Google shuts down its internal Stadia game studios

Published February 1, 2021

When Google originally announced Stadia, its cloud gaming service, the company also announced a first-party game studio. Stadia Games and Entertainment was supposed to release exclusive titles for the new platform. And yet, Google has changed its mind and is now shutting down its internal game studios.

“Given our focus on building on the proven technology of Stadia as well as deepening our business partnerships, we’ve decided that we will not be investing further in bringing exclusive content from our internal development team SG&E, beyond any near-term planned games,” Google Stadia VP and GM Phil Harrison wrote in a blog post.

That’s right, the company has yet to release a single game under the Stadia brand but it’s already over. This is an odd move as Google has made some significant investments in the space. It originally created a studio in Montreal Canada and acquired Typhoon Studios. It then opened another studio in Los Angeles.

Jade Raymond was leading Google’s first-party studios. She has been working in the video game industry for more than 15 years. In particular, she was a producer for Ubisoft in Montreal working on the first Assassin’s Creed games. She also worked for Electronic Arts on an unreleased single-player Star Wars video game.

Today’s news also means that Raymond is leaving Google. Other Google employees working for Stadia Games and Entertainment will move on to new roles.

Going forward, Stadia will focus on third-party games. The company says that Cyberpunk 2077 has been quite popular on the cloud gaming platform for instance. It lets you launch the game on a server in a data center near you and stream the video feed to your device.

Many readers will likely think that Google might shut down Stadia soon as the company has shut down many, many services in the past. The company tries to be reassuring.

“We’re committed to the future of cloud gaming, and will continue to do our part to drive this industry forward. Our goal remains focused on creating the best possible platform for gamers and technology for our partners, bringing these experiences to life for people everywhere,” Harrison writes.

But do you believe him?

Google is creating its own first-party game studio

Gwoop Academy wants to help you get better at video games

Published February 1, 2021

Every sport has its practice drills and exercises to help players hone skills between games. Why would esports be any different?

Gwoop, a startup out of Minnesota, wants to be the place where gamers go to train between matches. They’re building up a collection of free browser-based training tools meant to help you measure and improve vital stats like reaction time, mouse control, and aim, and see how your stats compare to the best.

Some of the training games currently up and running:

Reaction Training: Wait for it … click! As soon as the screen changes from grey to orange, you click the mouse button. The lower your reaction time (measured in milliseconds), the better. Harder levels throw in more colors to fake you out and give you a bit of pause.
Visual Speed: Targets spawn one-at-a-time all around a 2D plane. Click one and another appears. The more targets you click before time runs out, the higher your score.
Keyboard speed: Straightforward keyboard key-finding practice, because any time spent looking at your keyboard is time not spent dodging shots.

Image Credits: Gwoop

Mouse control: If you can’t get your mouse to go where you want it, you can’t aim. Gwoop’s mouse control exercise has you drag a ball through a curved track. If your cursor strays outside the track, the ball returns to the beginning. The more tracks you successfully complete before time is up, the higher your score.
FPS Training Arena: Strafe around a 3D arena (pictured up top), scanning for randomly generated targets and clicking them as they appear. Bonus points for hitting the dead center of a target.

All of the tools are linked back to an analytics dashboard, allowing you to gauge your performance metrics over time. Each skill gets its own leaderboard so you can see, for example, how your average reaction time compares to others worldwide and amongst your friends.

Even in its 3D exercises, Gwoop’s graphics are pretty simple — and that’s intentional. They want it to work for as many players as possible. They’ve got no reason to try to look like a AAA title; the more graphically intense a game is, the more powerful your computer would have to be to run it smoothly. Co-founder Gavin Lee tells me that their goal is to keep it so that “all you need is a computer and the internet. It doesn’t matter if your device is 10 years old.” Even its 2D exercises have switches you can flip to further simplify the graphics and improve performance.

It’s the same reason they’ve built everything to work in the browser: not requiring any downloads means more people can train, with the added benefit for the Gwoop team of not having to worry about maintaining separate Mac/PC clients.

