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Google, Nokia, Qualcomm are investors in $230M Series A2 for Finnish phone maker, HMD Global
Mobile device maker HMD Global has announced a $230M Series A2 — its first tranche of external funding since a $100M round back in 2018 when it tipped over into a unicorn valuation. Since late 2016 the startup has exclusively licensed Nokia’s brand for mobile devices, going on to ship some 240M devices to date.
Its latest cash injection is notable both for its size (HMD claims it as the third largest funding round in Europe this year); and the profile of the strategic investors ploughing in capital — namely: Google, Nokia and Qualcomm.
Though whether a tech giant (Google) whose OS dominates the world’s smartphone market (Android) becoming a strategic investor in Europe’s last significant mobile OEM (HMD) catches the attention of regional competition enforcers remains to be seen. Er, vertical integration anyone? (To wit: It’s a little over two years since Google was slapped with a $5BN penalty by EU regulators for antitrust violations related to how it operates Android — and the Commission has said it continues to monitor the market ‘remedies’.)
In a further quirk, when we spoke to HMD Global CEO, Florian Seiche, ahead of today’s announcement, he didn’t expect the names of the investors to be disclosed — but a press spokesperson had already shared them with us so he duly confirmed the trio are investors in the round. (But wouldn’t be drawn on how much equity Google is grabbing.)
HMD’s smartphones run on Google’s Android platform, which gives the tech giant a firm business reason for supporting the mobile maker in growing the availability of Google-packed hardware in key growth markets around the world.
And while HMD likens its consistent (and consistently updated) flavor of Android to the premium ‘pure’ Android experience you get from Google’s own-brand Pixel smartphones, the difference is the Finnish company offers devices across the range of price points, and targets hardware at mobile users in developing markets.
The upshot is relatively little overlap with Google’s Pixel hardware, and still plenty of business upside for Google should HMD grow the pipeline of Google services users (as it makes money by targeting ads).
Connoisseurs of mobile history may see more than a little irony in Google investing into Nokia branded smartphones (via HMD), given Android’s role in fatally disrupting Nokia’s lucrative smartphone business — knocking the Finnish giant off its perch as the world’s number one mobile maker and ushering in an era of Android-fuelled Asian mobile giants. But wait long enough in tech and what goes around oftentimes comes back around.
“We’re extremely excited,” said Seiche, when we mention Google’s pivotal role in Nokia’s historical downfall in smartphones. “How we are going to write that next chapter on smartphones is a critical strategic pillar for the company and our opportunity to team up so closely with Google around this has been a very, very great partnership from the beginning. And then this investment definitely confirms that — also for the future.”
“It’s a critical time for the industry therefore having a clear strategy — having a clear differentiation and a different point of view to offer, we believe, is a fantastic asset that we have developed for ourselves. And now is a great moment for us to double down on this,” he added.
We also asked Seiche whether HMD has any interest in taking advantage of the European Commission’s Android antitrust enforcement decision — i.e. to fork Android and remove the usual Google services, perhaps swapping them out for some European alternatives, which is at least a possibility for OEMs selling in the region — but Seiche told us: “We have looked at it but we strongly believe that consumers or enterprise customers actually love [Google] services and therefore they choose those services for themselves.” (Millions of dollars of direct investment from Google also, presumably, helps make the Google services business case stack up.)
Nokia, meanwhile, has always had a close relationship with HMD — which was established by former Nokia execs for the sole purpose of licensing its iconic mobile brand. (The backstory there is a clause in the sale terms of Nokia’s mobile device division to Microsoft expired in 2016, paving the way for Nokia’s brand to be returned to the smartphone market without the prior Windows Mobile baggage.)
Its investment into HMD now looks like a vote of confidence in how the company has been executing in the fiercely competitive mobile space to date (HMD doesn’t break out a lot of detail about device sales but Seiche told us it sold in excess of 70M mobiles last year; that’s a combined figure for smartphones and feature phones) — as well as an upbeat assessment of the scope of the growth opportunity ahead of it.
On the latter front US-led geopolitical tensions between the West and China do look poised to generate a tail-wind for HMD’s business.
Mobile chipmaker Qualcomm, for example, is facing a loss of business, as US government restrictions threaten its ability to continue selling chips to Huawei; a major Chinese device maker that’s become a key target for US president Trump. Its interest in supporting HMD’s growth, therefore, looks like a way for Qualcomm to hedge against US government disruption aimed at Chinese firms in its mobile device maker portfolio.
While with Trump’s recent threats against the TikTok app it seems safe to assume that no tech company with a Chinese owner is safe.
