Jason Calacanis

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Beyond ‘Netflix Party’: startups and their VCs bet we’ll browse more of the web together

Last year, during the pandemic, a free browser extension called Netflix Party gained traction because it enabled people trapped in their homes to connect with far-flung friends and family by watching the same Netflix TV shows and movies simultaneously. It also enabled them to dish about the action in a side bar chat.

Yet that company — later renamed Teleparty — was just the beginning, argue two young companies that have raised seed funding. One, a year-old upstart in London that launched in December, just closed its round this week led by Craft Ventures. The other, a four-year-old, Bay Area-based startup, has raised $3 million in previously undisclosed seed funding, including from 500 Startups.

Both believe that while investors have thrown money at virtual events and edtech companies, there is an even bigger opportunity in developing a kind of multiplayer browsing experience that enables people to do much more together online. From watching sports to watching movies to perhaps even reviewing X-rays with one’s doctor some day, both say more web surfing together is inevitable, particularly for younger users.

The companies are taking somewhat different approaches. The startup on which Craft just made a bet, leading its $2.2 million seed round, is Giggl, a year-old, London-based startup that invites users of its web app to tap into virtual sessions. It calls these “portals” to which they can invite friends to browse content together, as well as text chat and call in. The portals can be private rooms or switched to “public” so that anyone can join.

Giggl was founded by four teenagers who grew up together, including its 19-year-old chief product officer, Tony Zog. It only recently graduated from the LAUNCH accelerator program. Still, it already has enough users — roughly 20,000 of whom use the service on an active monthly basis — that it’s beginning to build its own custom server infrastructure to minimize downtime and reduce its costs.

The bigger idea is to build a platform for all kinds of scenarios and to charge for these accordingly. For example, while people can chat for free while web surfing or watching events together like Apple Worldwide Developers Conference, Giggl plans to charge for more premium features, as well as to sell subscriptions to enterprises that are looking for more ways to collaborate. (You can check out a demo of Giggl’s current service below.)

Hearo.live is the other “multiplayer” startup — the one backed by 500 Startups, along with numerous angel investors. The company is the brainchild of Ned Lerner, who previously spent 13 years as a director of engineering with Sony Worldwide Studios and a short time before that as the CTO of an Electronic Arts division.

Hearo has a more narrow strategy in that users can’t browse absolutely anything together as with Giggl. Instead, Hearo enables users to access upwards of 35 broadcast services in the U.S. (from NBC Sports to YouTube to Disney+), and it relies on data synchronization to ensure that every user sees the same original video quality.

Hearo has also focused a lot of its efforts on sound, aiming to ensure that when multiple streams of audio are being created at the same time — say users are watching the basketball playoffs together and also commenting — not everyone involved is confronted with a noisy feedback loop.

Indeed, Lerner says, through echo cancellation and other “special audio tricks” that Hearo’s small team has developed, users can enjoy the experience without “noise and other stuff messing up the experience.” (“Pretty much we can do everything Clubhouse can do,” says Lerner. “We’re just doing it as you’re watching something else because I honestly didn’t think people just sitting around talking would be a big thing.”)

Like Giggl, Hearo Lerner envisions a subscription model; it also anticipates an eventual ad revenue split with sports broadcasters and says it’s already working with the European Broadcasting Union on that front. Like Giggl, Hearo’s users numbers are conservative by most standards, with 300,000 downloads to date of its app for iOS, Android, Windows, and macOS, and 60,000 actively monthly users.

It begs the question of whether “watching together online” is a huge opportunity, and the answer doesn’t yet seem clear, even if Hearo and Giggl have more compelling tech and viable paths to generating revenue.

The startups aren’t the first to focus on watch-together type experiences. Scener, an app founded by serial entrepreneur Richard Wolpert, says it has 2 million active registered users and “the best, most active relationship with all the studios.” But it markets itself a virtual movie theater, which is a slightly different use case.