While the existing exercises might seem focused around improving first-person shooter skills, Lee tells me that they’re aiming to be “genre-agnostic” and are planning expansions tailored to other kinds of games. He mentions a “MOBA Arena” in the works meant to help polish skills required for games like League of Legends or DOTA, and another exercise in progress that’s “very Rocket League-centric.” Their training tools seem mostly focused on keyboard/mouse users right now, but they’re working on more functionality for players who prefer controllers.

Image Credits: Gwoop

Gwoop is entirely free to players — so how will they make money? Lee tells me they’ve got two different strategies there: They’ll sell additional advanced analytics tools to teams, and, once they’ve got enough players clicking around, hopefully be able to serve as a platform for esports recruiters. Lee says players should be able to opt-in to having their data shared with potential sponsors and esports teams, with Gwoop getting paid to connect the dots. “All these division one schools have these platforms where you can upload football films and get recruited,” says Lee “we want to become that platform [for esports].”

Why the name “Gwoop”? Is it a bit of super cool gaming lingo, or some sort of acronym? Nope! It was just a quick, memorable domain Lee had been holding onto for decades. “I wish I had a better story for you,” he says, “but I bought the domain in 2002 just because I wanted a five-letter domain that you could pronounce and was available.” It’s okay, Gavin: Most people don’t care why Google is called Google, after all.

The team’s timing is pretty good here. With most people being stuck at home, more people are getting into gaming than ever before. Battle Royale games like Fortnite, PUBG and Apex Legends are blowing up … but it’s hard to get better in a game where you spend the first 10 minutes looting only to get shredded in 10 seconds when a skilled team rotates through. While many titles have dedicated training areas or firing ranges to practice in, they’re usually meant more for quick pre-game warmups and don’t do things like help you track metrics and improvements over time.

Image Credits: Gwoop

The Minneapolis-based team is currently comprised of its three co-founders. It’s self-funded to date, but I’m told a seed round is underway.

Gwoop is currently in semi-closed beta and generally requires an invite to signup, but Lee tells me that the code #TC2021# should let our readers past the signup gate.

Video game spending increased 27% in 2020

Databricks raises $1B at $28B valuation as it reaches $425M ARR

Published February 1, 2021

Another hour, another billion-dollar round. That’s how February is kicking off. This time it’s Databricks, which just raised $1 billion Series G at a whopping $28 billion post-money valuation.

Databricks is a data-and-AI focused company that interacts with corporate information stored in the public cloud.

News of the new round began leaking last week. Franklin Templeton led the round, which also included new investors Fidelity and Whale Rock. Databricks also raised part of the capital from major cloud vendors including AWS, Alphabet via its CapitalG vehicle, and Salesforce Ventures. Microsoft is a previous investor, and it took part in the round as well.

But we’re not done! Other prior investors including a16z, T. Rowe Price, Tiger Global, BlackRock and Coatue were also involved along with Alkeon Capital Management.

Consider that Databricks just raised a bushel of capital from a mix of cloud companies it works with, public investors it wants as shareholders when it goes public and some private money that is enjoying a stiff markup from their last check into the company.

The company has made its mark with a series of four open-source products with a core data lake product call Delta Lake leading the way. You may recall that another hot data lake company, Snowflake, raised almost a half a billion dollars on a $12.4 billion valuation a year ago before going public last September with a valuation twice that. Databricks has already exceeded that public valuation with this round — as a private company.

When we spoke to Databricks CEO Ali Ghodsi at the time of his company’s $400 million round in 2019, one which valued the company at $6.2 billion at the time, he said his company was the fastest-growing enterprise cloud software companies ever, and that’s saying something.

The company makes money by offering each of those open-source products as a software service and it’s doing exceedingly well at it, so much so that investors were tripping over each other to be part of this deal. In fact, Ghodsi said in a conversation with TechCrunch today that his company had targeted a much more modest $200 million raise, but that figure grew as more parties wanted to invest funds into the company. Even with that, Databricks had to turn capital away, he added, after deciding to cap the round at $1 billion.

The extra $800 million that the company raised will be used for M&A opportunities with an eye on talent, spend on establishing a Lakehouse concept, international expansion, while also expanding its engineering team, the CEO said.