As a European company, HMD is able to position itself as a safe haven — and Seiche’s sales pitch talks up a focus on security detail and overall quality of experience as key differentiating factors vs the Android hoards.
“We have been very clear and very consistent right from the beginning to pick these core principles that are close to our heart and very closely linked with the Nokia brand itself — and definitely security, quality and trust are key elements,” he told TechCrunch. “This is resonating with our carrier and retail customers around the world and it is definitely also a core fundamental differentiator that those partners that are taking a longer term view clearly see that same opportunity that we see for us going forward.”
HMD does use manufacturing facilities in China, as well as in a number of other locations around the world — including Brazil, India, Indonesia and Vietnam.
But asked whether it sees any supply chain risks related to continued use of Chinese manufacturers to build ‘secure’ mobile hardware, Seiche responded by claiming: “The most important [factor] is we do control the software experience fully.” He pointed specifically to HMD’s acquisition of Valona Labs earlier this year. The Finnish security startup carries out all its software audits. “They basically control our software to make sure we can live up to that trusted standard,” Seiche added.
Landing a major tranche of new funding now — and with geopolitical tension between the West and the Far East shining a spotlight on its value as alternative, European mobile maker — HMD is eyeing expansion in growth markets such as Africa, Brail and India. (Currently, HMD said it’s active in 91 markets across eight regions, with its devices ranged in 250,000 retail outlets around the world.)
It’s also looking to bring 5G to devices at a greater range of price-points, beyond the current flagship Nokia 8.3. Seiche also said it wants to do more on the mobile services side. HMD’s first 5G device, the flagship Nokia 8.3, is due to land in the US and Europe in a matter of weeks. And Seiche suggested a timeframe of the middle of next year for launching a 5G device at a mid tier price point.
“The 5G journey again has started, in terms of market adoption, in China. But now Europe, US are the key next opportunity — not just in the premium tier but also in the mid segment. And to get to that as fast as possible is one of our goals,” he said, noting joint-working with Qualcomm on that.
“We also see great opportunity with Nokia in that 5G transition — because they are also working on a lot of private LTE deployments which is also an interesting area since… we are also very strongly present in that large enterprise segment,” he added.
On mobile services, Seiche highlighted the launch of HMD Connect: A data SIM aimed at travellers — suggesting it could expand into additional connectivity offers in future, forging more partnerships with carriers.
“We have already launched several services that are close to the hardware business — like insurance for your smartphones — but we are also now looking at connectivity as a great area for us,” he said. “The first pilot of that has been our global roaming but we believe there is a play in the future for consumers or enterprise customers to get their connectivity directly with their device. And we’re partnering also with operators to make that happen.”
“You can see us more as a complement [to carriers],” he added, arguing that business “dynamics” for carriers have also changed substantially — and customer acquisition hasn’t been a linear game for some time.
“In a similar way when we talk about Google Pixel vs us — we have a different footprint. And again if you look at carriers where they get their subscribers from today is already today a mix between their own direct channels and their partner channels. And actually why wouldn’t a smartphone player be a natural good partner of choice also for them? So I think you’ll see that as a trend, potentially, evolving in the next couple of years.”
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Apple goes to war with the gaming industry
Most gamers may not view Apple as a games company to the same degree that they see Sony with PlayStation or Microsoft with Xbox, but the iPhone-maker continues to uniformly drive the industry with decisions made in the Apple App Store.
The company made the news a couple times late this week for App Store approvals. Once for denying a gaming app, and the other for approving one.
The denial was Microsoft’s xCloud gaming app, something the Xbox folks weren’t too psyched about. Microsoft xCloud is one of the Xbox’s most substantial software platform plays in quite some time, allowing gamers to live-stream titles from the cloud and play console-quality games across a number of devices. It’s a huge effort that’s been in preview for a bit, but is likely going to officially launch next month. The app had been in a Testflight preview for iOS, but as Microsoft looked to push it to primetime, Apple said not so fast.
The app that was approved was the Facebook Gaming app which Facebook has been trying to shove through the App Store for months to no avail. It was at last approved Friday after the company stripped one of its two central features, a library of playable mobile games. In a curt statement to The New York Times, Facebook COO Sheryl Sandberg said, “Unfortunately, we had to remove gameplay functionality entirely in order to get Apple’s approval on the stand-alone Facebook Gaming app.”
Microsoft’s Xbox team also took the unusually aggressive step of calling out Apple in a statement that reads, in-part, “Apple stands alone as the only general purpose platform to deny consumers from cloud gaming and game subscription services like Xbox Game Pass. And it consistently treats gaming apps differently, applying more lenient rules to non-gaming apps even when they include interactive content.”
