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The NSO Group has denied that its spyware was used to compromise many politicians' phones, but WhatsApp is telling a different story. The chat giant's CEO, Will Cathcart, told The Guardian in an interview that governments allegedly used NSO's Pegasus software to attack senior government officials worldwide in 2019, including high-ranking national security officials who were US allies. The breaches were reportedly part of a larger campaign that compromised 1,400 WhatsApp users in two weeks, prompting a lawsuit.
The reporting on the NSO "matches" with findings from the 2019 attack on WhatsApp, Cathcart said. Human rights activists and journalists were also believed to be victims.
The executive was responding to allegations that governments used Pegasus to hack phones for 37 people, including those of women close to murdered Saudi journalist Jamal Khashoggi. Those targets were also on a 2016 list of over 50,000 phone numbers that included activists, journalists and politicians, although it's not clear that anyone beyond the 37 fell prey to attacks.
NSO has strongly rejected claims about the hacks and the list, insisting that there's "no factual basis" and that the list was too large to be focused solely on potential Pegasus targets. It also directly challenged Cathcart, asking if the WhatsApp exec had "other alternatives" to its tools that would help thwart "pedophiles, terrorists and criminals" using encrypted software.
Cathcart, however, didn't buy that explanation — he pointed to the 1,400 people as possible evidence that the number of targets was "very high." Whatever the truth, it's safe to say WhatsApp won't shy away from its lawsuit (or a war of words) any time soon.
Ford might be excited about its BlueCruise hands-free driving tech, but GM is less than thrilled about it. The Detroit Free Press and The Verge report that GM has sued Ford for allegedly violating the trademarks for both its rival Super Cruise feature and its autonomy-focused Cruise company.
GM was holding mediated talks with Ford to reach a "good-faith" arrangement, according to DFP sources. The two sides reportedly didn't make a deal before a July 24th deadline, however, prompting the lawsuit. A GM spokesperson said the company had "no choice" but to sue Ford after trying to resolve the dispute "amicably."
Ford's representative, meanwhile, argued that GM's lawsuit was "meritless and frivolous." People understood that "cruise" was short for cruise control, Ford said, and BlueCruise was ultimately the "next evolution" of its Intelligent Adaptive Cruise Control feature. The automaker added that GM didn't seem to have issues with other brands' naming schemes, such as BMW's Active Cruise Control and Hyundai's Smart Cruise Control.
The attention to Ford isn't surprising. Both companies see hands-free driving as a major selling point for their cars, with full self-driving a long-term goal. It's also no secret that the two Detroit brands have been fierce rivals for a long time — neither Ford nor GM will want to cede ground, at least not quickly. We wouldn't be surprised if the lawsuit ends with a settlement, but not before the companies have traded some verbal jabs.
As college students at Berkeley, Spencer Kimball and Peter Mattis created a successful open-source graphics program, GIMP, which got the attention of Google. The duo ultimately joined Google, and even personally got kudos from Sergey Brin and Larry Page. Kimball and Mattis quickly rose to prominence within the company, and then chose to leave it all behind to start what would eventually become CockroachDB. Years later, Cockroach Labs has over 250 employees and has received investments from the likes of Benchmark, GV, Index Ventures and Redpoint totaling more than $350 million, according to Crunchbase. The company is now on route to what some think is an “inevitable IPO.”
The story of CockroachDB, from its origin to its future, was told in a four-part series in our latest EC-1:
- Origin story “CockroachDB, the database that just won’t die” (2,100 words/8 minutes)
- Technical design “How engineers fought the CAP theorem in the global war on latency” (2,400 words/10 minutes)
- Developer relations and business “‘Developers, as you know, do not like to pay for things‘” (2,200 words/9 minutes)
- Competitive landscape and future “Scaling CockroachDB in the red ocean of relational databases” (2,400 words/10 minutes)
I’m biased, but it’s a must-read that gets into tensions that any startup founder can relate to: from navigating heavyweight competitors, to growing past free tiers, to maintaining your users’ attention. It’s the eighth EC-1 we’ve published to date, which my colleague and TC Managing Editor Danny Crichton estimates puts us at 90,000 words all about startup beginnings, product development, marketing and more.
In the rest of this newsletter, we’ll get into that WeWork book, bite-sized entrepreneurship and some SPACs. Follow me on Twitter @nmasc_. Or don’t, it’s your choice!
The Cult of We
Adam Neumann (WeWork) at TechCrunch Disrupt NY 2017. Image Credits: TechCrunch
This week on Equity, Alex and I interviewed Eliot Brown, who wrote “The Cult of We” along with Maureen Farrell. Our conversation riffed on some of the book’s eyebrow-raising details and anecdotes, but mainly focused on what WeWork’s rise and fall did to the state of startups and tech journalism more broadly.
Here’s what to know: Not much has changed. Jokes aside, Brown shared his notes on how the current boom in startup financings has a worrisome air of frenzy and fluff. He also chatted about how sometimes the most illuminating question can be a simple one: What makes you a tech company?
More money, more problems?
- A $170M Series A
- Hong Kong-based FTX raises largest-ever VC round for a crypto company
- These simple metrics will tell you if your startup is ready to scale
TikTok what again?
Image Credits: TechCrunch
TikTok kept popping up throughout the week. Index Ventures, for example, noted how the firm’s TikTok account has amassed an impressive following and is a channel to talk to the younger generations. Nothing like some short-form videos to stay hip and relatable while raising $3 billion in one go.
Here’s what to know: While TikTok has certainly changed the world, I worry when I see the allure of bite-sized content get edtech’d. Bite-sized content can be a nifty way to spread content, but it isn’t one-size-fits-all. Duolingo, which priced its IPO this week, still struggles to show meaningful learning outcomes and optimizes more for motivation than comprehension. This tension is a key note for companies like Numerade and Sololearn, which both raised this week, to not overly TikTok learning materials.