Databricks crossed $350M run rate in Q3, up from $200M one year ago

Ghodsi also made clear that he does not intend to let the percentage of revenue that the company spends on R&D to drop, as is common at modern software companies — as many SaaS companies grow, they expend more of their revenue on sales and marketing efforts over product spend, something that Databricks wants to avoid by continuing to invest in engineering talent.

Why? Because Ghodsi says that the pace of innovation in AI is so rapid that IP becomes outdated in just a few years. That means that companies that want to lead in this space will have to stay on the bleeding edge of their market or fall back swiftly.

The Databricks model appears to be working well, with the company closing 2020 at $425 million in annual recurring revenue, or ARR. That figure, up 75% from the year-ago period, is also up from a $350 million run rate at the end of its Q3 2020. (For more on Databricks’ business, product and growth, head here.)

Notably Ghodsi told TechCrunch that this deal only started to come together in December. It’s February 1st today, which means that it took on this bushel of new funding remarkably quickly.

Finally, at $425 million in ARR, is the CEO worried about having a valuation sitting at roughly a 65x multiple? Ghodsi said that he is not. He said that he told his company during an all-hands earlier today that the AI market is a long journey, one that he hopes to be on for decades, and the stock market will go up and down. His point, as far as I could read into it, was that so long as Databricks keeps growing as it has, its valuation will take care of itself (and that seems to be the case so far with this company).

What’s certainly true is that Databricks is now as rich as it has ever been, as large as it has ever been, and in a market that is maturing. Let’s see what it can do with all this money.

Databricks announces $400M round on $6.2B valuation as analytics platform continues to grow

Mask-wearers will be able to unlock their iPhone with the Apple Watch

Published February 1, 2021

In addition to AirPlay support for Fitness+, today’s iOS 14.5 developer beta is bringing some key new features to mobile operating system. At the top of the list is undoubtedly Apple Watch unlock for users wearing face coverings.

The long-awaited feature arrives a year or so into a pandemic that has made face masks a reality in parts of the world that previously had not seen wide scale adoption. The Apple Watch has, of course, long had the ability to unlock Macs, so this integration seems like a pretty sensible addition.

Apple will make it easier to unlock your iPhone while wearing a face mask

Starting with iOS 14.5, Apple Watch wearers will be able to opt-in to iPhone unlock under the phone’s Face ID & Passcode settings. Once enabled, the Watch will give a haptic buzz to notify the wearer that the handset has been unlocked. The Watch needs to be unlocked, on a wrist and in close proximity to the iPhone in order to work.

It beats having to pull your mask down in public (even if some folks are still feeling nostalgic for Touch ID).

The addition should be included in the consumer version of the software when it launches. Also included are the ability to ask Siri to call emergency contacts and app tracking controls that require permissions from developers. Support for new Xbox and PlayStation game controllers has been added, as well.

Apple Fitness+ is adding AirPlay casting

Weights & Biases raises $45M for its machine learning tools

Published February 1, 2021

Weights & Biases, a startup building tools for machine learning practitioners, is announcing that it has raised $45 million in Series B funding.

The company was founded by Lukas Biewald, Chris Van Pelt and Shawn Lewis — Biewald and Van Pelt previously founded CrowdFlower/Figure Eight (acquired by Appen). Weights & Biases says it now has more than 70,000 users at more than 200 enterprises.

Biewald (whom I’ve known since college) argued that while machine learning practitioners are often compared to software developers, “they’re more like scientists in some ways than engineers.” It’s a process that involves numerous experiments, and Weights & Biases’ core product allows practitioners to track those experiments, while the company also offers tools around data set versioning, model evaluation and pipeline management.

“If you have a model that’s controlling a self-driving car and the car crashes, you really want to know what happened,” Biewald said. “If you built that model years ago and you’ve run all these experiments since then, it can be hard to systematically trace through what happened” unless you’re using experiment tracking.

He described the startup as “an early leader” in this market, and as competing tools emerge, he said it’s also differentiated because it is “completely focused on the ML practitioner” rather than top-down enterprise sales. Similarly, he said that as machine learning has been adopted more widely, Weights & Biases is occasionally confronted by a “high-class problem.”

Image Credits: Weights & Biases

“We’re not interested in selling to companies that are doing machine learning for machine learning’s sake,” Biewald said. “With some companies, there’s a mandate from the CEO to sprinkle some machine learning in the company. That’s just really depressing to me, to not have any impact. But I would actually say the vast majority of companies that we talk to really do something useful.”

