Wearables

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Movado Group acquires watch startup MVMT

The Movado Group, which sells multiple brands, including Lacoste, Tommy Hilfiger and Hugo Boss, has purchased MVMT, a small watch company founded by Jacob Kassan and Kramer LaPlante in 2013. The company, which advertised heavily on Facebook, logged $71 million in revenue in 2017. Movado purchased the company for $100 million.

“The acquisition of MVMT will provide us greater access to millennials and advances our Digital Center of Excellence initiative with the addition of a powerful brand managed by a successful team of highly creative, passionate and talented individuals,” Movado Chief Executive Efraim Grinberg said.

MVMT makes simple watches for the millennial market in the vein of Fossil or Daniel Wellington. However, the company carved out a niche by advertising heavily on social media and being one of the first microbrands with a solid online presence.

“It provides an opportunity to Movado Group’s portfolio as MVMT continues to cross-sell products within its existing portfolio, expand product offerings within its core categories of watches, sunglasses and accessories, and grow its presence in new markets through its direct-to-consumer and wholesale business,” said Grinberg.

MVMT is well-known as a “fashion brand,” namely a brand that sells cheaper quartz watches that are sold on style versus complexity or cost. Their pieces include standard three-handed models and newer quartz chronographs.

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Shoe startups aren’t dragging their feet

Good thing Carrie Bradshaw, the shoe-loving heroine of Sex and the City, wasn’t a footwear venture capitalist. The high-heeled, high-priced and hard-to-walk-in pairs beloved by the TV icon are pretty much the least fundable concept in the shoe startup space lately.

Instead, when they do dip their toe in the footwear space, venture investors have been putting a premium on comfort.

At least that’s what recent funding records indicate. Over the past year-and-a-half, investors have tied up roughly $170 million in an assortment of shoe-related startups, according to an analysis of Crunchbase data. The vast majority is going to sellers and designers of footwear that people might actually want to walk in.

Top funding recipients are a varied bunch, including everything from used sneaker marketplaces to high-end designers to toddler play shoes. Startups are also experimenting with little-used materials, turning used plastic bottles, merino wool and other substances into chic wearables.

Below, we look at how startups are leveraging market trends to get a foot in the door.

Growth market

It should be noted that recent footwear funding activity comes on the heels of some positive developments for the shoe industry.

First, this is a huge and growing industry. One recent report pegged the global footwear market at $246 billion in 2017, with annual growth rates of around 4.5 percent.

Second, public markets are strong. Shares of the world’s most valuable footwear company — Nike — have climbed more than 50 percent over the past nine months to reach a market cap of nearly $130 billion. Stocks of several smaller rivals, including Adidas, have also performed well.

Third, men are spending more on footwear. Though they’ve long been stereotyped as the gender with more restrained shoe-buying habits, men are putting more money into footwear and could be on track to close the spending gap.

Sneakering in

Both men and women are spending more on sneakers, and venture capitalists have taken notice. Sneakers and sneaker-related businesses account for the majority of footwear startup funding, as consumers increasingly opt for more casual, sportier styles.

Much of the innovation is in the sale and design of pricey, high-performance shoes. The largest footwear-focused round in recent months, for instance, went to GOAT, operator of an online sneaker marketplace that specializes in rare and high-end shoes. The three-year-old, Los Angeles-based company secured a $60 million Series C in February.

Other sneaker companies to raise funding recently include StockX, an auction-style GOAT competitor; Stadium Goods, a streetwear retailer; and Super Heroic, which makes high-performance athletic shoes for children.

The spike in sneaker funding comes amid a growth streak for the sector. As mentioned previously, much of that is driven by men. However, one other bullish sneaker trend footwear analysts point to is the changing buying habits of women. Driven perhaps by a desire to walk more than a few blocks without being in pain, we’re buying fewer high heels and more sneakers.

Stylish and eco-friendly

Demand for more comfortable footwear doesn’t only translate into more sneaker sales. Venture investors also see potential in other comfy shoe startups, particularly those with eco-friendly options.

In this camp is Allbirds, a maker of merino wool shoes in casual styles that has raised more than $27 million to date. Meanwhile, Rothy’s, which makes shoes out of recycled plastic bottles and sells them for around $125 a pair, has brought in $7 million.

Slippers are also a fundable space, as evidenced by the $2 million seed round last fall for Birdies, a maker of footwear for people who want to pad around the house in slippers while also looking stylish.

And as previously noted, it doesn’t look like high heel-focused startups have been kicking up a lot of capital lately. However, designers that offer varied heel heights are still scoring some big rounds. This category includes Tamara Mellon, a two-year-old brand that has raised more than $40 million to scale up a shoe design portfolio that runs the gamut from flats to spike heels.

