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Sharify makes it super simple to rediscover your city’s social side
The pandemic has upended many aspects of urban life but perhaps the most visible upheaval is to citydwellers’ social lives, with curfews calling time on traditional night life across much of the Western world and social distancing putting a chilly spin on opportunities for getting together with people outside your usual circle. Who knew leaving the house was going to seem like such a mission?
Opportunities to escape the city entirely — such as by jetting off somewhere — remain severely limited or even impossible right now, depending on where you live. And for many urbanites COVID-19 may feel as if it’s turned the advantages of city living on its head, despite lockdowns generally not being as hard-line as they were at times last year and vaccines now (slowly) being rolled out.
Sharify is a startup that reckons it can help with the weird flatness of pandemic city living. It’s a real-time events app (iOS and Android) that wants to bring back a little of the serendipitous joy of urban living by making it easier to discovery things going on around you — maybe even just a few blocks away. To do this it’s combined real-time event listings with a map view (via the medium of emoji-style icons plus filters) to quickly and cheerfully surround you with stuff that’s happening in the vicinity.
Though the business idea predates COVID-19, Sharify isn’t blind to the changes wrought by the pandemic. And the app displays a star icon next to events that are deemed COVID-19 ‘safe’ — a subtle promotion meaning the organizer has measures in place to reduce the risk of contagion, such as controlling venue capacity, providing disinfectant hand gel and ensuring tables/seating are safety spaced. (Which may well be legal requirements for a venue to be open for business, of course.)
At the same time, the app lets users share their own meeting plan with other users — potentially encouraging a bunch of strangers to meet up to play some music or hang out in the park or whatnot — so its appropriateness for the pandemic moment in which we find ourselves does depend on how you use it.
It’s open to social swings or roundabouts, you could say. (And limits on when/how clubs and bars can open may well be pushing a socially oriented and app-savvy demographic toward alternative ways (and tools) to mingle with strangers.)
More broadly, Sharify invites users to rethink the concept of travel and trips — asking them to refocus their attention and energy on discovering entertaining things to do without having to go far or plan far ahead. Because, well, what else can anyone really do right now? Apart from stay at home ofc.
The app does have two ‘view’ modes: One for events geared towards locals and/or a dedicated ‘tourist’ view to cater to those wanting to do more typical sightseeing — though content for the latter is obviously thinner on the ground at the moment. (And, well, ‘tourism’ as a concept is starting to feel rather quaint and old-fashioned vs properly exploring your own backyard.)
Officially Sharify is launched in Barcelona, Madrid and New York City — but says it’s “expanding quickly” and touts being “present” in 25+ cities around the world (presumably with a lighter events cadence vs those three).
I tested the app in Barcelona and quickly found a bunch of local events that looked interesting — at least compared to another night of thumbing through the Netflix catalogue — from a Banksy art exhibition, to a stand up comedy show (in English!), lots of theatre, a bunch of markets, yoga classes and a skateboarding event all going on within, at most, a couple of miles and days from where I’ve been spending the vast majority of my time for, like, almost a whole entire year.
Just the act of seeing stuff still going on in a city which, frankly, hasn’t felt very familiar or open for much of anything for close to 12 months was a bit of an eye opener.
After so much time locked down indoors maybe we all need a bit of a nudge/visual reminder that life is still going on — and socializing is still possible (with appropriate safety measures and distancing) — beyond the front door and away from the Zoom screen (or any other screen tbh). Even if I’m not about to sign up for everything I spotted in the app. But feeling like I could is almost exciting enough.
As well as providing key details about each event (when, where, any website etc), Sharify lets you signal an intent to go that’s visible to other users by ‘joining’ an event. It also hosts per event chat where those who have joined are invited to “talk to people who join the plan” — which is another neat little nudge to get users excited about going to a local thing, maybe without their usual friend group in tow.
Sharify isn’t disclosing how many users it has but it says it has 100,000+ monthly event views (3K+ daily), and 5,000+ events every month. (On Google Play the app has had 10,000+ installs.)
Where users create their own plans to advertise to others it touts an impressively high “join” rate of 95%. (Albeit saying you’re going to something you found via an app isn’t the same as actually turning up.)
To encourage users to discover and attend others’ events, Sharify displays a smilie face on the map in locations where several people are up for ‘sharing plans’ — listing the number of people theoretically up for joining in stuff around there and nudging you to ‘create a plan in this area’ to tap into that potential guest pool.
It also lets you drill down to check out micro profiles of these (public) socially interested locals — displaying a first name, perhaps a photo and any ‘interests’ if they’ve chosen to select some from its curated lists of culture, hobbies, sports and social activities etc. (Happily there’s no option to message individual users via their profile so no fear of stupid in-app spam.)
Location-based and social sharing is not new, of course. Indeed, it’s an idea that’s been around the tech block so many times the sound of a ‘real-time events map’ probably triggers a fuzzy feeling of ‘haven’t I seen this before somewhere?’ The deja vu may be real but context is ever shifting, is the point. Or, to put it another way, here and now, in an open-ended pandemic, going about finding something to do probably looks and feels quite a bit different to how you did it, pre-March 2020.