For example, he said agriculture giant John Deere is using the startup’s platform to continually improve the way it uses robotics to spray fertilizer, rather than pesticides, to kill weeds and pests. And there are pharmaceutical companies using the platform for how they model how different molecules will behave.

Weights & Biases previously raised $20 million in funding. The new round was led by Insight Partners, with participation from Coatue, Trinity Ventures and Bloomberg Beta. Insight’s George Mathew is joining the board of directors.

“I’ve never seen a MLOps category leader with such a high NPS and deep customer focus as Weights and Biases,” Mathew said in a statement. “It’s an honor to make my first investment at Insight to serve an ML practitioner user-base that grew 60x these last two years.”

The startup says it will use the funding to continue hiring in engineering, growth, sales and customer success.

Deep Science: Using machine learning to study anatomy, weather and earthquakes

Lightspeed’s Gaurav Gupta and Grafana Labs’ Raj Dutt will tell us why they financially tied the knot (twice!)

Published February 1, 2021

Many founders only know their own experience fundraising and don’t hear much about what other founders went through. On Extra Crunch Live on Wednesday, we’re going to remedy that.

Grafana Labs has raised upward of $75 million since it launched in 2014. Lightspeed Venture Partners, and partner Gaurav Gupta to be specific, led both the startup’s Series A and Series B rounds. As far as commitments go, that’s a pretty significant one.

The new and improved Extra Crunch Live pairs founders and the investors who led their earlier rounds to talk about how the deal went down, from the moment they met to the conversations they had (including some disagreements) to the relationship as it exists today. Hell, we may even take a peek at the original pitch deck that made it all happen.

Then, we’ll turn our eyes back to you, the audience. That same founder/investor duo (in this case, Grafana Labs CEO Raj Dutt and LVP’s Gaurav Gupta) will take a look at your pitch decks and give their own feedback. (If you haven’t yet submitted a pitch deck to be torn down on Extra Crunch Live, you can do so here.)

The hour-long episode is sandwiched between two 30-minute rounds of networking. From start to finish, it goes from 11:30 a.m. PST/2:30 p.m. EST to 1:30 p.m. PST/4:30 p.m. EST. And Extra Crunch Live will come to you at the same time, every week, with a new pair of speakers.

So let’s learn a little bit more about Gupta and Dutt.

Before becoming an investor, Gupta enjoyed a rich career in the product development sphere, holding positions at Elastic (where he led product management), Splunk (VP of Products), as well as Google, Gateway and the McKenna Group. He joined Lightspeed in 2019 as a partner, focusing primarily on enterprise software. He’s led investments in Impira, Blameless, Hasura and Panther, and of course, Grafana. He sits on the board of the last three companies in that list.

Dutt is the co-founder and CEO at Grafana Labs, but the fast-growing company isn’t his first go at entrepreneurialism. Dutt also founded and led Voxel, a cloud-hosting startup that was acquired by Internap for $30 million in 2012.

We’re absolutely thrilled to have Gupta and Dutt join us on our first episode of Extra Crunch Live in 2021. As a reminder, Extra Crunch Live is for Extra Crunch members only. We’re coming to you with a new pair of speakers every week, and you can catch everything you missed on-demand if you can’t join us live. It’s worth the cost of the subscription on its own, but EC members also get access to our premium content, including market maps and investor surveys. Long story short? Subscribe, smarty. You won’t regret it.

Oh, and here’s a look at other speakers you can expect to see on Extra Crunch Live:

Aydin Senkut (Felicis) + Kevin Busque (Guideline) — February 10
Steve Loughlin (Accel) + Jason Boehmig (Ironclad) — February 17
Matt Harris (Bain Capital Ventures) + Isaac Oates (Justworks) — February 24

And that’s just the February slate!

All the details to register for this upcoming episode (and more) are available below. Can’t wait to see you there!

Rapid7 acquires Kubernetes security startup Alcide for $50M

Published February 1, 2021

Boston-based security operations company Rapid7 has been making moves into the cloud recently, and this morning it announced that it has acquired Kubernetes security startup Alcide for $50 million.