But does it make money?

Recent history shows you can make a good exit with a shoe startup. And you can also flop or stagnate.

One of the more noticeable recent flops was Vancouver-based Shoes.com, an online shoe retailer that shuttered last year and filed for bankruptcy following disappointing sales.

Others found they weren’t as good a fit for today’s consumers as hoped. Most recently, Shoes of Prey, a made-to-order women’s shoe startup that raised more than $25 million, secured a small bridge round to keep operations afloat. A few years earlier, ShoeDazzle, a celebrity-backed shoe subscription service with more than $60 million in funding, sold at a steep markdown.

Meanwhile, developers of 3D printing and scanning technology are stepping up the pace of M&A. In April, Nike snapped up Invertex, a seed-funded startup that specialized in 3D foot-scanning. Last year, Aetrex Worldwide, a leading maker of therapeutic footwear, bought  Sols, a venture-backed maker of 3D-printed custom orthotics and insoles.

Granted, it’s hard to imagine an episode about Carrie Bradshaw shelling out for custom orthotics. But in the exit-driven world of startup financing, it seems clear that Manolo Blahniks are out, while sneakers and insoles are in.

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SpeakSee makes it simple for a deaf person to join a group conversation

There’s a great deal of activity in the fields of speech recognition and the “Internet of Things,” but one natural application of the two has gone relatively unpursued: helping the deaf and hard of hearing take part in everyday conversations. SpeakSee aims to do this (after crowdfunding, naturally) with a clever hardware design that minimizes setup friction and lets everyone communicate naturally.

It’s meant to be used in situations where someone hard of hearing needs to talk with a handful of others — a meeting, a chat at dinner, asking directions and so on. There are speech-to-text apps out there that can transcribe what someone is saying, but they’re not really suited to the purpose.

“Many deaf people experienced a huge barrier in asking people to download the app and hold the phone close to their mouth. These limitations in the interface meant no one kept using it,” explained SpeakSee CEO and co-founder Jari Hazelebach. “But because we designed our own hardware, we were able to customize it towards the situations it will be used in.”

SpeakSee is simple to use: A set of clip-on microphones live in a little charger case, and when the user wants to have a conversation, they hand those microphones out to whoever will be talking. The case acts as a wireless hub for the mics and relays the audio to the smartphone with which it’s paired. This audio is sent off, transcribed quickly somewhere in the cloud, and displayed on the deaf user’s phone.

Critically, though, each microphone also intelligently and locally accounts for its speaker and background noise.

“Naturally the microphones pick up speech from multiple people,” said Hazelebach. “So we included sensors that tell the microphone what direction the sound is coming from, and the microphones exchange these values. So we can determine which microphone should pick up which person’s speech.”

The result is quickly transcribed speech divided by speaker, delivered quickly and with decent accuracy (there’s always a trade-off between turnaround time and how the process is). And no one has to do anything but wear a mic. (They have a patent pending for this multi-microphone system.)

Hazelebach’s parents are deaf, and he grew up seeing how their ability to interact in ordinary circumstances was being limited.

The mics aren’t exactly small… but that’s how you know they’re real working hardware and not imaginary.

“As you can imagine my parents were the first to test this out,” he said. “At first we had a lot of issues but soon we started engaging with others. We wrote a post on a deaf blog and out of nowhere 200 people signed up. So we’ve been testing in the field with groups in the U.S., and also in the U.K. and the Netherlands.”

Right now English speech recognition is considerably ahead of Dutch and other languages, so the transcriptions will be better for the former, but even so the devices should work with any of 120 languages supported by the cloud service. Transcription is free for up to 5 hours of audio monthly, after which it’s a $10/month subscription. But if it works, it may be more than worth the money.

The team has a finished prototype but is seeking crowdfunding to get production off the ground. “We need to improve the electronics to meet specifications, battery life for example. We expect to ship in February of 2019,” Hazelebach said. Pre-orders are set at $350 for a dock and three mics.

The usual caveats (primarily “emptor”) apply when backing an Indiegogo type campaign — but at the very least, having spoken to the creator, I feel pretty sure this is a real, working product that just needs a boost to get to market.

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Meet Atoms, the minimalist startup shoes you’ll actually wear

Step aside, Allbirds. Atoms come in quarter-sizes you can mix-and-match. Emerging from stealth today in a TechCrunch exclusive, this shoe startup’s obsession with satisfaction allowed it to replace my Nikes. I’ve spent the last two months wearing Atoms every day. They’re the first sneaker classy-looking enough for semi-formal occasions, but that I can comfortably walk or even hike in for hours.

