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Zebra raises $1.1M in a pre-seed round for messaging that pairs photos with voice chat

A new voice-based social app that cites Clubhouse as its biggest inspiration offers a playful new way to stay in touch with close friends and family. Zebra leaves video out of the equation altogether, inviting users to snap on-the-fly photos and send them off paired with casual voice updates.

Zebra focuses on asynchronous sharing, but it also lets users call one another if they’re both already hanging out on the app. The result is a fun and casual way to stay in touch for anyone who doesn’t feel like accidentally getting sucked into Instagram’s endless, ad-strewn feed every time they want to give a friend a quick update.

For now Zebra is a two-person team consisting of CEO Dennis Gecaj, a product designer based in Berlin, and Amer Shahnawaz, Zebra’s head of engineering, who previously worked on Snap Maps at Snapchat. The pre-seed funding was led by Alexis Ohanian’s fresh early-stage venture firm Seven Seven Six, which the Reddit co-founder announced in June. The app will launch formally in August but is now open for preorders through the App Store and as a beta in TestFlight.

“It’s no secret that we are in the midst of an audio revolution, one that has ushered in a series of new audio-first social platforms and content vehicles,” Ohanian said, noting that Zebra’s unique blend of photos and voice is what caught his eye.

Gecaj sees voice-based social networking as a much richer alternative to text-dominant platforms. While products like Instagram allow voice messages and technically let users make voice calls by disabling the camera, voice usually plays second fiddle to video. But video calls are more taxing and require more commitment — it’s no coincidence more and more Zoom cameras blinked offline as the pandemic dragged on.

Unlike Clubhouse, which Gecaj calls a “huge inspiration, Zebra is social audio designed for your inner circle. “With everything opening back up we saw an incredible opportunity for an asynchronous format for that,” he told TechCrunch.

Gecaj hopes that Zebra’s “talking photos” can capture the collective imagination in a way that makes early growth natural. Anyone who downloads Zebra can invite friends individually without needing to share their full contact list (and they’ll need to — you can’t do anything on the app without friends). Because Zebra’s interface is so clean and streamlined, this process is painless and doesn’t necessitate any extra digging through menus.

The idea of a “zebra” — naturally, Zebra is trying to make “zebra” happen — is that people like to see what they are talking about. On a different messaging app, this would require sending a photo and then sending a voice message in quick succession. But on Zebra, sending a photo is the main thing you can do. The app opens right to the camera where you snap a picture. You then hold the photo to record a snippet of voice to go along with it and send it off to friends and family, who appear in a row beneath the camera.

Zebra isn’t worried about the prospect of talking people into downloading another app. Gecaj sees a natural split emerging as creators and audiences increasingly become the focus of social platforms that were initially designed to help friends stay in touch.

“I think the trend is a division between creator platforms where you go to be entertained and platforms you go to hang out with your friends,” Gecaj told TechCrunch.

On top of that, he hopes that Zebra’s dual focus on voice and photos, two aspects of social networking that platforms either don’t prioritize or are actively abandoning, can make it appealing for people who aren’t as interested in video.

“We really also think that text messaging doesn’t have the same emotion as voice… and voice has been really neglected,” Gecaj said. “There’s really a richness to voice, a power to voice that nothing else has.”

 

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Google shares its $2M Black Founders Fund among 30 European startups

Google has selected 30 startups to receive a share of its $2 million Black Founders Fund in Europe, providing these companies with a spot of cash, some valuable cloud services and a bit of good old-fashioned networking among the Google crew.

The fund was announced last fall as part of a company-wide effort toward “building a more equitable future for everyone,” alongside grants and new sponsorships. More than 800 companies applied and Google interviewed 100 of them, ultimately winnowing that down to the 30 announced today.

Each company will receive “up to” $100,000 in non-dilutive funding, and up to $120,000 in Ads grants and $100,000 in Cloud credits. (I’ve asked Google for more details on how the fund was divided, and if any company received this full amount. I’ll update if I hear back.)

They’ll also get access to Google’s entrepreneurial network, tech support and some other assets that don’t have hard numbers associated with them.

All the startups are led by Black founders, and 40% by women of color. One of the latter is Nancy de Fays, co-founder of LINE, which makes these cool battery-hub combos for the MacBook “Pro” that add a ton of ports and battery life and look sweet to boot. I’ve learned a lot chatting with her at trade shows, and regret that I do most of my work at a desktop so I don’t have an excuse to use one of the company’s gadgets.

In response to being selected for Google funding, de Fays penned a blog post exhorting corporations to throw their weight around in favor of social change, and for startups to lead the way in diversity and equity:

We buy values and standards more than we buy the product itself. We buy ideals of life more than the actual features. Putting the these two parameters in the equation – the capability of big corps to shout loud, and consumers’ receptiveness to brands values and messages – it does make sense to me that to drive such a society change, big companies should voice and convey strong messages.

