallway creates a ‘virtual break room’ for remote workers using scheduled video chats

The coronavirus outbreak has forced millions of U.S. employees to work from home — many for the first time. But remote work can be lonely and isolating, as people feel disconnected from their team and co-workers due to the lack of face-to-face conversations. That’s where the new startup, Hallway, aims to help. The service re-creates the break-room experience and the serendipity of random hallway conversations with its new app aimed at Slack users.

The app allows companies to schedule 10-minute video chats within Slack channels, where colleagues can catch up with one another outside of more formal web meetings.

The startup was co-founded by Parthi Loganathan, a former product manager at Google who launched Google Chat and Google Go; and Kunal Jasty, a former associate at private equity firm Insight Partners.

The two were originally working on a product called Across that would help teams provide customer support in shared Slack channels. But when the shelter-in-place was brought into effect in San Francisco, things quickly changed.

“It forced a lot of companies that were unprepared for remote work to go remote overnight,” Loganathan explains. Meanwhile, his roommate complained he was going stir-crazy working from home and missed talking to his team.

“Hallway seemed like a simple and fun way to tackle that problem, so we built it in a couple of days,” Loganathan says.

The founders already had first-hand experience with the challenges involved in dealing with remote teams, as half their team was based in India. And they had experience building Slack apps, not only with Across but with others similar to Hallway, as well.

As a result, Hallway was built quickly, with only four days in between the idea and the first user, Loganathan says.

To use Hallway, you can either add it to Slack from the Hallway website or from the Slack app directory. (To install it, you may need admin approval if you don’t have permission to add apps to your Slack workspace.)

There’s no front-end for the app — everything is user-facing in Slack, including the login process, onboarding experience and the settings user interface. Once installed, you’re given the onboarding instructions over direct message within Slack. You can then invite the Hallway bot to any Slack channel by typing /invite @hallway. This kicks off the bot to start creating break rooms on a recurring basis automatically, which are announced by way of an @here message.

By default, Hallway’s break rooms are scheduled every two hours between 9 AM and 6 PM Monday through Friday, but users can adjust the timezone and adjust the frequency of the breaks by typing in /hallway in a Slack channel to customize the settings.

You can opt to use your own Zoom or Google Meet links with Hallway. But the experience works better with Hallway’s timed video chat rooms, which are powered by daily.co’s video infrastructure.

The service itself is free for up to two slack channels, but only offers 10 of its timed video chats before you have to either switch to using your own web meeting links or have to upgrade.

Hallway’s “team” pricing plan for larger companies supports up to five channels and offers an unlimited number of video chat rooms, as well as the customization options, for $30 per month. For more than five channels, enterprise pricing is available upon request.

Since launching just a few weeks ago, Hallway has quickly grown its customer base.

The service is now being used by more than 170 teams at companies like Nextdoor, Productboard, Bank Novo, Pivotal, Coursera and others. The majority of users are on the free plan for now. However, companies in need of an upgrade can access more flexible pricing if users are willing to share the service with friends.

For the time being, the co-founders want to focus on improving the Hallway experience in Slack, but they’re already thinking about what comes next.

“We’re solving the problem of keeping teams connected and reducing workplace loneliness while working remotely. Right now, we’re improving the core experience of spontaneous timed video chats and giving users more options to customize them,” says Loganathan. “We’re looking into specific use cases we can help companies with, like team building and employee onboarding for remote teams,” he notes.

The company may also consider a solution for Microsoft Teams in the future, he says.

Hallway has raised an undisclosed amount of pre-seed funding.


Source: Tech Crunch

Tech for good during COVID-19: Pivots and partnerships to help people deal

Some of us have learned how to be uniquely scrappy during this pandemic. I’m talking socks as masks and chickpea water as a vegetarian egg-white replacement type of scrappy.

And you will learn in this week’s installment of Tech For Good startups are no exception. Companies around the world are pivoting and partnering their way into helping us navigate the  COVID-19 pandemic. Below is a list of some recent partnerships that caught our eyes, as well as other goodness from private companies.


 

From greeting cards to virtual therapy

Ali O’Grady founded greeting-card startup Thoughtful Human in 2017. The greeting cards tackle difficult topics, such as cancer, grief and, more recently, quarantine and the pandemic. Thoughtful Human has partnered with BetterHelp Therapy to offer a month of free virtual therapy through phone or text.

