<span>Monthly Archives</span><h1>July 2019</h1>
    Startups

    Voyant Photonics raises $4.3M to fit lidar on the head of a pin

    July 16, 2019

    Lidar is a critical method by which robots and autonomous vehicles sense the world around them, but the lasers and sensors generally take up a considerable amount of space. Not so with Voyant Photonics, which has created a lidar system that you really could conceivably balance on the head of a pin.

    Before getting into the science, it’s worth noting why this is important. Lidar is most often used as a way for a car to sense things at a medium distance — far away, radar can outperform it, and up close, ultrasonics and other methods are more compact. But from a few feet to a couple hundred feed out, lidar is very useful.

    Unfortunately, even the most compact lidar solutions today are still, roughly, the size of a hand, and the ones ready for use in production vehicles are still larger. A very small lidar unit that could be hidden on every corner of a car, or even inside the cabin, could provide rich positional data about everything in and around the car with little power and no need to disrupt the existing lines and design. (And that’s not getting into the many, many other industries that could use this.)

    Lidar began with the idea of, essentially, a single laser being swept across a scene multiple times per second, its reflection carefully measured to track the distances of objects. But mechanically steered lasers are bulky, slow and prone to failure, so newer companies are attempting other techniques, like illuminating the whole scene at once (flash lidar) or steering the beam with complex electronic surfaces (metamaterials) instead.

    One discipline that seems primed to join in the fun is silicon photonics, which is essentially the manipulation of light on a chip for various purposes — for instance, to replace electricity in logic gates to provide ultra-fast, low-heat processing. Voyant, however, has pioneered a technique to apply silicon photonics to lidar.

    In the past, attempts in chip-based photonics to send out a coherent laser-like beam from a surface of lightguides (elements used to steer light around or emit it) have been limited by a low field of view and power because the light tends to interfere with itself at close quarters.

    Voyant’s version of these “optical phased arrays” sidesteps that problem by carefully altering the phase of the light traveling through the chip. The result is a strong beam of non-visible light that can be played over a wide swathe of the environment at high speed with no moving parts at all — yet it emerges from a chip dwarfed by a fingertip.

    LIDAR Fingertip Crop

    “This is an enabling technology because it’s so small,” said Voyant co-founder Steven Miller. “We’re talking cubic centimeter volumes. There’s a lot of electronics that can’t accommodate a lidar the size of a softball — think about drones and things that are weight-sensitive, or robotics, where it needs to be on the tip of its arm.”

    Lest you think this is just a couple yahoos who think they’ve one-upped years of research, Miller and co-founder Chris Phare came out of the Lipson Nanophotonics Group at Columbia University.

    “This lab basically invented silicon photonics,” said Phare. “We’re all deeply ingrained with the physics and devices-level stuff. So we were able to step back and look at lidar, and see what we needed to fix and make better to make this a reality.”

    The advances they’ve made frankly lie outside my area of expertise, so I won’t attempt to characterize them too closely, except that it solves the interference issues and uses a frequency modulated continuous wave technique, which lets it measure velocity as well as distance (Blackmore does this as well). At any rate, their unique approach to moving and emitting light from the chip lets them create a device that is not only compact, but combines transmitter and receiver in one piece, and has good performance — not just good for its size, they claim, but good.

    “It’s a misconception that small lidars need to be low-performance,” explained Phare. “The silicon photonic architecture we use lets us build a very sensitive receiver on-chip that would be difficult to assemble in traditional optics. So we’re able to fit a high-performance lidar into that tiny package without any additional or exotic components. We think we can achieve specs comparable to lidars out there, but just make them that much smaller.”

    The chip-based lidar in its test bed.

    It’s even able to be manufactured in a normal fashion like other photonics chips. That’s a huge plus when you’re trying to move from research to product development.

    With this first round of funding, the team plans to expand and get this tech out of the lab and into the hands of engineers and developers. The exact specs, dimensions, power requirements and so on are all very different depending on the application and industry, so Voyant can make decisions based on feedback from people in other fields.

