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Health coaching app Noom will expand its product team after raising $58M led by Sequoia

Health coaching app developer Noom announced today that it has raised $58 million led by Sequoia Capital.

Other participants include Aglaé Ventures, the tech investment arm of French holding company Groupe Arnault, WhatsApp co-founder and former CEO Jan Koum, DoorDash co-founder and CEO Tony Xu, Oscar Health co-founder Josh Kushner, SB Project co-founder Scooter Braun and returning investor Samsung Ventures.

Headquartered in New York City with offices in Seoul and Tokyo, Noom is best known for its direct-to-consumer weight loss app, but it also develops enterprise products, including an app focused on diabetes and hypertension. Noom’s consumer app competes for users with Under Armour’s MyFitnessPal and Weight Watchers, but its closest rival is probably nutrition and weight loss app Rise because both offer personalized programs and coaching for a subscription fee.

Noom aims to set itself apart by focusing on long-term lifestyle and behavior changes, in addition to calorie, nutrition and exercise tracking. Users get access to 1:1 coaching and fitness programs personalized by an algorithm based on how they answer a questionnaire.

The company will use its new funding to hire more people for product development. In a press statement, Koum said he invested in Noom because it “has many of the same traits that helped WhatsApp disrupt the communications industry. Noom is so far ahead of the competition when it comes to technology, execution and brand recognition that it will be difficult for any company to catch up.”

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Spotify’s leanback instant listening app Stations hits iOS

Spotify has launched its instant listening app Stations on iOS, but only in Australia for the time being. The release comes nearly a year and a half after the Stations app first arrived on the market, initially for Android users in Australia. Dubbed an “experiment,” the app allows users to jump right into streaming instead of having to curate their own playlists or stations, or save favorite music to their library.

Unlike Spotify’s flagship application, the Stations app presents users with a minimalist interface where available playlists are displayed with an oversized font. You can scroll up and down between the playlists to select one, instead of typing in a search box or searching through voice commands.

When launching Stations, music begins playing automatically — a feature that had some calling it a “Pandora copycat” at the time of launch, given that instant music playback is something that Spotify’s rival Pandora already supports.

Stations was largely designed for those who want a more radio-like experience that involves less manual input. Free users will hear ads, be able to thumbs up and down songs, but can’t skip tracks. Premium users who download Stations get unlimited skips and ad-free listening.

The Stations app today features a range of playlists by genre, decade, activity and more, but also becomes personalized to the end-user over time. You can also opt to create your own stations by selecting from favorite artists in an experience that’s reminiscent of the customization offered today by YouTube Music — right down to the rounded artist profile photos you tap on.

As you listen to music on Stations, you can thumbs up and down songs in order to have it create custom stations personalized to you — including a Discover Weekly playlist, Release Radar and a Favorites playlist.

Not much had been heard about Stations since its January 2018 debut. And its limited release — it never hit the U.S., for example — could have indicated it was an experiment that didn’t quite pan out.

But it now seems that’s not the case, given the new expansion to iOS.

By offering the app to more users, Spotify has the chance to learn and collect data from a larger and more representative group of people. Whether or not it takes any ideas from Stations to its main app remains to be seen.

The company declined to comment on its plans, when asked.

“At Spotify, we routinely conduct a number of tests in an effort to improve our user experience,” a spokesperson said. “Some of those tests end up paving the path for our broader user experience and others serve only as an important learning. We aren’t going to comment on specific tests at this time,” they added.

Stations is live now on iOS in Australia. More information on the app is on the (newly updated) Help site here.

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Asto, the bookkeeping app from Santander, adds invoice financing for freelancers and SMEs

Asto, the Santander-owned “upstart” developing financial tools for freelancers and SMEs, is adding invoice financing to its bookkeeping app.

The new offering, which potentially opens up so-called “micro-financing” to a much broader business market, comes hot on the heels of Santander Group acquiring Albert, an invoicing and expenses app for freelancers and micro-businesses. Albert’s functionality has now been integrated into Asto, with Albert co-founder Ivo Weevers becoming Asto’s chief product and design officer.

In a call, Weevers described Asto’s mission as wanting to create a “full stack of financial services for self-employed people [and other micro businesses].” Financial services for SMEs is a “huge, fast-growing market,” he says, adding that “Asto is innovating on the bookkeeping side, [while] other players on the market are working on the bank account side.”