Other edtech content for your eyes:
- China’s expected edtech clampdown may chill a key startup sector
- NewCampus wants to train the first-time managers within Southeast Asia’s tech giants
- India’s most valuable startup buys US-based digital reading platform Epic for $500M
Image Credits: Bryce Durbin / TechCrunch
It’s been awhile since I’ve used that acronym in Startups Weekly. That said, special purpose acquisition vehicles are still very much a thing and are still very much worth paying attention to.
Here’s what to know: Lucid Motors’ SPAC merger was just approved. Reporter Aria Alamalhodaei writes that the move came after executives extended the deadline to vote to merge by one day after not enough investors showed up. “The issue is unusual but could become more common as more companies eschew the traditional IPO path to public markets and instead merge with SPACs,” she writes.
- Matterport went public through a SPAC
- After going public via a SPAC, Taboola acquires e-commerce marketing network Connexity for $800M
If you haven’t already, please fill out TC’s ongoing growth marketing survey. We’re using these recommendations of top-tier growth marketers around the world to shape our editorial coverage and to build out TechCrunch Experts.
- Growth marketing roundup: TechCrunch Experts, creative testing and how to nail your narrative
- Marketing Cube founder Maya Moufarek’s lessons for customer-focused startups
Across the week
Seen on TechCrunch
- All Raise launches virtual bootcamp for women and nonbinary founders
- Jack Dorsey says bitcoin will be a big part of Twitter’s future
- Clubhouse is now out of beta and open to everyone
- How we built an AI unicorn in 6 years
- Michael Arrington’s next act
Seen on Extra Crunch
- Last-mile delivery in Latin America is ready to take off
- Susan Su on how to approach growth as your startup raises each round
- The European VC market is so hot it may skip its summer holiday
- Cowboy Ventures’ Ted Wang: CEO coaching is ‘about having a second set of eyes’
- Silicon Valley comms expert Caryn Marooney shares how to nail the narrative
Same time, same place next week? Bring a friend!
Expect to see more mixed reality apps in the future, at least for the Oculus Quest 2. WinFuturenotes that Oculus has unveiled a toolkit, Passthrough API Experimental, that will make it relatively easy to "seamlessly" merge VR with the real world view from the Quest 2's cameras.
You can project images on flat surfaces, create composite layers that float in space, and even apply visual styles (akin to social media filters) to real scenes. You could give yourself a virtual monitor to use with your real-world keyboard, for instance, or turn your home into a psychedelic dreamscape by flicking a virtual switch.
Privacy shouldn't be an issue, Oculus claimed. The API only processes raw camera footage on-device, and apps can't access, store or view imagery of the world around you. A rogue app shouldn't transmit video of your home, to put it another way.
Oculus expects to deliver the framework to Unity engine developers with its next software development kit release. It will take a while for finished apps to surface, but don't be surprised if mixed reality games and productivity tools become relatively commonplace as a result of Oculus' new tools.
Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s inspired by what the weekday Exchange column digs into, but free, and made for your weekend reading. Want it in your inbox every Saturday? Sign up here.
Hello everyone, I hope you had a lovely week. I turned 32 after experiencing sleep-destroying heartburn. So, a little good and a little bad. But that didn’t stop the markets. Nope. Not a bit. Which means we have a lot to talk about, including falling insurtech stocks and what the situation might mean for startups, and a raft of IPOs. This will be fun!
Before we get into the nitty-gritty of our chats with newly public companies Kaltura, Couchbase and Enovix, let’s talk insurtech.
In the last year or so we’ve seen a number of insurtech startups go public, including Root (auto insurance), Metromile (car insurance), and Lemonade (rental insurance). Here’s a quick digest of how their performance looks today:
- Root: $7.72 per share, 71.4% down from its $27 per share IPO price.
- Metromile: $7.26 per share, down 64.4% from its post-combination highs.
- Lemonade: $86.97 per share, up 199.9% from its IPO price of $29 per share.
Recall that Root and Metromile began to trade after Lemonade, so their declines are not over a longer time horizon, but a shorter interval. Which makes the situation all the more interesting.
What’s going on? Well, two of the three insurtech public offerings (SPACs, IPOs, etc.) are sharply underwater. That doesn’t bode incredibly well for Hippo, which is pursuing its own SPAC-led combination that should be wrapping up in short order. The huge declines don’t seem bullish for insurtech startups, who will have to answer private-market investor doubts concerning their value.
Does Lemonade’s strong post-IPO performance allay concerns? It’s tricky. The company has been busy expanding into new markets, including auto insurance. The company did take a somewhat material hit from the Texas freeze earlier this year — per its most recent earnings report — but past those two data points it’s not entirely clear what the company is doing that the other two are not. But investors are stoked about Lemonade, and not Root and Metromile. Figuring out why that’s the case, and why their startup is more Lemonade than the other two, is going to be key for the many insurtech startups still scaling toward their own IPOs.
It’s IPO season
The Exchange has been busy on the phones these last two weeks, talking to CEOs of companies going public to try and learn from their recent experiences. So, what follows are notes from calls with folks at Kaltura, Couchbase and Enovix. Enjoy!
- Reminder: Online-video-focused Kaltura filed to go public earlier this year before delaying its IPO and taking another run at the funding event.
- The Exchange spoke with Kaltura CEO Ron Yekutiel, who said that the company’s IPO’s timing was impacted by the early-2021 public market turmoil. That was not a surprise, but it was good to get confirmation regardless.
- That freeze was partially caused by the Archegos implosion, per Yekutiel. That makes sense, but was news to us.
- Yekutiel said that his company wasn’t thrilled about the delay — going public is the only fundraise that you pre-announce, he noted — but added that investors his company had already spoken to the first-time around were still enthused about Kaltura on its second run at an IPO.
- Per the CEO, Kaltura’s preliminary Q2 results showed investors that what it was talking about earlier in the year was coming true. He also stressed uptake in new products as key to the company’s continued growth.
- The CEO was happy with how his company priced and traded during its first day, snagging a flat 20% uptick in value upon trading. He noted that more would have been excessive, and less would have been un-good.
