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US beat China on App Store downloads for first time since 2014, due to coronavirus impact

Published July 16, 2020

The U.S. App Store’s downloads have surpassed China’s downloads for the first time since 2014. According to data from Sensor Tower’s Q2 2020 report, out today, the U.S. App Store saw 27.4% year-over-year growth in the quarter, compared to the 2.1% growth for the China App Store. During the quarter, the U.S. App Store generated 2.22 billion new installs compared with China’s 2.06 billion downloads, to regain the top position. This then translated to the U.S. beating China on App Store consumer spend, as well.

Contributing to the shift was the impact of the coronavirus pandemic on both China and the U.S.

The U.S. surpassed China on installs beginning in April and lasting all the way through June, the firm found.

China in Q2, meanwhile, was coming down from its own abnormally high number of downloads in March and April, due to COVID-19. But as its download figures began to normalize, the pandemic was wreaking havoc in the U.S., where it hit slightly later.

This led to the U.S. to see a surge in downloads, as suddenly the population was forced to work from home, attend school from home and entertain themselves at home with apps, games and streaming services.

Image Credits: Sensor Tower

Sensor Tower tells TechCrunch there was particularly significant growth in U.S. business and education apps in Q2, as a result. These categories were the largest contributors to the U.S. surpassing China’s installs.

Business app downloads grew 133.3% in Q2, followed by education (84.4%), health & fitness (57.7%), news 44.9%) and social networking (42.4%).

Image Credits: Sensor Tower

Video conferencing app Zoom, in particular, had a breakout quarter and even shattered the record for App Store installs, with nearly 94 million total downloads in a single quarter. The prior record had been set by TikTok, which had in Q1 2020 seen 67 million downloads in a single quarter. No other non-game app has ever surpassed 50 million installs in a quarter, Sensor Tower noted.

TikTok still had a strong Q2, with nearly 71 million App Store downloads in the quarter, representing 154% year-over-year growth. Its top two download markets were both the U.S. and China — the latter where it’s known as Douyin.

Image Credits: Sensor Tower

Mobile gaming was also a big hit in the U.S., as people stayed home under government lockdowns. Top mobile games by App Store downloads included titles like Save The Girl, Roblox, Go Knots 3D, Coin Master, Tangle Master 3D, Fishdom, ASMR Slicing, Call of Duty: Mobile and others.

On this front, Roblox had a stellar quarter as kids stayed at home and went online gaming, due to being disconnected from school and their playmates in real life. Roblox’s gaming app shot up the U.S. rankings from No. 11 in Q1 2020 to No. 2 in Q2, and achieved a new high of 8.6 million downloads in the quarter.

Rollic Games had two hits in the quarter, Go Knots 3D and Tangle Master 3D, each with over 5 million App Store downloads. Its Repair Master 3D title also came in at No. 20.

Both Zoom and Rollic Games were the only new top publishers to find themselves in the top 10 on the App Store in Q2, the report found.

Image Credits: Sensor Tower

Though the U.S. surpassed China in the quarter for the first time in years, the rest of the top five — Japan, Great Britain and Russia — remained the same as last quarter, though growing on a year-over-year basis.

Related to the surge of new downloads, the U.S. also surpassed China on consumer spending on the App Store for the first time since Q4 2018 — but that was only by 1.6% (around $53 million). In Q2 2020, the U.S. surpassed China by 14%, or about $717 million.

The U.S. also saw more significant quarter-over-quarter growth in spending during the COVID-19 outbreak, growing 20% between Q1 and Q2. In China, the consumer spending growth on the App Store was just 5% between Q4 2019 and Q1 2020, when it felt the full impact of the virus.

In the cloud era, building on platforms you don’t own is normal

Published July 16, 2020

When Salesforce launched Force.com in 2007, it was the culmination of years of work to bring together a way to customize Salesforce and eventually to build applications on top of the platform. By using a set of Salesforce services, companies could take advantage of work that SFDC had already done, speeding up building time and reducing time to market. Today, the successor of Force.com is called Salesforce Platform.