As the world shifts to cloud native using Kubernetes to manage containerized workloads, it’s tricky ensuring that the containers are configured correctly to keep them safe. What’s more, Kubernetes is designed to automate the management of containers, taking humans out of the loop and making it even more imperative that the security protocols are applied in an automated fashion as well.

Brian Johnson, SVP of Cloud Security at Rapid7 says that this requires a specialized kind of security product and that’s why his company is buying Alcide. “Companies operating in the cloud need to be able to identify and respond to risk in real time, and looking at cloud infrastructure or containers independently simply doesn’t provide enough context to truly understand where you are vulnerable,” he explained.

Rapid7 is acquiring DivvyCloud for $145M to beef up cloud security

“With the addition of Alcide, we can help organizations obtain comprehensive, unified visibility across their entire cloud infrastructure and cloud-native applications so that they can continue to rapidly innovate while still remaining secure,” he added.

Today’s purchase builds on the company’s acquisition of DivvyCloud last April for $145 million. That’s almost $200 million for the two companies that allow Rapid7 to help protect cloud workloads in a fairly broad way.

It’s also part of an industry trend with a number of Kubernetes security startups coming off the board in the last year as bigger companies look to enhance their container security chops by buying talent and technology. This includes VMware nabbing Octarine last May, Cisco getting PortShift in October and Red Hat buying StackRox last month.

Alcide was founded in 2016 in Tel Aviv, part of the active Israeli security startup scene. It raised about $12 million along the way, according to Crunchbase data.

Israel’s maturing cybersecurity startup ecosystem

bluShift Aerospace launches its first rocket powered by biofuels

Published February 1, 2021

New space startup bluShift wants to bring a new kind of propellant to the small satellite launching market, with rockets powered by bio-derived rocket fuels. These differ from traditional fuels in that they offer safety advantages during handling, and ecological advantages during production and use. The startup has been working on its solid rocket biofuel since its founding in 2014, and has received grants from the Maine Technology Institute and NASA’s Small Business Innovation Research (SBIR) program to refine its fuel formula and rocket engine design to help it get to this point.

The company achieved a milestone on Sunday with its first rocket launch — a low-altitude flight of a small sounding rocket, called Stardust 1.0. It’s a single-stage prototype, which can only carry 18 lbs of payload and is designed to achieve suborbital space. That may not seem like much, but it is enough to put small research equipment up into suborbital space, at costs that put launches within range for small companies and academic institutions.

Image Credits: Knack Factory/Courtesy Aerospace

Stardust 1.0 is designed to be reusable, though it’s still a prototype, and the company is also working on Stardust 2.0, which is a second prototype that’s expected to increase the payload capacity and act as the primary building block for its subsequent production commercial rockets, including Starless Rogue, a two-stage launcher for suborbital missions, and Red Dwarf, a three-stage, 66-lb capacity launch vehicle that can reach low Earth orbit.

Sunday’s launch looked like it might not have been on track to go well at first, with an initial attempt seeing the rocket’s ignition light — but without a takeoff. After resetting for a second try, there wasn’t any ignition. Finally the rocket did take off late in the day, with a flight that the company said “went perfectly” on a follow-up call with media.

This Week in Apps: GameStop madness hits trading apps, Apple privacy changes, Clubhouse becomes a unicorn

Published January 30, 2021

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, we’re taking a look at the biggest news in the world of apps, including how the GameStop frenzy impacted trading apps, as well as how Apple’s privacy changes are taking shape in 2021, and more.

Weekly News

Platforms: Apple

Apple releases iOS 14.4 to iPhone and iPad users. The update patches three critical security vulnerabilities, adds Bluetooth audio monitoring to protect users from levels that could damage hearing, improves the ability for the camera to recognize smaller QR codes, adds a warning if the iPhone 12 has been repaired with non-Apple parts and fixes other bugs.
Apple reports record-breaking Q1 2021 with $111.4 billion in revenue. The company beat investor expectations on both earnings per share and revenues, with more than the expected $103.3 billion in revenues and $1.68 EPS versus the $1.41 EPS expected. Earnings were driven by new 5G iPhones and a 57% rise in China sales.

