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Robinhood is going public and we’re very excited
It’s a sweltering day here in New York City, and that means Wall Street is on fire, and so is Robinhood, apparently. The popular stock trading app officially filed its Form S-1 with the SEC a few hours ago to go public, where it will trade under the ticker “HOOD.”
The Equity crew has been yammering about Robinhood for years now, and we have been chomping at the bit to see those S-1 results for what feels like ages. Well, we finally got the numbers, we chomped that bit (or at least Alex and Danny did, since Natasha went on vacation about 15 minutes before the IPO hit the wires), and so here’s a special Equity Shot to talk about all the highlights.
We talked about so much in an itsy-bitsy 15-minute episode: crazy revenue growth, crazy revenue concentration from two major sources, regulatory hurdles that the company has been clearing up, better financials with a bit of nuance on the company’s Q1 finances, and the company’s special plan for its IPO.
Wowza.
Here’s what we got up to:
- Historical growth and profitability.
- Revenue mix and revenue concentration, along with constituent concerns.
- The importance of options-related incomes for the company.
- Dogecoin.
- Why the company’s adjusted income may help it assuage investors who have their eyes pop out of their skulls when they see its GAAP Q1 2021 results.
And a lot more. Of course, if you hate Robinhood, we will be back with our normally scheduled Friday episode of Equity tomorrow.
Equity drops every Monday at 7:00 a.m. PDT, Wednesday, and Friday morning at 7:00 a.m. PDT, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts.
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Facebook officially launches Live Audio Rooms and podcasts in the US
In April, Facebook announced a series of planned investments in new audio products, including a Clubhouse live audio competitor as well as new support for podcasts. Today, Facebook is officially rolling out these products with the launch of Live Audio Rooms in the U.S. on iOS, starting with public figures and select Facebook Groups, and the debut of an initial set of U.S. podcast partners.
The company tells us Live Audio Rooms will become available to any verified public figure or creator in the U.S. who’s in good standing with Facebook and is using either a profile or the new Facebook Pages experience on iOS. For Facebook Groups, the feature is launching with “dozens of groups,” we’re told.
Both products will become more broadly available in the weeks and months ahead, as more people, podcasts and Groups are brought on board. Meanwhile, 100% of Facebook users in the U.S. will be able to listen to Live Audio Rooms and podcasts as of this week.
Image Credits: Facebook
Much like Clubhouse or similar audio apps, Facebook’s Live Audio Rooms offer a standard set of features.
The event’s hosts appear in rounded profile icons at the top of the screen, while the listeners appear in the bottom half of the screen, as smaller icons. The active speaker is indicated with a glowing ring. If verified, a check appears next to their name, as well.
There are also options for enabling live captions, a “raise hand” tool to request to speak and tools to share the room with others on Facebook through things like News Feed or Group posts.
Image Credits: Facebook
Facebook does things a little differently than others in some places. For instance, hosts are able to invite people to join them as a speaker in advance of the session, or they can choose listeners during the stream to join them. In each session, there can be up to 50 speakers and there’s no limit on the number of listeners, Facebook says.
During the session, users will be notified when friends or followers join the chat, too.
While listening, users can “Like” or react to the content as it streams using the “Thumbs Up” button at the bottom of the screen, which connects you to Facebook’s set of emoji reactions. And with today’s official launch, listeners can also now show support to the public figure of the Live Audio Room by sending “Stars.” These Stars can be purchased during the conversation and used at any time, similar to how they work with other Facebook Live content.
By sending Stars, the listener is bumped up to the “Front Row,” a special section that highlights the people who sent the Stars. This allows the event’s hosts to easily recognize their supporters and even give them a shout out during the event, if they choose.
Image Credits: Facebook
Another new feature allows hosts to select a nonprofit or fundraiser to support during their conversation, and listeners and speakers can directly donate. A progress bar will show how much has been raised during the show.
