Scale to launch a mapping product to address the changing needs of its autonomous driving customers

Solving the varied challenges that arise in autonomous driving is an incredibly complex task, but even attempting to get started means ensuring you have quality data that’s accurate and well-annotated. That’s where Scale comes in, having identified early on that the AV industry would require annotation of huge swaths of data, including specialized LiDAR imaging. Now, co-founder and CEO Alex Wang tells me at TC Sessions: Mobility 2021 (ExtraCrunch subscription required) that it’s moving into mapping with a new product that’s coming later this month.

“Our role has continued to evolve,” Wang said, regarding how it works with its transportation industry partners, which include Toyota among many others. “You know, as we work with our customers, and we solved one problem for them around data and annotational data labeling, you know, it turns out they they come to us with other problems that we can then help solve as well around data management, we launched a product called Nucleus for that. A lot of our customers are thinking a lot about mapping, and how to deploy with more robust maps. So we’re built a product, I’m going to announce that probably later this month, but we’re helping to address that problem with our customers.”

Despite my prodding, Wang wouldn’t provide any specifics, but he did go into more detail about the challenges of mapping, and what’s lacking in existing maps available to companies working on integrating those with AV systems that include other signals, like sensor fusion and vehicle-to-infrastructure components.

“I think a big question for the overall space has been that historically, the industry has relied very, very heavily on mapping — we relied very, very heavily on very highquality, high definition maps,” he said. “The tricky thing about the world is that sometimes these maps are wrong, and how do you deal with that? […] How do you deal with kind of this challenge of robustness, or updates. Even, if you think about it, Google Maps, which is the best mapping infrastructure in the world, by a huge margin, you know they don’t update quickly enough for [human] drivers.”

Wang said that the challenge isn’t all that different from the one that Scale has been actively solving for most of its existence, which is that of the data flywheel. With autonomous driving, it’s of utmost importance to be able to collect and annotate data quickly and accurately, which results in ever better collection and annotation of future data, and more reliability for the assumptions the system is making about its environment.

“Figuring out how to deal with the real-time nature of how the world changes, is one really big, one really big component,” he said. While we still have to wait to see what exactly Scale has planned, it seems safe to assume that it’s all about building confidence in maps and mapping accuracy as a key ingredient in whatever they launch.


Source: Tech Crunch

The fintech endgame: New supercompanies combine the best of software and financials

If money is the ultimate commodity, how can fintechs — which sell money, move money or sell insurance against monetary loss — build products that remain differentiated and create lasting value over time?

And why are so many software companies — which already boast highly differentiated offerings and serve huge markets— moving to offer financial services embedded within their products?

A new and attractive hybrid category of company is emerging at the intersection of software and financial services, creating buzz in the investment and entrepreneurial communities, as we discussed at our “Fintech: The Endgame” virtual conference and accompanying report this week.

These specialized companies — in some cases, software companies that also process payments and hold funds on behalf of their customers, and in others, financial-first companies that integrate workflow and features more reminiscent of software companies — combine some of the best attributes of both categories.

Image Credits: Battery Ventures

From software, they design for strong user engagement linked to helpful, intuitive products that drive retention over the long term. From financials, they draw on the ability to earn revenues indexed to the growth of a customer’s business.

Fintech is poised to revolutionize financial services, both through reinventing existing products and driving new business models as financial services become more pervasive within other sectors.

The powerful combination of these two models is rapidly driving both public and private market value as investors grant these “super” companies premium valuations — in the public sphere, nearly twice the median multiple of pure software companies, according to a Battery analysis.

The near-perfect example of this phenomenon is Shopify, the company that made its name selling software to help business owners launch and manage online stores. Despite achieving notable scale with this original SaaS product, Shopify today makes twice as much revenue from payments as it does from software by enabling those business owners to accept credit card payments and acting as its own payment processor.

The combination of a software solution indexed to e-commerce growth, combined with a profitable payments stream growing even faster than its software revenues, has investors granting Shopify a 31x multiple on its forward revenues, according to CapIQ data as of May 26.

How should we value these fintech companies, anyway?