Investors don’t seem that impressed by Apple’s $111 billion quarter

Apple dominates tablet market with 19.2 million iPads shipped in Q4 2020.
Separately, from the IDFA news, Apple announced this week that Private Click Measurement (PCM) will roll out at the same time as the IDFA changes. PCM measures app-to-web conversions, while SKAdNetwork focuses only on app-to-app conversions. This gives advertisers a way to track the performance of apps that run inside ads that send users to websites.
A researcher discovered a new iOS security system in iOS 14, BlastDoor, which offers a new sandbox system for processing iMessages data.
The Washington Post checks in on Apple’s App Store privacy labels and finds many of them were wrong.

Platforms: Google

Google Play Store updates its policies on gamified loyalty programs following confusion in India. Real gambling apps are still not permitted in India, but developers now will have better clarity on rules.
Google Play Store opened to Android Auto apps in December, but only for closed testing. This week, it expanded to open testing, meaning there’s no limit to the number of users who can download the app — the next step toward launching to all users in production.

Gaming

Image Credits: Sensor Tower

U.S. consumer spend in mobile simulation games up 61.8% in 2020, reports Sensor Tower. Top titles included Roblox and Township by Playrix.

Entertainment & Streaming

Netflix can now stream studio-quality audio on Android 9 and newer devices, specifically Extended HE-AAC with MPEG-D DRC (xHE-AAC). This codec improves sound in noisy conditions and adapts to variable cellular connections.
Spotify tests audiobooks. The company released a small selection of nine exclusive audiobook recordings from books in the public domain. The narrators included big names like David Dobrik, Forest Whitaker, Hilary Swank and Cynthia Erivo, to determine if there’s consumer demand for this sort of content.
Spotify also tests a feature that inserts “slow down” songs in playlists when users approach school zones. The feature was being tried in Australia.
YouTube said its TikTok rival, YouTube Shorts, was seeing 3.5 billion views per day during tests in India.

Security & Privacy

Apple says iOS 14.4 fixes three security bugs that may have been exploited by hackers. Details were scarce but two of the bugs were found in WebKit. Apple wouldn’t say how many users may have been impacted.
TikTok fixed a vulnerability that would have allowed for the theft of private user information.
WhatsApp added a biometric authentication to its web and desktop apps to make authentication more secure for its over 2 billion users.

WhatsApp adds biometric authentication to its web and desktop versions

A location broker called X-Mode was discovered to still be tracking users via Apple and Android apps, despite app store bans. The broker sold data collected in apps — like unofficial transportation app New York Subway, Video MP3 Converter and Moco — to U.S. military contractors.

Communication

Image Credits: Telegram

Telegram adds a new feature that would allow users to import their WhatsApp chats and others, making a switch easier. The feature appears in version 7.4, and supports WhatsApp, Line and KakaoTalk import on iOS and Android.

Social & Photos

Image Credits: Instagram

Instagram launches a professional dashboard for creators and small business. The new in-app destination offers centralized access to tools for tracking performance, discovering insights and trends, growing your business and staying informed through access to educational resources.
Facebook expands its Facebook News portal to the U.K., its first international market.

Facebook News launches in the UK, the first international market for its curated news portal

TikTok owner ByteDance’s revenue more than doubled in 2020, according to The Information, to about $37 billion.
Snapchat launched a digital literacy program aimed at educating users about data privacy and security. The program teaches users how to turn on two-factor and introduced a new filter that connects users to privacy resources.
Twitter launches Birdwatch, a community-based approach to handling misinformation on its platform. The system allows users to identify misleading info in tweets and write notes that provide information and context, in a sort of Wikipedia-like model. Eventually, these notes will be made visible directly on tweets for all to read, after consensus from a broad and diverse group of editors is achieved.
QAnon moves to a free-speech focused TikTok clone called Clapper, which is a new home to some of the Parler crowd. ToS violations coming in 3, 2, 1…
TikTok was found to be hosting a number of vape sellers who were clearly marketing toward minors, promising no ID checks and discreet packaging to hide vape purchases from parents.