    In addition to automotive (“It’s such a big application that no one can make lidar and not look at that space,” Miller said), the team is in talks with numerous potential partners.

    Although being at this stage while others are raising nine-figure rounds might seem daunting, Voyant has the advantage that it has created something totally different from what’s out there, a product that can safely exist alongside popular big lidars from companies like Innoviz and Luminar.

    “We’re definitely talking to big players in a lot of these places, drones and robotics, perhaps augmented reality. We’re trying to suss out exactly where this is most interesting to people,” said Phare. “We see the evolution here being something like bringing room-size computers down to chips.”

    The $4.3 million raised by Voyant comes from Contour Venture Partners, LDV Capital and DARPA, which naturally would be interested in something like this.


    Source: Tech Crunch Startups | Voyant Photonics raises .3M to fit lidar on the head of a pin

    Startups

    Verified Expert Growth Marketing Agency: TrueUp

    July 16, 2019

    It was the perfect storm when CEO and Founder Liam Reynolds finally decided to start TrueUp, a data-driven growth marketing agency/consultancy based in London. After decades of working for large creative advertising agencies, Liam quit his job right around the beginning of Silicon Valley’s growth hacking trend and plunged headfirst into running growth for early-stage startups.

    TrueUp has since evolved from a one-man shop into an award-winning agency with a team of dedicated data, paid marketing and conversion specialists. Learn more about how they collaborate with clients and help them develop short- and long-term growth frameworks.

    TrueUp’s approach to growth marketing:

    “Rather than just saying ‘Look at these amazing results we’ve achieved,’ we would say, ‘Look, these are your growth opportunities, this is the process you need and here’s the framework unlock your true potential,’ We would build business models around this to show the opportunity in numbers, revenue and ROI.

    Our approach to growth is anchored in delivering the right message to the right target audience in the right channel at the right time. It sounds simple but we’re amazed at how wrong people get this.

    So we’ve created our own bespoke methodologies and frameworks to really explore and identify these hidden killer messages that drive action. We’ve built our own tools that allow us to do a lot of high-tempo, high-intensity testing.

    It’s quite common that we have 500 to 600 tests running concurrently on Facebook for any given client. We’re continuously testing, learning, iterating, improving. As a result we’ve achieved some amazing results for our clients.”

    Advice to founders:

    “We approached True Up to help us establish and scale a UK paid marketing function. The team was highly professional from their initial pitch through the end of the project.” Maninder Saini, SF, International Operations Manager, Quizlet, Inc.

    “For earlier stage startups, it’s to focus on achieving product-market fit and having awesome user experiences before worrying about growth. We worked with and mentored a lot of startups that immediately jump to, “Look I need to get X number of customers in X months.” However their products/services are often seriously lacking. This creates very weak foundations for growth. So their efforts would be better spent on creating products that genuinely meet a customer need. Once they’ve achieved product-market fit, it’s to communicate benefits not features. There’s always at least one killer message that cuts through but more often than not it’s hidden and not what the founders think it is. So a structured test program to explore this is also very much needed!”

    Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup growth marketing agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already. 


    Interview with TrueUp CEO & Founder Liam Reynolds

    Yvonne Leow: Tell me about how you got into growth marketing and why you decided to start TrueUp.

    Liam Reynolds: I started my career at a data marketing company called Dunnhumby. They were famous for managing the data science and intelligence behind TESCO’s Club Card, a very large loyalty program in the UK.


    Source: Tech Crunch Startups | Verified Expert Growth Marketing Agency: TrueUp

    Startups

    China startup deals shrink as fundraising for investors plummets

    July 16, 2019

    Chinese startups continue to weather tough times as private investors, caught in a cash crunch, are concentrating money into fewer deals.

    China’s deal-making activity for startups in the six months ended June halved from a year ago to 1,910, according to data from consulting firm ChinaVenture’s research arm. The amount invested in domestic startups during the first half of 2019 plummeted 54% to $23.2 billion.