“A lot of people are struggling with trying to understand and get access to finances that might help them in growing their business or overcoming certain periods of their business where extra cash would be really handy,” he tells me.

“What we’re doing now is providing a comprehensive solution where we help people with their daily tasks around bookkeeping and understanding where they are financially, but also connecting dots seamlessly with a financial solution. This is what this new micro-financing solution is all about.”

In a demo I’m given of the new invoice financing feature, it all feels relatively painless. After signing up to Asto and applying for the micro-finance option, you’re given an estimated pot of credit from which to drawn down on per invoice financed.

Invoices can be issued simply within the mobile app (or uploaded to it), which in itself is quite a time saver. Anyone who freelances knows that writing invoices and tracking them is a pain. Even more so is waiting to be paid.

Next to each invoice is a finance button. Clicking on it initiates the micro loan, with clear signposting on how much you’ll need to pay back and when. The time frame is based on the payment terms of your issued invoice with a bit of extra leeway if needed.

“Micro-financing used to be accessible only for the larger SMEs, people with financial knowledge and the time to go into a branch and talk to an account manager and wait for a few weeks to get a decision,” explains Weevers.

“One of the innovate steps we are trying to do here is we are making this option available for the smaller end of the SME market, which is by far the biggest and by far the most unserved. By doing it on mobile, which is their favourite device, and also doing it in a matter of minutes rather than having to wait for weeks,” he adds.

Meanwhile, I’m told that the credit itself is provided by Asto via owner Santander. Noteworthy is that the invoice financing feature doesn’t for the time being use transaction data pulled in from bank accounts you have linked to the app. Instead, Asto is using a range of other data points and info you provide when first applying for the micro-financing option.

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Takeaways from F8 and Facebook’s next phase

Extra Crunch offers members the opportunity to tune into conference calls led and moderated by the TechCrunch writers you read every day. This week, TechCrunch’s Josh Constine and Frederic Lardinois discuss major announcements that came out of Facebook’s F8 conference and dig into how Facebook is trying to redefine itself for the future.

Though touted as a developer-focused conference, Facebook spent much of F8 discussing privacy upgrades, how the company is improving its social impact, and a series of new initiatives on the consumer and enterprise side. Josh and Frederic discuss which announcements seem to make the most strategic sense, and which may create attractive (or unattractive) opportunities for new startups and investment.

“This F8 was aspirational for Facebook. Instead of being about what Facebook is, and accelerating the growth of it, this F8 was about Facebook, and what Facebook wants to be in the future.

That’s not the newsfeed, that’s not pages, that’s not profiles. That’s marketplace, that’s Watch, that’s Groups. With that change, Facebook is finally going to start to decouple itself from the products that have dragged down its brand over the last few years through a series of nonstop scandals.”

(Photo by Justin Sullivan/Getty Images)

Josh and Frederic dive deeper into Facebook’s plans around its redesign, Messenger, Dating, Marketplace, WhatsApp, VR, smart home hardware and more. The two also dig into the biggest news, or lack thereof, on the developer side, including Facebook’s Ax and BoTorch initiatives.

For access to the full transcription and the call audio, and for the opportunity to participate in future conference calls, become a member of Extra Crunch. Learn more and try it for free. 

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Facebook pivots to what it wishes it was

In Facebook’s dreams, it’s a clean and private place. People spend their time having thoughtful discussions in “meaningful” Groups, planning offline meetups with Events, or laughing together in a Facebook Watch party.

In reality, Facebook is a cluttered mess of features that seem to constantly leak user data. People waste their time viewing inane News Feed posts from “friends” they never talk to, enviously stalking through photos of peers, or chowing on click-bait articles and viral videos in isolation. Facebook will never shake this reputation if it just keeps polishing its old features.

That’s why Facebook is rolling out what could be called an “aspirational redesign” known as FB5. Rather than polishing what Facebook was, it tries to spotlight what it wants to be. “This is the biggest change we’ve made to the Facebook app and site in five years” CEO Mark Zuckerberg said to open Facebook’s F8 conference yesterday.