But going that route didn’t come without some risk, because back in 2007 building atop a Platform as a Service (PaaS) wasn’t a common way of developing software. Even by 2012 when nCino launched its banking software solutions on Force.com, it likely raised some eyebrows by using a cloud platform as the backbone of its fintech offering.

Even though it probably took resolve, the approach worked, as evidenced this week when nCino went public — a debut that was met with a strong investor response. And nCino is notably not the first time that a company built atop Salesforce’s PaaS has gone public; nCino’s own IPO follows Veeva’s 2013 debut.

But astute observers for the Salesforce ecosystem will note that other successful companies have been built on the Salesforce cloud. As you will see, many successful companies have benefited from building on top of Salesforce.

TikTok is a marketer’s shiny new toy, but how do you optimize campaigns?

Published July 16, 2020

Tiffany Ou
Contributor

Tiffany Ou is the general manager, Americas at Nativex, where she leads go-to-market strategies for leading game and app developers.

TikTok is a rising star in the social media category. Since its launch three years ago, the company has secured 800 million active users worldwide. That makes TikTok ninth in terms of social network sites, ahead of LinkedIn, Twitter, Pinterest and Snapchat. As more people start using the platform and remain engaged, it goes without saying that TikTok is an increasingly desirable destination for marketers.

But outside the sheer numbers, is there any real sustenance to the platform from a marketing perspective, or is this just a temporary fad brands are flocking to? Here’s a look into what makes TikTok unique through a marketer’s lens, and a few things the platform can improve on to make it a permanent option for brands looking to explore mobile.

Better user experiences lead to more unique advertising

Digital advertising is only as effective as a platform’s user experience — that fact presents a unique differentiator for TikTok. Being in 2020, where content creators continue to blossom, TikTok provides an opportunity for literally anyone to reach millions of people with their content. It is a “platform for the people,” as the algorithm sends user content to groups of 5-10 people, and based on the engagement, it will continue sending it out to the masses. What’s interesting here is that it resembles an early era of Instagram, where all content was user-generated.

Additionally, unlike other leading social media channels, a user is focused on one piece of content at a time. TikTok videos take up the entire screen, which leads to more engagement and genuine interest from the viewer. That said, creative plays an incredibly important role in every campaign you run on the platform, especially when trying to grab the user amid a mass of alternative entertainment options. The TikTok audience is hyperfocused on viewing organic, visually stimulating content that could be the next big meme or viral sensation.

Creative is the key

8 edtech investors talk re-skilling, digital universities, ISAs and other post-pandemic trends

Published July 16, 2020

We know that the coronavirus has brought unprecedented attention to the edtech market, but now what? What happens when schools are no longer clambering toward an overnight solution? When the surges slow? When our world reopens and there doesn’t need to be a full-suite of at-home solutions for kids and parents?

As the next wave of edtech companies are being built to address these novel use cases, investors are looking for solutions that aren’t simply pandemic-era important. To some, that means skipping the latest videoconferencing platform play and maybe cutting a check to a digital-only university. To others, it means looking for the platform that will educate a diverse range of users, especially the unemployed.

A spree of recent consolidation within the market shows that there is a need for a better plumbing system in the fragmented world of edtech.

We turned to eight investors in the space to understand which subcategories are shaping up to be the future, following up on our first survey last fall when the world was very different, and another in early April when less was understood about the pandemic. Our goal here was to find nonobvious ways innovation is living within the noisier-than-ever sector. The result? Intel on nascent trends, deal-makers and what adaption looks like amid a time of uncertainty.

Today you’ll get a deep dive on the nerdy stuff from the following investors:

Reach Capital’s Jennifer Carolan, Shauntel Garvey and Chian Gong
Ian Chiu, Owl Ventures
Jan Lynn-Matern, Emerge Education
David Eichler, TCV
Rebecca Kaden, Union Square Ventures
Jomayra Herrera, Cowboy Ventures

Investors differed on which subcategories benefitted the most, but it’s clear that the pandemic didn’t lift up the entirety of the edtech space. One investor noted that the pandemic made them even less interested in ISAs, while other venture capitalists noted how valuable the financing instrument is now, more than ever before.

