mobile messaging
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At first glance, Quiq and Snaps might sound like similar startups — they both help businesses talk to their customers via text messaging and other messaging apps. But Snaps CEO Christian Brucculeri said “there’s almost no overlap in what we do” and that the companies are “almost complete complements.”
That’s why Quiq (based in Bozeman, Montana) is acquiring Snaps (based in New York). The entire Snaps team is joining Quiq, with Brucculeri becoming senior vice president of sales and customer success for the combined organization.
Quiq CEO Mike Myer echoed Bruccleri’s point, comparing the situation to dumping two pieces of a jigsaw puzzle on the floor and discovering “the two pieces fit perfectly.”
More specifically, he told me that Quiq has generally focused on customer service messaging, with a “do it yourself, toolset approach.” After all, the company was founded by two technical co-founders, and Myer joked, “We can’t understand why [a customer] can’t just call an API.” Snaps, meanwhile, has focused more on marketing conversations, and on a managed service approach where it handles all of the technical work for its customers.
In addition, Myer said that while Quiq has “really focused on the platform aspect from the beginning” — building integrations with more than a dozen messaging channels including Apple Business Chat, Google’s Business Messages, Instagram, Facebook Messenger and WhatsApp — it doesn’t have “a deep natural language or conversational AI capability” the way Snaps does.
Myer said that demand for Quiq’s offering has been growing dramatically, with revenue up 300% year-over-year in the last six months of 2020. At the same time, he suggested that the divisions between marketing and customer service are beginning to dissolve, with service teams increasingly given sales goals, and “at younger, more commerce-focused organizations, they don’t have this differentiation between marketing and customer service” at all.
Apparently the two companies were already working together to create a combined offering for direct messaging on Instagram, which prompted broader discussions about how to bring the two products together. Moving forward, they will offer a combined platform for a variety of customers under the Quiq brand. (Quiq’s customers include Overstock.com, West Elm, Men’s Wearhouse and Brinks Home Security, while Snaps’ include Bryant, Live Nation, General Assembly, Clairol and Nioxin.) Brucculeri said this will give businesses one product to manage their conversations across “the full customer journey.”
“The key term you’re hearing is conversation,” Myer added. “It’s not about a ticket or a case or a question […] it’s an ongoing conversation.”
Snaps had raised $13 million in total funding from investors including Signal Peak Ventures. The financial terms of the acquisition were not disclosed.
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IAC has acquired Confide, the encrypted mobile messaging that once made headlines for its use by White House staffers during the Trump administration. The deal, which closed on Dec. 1, 2020 but was not publicly announced, sees Confide joining Teltech, the makers of spam call-busting app Robokiller, which itself had joined IAC’s Mosaic Group by way of a 2018 acquisition.
Teltech confirmed the Confide acquisition, but declined to share the deal terms. The confidential mobile messaging app had raised just $3.5 million in funding, according to Crunchbase data, and had been valued between $10 to $50 million, as a result. (Pitchbook put the valuation at ~$14 million around the same time.)
According to Teltech, the deal was for the Confide IP and technology, but not the team.
The company believes Confide makes for a good fit among its growing group of mobile communication apps, including Robokiller and its latest app, SwitchUp, which offers users a second phone number for additional privacy and spam blocking purposes. Other Teletech apps include phone call recorder TapeACall and blocked call unmasker TrapCall.
Confide, however, may end up being one of the better-known additions among that group, thanks to being remembered as a favored tool of choice among frustrated Washington Republicans during the Trump years.
But despite the user growth that news had driven, things slowed in the months that followed, when researchers published a report that claimed Confide wasn’t as secure as it had promised. Confide quickly fixed its vulnerabilities but then a month later was facing a class action lawsuit (later dismissed by the plaintiff) over the security issues.
Teltech says it was aware of the security concerns, but it had conversations with the prior Confide team and understands that the earlier issues had been “quickly and effectively remediated.”
While IAC won’t speak to its specific plans for Confide’s future, the app will continue to offer users a safe and secure way to communicate. What it won’t do, though, is try to directly compete with Telegram or other private apps that offer large channels or group chats that support tens of thousands of people at once.
“I think one kind of key differentiators is that Confide is definitely more for one-on-one and smaller group communication, rather than with Signal and Telegram where there’s some larger chat dynamics,” notes Giulia Porter, Teltech’s VP of Marketing. “One thing that makes us a little bit different is just that we’re more personal,” she says.
Despite having hit some bumps in the road over the years, Confide as of the time of the acquisition, still had around 100,000 monthly active users. There’s now a team of around 10 assigned to work on the app, adding needed resources to its further development, and soon, an updated logo and branding.
Confide’s existing desktop and mobile apps will also continue to be available, but later updated with new features as part of Teltech’s efforts.
Investors and IAC alike have declined to talk about deal price, but that may speak for itself.
“With the absolute explosion in privacy over the past several years, Confide, which started as a side project, has become a mission-critical platform for sensitive communication throughout the world,” said Confide co-founder and President Jon Brod, in a statement shared with TechCrunch about Confide’s exit.
“We’re thrilled that IAC shares our passion for secure communication and recognizes the unique business we have built. IAC has a proven track record of providing fast-growing companies with the support to reach their full potential and we are excited to see IAC take Confide to the next level,” he said.
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In case there was any doubt that messaging apps were the future of communication in the mobile-first era, a new study released this morning puts some solid numbers behind their traction – and their increasing dominance over email, among today’s youngest users. According to a report from App Annie, email is effectively dying among this crowd. Those aged 13 to 24 now spend more than… Read More
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Today, there are a variety of apps to choose from if you just want to privately chat with friends or even place phone calls without having to give out your real phone number – for example, Google Voice, Burner, kik, Viber, Whatsapp and others are popular choices. But these apps aren’t fully private. Users still have to provide a phone number or email when creating an account, or,… Read More
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If you’re a consumer-brand marketer, you’ve no doubt given thought to running a marketing campaign or having a presence on a mobile messaging app. After all, every consumer is increasingly using mobile messaging as their portal to mobile. It’s sticky and lends itself to repeat sessions, boasting the highest retention and engagement rates of other apps on average. So if… Read More
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Microsoft today is introducing a new application aimed at reducing the time it takes to check and respond to email while on your smartphone. With Send, as the app is called, the idea is to make email perform more like instant messaging, as it does away with more formal email constructs – like the subject line, for example – in favor of quicker, shorter messages that you can dash off… Read More
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Mustbin, the mobile application that began as a secure organizer for personal documents and other information captured by your smartphone’s camera, is today making a larger move to compete in the private mobile messaging space with the launch of Mustbin 2.0. The new app is now offering a solid handful of features that differentiate it from many competitors, including the ability to… Read More
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A new mobile application called Snowball, launching today, is going to give iPhone users Android envy. The app serves as a universal inbox for your many mobile messaging clients, including Facebook Messenger, WhatsApp, SMS, Snapchat, Google Hangouts and more, and appears right on your Android homescreen in a format that resembles the small, circular “Chat Heads” icons introduced… Read More
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With an increasingly mobile workforce, businesses need new tools to enable their employees to communicate with each other. Mobile messaging startup Avaamo, which was built by former TIBCO execs and has raised $6.3 million, wants to provide an app for enterprise communications that is both simple to use and secure. Read More
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Do you need another messaging app? One that does GIFs? Sure, why not?! You have room on page 10 of your “chat apps” folder of your iPhone, right? Great! Introducing the latest contender vying for the messaging app throne: Dasher, a new social app backed by $1.25 million in seed funding from Lerer Ventures, Venrock and other angel investors. Read More
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