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Sanity, a platform to build and manage content flows on sites, raises $9.3M from Ev Williams, Threshold and more

There are more than 2 billion websites in existence in the world today, millions of apps and a growing range of digital screens where people and businesses present constantly changing arrays of information to each other. But all that opportunity also has a flip side: How can you say what you want, just how you want to say it, without technical hurdle after hurdle getting in your way?

A startup called Sanity has built a platform to help businesses (and their people) do that more easily with a SaaS platform that lets developers create code and systems to manage content. Now, after picking up some 25,000 customers, from “traditional” publishers like Conde Nast and National Geographic through to hundreds of others like Sonos, Brex, Figma, Cloudflare, Mux, Remarkable, Kleiner Perkins, Tablet Magazine, MIT, Universal Health Services, Eurostar and Nike, it is announcing funding of $9.3 million to fuel its growth.

The funding, a Series A, is being led by Threshold Ventures (the VC formerly known as Draper Fisher Jurvetson, rebranded in 2019 after none of the namesakes remained at the firm), with an interesting cast of others also participating.

They include Ev Williams (who knows a thing or two about “content” as the co-founder of Blogger, Twitter and most recently Medium); Adam Gross, ex-CEO of Heroku; Guillermo Rauch, inventor of NextJS and CEO and co-founder of Vercel; Stephanie Friedman (ex-Xamarin and Microsoft); and Monochrome Capital, the new firm launched by Ben Metcalfe (the co-founder of WP Engine, among many other roles).

Heavybit and Alliance Venture, which led its seed round of $2.4 million last year, also participated. Other existing investors include Mathias Biilman and Chris Bach, co-founders of Netlify; Jon Dahl, CEO and co-founder of Mux; and Edvard Engesæth, co-founder of NURX.

Sanity bills itself as a “content platform”, and the open-ended idea of what that could possibly mean is essentially the essence of what the company is about.

Led by co-founder and CEO Magnus Hillestad, it has crafted a set of tools that can help developers structure how and where content gets created, input and eventually presented to people, with its target audience being any organization or person that might be putting together a digital experience whose content is regularly updated and is not static.

Hillestad said that thinking of content as a separate and dynamic element in digital experiences represents a “paradigm shift” in terms of how the web and other content experiences are developing. The idea, he said, is for an organization “not to be held back by features but to have the code to make the components they want.” He described it as a progression along the same trajectories of “what Twilio did by coming in with APIs for communications, and Figma did with its concept of collaboration.”

While e-commerce has typically been a major customer of such “headless” platforms — they will use services like these to help design and manage the front end, with another service like Shopify to manage the commerce at the back end — it’s actually a basic framework that has been applied to a pretty wide range of use cases at Sanity.

They do include e-commerce experiences, but also companies building interactive tools for customers to look at, mix and match various light fixtures from a lighting consultancy; more standard publishing services; and for helping tailor materials for emergency medical training services.

These days, the medium, as they say, is the message, and in that regard “publishing” has taken on a new meaning in the digital age. Whereas in the past it only referred to materials prepared for print, such as books, magazines and newspapers, these days it can be any kind of content prepared for the web or any other endpoint where it will not only be “read” but potentially manipulated in some way, and likely also changed by the producers as well. The very un-static nature of that content makes it fun and interesting, but also a pain to manage.

Sanity has a notable origin that speaks to how it has always given a wide berth and prime positioning to the sanctity of content. It was built originally by an agency in Oslo, Norway, as part of a remit to rethink and recast how to present works for a new website for OMA, the architecture firm co-founded by the iconic Dutch designer Rem Koolhaas.

The information matrix and content management system concept that they put together was strong enough to use the agency to build more sites using the CMS, and eventually the firm spun Sanity out as its own independent firm, founded by Even Westvang, Hillestad, Oyvind Rostad and Simen Svale Skogsrud.

Part of the team, including Hillestad, relocated to the Bay Area to build the startup and integrate it deeper with the bigger tech ecosystem in the region and build out the concept under a SaaS model, while others remained in Oslo.

In its move to the U.S., Sanity has over the past few years been tapping into a growing market for services to enable those who rely on the web to do business do it in a more creative and dynamic way.