TikTok is being used by vape sellers marketing to teens

Health & Fitness

Apple expands its new Apple Fitness+ service with “Time to Walk,” a feature that offers inspiring audio stories from guests like country music icon Dolly Parton, NBA player Draymond Green, musician Shawn Mendes, Emmy Award winner Uzo Aduba and others. The launch indicates Apple understands how to make the service more broadly appealing to reach beyond those who are already deeply committed to their regular exercise routines.

Apple’s new Fitness+ feature brings celebrity-guided walks to your wrist

Health and Fitness app downloads grew 30% in 2020, reports App Annie, from $1.5 billion in consumer spend in 2019 to $2 billion in 2020, and from 2 billion downloads to 2.6 billion. On Android phones, time spent was up 25%.

Government & Policy

Italy’s data protection agency gave TikTok a deadline to respond its order to block all users whose age it can’t verify following the death of a 10-year-old girl who repeated a dangerous “challenge” on the social app.
Iran blocked the Signal messaging app after the WhatsApp exodus sent a flood of users to the open-source, encrypted communication service.
India said it will continue its ban on TikTok, UC Browser and 57 other Chinese apps that the country first banned last June, saying the responses the companies provided didn’t adequately address the cybersecurity concerns. TikTok owner ByteDance said it’s closing its India operations and laying off 1,800 employees.

India retains ban on TikTok, UC Browser and 57 other Chinese apps

Norway’s data protection agency notified U.S.-based dating app Grindr for violation of GDPR consent violations, which carry a fine of around $12.1 million USD.

Funding and M&A

Image Credits: Freepik / Kristina Astakhova (opens in a new window) / Getty Images

Buzzy voice chat app Clubhouse raises $100 million, valuing the business at $1 billion. Despite being launched under a year ago and remaining an invite-only experience for the time being, the app has been carving out a new form of audio-based social networking. With now over 180 investors and a pandemic coming to an end — perhaps — with the vaccine rollout, Clubhouse will soon have to prove it has value in a reopened world where there’s more to do, including, once again, networking events and conferences. It will also eventually have to contend with what sort of app it becomes when it finally opens up to the public. So far, its private, insiders-only atmosphere has given it something of a protected status. Though conversations have turned toxic at times, only a few users ever heard them — and there’s no transcript. When the world piles in, however, Clubhouse could not only lose its exclusive appeal but also become host to conversations that do real harm.

Twitter is working to include the “ Newsletters” item in the menu in the web app, which shows the popup about @revue above pic.twitter.com/ATaXDGr0zc

— Jane Manchun Wong (@wongmjane) January 27, 2021

Twitter acquires newsletter platform Revue, a Substack rival, to get its users a way to monetize their Twitter fan base. Despite only announcing this week, the company is already integrating Newsletters on its web app.
Edtech app ClassDojo raises $30 million led by Product Hunt CEO Josh Buckley. The app has boomed during the pandemic as schools and teachers needed a new way to communicate with families at home.

ClassDojo’s second act comes with first profits

Scheduling startup Calendly raises $350 million for its cloud-based service that helps people set up and confirm meeting times with one another. The round values the business at $3 billion.
Virtual social network IMVU raises $35 million from China’s NetEase and others. The app lets users create virtual rooms and chat with strangers using custom avatars.
Short-form video app Clash acquires would-be TikTok rival Byte, created by a former Vine founder.
IAC’s Teltech, home to Robokiller, acquires encrypted messaging app Confide, in an unannounced deal. Terms were not revealed but included the app and IP, not the team.

Image Credits: Confide

Opal raises $4.3 million for its digital well-being assistant for iPhone that blocks you from distracting apps and websites.
Finance tracking and budgeting app Brigit raises $35 million Series A led by Lightspeed Venture Partners, with participation from DCM, Nyca, Canaan, DN Capital, CRV, Core, Shasta, Hummingbird, Abstract, Brooklyn Bridge Ventures, Secocha, NBA star Kevin Durant, Ashton Kutcher’s Sound Ventures and Flourish Ventures.
SoftBank-backed Travel platform Klook raises $200 million in a round led by Aspex Management. The startup, which helps users book activities in overseas destinations, had been impacted by the pandemic, so pivoted to “staycation” activities and service for local merchants.
Video software company Vimeo raises $300 million in equity from funds and accounts advised by T. Rowe Price Associates, Inc. and Oberndorf Enterprises, LLC at a valuation in excess of $5 billion.
RuneScape publisher Jagex has been acquired by investment firm The Carlyle Group for at least $530 million. The British video game publisher creates both PC and mobile games, including a mobile version of RuneScape with 8 million installs in 2019.
Appointment booking app Booksy raises $70 million to acquire other salon appointment apps and expand internationally. The round was led by Cat Rock Capital with participation from Sprints Capital.