- Regarding the lower valuation that Kaltura priced at compared to its March-era IPO price range, Yekutiel said that you don’t get a third chance to make a first impression and that his company wanted to get the offering done. So they did. Points for not getting lost in their own head.
- Kaltura is up 17.5% from its $10 per-share IPO price as of the time of writing.
One anecdote, if I may. Kaltura won an early TechCrunch40 — the precursor to the TechCrunch50 event, itself a predecessor to today’s TechCrunch Disrupt conference series — thanks to a single vote cast via physical token. Yekutiel still has that token, and showed it to us during our chat. Neat!
- The Exchange spoke with noSQL database company Couchbase’s CEO Matt Cain. Couchbase priced at $24 per share, above its $20 to $23 per-share IPO price range.
- Today it’s worth $33.20, rising 9.2% in today’s trading as of the time of writing.
- Cain was talking from a pretty strict script — a pretty standard situation amongst newly public CEOs worried about fucking up and going to jail — so we didn’t get the precise answers we were looking for. But we still managed to learn a few things, including that Couchbase was yet another company that found the meeting density made possible by remote roadshows to be accretive.
- The CEO was focused on discussing the scale of the opportunity ahead of Couchbase, namely the world of operational databases. It’s hard to find a bigger market, he argued, which made investors excited about what his company might be able to accomplish. Our read here is that there’s probably plenty of surface area for startups in the database world, if the market is as big as Cain reckons it is.
- We wanted to learn a bit more about how public-market investors view open-source powered companies, but didn’t get too much from him on the matter. Still, the company’s IPO is a pretty damn strong one, implying that being OSS-built isn’t exactly a detriment to a company hoping to exit.
- The Exchange wanted to chat with newly public company Enovix because it debuted via a SPAC. Why does that matter? Because there are other battery-focused companies looking to go public via SPACs. So, the chat was good background for later work.
- And we love talking to public companies. Who doesn’t?
- Asked if combination-and-trade-under-new-ticker-symbol day was like an IPO to his firm, Rust said that it was. Fair enough.
- The company’s combination date for its SPAC slipped from Q2 to Q3, we noticed. Why was that? Some SEC changes regarding accounting, in short. Not a big deal was our impression from the chat, but one that did cause a slight delay to Enovix’s trading date.
- Why go public via a SPAC? Cash, but also the particular sponsor of their combination, which Rust said was a key resource in terms of operational knowledge. The company has also hired from its SPAC sponsor’s network, which felt notable. (Hey look, actual investor value-add!)
- Asked why his company is worth less than the impending SES SPAC, another battery company that has yet to generate revenue, Rust said that the value of his company in its SPAC deal was a negotiation, and that if the company is successful, whether it was valued at $1.1 billion or $1.4 billion wouldn’t really matter.
- What’s fun about Enovix is that it is not starting with its impending battery tech aimed at EVs. Instead, it’s targeting high-end electronics. Why? Quick cycles to get batteries into hardware and possible pricing power. It does intend to get into EVs in time, however.
- The company is worth $17.33 per share, giving it what Yahoo Finance describes as a $2.5 billion valuation. That’s a good markup from what it expected and could bode well for SES’s own, future debut.
Yo, that was a lot. Thanks for sticking with me. And thanks for reading The Exchange’s little newsletter. You can catch up on all our work here if you want some long-form reads on the global venture capital market, edtech and other topics. Stay cool!
The Volkswagen group's desire to crush records with electrified cars now extends to one of the world's toughest off-road challenges. Autoblogreports that Audi has started testing the RS Q E-Tron, a from-scratch hybrid off-roader it hopes will score overall victory in the 2022 Dakar Rally. If so, it would be the first electrified vehicle to win the gruelling competition.
The RS Q E-Tron relies on an electric drivetrain with two modified Formula E motors, one at each axle. As you won't find a charging station in the middle of the desert, however, Audi uses a race-ready TFSI engine as part of an energy converter that charges the battery while driving and braking. This isn't a zero-emissions car, then, but it stays in a relatively efficient power band (between 4,500RPM and 6,000RPM) that should reduce the racer's environmental impact.
The machine should be highly adaptable, too. Unlike many EVs, the front and rear axles aren't mechanically connected — software handles torque distribution instead. That not only allows for an easily reconfigurable center differential, but saves the bulk that would normally be used for a conventional differential and propshaft.
Audi plans to enter the machine into multiple cross-country rallies in 2021 before participating in the Dakar Rally in January.
If Audi is successful, the RS Q E-Tron will make a stronger case for eco-friendly endurance racing. While not a pure EV, it will handle extremely long stages (up to 500 miles) with a significantly reduced emissions footprint. It also won't surprise you to hear that Audi wants more than just bragging rights. It expects lessons learned from the car to reach production cars. We wouldn't count on something with a similar drivetrain when the VW group is transitioning to EVs, but it's easy to imagine electric SUVs and crossovers that are better-suited to off-roading.
Hello and welcome back to TechCrunch’s China Roundup, a digest of recent events shaping the Chinese tech landscape and what they mean to people in the rest of the world.
Despite the geopolitical headwinds for foreign tech firms to enter China, many companies, especially those that find a dependable partner, are still forging ahead. For this week’s roundup, I’m including a conversation I had with Prophesee, a French vision technology startup, which recently got funding from Kai-Fu Lee and Xiaomi, along with the usual news digest.
Spotting opportunities in China
Like many companies working on futuristic, cutting-edge tech in Europe, Prophesee was a spinout from university research labs. Previously, I covered two such companies from Sweden: Imint, which improves smartphone video production through deep learning, and Dirac, an expert in sound optimization.
The three companies have two things in common: They are all in niche fields, and they have all found eager customers in China.
For Prophesee, they are production lines, automakers and smartphone companies in China looking for breakthroughs in perception technology, which will in turn improve how their robots respond to the environment. So it’s unsurprising that Xiaomi and Chinese chip-focused investment firm Inno-Chip backed Prophesee in its latest funding round, which was led by Sinovation Venture.