The New Facebook

Most noticeably, that starts with sucking much of the blue out of the Facebook interface to making it look sparse and calming — despite a More button that unveils the social network’s bloat into dozens of rarely used features. A new logo features a brighter blue bubble around Facebook’s distinctive white f, which attempts to but a more uplifting spin on a bruised brand.

Functionally, FB5 means placing Groups near the center of a freshly tabbed interface for the both Facebook’s website and app, and putting suggestions for new ones to join across the service. “Everywhere there are friends, there should be Groups” says the head of the Facebook app Fidji Simo. Groups already has 1 billion monthly users, so Facebook is following the behavior pattern and doubling down. But Facebook’s goal is not only to have 2.38 billion people using the feature — the same number as use its whole app — but to get them all into meaningful Groups that emblematize their identity. 400 million already are. And now Groups for specific interests like gaming or health support will get special features, and power users will get a dashboard of updates across all their communities.

Groups will be flanked by Marketplace, perhaps the Facebook feature with the most latent potential. It’s a rapidly emerging use case Facebook wants to fuel. Just a a year and a half after launch, Marketplace had 800 million monthly users. Zuckerberg took Craigslist, added real identity to thwart bad behavior, and now is bolting it to the navigation bar of the most-used app on earth. The result is a place where it’s easy to put things up for sale and get tons of viewers. I once sold a couch on Marketplace in 20 minutes. Now sellers can take payments directly in the app instead of with cash or Venmo, and they can offer to ship items anywhere at the buyer’s expense. By following Zuckerberg’s mandate that 2019 focus on commerce, Facebook has become a viable Shopify competitor.

If Groups is what’s already working about Facebook’s future, Watch is the opposite. It’s a product designed to capture the video viewing bonanza Facebook observes on Netflix and YouTube. But without tent pole content like a “Game Of Thrones” or “Stranger Things”, it’s failed to impact the cultural zeitgeist. The closest thing it has to must-see video is Buffy The Vampire Slayer re-runs and a docuseries on NBA star Steph Curry. Facebook claims 75 million people now Watch for at least one minute per day though those 60 seconds don’t have to be  sequential. That’s still just 4 percent of its users. And a Diffusion study found 50 percent of adult US Facebook users had never even heard of Watch. Sticking it front and center demonstrates Facebook commitment to making Watch a hit even if it has to cram it down our throats.

Not The Old Facebook

The products of the past got little love on stage at F8. Nothing new for News Feed, Facebook’s mint but also the source of its misinformation woes. In the age of Snapchat and Zuckerberg’s newfound insistence on ephemerality to prevent embarrassment, the Timeline profile chronicling your whole Facebook life got nary a mention. And Pages for businesses that were the center of its monetization strategy years ago didn’t find space in the keynote, similar to how they’ve been butted out of the News Feed by competition and Facebook’s philosophical shift from public content to friends and family.

The one thing we heard a lot about but didn’t actually see much of was privacy. Zuckerberg started the conference declaring “The future is private!” He spoke about how Facebook plans to make its messaging apps encrypted, how it wants to be a living room rather than just a town hall, and how it’s following the shift in user behavior away from broadcasting. But we didn’t see any new privacy protections for the developer platform, a replacement for its Chief Security Officer that’s been vacant for nine months, or the Clear History feature Zuckerberg announced last year.

“I get that a lot of people aren’t sure that we’re serious about this. I know that we don’t exactly have the strongest reputation on privacy right now, to put it lightly” Zuckerberg joked without seeming to generate a single laugh. Combined with having little to show to enhance privacy, making fun of such a dire situation doesn’t instill much confidence. When Zuckerberg does take things seriously, it quickly manifests itself in the product like with Facebook’s 2012 shift to mobile, or in the company like with 2018’s doubling of security headcount. He knew mobile and content moderation failures could kill his network. But does someone who told Time magazine in 2010 that “What people want isn’t complete privacy” truly see a loose stance on privacy as an existential threat?

Interoperable, encrypted messaging will boost privacy, but it’s also just good business logic given Zuckerberg’s intention to own chat — the heart of your phone. Facebook’s creepiness stems from it sucking in data to power ad targeting. Nothing new was announced to address that. Despite his words, perhaps Zuckerberg doesn’t aspire to make Facebook as private as he aspired to make it mobile and secure. 