Microsoft is still a $1.61 trillion company so don’t think I’m busting out the violin for them, but iOS is the world’s largest gaming platform, something CEO Tim Cook proudly proclaimed when the company launched its own game subscription platform, Apple Arcade, last year. Apple likes to play at its own pace, and all of these game-streaming platforms popping up at the same time seem poised to overwhelm them.
Image Credits: Microsoft
There are a few things about cloud gaming apps that seem at odds with some of the App Store’s rules, yet these rules are, of course, just guidelines written by Apple. For Apple’s part, they basically said (full statement later) that the App Store had curators for a reason and that approving apps like these means they can’t individually review the apps which compromises the App Store experience.
To say that’s “the reason” seems disingenuous because the company has long approved platforms to operate on the App Store without stamping approval on the individual pieces of content that can be accessed. With “Games” representing the App Store’s most popular category, Apple likely cares much more about keeping their own money straight.
Analysis from CNBC pinned Apple’s 2019 App Store total revenue at $50 billion.
When these cloud gaming platforms like xCloud scale with zero iOS support, millions of Apple customers, myself included, are actually going to be pissed that their iPhone can’t do something that their friend’s phone can. Playing console-class titles on the iPhone would be a substantial feature upgrade for consumers. There are about 90 million Xbox Live users out there, a substantial number of which are iPhone owners I would imagine. The games industry is steadily rallying around game subscription networks and cloud gaming as a move to encourage consumers to sample more titles and discover more indie hits.
I’ve seen enough of these sagas to realize that sometimes parties will kick off these fights purely as a tactic to get their way in negotiations and avoid workarounds, but it’s a tactic that really only works when consumers have a reason to care. Most of the bigger App Store developer spats have played in the background and come to light later, but at this point the Xbox team undoubtedly sees that Apple isn’t positioned all that well to wage an App Store war in the midst of increased antitrust attention over a cause that seems wholly focused on maintaining their edge in monetizing the games consumers play on Apple screens.
CEO Tim Cook spent an awful lot of time in his Congressional Zoom room answering question about perceived anticompetitiveness on the company’s application storefront.
The big point of tension I could see happening behind closed doors is that plenty of these titles offer in-game transactions and just because that in-app purchase framework is being live-streamed from a cloud computer doesn’t mean that a user isn’t still using experiencing that content on an Apple device. I’m not sure whether this is actually the point of contention, but it seems like it would be a major threat to Apple’s ecosystem-wide in-app purchase raking.
The App Store does not currently support cloud gaming on Nvidia’s GeForce platform or Google’s Stadia which are also both available on Android phones. Both of these platforms are more limited in scope than Microsoft’s offering which is expected to launch with wider support and pick up wider adoption.
While I can understand Apple’s desire to not have gaming titles ship that might not function properly on an iPhone because of system constraints, that argument doesn’t apply so well to the cloud gaming world where apps are translating button presses to the cloud and the cloud is sending them back the next engine-rendered frames of their game. Apple is being forced to get pretty particular about what media types of apps fall under the “reader” designation. The inherent interactivity of a cloud gaming platform seems to be the differentiation Apple is pushing here — as well as the interfaces that allows gamers to directly launch titles with an interface that’s far more specialized than some generic remote desktop app.
All of these platforms arrive after the company already launched Apple Arcade, a non-cloud gaming product made in the image of what Apple would like to think are the values it fosters in the gaming world: family friendly indie titles with no intrusive ads, no bothersome micro-transactions and Apple’s watchful review.
Apple’s driver’s seat position in the gaming world has been far from a wholly positive influence for the industry. Apple has acted as a gatekeeper, but the fact is plenty of the “innovations” pushed through as a result of App Store policies have been great for Apple but questionable for the development of a gamer-friendly games industry.
Apple facilitated the advent of free-to-play games by pushing in-app purchases which have been abused recklessly over the years as studios have been irresistibly pushed to structure their titles around principles of addiction. Mobile gaming has been one of the more insane areas of Wild West startup growth over the past decade and Apple’s mechanics for fueling quick transactions inside these titles has moved fast and broken things.
Take a look at the 200 top grossing games in the App Store (data via Sensor Tower) and you’ll see that all 199 of them rely solely on in-app micro-transaction to reach that status — Microsoft’s Minecraft, ranked 50th costs $6.99 to download, though it also offers in-app purchases.