Image Credits: Facebook
Meanwhile, for Facebook Groups, admins can control whether moderators, group members or other admins can create a Live Audio Room. Both members and visitors can listen to the rooms in public groups, but in private groups, the rooms are limited to Group members.
Facebook users are alerted to all the new Live Audio Rooms via the News Feed and Notifications, and can sign up to be reminded when a room they’re interested in goes Live. Live Audio Rooms will also be discoverable within Facebook Groups, where available.
Image Credits: Facebook
Among the initial set of early adopters for Facebook Live Audio Rooms are Grammy-nominated electronic music artist TOKiMONSTA; American football quarterback Russell Wilson; organizer, producer and independent journalist Rosa Clemente; streamer and digital entertainer Omareloff; and social entrepreneur Amanda Nguyen. Others planned for the near future include D Smoke, Kehlani, Reggie Watts and Lisa Morales Duke, as well as Dr. Jess, Bobby Berk, Tina Knowles-Lawson, Joe Budden (notably Spotify’s first big podcast star who it lost last year) and DeRay Mckesson.
Image Credits: Facebook
Facebook Groups trying the new format include Dance Accepts Everyone, Vegan Soul Food, Meditation Matters, Pow Wow Nation, OctoNation – The Largest Octopus Fan Club! and Space Hipsters.
Image Credits: Facebook
Alongside the launch of Live Audio Rooms, Facebook is also beginning to roll out its planned podcast support with a few select creators. These include Joe Budden of The Joe Budden Podcast; “Jess Hilarious” of Carefully Reckless from The Black Effect Podcast Network and iHeartRadio; Keltie Knight, Becca Tobin and Jac Vanek of The LadyGang; and Nicaila Matthews Okome of Side Hustle Pro. Facebook will open up to other podcasters this summer.
Image Credits: Facebook
To be clear, this new podcasts service is different from the recently launched music and podcasts player in partnership with Spotify, which lets users share content from Spotify to the social network. The new feature instead involves podcasts that are streamed via public RSS feeds directly on Facebook, not delivered by Spotify. However, the miniplayer for podcasts on Facebook will look like the miniplayer for the Spotify listening integration (also known as Project Boombox), and they will behave similarly. But they are not the same.
The new podcast listening experience lets users listen to podcasts as they browse Facebook, either in a miniplayer or full-screen player with playback options, and even if the phone’s display is turned off. This makes Facebook, in a way, a native podcast streaming app because it allows people to listen to audio without needing another service — like Spotify or Apple Podcasts, for example.
Facebook had earlier said there are more than 170 Facebook users who are connected to a Page for a podcast, demonstrating user interest in podcasts on its social network.
Image Credits: Facebook
With the launch of the Facebook Podcast service, the company is asking podcast creators to give it permission to cache their content on Facebook’s servers, which we’re told is being done to ensure the content doesn’t violate Facebook’s Community Standards. However, because the podcasts are still being streamed via RSS feeds, they will be represented in the metrics provided by a podcaster’s hosting provider.
Last week, Facebook emailed podcast page owners details on how to set up their show on Facebook, noting they can link their podcast’s RSS feed to automatically generate News Feed posts for their episodes. These are also featured on a “podcasts” tab on their Page. According to Facebook’s Podcast Terms of Service, creators are granting Facebook the right to create “derivative works,” which likely refers to an upcoming clips feature.
Facebook says later this summer it will add the ability to create and share short clips from a podcast, along with other features, like captions. Longer-term, it will create social experiences around podcasts, as well. It’s also working with creators to develop and launch its new product, Soundbites, which are short-form, creative audio clips. This will launch later in 2021.
Image Credits: Facebook
Other audio products in the works include a central listening destination and background audio listening for videos.
Facebook says this new destination will be a place where all the different audio formats across Facebook are available, not just podcasts, and will help users find new things and people to listen to. More details on this project will become available later this summer.