Here’s how Atoms is modernizing the footwear experience:

  • Pick your quarter-size, say 10.25, and Atoms sends you 10s, 10.25s, and 10.5s, plus socks
  • Try them on and pick any two, even different sizes for different feet, and send the rest back free
  • No logos. Atoms come in jet black, pure white or black top/white bottom, but don’t stick an ad on your feet
  • Copper threads inside eat bacteria, preventing funky smells
  • Elastic laces with subtle oval eyelets let Atoms slip on but stay tight so you rarely have to tie them
  • Get a discount on your next pair if you send in your old Atoms for analysis and donation

Image via Jeff Macke

At $179, Atoms are pricier than $100 lifestyle Nikes or $79 Allbirds. But the basketball shoe giant just sells in half sizes, while Allbirds offers only whole sizes that fit few perfectly. The right quarter-size Atoms for each foot makes them feel molded to your body.

“To make shoes better, you need to know why people wear shoes,” Atoms co-founder Waqas Ali tells me. People buy fancy dress shoes they never wear, yet feel embarrassed by the childish designs and branding on most sneakers. We perfected Atoms for your everyday routine — walking, standing and commuting,” he explains. “You are a person not a billboard, so there’s no logo.”

That hasn’t stopped the shoes from going viral during their beta-testing phase. Everyone who tries them on seems to rave about them. That’s driven 4,000 people to sign up on the Atoms waitlist, which you can join to be first in line. Atoms launch this summer in the U.S., with the first wave of customers getting their shoes in late June/early July.

The big bang

Husband and wife duo Waqas and Sidra Ali started their first shoe company Markhor in Okara, Pakistan back in 2012. They attacked the market with one of the best qualities you can find in an entrepreneur: curiosity. Instead of coming in with preconceived notions, they traveled the world to research how people actually wear shoes. “You might assume that ‘Oh in Italy, everyone wears leather shoes,’ but the young people there were all wearing sneakers,” Waqas recalls.

After launching a Kickstarter, the Alis came to Silicon Valley to go through the prestigious Y Combinator startup accelerator in Summer 2015. There, they drilled into more customer research and product design.

Comfort and style were the big deciding factors in most sneaker purchases, so that’s where the couple wanted to differentiate. They discovered that more than 70 percent of people have at least a quarter-size difference in their two feet, and more than 7 percent have a half-size discrepancy. So why don’t other shoe companies offer quarter-sizes? “They make tons of different shoes,” Waqas says.

Suddenly, the two guiding principles of Atoms aligned. By designing just a single unisex model in a limited set of colors, it could make quarter-sizing scalable while stripping away all the goofy extra fabrics and patterns. Indeed, 35 percent of customers already take two different sizes. That breakthrough attracted $560,000 in seed funding from LinkedIn’s ex-head of growth Aatif Awan and Shrug Capital.

But Atoms is determined to avoid being labeled a Silicon Valley shoe. Rather than coders, the company wants creative types like painters and graphic designers to be its early adopters. The vision is to create a sneaker a head chef could wear all night in the kitchen without hurting, but that look elegant enough that they could stride into the chic dining room with confidence.

The future of footwear

“Most shoes in the market that claim they’re comfortable are only comfortable when you try them on,” Waqas laments. Take that other shoe startup Allbirds. They’re super-soft and made of wool, and the first steps feel like you’re wearing cloud slippers. But walk 10 blocks and you’ll find the bendy bottoms don’t protect you much.

That’s why Atoms hired 18-year-veteran of the shoe business Sangmin Lee, who’s worked with Adidas and Puma out of Portland and South Korea. He prototyped tons of different versions for Atoms. The result is a strong but light outsole on the bottom with indents cut out for anti-slip traction and to reduce weight. Meanwhile, the upper’s tough mesh material breathes but holds its shape, and refuses stains.

Image via Adam Bain

“Shoe companies say they use sustainable materials but you go to the factories and everything is falling apart,” Sidra tells me. Organic materials sound nice but can break down too quickly. “The way we make our shoes environmentally friendly is that they last long,” Waqas says with a laugh.

Two months of tough wear later, my Atoms are holding up great. The foamy mid-sole has frayed a tiny bit in the front like many shoes. And the knit materials ingrained some dust when I went camping in them that needed some brushing to get out. But they’ve succeeded in becoming my go-to shoe I can chill, work and play in.

Now Atoms is trying to build more commerce innovation to turn buyers into lifetime wearers. It’s working on a special pattern for the insole that will rub off based on where you put your weight. The idea is that when people send their old pairs in for a discount on the next, it can analyze that insole pattern to improve the shape of future models.

