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Equity Monday: More money for fintech, Deliveroo’s IPO and AI startups

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 — and make sure to check out our Friday show that featured the Square-Tidal deal, some recent IPOs and some super-neat rounds.

Much like today’s show, if I am being honest. Here’s the rundown:

A packed kickoff to what promises to be a packed week!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!

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SoftBank makes mountains of cash off of human laziness

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Natasha and Danny and Alex and Grace were all here to chat through the week’s biggest tech happenings. It was yet another crazy week, but we did our best to get through as much of it as we could. Here’s the rundown, in case you are reading along with us!

  • Square is buying Tidal in a deal that some are skeptical of, but one about which we found quite a lot to like.
  • How capital-as-a-service can get you your first check in 2021, and a nod to Indie.VC, a pioneer in alternative financing for startups that announced it is shutting down net new investments this year.
  • Oscar Health priced its IPO above its raised range, which was good for it in terms of fundraising. However, since its debut the company has lost pricing altitude. Its declines mimic those of other public neo-insurance providers in what could be a new trend.
  • And sticking to the insurtech beat, Hippo is going public via a SPAC. Because everyone else is?
  • Compass filed its S-1, which triggered a debate on how it’s different than Opendoor.
  • Coupang’s IPO is also coming, replete with huge growth, an improving profitability picture and a massive valuation. This is one to watch.
  • There was also a whole global news circuit around grocery delivery startups, with Instacart raising at a $39 billion valuation.
  • And we wrapped with the Surreal seed round that we found to be more than a little spicy. As it turns out, commercialized deepfakes are not merely on the way; they are here.

And with that we are back on Monday. Have a rocking weekend!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!


Early Stage is the premier “how-to” event for startup entrepreneurs and investors. You’ll hear firsthand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company building: Fundraising, recruiting, sales, product-market fit, PR, marketing and brand building. Each session also has audience participation built-in — there’s ample time included for audience questions and discussion.

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The Equity podcast is growing

Equity is celebrating its fourth birthday in a few weeks and closed 2020 with its biggest quarter to date. To celebrate and say thank you to our wonderful listeners who tune into us each and every single week, we’re growing upward and outward!

First, as many of you have noticed, we’ve expanded the Equity team. Grace Mendenhall joined the production crew this year, initially helping cover for Chris Gates while he was out on paternity leave. But now Chris is back and so we’ve doubled our producer team.

In classic startup fashion, a bigger team means we can make more swings at R&D, or in this case, add on a new show to our semiweekly cadence.

Today, the whole Equity team — Chris, Grace, Danny, Natasha and Alex — are super proud to announce that we’re expanding the podcast’s show lineup. We’re going to add a new show each week, which will rotate around a particular theme, geography or supermassive news event. It’s your midweek chance to listen to a show about one trend, whether that’s space tech or the growth of community as a competitive advantage. Sometimes it will be an exact topic you’ve cared about for so long (insert Alex and SaaS joke here) and sometimes it will be about a topic you know nothing about. We’re here to convince you to care anyway. Regardless, you can depend on the Equity trio to give you a trifecta of shows that helps you stay up to date on startup and venture capital news in a consumable way.

Starting, well, now, here’s what Equity looks like:

  • Equity on Monday: Our weekly kickoff show is not changing. Except Alex has promised to learn how to speak with better diction.
  • Equity on Wednesday: Our midweek show focused on a single topic or theme. Expect to hear from other TechCrunch reporters about their beats, investors on what they are seeing in the market and reporting on countries and cities where startup activity is blowing up.
  • Equity, now on Friday: The main Equity episode is not changing, other than that we’re going to tighten it up a little bit and release it Friday mornings like we used to. While it was a blast to get out the door Thursday afternoon, we’re going to give Equity Wednesday a little more time to breathe. And since so many of you listen to this episode on Friday anyway, most folks won’t notice a change.

As COVID-19 fades thanks to the rollout of vaccines around the globe, we’ll eventually get back into our studio. That could mean more video down the pike. And we’ll still do the odd Equity Shot for big events that we can’t help but chat about.

Our goal was to double-down on what we think is the best part of Equity: A group of friends hammering through the news as a group, learning, joking and having fun with the world of startups and venture capital.