In 2013, the company settled a class-action lawsuit that kicked off after parents sued Apple for making it too easy for kids to make in-app purchases. In 2014, Apple settled a case with the FTC over the same mechanism for $32 million. This year, a lawsuit filed against Apple questioned the legality of “loot box” in-app purchases which gave gamers randomized digital awards.
“Through the games it sells and offers for free to consumers through its AppStore, Apple engages in predatory practices enticing consumers, including children to engage in gambling and similar addictive conduct in violation of this and other laws designed to protect consumers and to prohibit such practices,” read that most recent lawsuit filing.
This is, of course, not how Apple sees its role in the gaming industry. In a statement to Business Insider responding to the company’s denial of Microsoft’s xCloud, Apple laid out its messaging.
The App Store was created to be a safe and trusted place for customers to discover and download apps, and a great business opportunity for all developers. Before they go on our store, all apps are reviewed against the same set of guidelines that are intended to protect customers and provide a fair and level playing field to developers.
Our customers enjoy great apps and games from millions of developers, and gaming services can absolutely launch on the App Store as long as they follow the same set of guidelines applicable to all developers, including submitting games individually for review, and appearing in charts and search. In addition to the App Store, developers can choose to reach all iPhone and iPad users over the web through Safari and other browsers on the App Store.
The impact has — quite obviously — not been uniformly negative, but Apple has played fast and loose with industry changes when they benefit the mothership. I won’t act like plenty of Sony and Microsoft’s actions over the years haven’t offered similar affronts to gamers, but Apple exercises the industry-wide sway it holds, operating the world’s largest gaming platform, too often and gamers should be cautious in trusting the App Store owner to make decisions that have their best interests at heart.
If you’re reading this on the TechCrunch site, you can get more of my weekly opinions and notes on the news by subscribing to Week in Review here, and following my tweets here.
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Google launches the final beta of Android 11
With the launch of Android 11 getting closer, Google today launched the third and final beta of its mobile operating system ahead of its general availability. Google had previously delayed the beta program by about a month because of the coronavirus pandemic.
Image Credits: Google
Since Android 11 had already reached platform stability with Beta 2, most of the changes here are fixes and optimizations. As a Google spokesperson noted, “this beta is focused on helping developers put the finishing touches on their apps as they prepare for Android 11, including the official API 30 SDK and build tools for Android Studio.”
The one exception is some updates to the Exposure Notification System contact-tracing API, which users can now use without turning on device location settings. Exposure Notification is an exception here, as all other Android apps need to have location settings on (and user permission to access it) to perform the kind of Bluetooth scanning Google is using for this API.
Otherwise, there are no surprises here, given that this has already been a pretty lengthy preview cycle. Mostly, Google really wants developers to make sure their apps are ready for the new version, which includes quite a few changes.
If you are brave enough, you can get the latest beta over the air as part of the Android Beta program. It’s available for Pixel 2, 3, 3a, 4 and (soon) 4a users.
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Google updates G Suite for mobile with dark mode support, Smart Compose for Docs and more
Google today announced a major update to its mobile G Suite productivity apps.
Among these updates are the addition of a dark theme for Docs, Sheets and Slides, as well as the addition of Google’s Smart Compose technology to Docs on mobile and the ability to edit Microsoft Office documents without having to covert them. Other updates include a new vertically scrollable slide-viewing experience in Slides, link previews and a new user interface for comments and action items. You can now also respond to comments on your documents directly from Gmail.
For the most part, these new features are now available on Android (or will be in the next few weeks) and then coming to iOS later, though Smart Compose is immediately available for both, while link previews are actually making their debut on iOS, with Android coming later.
Most of these additions simply bring existing desktop features to mobile, which has generally been the way Google has been rolling out new G Suite tools.
The new dark theme will surely get some attention, given that it has been a long time coming and that users now essentially expect this in their mobile apps. Google argues that it won’t just be easier on your eyes but that it can also “keep your battery alive longer” (though only phones with an OLED display will really see a difference there).
Image Credits: Google
You’re likely familiar with Smart Compose at this time, which is already available in Gmail and Docs on the web. Like everywhere else, it’ll try to finish your sentence for you, though given that typing is still more of a hassle on mobile, it’s surely a welcome addition for those who regularly have to write or edit documents on the go.
Even if your business is fully betting on G Suite, chances are somebody will still send you an Office document. On the web, G Suite could already handle these documents without any conversion. This same technology is now coming to mobile as well. It’s a handy feature, though I’m mostly surprised this wasn’t available on mobile before.