Prior to today, Facebook quietly tested Live Audio Rooms in Taiwan and internally with Facebook employees Those tests will continue. Last week, Facebook CEO Mark Zuckerberg hosted the first trial of the new service in the U.S., where he was joined by other Facebook execs and a few Facebook Gaming creators.
Zuckerberg has been bullish on the potential for audio across the social networking platform. He even appeared on Clubhouse a couple of times to discuss the topic ahead of announcing what is, essentially, Facebook’s own Clubhouse competitor.
“I think the areas where I’m most excited about it on Facebook are basically in the large number of communities and groups that exist,” Zuckerberg had told Platformer, at the time of the original announcement. “I think that you already have these communities that are organized around interests, and allowing people to come together and have rooms where they can talk is — I think it’d be a very useful thing,” he added.
Facebook expects to expand its audio products globally in the months ahead.
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The huge TAM of fake breaded chicken bits
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.
We’re closing our survey soon, so this is your last chance (probably) to get your voice heard!
Despite it being a short week, as always, it was a busy, busy time. We had Grace on the dials today, and Danny, Natasha and Alex making chit-chat about the tech world. As with every week this year, we had to cut and cut and cut to get the show down to size. Here’s what made it in in the end:
- Medium saw more employees depart the company after CEO Ev Williams published a “culture memo.” While the Medium memo doesn’t wholly ban politics, some allege that the undertone of the statement, timed weeks after a failed unionization attempt, created an unsafe environment. A week later, Natasha covered another controversy, this time at Y Combinator. We riff on the takeaway, and what this story looks like three months from now.
- The issue of company culture is attracting companies. Or more precisely startups, with Blendoor dropping a new report this week that TechCrunch covered, and Vault raising $8.2 million to provide a software solution to aid employees in reporting misconduct.
- On the funding round beat, we explored ChartHop’s new $35 million round that Danny had many thoughts about, fake-chicken nuggets startup Nuggs raising $50 million and Faculty’s latest deal that will help power its vision for the future of male grooming. We also got into Lifted’s elder-care focused round, a startup in the larger health tech beat that Natasha is giving some of her attention to.
- And we wrapped with the ExtraHop exit. We spent a minute trying to figure out why the company was valued at $900 million in its exit. The number, while large, felt light based on what we knew about the company.
Thanks for hopping along with us this week and every week. Quick programming note: Natasha will take Alex’s spot on the Monday show for next week since he’s out, so be nice, and send her stuff to mention.
Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday morning at 7:00 a.m. PST, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts.
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Equity Monday: Jeff’s going to space, and everyone wants a piece of Flipkart
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.
This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.
It’s WWDC week, so expect a deluge of Apple news to overtake your Twitter feed here and there over the next few days. But there’s a lot more going on, so let’s dig in:
- The Weekend: A supercharged, supercharged Model S Tesla car is not coming out. Instead, a merely supercharged version will come out. It’s still stupid fast and expensive. And Nigeria’s war with Twitter continued, with new efforts from the African nation to limit access to the social media service within its borders.
- This Morning: Flipkart is raising $3 billion at a roughly $40 billion valuation. The deal underscores not just how big the Indian tech scene is, but also how much investor interest there is in e-commerce bets more generally. And Jeff Bezos is going to space. Soon!
- Funding Rounds: Trulioo raised a $394 million Series D. The Canadian startup is now worth far more than $1 billion. And Chinese company Kanzhun is going public in the United States, which raised an eyebrow here amongst the Equity Morning Crew.
- Take The Damn Equity Survey: Take it! All the cools kids are taking it!
And that’s your start to the week. More to come from your friends here on Wednesday, and Friday. Chat soon!
Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts!
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3 views on the future of meetings
More than a year into the coronavirus pandemic, early-stage startups across the world are re-inventing how we work. But founders aren’t flocking to build just another SaaS tool or Airtable copycat — they’re trying to disrupt the only thing possibly more annoying than e-mail: the work meeting.
On an episode of this week’s podcast, Equity hosts Alex Wilhelm, Danny Crichton and Natasha Mascarenhas discussed a flurry of funding rounds related to the future of work.
