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Leo AR, user-facing marketplace for 3D objects, raises $3 million seed round

Apple’s introduction of ARKit changed the game for entrepreneurs, not unlike the App Store did on a much, much larger scale back in 2008.

One entrepreneur, Dana Loberg, has capitalized on the launch of ARKit with her startup Leo AR.

Leo is the result of a few pivots. The company first started out as MojiLala, which launched out of betaworks. It was a hassle-free sticker marketplace that allowed artists to upload their stickers and sell them through the platform for end-users to use in a number of locations.

In 2017, MojiLala released a new app called Surreal, which allowed artists to sell virtual objects to end users and lay them over their camera to record fun content. Now as Leo AR, the company is focused on 3D augmented reality objects without losing focus on giving artists an easy-to-use outlet for their virtual wares.

Today, Leo is announcing the raise of a $3 million seed round led by Great Oaks Ventures, with participation from Dennis Phelps of IVP, betaworks, Deutsch Telekom, Quake Capital and other angel investors.

Image Credits: Leo AR

The app operates on a freemium basis, letting end users subscribe to certain artists they like on the platform. Leo takes a 30% cut on those purchases, but Loberg said her main priority beyond generating revenue is ensuring that artists get paid well and are incentivized to create and sell through her platform.

Loberg also shared that the app has exploded in popularity among children, who enjoy creating videos with dinosaurs or dragons in them.

In fact, Leo users have created more than 8 million videos on the platform, and active users add more than 85 3D objects to their scenes and average 10+ minutes in the app when they use it.

Leo not only lets users distribute their content to other platforms like Instagram, but it also has a feed of the best videos created in Leo for others to check out.

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John Borthwick & Matt Hartman of betaworks discuss coronavirus adaptation strategies

Yesterday, I had the pleasure of hopping on Zoom with betaworks’ John Borthwick and Matt Hartman to discuss the tech world’s adaptation to this new locked-down world, the future of new media and answer questions from the audience.

We discussed whether new media companies can raise capital right now, and touched on emerging trends around audio, voice, AR, live events, travel-related companies and many other topics.

It was a delight, and I’m excited to do more of these in the future.

For those of you who missed the Zoom, here’s a rundown of what we discussed (audio embed below).

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Here are the six startups in Betaworks’ new Audiocamp

Back in September, Betaworks put out a call for startups to participate in its latest “camp,” this one focused on audio.

Danika Laszuk, the head of Betaworks Camp, told me at the time that the startup studio was looking for companies that are trying to build “audio-first” experiences for smart speakers and wireless headphones, or pursuing other audio-related opportunities like synthetic audio or social audio.

Now Betaworks is unveiling the six startups that it has selected to participate in the program, covering everything from game assistants to AI music production. Each startup receives a pre-seed investment from Betaworks, and will be working out of the firm’s New York City offices for the next three months.

Here are the companies:

  • Storm is working on a live audio platform that it says will allow your friends to ask you anything.
  • Midgame is building voice-enabled gaming assistants, starting with a bot that answers questions to improve your gameplay in Stardew Valley.
  • Scout FM is developing hands-free listening experiences such as podcast radio stations and voice assistants for Amazon Alexa, Apple CarPlay and Android Auto.
  • Never Before Heard Sounds is an AI-powered music production company, working to create new sounds and new musical data sets.
  • SyncFloor is a marketplace of commercial music that can be used in movies, TV shows, ads, video games and elsewhere.
  • The Next Big Idea Club offers a subscription for curated nonfiction books — you can buy the books themselves, but also read, watch or listen to condensed summaries.

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Streem buys Selerio in effort to boost its AR teleconferencing tech

Streem, an AR startup that is meshing teleconferencing software with computer vision tech, has acquired a small U.K. startup called Selerio that’s also building out augmented reality technologies.

The startups were both members of betaworks’ VisionCamp accelerator program last year where they met and collaborated while tackling separate computer vision problems in the AR space.