Zira wants to help you bounce back if you were laid off

Zira is an automated workforce solution to help with shift schedules and team communication. Now, it launched a free tool called Bounce Back to help those laid off due to COVID-19. The application chiefly teaches users how to navigate unemployment, curated by location. It also creates a community for users to stay in touch with former employers, and has a job marketplace.

Yext goes up State

Yext, a site search tool, has partnered with the US Department of State to create a COVID-19 informational hub to disseminate information about travel alerts. In the last month, Yext has developed sites for the State of New Jersey and the State of Alabama.

An alternative to a good ol’ restaurant menu

My Menu, which traditionally offered a digital tablet menu platform to restaurants, is now giving away its underlying technology to help restaurants become online-friendly overnight. Using My Menu technology, restaurants can create a menu that pops up when customers scan a QR code on their phones. It will help restaurants make their menus more accessible.

Creativity using the cloud

DigitalOcean, a cloud provider, created a hub for developers to share projects aimed at helping people deal with the pandemic. Projects that have sprouted up as a result include an app that lets people anonymously report their health conditions to pulsecheck the spread across the world, and a remote learning group of Kenyan primary school teachers.

Founder therapy for free

Betaworks is launching a free, 6-week, peer-to-peer mentorship program to connect founders and company leaders in mentor-led support groups. The application deadline is April 13, and participants will be chosen on a first-come, first-served basis.

#MaskUp

Janelle M. Jimenez, the founder and CEO of sustainable clothing startup Stellari, is using her startup capital to work with Los Angeles manufacturers to create masks. She has invested $15,000 of seed money into partnerships with factories, and needs $10,000 to produce cloth masks at scale. She plans to donate the masks at cost and support the local garment industry at the same time. The effort has raised nearly $24,000 on Indiegogo.

Coders unite to make websites COVID-19 friendly

Coding Dojo has launched an initiative to connect its alumni group of coders to small businesses that need website development. Coders will take on projects, for no charge, like creating a website for that corner bodega or adding a delivery feature to existing websites.

As the marathon gets canceled, Boston’s new stride

Tom O’Keefe is the founder of StrideForStride, which buys race bibs for low-income runners from around the world, ranging from Guatemala, Nicaragua, El Salvador, Brazil, Chile, Cuba, Jamaica, and the US. Due to COVID-19, they lost a fundraiser at hotels and donations from restaurants and Sam Adams. Stride plans to host running clubs around various businesses and bars in Boston once everything re-opens, and in the meantime has launched a website DownloadBoston.com to highlight local businesses.

Bonus round

A group of New Yorkers has launched a challenge called #InMyScrubs to raise money to send meals from local restaurants to feed health care workers at critical-need hospitals. While this isn’t a tech initiative, it is heartwarming. The idea is to post pictures of yourself on Instagram in home “scrubs” like sweatpants and athleisure as an act of solidarity with those in their hospital scrubs. The challenge has raised nearly $68,000.


Source: Tech Crunch

Startups Weekly: Where social startups will get funding in the future

[Editor’s note: Want to get this free weekly recap of TechCrunch news that startups can use by emailSubscribe here.] 

While consumer tech has matured as a startup category in recent years, many investors continue to be bullish on specific trends like online gaming, voice, and the unbundling of platforms in favor of focused social networks. That’s the key takeaway from a survey that Josh Constine and Arman Tabatabai did this week with 16 of the most active investors in key social product categories over on Extra Crunch. Here’s an excerpt of the responses, from Olivia Moore and Justine Moore of CRV:

  • “Unbundling of YouTube.” You can build a big company by targeting a vertical within YouTube with a product that has better features and more opportunities for creator monetization. Twitch is a great example of this! We’re also watching early-stage companies like Supergreat (in beauty) and Tingles (ASMR).

  • Voice as a social medium. Voice continues to pick up steam as a broadcast medium via podcasting, but we haven’t seen a lot in social or P2P voice yet. We think a successful platform will leverage the fact that voice content can be created and consumed while doing other things. We’re big fans of companies like TTYL and Drivetime that are making strides here!