“A decade ago, I co-founded WP Engine with the goal of bringing the power of WordPress to the enterprise and small business buyer,” said Metcalfe in a statement. “Not only are we moving away from monolithic codebases to API-driven services, but the way we think about content is changing; as we create once and expect it to appear across web, apps and even IoT devices. Sanity has reimagined the headless CMS, bringing content closer to the developer where it can exist as the defacto content system of record across an entire organization. With CMS so close to my roots, I couldn’t be more delighted that Sanity is the inaugural investment for Monochrome Capital.”

It is not the only company in this wider area getting a lot of attention. Last week, Shogun — which focuses only on e-commerce and front-end design, raised $35 million. Others include Commercetools, Commerce Layer, Strapi, Contentful and ContentStack. Sanity stands out partly by keeping its focus wider than e-commerce and by not using the words “content” or “commerce” in its name.

“We’re seeing a tidal wave of companies transform and digitize every aspect of their business, but the tools they use limit their progress,” said Josh Stein, partner, Threshold Ventures, in a statement. “Sanity’s content platform liberates content and content owners by enabling a truly collaborative and customizable experience, while treating content as data to maximize content velocity across all customer touchpoints and surfaces. We’re excited to back the Sanity team and their impressive developer-focused content management platform.”

Stein and Jesse Robbins, a partner at Heavybit, are both joining Sanity’s board of directors with this round.

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Is there room for a US equivalent to China’s No. 1 news app?

In China, Toutiao is literally big news.

Not only has its parent company ByteDance achieved a $75 billion valuation, two of its apps — Toutiao, a news aggregator, and Douyin (Tik Tok in China) — are chipping into WeChat’s user engagement numbers, no small feat considering the central role WeChat plays in the daily lives of the region’s smartphone users.

The success of Toutiao (its name means “headline”) prompts the question: why hasn’t one news aggregator app achieved similar success in the United States? There, users can pick from a roster of news apps, including Google News, Apple News (on iOS), Flipboard, Nuzzel and SmartNews, but no app is truly analogous to Toutiao, at least in terms of reach. Many readers still get news from Google Search (not the company’s news app) and when they do use an app for news, it’s Facebook.

The top social media platform continues to be a major source of news for many Americans, even as they express reservations about the reliability of the content they find there. According to research from Columbia Journalism Review, 43% of Americans use Facebook and other social media platforms to get news, but 57% said they “expect the news they see on those platforms to be largely inaccurate.” Regardless, they stick with Facebook because it’s timely, convenient and they can share content with friends and read other’s comments.

The social media platform is one of the main reasons why no single news aggregator app has won over American users the same way Toutiao has in China, but it’s not the only one. Other factors, including differences between how the Internet developed in each country, also play a role, says Ruiwan Xu, the founder and CEO of CareerTu, an online education platform that focuses on data analytics, digital marketing and research.

While Americans first encountered the Internet on PCs and then shifted to mobile devices, many people in China first went online through their smartphones and the majority of the country’s 800 million Internet users access it through mobile. This makes them much more open to consuming content — including news and streaming video — on mobile.

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An Equity deep dive on Patreon

The popular TechCrunch podcast Equity this week launched a new series called Equity Dive, wherein a host interviews the writer of the latest edition of the Extra Crunch EC-1.

If you’ve ever wanted to know everything there is to know about Patreon, the platform that connects creators with fans and their wallets, then this is the show for you. TechCrunch Silicon Valley editor Connie Loizos speaks with Eric Peckham who spent hours upon hours meeting with the Patreon team to learn its origin story and the ins and outs of its business practices to get the company to where it is today.

Read a deep dive of Patreon on Extra Crunch

As Eric says:

The way to think about how Patreon has evolved is I see it in kind of three stages, which was this initial crowd funding platform, and then evolving beyond that to try and be a destination platform for consumers where there would be great content that you just go to Patreon to find and you go to discover creators, kind of a marketplace model. They moved away from that. That was somewhat of a gradual shift and essentially the decision was it’s not good to be stuck in this game of trying to be yet another destination platform for consumers competing with YouTube and Instagram and every single media site out there. Really the opportunity and mission underlies our work is about helping creators and enabling all these independent creators to sustain themselves and to build thriving businesses.

They shifted, they now describe themselves as a SaaS company actually, which is very different from framing yourself as kind of a consumer destination. The long and short of it is they see this opportunity, which is a growing market of independent creators around the world who are building fan bases, and for that particular type of SMB they want to provide essentially the full suite of tools and services that they need to run their businesses.