Streem’s play is that they can create a kind of souped-up Skype call that enables home service providers to get more visual data in the course of chatting with home-owners. This can be something simple like character recognition that enables users to point their phone rather than reciting a 30-character serial number; the company can also take measurements or save localized notes.

The Portland startup has disclosed more than $10 million in funding, though they have also just closed a new bout of funding (they’re not sharing the amount yet).

Selerio’s focus is all about gaining a contextual understanding of a space. The startup was spun out of research from Cambridge University. The company has not disclosed its amount of seed funding, but betaworks, Greycroft Partners and GGV Capital are among its backers. All three of Selerio’s employees have joined Streem as part of the acquisition.

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Where top VCs are investing in media, entertainment & gaming

Most of the strategy discussions and news coverage in the media and entertainment industry is concerned with the unfolding corporate mega-mergers and the political implications of social media platforms.

These are important conversations, but they’re largely a story of twentieth-century media (and broader society) finally responding to the dominance Web 2.0 companies have achieved.

To entrepreneurs and VCs, the more pressing focus is on what the next generation of companies to transform entertainment will look like. Like other sectors, the underlying force is advances in artificial intelligence and computing power.

In this context, that results in a merging of gaming and linear storytelling into new interactive media. To highlight the opportunities here, I asked nine top VCs to share where they are putting their money.

Here are the media investment theses of: Cyan Banister (Founders Fund), Alex Taussig (Lightspeed), Matt Hartman (betaworks), Stephanie Zhan (Sequoia), Jordan Fudge (Sinai), Christian Dorffer (Sweet Capital), Charles Hudson (Precursor), MG Siegler (GV), and Eric Hippeau (Lerer Hippeau).

Cyan Banister, Partner at Founders Fund

In 2018 I was obsessed with the idea of how you can bring AI and entertainment together. Having made early investments in Brud, A.I. Foundation, Artie and Fable, it became clear that the missing piece behind most AR experiences was a lack of memory.

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WeWork backs New York tech clubhouse Betaworks Studios

Betaworks Studios, the brainchild of New York City seed-stage venture capital fund Betaworks, has amassed the support of WeWork, or The We Company, as they now call themselves.

JLL Spark Ventures and the co-working giant have led co-led a $4.4 million investment in the membership-based co-working club described as a supportive community for builders. Launched in 2018, Betaworks Studios offers entrepreneurs, artists, engineers and creatives a place to work on projects and accumulate a network, similar to a WeWork hub.

Betaworks Ventures, which filed today to raise a $75 million sophomore fund, and BBG Ventures have also participated in the funding for Betaworks Studio, which previously raised a pre-seed round led by BBG.

Founded in 2008 by John Borthwick, Betaworks operates an investment fund, an accelerator and builds companies internally with spinouts including Giphy, Digg and Bit.ly. The idea for Betaworks Studios was to expand its resources and network to the greater entrepreneurial community.

Borthwick brought on Daphne Kwon, the former chief financial officer of Goop, to run the studio arm, which charges $2400 per year or $225 per month.

Betaworks says its studio has hosted some 9,000 people for meetings and speaking events. It currently has only one club location in New York City’s Meatpacking District but plans to open additional studios with the fresh cash.

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Morphin instantly Deepfakes your face into GIFs

Want to star in your favorite memes and movie scenes? Upload a selfie to Morphin, choose your favorite GIF and your face is grafted in to create a personalized copy you can share anywhere. Become Tony Stark as he suits up like Iron Man. Drop the mic like Obama, dance like Drake or slap your mug on Fortnite characters.

Now after three years in stealth developing image-mapping technology, Morphin is ready to launch its put-you-in-a-GIF maker. While it might look like just a toy, investors see real business potential. Morphin raised $1 million last summer from Betaworks, the incubator that spawned Giphy, plus Founders Fund, Precursor, Shrug Capital and Boost.vc’s accelerator.

Elon Musk as Iron Man

“We believe in the future you’ll be able to be the main character in your own film. Imagine a super hero movie where you’re the main protagonist?,” co-founder Loic Ledoux asks. “That sounded like science fiction a few years ago and now with AI and computer vision we definitely see our tech going there.”