Booksy raises $70M war chest to acquire salon appointment apps, expand internationally

Fintech startup Albert raises $100 million in Series C funding led by General Atlantic. The funds will be used to expand its financial wellness service now used by over 5 million people to help save, budget and more.
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Opal

Image Credits: Opal

Opal offers a digital well-being assistant for iPhone that allows you to block distracting websites and apps, set schedules around app usage, lock down apps for stricter and more focused quiet periods and more. The service works by way of a VPN system that limits your access to apps and sites. But unlike some VPNs on the market, Opal is committed to not collecting any personal data on its users or their private browsing data. Instead, its business model is based on paid subscriptions, not selling user data, it says. The freemium service lets you upgrade to its full feature set for $59.99/year.

Opal raises $4.3 million for its ‘digital well-being’ assistant for iPhone

Charlie

Image Credits: Charlie

Founded by a former mobile game industry vet, Charlie “gamifies” getting out of debt using techniques that worked in gaming, like progress bars, fun auto-save rules that can be triggered by almost any activity, celebrations with confetti and more. The app plans to expand into a fuller fintech product in time to help users refinance debt at a lower rate and bill pay directly from the app.

Charlie launches a mobile app that ‘gamifies’ getting out of debt

Hong Kong startup ICW eyes supply chain diversification demand amid trade war

Published January 30, 2021

For American importers, finding suppliers these days can be challenging not only due to COVID-19 travel restrictions. The U.S. government’s entity list designations, human-rights-related sanctions, among other trade blacklists targeting Chinese firms have also rattled U.S. supply chains.

One young company called International Compliance Workshop, or ICW, is determined to make sourcing easier for companies around the world as it completed a fresh round of funding. The Hong Kong-based startup has just raised $5.75 million as part of its Series A round, boosting its total funding to around $10 million, co-founder and CEO Garry Lam told TechCrunch.

ICW works like a matchmaker for suppliers and buyers, but unlike existing options like Alibaba’s B2B platform or international trade shows, ICW also vets suppliers over compliance, product quality and accreditation. It gathers all that information into its growing database of over 40,000 suppliers — 80% of which are currently in China — and recommends them to customers based on individual needs.

Founded in 2016, ICW’s current client base includes some of the world’s largest retailers, including Ralph Lauren, Prenatal Retail Group, Blokker, Kmart and a major American pharmacy chain that declined to be named.

ICW’s latest funding round was led by Infinity Ventures Partners with participation from Integrated Capital and existing investors MindWorks Capital and the Hong Kong government’s $2 billion Innovation and Technology Venture Fund.

Supply chain shift

In line with the ongoing shift of sourcing outside China, in part due to the U.S.-China trade war and China’s growing labor costs, ICW has seen more customers diversifying their supply chains. But the transition has limitations in the short run.

“It’s still very difficult to find suppliers of certain product categories, for example, Bluetooth devices and power banks, in other countries,” observed Lam. “But for garment and textile, the transition already began to happen a decade ago.”

In Southeast Asia, which has been replacing a great deal of Chinese manufacturing activity, each country has its slight specialization. Whereas Vietnam abounds with wooden furniture suppliers, Thailand is known for plastic goods and Malaysia is a good source for medical supplies, said Lam.

When it comes to trickier compliance burdens, such as human rights sanctions, ICW relies on third-party certification institutes to screen and verify suppliers.

“There is a [type of] qualification standard that verifies whether a supplier has fulfilled its corporate social responsibility … like whether the factory fulfills the labor law, the minimum labor rights or the payroll, everything,” Lam explained.

ICW plans to use the fresh proceeds to further develop its products, including its compliance management system, product testing platform and B2B-sourcing site.

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Opal

Charlie

Hong Kong startup ICW eyes supply chain diversification demand amid trade war

Supply chain shift