Founders need to build diverse teams without falling into compassion fatigue. They must show empathy and respect and bring onboard the best talents. Period. They need to be outspoken about their values, convey a strong, global mindset and build their organisation around them. And if they find themselves scoring low on diversity along the way, they should question themselves on the why and act on it without doing charity.

It’s something of a counterpoint to the idea, also commonly expressed these days, that companies should be mission-focused and objective.

Here are the other 29 companies that Google will be giving a boost to (descriptions taken from the blog post):

  • Afrocenchix – Afrocenchix formulate, manufacture, and sell safe, effective products for afro and curly hair.
  • AudioMob – AudioMob provides non-intrusive audio ads within mobile games.
  • Augmize – Augmize builds risk models for property and casualty insurers using interpretable machine learning.
  • Axela Innovation – Axela Innovations created a smart platform that joins up care services and puts the person receiving care at the center of the process.
  • Bosque – Bosque is the first tech-enabled, direct-to-consumer plant brand in Europe with digitized inventory, AR tech, and on-demand access to vetted plant experts.
  • Circuit Mind Limited – Circuit Mind is building intelligent software that fully automates the design of electronic circuit systems.
  • Clustdoc – Clustdoc is client onboarding automation software used by organizations and teams around the world.
  • Contingent – Contingent is an AI platform that proactively predicts, monitors, and manages supplier risk.
  • Define – Define is a legal technology company that optimizes the contract drafting and reviewing process for lawyers, serving the world’s largest banks and consulting companies.
  • Freyda – Freyda is digitizing the asset management industry by helping funds and service providers to become hyper-efficient in how they approach their data capture from documents.
  • Heex Technologies – Heex Technologies provides AI-powered software and web services to development teams in data-intensive fields such as autonomous driving.
  • HomeHero – HomeHero is an operating system for the house, making running a home simple and easy.
  • Hutch Logistics – Hutch Logistics is a fulfilment and operating system for e-commerce brands.
  • iknowa – iknowa is an end-to-end building and renovation platform for property owners and tradespeople.
  • Kami – Kami empowers parents during family planning, pregnancy and childhood, allowing them to adapt and thrive through even the most difficult transitions.
  • Kwara – Kwara makes building wealth together frictionless, by turning analog credit unions in emerging markets into modern digital banks.
  • Lalaland – Lalaland uses AI to create synthetic humans for fashion eCommerce brands to increase diversity in retail.
  • Modularity Grid – Modularity Grid is an AI platform that makes energy systems more efficient and resilient.
  • Movemeback – Movemeback (often referred to as “the Linkedin of Africa”) is a global social professional platform, connecting people to opportunities, insights, and people they don’t have access to.
  • Playbrush – Playbrush is the innovation leader in oral care, growing smart toothbrush subscriptions to foster better mouth and body health.
  • Remote Coach – Remote Coach is a platform providing technology for personal trainers and fitness influencers to digitize and grow their businesses.
  • Robin AI – Robin AI uses a combination of human and artificial intelligence to read and edit contracts.
  • Scoodle – Scoodle is a platform for education influencers. Everyone has something they want to learn and something they can teach—we bring both sides together.
  • Suvera – Suvera delivers a virtual care clinic for patients with long-term conditions in the UK.
  • Syrona Health – Syrona is a digital health Company providing tracking, treatment, and management solutions for people with chronic gynecological conditions.
  • Tradein – Tradein is a real-time scoring and prediction of business payment behavior and solvency.
  • Vanilla Steel – Vanilla Steel offers a digital auctions platform for excess steel that provides sellers a simple inventory management process for excess material.
  • Wild Radish – Wild Radish enables people who love food and cooking to engage in Michelin-quality, unique, cooking and dining experiences at home.
  • Xtramile – Xtramile is a data-driven platform that delivers the right job to the right candidate anywhere online.

Feels like we’ll be hearing from most of these folks again. You can find out more about Google’s startup programs here.

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Yahoo Japan and Line are reportedly going to merge

According to Nikkei, messaging app Line and Yahoo Japan are about to merge and form a single tech company. Despite the name, Yahoo Japan is currently 100% owned by Z Holdings, a company that is controlled by Japanese telecom company SoftBank (Yahoo Japan isn’t related with TechCrunch’s parent company Verizon Media). Line Corporation is owned by Naver Corporation, a South Korean internet giant.

The two companies are still discussing terms of the deal according to Nikkei. But you could imagine Z Holdings becoming a 50-50 joint venture between SoftBank and Naver, with Z Holdings owning both Yahoo Japan and Line.

Line operates one of the most popular messaging apps in Japan. In addition to conversations, the company operates Line Pay, Line Taxi and other services. But competition has been fierce in the messaging space.