As for the rest of the new features, the one worth calling out is the ability to respond to comments directly from Gmail. Last year, Google rolled out dynamic email on the web. I’m not sure I’ve really seen too many of these dynamic emails — which use AMP to bring dynamic content to your inbox — in the wild, but Google is now using this feature for Docs. “Instead of receiving individual email notifications when you’re mentioned in a comment in Docs, Sheets, or Slides, you’ll now see an up-to-date comment thread in Gmail, and you’ll be able to reply or resolve the comment, directly within the message,” the company explains.
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Google is making autofill on Chrome for mobile more secure
Google today announced a new autofill experience for Chrome on mobile that will use biometric authentication for credit card transactions, as well as an updated built-in password manager that will make signing in to a site a bit more straightforward.
Image Credits: Google
Chrome already uses the W3C WebAuthn standard for biometric authentication on Windows and Mac. With this update, this feature is now also coming to Android .
If you’ve ever bought something through the browser on your Android phone, you know that Chrome always asks you to enter the CVC code from your credit card to ensure that it’s really you — even if you have the credit card number stored on your phone. That was always a bit of a hassle, especially when your credit card wasn’t close to you.
Now, you can use your phone’s biometric authentication to buy those new sneakers with just your fingerprint — no CVC needed. Or you can opt out, too, as you’re not required to enroll in this new system.
As for the password manager, the update here is the new touch-to-fill feature that shows you your saved accounts for a given site through a standard Android dialog. That’s something you’re probably used to from your desktop-based password manager already, but it’s definitely a major new built-in convenience feature for Chrome — and the more people opt to use password managers, the safer the web will be. This new feature is coming to Chrome on Android in the next few weeks, but Google says that “is only the start.”
Image Credits: Google
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As remote work booms, Everphone grabs ~$40M for its ‘device as a service’ offer
The latest startup to see an uplift in inbound interest flowing from the remote work boom triggered by the coronavirus pandemic is Berlin-based Everphone, which sells a “mobile as a service” device rental package that caters to businesses needing to kit staff out with mobile hardware plus associated support.
Everphone is announcing a €34 million Series B funding round today, led by new investor signals Venture Capital. Other new investors joining the round include German carrier Deutsche Telekom — investing via its strategic investment fund, Telekom Innovation Pool — U.S.-based early-stage VC AlleyCorp and Dutch bank NIBC.
The Series B financing will go on expanding to meet rising demand, with the startup telling TechCrunch it’s expecting to see a 70-100% increase in sales volume versus the pre-crisis period, thanks to a doubling of inbound leads during the pandemic.
“The global pandemic has been a catalyst for growth in the field of digitization,” said CEO and co-founder, Jan Dzulko, in a statement. “We are currently experiencing a significant increase in demand at home and abroad, which is why we are aiming for European expansion with the funding.”
Everphone describes its offer as a one-stop shop, with the service covering not just the rental of (new or refurbished) smartphones and tablets but an administration and management wrapper that covers support needs, including handling repairs/replacements — with the promise of replacements within 24 hours if needed and less client risk from not having to wrangle traditional rental insurance fine print.
Other touted pluses of its “device as a service” approach include flexibility (users get to choose from a range of iOS and Android devices); lower cost (pricing depends on customer size, device choice and rental term but starts at €7,99 a month for a refurbished budget device, rising up to €49,99 a month for high-end kit with a 12-month upgrade); and rental bundles, which can include standard mobile device management software (such as Cortado and AirWatch) so customers can plug the rental hardware into their existing IT policies and processes.
Everphone reckons this service wrapper — which can also extend to include paid apps (such as Babbel for language learning) as an employee on-device perk/benefit in the bundle — differentiates its offer versus incumbent leasing providers, such as CHG-Meridian or De Lage Landen, and from wholesale distributors.
It also touts its global rollout capability as a customer draw, checking the scalability box.
Its investors (including German carrier, DT) are being fired up by the conviction that the COVID-19-induced shift away from the office to home working will create a boom in demand for well-managed and secured work phones to mitigate the risk of personal devices and personal data mingling improperly with work stuff. (On that front, Everphone’s website is replete with references to Europe’s data protection framework, GDPR, repurposed as scare marketing.)
“Everphone envisions that every employee will one day work via their smartphone,” added Marcus Polke, partner at signals Venture Capital, in a supporting statement. “With this employee-centric approach and integrated platform, everphone goes far beyond the mere outsourcing of a smartphone IT infrastructure.”
The 2016-founded startup has more than 400 customers signed up at this point, both SMEs and multinationals such as Ernst & Young. It caters to both ends of the market with an off-the-shelf package and self-service device management portal that’s intended for SMEs of between 100 and 1,500 employees — plus custom integrations for larger entities of up to 30,000 employees.