  • Flexible digital identities. Gen Zers are online constantly but have different preferences across platforms/friend groups about how they want to “show up” digitally. The rise of “Finsta” accounts is one good example of this. Companies like Facemoji already help users create social content using a curated digital avatar — we’re excited to see what else founders build here!

  • Synchronous, shared mobile experiences. We’re bullish on apps that connect users in real time to have a shared social experience. Most apps now are “single-player,” which creates scroll fatigue. HQ Trivia was an early example more on the entertainment side, while companies like Squad help users browse the internet and watch TikTok together.

Other respondees include: Connie Chan (Andreessen Horowitz). Alexis Ohanian (Initialized Capital), Niko Bonatsos (General Catalyst), Josh Coyne (Kleiner Perkins), Wayne Hu (Signal Fire), Alexia Bonatsos (Dream Machine), Josh Elman (angel investor), Aydin Senkut (Felicis Ventures), James Currier (NFX), Pippa Lamb (Sweet Capital), Christian Dorffer (Sweet Capital), Jim Scheinman (Maven Ventures), Eva Casanova (Day One Ventures) and Dan Ciporin (Canaan).

EC subscribers please note: a second part of this survey will be running this coming week, focused specifically on social investing in the COVID-19 era.

Are VCs investing — or maintaining?

Speaking of financing, who is actually writing checks right at this moment in time?

“I’ve seen a lot of VCs talking about being open for business,” Eniac Ventures founding partner Hadley Harris proclaimed on a fundraising-trend panel this week, “and I’ve been pretty outspoken on Twitter that I think that’s largely bullshit and sends the wrong message to entrepreneurs.” Instead, as Connie Loizos covered for us on TechCrunch, he said he didn’t have time to talk to more founders because he was so busy helping existing portfolio companies.

Not every investor agrees with that viewpoint —  VC Twitter features many an anecdote about fresh companies getting funding. 

Let’s just hope that both things are true, because it is already rough out there. 

Does your startup qualify for a PPP loan? (And should you apply?)

Two debates have been raging around government support for startups. First, the big, messy new Paycheck Protection Program — designed to cover expenses for small businesses — does seem to be somewhat available to startups, based on revisions published by the Small Business Administration late last week. But things get complicated quick depending on your fundraising and cap table, as Jon Shieber covered last weekend for TechCrunch. Venture firms typically have controlling interests in a portfolio of companies that total more than 500 people, so if such a firm also has a controlling interest in your startup, you may not be eligible. Even if the VC stake is under 50%, preferred terms that came with the fundraising may your application afoul of the rules.

To help founders work through their own situations faster, startup lawyer William Carleton wrote a quick guide for Extra Crunch. Here’s where he says you need to start:

Do you have a minority investor which controls protective covenants in your charter, or which controls a board seat afforded certain veto rights on board decisions? If the answer to either fork of that question is “yes,” you almost certainly have confirmed that you will need to amend your charter and/or other governing documents before proceeding with a PPP application.

The other aspect, of course, is whether startups should be applying for this in the first place. Congress broadly intended the money to go towards small to medium sized businesses, most of whom would never be considered for venture. Shieber’s article is full of comments on that topic, if you feel like weighing in….

The commercial real estate comeuppance

If you’re like me, and you’ve started companies in the Bay Area and struggled to find office space you could afford, enjoy this bit of schadenfraude as you plot your remote-first future. Because the commercial real estate industry is facing an existential crisis after many, many years of rent-seeking upon the Silicon Valley tech economy (and everyone else).

Connie explored this exploding topic with a range of startups, investors and CRE agents in a big feature for TechCrunch this week. One analyst “expects the market to come down by ‘at least 10% and probably 20% to 30%’ from where commercial space in San Francisco has priced in several years, which is $88 per square foot, according to CBRE. Driving the expected drop is the 2 million square feet that will come onto the market in the city as soon as it’s possible — space that companies want to get off their books.”

It’s quite possible to imagine even bigger declines, given the broader hits that most any possible tenant is also taking to their budgets. Who knows, maybe this whole process will even help make the Bay Area and other wealthy metros a little more affordable again.

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Edtech gets hot again, according to investors

After lots of money and lots of struggle over the past decade, edtech is suddenly hot again thanks to the pandemic. Natasha Mascaranhas has been covering the trend recently, and dug in this week with a big investor survey on the category for Extra Crunch.