Rewatch, which makes meetings asynchronous, raised $20 million from Andreessen Horowitz, AnyClip got $47 million in a round led by JVP for video search and analytics technology, Interactio, a remote interpretation platform, landed $30 million from Eight Roads Ventures and Silicon Valley-based Storm Ventures, and Spot Meetings got Kleiner Perkins on board in a $5 million seed.
We connected the dots between these funding rounds to sketch out three perspectives on the future of workplace meetings. Part of our reasoning was the uptick of investment as mentioned above, and the other is that our calendars are full of them. We all agree that the traditional meeting is broken, so below you’ll find each of our arguments on where they go next and what we’d like to see.
- Alex Wilhelm: Faster information throughput, please
- Natasha Mascarenhas: Meetings should be ongoing, not in calendar invites
- Danny Crichton: Redesign meetings for flow
Alex Wilhelm: Faster information throughput, please
I’ve worked for companies that were in love with meetings, and for companies where meetings were more infrequent. I prefer the latter by a wide margin. I’ve also worked in offices full-time, half-time and fully remote. I immensely prefer the final option.
Why? Work meetings are often a waste of time. Mostly you don’t need to align, most folks taking part are superfluous and as accidental team-building exercises they are incredibly expensive in terms of human-hours.
I am not into wasting time. The more remote I’ve been and the less time I’ve spent in less-formal meetings — the usual chit-chat that pollutes productive work time, making the days longer and less useful — the more I’ve managed to get done.
But I’ve been the lucky one, frankly. Most folks were still trapped in offices up until the pandemic shook up the world of work, finally giving more companies a shot at a whole-cloth rebuild of how they toil.
The good news is that CEOs are taking note. Chatting with Sprout Social CEO Justyn Howard this week, he explained how we have a unique, new chance to not live near where we work in 2021, but to instead bring work to where we live. He’s also an introvert, which meant that as a pair we’ve found a number of positives in some of the changes to how tech and media companies operate. Perhaps we’re a little biased.
A number of startups are rushing to fill the gap between the new expectations that Howard noted and our old digital and IRL realities.
Tandem.chat might be one such company. The former Y Combinator launch-day darling has spent its post-halo period building. Its CEO sent me a manifesto of sorts the other day, discussing how his company approaches the future of work meetings. Tandem is building for a world where communication needs to be both real-time and internal; it leaves asynchronous internal communication to Slack, real-time external communications to Zoom and asynchronous external chats to email. I agree, I think.
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The SPAC trash ticker is counting down
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.
This week had the whole crew aboard to record: Grace and Chris making us sound good, Danny to provide levity, Natasha to actually recall facts and Alex to divert us from staying on topic. It’s teamwork, people — and our transitions are proof of it.
And it’s good that we had everyone around the virtual table, as there was quite a lot to get through:
- The team felt all kinds of ways about the Amazon-MGM deal. Some of us are more positive than the rest, but what gists out from the transaction is that for Amazon, the purchase price is modest and the company is famously playing a supposedly long-game. Let’s see how James Bond fits into it. Alex receives four points for not bringing up F1 thanks to the Bond-Aston Martin connection.
- Turning to the SPAC game, we chatted through the recent Lordstown Motors earnings results, and what we can parse from them regarding blank-check companies, promises and reality.
- After launching last June with just $2 million, Collab Capital has closed its debut fund at its target goal: $50 million. The Black-led firm invests exclusively in Black-led startups, and got checks from Apple, PayPal and Mailchimp to name a few. We talk about this feat, and note a few other Black-led venture capital firms making waves in the industry lately.
- We Resolved our transition puns and eventually spoke about the Affirm spin-out, which raised $60 million in a funding round for BNPL for businesses. There are bigger questions there around the accessibility and point of BNPL, and if it’s really re-inventing the wheel or just repackaging it with simpler UX.