So, we’ll see you one more time each week. Cool? Cool. Hugs from here and chat soon. — The Equity Team

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Spotify to test paid podcast subscriptions this spring via new Anchor feature

During its livestreamed event today, Spotify officially confirmed its plans to launch paid podcast subscriptions on its platform. As a first step, the company will this spring begin beta testing a new feature in its Anchor podcast creation tool that will allow U.S. creators to publish paid podcast content aimed at their “most dedicated fans.” It also opened up signups for this and other new features, starting today.

Spotify had hinted at its plans for paid podcast content during its fourth-quarter earnings call earlier this month, when it said it was exploring ideas like paid podcast subscriptions and à la carte payments. But it didn’t detail when these new options would go live or how they would work.

At its online event today, Spotify more formally announced its plans to enter the market of paid podcasts, initially with a new service that would allow Anchor creators the ability to offer paid podcast subscriptions supported by their listeners.

This sort of idea is not new, to be clear. Already, some podcasters offer paid access to bonus material — for example, through a service like Stitcher Premium, which promises both an ad-free experience and bonus episodes. Some creators may even independently offer paid feeds through their own platforms.

But until now, a similar option was not available to Spotify creators.

Anchor co-founder Michael Mignano said the company believes paid bonus material can work well as a means of podcast monetization, in addition to ads.

Image Credits: Spotify

“We have found that, through our research, it seems to work especially well for creators who have really engaged and dedicated audiences — regardless of the audience size,” he told TechCrunch in an interview following Spotify’s event. “We’ve also found that podcast listeners do tend to be open to financially supporting the shows they love,” he added.

The company was hesitant to detail some of the specifics of how paid subscriptions would work at launch, but did say that the model would involve a revenue share between creators and Anchor, where creators keep the majority of the earnings. Anchor will also allow creators to determine what price to charge their listeners for the paid experience and what that experience would include — like bonus episodes or interviews, or even ad-free content, if they prefer.

It will then use its understanding of what creators actually do with paid subscriptions to inform its product launch and its “best practices” recommendations in the future.

We also understand the offering will be limited to those who use Anchor to record and publish across podcast platforms. However, it will more immediately benefit creators with a strong Spotify presence and a loyal listenership.

But Mignano points out that creators may be able to grow their paid subscriber base thanks to Spotify’s tools for podcast discovery.

“The problem is the system for doing this type of paid subscription so far in podcasts has been really disjointed,” he explained. “It hasn’t been a really seamless experience for the listener, and it hasn’t really been a great experience for the creator. We feel like that’s really held this model back and hindered creators’ reach and ability to gain paid subscribers,” he said.

Image Credits: Spotify/Anchor

In other words, users may be open to the idea of paid bonus material, but they don’t necessarily want to switch between apps to gain access, nor do they want to figure out how to get paid RSS feeds into some third-party podcast listening app.

Spotify, meanwhile, will try to make discovery easier. It will highlight the paid content alongside the free material on the podcast’s main page, for example. Plus, in the same way that Spotify today helps users discover new podcasts they may like to try, it will also point to paid subscription-based podcasts in the future as the new model rolls out further.

Anchor says it will initially open up the beta test in the U.S. to a small number of creators, but aims to expand access to more creators as soon as reasonably possible. The test, for the time being, will only focus on paid subscriptions, but Mignano told us the company may explore the à la carte model in the future.

Paid podcasts were only one of several new features Anchor announced today at the Spotify event.

The company also announced the launch of a WordPress partnership that makes it easier for bloggers to turn their posts into podcasts, either by reading the blog posts themselves or leveraging third-party text-to-speech technology Anchor provides.

Anchor will also expand beta testing of video podcasts, which so far have been tested by only a handful of creators, including Higher Learning from The Ringer.

And it will begin beta testing new, interactive features, like polls and Q&A, with a small number of creators in the months ahead.

These features could potentially overlap with paid subscriptions. For example, some podcast creators may choose to make their videos a paid feature, or perhaps other interactive features. It remains to be seen how they’re put to use.

But more broadly, features like polls and Q&As could help Spotify better differentiate an interactive podcast from a live audio program, like those popularized by the buzzy new app Clubhouse. The advantage of the latter is that it allows for audience participation in the “show,” rather than being a one-way street where hosts control the experience. But on the flip side, Clubhouse rooms can also have folks who drone on and on, or they can become boring, when not carefully managed.