Before even talking about how investors should value these hybrid companies, it’s worth making the point that in both private and public markets, fintechs have been notoriously hard to value, fomenting controversy and debate in the investment community.


Source: Tech Crunch

Course Hero acquires LitCharts, founded by the creators of SparkNotes

I’ll admit it: I was the student that tipped the teacher off that half of our English class, including me, was using SparkNotes to “read” Twelfth Night by Shakespeare, instead of actually reading the text itself. The site, which offered summaries of books on a chapter-by-chapter basis, was the best way to review novels before a quiz — or, was the best last-minute savior if you procrastinated too much and never got around to opening the book in the first place.

History in mind, it makes sense that the creators of everyone’s favorite procrastination tool, SparkNotes, are getting noticed by an edtech unicorn. LitCharts, an offshoot of SparkNotes, got scooped up today by a newly minted edtech unicorn, Course Hero. The price of the deal was undisclosed. That said, Course Hero last raised an $80 million Series B in August 2020, and assumedly a portion of that check went to this deal.

The creators of SparkNotes, Ben Florman and Justin Kestler, created LitCharts as an extension of their initial success. LitCharts provides notes, definitions and translations on over 2,000 literary texts. Similar to SparkNotes, LitCharts is all about making complex passages less complex. Course Hero founder Andrew Grauer estimates that about 30% of LitCharts’ subscribers are teachers and educators.

“We want to make sure that we have the best solution for a specific area, and then at the right moment in time, be able to make a really authentic recommendation of another tool or another offering that can be helpful for you [as a student],” Grauer said of Course Hero’s long-term ambition. That webbing – or connecting students from one resource to another – could be one of the benefits of virtual education, because there is essentially a history log of every error, stumble, and pause that a student makes as they’re going through a lesson.

The heart of Course Hero says Grauer is to create a question-and-answer platform with extreme levels of specificity for students. It sells subscriptions to students that unlock access to all of its learning and teaching content, which include course-specific material created by teachers and publishers. Naturally, a big part of Course Hero’s strategy is to offer material on common subjects that students struggle with – English being one of those subjects.

“We’ve been looking at the data on the platform, and where students are actually getting stuck the most, where they need the most help, and where they are asking the most questions,” said Grauer. “And that’s quite informative.”

The company has been building out its literature library for the past five to six years. With LitCharts under its wing, Course Hero is putting a significant investment in its literature library, which is chockfull of videos, illustrations and notes on texts.

This is Course Hero’s second acquisition in the past eight months. In October, Course Hero acquired Symbolab, an artificial intelligence-powered calculator that helps students answer and understand complex math questions. That deal helped bolster Course Hero’s math offering, and today’s acquisition should help Course Hero deepen its literature resources. Both of these brands will continue to operate independently – a choice that Grauer says is part of his operating thesis of supporting the “decentralized, empowerment of entrepreneurs.”

“If you centralize everything, maybe there’s power to that [since] it all looks the same, but actually in doing so many times do you can actually move slower, and not be able to move fast and make decisions and make progress towards the goal because you’re optimizing for so many small specific use cases,” he said. The two recent startups that Course Hero acquired have been operating for over a decade, and Grauer thinks that their scale and brand power is worth keeping as is, instead of forcing into an umbrella brand.

Across its various platforms, Course Hero estimates that it will hit between 2 million to 3 million paid subscribers this year, up from 1 million subscribers the year prior.

 


Source: Tech Crunch

Joby Aviation eyes Asia and Europe as early markets alongside North America

While electric vertical take-off and landing passenger aircraft startup Joby Aviation is targeting North America for its initial commercial launch, founder and CEO JoeBen Bevirt expects the company to have an early presence in Asia and Europe as well.

Bevirt, who joined the TC Sessions: Mobility 2021 on June 9, didn’t give away the first location; although recent announcements suggest it is narrowed down to Los Angeles, Miami, New York and the San Francisco Bay Area. But he did weigh in on what those first cities will look like.

“I imagine that we will have early markets in each of the three regions,” he said. “Our initial launch market will be in North America just for proximity to the nexus of where most of our team is currently. But there are incredible opportunities and cities around the world and we want to provide as much benefit to as many people as quickly as we possibly can. And so that’s why we’re so focused on scaling manufacturing.”