    The slide in startup investment comes as the money behind the money shrinks amid a cooling economy in China that is exacerbated by a trade war with the U.S. Fundraising for investors was already showing signs of slowdown a year earlier. In the first half of this year, private equity and venture capital firms in China secured 30% less than what they had raised over the same period a year ago, amounting to a total of $54.44 billion; 271 funds managed to raise, down 52%.

    That money from limited partners is also flowing to a small rank of investors. Twelve institutions accounted for 57% of all the capital landed by VCs and PEs in the period. Investment coffers that have gotten a big boost include the likes of TPG Capital, Warburg Pincus, DCG Capital, Legend Capital and Source Code Capital.

    Healthcare was the most-backed sector during the six months, although proptech startups scored the biggest average deal size. Some of the highest funded companies from the period were artificial intelligence chip maker Horizon Robotics, shared housing upstart Danke and China’s Starbucks challenger, Luckin.


    Source: Tech Crunch Startups | China startup deals shrink as fundraising for investors plummets

    Tech News

    Highlights from Facebook’s Libra Senate hearing

    July 16, 2019

    Facebook will only build its own Calibra cryptocurrency wallet into Messenger and WhatsApp, and will refuse to embed competing wallets, the head of Calibra David Marcus told the Senate Banking Committee today. While some, like Senator Brown, blustered that “Facebook is dangerous!,” others surfaced poignant questions about Libra’s risks.

    Calibra will be interoperable, so users can send money back and forth with other wallets, and Marcus committed to data portability so users can switch entirely to a competitor. But solely embedding Facebook’s own wallet into its leading messaging apps could give the company a sizable advantage over banks, PayPal, Coinbase or any other potential wallet developer.

    Other highlights from the “Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations” hearing included Marcus saying:

    • The U.S. should “absolutely” lead the world in rule-making for cryptocurrencies
    • The Libra Association chose to be headquartered in Switzerland “not to evade any responsibilities of oversight” but since it’s where international financial groups like the Bank for International Settlements, though Calibra will be regulated by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network
    • “Yes,” Libra will comply with all U.S. regulations and not launch until the U.S. lawmakers’ concerns have been answered
    • “You will not have to trust Facebook” because it’s only one of 28 current and potentially 100 or more Libra Association members and it won’t have special privileges
    • “Yes I would” accept compensation from Facebook in the form of Libra as a show of trust in the currency
    • It is “not the intention at all” for Calibra to sell or directly monetize user data directly, though if it offered additional financial services in partnership with other financial organizations it would ask consent to use their data specifically for those purposes
    • Facebook’s core revenue model around Libra is that more online commerce will lead businesses to spend more on Facebook ads
    • When repeatedly asked why Facebook is pushing Libra to happen, Marcus noted that blockchain technology is inevitable and if the U.S. doesn’t lead in building and regulating it, the tech will come from places “out of reach of our national security apparatus,” raising the spectre of China

    But Marcus also didn’t clearly answer some critical questions about Libra and Calibra, and may be asked again when he testifies before the House Financial Services Committee tomorrow.

    Unanswered Questions

    Chairman Crapo asked if Facebook would collect data about transactions made with Calibra that are made on Facebook, such as when users buy products from businesses they discover through Facebook. Marcus instead merely noted that Facebook would still let users pay with credit cards and other mediums as well as Calibra. That means that even though Facebook might not know how much money is in someone’s Calibra wallet or their other transactions, it might know how much they paid and for what if that transaction happens over their social networks.

    Senator Tillis asked how much Facebook has invested in the formation of Libra. TechCrunch has also asked specifically how much Facebook has invested in the Libra Investment Token that will earn it a share of interest earned from the fiat currencies in the Libra Reserve. Marcus said Facebook and Calibra hadn’t determined exactly how much it would invest in the project. Marcus also didn’t clearly answer Senator Toomey’s question of why the Libra Association is considered a not-for-profit organization if it will pay out interest to members.

    Senator Menendez asked if the Libra Association would freeze the assets if terrorist organizations were identified. Marcus said that Calibra and other custodial wallets that actually hold users’ Libra could do that, and that regulated off-ramps could block them from converting Libra into fiat. But this answer underscores that there may be no way for the Libra Association to stop transfers between terrorists’ non-custodial wallets, especially if local governments where those terrorists operate don’t step in.