The funding size was undisclosed but TechCrunch learned it was in the range of “tens of million USD.” It was also the first investment that Kai-Fu Lee has made through Sinovation in Europe. As Prophesee CEO Luca Verre recalled:
I met Dr. Kai-Fu Lee three years ago during the World Economic Forum … and when I pitched to him about Prophesee, he got very intrigued. And then over the past three years, actually, we kept in touch and last year, given the growing traction we were having in China, particularly in the mobile and IoT industry, he decided to jump in. He said okay, it is now the right timing Prophesee becomes big.
The Paris-based company wasn’t actively seeking funding, but it believed having Chinese strategic investors could help it gain greater access to the complex market.
Rather than sending information collected by sensors and cameras to computing platforms, Prophesee fits that process inside a chip (fabricated by Sony) that mimics the human eyes, a technology that is built upon neuromorphic engineering.
The old method snaps a collection of fixed images so when information grows in volume, a tremendous amount of computing power is needed. In contrast, Prophesee’s sensors, which it describes as “event-based,” only pick up changes in the environment just as the photoreceptors in our eyes and can process information continuously and quickly.
Europe has been pioneering neuromorphic computing, but in recent years, Verre saw a surge in research coming from Chinese universities and tech firms, which reaffirmed his confidence in the market’s appetite.
We see Chinese OEMs (original equipment manufacturers), particularly Xiaomi, Oppo and Vivo pushing the standard of quality of image quality to very, very high … They are very eager to adopt new technology to further differentiate in a way which is faster and more aggressive than Apple. Apple is a company with an attitude which to me looks more similar to Huawei. So maybe for some technology, it takes more time to see the technology mature and adopt, which is right very often but later. So I’m sure that Apple will come at certain point with some products integrating event-based technology. In fact, we see them moving. We see them filing patents in the space. I’m sure that will come, but maybe not the first.
Though China is striving for technological independence, Verre believed Prophesee’s addressable market is large enough — $20 billion by his estimate. Nonetheless, he admitted he’d be “naive to believe Prophesee will be the only one to capture” this opportunity.
WeRide bought a truck company
One of China’s most valuable robotaxi startups has just acquired an autonomous trucking company called MoonX. The size of the deal is undisclosed, but we know that MoonX raised “tens of millions RMB” 15 months ago in a Series A round.
While WeRide is focused on Level 4 self-driving technology, it is also finding new monetization avenues before its robotaxis can chauffeur people at scale. It’s done so by developing minibusses, and the MoonX acqui-hire, which brings the company’s founder and over 50 engineers to WeRide, will likely help diversify its revenue pool.
WeRide and MoonX have deep-rooted relationships. Their respective founders, Tony Han and Yang Qingxiong, worked side by side at Jingchi, which was later rebranded to WeRide. Han co-founded Jingchi and took the helm as CEO in March 2018 while Yang was assigned vice president of engineering. But Yang soon quit and started MoonX.
Han, a Baidu veteran, gave Yang a warm homecoming and put him in charge of the firm’s research institute and its new office in Shenzhen, home to MoonX. WeRide’s sprawling headquarters is just about an hour’s drive away in the adjacent city of Guangzhou.
AI surveillance giant Cloudwalk nears IPO
Cloudwalk belongs to a cohort of Chinese unicorns that flourished through the second half of the 2010s by selling computer vision technology to government agencies across China. Together, Cloudwalk and its rivals SenseTime, Megvii and Yitu were dubbed the “four AI dragons” for their fast ascending valuations and handsome funding rounds.
Of course, the term “AI dragon” is now a misnomer as AI application becomes so pervasive across industries. Investors soon realized these upstarts need to diversify revenue streams beyond smart city contracts, and they’ve been waiting anxiously for exits. Finally, here comes Cloudwalk, which will likely be the first in its cohort to go public.
Cloudwalk’s application to raise 3.75 billion yuan ($580 million) from an IPO on the Shanghai STAR board was approved this week, though it can still be months before it starts trading. The firm’s financials don’t look particularly rosy for investors, with net loss amounting to 720 million yuan in 2020.
Also in the news
- Speaking of the torrent of news in autonomous driving, vehicle vision provider CalmCar said this week that it has raised $150 million in a Series C round. Founded by several overseas Chinese returnees in 2016, CalmCar uses deep learning to develop ADAS (Advanced Driver Assistance System) used in automotive, industrial and surveillance scenarios. German auto parts maker ZF led the round.
- Baby clothes direct-to-consumer brand PatPat said it has raised $510 million from Series C and D rounds. The D2C ecosystem leveraging China’s robust supply chains is increasingly gaining interest from venture capitalists. Brands like Shein, PatPat, Cider and Outer have all secured fundings from established VCs. Founded by three Carnegie Mellon grads, PatPat counts IDG Capital, General Atlantic, DST Global, GGV Capital, SIG China and Sequoia China among its investors.
Social media routinely proves itself a cesspool of racist, bigoted and toxic opinions — and that's just coming from the adults. But for the younger generations that have never lived in an unconnected world, these seemingly unnavigable platforms have proven to be a uniquely potent tool for organizing and empowering themselves to change the real world around them. In Digital for Good, author Richard Culatta walks parents through many of the common pitfalls their kids may face when venturing into the internet wilds and how to best help them navigate these potential problems.
Reprinted by permission of Harvard Business Review Press. Excerpted from Digital For Good: Raising Kids to Thrive in an Online World by Richard Culatta. Copyright 2021 Harvard Business School Publishing Corporation. All rights reserved.
Young Voices Matter
The first step for creating engaged digital citizens is making sure we’re teaching young people that their contributions and opinions matter. I think deep down we all believe this and want it to be true. But there are many elements of our society that are set up to communicate the opposite message. Much of school is designed in a way that tells our kids that they are to apply the skills they are learning some day in their hypothetical future, not now. They are taught to learn math because they will need it to get into college. They are taught to write because it will be an important skill when they get a job. In history, the people they learn about are always adults, not kids. They have little choice or control over the learning experience itself; they are handed a schedule, given assignments (that they didn’t have any input in designing), and told to complete by a date that they didn’t choose. The message that young voices don’t matter is reinforced by the fact that they can’t vote until they are eighteen. One of the most important tenets of democracy is the idea that everyone has a voice. We teach that to our children, yet we offer very few ways to actually use that voice before they’re no longer kids. Fortunately, the digital world gives a wide set of tools that can help change that narrative. These tools allow youth to have a voice and learn how to make a meaningful impact on their community, family, and in some cases, the world as a whole—right now, not decades down the road.