Put simply: Best laid plans are toast. Friends who don’t live in the same city are likely reachable only on Zoom or by text. And at very least you’re dealing with hard limits on how far you can range for your entertainment in time and space.
Local and/or virtual is the new global, all of a sudden. So Sharify reckons its real-time events map is just the ticket/tonic in this curtailed context — by cheerfully surrounding you with nearby stuff to do. The 2017-founded startup says it’s been growing “despite” the pandemic.
“We’re stuck at home, and we saw all the Netflix series. Is there any plan near my home for this afternoon? Event agendas simply don’t work in this user case. That’s why we built a real-time map,” says co-founder and CEO Gemma Prenafeta. “And the problem we will face in some months from now: I’m not stuck at home anymore. Where do I find new events easily?”
“As Sharify is a collaborative platform, we let people share their own events for free, we scrape different event sources such as Google and Tiqets, and we highlight those businesses that want to promote themselves,” she adds, giving a succinct explainer on how the app populates the map view with stuff to do.
Social maps aren’t new, of course — and features like Snap Map, which was added to Snap’s social network via its acquisition of Zenly, certainly has a bit of overlap (while Sharify’s smiley octopus logo on a yellow background has more than a little of Snap’s ghost in look and feel), though Snap Map is more obviously focused on friends’ location and social sharing vs Sharify being about event discovery, first and foremost. (Friends may follow from this real-life socializing, is the suggestion.)
There are also event discovery network startups (like calendar-focused IRL). But, again, with such a glance-friendly map view, Sharify is paying closer attention to immediacy/hyper-local event discovery vs IRL — which pivoted to helping people surface virtual events as the pandemic shuttered lots of real world events last year and has since focused on building out its own social network.
“The ‘immediacy’ factor is key at Sharify, as you can see what’s happening, in real-time,” says Prenafeta. “We say going to a local event is a kind of ‘Local Trip’. Traveling before was about taking flights, now it’s about taking a Bird or a eCooltra to an event nearby.”
Whether mapping real-time events is a standalone business or a feature/tool that could just be added to a dominant platform/social network is perhaps a more pressing question for this fledgling startup. And it’s notable that tech (and mapping) giant Google added a ‘Community Feed’ to Maps late last year.
Facebook has also had an ‘Events Near Me‘ feature on its platform for years. Albeit, anything listed inside its walled garden has to contend with all the baggage Facebook brings with it. So an indie app with a fresh approach should have a chance to attract users who wouldn’t be caught dead on Facebook (even in a pandemic).
Sharify has certainly come up with a really effortless way to spark a sense of possibility — to feel like you can cut through the monotony of lockdown life — just by firing up a super simple overview of stuff going on around you.
It then layers on some more powerful tools that are designed to help you find others to do stuff with, which adds a subtle but maybe deeper hook in these socially distanced times.
“Life is still pretty locked down, and that’s why it’s more important than ever to know what’s open and what isn’t, close to our house,” suggests Prenafeta. And, well, it’s pretty hard to argue with that.
She’s looking beyond the pandemic too — back to more normalcy and anticipating helping local businesses announce their reopenings, once that’s possible. The team is “currently working on a seed investment round to prepare for the post-pandemic momentum”, she says.
So far the Barcelona-based startup has raised a pre-seed and an angel round led by IESE Group, per Prenafeta — with a total of €501,000 (~$600k) invested to date into what has turned out to be a contextually fresh twist on the old SoMoLo trend.
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Goody raises $4 million for its mobile app that lets you send gifts via text
Unless you’ve got someone’s Amazon Wish List, gift giving today can still be fairly difficult. You don’t necessarily know a friend or family member’s shipping address, their sizes or their particular tastes, at times. A new startup called Goody, backed by a recent $4 million fundraise, wants to help. Through its newly launched mobile gifting app, Goody lets you celebrate your friends, family and other loved ones with a gift or, soon, even just an “IOU” that lets them know you’re thinking of them.
To do so, you first download the Goody mobile app for iOS or Android, then browse across the hundreds of brands and products it offers. You also can filter these by occasion, like birthdays or holidays, or by a specific need, such as gifts to say congratulations or get well.
Image Credits: Goody
When you find a gift you like, you just enter the recipient’s phone number. Goody then sends a text that lets the recipient know that you’ve sent them something. The recipient clicks the link to accept the gift, which opens a website where they can see what you’ve selected, while also customizing any specific options — like their clothing size, color preferences or what flavor of cupcakes they’d like, for example.
Here, they also provide their shipping address, and the gift is sent. Afterwards, they can choose to send a thank you note, as well.
What makes this experience work is that — unlike some gifting startups in the past — Goody doesn’t require the recipient to download an app, nor do you need to know anything other than a phone number of the person you want to send a gift to.