    Perhaps the most worrying moment of the hearing was when Senator Sinema brought up TechCrunch’s article citing that “The real risk of Libra is crooked developers.” There I wrote that Facebook’s VP of product Kevin Weil told me that “There are no plans for the Libra Association to take a role in actively vetting [developers],” which I believe leaves the door open to a crypto Cambridge Analytica situation where shady developers steal users money, not just their data.

    Senator Sinema asked if an Arizonan was scammed out of their Libra by a Pakistani developer via a Thai exchange and a Spanish wallet, would that U.S. citizen be entitled to protection to recuperate their lost funds. Marcus responded that U.S. citizens would likely use American Libra wallets that are subject to protections and that the Libra Association will work to educate users on how to avoid scams. But Sinema stressed that if Libra is designed to assist the poor who are often less educated, they could be especially vulnerable to scammers.

    Crypto openness versus a dangerous Wild West

    Overall, the hearing was surprisingly coherent. Many Senators showed strong base knowledge of how Libra worked and asked the right questions. Marcus was generally forthcoming, beyond the topics of how much Facebook has invested in the Libra project and what data it will glean from transactions atop its social network.

    Some of the top concerns, such as terrorist money laundering, encompass the entire cryptocurrency ecosystem and can’t be solved even by strong rules around Libra. Little regard was given to how Libra could improve remittance or cut transaction fees that see corporations profit off families and small businesses.

    Still, if Libra actually becomes popular and evolves as an open ecosystem full of unvetted developers, the currency could be used to facilitate scams. Precisely because of the lack of trust in Facebook that many Senators harped on, consumers could go seeking Libra wallet alternatives to the company that might push them into the hands of evildoers. The Libra Association may need to shift the balance further toward safety and away from cryptocurrency’s prevailing philosophies from openness. Otherwise, the frontiers of this Wild West could prove dangerous, even if its civilized regions are well-regulated.

    Source: Tech Crunch Mobiles | Highlights from Facebook’s Libra Senate hearing

    Startups

    Quirk wants to make cognitive behavioral therapy more accessible

    July 16, 2019

    Quirk, a YC-backed company, is looking to bring cognitive behavioral therapy (CBT) to more people suffering from anxiety or depression.

    CBT aims to lessen or stop harmful behavior by changing the way people think, stopping them from falling into established patterns of negatively distorting their reality to justify or account for unhelpful habits.

    “CBT has 40 years of research behind it,” says CEO and founder Evan Conrad. “I’ve had severe panic attacks my whole life and saw different therapists who tried what I now know is CBT. I assumed it was a pseudo science. It wasn’t until 10 months ago that I re-discovered CBT on my own and learned about its efficacy. It’s the gold standard.”

    The app helps users practice one of the most common exercises in CBT: the triple-column technique.

    Here’s how it works:

    Users jump into the app whenever they have anxiety or a depressive thought to record it. They then identify any distortions that apply to that thought, such as Catastrophizing, Magnification of the Negative, Fortune Telling or Over-Generalization, among others. From there, the user can challenge the thought with reasons why that thought might have been illogical to begin with. Finally, the user replaces the thought with something more reasonable.

    For example, if I was worried about not getting a response to a text, I might believe (irrationally) that it has something to do with how that person feels about me, rather than the more obvious explanation: they’re just busy.

    The hope of CBT is that identifying thought distortions and manually replacing them with beliefs grounded in reality retrains the brain to experience the world in a realistic way and relieves patients from their depression and/or anxiety.

    Conrad says that he went from having two anxiety attacks a week to two every six months.

    The problem that Quirk is trying to solve is two-fold. First, people may not know the benefits or the empirical data supporting CBT. Second, the process of manually recording this on pen and paper can be more tedious and feel less private out in a public space.

    Quirk’s attempt to solve these problems is to make CBT accessible to more people and to make the process of doing CBT slightly more private.

    We asked Conrad about the potential negative affects of practicing CBT without the oversight of a mental health professional.