Just Some Students from Florida
In February 2018, Marjory Stoneman High School in Parkland, Florida, was in the news worldwide when nineteen-year-old Nikolas Cruz entered the school with a semiautomatic rifle, killing seventeen people and injuring seventeen others. This horrific event became one of the deadliest school shootings in US history. Yet there was a unique ending to this tragic story that set it apart for another reason. In other school shootings, traditional news media and political leaders quickly shape the national conversation around the event. A narrative emerges around what actually happened, with speculation about the causes, who is to blame, and the political responses to justify action (or lack thereof). But in the case of Parkland, it was the students who shaped the national conversation. Frustrated about viewpoints and conclusions from adults that they did not share or agree with, they used their access to social media to reset and redirect the conversation into what has now become one of the most powerful examples of youth engagement ever seen. Within a week of the shooting, the students had appeared on nearly every major news program and had raised more than $3 million in donations to support their cause. Emma Gonza?les, one of the most recognizable faces of the movement, has over 1.5 million Twitter followers—about twice as many as the National Rifle Association.
Not long after the shooting, I met Diane Wolk-Rogers, a history teacher at Stoneman High School. As she explained, nobody could have prepared these students for the horror they faced on that day. But they had been prepared to know how to use technology to make their voices heard. Wolk-Rogers says, “They are armed with incredible communication skills and a sense of citizenship that I find so inspiring.” So when it was time to act, they knew the tools of the trade.
Engaged digital citizens know how to use technology to identify and propose solutions and promote action around causes that are important to them and their communities. Micro-activism is a term used to describe small-scale efforts that, when combined, can bring about significant change. While young people might not be able to vote or run for office, they have a whole range of micro-activism opportunities—all made possible by their participation in the digital world. For youth who have access to social media, micro-activism can be as simple as using their digital platforms to call awareness to issues that matter to them—eradicating racism, protecting our planet, or funding their school, and so on. Most states have a function on their website to submit ideas or feedback directly to the office of the governor. Through sites like Change.org anyone, regardless of age, can submit suggestions to political leaders or private sector entities. You can also add your name in support of other petitions that are gaining momentum. There are many compelling stories of youth who have used Change.org to call attention to issues that matter to them. Examples include a ten-year-old who used the platform to convince Jamba Juice to switch from Styrofoam cups to a more environmentally friendly alternative. Or a seventh grader who used Change.org to successfully petition the Motion Picture Association to change the rating on a movie about school bullying so students in her junior high would be allowed to see it.
Not all acts of micro-activism will immediately result in a desired change. But regardless of the outcome, learning how to impact community issues using digital tools is an important skill to develop in and of itself. The ability to motivate others to act for good in a virtual space will be a significant (if not the significant) determining factor in the effectiveness of future civic leaders. Young people need to practice using tech to make a difference now, if they are going to be prepared to lead our society when they grow up.
Now might be a good time to buy the Apple Watch Series 6 — at least, if you're fond of red. Amazon is selling the 40mm Product Red edition of the Apple smartwatch for just $265 at checkout, well below the official $399 price. That's lower than the price we saw in April, and makes it more affordable than a brand-new Apple Watch SE. Unless you find a huge sale for the SE, this is clearly the better buy.
The Series 6 is ultimately a subtle evolution of the Series 5, but that's not a bad thing. The always-on display is still very helpful, and on Series 6 is brighter to help you see it during outdoor expeditions. It's slightly faster, lasts slightly longer on battery and charges quickly. We'd add that the Apple Watch remains the go-to wristwear for iPhone users between the tight integration, deep app ecosystem and wide range of bands and accessories.
Timing is the main concern at this point. It's no secret that the Series 6 is nearly a year old, and Series 7 is likely just a couple of months away. If money isn't your main concern, it might be worth waiting for the updated hardware. With that said, the Series 7 likely won't see discounts like this for a long while — the Series 6 is still a good value if you either can't afford to wait or just want a full-featured Apple Watch at the lowest possible price.
Follow @EngadgetDeals on Twitter for the latest tech deals and buying advice.
Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.
The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.
Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year
This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.
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This Week in Apps took a little vacation this month, so we’re back this week with a big round-up of all the news we missed — and then some. And a super-sized section of apps getting funded, too! Let’s play some catch-up…
ATT isn’t killing mobile game performance. An Apptopia report found that Apple’s launch of App Tracking Transparency has so far had no clear impact on mobile game download performance or monetization performance. The firm says this could be the result of any number of factors, including publishers using fingerprinting techniques (despite not being permitted), increased ad budgets on large networks like Facebook, increased spend on user acquisition, use of IDFV (vendor identifier) by larger publishers or higher than expected opt-in rates than was predicted.
Image Credits: Apptopia
Image Credits: Apptopia
iOS 14.7 launched, adding support for Apple Card Family with combined credit limits, a Home app with support for multiple timers on HomePod, support for the MagSafe Battery Pack, Podcast app enhancements and more. iPadOS 14.7 also became available, offering bug fixes, security updates, as well as the same Apple Card Family and HomePod support.
Meanwhile, the iOS 15 beta 3 added the ability to update your device using Software Update even if less than 500 MB of storage is available. This could be a big deal for getting users onto the most recent version of iOS, which has in the past been more difficult when users’ phone storage is nearly full.
Apple added the ability to assign tax categories to apps and in-app purchases on App Store Connect. The categories are based on the app’s content — like videos, books, news, etc. — and allow Apple to administer taxes at the specific rates that apply to that type of application or purchase.