Image Credits: Goody
The idea for Goody comes from co-founder and serial entrepreneur and startup investor Edward Lando, whose prior company, YC-backed GovPredict, was recently acquired. He was also the first investor in Misfits Market, serves on the board at Atom Finance and is a managing partner at Pareto Holdings, based in Miami, where Lando now lives.
Joining him on Goody are Even.com tech lead Mark Bao and Lee Linden, who notably sold his prior gifting startup Karma Gifts to Facebook back in 2012.
Lando says he was interested in working on the idea because he loves to send gifts, but thinks there’s a lot of friction involved with the process as it stands today. Meanwhile, gifts that are easier to send, like gift cards, can lack a personal touch.
“The most important thing for us is for Goody to feel highly personal,” Lando explains. “If someone sends you something through Goody [it should feel like], wow, they really thought about me — they picked out something for me. We don’t want it to feel like someone is just sending you a dollar value,” he says.
The mobile app launched in mid-December and now works with a couple dozen brand partners. Many of these are in the direct-to-consumer space or are otherwise emerging companies, like non-alcoholic aperitif Ghia, workout experience The Class, pet company Fable, wellness company Moon Juice, Raaka Chocolate and others.
Image Credits: Goody
Goody’s model involves a revenue share with its partners, where its cut increases the more sales its makes on the partner’s behalf.
Brands are interested in working with Goody, Lando explains, because it can help them acquire new customers with little effort on their part.
“There’s so many direct-to-consumer brands these days — thousands of them — selling online — coffee, chocolate, all these cool things,” Lando says. “And for now, their only way of getting discovered is buying ads on Facebook. We’re another way for people to discover them. We’re like a giant shopping mall for people to discover these things,” he adds.
The app, however, wants to be useful to those who also just want to stay in touch with friends and family. On this front, it’s rolling out free gifts this week called “IOUs,” for telling someone you’re thinking of them — for example, by saying something like “I owe you dinner next time I’m in town” or sharing some other more symbolic gift.
The app will also later integrate a calendar that will help you track important occasions, like birthdays and other major life events.
Goody was founded in March 2020 and the app launched in mid-December of the same year. So far, around 10,000 gifts have been sent using its service, Lando says.
In addition to the holiday season, of course, the pandemic may have played a role in Goody’s early traction.
“I think the pandemic has been a big problem for everyone. And one of the things that people frankly don’t talk about enough, in my opinion, is the psychological toll the pandemic is taking on everyone…we are all creatures that enjoy social interaction. It feels good to see other people — especially the people you care about. And when you don’t, it really drains you of energy,” Lando says.
“This is obviously not the same as seeing people in person, but I do think that Goody is a nice injection of warmth and positivity…Everyone who uses it says they feel good after using it, which I think is rare,” Lando notes.
Image Credits: Goody ad in NYC
The startup, meanwhile, has raised a little more than $4 million in early funding from investors including Quiet Capital, Index Ventures, Pareto Holdings, Third Kind Venture Capital, Craft Ventures and the founders of Coinbase (Fred Ehrsam) and Quora (Charlie Cheever), among others.
Goody is a team of nine full-time employees, based in Miami and elsewhere, working remotely. Ahead of Valentine’s Day, the company snagged a spot on a Times Square billboard to advertise its app, in the hopes of gaining new users during one of the bigger gifting holidays of the year.
History is littered with the remains of gifting startups that either died or exited years ago, having failed to generate a large, sustainable audience — including the likes of Bond, Giftly, Token, Sesame and others. But the rise in D2C brands combined with the decline in young people’s use of Facebook for discovery purposes could potentially breed an environment where an alternative gifting startup could grow.
The app is available as a free download on the App Store and Google Play.
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With a higher IPO valuation, is Bumble aiming for Match.com’s revenue multiple?
The IPO frenzy is not letting up, Bumble informed the world this morning.
Per a new SEC filing, the dating company raised its target IPO price range, indicating that its previous attempt to quantify its per-share value was an undershoot. This means we’ll need to calculate a host of new valuations and revenue multiples for the company.
But more than that, we have a question to answer: Is Bumble aiming for a Match.com price, despite not being as profitable as its already-public rival? The last time we covered the pair, Bumble’s implied revenue multiples were discounted compared to Match, but with this new price, has the smaller company gained ground?
The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.
And if so, does it mean that we’re seeing more public market enthusiasm for private companies? We’ll find out.
When it comes to the frenetic demand for IPO shares from public investors, I am reminded of a particular Dilbert. In this particular strip, Wally gets fired and is then hired back as a consultant. People outside the company appear smarter, he said, so he’s now back and getting paid more money than before.
This, but for private companies going public. Some companies appear to have huge promise while private, only to fizzle slowly while public. Or they manage huge price gains during their IPO process, only to cede those wins after they have a few trading months under their belt.
Is that what’s going to happen with Bumble?