“One investor pivoted from spending a third of their time looking at edtech companies to devoting almost all their time to the sector,” she tells me. “Another, who has been bullish for years on edtech, says its business as usual for them, but that competition may arise. An ed-tech focused fund thinks the sector has been underfunded for a while, so the moment of reckoning has begun.”

Respondents include:

Across the week:

TechCrunch

Economists haven’t thrown out the models yet (but they will)

Five CEOs on their evolution in the femtech space

Equity Monday: Hunting for green shoots amid the startup data

Extra Crunch

How SaaS startups should plan for a turbulent Q2

Fintech’s uneven new reality has helped some startups, harmed others

Fast-changing regulations give virtual care startups a chance to seize the moment

Twilio CEO Jeff Lawson on shifting a 3,000-person company to fully remote

Amid unicorn layoffs, Boston startups reflect on the future

#EquityPod

From Alex:

We started with a look at Clearbanc  and its runway extension not-a-loan program, which may help startups survive that are running low on cash. Natasha covered it for TechCrunch. Most of us know about Clearbanc’s revenue-based financing model; this is a twist. But it’s good to see companies work to adapt their products to help other startups survive.

Next we chatted about a few rounds that Danny covered, namely Sila’s $7.7 million investment to help build technology that could take on the venerable and vulnerable ACH, and Cadence’s $4 million raise to help with securitization. Even better, per Danny, they are both blockchain-using companies. And they are useful! Blockchain, while you were looking elsewhere, has done some cool stuff at last.

Sticking to our fintech theme — the show wound up being super fintech-heavy, which was an accident — we turned to SoFi’s huge $1.2 billion deal to buy Galileo, a Utah-based payments company that helps power a big piece of UK-based fintech. SoFi is going into the B2B fintech world after first attacking the B2C realm; we reckon that if it can pull the move off, other financial technology companies might follow suit.

Tidying up all the fintech stories is this round up from Natasha and Alex, working to figure out who in fintech is doing poorly, who’s hiding for now, and who is crushing it in the new economic reality.

Next we touched on layoffs generally, layoffs at ToastAngelList, and not LinkedIn — for now. Per their plans to not have plans to have layoffs. You figure that out.

And then at the end, we capped with good news from Thrive and Index. We didn’t get to Shippo, sadly. Next time!

Listen to the full thing here!


Source: Tech Crunch

Canalys finds PC demand surged in Q1, but shipments lagged due to supply issues

As workers moved from office to home and students moved to being educated online, demand for new PCs surged in Q1, but Canalys found that shipments actually dropped 8% in spite of this, due to COVID-19 related supply chain problems.

The 8% drop was the worst since 2016 when shipments dropped 12%, according to the firm. Companies were looking to get new machines into the hands of employees who normally worked on desktop machines in the office, while parents were buying machines for children suddenly going to school online.

Rushabh Doshi, research director at Canalys says that products were flying off the shelves in Q1, but the PC makers couldn’t keep up with demand as supplies were limited due to a number of factors.

“…PC makers started 2020 with a constrained supply of Intel processors, caused by a botched transition to 10nm nodes. This was exacerbated when factories in China were unable to reopen after the Lunar New Year holidays.

“The slowdown in supply met with accelerated demand, as businesses were suddenly forced to equip a newly remote workforce, placing urgent orders for tens of thousands of PCs. Children, too, needed their own PCs, as schools closed and lessons went online,” Doshi explained in a statement.

Lenovo and HP owned the lion’s share of the PC market in Q1 with 23.9% and 21.8% share respectively. Dell was in third with 19.6%. Apple was well behind in fourth place with just 6% of worldwide market share.

Only Dell projected positive growth with a modest 1.1% annual rate. All others were projected to be negative with Apple projecting the sharpest drop at -21%.

The good news is that from a revenue perspective, at least for the short term, these companies could command higher prices due to high demand and low supply, but overall the year looks bleak for PC makers, as Canalys predicts the rest of the year will see a further drop in sales as companies cut back on purchases, and consumers also likely limit purchases with so much economic uncertainty and demand satisfied for the short term.


Source: Tech Crunch