Wired reported that Zuckerberg authored a strategy book given to all employees ahead of the IPO that noted “If we don’t create the thing that kills Facebook, someone else will.” But F8 offered a new interpretation. Maybe given the lack of direct competitors in its league, and the absence of a mass exodus over its constant privacy scandals, it was the outdated product itself that was killing Facebook. The permanent Facebook. The all-you-do-is-scroll Facebook. The bored-of-my-friends Facebook. Users were being neglected rather than pushed away or stolen. By ignoring the past and emphasizing the products it aspires to have dominate tomorrow — Groups, Marketplace, Watch — Facebook can start to unchain itself from the toxic brand poisoning its potential.

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Nine lessons on how Niantic reached a $4B valuation

We’ve captured much of Niantic’s ongoing story in the first three parts of our EC-1, from its beginnings as an “entrepreneurial lab” within Google, to its spin-out as an independent company and the launch of Pokémon GO, to its ongoing focus on becoming a platform for others to build augmented reality products upon.

It’s not an origin story that serves as an easily replicable blueprint — but if we zoom out a bit, what’s to be learned?

A few key themes stuck with me as I researched Niantic’s story so far. Some of them – like the challenges involved with moving millions of users around the real world – are unique to this new augmented reality that Niantic is helping to create. Others – like that scaling is damned hard – are well-understood startup norms, but interesting to see from the perspective of an experienced team dealing with a product launch that went from zero to 100 real quick.

The reading time for this article is 21 minutes (5,125 words).

Build on top of what works best

Everything Niantic has built so far is an evolution of what the team had built before it. Each major step on Niantic’s path has a clear footprint that precedes it; a chunk of DNA that proved advantageous, and is carried along into the next thing.

Looking back, it’s a cycle we can see play out on repeat: build a thing, identify what works about it, trim the extra bits, then build a new thing from that foundation.

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Sean Parker’s Brigade/Causes acquired by govtech app Countable

Causes grew to a jaw-dropping 200 million users as one of the first 10 Facebook platform apps. Started by Facebook co-founder Sean Parker, it was meant to turn a generation into activists and philanthropists. Causes acquired Votizen to augment shallow clicktivism with a way to remind friends to vote. But after Facebook went mobile and the web platform waned, Parker arranged Causes’ sale to his newer civic tech effort Brigade, for which he’d led a $9.3 million Series A and later fed more money. Brigade’s ballot guide was used by 250,000 people in the 2016 election, leading to 5 million Get Out The Vote messages sent, but the startup’s apps for connecting with campaigns or debating political issues never went viral like Causes.

Now both Causes’ and Brigade’s stories are coming to an end. In February, we caught wind of Brigade selling off its high-grade engineering team to Pinterest in an acqui-hire while it sought a home for its IP. Today, Brigade announces its technology and data have been acquired by politician-tracking service Countable. Terms of the deal were not disclosed, but it’s unlikely that Brigade’s Series A investors earned a return.

“While we didn’t reach the ultimate mountaintop, I think we moved the entire civic tech space forward,” Brigade CEO Matt Mahan tells me. “Countable offers a unique opportunity to bring greater scale to some of our best ideas, and our previous work will in turn accelerate their already impressive progress.”

Brigade’s features

Countable lets people view summaries of upcoming legislation, contact their representatives about their opinion and track the officials’ votes. “Brigade was founded with the non-partisan mission to reinvent how Americans participate in politics. When they decided to bring their journey to a close, Matt and Brigade’s leadership team sought a mission-aligned company to acquire their technology, and a responsible place to point any members of their community who were eager to remain civically active and engaged,” says Countable CEO Bart Myers, whose tech has powered 35 million civic actions. “They approached Countable — an obvious fit for our commitment to lowering barriers to civic entry and empowering meaningful action, and we’re excited to provide a home for their technology moving forward.”

Brigade CEO Matt Mahan

Mahan admits that a potentially fatal wrong turn for Brigade was pivoting its product to “debates” in 2016. “We quickly learned that this level of openness resulted in less substantive discussion, more personal attacks and fewer participants willing to add their voices: the opposite of our goals. By removing too many barriers, debates empowered the loudest and most aggressive voices in the room,” he tells me. The startup course-corrected to focus on making real political impact with petitions and tools for contacting representatives.