It says it’s able to offer “highly competitive” prices for renting new devices because it gives returned kit a second life, refurbishing and reselling devices on the consumer market. “Thanks to this profitable secondary lifespan, we are able to offer highly competitive prices and extensive service levels on our rental devices,” Everphone writes on its website.
The second-hand smartphone market has also been seeing regional growth. Swappie, a European e-commerce startup that sells refurbished iPhones, aligning with EU lawmakers’ push for a “‘right to repair” for electronics, raised its own ~$40 million Series B only last month, for example. Its second-hand marketplace is one potential outlet for Everphone’s rented and returned iPhones.
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Typewise taps $1M to build an offline next word prediction engine
Swiss keyboard startup Typewise has bagged a $1 million seed round to build out a typo-busting, ‘privacy-safe’ next word prediction engine designed to run entirely offline. No cloud connectivity, no data mining risk is the basic idea.
They also intend the tech to work on text inputs made on any device, be it a smartphone or desktop, a wearable, VR — or something weirder that Elon Musk might want to plug into your brain in future.
For now they’ve got a smartphone keyboard app that’s had around 250,000 downloads — with some 65,000 active users at this point.
The seed funding breaks down into $700K from more than a dozen local business angels; and $340K via the Swiss government through a mechanism (called “Innosuisse projects“), akin to a research grant, which is paying for the startup to employ machine learning experts at Zurich’s ETH research university to build out the core AI.
The team soft launched a smartphone keyboard app late last year, which includes some additional tweaks (such as an optional honeycomb layout they tout as more efficient; and the ability to edit next word predictions so the keyboard quickly groks your slang) to get users to start feeding in data to build out their AI.
Their main focus is on developing an offline next word prediction engine which could be licensed for use anywhere users are texting, not just on a mobile device.
“The goal is to develop a world-leading text prediction engine that runs completely on-device,” says co-founder David Eberle. “The smartphone keyboard really is a first use case. It’s great to test and develop our algorithms in a real-life setting with tens of thousands of users. The larger play is to bring word/sentence completion to any application that involves text entry, on mobiles or desktop (or in future also wearables/VR/Brain-Computer Interfaces).
“Currently it’s pretty much only Google working on this (see Gmail’s auto completion feature). Applications such as Microsoft Teams, Slack, Telegram, or even SAP, Oracle, Salesforce would want such productivity increase – and at that level privacy/data security matters a lot. Ultimately we envision that every “human-machine interface” is, at least on the text-input level, powered by Typewise.”
You’d be forgiven for thinking all this sounds a bit retro, given the earlier boom in smartphone AI keyboards — such as SwiftKey (now owned by Microsoft).
The founders have also pushed specific elements of their current keyboard app — such as the distinctive honeycomb layout — before, going down a crowdfunding route back in 2015, when they were calling the concept Wrio. But they reckon it’s now time to go all in — hence relaunching the business as Typewise and shooting to build a licensing business for offline next word prediction.
“We’ll use the funds to develop advanced text predictions… first launching it in the keyboard app and then bringing it to the desktop to start building partnerships with relevant software vendors,” says Eberle, noting they’re working on various enhancements to the keyboard app and also plan to spend on marketing to try to hit 1M active users next year.
“We have more ‘innovative stuff’ [incoming] on the UX side as well, e.g. interacting with auto correction (so the user can easily intervene when it does something wrong — in many countries users just turn it off on all keyboards because it gets annoying), gamifying the general typing experience (big opportunity for kids/teenagers, also making them more aware of what and how they type), etc.”
The competitive landscape around smartphone keyboard tech, largely dominated by tech giants, has left room for indie plays, is the thinking. Nor is Typewise the only startup thinking that way (Fleksy has similar ambitions, for one). However gaining traction vs such giants — and over long established typing methods — is the tricky bit.
Android maker Google has ploughed resource into its Gboard AI keyboard — larding it with features. While, on iOS, Apple’s interface for switching to a third party keyboard is infamously frustrating and finicky; the opposite of a seamless experience. Plus the native keyboard offers next word prediction baked in — and Apple has plenty of privacy credit. So why would a user bother switching is the problem there.
Competing for smartphone users’ fingers as an indie certainly isn’t easy. Alternative keyboard layouts and input mechanism are always a very tough sell as they disrupt people’s muscle memory and hit mobile users hard in their comfort and productivity zone. Unless the user is patient and/or stubborn enough to stick with a frustratingly different experience they’ll soon ditch for the keyboard devil they know. (‘Qwerty’ is an ancient typewriter layout turned typing habit we English speakers just can’t kick.)