Yahoo Japan was originally formed by Yahoo and SoftBank in the late 1990s. When Verizon acquired Yahoo in 2017, Verizon didn’t acquire Yahoo’s stake in Alibaba and Yahoo Japan. Yahoo created a spin-out company called Altaba to hold those stakes.

Altaba first sold its stake in Yahoo Japan. In July 2018, SoftBank acquired part of Altaba’s stake in Yahoo Japan in order to increase its ownership of Yahoo Japan. Altaba later sold its remaining Yahoo Japan shares, its Alibaba shares and shut down. In 2019, SoftBank received additional shares to become Yahoo Japan’s parent company.

Yahoo Japan is a household name and a big internet conglomerate in Japan. It has an online advertising business, an e-commerce business, finance services and more. Yahoo Japan and Line probably hope to reach more users and boost engagement with the merger.

We’ve reached out to Line Corporation and Z Holdings and will update if we hear back.

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Chat app Line injects $182M into its mobile payment business

Japanese messaging app company Line is pumping 20 billion JPY ($182 million) into its mobile payment business as it tries to turn things around following a challenging year in 2018.

The company announced the infusion into Line Pay, a subsidiary that it fully owns, in a filing that stated the new capital is “necessary funds for its future business operation.” No further details were provided.

The investment comes on the heels of Line’s latest financial report which saw it post a 5.79 billion JPY loss as revenue grew by 24 percent to reach 207.18 billion JPY in 2018. Line has long been a top money maker in the App Store, but its efforts to build out content around its messaging platform and games division have turned out to be expensive, with a job service, manga platform and e-commerce business among its ventures.

In addition to more content, payments are also seen as “glue” that can increase engagement within the Line ecosystem and its main messaging app.

The company is going after the cashless opportunity in Japan, where it is the dominant chat app with an estimated 50 million registered users. The country is notable for its continued use of cash, but the government is using the upcoming 2020 Olympic Games as an opportunity to move toward a digital future. Aside from its core Line Pay service, which sits inside the Line chat app, Line is introducing its own credit card with Visa and has gone after Chinese tourists through a tie-in with Tencent, the internet giant behind China’s top messaging app WeChat.

Outside of Japan, Line Pay is also available in Thailand (where it works with the Bangkok metro provider), Taiwan (where it counts two banks as partners) and Indonesia, which Line says are its next three largest markets in terms of user numbers. Together, across those four countries, Line claims it has 165 million monthly active users and 40 million registered Line Pay users. Line said GMV reached 55 billion JPY ($482 million) per month back in November 2017; there’s been no update since.

The service was launched more widely but it has shuttered in other markets, including Singapore where it was ended in February 2018.

Beyond payment, Line is also moving into banking and financial services. It is working to launch a digital bank in Japan and last year it announced plans to investigate the potential to roll out loans, insurance and other services backed by its own cryptocurrency. While it didn’t hold an ICO — its “Link” token is earned or can be bought on exchanges — Line did dive into crypto in a major way, opening its own exchange and starting a crypto investment fund, too. With the bear market in full effect, and token valuations dropping by 90 percent across the board, we haven’t heard too much more from Line regarding its crypto plans.

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Nintendo is making Dr. Mario for iOS and Android

Nintendo held off on building smartphone games for years, but now they just can’t stop. They started with a little stumble with the short-lived Miitomo, but then found an audience with Super Mario Run. Then came Fire Emblem Heroes. Then Animal Crossing: Pocket Camp, and Dragalia Lost.

Next up? Dr. Mario.

Nintendo announced this afternoon that it’s working on a title called Dr. Mario World, built in collaboration with Line (as in the company that makes the Line chat app; they also make Disney’s mobile Tsum Tsum games) and NHN.

The doctor is in! Mario puts on the white coat once again in the mobile game Dr. Mario World, targeting an early summer 2019 global release. #DrMario https://t.co/DTRBympHj0 pic.twitter.com/RfMZbbs3Mp

— Nintendo of America (@NintendoAmerica) January 31, 2019

For anyone out there who might be too young to remember Super Mario’s stint as an M.D., Dr. Mario was a falling-tile style game that had the player quickly trying to arrange… pills. To kill viruses.

This was the box art. Nintendo was just like, “Mario is a doctor now,” and everyone was like, “Oh, okay, cool.” It was the ’90s, okay?

Nintendo doesn’t say much about what the game will be like, besides referring to it as an “action puzzle game.” They say it should ship by “early summer” of 2019, and will be free to download (with in-app purchases) on iOS and Android.

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Chat app Line’s games business raises $110M for growth opportunities

Messaging app firm Line has given up majority control of its Line Games business after it raised outside financing to expand its collection of titles and go after global opportunities.