    “As for self-administered CBT, we’ve run this by a number of therapists and all of them have said it’s generally a net-benefit,” Conrad said via email. “What would be harmful is if someone with a severe condition decided that they should use Quirk instead of seeing a therapist. But in practice we’ve seen the opposite effect. People who would have otherwise done nothing about their condition use Quirk as a ‘first step’ towards therapy or will use Quirk when they would otherwise have no option (either because there isn’t a treatment in their country/area or because they can’t afford it).”

    Dr. Daniel J. Fridberg, a practicing CBT psychologist from the University of Chicago, says that the triple-column technique is a great CBT exercise, but that it’s just part of the whole package of Cognitive Behavioral Therapy. He also said that the only way to know if a product like this can do harm is through a study, but that CBT itself is an evidence-based psychotherapy and has been proven effective.

    “CBT is an effective, time-limited, reasonably cost-effective psychotherapy for things like depression, anxiety, substance abuse, etc,” said Dr. Fridberg. “The problem is that finding a good CBT therapist who delivers evidence-based treatment isn’t always easy in smaller communities where there isn’t easy access to a research hub. In some respects, an app that is packaged in an attractive way gets people’s attention and promotes CBT as effective is a good thing.”

    Dr. Fridberg also stated that anyone suffering from an issue that’s disrupting their day-to-day functioning should seek professional help.

    Conrad says that he hopes Quirk can be a jumping off point for folks suffering from anxiety and depression, with the app suggesting that those suffering seek professional help in conjunction with using the app. He also shared that Quirk hopes to be able to connect users to professionals in their area as soon as they have the scale to do so.

    Quirk costs $4/month for users.


    Source: Tech Crunch Startups | Quirk wants to make cognitive behavioral therapy more accessible

    Startups

    Apply to TC Top Picks before the deadline & exhibit free at Disrupt SF 2019

    July 16, 2019

    Does your company have what it takes to be part of an elite cadre of early-stage startups and exhibit for free at Disrupt San Francisco 2019? There’s only one way to know for sure, but time is running out. Apply to be a TC Top Pick now — before the application window closes for good at 5:00 p.m. (PT) on July 19.

    Why should you apply? For starters, it doesn’t cost anything, and all TC Top Picks receive a free Startup Alley Exhibition Package good for one full day of exhibiting in Startup Alley, the heart of every Disrupt. It’s the intersection of tech present and tech future — where more than 1,200 pre-Series A startups and sponsors exhibit their products, platforms and services. It’s a breeding ground of opportunity, and you never know who you might meet and where that connection might lead.

    TechCrunch editors vet all applications and choose up to five startups in each of these (and only these) tech categories: AI/Machine Learning, Biotech/Healthtech, Blockchain, Fintech, Mobility, Privacy/Security, Retail/E-commerce, Robotics/IoT/Hardware, SaaS and Social Impact/Education.

    TC Top Picks also receive three Founder passes and plenty of other perks, starting with the VIP treatment. You’ll exhibit in a dedicated space within Startup Alley, and we promote the Top Pick startups in our pre-conference marketing. Everyone wants to see who made the cut, including journalists covering the show and investors looking to add to their portfolios.

    In a classic “but wait, there’s more” moment, a TechCrunch editor conducts a live interview with each Top Pick on the Showcase Stage in Startup Alley. We record the interviews for posterity and promote them across our social media platforms. That’s the kind of marketing tool that keeps on giving.

    Take a page from DiaMonTech’s playbook. The company, the maker of a non-invasive glucose monitoring device, earned a Top Pick designation for Disrupt Berlin 2018. Markus Teuber, head of strategic partnerships, had this to say about the Top Pick experience.

    “Exhibiting as a TC Top Pick helped us build credibility right away, and it still pays off during pitches as an anchor point for further discussion. The interview and media coverage helped us generate awareness for our groundbreaking approach, and it also helped us identify leads and build substantial cooperation agreements.”

    Pro Tip: Every startup that exhibits in Startup Alley has a shot to win a Wild Card entry to Startup Battlefield. Yet another great reason to apply to be a TC Top Pick.