Ledoux also wants to reclaim faceswaps as something fun rather than a weapon for misinformation. “Deepfakes brought something pretty negative to computer vision. But it’s not all bad. It’s about how you use the tech to give people a new tool for self expressions and storytelling.” And since Morphin re-generates the whole clip from scratch with CGI animation, they look right at a glance, but clearly aren’t manipulated copies of the original video designed to fool anyone.

Kanye performs magic

Morphin started three years ago with the intention to build personalized avatars for games and VR so you could be a FIFA soccer player or Skyrim knight. Ledoux had started a 3D printing company to explore opportunities in scanning and modeling when he saw a chance to connect your real and virtual faces. He teamed up with his co-founder Nicholas Heriveaux, who’d spent 13 years working on 3D tech while modding games like Grand Theft Auto to insert his avatar and assets.

What they quickly recognized was that “People were just reacting to themselves on the screen,” ignoring the gameplay, Ledoux recalls. “Being able to see yourself as a hero was the underlying sentiment, so we focused on video completely.” Recognizable GIFs became its preferred medium, as they combine familiarity and the ability to convey complex emotions with a template that’s easy to personalize so they stand out.

Morphin’s tech no longer requires 3D scanning hardware and it works with just a regular selfie. You just snap a headshot, select a GIF from its iOS or Android app’s library and a few seconds later you have a CGI version of yourself in the scene (with no watermark) that you can export and post. “We wanted it to be super straightforward because we wanted people to relate to the content,” Ledoux notes. Over 1 million scenes have been created by 50,000 beta users, and each time a celebrity shares one of the GIFs Morphin has been sending them for marketing, scores of their followers demand to know which app they were using.

Morphin’s nine-person French team will have to keep innovating to stay ahead of avatar-making competitors like the ubiquitous Snapchat Bitmoji, Genies, Moji Edit and Mirror AI. Facebook, Microsoft and Google all have launched or are building their own avatar creators. But these typically live as 2D stickers or 3D AR animations you overlay on the real world. By using GIFs as a canvas, Morphin takes the pressure off your visage looking perfect and instead emphasizes the message you’re trying to get across.

The challenge will be for Morphin to become a consistent part of people’s communication stack. It’s easy to imagine playing with it and posting a few GIFs. But iconic new GIFs don’t emerge each day and without a social network to stay for, Morphin is at risk of becoming merely a forgotten tool. The app might need TikTok-style challenges like submitting the best personalized GIF to match a prompt or a GIF browsing feed to keep people coming back.

Turning Donald Glover into Jay Gatsby

Morphin isn’t racing to monetize yet, but sees a chance to sell longer premium video scenes à la carte or as an unlimited subscription. Ledoux eventually hopes to unlock new forms of storytelling beyond existing GIFs. There’s also a chance for Morphin to highlight sponsored clips from upcoming movies or TV shows. “In the long-term we’re more interested in the analogy of Lil Miquela and how people are interacting with digital characters,” Ledoux explains, citing a virtual pop star whose developer Brud recently raised at a $125 million valuation.

One of the most exciting things about Morphin is that it will allow people to take the spotlight no matter how they look. Often times certain races, genders and looks are unfairly excluded from starring in today’s most popular media. But Morphin could let the underrepresented take their rightful place as stars of the screen.

Your faithful author Josh Constine dropping the mic like Obama

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betaworks VisionCamp introduces seven new AR/computer vision companies

More than ten years ago, betaworks launched to foster an ecosystem of startups focused on the intersection of media and consumer behavior. While the mission hasn’t changed, the structure has seen some tweaks. The company has introduced its own venture arm, led by Matt Hartman, as well as the more recent launch of betaworks Studios.

But nestled gently between the two are betaworks Camps program. Camps are a sort of hyper-specific accelerator program, within which a small cohort of early-stage startups build out their products within a certain theme, complete with the full resources of betaworks (marketing, legal, space, etc.) as well as a small investment.