Joby Aviation is expected to begin construction on a 450,000-square-foot manufacturing facility, designed in conjunction with Toyota, later this year. The company has completed a pilot manufacturing facility already.

Joby, once a secretive startup, has had a far more public six months of late. The company reached a deal to merge with special purpose acquisition company Reinvent Technology Partners, formed by well-known investor and LinkedIn co-founder Reid Hoffman, Michael Thompson and Zynga founder Mark Pincus. Hoffman also joined Bevirt at the TC Sessions: Mobility event.

Prior to its SPAC deal, Joby had gained attention and investors over the years as it developed its eVTOL. Toyota became an important backer and partner, leading a $620 million Series C round of funding in January 2020. Nearly a year later, Joby acquired Uber’s air taxi moonshot Elevate as part of a complex deal.

Today, Joby is focused on certification, which it has been working on with the FAA since 2018, as well manufacturing its eVTOL aircraft. The company is also starting to put the pieces together for how and where it will operate. And that’s adding to its size. In the past year, Joby has doubled its workforce, which now sits at about 800.

Earlier this month, Joby Aviation announced a partnership with REEF Technology, one of the country’s largest parking garage operators, and real estate acquisition company Neighborhood Property Group to build out its network of vertiports, with an initial focus on Los Angeles, Miami, New York and the San Francisco Bay Area.

When 2024 arrives, Bevirt anticipates launching in one to two cities in that first year of operation. 

“We do want to provide sufficient depth of coverage that consumers get to experience the transformative experience,” Bevirt said. “There have been cases where if a new service launches, and there’s not enough supply, consumers can be frustrated, right. And so we want to make sure we can, that we can really service, at least a portion of the demand and provide a really gratifying experience to our customers. I think that that’s the piece that we really care about as a company, is making customers into raving fans.”


Source: Tech Crunch

Spotlight gets more powerful in iOS 15, even lets you install apps

With the upcoming release of iOS 15 for Apple mobile devices, Apple’s built-in search feature known as Spotlight will become a lot more functional. In what may be one of its bigger updates since it introduced Siri Suggestions, the new version of Spotlight is becoming an alternative to Google for several key queries, including web images and information about actors, musicians, TV shows and movies. It will also now be able to search across your photo library, deliver richer results for contacts, and connect you more directly with apps and the information they contain. It even allows you to install apps from the App Store without leaving Spotlight itself.

Spotlight is also more accessible than ever before.

Years ago, Spotlight moved from its location to the left of the Home screen to become available with a swipe down in the middle of any screen in iOS 7, which helped grow user adoption. Now, it’s available with the same swipe down gesture on the iPhone’s Lock Screen, too.

Apple showed off a few of Spotlight’s improvements during its keynote address at its Worldwide Developer Conference, including the search feature’s new cards for looking up information on actors, movies and shows, as well as musicians. This change alone could redirect a good portion of web searches away from Google or dedicated apps like IMDb.

For years, Google has been offering quick access to common searches through its Knowledge Graph, a knowledge base that allows it to gather information from across sources and then use that to add informational panels above and the side of its standard search results. Panels on actors, musicians, shows and movies are available as part of that effort.

But now, iPhone users can just pull up this info on their home screen.

The new cards include more than the typical Wikipedia bio and background information you may expect — they also showcase links to where you can listen or watch content from the artist or actor or movie or show in question. They include news articles, social media links, official websites, and even direct you to where the searched person or topic may be found inside your own apps. (E.g. a search for “Billie Eilish” may direct you to her tour tickets inside SeatGeek, or a podcast where she’s a guest).

Image Credits: Apple

For web image searches, Spotlight also now allows you to search for people, places, animals, and more from the web — eating into another search vertical Google today provides.

Image Credits: iOS 15 screenshot

Your personal searches have been upgraded with richer results, too, in iOS 15.

When you search for a contact, you’ll be taken to a card that does more than show their name and how to reach them. You’ll also see their current status (thanks to another iOS 15 feature), as well as their location from FindMy, your recent conversations on Messages, your shared photos, calendar appointments, emails, notes, and files. It’s almost like a personal CRM system.