Bumble’s new IPO pricing range
Bumble targeted a $28 to $30 per-share IPO price when it first set a range, implying a greater than $1 billion raise. Now the company is selling more shares at an even higher price. From 34.5 million shares to 45 million, and at a new $37 to $39 per share price range, Bumble could raise $1.66 billion to $1.76 billion in its IPO.
And that’s not counting its underwriters’ option of 6.75 million shares, which might bring its total raise to $2.02 billion at the top end of its new pricing interval.
What is Bumble worth at those new prices? Using its simple, shares-outstanding post-IPO count of 112,745,301 — inclusive of its underwriters’ option — the company would be worth $4.17 billion to $4.4 billion.
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Rocket.Chat raises $19M for its open-source approach to integrated enterprise messaging
Chat platforms like Slack have been game-changers when it comes to what business users want and expect out of their work communications. Today, a company that’s aiming to move the goalpost again with an integrated, open-source alternative is announcing some funding to fuel its growth.
Rocket.Chat, a startup and open-source-based platform of the same name used by banks, the U.S. Navy, NGOs and other organizations big and small to set up and run any variety of secure virtual communications services from one place — they can include not just team chat, but also customer service, collaboration platforms covering your staff and outside partners, school classrooms, conferences and more — has raised $19 million.
The company plans to use the funding both to continue adding more customers, but also expanding the platform’s functionality, including more security features, a way to use the service over federated blockchain architecture, apps for marketplaces, options for bots, and more social media and omnichannel customer service integrations, and potentially facilities for virtual events.
As more business interactions have gone virtual, it has essentially opened the door for companies like Rocket.Chat building virtual communications platforms to build in an increasing number of features into what it does.
The Series A round of funding has four lead investors — Valor Capital Group, Greycroft, Monashees and NEA — with e.ventures, Graphene Ventures, ONEVC and DGF also participating. The Porto Alegre, Brazil-based startup (which is incorporated in Delaware) has now raised $27 million to date.
Rocket.Chat is not disclosing its valuation with this round, but it comes on the back of some significant growth in the last year. The startup now has 16 million registered users across 150 countries, with eight million of them monthly active users. Of that 16 million, 11.3 million users registered for the service in the past six months. It’s currently installed on some 845,000 servers, the company said, and has over 1,500 developers building on its platform.
Rocket.Chat’s funding and expanding business comes as part of a bigger focus overall for open-source platforms.
The promise of open source in the world of enterprise IT has been that it provides a platform to customise a service to fit with how the organization in question wants to use it, while at the same time providing tools to make sure it is robust enough in terms of security, extensibility and more for use in a business environment.
Over the years, it has become a big business opportunity, in line with organizations getting more sophisticated in terms of what they expect and need out of their IT services, where off-the-shelf apps may not always fit the bill.
Rocket.Chat positions itself as something of an all-in-one superstore for any and all communications needs, with organizations putting their own services together in whatever way works for their purposes.
It can either be hosted and managed by customers themselves, or used as a cloud-based SaaS, with its pricing ranging between free (for minimal, self-hosted services) to $4 per user per month, or higher, depending on which services customers want to have, whether its hosted and how much the platform is being used each month.
Image Credits: Rocket.Chat
As you can see in the mock-up here, its basic platform looks a little like Slack. But if you are using it for omnichannel communications for customer service, for example, you can build a platform within Rocket.Chat where you incorporate communications from any other platforms that might be used to communicate with customers.
Its work collaboration platform starts with Rocket.Chat’s basic chat interface, but also allows you to integrate alerts and links to other apps that you regularly use, as well as video calls and more. These and other functions built on Rocket.Chat can then be made to interact with each other — for example handing tickets off in customer service to internal tech support teams — or separately.
The idea is that by providing a version that can be hosted and managed by organizations themselves, it gives them more privacy and control over their electronic messaging.
Its thousands of customers reflect an interesting mix of the kinds of organizations that are looking for solutions that do just that.
Gabriel Engel, the CEO and founder, tells me the list includes several military and public sector organizations including the U.S. Navy, financial services companies like Credit Suisse and Citibank, as well as the likes of Cornell, Arizona State, UC Irvine, Bielefeld University and other educational institutions, and a number of other private companies.
That flexibility does not always play to Rocket.Chat’s advantage, however. Controversially, it seems that the list also includes the other end of the spectrum of organizations that want to keep their messages limited to a very specific audience: Islamic State it turns out also hosts and runs a Rocket.Chat to disseminate messages.
Engel says that while this is not something that the company supports, and that it works with authorities to shut down users like these as much as it can, it’s a consequence of how the service was built:
“We are not able to track usage if they are running Rocket.Chat servers of their own,” he said. “There’s a reason why the U.S. Navy uses Rocket.Chat. And that’s because we cannot track and know what they’re doing. It’s isolated from any external influence, for better or worse.” He added that the company has policies so that if an illicit organization is using its SaaS version, these get taken down in cooperation with authorities. “But just as with Linux, if you download and run Rocket.Chat on your own computer, then obviously it’s out of our reach.”