Rabbit, a company founded in 2013, enabled people to more widely browse and watch the same content simultaneously, as well as to text and video chat. It’s closer to what Giggl is building. But Rabbit eventually ran aground.

Lerner says that’s because the company was screen-sharing other people’s copyrighted material and so couldn’t charge for its service. (“Essentially,” he notes, “you can get away with some amount of piracy if it’s not for your personal financial benefit.”) But it’s probably fair to wonder if there will ever be massive demand for services like his, particularly as the coronavirus fades into the distance and people reengage more actively in the physical world.

For his part, Lerner isn’t worried. He points to a generation that is far more comfortable watching video on a phone than elsewhere. He also notes that screen time has become “an isolating thing,” and predicts it will eventually become “an ideal time to hang out with your buddies,” akin to watching a game on the couch together.

There is a precedent, in his mind. “Over the last 20 years, games went from single player to multiplayer to voice chats showing up in games so people can actually hang out,” he says. “Because mobile is everywhere and social is fun, we think the same is going to happen to the rest of the media business.”

Zog thinks the trends play in Giggl’s favor, too. “It’s obvious that people are going to meet up more often” as the pandemic winds down, he says. But all that real-world socializing “isn’t really going to be a substitute” for the kind of online socializing that’s already happening in so many corners of the internet.

Besides, he adds Giggl wants to “make it so that being together online is just as good as being together in real life. That’s the end goal here.”

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Fluent Forever raises $4.9M for its language learning system

Fluent Forever, a startup that uses a novel learning system to help its users master a new language faster, has raised a $4.9 million funding round led by Denver-based Stout Street Capital. Other investors in this round include The Syndicate, LAUNCH, Mana Ventures, Noveus VC, Flight.VC, Insta VC, UpVentures, Firebrand Ventures, Cultivation Capital, Spero Ventures and Lofty Ventures.

In many ways, Fluent Forever is a direct competitor to Duolingo, Babbel and similar online language learning services. What sets it apart is a focus on a personalized learning system that emphasizes ear training, visual aids and something akin to spaced-repetition for helping you memorize new words and phrases. It’s a paid service (after a 14-day free trial) with subscriptions starting at $10 per month for a monthly subscription and the usual discounts for longer-term commitments.

To teach himself his first languages, the company’s founder and CEO Gabriel Wyner used the popular flashcard service Anki, wrote a book about his approach, and taught workshops on language learning using his system with Anki. But as he noted, Anki is a serious tool, and simply learning how to get the most out of it takes a lot of time and energy.

Image Credits: Fluent Forever

“I’ve watched everyone else fail at language learning,” he told me. “And the first thought is, okay, well, if you just learn how to do it right, then that’s a fixable thing. That’s exciting. And then once you have a solution for people and they’re all excited about it — but then you watch them fail because of IT reasons. That’s extra frustrating.”

In many ways then, Fluent Forever uses Wyner’s flashcard approach — because building those flashcards by hand is at the core of his learning system — and turns it into a far-easier-to-use application.

What people want, Wyner acknowledged, is a tool where you just press some buttons and learn something. But that doesn’t work. “I had to have a really strong reaction to this — a really strong answer — and say, ‘absolutely not. That is the one thing that teaches you is building it.’ ”

Wyner is not afraid to compare his approach to Duolingo’s and argues that its focus on translation exercises doesn’t translate to real language skills in the long run. At the same time, he freely acknowledges that the Duolingo user experience and gamification are far better than Fluent Forever. But he also believes that learners see far better results with his system.

Image Credits: Fluent Forever

“We ask [our users]: ‘Why are you with us? Why would you pay for us when you could just get Duolingo for free?” What they come back with is, ‘yeah, your product is rough around the edges. I wish you would fix this, this and that, but you had me thinking in Spanish in two weeks,” Wyner said.