Image Credits: Apple

Personal photo searches have also been improved. Spotlight now uses Siri intelligence to allow you to search your photos by the people, scenes, elements in your photos, as well as by location. And it’s able to leverage the new Live Text feature in iOS 15 to find the text in your photos to return relevant results.

This could make it easier to pull up photos where you’ve screenshot a recipe, a store receipt, or even a handwritten note, Apple said.

Image Credits: Apple

A couple of features related to Spotlight’s integration with apps weren’t mentioned during the keynote.

Spotlight will now display action buttons on the Maps results for businesses that will prompt users to engage with that business’s app. In this case, the feature is leveraging App Clips, which are small parts of a developer’s app that let you quickly perform a task even without downloading or installing the app in question. For example, from Spotlight you may be prompted to pull up a restaurant’s menu, buy tickets, make an appointment, order takeout, join a waitlist, see showtimes, pay for parking, check prices and more.

The feature will require the business to support App Clips in order to work.

Image Credits: iOS 15 screenshot

Another under-the-radar change — but a significant one — is the new ability to install apps from the App Store directly from Spotlight.

This could prompt more app installs, as it reduces the steps from a search to a download, and makes querying the App Store more broadly available across the operating system.

Developers can additionally choose to insert a few lines of code to their app to make data from the app discoverable within Spotlight and customize how it’s presented to users. This means Spotlight can work as a tool for searching content from inside apps — another way Apple is redirecting users away from traditional web searches in favor of apps.

However, unlike Google’s search engine, which relies on crawlers that browse the web to index the data it contains, Spotlight’s in-app search requires developer adoption.

Still, it’s clear Apple sees Spotlight as a potential rival to web search engines, including Google’s.

“Spotlight is the universal place to start all your searches,” said Apple SVP of Software Engineering Craig Federighi during the keynote event.

Spotlight, of course, can’t handle “all” your searches just yet, but it appears to be steadily working towards that goal.

read more about Apple's WWDC 2021 on TechCrunch


Source: Tech Crunch

Decades-old ASCII adventure NetHack may hint at the future of AI

Machine learning models have already mastered Chess, Go, Atari games and more, but in order for it to ascend to the next level, researchers at Facebook intend for AI to take on a different kind of game: the notoriously difficult and infinitely complex NetHack.

“We wanted to construct what we think is the most accessible ‘grand challenge’ with this game. It won’t solve AI, but it will unlock pathways towards better AI,” said Facebook AI Research’s Edward Grefenstette. “Games are a good domain to find our assumptions about what makes machines intelligent and break them.”

You may not be familiar with NetHack, but it’s one of the most influential games of all time. You’re an adventurer in a fantasy world, delving through the increasingly dangerous depths of a dungeon that’s different every time. You must battle monsters, navigate traps and other hazards, and meanwhile stay on good terms with your god. It’s the first “roguelike” (after Rogue, its immediate and much simpler predecessor) and arguably still the best — almost certainly the hardest.

(It’s free, by the way, and you can download and play it on nearly any platform.)

Its simple ASCII graphics, using a g for a goblin, an @ for the player, lines and dots for the level’s architecture, and so on, belie its incredible complexity. Because Nethack, which made its debut in 1987, has been under active development ever since, with its shifting team of developers expanding its roster of objects and creatures, rules, and the countless, countless interactions between them all.

And this is part of what makes NetHack such a difficult and interesting challenge for AI: It’s so open-ended. Not only is the world different every time, but every object and creature can interact in new ways, most of them hand-coded over decades to cover every possible player choice.

NetHack with a tile-based graphics update – all the information is still available via text.

“Atari, Dota 2, StarCraft 2… the solutions we’ve had to make progress there are very interesting. NetHack just presents different challenges. You have to rely on human knowledge to play the game as a human,” said Grefenstette.

In these other games, there’s a more or less obvious strategy to winning. Of course it’s more complex in a game like Dota 2 than in an Atari 800 game, but the idea is the same — there are pieces the player controls, a game board of environment, and win conditions to pursue. That’s kind of the case in NetHack, but it’s weirder than that. For one thing, the game is different every time, and not just in the details.