    Disrupt San Francisco 2019 takes place October 2-4. Don’t miss out on this opportunity to place your startup in the Disrupt spotlight. Apply to be a TC Top Pick before the deadline clocks out precisely at 5:00 p.m. (PT) on July 19. Show us what you’ve got!

    Is your company interested in sponsoring or exhibiting at Disrupt San Francisco 2019? Contact our sponsorship sales team by filling out this form.


    Source: Tech Crunch Startups | Apply to TC Top Picks before the deadline & exhibit free at Disrupt SF 2019

    Startups

    Learn how to change banking one dollar at a time at Disrupt SF

    July 16, 2019

    Fintech startups are the hot new thing. Everybody wants to reinvent the way you manage money, invest and pay for things. That’s why we’re inviting three fintech experts to TechCrunch Disrupt SF to help you learn everything about the space.

    They know that the bank of the future is not necessarily a bank and that the payment method of the future is not necessarily a card. And they’re going to tell you all about it.

    First up is Chris Britt, the founder and CEO of Chime. While there are plenty of challenger banks in Europe, Chime is a rare success in the U.S. market.

    The company has managed to attract over 3 million customers and $300 million in funding with a simple value proposition — a better user experience, an automatic way to save money and no fees for basic features. But Chime isn’t an overnight success. Britt has amassed a ton of experience in retail banking as chief product officer at Green Dot and as a senior product leader at Visa.

    We also invited Angela Strange, a general partner at VC firm Andreessen Horowitz . As a founder of a fintech startup, you might want to know what investors are looking for. And Strange is an expert on this front.

    She focuses on financial services of all sorts, including insurance, real estate and increasing inclusivity. She’s a board observer at Branch, Earnin, HealthIQ, Mayvenn, PeerStreet and Point. As you can see, it’s an impressive portfolio, and she has encountered a ton of different situations in the fintech industry.

    And finally, Omer Ismail from Goldman Sachs has seen both sides of the banking coin. After many years working in private equity investing and investment banking, he was asked to lead an unusual team — the consumer business of Goldman Sachs.

    Goldman Sachs hasn’t been a powerful brand when it comes to consumer products — until very recently. The company successfully launched Marcus, a banking product focused on personal loans and online savings with high interest rates, and Clarity Money, a mobile app that acts as a financial dashboard.

    More recently, Ismail was in charge of the surprising partnership with Apple for the Apple Card. It’s clear that he knows where the industry is heading, so you’ll want to learn a few tips from Ismail.

    Buy your ticket to Disrupt SF to listen to this discussion — and many others. The conference will take place on October 2-4 at the Moscone Center in San Francisco.

    In addition to fireside chats and panels, like this one, new startups will participate in the Startup Battlefield to compete for the highly coveted Battlefield Cup.

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    Source: Tech Crunch Startups | Learn how to change banking one dollar at a time at Disrupt SF

    Startups

    3 lessons from Roblox’s growth to gaming dominance

    July 16, 2019

    Our recently published EC-1 on Roblox recounts the origin story and growth prospects of the company. But there’s one more piece to the story: what Roblox’s impact will be on gaming and the broader startup industry, if the company manages to multiply its current 90 million users.

    Sources: TechCrunch, VentureBeat, Roblox

    We’ve distilled three key ideas out of the EC-1 — lessons that may apply not only to game developers and gaming entrepreneurs, but also to the broader startup industry.

    Lesson 1: UGC is a missed opportunity in games

    Roblox has shown that user-generated content (UGC) is a missed opportunity for much of the game industry. The company aspires, in a way, to be the YouTube of games. And it is succeeding, with 50 million experiences from 2 million creators to date.

    The game industry generally has two problems with UGC. One is the games themselves: AAA games today are too complex, and lack the flexibility and simplicity needed for robust UGC. Roblox shows that a simpler look and feel is a valid alternative to today’s super-sized, beautiful AAA games. (Minecraft proved much the same.)

    The other problem is the greater complexity of making games than, say, videos or music. Roblox solved this problem by building its own game engine, which is designed solely to output Roblox-style experiences.