- Next up, we got into a can of worms about the future of meetings thanks to Rewatch, which raised a $20 million Series A this week led by Andreessen Horowitz. The startup helps other startups create internal, private YouTubes to archive their meetings and any video-based comms. We could only spend a second on this, so if you want our longer thoughts in the form of text, check out our three views on the topic on Extra Crunch! (Discount Code: Equity)
- From there we had Interactio and Fireflies.ai, two more startups that are tackling the complexities of meetings in the COVID-19 era, and whatever comes next. Both recently raised new funding, and Alex brought up Kudo to add one more upstart to the mix.
- Noom, a weight loss platform, bulked up with $540 million in funding after nearly doubling its revenue from 2019 to 2020. The pandemic has made many people gain weight, but we chew into why Noom’s moment might be right now after a decade in the works.
Thanks for hanging out this week, Equity is back on Tuesday with our usual weekly kickoff, thanks to the American holiday on Monday. Chat then, unless you want to follow us on Twitter and get a first-look at all of Chris’ meme work.
Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday morning at 7:00 a.m. PST, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts.
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Equity Monday: Crypto’s awful weekend, Apple v. Epic and funding rounds galore
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.
This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.
After a somewhat quiet weekend, things are kicking off in rapid-fire fashion this week. Here’s what you need to know:
- The cryptocurrency selloff that was in full swing on Friday continued over the weekend. Though bitcoin and ether managed to recoup some of their losses since they set new local minima, the value of popular cryptos is vastly depressed compared to recent highs.
- Looking ahead, it’s the final day of arguments at the Epic Games vs. Apple trial. And we’re seeing a smaller company try to crack some of the hold that a major tech incumbent enjoys over a huge piece of the digital economy. So, if you like startups, you might want to put aside your Apple fandom for a minute.
- More than a few funding rounds are cracking off this morning, including neat rounds from African fintech Mono, India-and-UAE-based Zeta, Emitwise raising $3.2 million, and Aurora Solar raising $250 million.
With a busy funding market and a yet-busy IPO cycle, it should be yet another busy week. Strap in!
Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts!
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LinkedIn is the reason Apple made the M1 chip
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.
This week was good fun not only because we had the whole team together to record, but also because we are still basking in the endless glory of our winning a Webby earlier this week. Frankly we are still shocked. But happy-shocked, like when you get a new toy and it is covered in static electricity.
Anyhoo, we had a packed show with much, much left on the floor as we tried to shoehorn the week into our time slot. Here’s what we got into:
- The world of connections: Fave raised $2.2 million to connect fandoms, Somewhere Good raised $3.75 million to build feedless micro-communities, and both Spokn ($4 million) and Spot ($5 million) are hoping to use the spoken word to connect companies and their staffs. Honestly we think that the overall connection-community world is super exciting.
- Piano, one of those startups we actually have the luck of using, raised $88 million for analytics, subscription and personalization tools. We get into why the round makes sense, and why one investor stood out more than the others.
- Corporate media: Coinbase is building out a media-ish org (Alex wrote about it here on his personal blog; Scrawler.co has more on the matter), and with TheSkimm hoping to find a corporate home and The Hustle doing the same, we had to dig into the matter. Our take is that content marketing is a response to expensive social advertising. And that it’s fine. And that it is not news.
- Shoutout Forbes and its new union effort. Well done.
- Uptrust raised $2 million, which let us talk about the venture-sized opportunity in fighting the billions of dollars wasted on useless mass incarceration.
- And then we chatted about the public markets. Monday.com’s IPO is filed, Marqeta’s IPO is filed, Squarespace’s direct listing is done, and more. It’s hectic out there for late-stage startups.
The show flew by, much like our days recently, simply because it was so fun and jam-packed with news. And we got to make jokes about our listeners and Monday.com PR timing, so what else could we ask for? Talk soon!
Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday morning at 7:00 a.m. PST, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts.