“New dungeon, new world, new monsters and items, you don’t have a save point. If you make a mistake and die you don’t get a second shot. It’s a bit like real life,” said Grefenstette. “You have to learn from mistakes and come to new situations armed with that knowledge.”

Drinking a corrosive potion is a bad idea, of course, but what about throwing it at a monster? Coating your weapon with it? Pouring it on the lock of a treasure chest? Diluting it with water? We have intuitive ideas about these actions, but a game-playing AI doesn’t think the way we do.

The depth and complexity of the systems in NetHack are difficult to explain, but that diversity and difficulty make the game a perfect candidate for a competition, according to Grefenstette. “You have to rely on human knowledge to play the game,” he said.

People have been designing bots to play NetHack for many years that rely not on neural networks but decision trees as complex as the game itself. The team at Facebook Research hopes to engender a new approach by building a training environment that people can test machine learning-based game-playing algorithms on.

NetHack screens with labels showing what the AI is aware of.

The NetHack Learning Environment was actually put together last year, but the NetHack Challenge is only just now getting started. The NLE is basically a version of the game embedded in a dedicated computing environment that lets an AI interact with it through text commands (directions, actions like attack or quaff)

It’s a tempting target for ambitious AI designers. While games like StarCraft 2 may enjoy a higher profile in some ways, NetHack is legendary and the idea of building a model on completely different lines from those used to dominate other games is an interesting challenge.

It’s also, as Grefenstette explained, a more accessible one than many in the past. If you wanted to build an AI for StarCraft 2, you needed a lot of computing power available to run visual recognition engines on the imagery from the game. But in this case the entire game is transmitted via text, making it extremely efficient to work with. It can be played thousands of times faster than any human could with even the most basic computing setup. That leaves the challenge wide open to individuals and groups who don’t have access to the kind of high-power setups necessary to power other machine learning methods.

“We wanted to create a research environment that had a lot of challenges for the AI community, but not restrict it to only large academic labs,” he said.

For the next few months, NLE will be available for people to test on, and competitors can basically build their bot or AI by whatever means they choose. But when the competition itself starts in earnest on October 15, they’ll be limited to interacting with the game in its controlled environment through standard commands — no special access, no inspecting RAM, etc.

The goal of the competition will be to complete the game, and the Facebook team will track how many times the agent “ascends,” as it’s called in NetHack, in a set amount of time. But “we’re assuming this is going to be zero for everyone,” Grefenstette admitted. After all, this is one of the hardest games ever made, and even humans who have played it for years have trouble winning even once in a lifetime, let alone several times in a row. There will be other scoring metrics to judge winners in a number of categories.

The hope is that this challenge provides the seed of a new approach to AI, one that more fundamentally resembles actual human thinking. Shortcuts, trial and error, score-hacking, and zerging won’t work here — the agent needs to learn systems of logic and apply them flexibly and intelligently, or die horribly at the hands of an enraged centaur or owlbear.

You can check out the rules and other specifics of the NetHack Challenge here. Results will be announced at the NeurIPS conference later this year.


Source: Tech Crunch

Todd and Rahul’s Angel Fund closes new $24 million fund

After making investments in 57 startups together, Superhuman CEO Rahul Vohra and Eventjoy founder Todd Goldberg are back at it with a new $24 million fund and big ambitions amid a venture capital renaissance with fast-moving deals a plenty.

Todd and Rahul’s Angel Fund” announced their first $7.3 million fund just weeks before the pandemic hit stateside last year and they were soon left with more access to deals than they had funding to support; they went on raise $3.5 million in a rolling fund designed around making investments in later stage deals beyond Seed and Series A rounds.

“We closed right before Covid hit and we had one plan but then everything accelerated,” Goldberg tells TechCrunch. “A lot of our companies started raising additional rounds.”

With their latest raise, Vohra and Goldberg are looking to maintain their wide outlook with a single fund, saying they plan to invest three-quarters of the fund in early stage deals while saving a quarter of the $24 million for later stage opportunities. Still, the duo know they likely could’ve chosen to raise more.