Hearing about how a platform built with privacy by design can be abused, with seemingly little to be done about it, does seem to offset some of the benefits. The ethics of that predicament, and whether technology can ever solve it, or whether it will be up to government authorities to address, will continue to be a question not just for Rocket.Chat but for all of us.
In the meantime, investors are interested because of the alternative it provides to those groups that need it.
“In today’s environment, organizations must have a secure communication platform to engage teams internally, communicate with customers and partners externally, and connect with safe interest-based communities,” said Dylan Pearce, partner at Greycroft, in a statement. “Rocket.Chat’s world-class management team and open-source community lead the industry in innovation and provide a communications platform capable of serving every person on the planet.”
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Former Asana employees want to take on Discord with a positive platform for creator communities
In a creator-economy world, if you’re only as good as your last YouTube video, then your next YouTube video had better be bigger and louder than the last.
Vibely, a new startup co-founded by Asana alumni Teri Yu and Theresa Lee, wants to turn the constant, and often exhausting, beast of content creation on its head. The startup has created a premium, creator-controlled community platform that allows fans to gather and be monetized in new ways, beyond what is possible on YouTube or TikTok.
The core of Vibely, and what the co-founders hope will keep users coming back, is the ability to let any creator make a challenge for their fans to enjoy. For example, a creator whose brand evokes thoughtfulness could ask fans to sketch out their personal growth goals or take action around a new year’s resolution everyday. Or a fitness influencer could motivate fans to work out for a sprint of days.
“Most people in the creator economy are thinking about how to immediately monetize and get that instant gratification of like money here,” Yu said, which is why creators sell merchandise or hop on Cameo. “We’re focusing on long-term strategic communities.” Yu describes her startup’s shift as a mindset change, from a linear relationship between creators and fans to a multi-directional relationship between fans, superfans, new fans and creators.
Image Credits: Vibely
Vibely’s pitch is two-fold. For fans, the platform gives them a chance to chat with other fans from around the world. It also lets fans participate in community challenges and have a place to plan virtual hangouts over shared love for makeup or dance. The startup helps creators simultaneously, by giving them a one-stop shop to announce plans, do call to actions and create an ambassador program. It lets the “creator scale their time and have a multi-directional relationship with the community under or beneath them.”
Notably, Vibely is trying to be different from Patreon or OnlyFans, which is basically paywalled content for fans. Vibely doesn’t need creators to post more content, it just needs them to pop into a premium community and interact with fans in a meaningful way.
The startup is formalizing a sporadic daily occurrence: When a creator posts content, their comment sections in YouTube, Instagram and TikTok light up with fans discussing every detail you can imagine, from a suggestive hair flip to if that background poster has a hidden message. Creators often pop in to respond to a spicy thread or a random compliment, which incentivizes fans to keep swarming the content section.
The startup has spent little on customer acquisition cost and relied heavily on word of mouth. In December, Vibely launched a part-in-person, part-virtual creator house to pair top TikTok creators with their followers, generating some buzz. In 2020, Vibely had more than 600 communities with 392,000 messages sent and 37,000 challenges completed. Creators include Lavendaire, with 1.3 million YouTube subscribers and Rowena Tsai, who has 520,000 subscribers.
Yu says that there is one day where Kim Kardashian might have a community on the platform, but the main “bread and butter” of Vibely is searching for creators who represent a true interest, value or belief system. This can be a book influencer or a religious creator, for example.
“[Creators] are controlling their own destiny,” Yu said. “On Instagram or Facebook, you might create content but the algorithm decides at the end of the day whether or not your audience sees it. With Vibely, they have 100% control since this is their community.” The startup is planning to make money through membership dues and in-app mechanics like social currencies and rewards.
Vibely’s moonshot goal is to be a more positive, and supportive, Discord, a platform used by gamer communities across the world. So far, Yu says that less than .1% of Vibely users have been flagged by other users, although notably would not share total user numbers. There is also an ambassador program that appoints a user to oversee a community, as well as a global community manager on the team.
“The ceiling of where [Discord] can support is really only going to be gamers,” she said. “But creators want to protect their brand right now and make sure people have a positive experience,” so they are looking for another place to set up.
Image Credits: Vibely
While moderation is apparently going well so far, Vibely will most certainly encounter problems as more and more users join its platform. In the world of challenges, craze and hype led by fanatics could potentially become harmful if someone takes it too far. While Vibely aims to be a judgement-free zone for people to connect around the world, scale has a uniquely pessimistic way of forking that from time to time. Some consumer apps have responded to this truth by aggressively hiring on-staff moderators, but that too can become grueling work.
To hit the ground running, Vibely announced today that it has raised $2 million in seed financing from backers including Steve Chen, the co-founder of YouTube; Justin Rosenstein, the co-founder of Asana and co-creator of Netflix’s “Social Dilemma” documentary; Scott Heiferman, the co-founder of Meetup; Turner Novak, formerly an investor at Gelt, and more.