Camps first launched with BotCamp, followed shortly by VoiceCamp, and today the graduates of VisionCamp are showing off their wares for the first time at Demo Day.

Camera IQ

Camera IQ calls itself a camera experience manager. The company works with brands and publishers to develop virtual worlds for customers, with partners including Spotify, Neiman Marcus and Viacom. The technology integrates AR toolkits and mobile OSes with brands native apps to offer different experiences for consumers. Camera IQ was founded by Allison Wood and Sonia Tsao. The founders say that the camera represents the next great consumption experience, as well as the next great transaction experience. The company hopes to sit at that intersection.

Facemoji

Livestreaming and FaceTime are now accessible to everyone, but not everyone wants to show their face on these platforms. Enter Facemoji. The startup offers 3D avatar webcams that streams your facial expressions via the avatar without ever showing your real likeness. The company was originally focused on gamers who stream on Twitch, with plans to expand to video chat. Facemoji was founded by Robin Raszka and Tom Krcha.

Leo

Originally called Surreal, Leo offers a vast marketplace of AR objects, stamps and artwork so that users can change the world around them. Leo has raised $1.5 million in seed and has relationships with upwards of 2,000 artists on the platform. The company, which was founded by Dana Loberg and Sahin Boydas, makes money by sharing revenue with artists who create objects for the platform.

Numina

Nearly half of land area in cities is made up of streets, sidewalks and parks, and cities have no data or insights on these spaces. Numina partners with cities to place computer vision sensors on light poles in these areas and offer anonymous flow data about pedestrians in these spaces. The company offers an API for streets, as well, to give developers access to real-time activity and a backlog of activity for their apps, whether it’s for mobility, insurance, real estate, or logistics. Numina was founded by Tara Pham.

Selerio

Selerio brings together the real world and the virtual world by using computer vision to map the layout and objects in a room and replace them with a virtual world. Imagine putting old-school Victorian furniture inside an existing space. The company uses deep learning and computer vision in its technology, which was spun out of Cambridge University. Selerio offers an SDK to developers and is currently being integrated with Apple’s ARKit. Selerio was founded by Ghislain Tasse.

Streem

Streem supports the professional home services industry by using computer vision, machine learning, and AR to capture vital information (like model, make and serial number) through a simply live video chat. Through Streem’s technology, service pros can capture information, take measurements and save notes without ever stepping foot in the client’s home, letting them offer quotes much faster and solve the problem in one try. Streem was founded by Ryan Fink and Sean Adkinson.

Trash TV

Despite the fact that capturing and editing video is more accessible than ever, video editing remains a time-consuming and tedious process. The Trash TV app uses computer vision and AI to edit consumer videos into something beautiful and usable. The company uses a stock video repository that includes proof of creation to fill in the gaps. Trash TV was founded by Hannah Donovan and Anton Marini.

This is the third of betaworks’ Camps. The next one, according to Camps General Manager Danika Laszuk, is focused on the intersection of live streaming and participatory audiences. Dubbed LiveCamp, betaworks hopes to find startups evolving the space as Twitch streaming and apps like HQ continue to pull in large viewerships and the lines between performer and audience are blurred.

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Poncho weather service picks up $2.4 million from Lightspeed Venture Partners

 Poncho, the betaworks-backed weather service, has raised $2.4 million in seed funding led by Lightspeed Ventures. Poncho launched out of betaworks the same year as Giphy and Dots, and uses SMS and email to bring the news to you in an entertaining way. The premise is simple. Instead of having users seek out their own information via weather apps and being bombarded with numbers like… Read More

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Twitter and Betaworks are teaming up in a new fund

Twitter We’re hearing from multiple sources that there’s a new fund coming out of Betaworks, and Twitter is chipping money into it. Twitter is investing at least $10 million in the new fund, according to one source. We don’t know the total size of the venture. In the past, Betaworks has focused on smaller seed investments and has stayed away from outsized funds. Another previous… Read More

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