“A lot of our peers were scaling up into much larger funds,” Vohra says. “For us, we wanted to stay small and collaborative.”

Some of the firm’s investments from their first fund include NBA Top Shot creator Dapper Labs, open source Firebase alternative Supabase, D2C liquor brand Haus, alternative asset platform Alt, biowearable maker Levels and location analytics startup Placer. Their biggest hit was an early investment in audio chat app Clubhouse before Andreessen Horowitz led its buzzy seed round at a $100 million valuation. Clubhouse most recently raised at $4 billion.

The pair say they’ve learned a ton through the past year of navigating increasingly competitive rounds and that fighting for those deals has helped the duo hone how they market themselves to founders.

“You never want to be a passive check,” Goldberg says. “We do three things: help companies find product/market fit, we help them super-charge distribution.. and we help them find the best investors.”

A big part of the firm’s appeal to founders has been the “operator” status of its founders. Goldberg’s startup Eventjoy was acquired by Ticketmaster and Vohra’s Rapportive was bought by Linkedin while his current startup Superhuman has maintained buzz for its premium email service and has raised $33 million from investors including Andreessen Horowitz and First Round Capital.

Their new has an unusual LP base that’s made up of over 110 entrepreneurs and investors, including 40 founders that Vohra and Goldberg have previously backed themselves. Backers of their second fund include Plaid’s William Hockey, Behance’s Scott Belsky, Haus’s Helena Price Hambrecht, Lattice’s Jack Altman and Loom’s Shahed Khan.


Source: Tech Crunch

How to start a company in 4 days

Running a startup can be a complicated, difficult process fraught with pitfalls and ample opportunities to make mistakes. But the logistics of setting up a startup should be simple, because over the long run, complicated equity setups and cap tables cost more money in legal fees and administration time.

The logistics of setting up a startup should be simple, because over the long run, complicated equity setups and cap tables cost more money in legal fees and administration time.

My company, Pulley, has helped more than a thousand founders build their cap table and equity structure.

Here’s a tactical guide to get your startup running in just four days.

Day 1: Incorporate

It is now standard to incorporate your company at the seed stage itself. In the U.S., startups incorporate as Delaware C Corporations with 10 million authorized shares. This is the standard setup when you use services like Stripe Atlas or Clerky.

Post incorporation, you need to answer a few questions on how to grant equity to founders and future employees.

First, you should determine how you want to split the equity between the founders. There is no standard for doing so — some founders split shares equally, while others do 49/51 splits for control. Some founders even may have an 80/20 equity split because one founder spent an extra year on the idea.

At the end of the day, a good equity split is one that all founders find fair. If you can’t agree on a structure, you should have a deeper discussion on whether this is the right team to work with for the next decade or more.


Source: Tech Crunch

Tiny handheld Playdate preorders open next month for $179, with 24 charming monochrome games to start

Playdate, app and game designer Panic’s first shot at hardware, finally has a firm price and ship date, as well as a bunch of surprise features cooked up since its announcement in 2019. The tiny handheld gaming console will cost $179, ship later this year, and come with a 24-game “season” doled out over 12 weeks. But now it also has a cute speaker dock and low-code game creation platform.

We first heard about Playdate more than two years ago, were charmed by its clean look, funky crank control, and black and white display, and have been waiting for news ever since. Panic’s impeccable design credentials combined with Teenage Engineering’s creative hardware chops? It’s bound to be a joy to use, but there wasn’t much more than that to go on.

Now the company has revealed all the important details we were hoping for, and many more to boot.

The Playdate handheld with a person playing a game on it.

Image Credits: Panic

Originally we were expecting 12 games to be delivered over 12 weeks, but in the intervening period it seems they’ve collected more titles than planned, and that initial “season” of games has expanded to 24. No one knows exactly what to expect from these games except that they’re exclusive to the Playdate and many use the crank mechanic in what appear to be fun and interesting ways: turning a turntable, opening a little door, doing tricks as a surfer, and so on.