We got into some of the big themes that have risen in the past few months: online learning, re-skilling, ISAs, virtual universities and where each investor draws their line around these categories.

A common theme throughout the commentary now is that the opportunity presented by coronavirus is not being met with complacency, but instead a push to grow better. Investors talked about innovation needs to account for childcare, cost, digital infrastructure, and the addressable population, pandemic or not.

I think that’s enough teasing. Now, onto the answers.

Startup launches innovative new product that pays Amazon marketplace sellers daily

Published July 16, 2020

Third-party sellers are the dominant driver of sales on Amazon’s marketplace, accounting for 58% of its total (and growing). We know that the pandemic, ironically, has been good for Amazon, which has reported net sales in Q1 up by 26% year-over-year, given that much of the world has reverted to ordering online. However, the payment terms offered are far from convenient. Amazon pays sellers approximately every two weeks and reserves a significant amount for possible refunds. Unfortunately, this hinders the ability of small companies to invest in growth and purchase more inventory. But of course, Amazon holds the keys to this particular car.

Payability is one such startup that provides financing to suppliers in Amazon’s marketplace, although its fees are computed on gross sales, not net receivables from Amazon.

InstaPay is a startup that has launched a new product that pays Amazon sellers on a daily basis. The new offering comes at a time when Amazon sellers are experiencing an enormous load due to the pandemic, but the Amazon marketplace terms have not sped up to allow them to meet demand.

The current two-week lag time creates a gap in cash-flow — because sellers usually have to pay their vendors in advance. InstaPay’s new product potentially solves this problem, allowing sellers to be able to earn more, even with the added InstaPay fees.

The service funds 50% to 80% of sales and charges 1% to 2% of sales volume per funding. When Amazon pays the vendor, InstaPay automatically deducts the outstanding balance. This means small companies can invest in growth and purchase more inventory.

Sam Bokher, COO, said in a statement: “Due to the global lockdown, people have ramped up online purchases and more companies have flocked to Amazon and other eCommerce platforms to sell online. We launched this new service to provide businesses with an opportunity to grow simultaneously with the marketplace, rather than with a two-week delay.”

The product was inspired by an unlikely industry. Prior to this, InstaPay had been providing transportation and trucking companies with working capital, with flat-rate accounts receivable financing and same-day payment.

Google’s latest R&D project is Shoploop, a mobile video shopping platform

Published July 16, 2020

Google’s latest experiment is a video shopping platform designed to introduce consumers to new products in under 90 seconds. The company today is launching Shoploop, a project from Google’s internal R&D division, Area 120, where it tests out new ideas with a public user base.

Shoploop’s founder, Lax Poojary, had previously worked on online trip planner, Touring Bird, also at Area 120. Last year, that effort became one of a small number of R&D projects to graduate and become a part of Google itself.

Poojary says his new idea for interactive shopping was inspired by how consumers today use a combination of social media and e-commerce sites together when considering purchases. For example, users will pop between a social media app, like Instagram, then head to YouTube to see a tutorial or demo, then — if they like what they saw — actually make a purchase.

Of course, video shopping is not a novel idea. A number of startups, and even large companies, have already embraced a combination of video and commerce.

Image Credits: Google

Amazon, for example, runs a livestreaming platform, Amazon Live, on its retail site. YouTube this year introduced a new shoppable ad format and is placing products to buy underneath videos. Facebook has enabled live shopping, as well, and made an acquisition in this area in 2019. Instagram now has its own Shop destination, too.

There are also a number of mobile shopping startups that have embraced video, like Dote, which raised $12 million last year. Popshop Live raised $3 million in January. NTWRK combines shopping and live events. Depop sells with both photos and videos, similar to Instagram.There’s also Yeay, Spin, and other apps. And there are startups focused on providing technology for brands and influencers engaging in this space, like Bambuser, MikMak, and Buywith, to name a few.

That is to say, Shoploop hasn’t discovered a new, untapped trend. It’s simply joining in.