Apple expanded Ultra Wideband functionality in the Apple Watch Series 6, iPhone 11 and 12 to more countries, including Argentina, Pakistan, Paraguay and the Solomon Islands. Some countries don’t allow the technology still, and it must be disabled, including Armenia, Azerbaijan, Belarus, Indonesia, Kazakhstan, Kyrgyzstan, Nepal, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.
Apple asked Judge Gonzalez Rogers to consider three other antitrust cases that have since been decided since the start of Epic Games’ antitrust lawsuit, which is now being deliberated. The cases include a recent decision by the courts to throw out the FTC lawsuit against Facebook.
Android beta 3 came out. The new release dropped a month after beta 2, and includes features like scrolling screenshots, face detect auto-rotate, more Material You theme options and new icons, the ability to disable Assistant corner swipe activation, tweaks to features like one-handed mode and internet toggles and changes to the camera, Chrome, toggles, launcher and more.
Android phones’ backup system was upgraded to “Backup by Google One,” an improvement that now backs up photos, videos and MMS messages with more granular control, in addition to the app data, SMS messages, call logs and device preferences the old system covered.
Google won’t enforce the original September 30, 2021 deadline that would have required all Play Store apps to switch over to the Play Billing IAP system. The company will now allow developers to request an extension for adopting the new policy, in the wake of the big antitrust lawsuit filed by AGs across 36 U.S. states and D.C.
Epic Games filed an update in its antitrust lawsuit against Google over its Play Store policies, but most of the information it contains has been redacted. From the visible tidbits, Epic discusses Google’s relationship with Apple and its agreement to pay between $8 and $12 billion to be the default search provider; as well as Epic’s plans to launch Fortnite on the Samsung Galaxy Store.
Verizon joined AT&T and T-Mobile in preloading the Android Message app as the default texting app on all Android phones it sells, meaning that now all three major U.S. carriers support RCS — the next-gen standard to replace SMS — as the default Android experience.
Amazon got the recently launched app Fakespot pulled from the App Store. An extension of the fake review-spotting website, Fakespot app was taken down because it was wrapping the Amazon website without permission, which Amazon successfully argued could be exploited to steal customer data. Amazon also said Fakespot injected code into its website, which opened up an attack vector. Apple said it gave Fakespot time to correct its issues before the takedown.
Snap called out its AR advances during its Q2 earnings where the company posted record revenue and the largest user growth in four years. The company’s Cartoon 3D Style Lens went viral in the quarter on other social networks, including TikTok, generating 2.8 billion impressions on Snapchat alone. Snap also partnered with Disney on location-based Lenses for Walt Disney World’s 50th anniversary. The company is now working on shopping features that could potentially allow users to try on clothes using AR.
Popular investment app Robinhood is targeting its IPO valuation up to $35 billion in a filing released on the 19th. The company first filed to go public in early July after raising billions earlier in the year. The fintech giant expects to debut between $38 and $42 per share.
Fintech giant Revolut launched a travel booking feature called Stays, which allows users to book hotels and other accommodations in its app, in a move to become more of a “super app” that offers multiple services through one interface.
Venmo removed the app’s global, public feed as part of its major redesign. The public feed put user privacy at risk, and follows a number of complaints about Venmo’s oversharing throughout the years. Recently, Venmo’s privacy leaks led BuzzFeed News to uncover President Biden’s Venmo account.
Twitter CEO Jack Dorsey said bitcoin will be a “big part” of Twitter’s future. On the company’s earnings call, the exec spoke for the first time about how he envisions bitcoin can integrate with Twitter’s products, including commerce, subscriptions and other new additions like the Twitter Tip Jar and Super Follows. The company posted the fastest revenue growth since 2014 in a pandemic rebound, but user growth slightly declined.
Instagram confirmed it’s testing a new feature called Limits that would allow users to lock down their accounts in a moment of crisis. Found in privacy settings, users could quickly toggle on options to limit the ability for new followers or accounts who don’t follow you to comment or message you. The Limits could be applied for a set period of time you specify, in terms of days or even weeks.
Facebook launched a new tool available to U.S. Facebook Groups that allows users to ask for prayers. The prayer request tool could help drive engagement on the platform by turning into a product something users were already doing. Facebook’s head of faith partnerships told Reuters COVID gave new urgency to the building of the feature.
TikTok ads get more tools and upgrades. TikTok partnered with Vimeo to integrate the latter’s video tools with the TikTok platform. The deal gives SMBs the tools they need to create effective video ads via Vimeo’s AI-driven production tool, Vimeo Create, and the ability to publish ads directly into TikTok’s Ad Manager. The companies also collaborated on custom video templates optimized for TikTok. The video app also launched Spark Ads, which allow brands to use existing posts from influencers in their ad campaigns.
Instagram added new controls that allow users to limit “sensitive” content in the app’s Explore tab. The feature appears in the settings menu and lets users choose to allow or limit content that could be “upsetting or offensive,” or “limit even more.”
Instagram also began testing a new “collab” feature in India and the U.K. that lets users invite another account as a collaborator on posts or Reels. If the other person accepts, both accounts will appear in the header of the post or Reel.
Twitter is killing Fleets, its misguided effort to offer its own version of “Stories” in an app where content flows so quickly it effectively already feels “ephemeral,” even if the posts don’t auto-delete. Twitter hoped Stories would give hesitant users a place they felt comfortable posting, but that didn’t happen. The feature will be removed on August 3.
Tumblr’s community lashed out at the company’s new subscription feature, now in beta, that would allow bloggers to get paid for their content. The system, called Post+, offers the ability to paywall content, which subscribers can pay for at price points of $3.99, $5.99 or $9.99 per month. But some angry Tumblr users didn’t like the idea of paying, or at least, not being able to pay the blogger directly without the company taking a cut. They harassed and even sent death threats to one early tester. (Perhaps it’s time to move to Substack?)
WhatsApp is testing multi device support that works without the phone. The company recently rolled out a limited public beta that will allow users to use the service on up to four non-phone devices without having the registered phone switched on or otherwise connected to the internet.