The team hasn’t decided how future games will be distributed, though they seem to have some ideas. Another season? One-off releases? Certainly the presence of a new game by one-man indie hit parade Lucas Pope would sell like hotcakes.

Screenshots of the Pulp game creation tool.

Image Credits: Panic

But the debut of a new lo-fi game development platform called Pulp suggests a future where self-publishing may also be an option. This lovely little web-based tool lets anyone put together a game using presets for things like controls and actions, and may prove to be a sort of tiny Twine in time.

A dock accessory was announced as well, something to keep your Playdate front and center on your desk. The speaker-equipped dock, also a lemony yellow, acts as a magnetic charging cradle for the console, activating a sort of stationary mode with a clock and music player (Poolsuite.fm, apparently, with original relaxing tunes). It even has two holes in which to put your pens (and Panic made a special yellow pen just for the purpose as well).

Playdate attached to its little cubical dock.

Image Credits: Panic

The $179 price may cause some to balk — after all, it’s considerably more than a Nintendo 3DS and with the dock probably approaches the price of a Switch. But this isn’t meant to be a competitor with mainstream gaming — instead, it’s a sort of anti-establishment system that embraces weirdness and provides something equally unfamiliar and undeniably fun.

The team says that there will be a week’s warning before orders can be placed, and that they don’t plan to shut orders down if inventory runs out, but simply allow people to preorder and cancel at will until they receive their unit. Shipping will begin in late 2021, and if the 20,000 units in the initial run don’t cover it, they’ll make more and ship as they come in.

We hope to get one ourselves to test and review, but since part of the charm of the whole thing is the timed release and social aspect of discovery and sharing, it’s more than likely we’ll be experiencing it along with everyone else.

(This article originally stated Playdate ships next month, but it will actually ship later — preorders begin next month.)


Source: Tech Crunch

Toast’s Aman Narang and BVP’s Kent Bennett on how customer obsession is everything

Toast has raised more than $900 billion and is reportedly valued at over $5 billion. But back in 2011, no one knew this startup would see such meteoric success. It had a few things going for it, of course — founder Aman Narang hailed from Endeca, where he was a software engineer and product lead with a reputation for being able to ship a lot of software quickly.

But the ambitions behind Toast were big and complicated, and enough to give pause to any investor. Kent Bennett was one such VC, and while he had conviction in the founding team, he wasn’t convinced that they could tackle such a big problem.

Toast is a restaurant POS system that acts as a sort of operating system for an establishment, managing everything from online orders, deliveries and marketing to payroll and team management as well as the actual point of sale. Being able to do all that requires building a number of complex products, such as payments.

Early on, Bennett had told Narang not to build a restaurant POS. To him, it was too complicated and nuanced, which is why the systems from the ’90s were still deeply entrenched 20 years later. However, he did offer space in the Bessemer office for the Toast team to work on their product.

“I caught up with Aman and he told me that they did this interesting thing after hearing that a lot of their customers were frustrated by payments platforms, which are separate from the POS,” said Bennett. “Aman said they built their own payments platform. Once again, I was like, ‘You did what? You’re not allowed to build payments.’ But he told me that they built it and it improves their products, and that, by the way, they make a margin on it.”

Bennett said that when they added up the margins from the payments and the POS, it was impactful.

“It hit me like a ton of bricks,” said Bennett. “This is a really good business.”

From there, it became his obsession. And though it took a few more quarters to close the deal, they eventually got there. Bessemer led the company’s Series B financing in 2016.

We spoke to Bennett and Narang recently on an episode of Extra Crunch Live to explore the story of how they came together for the deal, what makes the difference for both founders and investors when fundraising, and the biggest lessons they’ve learned so far. The episode also featured the Extra Crunch Live Pitch-Off, where audience members pitched their products to Bennett and Narang and received live feedback.

Extra Crunch Live is open to everyone each Wednesday at 3 p.m. EDT/noon PDT, but only Extra Crunch members are able to stream these sessions afterward and watch previous shows on-demand in our episode library.

Despite the complexity of the Toast system, or maybe because of it, Narang says the fundamentals are the most important part of communicating the business, especially when fundraising.


Source: Tech Crunch