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Virtual social network IMVU raises $35M from China’s NetEase and others
The line between social networking and gaming is increasingly blurring, and internet incumbents are taking notice. NetEase, the second-largest gaming company in China (behind Tencent), is among a group of investors who just backed IMVU, an avatar-focused social network operating out of California.
Menlo Park-based Structural Capital among other institutions that also joined in the strategic round totaling $35 million. IMVU has raised more than $77 million from five rounds since it was co-founded by “The Lean Startup” author Eric Ries back in 2004. The company declined to disclose its post-money valuation.
The fresh investment will be used to fund IMVU’s product development and comes fresh off a restructuring at the company. A new parent organization called Together Labs was formed to oversee its flagship platform IMVU, in which users can create virtual rooms and chat with strangers using custom avatars, a product that’s today considered by some a dating platform; a new service called Vcoin, which lets users buy, gift, earn and convert a digital asset from the IMVU platform into fiat; and other virtual services.
“NetEase operates some of the most successful, biggest in scale, and evergreen MMO [massively multiplayer online] games in China and they see in IMVU business highlights echoing theirs,” Daren Tsui, chief executive officer at Together Labs, told TechCrunch.
“IMVU operates one of the world’s oldest, yet most vibrant and young — in terms of our user base — metaverses. We have many shared business philosophies and complementary know-how. It is a natural fit for us to become partners,” he added.
Founded in 2005, NetEase is now known for its news portal, music streaming app, education products and video games that compete with those of Tencent. It has over the years made a handful of minority investments in companies outside China, though it’s not nearly as aggressive as Tencent in terms of investment pace and volume.
A NetEase spokesperson declined to comment on the investment in IMVU.
The partnership, according to Tsui, would allow the virtual networking company to tap NetEase’s game development and engineering capabilities as well as leverage NetEase’s knowledge in global market strategy as Together Labs launches future products, including one called WithMe.
In 2020, IMVU saw record growth, with over 7 million monthly active users and 400,000 products created every month by IMVU users. The service currently has a footprint in more than 140 countries and is “always looking to expand” in existing markets, including Asia, in which it already has a localized Korean app, according to Tsui.
“With IMVU’s accelerating growth over recent years, the launch of VCOIN, and the development of the new WithMe platform, we felt timing was right to bring all of these products under a new roof to reinforce our commitment for creating authentic human connections in virtual spaces,” said the chief executive.
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Bustle CEO Bryan Goldberg explains his plans for taking the company public
Bustle Digital Group — owner of Bustle, Inverse, Input, Mic and other titles — could eventually join the ranks of startups going public via a special purpose acquisition company (SPAC).
During an interview about the state of BDG and the digital media industry at the end of 2020, founder and CEO Bryan Goldberg laid out ambitious goals for the next few years.
“Where do I want to see the company in three years? I want to see three things: I want to be public, I want to see us driving a lot of profits and I want it to be a lot bigger, because we’ve consolidated a lot of other publications,” he said.
He added that those goals connect, because by going public, BDG can raise “hundreds of millions dollars,” which Goldberg wants to use to “buy a lot of media companies.”
That might seem like bluster after a year in which many digital media companies (including BDG) had to make serious cuts. But Goldberg said that the company would be profitable in 2020, with revenue that’s “a little bit under $100 million.” And it won’t be the first digital media company to take a similar route — Group Nine created a SPAC that went public last week.
“I want to prove that we can be highly profitable,” he said. “A lot of startups don’t have that goal. A lot of VCs tell their startups: Don’t worry about profits, don’t worry about losing money. I don’t believe in that.”
In addition to his plans to go public, Goldberg also discussed how acquisitions have helped Bustle’s business, his joint venture to purchase W Magazine and digital media’s “overcapitalization” problem. You can read our full conversation, edited for length and clarity, below.
TechCrunch: The last time I caught up with someone at BDG, it was with [the company’s president Jason Wagenheim] and that was when you guys were dealing with the initial fallout [from the pandemic]. Now we’re a lot further into whatever this new world is, so what is your sense of where BDG is now, versus where it was in the early days of the pandemic?
Bryan Goldberg: It might be the craziest, most eventful six months for many of us in our lives. And certainly, for those of us in this industry, the difference between April and October, it’s really hard to fathom, it’s complete night and day. April was a very frightening time for everyone, personally and professionally across the country, across the world.
From an advertising standpoint, it was a really scary time, because we have clients across every industry, and every industry was impacted differently. We have clients who were greatly impacted — theme parks, car makers, hotel companies, airlines — and then we had clients who were not as badly affected, such as a lot of CPG clients, who everybody depended upon so much during the pandemic.
There was a huge pause in our business in in March, April and May. For a lot of clients, tossing advertising was a sort of knee-jerk reaction to the sudden shock of COVID, and so we saw a huge negative impact in our second quarter. What we started to see in the third quarter, and especially now in the fourth quarter, is now that the shock of COVID is behind us, the macro trends that were catalyzed by COVID are now moving into the forefront.