Fluent Forever currently supports nine languages: Japanese, French, Russian, Mexican and Spanish Spanish, Italian, Korean, German and Brazilian Portuguese, with Dutch being the next language the team is tackling.

As Wyner told me, the company had trouble raising in 2019, in part because the service was seeing pretty flat growth at the time. “People are very skeptical about language learning — that is not a sexy field. People don’t like it. The idea of jumping and trying to be competitive with Duolingo was just not appealing to anyone,” he told me. Come 2020, though, growth picked up, even before the COVID pandemic. At the same time, Fluent Forever also participated in Jason Calacanis’ Launch Accelerator.

Looking ahead, Wyner tells me that Fluent Forever is looking at ways to bring live tutors into the loop. Live tutoring online has been done before, of course, and there are some companies like Preply that specialize in it already, but what Fluent Forever wants to do is combine the online language learning service with short live sessions and then use the online component to go back to that conversation over the course of a week or so. One advantage here is that these users — who will likely pay a premium for the live service — will also use their time with live tutors to create their own personalized sentences in the Fluent Forever system, which could then over time become content that’s available to all users, too.

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The startup world needs a ‘Black Minds Matter’ awakening

Kofi Ampadu
Contributor

Kofi Ampadu is the founder and general partner of SKU’D Ventures, a pre-seed fund focused on consumer product startups.

I was recently part of an open forum about being Black in America, as well as in the startup space.

A white founder asked, “What can I do as the founder of a very early-stage startup?” The group gave various suggestions that included the obvious (or at least I would hope it’s obvious), “When you are growing your team, consider hiring Black team members,” or “When you are considering an investment from an investor, press them about the diversity of their current portfolio founders.”

But one suggestion really stood out, which was to make a concerted effort to find someone different from your current team’s makeup when bringing in subject matter experts. This intentional act shows your homogeneous team members that Black people, other racial minorities or genders can be experts too. It can also be applied when growing your team by making sure you interview diverse candidates whose level of expertise is often second-guessed.

This got me thinking about VC Monique Woodard’s statement that “Black founders are often overmentored and underinvested.” In June, at the height of the Black Lives Matter protests and open dialogue about anti-Blackness, we saw a slew of investors rushing to offer mentorship to Black founders. Some of the investors don’t have Black founders among their portfolio companies so to some onlookers, this rush to help Black founders was seen as insincere and a marketing ploy.

As a former founder, I can confidently say that most Black founders simply want a fair shot at presenting their startups to investors. The prevailing system of needing a warm introduction to access investors puts founders, especially Black founders, who don’t have the same networks as investors at a disadvantage. The proper mea culpa by these investors should be to make pitching more accessible for all founders. Although offers of mentorship are certainly welcome, the constant barriers Black founders tell me they struggle with are access to capital and networks, not a lack of talent or business savvy.

The quick emphasis on mentorship made me ask myself: How are the contributions of Black people (founders, investors, operators, etc.) to the startup space seen? Are we showcased as experts or as perpetual students in need of mentoring and advising? To directionally answer this question, I turned to podcasts. According to a New York Times article, “more than half the people in the United States have listened to one (podcast), and nearly one out of three people listen to at least one podcast every month.” This figure shows that podcasts are a wide-reaching medium that audiences use as a source of both entertainment and information.

I dug into the 2018 and 2019 guest lists of three of my favorite startup-related podcasts: “This Week In Startups,” “How I Built This With Guy Raz” and “The Twenty Minute VC.” These are all top-ranked podcasts with tens of millions in downloads and over half a million subscribers.