The shopping experience on Shoploop is interactive. Users don’t just scroll through images and text, but instead watch videos where creators show off things like nail stickers, hair products or makeup. The team says it’s starting with products in categories such as makeup, skincare, hair and nails and its working with creators, publishers and store owners in this market for the app’s content.

Currently, the creators work out their own brand deals for the content they showcase. The Shoploop product itself is not monetized.

The experience is similar to watching YouTube tutorials, but distilled down to the best bits. (Or perhaps it’s more like TikTok, in that case) The demos are meant to be relatable, giving consumers a feel for the brands and products in real life. When consumers find a product they like, they can save it for later or click to be directed to the merchants website to complete the purchase. The app also allows you to follow your favorite Shoploop creators and share videos with friends and family.

Such a product could prove important to Google’s larger mission around Shopping, if it gains traction. Google recently redesigned its Shopping vertical and shifted it to include mostly free listings, in response to Amazon’s growing ad business. Finding more ways to engage online consumers could be beneficial to the internet giant, and this video-slash-influencer fueled shopping experience appeals to a younger demographic, in particular.

Shoploop is launching today on mobile and is working on a desktop version. You can reach it via https://shoploop.app from your smartphone.

Game developer poll suggests longer hours and less productivity as the industry adapts to remote work

Published July 16, 2020

Ahead of the upcoming online-only version of its big annual conference, GDC commissioned a survey of 2,500 game developers to determine how the industry is coping with the ongoing impact of the COVID-19 pandemic. While gaming sales are up as many turn to the medium to cope with stay-at-home orders, the virus appears to be impacting devs in similar (if somewhat blunted) fashion to innumerable other industries.

For starters, 32% find themselves being less productive, in spite of working longer hours. That no doubt sounds familiar to anyone who has attempted to transition to a home office amid the pandemic. Some 70% of developers say they’ve moved to working from home — if that number seems relatively low, that’s only because 27% of those surveyed say they were already working from home. That leaves some 3% in the office, I suppose.

One-quarter of respondents say their household income has declined, while a third say their business has declined over the last few months. A third also say they’ve had a project delayed. That could certainly complicate the upcoming schedules of the latest version of the Xbox and PlayStation, both due out at the end of the year.

The shift toward moving online found many companies scrambling to update their workflows, including a shift to different cloud services. Though, the nature of the industry means that many were already accustomed to having a distributed workforce prior to the pandemic. While two-thirds say their company has a plan to return to the office, only 12% feel safe returning to the office right now.

The majority of respondents added that they believe the pandemic will permanently change some aspect of their workplace, going forward. “We had to make some changes on our daily tasks to compensate not being at our office working physically together, but those have proven to increase our efficiency and productivity,” one developer responded. “Lately we have even talked about embracing the home office configuration even after the pandemic.”

Revel lands permit to bring hundreds of electric mopeds to San Francisco

Published July 16, 2020

Shared electric moped startup Revel received a permit that will allow it to operate in San Francisco, beginning in August.

The startup will start with a fleet of 432 mopeds featuring a new paint scheme and a more powerful engine to help riders get up and over the city’s infamously steep hills. For now, the service area will cover certain neighborhoods of San Francisco, including Cow Hollow, Dogpatch, the Financial District, Golden Gate Heights, Haight-Ashbury, the Mission District, Outer Mission, Pacific Heights, the Richmond District, the Tenderloin and the Castro. The service area will expand in the “near future,” Revel said.

Only licensed drivers with the Revel app can rent the mopeds. Each Revel can carry up to two riders, is limited to local streets and is capped at a speed of 30 miles per hour. Revel rides will cost $1 per person to start, followed by $0.39 per minute to ride.

Each Revel moped is equipped with two U.S. DOT-certified helmets that must be worn at all times. The company also provides third-party liability insurance automatically to all riders.

Revel, founded in March 2018 by Frank Reig and Paul Suhey, started with a pilot program in Brooklyn and later expanded to Queens. Revel has been on a fast-paced growth track, expanding to Austin, Miami and Washington, D.C in its first 18 months of operation. In January, the company launched in Oakland. The company also operates in sections of Manhattan, as well as south and central Bronx.