The Line Games business was formed earlier this year when Line merged its existing gaming division from NextFloor, the Korea-based game publisher that it acquired in 2017. Now the business has taken on capital from Anchor Equity Partners, which has provided 125 billion KRW ($110 million) in financing via its Lungo Entertainment entity, according to a disclosure from Line.

A Line spokesperson clarified that the deal will see Anchor acquire 144,743 newly created shares to take a 27.55 percent stake in Line Games. That increase means Line Corp’s own shareholding is diluted from 57.6 percent to a minority 41.73 percent stake.

Korea-based Anchor is best known for a number of deals in its homeland, including investments in e-commerce giant Ticket Monster, Korean chat giant Kakao’s Podotree content business and fashion retail group E-Land.

Line operates its eponymous chat app, which is the most popular messaging platform in Japan, Thailand and Taiwan, and also significantly used in Indonesia, but gaming is a major source of income. This year to date, Line has made 28.5 billion JPY ($250 million) from its content division, which is primarily virtual goods and in-app purchases from its social games. That division accounts for 19 percent of Line’s total revenue, and it is a figure that is only better by its advertising unit, which has grossed 79.3 billion JPY, or $700 million, in 2018 to date.

The games business is currently focused on Japan, Korea, Thailand and Taiwan, but it said that the new capital will go toward finding new IP for future titles and identifying games with global potential. It is also open to more strategic deals to broaden its focus.

While Line has always been big on games, Line Games isn’t just building for its own service. The company said earlier this year that it plans to focus on non-mobile platforms, which will include the Nintendo Switch among others consoles.

That comes from the addition of NextFloor, which is best known for titles like Dragon Flight and Destiny Child. Dragon Flight has racked up 14 million users since its 2012 launch; at its peak it saw $1 million in daily revenue. Destiny Child, a newer release in 2016, topped the charts in Korea and has been popular in Japan, North America and beyond.

Line went public in 2016 via a dual U.S.-Japan IPO that raised more than $1 billion.

Note: The original version of this article was updated to clarify that Lungo Entertainment is buying newly issued shares.

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Chat app Line gets serious about gaming with its latest acquisition

Line, the company best-known for its popular Asian messaging app, is doubling down on games after it acquired a controlling stake in Korean studio NextFloor for an undisclosed amount.

NextFloor, which has produced titles like Dragon Flight and Destiny Child, will be merged with Line’s games division to form the Line Games subsidiary. Dragon Flight has racked up 14 million users since its 2012 launch — it clocked $1 million in daily revenue at peak. Destiny Child, a newer release in 2016, topped the charts in Korea and has been popular in Japan, North America and beyond.

Line’s own games are focused on its messaging app, which gives them access to social features such as friend graphs, and they have helped the company become a revenue generation machine. Alongside income from its booming sticker business, in-app purchases within games made Line Japan’s highest-earning non-game app publisher last year, according to App Annie, and the fourth highest worldwide. For some insight into how prolific it has been over the years, Line is ranked as the sixth highest earning iPhone app of all time.

But, despite revenue success, Line has struggled to become a global messaging giant. The big guns WhatsApp and Facebook Messenger have in excess of one billion monthly users each, while Line has been stuck around the 200 million mark for some time. Most of its numbers are from just four countries: Japan, Taiwan, Thailand and Indonesia. While it has been able to tap those markets with additional services like ride-hailing and payments, it is certainly under pressure from those more internationally successful competitors.

With that in mind, doubling down on games makes sense and Line said it plans to focus on non-mobile platforms, which will include the Nintendo Switch among others consoles, from the second half of this year.

Line went public in 2016 via a dual U.S.-Japan IPO that raised over $1 billion.

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SoftBank buys into Line’s mobile service in Japan

 SoftBank is partnering up with messaging app Line to help develop its Line Mobile telecom service. Line announced that it has agreed to allow SoftBank to take a 51 percent in the business via an issuance of new shares. The deal is expected to close by March. From the documents, its mobile business is valued at around $15 million (1.7 billion JPY) but a company spokesperson told TechCrunch… Read More

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Pinguin is a public chat room for nerd(ier people)

 Pinguin is a new app that lets you chat with people based on your interests. Really into startups? They got a room for you. Like you some programming? Right this way, sir. Like food? They got a room for you. The team, Josh Purvis, Devon Woodruff, Vijay Kumar, and Bryan O’Reilly built the app from he ground up with the needs of the online set in mind. There are a few of these apps… Read More

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Viber now lets users set photos and videos to disappear after they’re viewed

Viber has a new "secret messages" feature for ephemeral photo and video sharing. Messaging apps can amass a lot of user data over time including everything from personal photos and videos users have shared to records of who they talk to most, where they’ve been, and what online financial services they use. Over the last few years, more and more of these messaging apps began to offer end-to-end encryption to win over users who want privacy at least as much as they… Read More

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