By 2018, Mahan realized that “after two election cycles Brigade had not achieved the user scale we know is required to fundamentally transform our politics . . . For a company set up to be a civic moonshot, this was simply not good enough.” Parker’s team did not provide TechCrunch a statement or commentary on Brigade’s decline. The startup’s San Francisco-based engineering team was too pricey for civic tech companies to afford, but those that could pay the steep price didn’t need Brigade’s IP. So after approaching a half-dozen potential acquirers, Mahan split the company, selling the team to Pinterest and the tech to Countable. The cash and stock deal will make Brigade investors shareholders in Countable, and Mahan is taking an advisory role.

To further their contribution to the democracy innovation community, Countable has agreed to open-source Brigade’s voter matching software. This allows apps to tie a user to their official voting record to offer personalized features, like reminders of upcoming elections, petitions for local issues and ways to contact their elected officials. Seth Flaxman, the CEO of civic tech software developer Democracy Works, which built TurboVote, says, “This is extremely difficult technology to build and can help TurboVote determine which of our 6 million users needs more help registering to vote. They are passing the baton, making it possible for nonprofits like ours to build off their progress.”

Countable

But there was one more loose end to tie up. Causes sucked in a ton of Facebook user data in the early days of the platform before restrictions were put in place (too late to stop Cambridge Analytica). So Mahan tells me, “Brigade proactively reached out to Facebook and worked with them and a third-party consultant to conduct a comprehensive review to identify and delete user data that was not essential for providing the existing app experience. In all, we deleted billions of rows of data that ethically we felt should not be transferred.”

As one of the most well-funded civic tech startups, Brigade’s breakup could cast a shadow on the space that includes MoveOn and Change.org. Consumer-focused apps for improving democracy are tough to monetize. It may fall to more sustainable democracy-focused startups like grassroots mass-texting app Hustle or nonprofits like Avaaz to arm the public with the equipment and knowledge necessary to participate in the political process. Given the deep polarization and animosity between nations’ political parties around the world, we need all the tools to amplify truth and civility we can get.

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Developers can now verify mobile app users over WhatsApp instead of SMS

Facebook today released a new SDK that allows mobile app developers to integrate WhatsApp verification into Account Kit for iOS and Android. This will allow developers to build apps where users can opt to receive their verification codes through the WhatsApp app installed on their phone instead of through SMS.

Today, many apps give users the ability to sign up using only a phone number — a now popular alternative to Facebook Login, thanks to the social network’s numerous privacy scandals that led to fewer people choosing to use Facebook with third-party apps.

Plus, using phone numbers to sign up is common with a younger generation of users who don’t have Facebook accounts — and sometimes barely use email, except for joining apps and services.

When using a phone number to sign in, it’s common for the app to confirm the user by sending a verification code over SMS to the number provided. The user then enters that code to create their account. This process can also be used when logging in, as part of a multi-factor verification system where a user’s account information is combined with this extra step for added security.

While this process is straightforward and easy enough to follow, SMS is not everyone’s preferred messaging platform. That’s particularly true in emerging markets like India, where 200 million people are on WhatsApp, for example. In addition, those without an unlimited messaging plan are careful not to overuse texting when it can be avoided.

That’s where the WhatsApp SDK comes in. Once integrated into an iOS or Android app, developers can offer to send users their verification code over WhatsApp instead of text messaging. They can even choose to disable SMS verification, notes Facebook.

This is all a part of WhatsApp’s Account Kit, which is a larger set of developer tools designed to allow people to quickly register and log in to apps or websites using only a phone number and email, no password required.

This WhatsApp verification codes option has been available on WhatsApp’s web SDK since late 2018, but hadn’t been available with mobile apps until today.

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Old Facebook finally wants you to ‘Meet New Friends’

Facebook’s social graph is aging, full of long-lost acquaintances and hometown friends you don’t care much about seeing in the News Feed any more. But Facebook is now testing a pivot away from its core identity of connecting you with existing friends so it can revitalize the social graph and keep people coming back. Facebook’s “Meet New Friends” lets you browse people from shared communities such as your school, workplace or city who’ve also opted in to the feature. Announced today at Facebook’s F8 conference, Meet New Friends now in testing in a few markets before it’s rolled out more widely soon.