Podcast Description Typical Guest Profile
This Week In Startups Entrepreneur and angel investor Jason Calacanis brings you his take on the best, worst and most interesting stories from the world of startups. Glimpse into the boardroom during deep-dive interviews with the most innovative founders and investors. Get the experts’ hottest takes on trending topics during our news roundtables.
  • Successful Founder
  • Prominent Investor
  • Promising Founder
  • Startup Expert
How I Built This with Guy Raz Guy Raz dives into the stories behind some of the world’s best-known companies. How I Built This weaves a narrative about innovators, entrepreneurs and idealists — and the movements they built.
  • Successful Founder
The Twenty Minute VC The Twenty Minute VC takes you inside the world of venture capital, startup funding and the pitch. Discover how you can attain funding for your business by listening to what the most prominent investors are directly looking for in startups, providing easily actionable tips and tricks that can be put in place to increase your chances of getting funded.
  • Prominent Investor
  • Successful Founder

I analyzed more than 500 episodes that were aired in 2018 and 2019 across all three podcasts to get a racial and gender breakdown of guests that were featured on those episodes.

Image Credits: Kofi Ampadu (opens in a new window)

Image Credits: Kofi Ampadu (opens in a new window)

Image Credits: Kofi Ampadu (opens in a new window)

Image Credits: Kofi Ampadu

Not surprisingly, a majority of the guests featured were white men (60%). Black men and women were featured on 4% of all the episodes. A total of 15 Black (nine men and six women) unique guests were showcased as guests out of more than 400 unique guests during the two-year span. Also interesting to note that of those 15 Black guests, three were celebrities (a comedian, a TV personality and a rapper), two of whom were featured twice.

There are certainly more than 15 Black noncelebrities available who would fit the ideal guest lists of these podcasts. It is also interesting to note the percentage of Black guests decreased by 2% from 2018 to 2019 and incidentally increased by 2% for white guests during that span. The percentage of Black female guests within the female gender pool drastically decreased by 10% while white female guests increased by 21% in the two-year time period.

Conclusion

The results are a microcosm of what has been happening in the startup ecosystem: Black minds are undervalued and underappreciated. Oftentimes in the startup space, a founder is deemed a successful founder not based on how much money they collect from satisfied customers but by how much money they have raised from investors. Based on these misleading standards, Black founders will rarely be classified as successful because 1% of VC-backed founders are Black.

When it comes to the investor ranks, 81% of venture funds have no Black investors, so very often Black investors have to raise their own funds since the path to joining one is limited. Given these and other obstacles, I would argue Black people are the inspirational and relatable experts whose stories and advice need to be heard by wider audiences.

It is also worth noting that Black people are versed in varying topics and should not be exclusively invited on platforms to speak on Black issues. Black people are not a monolith and each person has their own passion and areas of expertise and outside of lived experiences not all Black people may be well-equipped to dissect Black issues.

In the spirit of not only pointing out systemic racism in the startup space, here is a list of emerging Black founders, investors and startup ecosystem builders, curated by Denisha Kuhlor and me. The talented people listed would make great guests for podcasts, conferences and any platforms that aim to amplify a diverse set of insights and experiences.


Methodology: Analyzed 484 guests across all three podcasts, the hosts of these podcasts were not included in the analysis as guests. As a result, podcast episodes that only included the host were excluded. Reaired podcast episodes were included in the analysis. If an episode had multiple guests, each guest was accounted for separately in the analysis.

The gender of guests was based on pronouns used to refer to guests on the podcast or publicly available information. The race of guests was objectively determined based on how the guest identifies or subjectively determined based on photographs, videos and publicly available information. The “Other Minorities” grouping includes Latinx, Southeast Asian and East Asian guests.

Disclaimer: This write-up is by no means written to cast aspersions on the three podcasts analyzed. They were simply chosen because I am an avid listener and they are all relatively popular in the startup space.

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Interviewed Raises A $2M Seed Round, Expands Beyond Basic Job Simulations

candidate scorecard Interviewed, a company that provides simulations for job candidates, has closed a $2 million seed round with participation from YC, SV Angel, Red Swan Ventures, and Jason Calacanis, among others.
The company also announced that after six months it have given almost 100,000 job assessments, with that number growing from 240 assessments the first month to 43,500 assessments last month. Read More

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