    But increasingly, engines like Unity are capable of accomplishing similar feats: games are getting easier to build. It’s now possible that savvy entrepreneurs could build a platform like Roblox, without building an entire game engine.

    Lesson 2: New opportunities in gaming are still coming

    The game industry is infamously cyclical. New platforms emerge, become promising, then grow overcrowded and competitive. Usually, this cycle relates to hardware (the iPhone, virtual reality helmets, game consoles like the Nintendo Switch) or massive changes in consumer behavior (the emergence of Facebook, the early growth of the internet). But Roblox, a pure software play, shows that exceptions could exist.

    It’s still early days. Roblox reported that it paid out $30 million to game developers in 2017, doubling to $60 million in 2018. Developers receive a quarter of the revenue made from their games, with another quarter covering payment processing and another quarter covering cloud hosting. Its top 10 developers made about $3 million on average each. Seven of its games have also entered a “billion plays” club:

    Adopt Me, a newer game, hit 440,000 concurrent users in June, a new record for the platform.

    When a new platform appears, it’s usually found by amateur developers first. That’s certainly the case with Roblox: its successes are being created almost exclusively by first-time game developers in their teens and twenties. At some point, professional developers are likely to conclude they can do at least as well. The current market is particularly exciting because many games are fairly simple and lightweight — recent breakout hits like Camping 2 and Weight Lifting Simulator 3 are significantly smaller than comparable games on other platforms.

    For entrepreneurs interested in creating new platforms or portals Roblox’s success as a combined game engine and self-contained platform also shows that opportunities still exist — if you have the patience to wait for them to mature.

    Lesson 3: Patience can create amazing growth cycles

    It took Roblox 15 years to grow to its current point. But most of that growth is recent: as seen in the chart above, Roblox experienced 10x growth in about 3 years, from 9 million users in February 2016 to 90 million in April 2019.

    So what went into the decade or so during which Roblox was a much smaller platform? As we tell it in the origin story: a great deal of work, and very little paid acquisition.

    In its early years, Roblox did buy users, to seed a user base while it worked on an impossibly large vision that included a game engine, platform, social features, a creator community, and its own games. But after a few years, it stopped buying users.

    All of its growth since has been organic. That’s from two main sources: word of mouth, and YouTube users who watch one of the many Roblox streamers. Of course, any company can try to do the same. But Roblox had the patience to build a unique product — one which took years of work to even reach partial completion.

    The key to it all was long-term adherence to a long-term goal: the creation of a new category, which it calls “human coexperience”. Today, Roblox still can’t be called part of a new category; it’s a game platform. But with more years of work, it may eventually get there.

    For more on the Roblox story, see Part 1: The Origin Story, and Part 2: The Business Plan.

    Update: TechCrunch corrected “2 million experiences” to be 50 million experiences from 2 million creators. We also provided more context of the revenue breakdown of payments made on Roblox to developers.


    Source: Tech Crunch Startups | 3 lessons from Roblox’s growth to gaming dominance

    Startups

    Newsletter platform Substack raises $15.3M round led by a16z

    July 16, 2019

    Andreessen Horowitz is betting that there’s still a big opportunity in newsletters — the venture capital firm is leading a $15.3 million Series A in Substack.

    To be clear, although Substack started two years ago as a way turn newsletters into a paid subscription business, it’s since added support for podcasts and discussion threads. As CEO Chris Best put it, the goal is to allow writers and creators to run their own “personal media empire.”

    Writers using Substack include Nicole Cliffe, Daniel Ortberg, Judd Legum, Heather Havrilesky and Matt Taibbi. The startup says that newsletters on the platform have now amassed a total of 50,000 paying subscribers (up from 25,000 in October), and that the most popular Substack authors are already making hundreds of thousands of dollars a year.

    Also, a16z’s Andrew Chen — a blogger and newsletter writer himself — is joining the Substack board of directors. In Chen’s view, the startup represents the combination of the old and the new, allowing writers to reach longstanding “passionate online communities” while also pursuing “a new way of doing micro-entrepreneurship,” where they make money directly from their audience.