Anchor says it doesn’t intend to charge creators for access to its tools, beyond taking a rev share on subscriptions.

“I think our vision with Anchor and Spotify has always been to really empower creators. In the Anchor suite of tools, we’ve never charged creators for any features because we believe that charging creators can often represent friction that stands in the way of them trying to actually make something and getting it out into the world,” Mignano said. “We want to enable creators to do whatever they want, as far as expressing themselves through these new tools,” he added.

 

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Equity Monday: Everyone is going public so what’s wrong with your startup?

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 — and be sure to check out our last main ep, in which Natasha coins a slogan for a16z that I both hate, and became the headline of the show!

But enough of all of that, we have a lot to get through this morning. Here’s what we talked about:

  • The Weekend: Coinbase at $100 billion? More on that to come. Toast is going public! Probably! Wait, Toast the company that laid off staff last year? Yep that Toast! It’s not toast! And new rules on online lending in China.
  • This Morning: Oscar Health put together an IPO price range that is interesting, and Apex Clearing is going public via a SPAC.
  • Funding Rounds: Gophr raises money! Ageras Group raises money! Promise raises money! It was hard to pick just three, but each of those rounds has something notable about it. Enjoy!
  • Deeper Dive/Riff: If the public markets will float even the most leaden of startup via a SPAC-balloon, any late-stage startup that doesn’t take the ride out of the private markets must either be perfect or too heavy to lift. And if it’s the second, we can write it off? Maybe?

And, finally, this is precisely what I feel like this Monday morning. Chat soon and stay safe!

Equity drops every Monday at 7:00 a.m. PST and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

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Acast acquires podcasting startup RadioPublic

Podcast advertising company Acast is announcing that it has acquired RadioPublic, the startup that spun out of public radio marketplace PRX in 2016.

At first, RadioPublic’s main product was a mobile app for podcast listening, and it still supports the app. But co-founder and Chief Product Officer Matt MacDonald said that over time, the team’s focus shifted to products for podcasters, specifically its Listener Relationship Management Platform, which includes an embeddable web player, custom websites called Podsites and more.

“We had a whole roadmap of things we wanted to build, but we recognized that at our scale, we could be better served by partnering up with bigger organizations,” MacDonald said.

And ultimately, they decided Acast made sense as not just a partner, but an owner. Acast’s business still revolves around podcast advertising, but it’s also expanded with new tools like the Acast Open hosting platform, and it says it now hosts 20,000 podcasts, collectively reaching 300 million monthly listeners.

“The acquisition of RadioPublic is fundamentally a partnership of values,” said Acast’s chief business and strategy officer Leandro Saucedo in a statement. “We both firmly believe in the open ecosystem of podcasting and have a shared commitment to aid listener discovery and support all creators. We’re impressed by what RadioPublic has achieved and we believe that now — as podcasting is gaining more momentum than ever before — is the ideal time to bring RadioPublic’s talented team and company missions into the Acast fold.”

The financial terms of the acquisition were not disclosed, but Acast says it will not affect RadioPublic operationally.

MacDonald and his co-founder/CTO Chris Quamme Rhoden are both joining Acast (CEO Jake Shapiro departed last fall to lead creator partnerships for Apple Podcasts), and although they’ll be working to integrate RadioPublic features into the Acast platform, MacDonald said the startup will continue to support its own products and mobile apps for “the foreseeable future.”

He added that as RadioPublic works with Acast, the team will remain focused on “strengthening and deepening that relationship, that bond, that affinity between the podcaster and the listener.” In his view, that’s where RadioPublic’s opportunity lies, even as big platforms like Spotify invest in podcasting.

“How do we enable you, as the creator, to control the relationship you have with your audience?” MacDonald said. “We believe that a podcast’s listeners are the podcast’s listeners. They are not the platform’s customers.”

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A16z doesn’t invest, it manifests

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Natasha and Danny and Alex and Grace were all here to chat through the week’s biggest tech happenings. In very good Show News™, Chris is back! He’s working on the next iteration of the show, something that you will be able to see starting Very Soon. Get hyped!

Today though, we had a delectable dish of dynamic doings, namely news items of the following persuasion:

And that’s our show! We are back early Monday morning for a packed week. So keep your podcast app warm, we’re coming for it.