The story of media is no longer about the shock of COVID. The story of media is now about all of the changes to our world, and changes to our industry that were brought about as a consequence of COVID.
The good news for our company, and the good news for other digital media companies, is it looks like the future is being accelerated. It looks like people are watching less television, and so advertisers are moving their budgets into digital faster than they would have had it not been for COVID. Even things like live sports, [their] TV ratings are way down. And a lot of advertisers are saying, “Is there efficacy anymore in cable television or broadcast television?” And the magazine industry was heavily impaired, simply because magazines are a physical medium, and people didn’t want to pass around magazines or read magazines at the dentist’s office, so we probably saw some print budget move into digital as well.
Industry analysts now are going to take up their estimates of what digital revenue is going to look like in 2021, 2022 and beyond. I also think we’ve seen a world in which a lot of brand advertisers are starting to think about what happens when they start to spend beyond Facebook and Google. For most of the last three years, there’s been so much talk about the duopoly, the idea that Facebook and Google are going to eat almost every last dollar of advertising. What we’ve seen in the last three months is advertisers saying that this needs to be the moment in which they learn how to deploy advertising spend digitally beyond Facebook or Google.
No, it doesn’t mean they’re all pulling out of Facebook — Facebook and Google are doing just fine. But there are still tens of billions of dollars that need to be deployed outside of Facebook and Google. And you’re seeing winners such as Snapchat, Pinterest. Both had incredibly strong earnings. They’re benefiting from the same thing that benefits Bustle Digital Group and a lot of other digital media players who aren’t Facebook and Google, which is you’re seeing big ad spenders finally deciding that now’s the time to find other ways to deploy advertising spend.
I think those are the two big trends: Dollars moving to digital out of TV faster than we thought, and major advertisers using now as a time to find other channels beyond Facebook and Google.
So when you look at how that is impacting Bustle’s business, has it returned to pre-COVID levels?
For us, when we reflect upon the year 2020, we see that we had a great first quarter, we see that we’re having an incredible fourth quarter, and we have a big, epic crater in the second and third quarters. So when we look at the year, we basically have to say to ourselves, if it were not for that crater in the second and third quarters, what would this year have looked like? We would have had revenue well in excess of $100 million. Now, we’re gonna have revenue a little bit under $100 million.
But when we think about how we prepare for 2021 and set goals for 2021, we have to set goals for 2021 as though COVID had never happened, we have to set goals for 2021 without using Q2 and Q3 as a sort of excuse for lowering expectations. Because the fourth quarter, the quarter we’re currently in, has exceeded our wildest expectations.
People sort of sat up and took notice of the company because you had a pretty aggressive acquisition strategy. I imagine that strategy had to change a little bit in 2020. To what extent do you feel that ambition is something that you can pick up again?
So to be clear, not only do we feel great about our strategy, our strategy was critical in helping our company survive and ultimately thrive in the wake of the virus. You know, we made two acquisitions [in 2019] — in the science and technology category, we bought Inverse, which is a science and technology publication, and then Josh Topolsky launched a tech-and-gadget publication for us called Input Magazine that’s growing very quickly.
It’s critical that we had that strategy, because no single advertiser category has performed better for us in 2020 than tech — we more than tripled our revenue from technology clients this year, because technology has thrived through COVID. Had we not had an acquisition strategy, had we not diversified into tech media publishing, we certainly would not have had the outcome we had in 2020. That’s just the reality.
Categories like beauty, fashion, retail were very hard hit. Those have traditionally been our bread and butter, and they’re going to be great again, in 2021. But this spring, beauty companies weren’t doing so well, because people weren’t leaving the house. So the strategy worked, in part, because we diversified the categories in which we created content, which allowed us to diversify the advertiser base. And we’re gonna continue full speed ahead in 2021.
Now, you know, we did six acquisitions in 2019. I don’t know if we’ll do six acquisitions in 2021. But I want to do a lot more than one acquisition in 2021.
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Daily Crunch: WhatsApp responds to privacy backlash
WhatsApp delays enforcement of a controversial privacy change, Apple may get rid of the Touch Bar in future MacBooks and Bumble files to go public. This is your Daily Crunch for January 15, 2021.
The big story: WhatsApp responds to privacy backlash
Earlier this month, WhatsApp sent users a notification asking them to consent to sharing some of their personal data — such as phone number and location — with Facebook (which owns WhatsApp). The alert also said users would have to agree to the terms by February 8 if they wanted to continue using the app.
This change prompted legal threats and an investigation from the Turkish government. Now the company is pushing the enforcement date back three months.
“No one will have their account suspended or deleted on February 8. We’re also going to do a lot more to clear up the misinformation around how privacy and security works on WhatsApp,” the company said in a post. “We’ll then go to people gradually to review the policy at their own pace before new business options are available on May 15.”
The tech giants
Uber planning to spin out Postmates’ delivery robot arm — Postmates X is seeking investors in its bid to become a separate company.