Facebook Messenger introduced “soundmojis,” which are, as you’d expect, emojis that include sound. The sounds include laughter and applause as well as those sourced from pop culture — like snippets from Netflix’s “Bridgerton,” movies like “F9,” and various musicians. It also later added a search bar for emoji reactions, and a recently used emojis section.
Streaming & Entertainment
Clubhouse opens to all. The pandemic’s favorite audio chat app Clubhouse this week exited beta and become publicly available to everyone. That means users no longer need to know someone with an invite in order to sign up. The app continues to grow thanks to its Android release. In June, the app was installed 7.7 million times across iOS and Android. It also just launched an in-app messaging feature called Backchannel to allow users to chat both one-on-one and in groups as they host or listen.
Apple Music updated its Android app to add support for Spatial Audio and Lossless Audio. The Dolby Atmos-powered Spatial Audio feature requires a compatible phone, however, and even some Pixel devices don’t qualify.
TikTok found to drive music discovery. A recent study of around 1,500 TikTok users found that 75% discovered artists on the video app, and 63% said TikTok was a source for music they hadn’t heard before.
Spotify partnered with Facebook-owned Giphy to connect users to artists’ music through GIFs. The new GIFs will allow users to click a button to hear the artist’s songs on Spotify directly. The GIFs can be found in the Giphy mobile app or on the web.
Triller, the one-time TikTok rival that has since expanded into PPV events, has now moved into long-form video, including both prerecorded and live shows. As part of this effort, Triller livestreamed the Essence Festival of Culture on its app.
YouTube added the ability for users to directly pay creators for their videos through a new feature called Super Thanks. This is YouTube’s fourth Paid Digital Good alongside Super Chat, Super Stickers and channel subscriptions, and is the first that lets fans tip creators for uploads instead of just livestreams.
HBO Max partnered with Snap to allow Snapchat users to stream a selection of free episodes inside the Snapchat app with their friends. That means users can both stream and chat with others as they watch, and even react with Bitmoji.
Top gaming title and award winner Genshin Impact released its 2.0 update on Android devices. This update brings cross-save functionality for all platforms, a brand-new region called Inazuma and the new Thunder Sojourn event, as well as new characters, stories and weapons.
Facebook bypassed building a native iOS app for its cloud gaming service and instead launched to the web at fb.gg. The company did not want to go the App Store route due to Apple’s restrictions on apps that offer app stores of sorts and its commissions on in-app purchases.
Health & Fitness
A poll suggests around 20% of U.K. adults have now deleted the NHS COVID app, most because they want to avoid orders that would have them self-isolate. Among younger users ages 18 to 34, more than one-third had removed the app.
Duolingo said it aims to be valued as much as $3.41 billion in its U.S. IPO, with 5.1 million shares that will be offered between $85 and $95 each, raising more than $485 million at the top end of the range.
Amazon’s Kindle app launched a serialized fiction store called Kindle Vella, which will allow readers to unlock episodic, self-published stories via in-app purchases that range from $2 for 200 tokens to up to $15 for 1,700 tokens. The Wattpad-like feature is only available on the Kindle iOS app for the time being.
Chrome for iOS lets you lock your private tabs. The new version rolled out support for using either Face ID or Touch ID to lock incognito tabs, along with other features, like full-page screenshots, and more.
Google’s iOS search app now lets you choose an option to delete your last 15 minutes of search history — perfect for those times when you forgot to launch an incognito tab.
Government & Policy
China has given 145 apps until July 26 to take corrective measures over what authorities said was their illegal collection of user information by misleading customers or by requesting excessive permissions. Apps from Amazon, ByteDance, NetEase, Tencent and others are among those being called out by Beijing in the crackdown.
China’s most popular fitness app, Keep, backed by SoftBank and Tencent, pulled its U.S. IPO after Chinese regulators announced an investigation into data security concerns at ride-hailing app Didi. The move indicates that China’s probe is having larger impact on the stock market, as China’s biggest podcasting platform, Ximalaya, also recently canceled its U.S. IPO.
Facebook escaped an EU ban on its use of WhatsApp customer data but will face an investigation of its new terms of service that sparked customer outrage. The European Data Protection Board said the new practices must be examined in a “swift” fashion by the EU privacy watchdog.
Security & Privacy
A Catholic priest was outed by way of his phone’s location data found in a data set from a data vendor. This data is commonly aggregated and sold by data vendors, and can then be analyzed for timestamped location data. The signals collected on the priest’s phone were gathered from Grindr, and tracked to his home and other bars and clubs.
Reports found that military-grade spyware developed by Israeli firm NSO Group and licensed to governments for tracking terrorists and criminals was used to hack the phones of journalists, activists, politicians and other business executives, whose phones appeared on a list of 50,000 numbers. Amnesty International has now provided a toolkit that can help people identify if their phones had been among those targeted.
Funding and M&A
Voice-based social app Zebra raised $1.1 million in a pre-seed round for its messaging app that pairs photos with voice chat. Reddit co-founder Alexis Ohanian’s early-stage venture firm Seven Seven Six led the round.
Sololearn raised $24 million led by Drive Capital for its Duolingo-like coding education app. The app delivers short bursts of bite-sized content and offers a community of helpers and influencers, not formal teachers.
Belarus-based video editing app VOCHI raised $2.4 million in a late-seed round after growing its app to over 500,000 MAUs and achieving a $4 million+ annual run rate in a year’s time. The company now has 20,000 paid subscribers for its advanced filters and video effects, but makes 60% of its effects catalog available for free.
Instant grocery delivery app Gopuff is raising $750 million at a $13.5 billion valuation, according to an SEC filing, but sources say the fundraise is higher — $1 billion at a $15 billion valuation.
Investment app Titan raised $58 million in Series B funding led by Andreessen Horowitz (a16z), valuing the business at $50 million. The Robinhood rival has 30,000 users and is also backed by General Catalyst, BoxGroup, Ashton Kutcher’s Sound Ventures and a group of professional athletes and celebrities including Odell Beckham Jr., Kevin Durant, Jared Leto and Will Smith.