Equity drops every Monday at 7:00 a.m. PST and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

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Zencastr raises $4.6M as its beta video offering goes live for all

Founded in late-2014, Salt Lake City-based Zencastr has become a kind of lifeline for many podcasters, as the pandemic pushed formerly in-person podcasts online. The startup is hardly a household name, but the company says it’s used by around 6% of all podcasts, based on an estimated 800,000 to 1.2 million active shows in the world.

I can certainly say, anecdotally, that just about every podcaster I’ve spoken to has tried the service, which offers a more specialized solution than video chat programs like Zoom and Skype. Some have managed to retrofit the latter to their needs, but Zencastr’s solution offers, among other things, high-quality audio recordings saved both locally and in the cloud.

As of last June, the company has also been testing a video feature. That’s long been a missing piece of the puzzle. I know I’ve moved over to Zoom since taking my show online during the pandemic. As pretty much any person can tell you a little over a year into the pandemic, video chat is no replacement for in-person interactions, but it works in a pinch. At the very least, it creates an additional dimension of human interaction you don’t get with voice alone.

Up to now, the video offering was only available as a closed beta. Today the beta opens to all users, bringing with it HD video recording, coupled with the already high-quality sound. I’ve been toying around with the feature for my own podcast and find it to be less straightforward than services like Zoom, but more customizable. It leaves you with HD video files you can edit into a tighter show or simply go with the split screen. There’s also a live chat, footnotes and a soundboard, much of which seemed aimed at essentially editing the shows in real time.

Along with the broader arrival of the video feature, Zencastr is announcing a $4.6 million seed round — the service’s first major funding since launch.

Founder and CEO Josh Nielsen tells TechCrunch that Zencastr has thus far been, “bootstrapped, self-funded and really just kind of a grassroots company in the podcasting space. A lot of people are getting interested in podcasting right now and we feel like it’s important to have a company like ours continue to represent our creators. They’re our North Star.”

As interest in podcasting has grown, Zencastr’s use has expanded with it. The company says it has seen around a 147% growth in podcasting hours since the beginning of COVID-19. The seed round is led by Utah-based Kickstart, with participation from former Flipagram executives Brian Dilley and Farhad Mohit and former Skullcandy CEO Jeremy Andrus, among others.

“This company started off pretty small and didn’t have a lot of resources,” Nielsen adds. “But we’ve always been profitable, we’ve always been growing. We still are, but we’re raising money to accelerate that growth. This is also a rebrand and a step forward in the reliability and stability of the platform.”

Stability has been something of an issue in the past with many of the Zencastr users I’ve spoken to. Spending more time with this service ahead of this news, I certainly found some nits to pick, including an audio delay I haven’t experienced with non-devoted services like Skype and Zoom. It’s not the end of the world, but it’s the kind of thing that can really throw you off your rhythm during an interview. The video presentation is also lacking in sophistication, but that’s to be expected in a closed beta.

The funding will go to smoothing out some of those wrinkles, as well as hiring.

“Headcount is one of the primary reasons for raising this round,” co-founder and CPO Adrian Lopez tells TechCrunch. “We were a fully distributed team before COVID existed. We have people in 11 different countries around the world. That was a very conscious choice. We believe that distribution allows us to work with some of the best people, regardless of where they are.”

Today also sees the launch of “Digital Nomad,” a podcast series produced by Zencastr that explores its own origin story. Though, the company is quick to add that this isn’t the beginning of a major push into producing original content.

“We believe strongly in podcasting as a medium that connects people,” says Lopez. “We formed the company around that. We’re fully distributed so we can put our money where our mouth is and put people all over and connect via this medium. We want to start telling that story.”

Zencastr has seen a fair bit of increased competition in the category, including the likes of SquadCast and Riverside.fm. The company’s solid growth over the past year could also see some regression as more people feel comfortable recording shows in person, as the vaccines have been sufficiently distributed.

“We’re going to see some retraction, I think, as things and people go back to work,” says Lopez. “But I think it will all come out in the wash, because there’s just a much bigger-growing interest in podcasting over all. It happened before COVID and it will continue after COVID.”

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Does SoftBank have 20 more DoorDashes?