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Apple launches an affiliate program for paid podcast subscriptions
Apple last month unveiled its plans for paid podcast subscriptions in a newly redesigned Apple Podcasts app. Now, it’s introducing a new program that will help podcast creators grow their subscriber base: affiliate marketing. The company’s “Apple Services Performance Partner Program,” which already exists to help market other Apple services like Apple TV, Apple News and Apple Books, is today expanding to include paid podcasts.
The new program — “Apple Services Performance Partner Program for Apple Podcasts” (whew!) — will be open to anyone, though the company believes it will make the most sense for publishers and creators who already have an audience and a number of marketing channels where they can share these new affiliate links. When users convert by clicking through one of the links and subscribe to a premium podcast, the partner will receive a one-time commission at 50% of the podcast subscription price, after the subscriber accumulates their first month of paid service.
So, for example, if a paid podcast was charging subscribers $5 per month, the commission would be $2.50. This commission would apply for every new subscriber that signed up through the affiliate channel, and there’s no cap.
Podcast creators can also use the affiliate links to promote their own paid programs, which would allow them to generate incremental revenue.
While anyone can apply to join the affiliate program, there is an approval process involved. This is mainly about keeping spammers out of the program, and ensuring that those signing up do have at least some marketing channels where they can distribute the links. The sign-up form asks for specific criteria — like how many channels are available and how the partner intends to use them to promote the affiliate links, among other things.
The program will be made available to anyone in the 170 countries and regions where paid podcasts subscriptions are being made available.
Once approved and signed in, affiliate partners will gain access to an online dashboard where they can create links (i.e. shortened URLs) much like any other affiliate program. They can also create multiple URLs for an individual podcast to make it easier to track how well different channels are performing. The URLs can be posted on their own, tied to a “Listen on Apple Podcasts” badge, or can be made available as a QR code. The latter may make more sense when live events return, as it could be printed on signage or in flyers that were distributed during a live taping, for example. It also could be used in other sorts of advertising, including both print and digital.
Though premium podcasts already existed, until more recently that often involved paying a podcaster directly to access a private RSS feed. Smaller services like Stitcher also used subscriptions to provide paying customers with a series of perks, like ad-free listening and exclusive content. The new efforts by both Apple and Spotify are focused on wooing creators to their platforms, where they’ll take a cut of the subscription revenues. Spotify is waiving its 5% fee for the first two years, while Apple is employing its usual model of 30% in year 1 that drops to 15% in year two.
While people can begin to enroll in the new affiliate program starting today, paid podcasts aren’t actually launching until later this month, per Apple. When they do, those enrolled in the affiliate program will be able to create links and begin earning commissions on subscriptions.
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Spokn slurps out the BS in corporate internal comms and replaces it with audio storytelling
The podcasting world remains one of the most vibrant formats in media (and I am not just saying that since the Equity crew won a Webby yesterday for our not-that-humble podcast). Its openness, diversity, freedom and ease-of-authoring has broadened the medium to all sorts of hosts on every subject imaginable.
We experience that dynamism and verve in our own audio listening, but then we start to tune into our company’s internal communications, and, well, you certainly don’t need sleeping pills to zone out. Top-down, formal, banal — corporate comms remains mired in a 1950s way of speaking that is completely out-of-sync with the millennials and Gen Z majority of workers who expect something actually worth watching and listening to.
Spokn wants to make company-wide podcasting a must-listen event, not just for leaders to talk to their employees, but for every worker to have a voice and share their expertise and stories across their workplaces. Through its app, companies can deliver personalized podcast feeds on everything from a daily standup or weekly AMA to training and development content, all of which is secure and kept for internal use.
It’s an idea that has quickly attracted investor attention. The startup, which was part of Y Combinator’s most recent Winter 2021 batch, closed on a $4 million seed round two weeks before Demo Day led by Ann Bordetsky, a partner at NEA who joined earlier this year and previously served as COO of Rival. This is her first investment with the firm.