Meet New Friends could give people fresh pals to follow in their News Feed, or help recently registered users grow their network until they have access to enough content to keep them busy. And eventually, Facebook could layer on monetization features similar to dating apps where users pay to be shown more prominently to potential connections.

Fidji Simo, the head of Facebook’s main app, tells me Meet New Friends was based on emerging behaviors the company had spotted. “Developing relationships with people they didn’t already know is very different from the core use case of Facebook,” but she notes, “We’ve already seen that naturally happen in Groups, and Meet New Friends will make that a bit easier.”

When users open Meet New Friends, they pick the communities through which they’re open to meeting new friends. For now they choose between schools, employers and locations, but Facebook will eventually add Groups too. In that sense it works a bit like Facebook Dating, which rolls out to 14 new countries today and opens to dating friends with its new Secret Crush feature.

Algorithms will sort potential connections by who is most relevant, such as those with mutual friends or shared interests, but you won’t get “matched” where both users have to state their interest in the other. Instead, users can just browse profiles, and then either send people a friend request (which might feel a bit out of the blue), or send them a single text-only message to a recipient’s dedicated Meet New Friends chat inbox. They can’t message that same person again until they respond (to prevent spamming), and the text-only limitation ensures no unsavory photos get blasted around. If they do reply, the thread moves to Facebook Messenger.

Meet New Friends will pit Facebook against a range of other apps, from local-focused Meetup and Nextdoor to verticalized apps like Hey Vina for women only to dating-affiliated apps like Bumble BFF. But Facebook benefits from its ubiquity, so users can try Meet New Friends without feeling embarrassed by downloading an app just to make them less lonely.

For years, the mildly creepy People You May Know feature has been a cornerstone of Facebook’s growth strategy. But it’s still just about recreating your offline social graph online. As Facebook strives to become more meaningful to people’s lives, fostering new friendships could give people a fuzzy feeling about the giant corporation.

Click below to check out all of TechCrunch’s Facebook conference coverage from today:

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Facebook Dating opens to friends with Secret Crush

Facebook built Dating to be privacy-safe, hoping to avoid the awkwardness of friends or family checking out your romance profile. But now Facebook has found a way to let you silently express your affection for a friend without them knowing unless they reciprocate.

Facebook announced today at its F8 conference that Dating is opening in 14 more countries, bringing the total to 19. It will launch in the U.S. before the end of the year. Dating brings with it a new feature called Secret Crush that expands it beyond strangers and friends-of-friends. Choose up to 9 friends you like-like. If they’ve opted into Facebook Dating, they’ll get a notification that some friend has a crush on them. If they add you as a Secret Crush too, you’re both notified and can chat on Messenger.

Facebook Dating product manager Charmaine Hung tells me that “I have 2,000 Facebook friends. I’m not best friends with all 2,000 people, and there’s a good chance that one of that could be a really good match with me. I trust them, I appreciate them and I know we’re compatible. The only thing missing is knowing if we’re both interested in being more than just friends without the fear of rejection if you were to do this in real life.”

Facebook announced Dating at F8 a year ago and launched it in Colombia in September. Users opt-in, and then browse Events and Groups they’re part of for potential matches. They send them a text-only message based on something in their profile, which goes to a special Dating inbox. And if that person reciprocates, they can chat and maybe meet up. Now it’s opening in the Philippines, Vietnam, Singapore, Malaysia, Laos, Brazil, Peru, Chile, Bolivia, Ecuador, Paraguay, Uruguay, Guyana and Suriname.

One concern with Secret Crush is that users might spam the feature by constantly adding and removing people from their list until they discover a match. That’s why Facebook will only let you sub out one person per day after you reach your initial limit of 9.

Currently there’s still no plan to monetize Dating, but that’s not the point. After years of scandals, Facebook needs to prove it deserves to be your social network. Mindlessly browsing the News Feed has proven to be exhausting and at times detrimental to health. But if the app can introduce you to your future spouse, or even just a summer fling, you might keep a place in your heart for Facebook too.

Click below to check out all of TechCrunch’s Facebook conference coverage from today:

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