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Natasha and Danny and Alex and Grace were all here to chat through the week’s biggest tech happenings. This week felt oddly comforting from a tech news perspective: Facebook is copying something, early-stage startup data is flawed enough to talk about and sweet DoorDash is buying robots for undisclosed sums.

So, here’s a rundown of the tech news we got into (as always, jokes aren’t previewed so you’ll have to listen to the actual show to get our critique and Award Winning Analysis*):

In good news, long-time Equity producer Chris Gates is back starting next week, which means we’ll have our biggest crew ever helping get the show put together. And, in other good news, there’s going to be more Equity than ever for you to hear. Coming soon.

Equity drops every Monday at 7:00 a.m. PST and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

*OK, so not award-winning yet. But soon enough, because manifestation works.

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Podz turns podcasts into a personalized audio newsfeed

Podz is the latest startup trying to solve the problem of podcast discovery, with backing from investors like M13, Katie Couric and Paris Hilton.

“Even though podcasts have gained a lot of momentum — there are 100 million folks in the U.S. who listen to podcasts — we still haven’t seen that crossover behavior, where audio becomes a part of everyday lives,” CEO Doug Imbruce argued. “We think that’s because the experience of discovering and consuming podcasts is ancient. It literally feels like browsing the web in 1997.”

Imbruce’s name may be familiar to longtime TechCrunch readers, as he was previously the chief executive at Qwiki, which won the Startup Battlefield at TechCrunch Disrupt in 2010 (Cloudflare was one of the runners up), then acquired by Yahoo a few years later.

By Imbruce’s own admission, Qwiki never quite lived up to his hopes for remaking online media consumption, but he said that its vision of “machine-created media” offered “a taste of the future” — a future that he’s hoping to help usher in with Podz.

The problem the startup aims to solve is pretty straightforward. Because podcasts often consist of 30 or 60 minutes or more of spoken-word audio, they’re difficult to browse, and when you discover new ones, it’s usually through word-of-mouth recommendations or clunky search tools.

While tools like Headliner make it easier for podcasters to promote their content with short clips on social media, Podz automates that creation process and makes those clips the centerpiece of the listening experience.

Podz demo

Image Credits: Podz

In the Podz mobile app, users browse what the startup calls “the first audio newsfeed,” consisting of 60-second podcast clips. These clips are designed to highlight the best moment from each podcast, making it easier to sample a much wider array of titles than the ones to which you currently subscribe. Each clip should stand on its own, but if you want to dive deeper, you can save the full episode for listening later.

These clips are created automatically, and Imbruce said “the beating heart of the Podz platform” is a machine learning model that “identifies the most engaging parts of podcasts.” The model was trained on more than 100,000 hours of audio, in consultation with journalists and audio editors.

For example, here are the clips chosen from the three most recent episodes of the Original Content podcast — our reviews of “Soul,” “The White Tiger” and “Bridgerton.” Each clip seems reasonably self-contained, and although I was a little dismayed to discover that they all focused on me (rather than my more eloquent co-hosts), a Podz spokesperson explained that’s because the app focuses on “the highest density speakers.”

The Podz newsfeed is personalized to your interests (and, if you choose, it also can draw on the podcasts you follow in Apple Podcasts and the accounts you follow on Twitter). Imbruce said it should become smarter over time as it observes listener behavior.

He added that the team is hoping to introduce more creative and monetization tools for podcasters over time: “We are really hopeful that we can both increase amount of audio being created by 10x and increase the monetization of audio by 100x.”

In addition to Imbruce, the Podz founding team includes CTO Seye Ojumu, Head of Design Rasmus Zwickson and iOS lead Greg Page. The startup has raised $2.5 million in pre-seed funding from M13, Canaan Partners, Charge Ventures and Humbition, as well as notable angel investors like Couric, Hilton (who’s launching her own podcast) and Mara Schiavocampo (The Trend Reporter).

“We are living in a golden age of audio, but only 1% of podcasts reach an audience of 5,000+,” M13 General Partner Latif Peracha told me via email. “Podz plans to grow the audience for existing audio but the real focus will be on growing new audio by leveraging their creator tools. Already, the average podcast listener subscribes to seven podcasts but follows almost 30 on Podz. Early signals make us optimistic the team can build a transformative product in the category.”

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