    “When you combine the two — wow, this is something special,” Chen said.

    Y Combinator, where Substack was incubated, is also participating in the funding.

    Best told me the team consists entirely of the three co-founders — CTO Jairaj Sethi, COO Hamish McKenzie and Best himself — “working out of my living room.” (The three of them are pictured above.) Even with the new funding, Best and McKenzie said they want to grow cautiously.

    “We’re conscious of the writers depending on a reliable and stable Substack for their income,” McKenzie said. “We don’t want to go out there and do a bunch of crazy startup stuff.”

    Still, they will be moving out of that living room and hiring a bigger team. Best also said they have plans to build more “writer success” tools that help creators get the most out of the platform, and to expand into other formats, like video.

    Even as Substack grows, McKenzie said it will maintain a focus on subscription products for “people who are attracted to the idea of owning their relationship with their audience.” Best argued that this approach avoids the incentives that have pushed online news in the direction of “cheap outrage, attention and addiction.”

    He added, “It’s just a better model for creating culture.”

    As for whether the newsletter boom might eventually reach a saturation point, making it harder for new titles to find an audience, Best acknowledged that there’s probably “some finite limit” to the number of newsletters that most readers will subscribe to, but he said, “Even if that’s the case, it can still be a very successful model. The magical thing about paid subscriptions is that you don’t need to have millions of people in your audience.”


    Source: Tech Crunch Startups | Newsletter platform Substack raises .3M round led by a16z

    Startups

    Esports org 100 Thieves raises $35 million in Series B

    July 16, 2019

    100 Thieves has today announced the close of a $35 million Series B funding round. Artist Capital Management led the round, with ACM’s Chief Investment Officer Josh Dienstag joining Mike Sepso, MLG co-founder, on the board of directors. Aglaé Ventures, which is the technology investment firm of Groupe Arnault, controlling shareholder of Louis Vuitton Moet Hennessy (LVMH), also participated in the round.

    CEO and founder Matthew “Nadeshot” Haag confirmed to TechCrunch that this latest round brings 100 Thieves’ post-funding valuation to $160 million, which is up from the $90 million valuation it had in October 2018.

    100 Thieves was founded in 2017. Haag is a former pro gamer and content creator with one of the biggest followings in esports.

    “The most important lesson I’ve learned going from gaming to leadership is ‘over-communicate, over-communicate, over-communicate,’ ” said Haag, explaining that he went from working by himself creating content to working with many people each day. “Making sure we’re all aligned on our goals for each day and each week and each month, to have an open and transparent environment, really builds a culture where everybody enjoys working with one another. Over-communication helps drive success.”

    The org is co-owned by Drake, Dan Gilbert and Scooter Braun, alongside Haag. 100 Thieves has three revenue channels.

    The first is esports. Right now, the organization competes in Call of Duty (where its team has won the last two tournaments), League of Legends and Fortnite (100 Thieves is sending six of its players to the Fortnite World Cup).

    The second channel is content creation. 100 Thieves includes big-name streamers such as Jack “Courage” Dunlop, who has nearly 1.9 million Twitch followers, and Rachell “Valkyrae” Hofstetter, who has more than 800,000 Twitch followers.

    Finally, 100 Thieves has gotten into apparel, with limited-edition hats, sweaters, jackets and t-shirts. As of right now, everything in the 100 Thieves Shop is sold out.

    “What’s hurt me the most is having so many community members not be able to purchase this apparel for themselves,” said Haag. “We want 100 Thieves to be all inclusive. If you want to support us, you should be able to.”

    According to Haag, one goal is to expand into new esports titles — a few titles in consideration include “Counter-Strike: Global Offensive,” “Rainbow 6 Siege” and “Rocket League.”

    Another top-of-mind goal is building out a new HQ facility in Los Angeles that will house the esports, content creation and apparel divisions all under one roof. The 15,000-square-foot facility will include streaming stations, a content production sound stage for 100 Thieves’ two podcasts and will serve as the storefront for 100 Thieves apparel lines.


    Source: Tech Crunch Startups | Esports org 100 Thieves raises million in Series B