The company was founded by Fawzy Abu Seif, Mariel Davis and Mohammad Galal Eldeen. Abu Seif and Davis met each other in an Egyptian jazz club in November 2017, about a week after he had quit his job. They eventually came together not just as a couple — they got married in the fall of 2019 — but as business partners, linking up with Galal Eldeen and incorporating Spokn in April 2018.
Spokn’s Mohammad Galal Eldeen, Mariel Davis and Fawzy Abu Seif. Image Credits: Spokn
Spokn’s product evolved across three iterations. First, the team tried to create audio narrations of evergreen content at major publishers like The New York Times. The idea was to help publishers reuse their best content as a new revenue source while connecting more listeners into these brands. Getting publishers to commit was tough though. “The consumer app wasn’t doing that great, and we started hunting around the data to see if something was working,” Davis said.
What they found was that professional development podcasts were much more popular compared to other topics, and so they had an opportunity to re-jigger the product to focus on training and specifically target enterprises. The idea was “let’s empower companies with the same tools we had as a consumer company,” Abu Seif said.
Prior to Spokn, Davis had worked with an entrepreneur in the Middle East building out a social enterprise network focused on skills training, a role in which she handled internal communications. She saw just how little impact media like email made for employees, particularly in the distributed workforce she was attempting to engage. The new direction for Spokn was far more enticing.
The newly married couple moved to New York City from Egypt and signed an apartment lease in early March 2020 — just as the COVID-19 pandemic spread widely in the region. We “multiplied the living expenses by 8-10x while doing the same Zoom calls we could make from there,” Abu Seif joked.
Eventually, the company realized that it could do much more than just training, and expanded into broader internal comms. “Async audio is a lot more personal than email,” Abu Seif said. This latest product iteration launched in November 2020, and included push notifications, an app for streaming, personalization features and analytics to allow companies to track what was working and what was not for employees.
Spokn’s app offers a personalized feed of company podcasts. Image Credits: Spokn
Perhaps most importantly, companies can tailor the access lists for individual podcasts to particular groups of people, such as senior execs, people managers, sales employees or any other logical grouping. We “get a lot of inbound from companies that are trying to duct-tape solutions together,” Davis said. For Abu Seif, “all the tools that marketers have to engage consumers, we are empowering companies to engage with their employees.”
Despite the startup and product’s youth, it has attracted a quick following among companies, with customers including Podium, ShipBob, Cedar, Mixpanel, ServiceNow and Superhuman. Podium’s CEO, for example, records weekly podcasts that are shipping on Spokn, and apparently even installed a podcast studio near his office just to make it easier to produce his shows.
Podcasting inside companies fixes a lot of problems with traditional internal comms. First and foremost, it can create a deeper connection where email cannot. Audio can feel more personal than even video, and also can be played in the background. It’s also asynchronous, unlike live video, allowing employees in different time zones to connect with key stories at an appropriate time.
Plus, employees can avoid all the fatigue that comes from being onscreen. “No one wants Zoom zombies,” Bordetsky of NEA said. “We need intuitive and asynchronous communication tools like Spokn to build connection and community in the workplace.” Her thesis for the investment is that “flexible, distributed work is here to stay and employee communication is at the heart of building a modern, virtual-first employee experience.”
Buyers of Spokn range from heads of people to sales teams, and the company is also focused on recruiting and retention as well. “Companies are pretty freaked out about retaining their great talent,” Davis said. Some companies are now sharing “stories with prospects even before their first day at the company.”
While the product is mostly used by leaders today, Spokn wants to expand that remit to employees talking with their peer colleagues, helping to build community in hybrid offices where it is harder than ever to make a connection with others.
Of course, companies can screw up podcasting just as much as they have screwed up every other medium to communicate like humans, and Davis says it’s become her full-time job to help them think through storytelling and how to connect better with their own employees. We “work to find the right storytellers in the company,” she said.
Outside NEA, other investors in the seed round included Reach Capital, Funders Club, Liquid2, Share Capital, SOMA Capital, Scribble VC and Hack VC.
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