For access to the full transcription, become a member of Extra Crunch. Learn more and try it for free. 


Connie Loizos: Hi, I’m Connie Loizos and I’d like to welcome you to our first Equity Dive. Once a month we’re going to be dedicating an entire episode to a deep dive into the life of one company. This month I’m joined by Eric Peckham, who has reported extensively on the crowd funding membership platform Patreon. Hi Eric.

Eric Peckham: Hey Connie, excited to be here for the first Equity Dive.

Connie Loizos: Same, so Eric you and I ran into each other first in Berlin but we don’t know each other very well. I’d love to hear more about you. You’re based in LA, and from what I understand you are a media industry analyst. Is that correct?

Eric Peckham: Yes, so I cover through both my own newsletter Monetizing Media, the happenings of the global media and entertainment industry. It’s kind of a very business minded lens on media and entertainment.

Connie Loizos: Well I read your extensive coverage on Patreon and it was really impressive, and I wondered considering how much you wrote, is this sort of a long interest of yours this company or how did you decide to settle on this for your first deep dive for TechCrunch?

Eric Peckham: Yes, it was an exciting process digging into this. We made a short list of exciting companies, a lot of unicorn companies or late stage startups we thought were about to become unicorns, and Patreon jumped out for a number of reasons. One is as someone who runs his own newsletter I have had subscribers to that newsletter suggest creating a Patreon. I’ve looked into it before, so I had a little bit of a creator perspective of just wanting to better understand Patreon and other options in the market. I think from a bigger picture, more of a Silicon Valley perspective, Patreon’s a really fascinating company. They’ve raised over $100 million from top PC firms like Index, CRV, they’re the dominant player in this space they’re targeting, but it’s kind of them versus just the big social media platforms. There isn’t the startup that’s comparable in size to it and it’s really trying to own this whole territory of independent content creators, surveying them with different business tools or services.

Connie Loizos: It is really interesting to think the David and Goliath story involves a $100 million venture backed startup versus, as you say, I know these big players Facebook, YouTube. Let’s start at the beginning, so you decided on Patreon for reasons that I can certainly understand now. How did you set about pitching them on this idea? Because obviously you were going to need a lot of access to them, a lot of their time.

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Talking the future of media with Northzone’s Pär-Jörgen Pärson

We live in the subscription streaming era of media. Across film, TV, music, and audiobooks, subscription streaming platforms now shape the market. Gaming and podcasting could be next. Where are the startup opportunities in this shift, and in the next shift that will occur?

I sat down with Pär-Jörgen “PJ” Pärson, a partner at European venture firm Northzone, to discuss this at SLUSH this past winter. Pärson – a Swede who now runs Northzone’s office in NYC – led the top early-stage investor in Spotify and led the $35 million Series C in $45/month sports streaming service fuboTV (which has roughly 250,000 subscribers).

In the transcript below, we dive into the core investment thesis that has guided him for 20 years, how he went from running a fish distribution to running a VC firm, his best practices for effective board meetings and VC-entrepreneur relationships, and his assessment of the big social platforms, AR/VR, voice interfaces, blockchain, and the frontier of media. It has been edited for length and clarity.

From Fish to VC

Eric Peckham:

Northzone isn’t your first VC firm — Back in 1998, you created Cell Ventures, which was more of a holding company or studio model. What was your playbook then?

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Morning Brew is a daily business briefing built for millennials

What’s the best way to stay up to date on things happening within your industry? Seasoned finance professionals read the Wall Street Journal. Anyone who wants to work in politics reads The Washington Post. In Silicon Valley we have industry-specific news sites like TechCrunch supplemented by Hacker News and others.

But what about young business professionals who either don’t plan on staying in one industry their whole life or just want to stay up to date on the broader business/tech/startups/politics world?

Morning Brew is a daily newsletter designed for young business professionals. Each morning email has a stock market recap, a few short briefs on the most important business news of the day and a small section with lifestyle content. The result is the perfect mix of Wall Street essentials (like market analysis) and tech news (like a deep dive on Y Combinator).

The newsletter, which now has just under 200,000 total subscribers, was founded by Alex Lieberman and Austin Rief in 2015 when they were students at the University of Michigan.