Apple said to be planning new 14- and 16-inch MacBook Pros with MagSafe and Apple processors — This could be the end for the Touch Bar.
Amazon’s newest product lets companies build their own Alexa assistant for cars, apps and video games — Yes, that means your next car could have two Alexas.
Startups, funding and venture capital
Bumble files to go public — The company plans to list on the Nasdaq stock exchange, using the ticker symbol “BMBL.”
Tracy Chou launches Block Party to combat online harassment and abuse — Currently available for Twitter, Block Party helps people filter out the content they don’t want to see.
Everlywell raises $75M from HealthQuest Capital following its recent $175M Series D round — Everlywell develops at-home testing kits for a range of health concerns, and it added a COVID-19 home collection test kit last year.
Advice and analysis from Extra Crunch
Fifteen steps to fundraising a new VC or private equity fund — Launching is easy; fundraising is harder.
Lessons from Top Hat’s acquisition spree — The acquisition of Fountainhead Press marks Top Hat’s third purchase of a publishing company in the past 12 months.
Twilio CEO Jeff Lawson says wisdom lies with your developers — Takeaways from Lawson’s new book “Ask Your Developer.”
(Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)
Everything else
Video game spending increased 27% in 2020 — According to the latest figures from NPD, spending on gaming hardware, software and accessories was up 25% in December and 27% for the full year.
DOT evaluated 11 GPS replacements and found only one that worked across use cases — The government wants to create additional redundancy and resiliency in the sector.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.
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Yelp will show user feedback about businesses’ health and safety practices
Moving forward, Yelp users won’t just be asked whether a business has good food or accepts credit cards — the platform is also allowing them to share feedback on whether the staff is wearing masks and enforcing social distancing.
Yelp’s head of consumer product, Akhil Kuduvalli Ramesh, suggested that this is the next phase of how the company is trying to help local businesses, after allowing them to highlight virtual services, manage their waitlists in accordance with new regulations and indicate the health and safety measures that they’re taking.
Of course, it’s one thing to see that a business claims to have strict mask-wearing and social distancing procedures, and another to hear other customers confirm that it’s true (or not). So Ramesh said it’s less about warning users away from certain businesses and more working “to continue to instill confidence in consumers to continue to connect with and support local businesses.”
When users visit a business profile they’ll now be asked whether social distancing was enforced and whether the staff wore masks — Ramesh said other health and safety questions could be added in the future (and users can offer slightly more detailed feedback on safety measures by hitting the Edit button in a profile), but those are the ones that users seem to care about most.
Image Credits: Yelp
When Yelp receives enough answers to offer present meaningful data (the company, understandably, isn’t disclosing the exact threshold), it will add a message in the health and safety section of the profile: “Social distancing enforced according to most users” with a green checkmark, or “Social distancing might not be enforced according to most users” with an orange question mark, with similar messages for mask-wearing.
In cases where the responses are mixed, but there’s still “significant” feedback indicating that these practices aren’t followed, the message will be attributed to “some users” instead.
Ramesh said that Yelp has already been collecting this user feedback, and at launch, only “a couple hundred” of the millions of businesses on Yelp will be marked with an orange label, “which also means that many businesses are doing the right thing.”
Image Credits: Yelp
He noted that in cases of multi-location businesses, the health and safety data will be specific to each location. Also, the labels will be based on feedback from the past 28 days — so if a business gets an orange label but starts doing better, their profile should eventually be updated to reflect that.
In addition, Yelp says it’s adding new service offerings and safety measures that businesses can include on their profiles, including checking staff for symptoms, disposable or contactless menus, heated outdoor seating and covered outdoor seating.
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Snap acquires location data startup StreetCred
Snapchat’s parent company Snap has acquired StreetCred, a New York City startup building a platform for location data.
Snap confirmed the news to TechCrunch and said the acquisition will result in four StreetCred team members — including co-founders Randy Meech and Diana Shkolnikov — joining the company, where they’ll be working on map and location-related products.
A big component of that strategy is the Snap Map, which allows users to view public snaps from a given area and to share their location with friends. Last summer, the Snap Map was added to Snapchat’s main navigation bar, and the company announced that the product was reaching 200 million users every month.
At the same time, Snapchat has been adding other products that tie into a user’s locations, such as Local Lenses, which allow developers to create geography-specific augmented reality lenses that interact with physical locations.
Meech and Shkolnikov should be bringing plenty of mapping experience to Snap — Meech was formerly CEO at Samsung’s open mapping subsidiary Mapzen, and before that the senior vice president of local and mapping products at TechCrunch’s parent company AOL (subsequently rebranded as Verizon Media). Shkolnikov, meanwhile, is the former engineering director at Mapzen.
StreetCred had raised $1 million in seed funding from Bowery Capital and Notation Capital. When I spoke to Meech in 2018, he said his goal was to “open up and decentralize” location data by building a blockchain-based marketplace where users are rewarded for helping to collect that data.
While the financial terms of the acquisition were not disclosed, the existing StreetCred platform will be shut down as part of the deal.
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