Given all that, Typewise’s retooled focus on offline next word prediction to do white label b2b licensing makes more sense — assuming they can pull off the core tech.
And, again, they’re competing at a data disadvantage on that front vs more established tech giant keyboard players, even as they argue that’s also a market opportunity.
“Google and Microsoft (thanks to the acquisition of SwiftKey) have a solid technology in place and have started to offer text predictions outside of the keyboard; many of their competitors, however, will want to embed a proprietary (difficult to build) or independent technology, especially if their value proposition is focused on privacy/confidentiality,” Eberle argues.
“Would Telegram want to use Google’s text predictions? Would SAP want that their clients’ data goes through Microsoft’s prediction algorithms? That’s where we see our right to win: world-class text predictions that run on-device (privacy) and are made in Switzerland (independent environment, no security back doors, etc).”
Early impressions of Typewise’s next word prediction smarts (gleaned by via checking out its iOS app) are pretty low key (ha!). But it’s v1 of the AI — and Eberle talks bullishly of having “world class” developers working on it.
“The collaboration with ETH just started a few weeks ago and thus there are no significant improvements yet visible in the live app,” he tells TechCrunch. “As the collaboration runs until the end of 2021 (with the opportunity of extension) the vast majority of innovation is still to come.”
He also tells us Typewise is working with ETH’s Prof. Thomas Hofmann (chair of the Data Analytic Lab, formerly at Google), as well as having has two PhDs in NLP/ML and one MSc in ML contributing to the effort.
“We get exclusive rights to the [ETH] technology; they don’t hold equity but they get paid by the Swiss government on our behalf,” Eberle also notes.
Typewise says its smartphone app supports more than 35 languages. But its next word prediction AI can only handle English, German, French, Italian and Spanish at this point. The startup says more are being added.
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Gmail for G Suite gets deep integrations with Chat, Meet, Rooms and more
Google is launching a major update to its G Suite productivity tools today that will see a deep integration of Gmail, Chat, Meet and Rooms on the web and on mobile, as well as other tools like Calendar, Docs, Sheets and Slides. This integration will become available in the G Suite early adopter program, with a wider roll-out coming at a later time.
The G Suite team has been working on this project for about a year, though it fast-tracked the Gmail/Meet integration, which was originally scheduled to be part of today’s release, as part of its response to the COVID-19 pandemic.
At the core of today’s update is the idea that we’re all constantly switching between different modes of communication, be that email, chat, voice or video. So with this update, the company is bringing all of this together, with Gmail being the focal point for the time being, given that this is where most users already find themselves for hours on end anyway.
Google is branding this initiative as a “better home for work” and in practice, it means that you’ll not just see deeper integrations between products, like a fill calendaring and file management experience in Gmail, but also the ability to have a video chat open on one side of the window while collaboratively editing a document in real time on the other.
Image Credits: Google
According to G Suite VP and GM Javier Soltero, the overall idea here is not just to bring all of these tools closer together to reduce the task-switching that users have to do.
Image Credits: Google
“We’re announcing something we’ve been working on since a little bit before I even joined Google last year: a new integrated workspace designed to bring together all the core components of communication and collaboration into a single surface that is not just about bringing these ingredients into the same pane of glass, but also realizes something that’s greater than the sum of its parts,” he told me ahead of today’s announcement. “The degree of integration across the different modes of communication, specifically email, chat, and video calling and voice video calling along with our existing physical existing strength in collaboration.”
Just like on the web, Google also revealed some of its plans when it first announced its latest major update to Gmail for mobile in May, with its Meet integration in the form of a new bar at the bottom of the screen for moving between Mail and Meet. With this, it’s expanding to include native Chat and Rooms support as well. Soltero noted that Google thinks of these four products as the “four pillars of the integrated workspace.” Having them all integrated into a single app means you can manage the notification behavior of all of them in a single place, for example, and without the often cumbersome task-switching experience on mobile.
Image Credits: Google
For now, these updates are specific to G Suite, though similar to Google’s work around bringing Meet to consumers, the company plans to bring this workspace experience to consumers as well, but what exactly that will look like still remains to be seen. “Right now we’re really focused. The people who urgently need this are those involved in productivity scenarios. This idea of ‘the new home for work’ is much more about collaboration that is specific to professional settings, productivity and workplace settings,” Soltero said.
Image Credits: Google
But there is more…
Google is also announcing a few other feature updates to its G Suite line today. Chat rooms, for example, are now getting shared files and tasks, with the ability to assign tasks and to invite users from outside your company into rooms. These rooms now also let you have chats open on one side and edit a document on the other, all without switching to a completely different web app.