Fitness app HealthifyMe raised $75 million in Series C funding from LeapFrog and Khosla Ventures to grow its user base in India, Southeast Asia and North America. The app has around 1,500 trainers and coaches on the platform, with plans to add 1,000 more to support its expansion.
Free-to-play games publisher Tilting Point raised $235 million to fund its business of acquiring users for partnered games, or what the company refers to as its “progressive publishing model.” The company borrows from its line of credit to fuel advertising for games that show promise, allowing them to grow users and revenues, and then shares in the growth that it achieves.
Virtual and in-person care app Carbon Health raised $350 million at a valuation of $3.3 billion in a round led by Blackstone’s Horizon platform. The company has 80 clinics across the U.S.
Yoobic raised $50 million in Series C funding for its chat and communications app aimed at frontline service workers. Highland Europe led the round. The startup works with 300 brands across 80 countries.
Travel rewards app Miles raised $12.5 million in Series A funding in a round led by Scrum Ventures that included Japan Airlines, Translink Capital and others. The app aims to offer travel rewards, with a focus on clean transportation.
Fortnite and Unreal Engine maker Epic Games bought New York-based Sketchfab, a 3D model sharing platform.
Fintech app M1 Finance raised $150 million in a SoftBank-led Series E, valuing the business at $1.45 billion. The app offers automated investing, borrowing and banking/spending accounts, and has grown to $4.5 million assets under management.
Mobile.dev raised $3 million in seed funding from Cowboy Ventures and others for its service that aims to catch bugs and errors in apps before they launch. The two-person team includes a former Uber engineer and has already bagged Reddit as a client.
On-demand coworking space app Deskimo gets Y Combinator backing for its app currently available in Singapore and Hong Kong that helps remote workers find alternative spaces to work at times, like the occasional meeting.
London-based financial “super app” Revolut raised $800 million in Series E funding co-led by Softbank Vision Fund 2 and Tiger Global, valuing the business at $33 billion. This makes Revolut the most valuable fintech in the U.K.
Indian startup Inshorts, maker of a news aggregator app and a social media app called Public, raised $60 million in a new round led by Vy Capital, valuing the business at $550 million.
Miami’s Play2Pay raised $13 million in Series A funding led by Telesoft Partners to convert mobile user engagement into bill payments. The company offers a way for consumers to lower their bills by playing mobile games, watching videos and competing in challenges and surveys.
South Korea’s largest travel app Yanolja Co. raised $1.7 billion in funding from SoftBank. The app began as a hotel booking service and has since expanded to include transportation and leisure activities.
Venezuela-based delivery app Yummy raised $4 million to expand its delivery operations across Latin America. Backers included Y Combinator, Tinder co-founder Justin Mateen, Canary, Hustle Fund, Necessary Ventures and the co-founders of TaskUs. The company has connected with over 1,200 merchants and completed over 600,000 deliveries. It now plans to move into ridesharing.
Tumblr and WordPress.com owner Automattic acquired the popular podcast app Pocket Casts, which had sold to a combined group comprised of WNYC, NPR, WBEZ and This American Life back in 2018. The app went up for sale in January, after NPR reportedly lost $800,000 on it the year prior.
Israeli AI-driven health app Sweetch raised $20 million in Series A round led by Entreé Capital. The app encourages users to change their behaviors using AI smarts, after learning about your lifestyle through mobile sensors. The app is distributed through health organization partners, not the App Store.
Skate City: Tokyo
Apple Arcade has added a handful of reimagined classic games in recent days, including an updated version of Alto’s Odyssey, called Alto’s Odyssey: The Lost City, which adds a new locale and other features. This week, Apple Arcade added a new version of Snowman’s popular game, Skate City. The expansion coincides with the start of the Olympic Games in Tokyo, and includes 21 new challenges, 30 new goals, new soundtracks and more. Another classic, Tetris Beat, is on the way soon.
Image Credits: HalloApp
Two early WhatsApp employees have launched a private social networking app called HalloApp on both iOS and Android. The ad-free app is somewhat similar to WhatsApp as it also allows for encrypted, private chats with friends and family, including group chats. The app also features a Home feed with posts from friends. The company plans to eventually monetize via subscriptions if it gains traction.
Image Credits: Anyone
Audio app Anyone launched its “marketplace for advice” app on iOS and Android after previously operating in a closed beta. The app allows users to pay for access to busy people whose advice they’d like to seek out, but limits calls to just five minutes. (Advice givers can opt to donate the money to charity, if they don’t want to profit from the help they’re giving.) The company claims to vet advisors before they’re allowed to offer calls, in order to keep the advice on the platform high-quality.
Image Credits: Streamlabs
Streamlabs, a maker of livestreaming software, launched a new iOS app that allows creators to easily turn their Twitch clips into a format that works on TikTok, Instagram Reels, YouTube Shorts and Facebook. The app works by allowing streamers to enter the URL of a clip, selecting the output format (landscape, vertical or square) and choosing a pre-loaded layout. You can also crop the clip, blur the background and select from different layouts depending on which frames you want to feature. The app is free with a subscription of $4.99/mo or $49.99/yr to remove the watermark and add more features, including higher-quality exports.
This remains one of the most annoying app store rules and it should go away. https://t.co/i5oQ27uTaU
— Sean Heber (@BigZaphod) July 22, 2021
The thrill of a new app idea… pic.twitter.com/hLzcYeUheY
— Heidi Helen Pilypas (@heidi_helen) July 22, 2021
Cannot wait to see how the App Store submission will go with Apple.
Digital services (to date) cannot be paid in anyway with anything else but in app purchases. https://t.co/y32N3hPc7X
— Ouriel Ohayon (@OurielOhayon) July 23, 2021
There are scam apps… Then there's The League dating app which charges a mind-boggling $999.99/week for a VIP subscription! Literally had to double check to make sure it wasn't a typo. pic.twitter.com/pPzKXtsQe3
— Zach (@zachshakked) July 23, 2021