“We worked with more than 75 students to help them prepare for interviews and internships and we’d always ask the question, “How do you keep up with the business world?” It was like every student had rehearsed their answers together beforehand, saying something to the effect of “I read the WSJ…and I read it because it’s a prerequisite to say you’re well-read in business and it’s what my parents do, but it’s dense, dry, and too long to read cover-to-cover,” explained the duo.

So Morning Brew was born. While initially college-focused, that segment has shrunk to 30% of their total audience with the average reader now 28-years-old working in finance, tech, or consulting. Of course there’s nothing stopping an older reader from signing up, and if anything sites like Axios have shown that even non-millennials may now prefer short bullet-point briefings over traditional long-form reporting.

But business-minded millennials are definitely the long-term focus of Morning Brew – and for good reason. The segment is extremely sought after in the advertising world, which has helped the startup monetize early. So far they’ve hosted sponsored native content from brands like Discover Card, Casper and Duke University. The diversity of sponsors shows just how many different industries are trying to reach the demographic.

Similar to other newsletter businesses like theSkimm, Morning Brew has mainly relied on word of mouth referrals and an ambassador program of 700+ students to drive new signups. Total subscribers are nearing 200,000 with a daily open rate hovering around 50%, which for reference is at least double most other popular industry newsletters.

The long term goal is to grow the newsletter into a brand that can touch all aspects of a young professional’s life, including networking. The site is launching a monthly event series this summer to bring together millennials to network and watch panel discussions, which should provide the off-line community building that has proved successful for other media brands.

The startup has raised $750,000 in seed funding from notable media execs including Brian Kelly, founder and CEO of The Points Guy, and is targeting a Series A in 2019.

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Blin.gy puts you inside your favorite music video

screen-shot-2017-02-17-at-11-31-52-am A green-screen effect, or chroma keying, is nothing new. But it’s not really consumer technology — mainly because of the need for an actual green screen, a static camera and studio-quality lighting. But being able to have a live video background behind you is cool. Meet Blin.gy, a new app that’s figured out how to achieve a “mobile green-screen effect.” Read More

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Medium lays off 50 employees, shuts down New York and D.C. offices

Medium CEO and Twitter co-founder Ev Williams. It’s not the happiest new year at social publishing platform Medium, apparently.
According to a blog post from its CEO Ev Williams, also co-founder of Twitter, the well-funded startup is laying off 50 employees in non-engineering roles and shuttering its offices in New York and Washington, D.C.
Williams took the rosiest possible angle on changes happening at Medium, titling his… Read More

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The Athletic is bringing subscription-based local sports coverage to a city near you

OAKLAND, CA - JULY 07:  Kevin Durant speaks to the media during the press conference where he was introduced as a member of the Golden State Warriors after they signed him as a free agent on July 7, 2016 in Oakland, California.  (Photo by Thearon W. Henderson/Getty Images) High-quality local sports coverage isn’t dead. At least that’s the premise upon which The Athletic is building its business. The young startup, part of Y Combinator’s Summer 2016 class, is trying to reinvent local sports media – an industry that has been on the decline ever since newspapers realized that advertising revenue wouldn’t be enough to support a team… Read More

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Lifeliqe debuts VR-enabled educational content to keep kids interested in learning

lifeliqeNew1 San Francisco-based startup Lifeliqe (pronounced “life like”) debuted and demoed its new virtual reality, educational content experience from the floor of the Augmented World Expo 2016 this week. According to co-founder and CEO Ondrej Homola, Lifeliqe spent the last three years creating a library of high-quality, interactive VR content. The patience may have paid off, as the… Read More

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Yahoo Shuts Down Yahoo Screen, Its Home For Original Content Like “Community”

WEST HOLLYWOOD, CA - APRIL 14:  A general view of atmosphere at Yahoo Screen Launch Party For Paul Feig's "Other Space" at The London West Hollywood on April 14, 2015 in West Hollywood, California.  (Photo by Jerod Harris/Getty Images for Yahoo) According to a report by Variety, and confirmation by Yahoo, Yahoo Screen has closed its doors with its content being split among its various magazine properties. Screen launched in 2013 as a place to house Yahoo’s original content, which the company has since backed away from (remember the $42 million write-down?). From bringing back the show “Community” to airing an… Read More

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