Also new is the ability in Gmail to search not just for emails but also chats, as well as new tools to pin important rooms and new “do not disturb” and “out of office” settings.
One nifty new feature of these new integrated workspaces is that Google is also working with some of its partners to bring their apps into the experience. The company specifically mentions DocuSign, Salesforce and Trello. These companies already offer some deep Gmail integrations, including integrations with the Gmail sidebar, so we’ll likely see this list expand over time.
Meet itself, too, is getting some updates in the coming weeks with “knocking controls” to make sure that once you throw somebody out of a meeting, that person can’t come back, and safety locks that help meeting hosts decide who can chat or present in a meeting.
Image Credits: Google
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You can now install the first beta of Android 11
After a series of developer previews, Google today released the first beta of Android 11, and with that, it is also making these pre-release versions available for over-the-air updates. This time around, the list of supported devices only includes the Pixel 2, 3, 3a and 4.
If you’re brave enough to try this early version (and I wouldn’t do so on your daily driver until a few more people have tested it), you can now enroll here. Like always, Google is also making OS images available for download and an updated emulator is available, too.
Google says the beta focuses on three key themes: people, controls and privacy.
Like in previous updates, Google once again worked on improving notifications — in this case, conversation notifications, which now appear in a dedicated section at the top of the pull-down shade. From there, you will be able to take actions right from inside the notification or ask the OS to remind you of this conversation at a later time. Also new is built-in support in the notification system for what are essentially chat bubbles, which messaging apps can now use to notify you even as you are working (or playing) in another app.
Another new feature is consolidated keyboard suggestions. With these, Autofill apps and Input Method Editors (think password managers and third-party keyboards), can now securely offer context-specific entries in the suggestion strip. Until now, enabling autofill for a password manager, for example, often involved delving into multiple settings and the whole experience often felt like a bit of a hack.
For those users who rely on voice to control their phones, Android now uses a new on-device system that aims to understand what is on the screen and then automatically generates labels and access points for voice commands.
As for controls, Google is now letting you long-press the power button to bring up controls for your smart home devices (though companies that want to appear in this new menu need to make use of Google’s new API for this). In one of the next beta releases, Google will also enable media controls that will make it easier to switch the output device for their audio and video content.
In terms of privacy, Google is adding one-time permissions so that an app only gets access to your microphone, camera or location once, as well as auto-resets for permissions when you haven’t used an app for a while.
A few months ago, Google said that developers would need to get a user’s approval to access background location. That caused a bit of a stir among developers and now Google will keep its current policies in place until 2021 to give developers more time to update their apps.
In addition to these user-facing features, Google is also launching a series of updates aimed at Android developers. You can read more about them here.
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Grow Credit, which builds credit scores by paying for online subscriptions, gets Mucker cash
Grow Credit, the startup that launched last year to help customers build out their credit scores by providing a credit line for online subscriptions like Spotify and Netflix, has added Mucker Labs as an investor and closed its seed round with $2 million in total commitments.
The Los Angeles startup founded by serial entrepreneur Joe Bayen, had been bootstrapped initially and then received funding from a clutch of core angel investors before signing a deal with Mucker earlier this month, according to Bayen.
Using the Marqeta platform, Grow Credit can extend a loan to customers to expand their subscription services. Using the Mastercard network for payments, and Marqeta’s tools to restrict payment access, Grow offers credit facilities to its customers to pay for their monthly subscriptions. By using Grow Credit for those payments, users can improve their credit scores by as much as 61 points in a nine-month span, says Bayen.
The company doesn’t charge any fees for its loans, but users can upgrade their service. The initial tier is free for access to $15 of credit, once a user connects their bank account. For a $4.99 monthly fee, customers can get up to $50 of subscriptions covered by the service. For $9.99 that credit line increases to $150, Bayen said.
Increases to a user’s credit score can make a significant dent in their costs for things like lease agreements for cars, mortgages for houses and better rates on other credit cards, said Bayen.
“Everything is cheaper, you can get access to a credit card with lower interest rates and better rewards,” he said. “We’re looking at ourselves as the single best route to getting access to an Apple card.”
Additional capital for the new round came from individual investors like DraftKings chief executive, Jason Robins; former National Football League player and hall of famer Ronnie Lott; and Sebastien Deguy, VP of 3D at Adobe.
Coming up, Grow Credit said it has a deal in the works with one very large consumer bank in the U.S. and will be launching the Android version of its app in a few weeks.
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