Revel is a bit different than some of the shared mobility startups out there. The company doesn’t rely on gig economy workers to charge its mopeds — a method used by e-scooter companies like Bird. Instead, Revel has full-time workers that maintain the mopeds and swap out the batteries as needed.

The company said it will begin hiring workers in San Francisco once it launches in August. Revel said it is participating in the First Source Hiring Program to find local employees.

The startup raised $27.6 million in capital last October in a Series A round led by Ibex Investors — funds required to fuel its expansion plans. The equity round included newcomer Toyota AI Ventures and further investments from Blue Collective, Launch Capital and Maniv Mobility.

Nextdoor launches Sell for Good for easy donations to local nonprofits

Published July 16, 2020

Nextdoor is launching a new feature called Sell for Good, allowing users to sell items on the neighborhood-focused social network and donate the proceeds to local nonprofits.

CEO Sarah Friar said that since the pandemic started, conversations about donations have increased 7x on Nextdoor .

“Communities are hurting,” Friar said. “People are looking to go donate, but things like Goodwill and so on are closed.”

At the same time, nonprofits are struggling. Pointing to a recent survey from the Nonprofit Finance Fund, she explained, “A lot of them depend on in-person events — the race that you might do, the book drive they always have, all of that has dried up.”

One way to support those nonprofits is to sell goods (perhaps the very same goods you were planning to give to Goodwill) on Nextdoor’s For Sale and Free section and then donate the money from the sale. In fact, Product Manager Rhett Angold said that users have already been doing this — for example, someone in Berkeley raised thousands of dollars for a local animal shelter by selling homemade masks.

So Sell for Good is designed to make this process as straightforward as possible. Nextdoor has partnered with the PayPal Giving Fund to support nonprofits in different cities, including A Better Chicago, LA Voice, New York Cares, Operation HOPE, Spark, The Hidden Genius Project and ViBe Theater Experience.

Sellers can choose which organization to support, then their sale will be identified as a donation. Once an item has been purchased, the seller can approve the donation and they’ll receive a receipt for their tax-deductible contribution.

And while the feature currently donates the full sale proceeds (minus the “typical PayPal processing fees”), Angold said his team is working on giving sellers the ability to donate a smaller portion as well.

Sell for Good is currently available to all Nextdoor users in the United States.

Nextdoor adds new funding, closes growth round at $170M with $2.1B valuation

As VCs favor B2B startups, B2C upstarts’ venture activity falls

Published July 16, 2020

The Q2 2020 venture capital market did not bring a catastrophic slowdown to either the global private investment scene or the U.S.’s own VC scene. But inside the rosier-than-anticipated private capital results of the second quarter, there were pockets of weakness, and strength, that we should understand as we look to the rest of 2020 and the continuance of the pandemic-driven economy.

The Exchange explores startups, markets and money. You can read it every morning on Extra Crunch, and you can now receive it in your inbox. Sign up for The Exchange newsletter, which will drop Saturdays starting July 25.

This morning we’re exploring trends detailed in the PitchBook-NVCA Q2 venture report, adding to our coverage of similar data sets produced by competing venture and private business information sources CB Insights and Crunchbase.

The NVCA data provides a useful cross section of venture activity beyond the usual quarterly totals, allowing us to better understand the diverging fortunes of domestic venture investment into business-serving startups (which appear strong), and investments into consumer-serving startups (which appear weak).

It also provides a peek into AI/ML-focused investing, a topic that TechCrunch has covered extensively this year. And, finally, we have a lens into recent U.S. VC results for startups that have at least one female founder, or were founded by all-women teams.

Some of the news is positive, and some of it is less so. But we owe it to ourselves to understand all of it. So to wrap up our week’s dive into Q2 VC activity, let’s get into our final look at the data, focusing today on the nuances of the United States’s own venture results.

B2B’s rise continues

As 2019 came to a close, TechCrunch wrote about a notable trend: Seed investors shifted their attention from consumer-focused startups to business-focused startups. Seed deals had moved from majority-B2C to majority-B2B, in other words.