One day, Atoms hopes to create a completely personalized shoe shopping experience. It hopes to actually give you slightly different insoles with more or less arch support depending on how you wore the last ones. And it’s planning early access to new color combinations and laces for repeat buyers.

Atoms will need loyalty in case the shoe giants come out with their own minimalist, quarter-sized sneakers. Such a limited set of colors and single style mean plenty of people will simply find them ugly or outside their taste. And no, they’re not a great fit for the gym or with a suit. But if you want understated, durable shoes you don’t have to think about, Atoms excel.

The startup must rely on its nimbleness and a flawless customer experience if it’s going to gain a foothold in a business dominated by brands with huge ad campaigns and brick-and-mortar distribution. One thing it’s thankful to its shoe startup competitor for is that “Allbirds has shown the world is not just ruled by Nike and Adidas.”

Luckily Atoms has strong differentiation in a world of interchangeable sneakers. One customer “thought quarter-sizing was a joke or gimmick until I tried the 10.25s,” Airbnb designer Bryce Daniel tweeted. “How will I go back to a 10.5 when 10.25 fits so well?” Personally, there hasn’t been another tech or startup product in the past 10 years beyond Apple’s AirPods that has cemented itself so deeply into my daily life.

“There’s no way to hack shoes” Waqas concludes. “You just have to make a good shoes.”

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Snapchat launches Spectacles V2, camera glasses you’ll actually wear

Photos, not just video. No yellow ring alerting people to the camera. Underwater-capable. Classier colors with lighter lenses. Prescription options. Faster syncing. And a much slimmer frame and charging case. Snapchat fixed the biggest pain points of its Spectacles camera sunglasses with V2, which launch today for $150. The company only sold 220,000 pairs of V1, with their limited functionality, tricky exports and goofy hues. But V2 is stylish, convenient and useful enough to keep handy. They’re not revolutionary. They’re a wearable camera for everybody. 

You can check out our snazzy hands-on demo video below:

The new Spectacles go on sale today in the U.S., Canada, U.K. and France, then in 13 more European countries on May 3. The $150 V2s are $20 more than the old version and only available on Snap’s app and site — no Amazon, pop-up stores or vending SnapBots. And V1 owners will get a firmware update that lets them take photos.

After two days of use, I think Spectacles V2 cross the threshold from clumsy novelty to creative tool accessible to the mainstream. And amidst user growth struggles, that’s what Snap needs right now.  

V1 was to get people comfortable

What Snap doesn’t need is a privacy scandal, and that risk is the trade-off it’s making with its more discreet Spectacles design. They still display a little circle of white lights while recording, but with the permanent yellow ring on the corner removed, you might not notice there’s a camera lens there. That could make people a little nervous and creeped out.

But the company’s VP of hardware Mark Randall tells me he thinks the true purpose of V1 was to get people comfortable wearing and being recorded by a face computer. It certainly wasn’t a consumer success, with less than half of owners using them after the first month. He said he feels pretty good about shipping 220,000 pairs. Yet Snapchat was roundly mocked for taking a $40 million write-off after making hundreds of thousands too many. Randall attributes that to having fragmented sales channels, which Snap is fixing by only selling V2 itself so it can better predict demand.

Snap did learn that users wanted to take photos, get them in less flashy coral colors, bring Spectacles to the beach, pair them quicker with better resolution exports and hear less wind noise when moving. And most importantly, they wanted something they didn’t feel weird wearing. So Randall’s team essentially scrapped the yellow warning ring, style, architecture, chipset and electronics to build a better V2 from the ground up. The result rises high above its predecessor.

The specs of Spectacles V2

Snapchat isn’t making a spectacle out of the Spectacles V2 launch. There’s no hidden vending machines with cryptic clues leading to long lines. They’re openly for sale today in Snap’s four top markets, with IE, BE, NL, SE, NO, DK, FI, DE, AT, CH, PL, ES and IT coming next week. This might make sure everyone who wants them can have them before they inevitably stop being trendy and will have to rely on their true value.

As soon as you slide them out of their tennis ball tube package, you’ll notice a higher build quality in Spectacles V2. The yellow case is about 1/3 smaller, so you could squeeze it in some pants pockets or easily throw it in a jacket or purse. The old version basically required a backpack. The charging port has also been moved to the side so it doesn’t fall out so easily. Even with the better hardware, Spectacles are supposed to have enough battery and memory to record and transfer 70 videos over a week on a normal charge, plus carry four extra charges in the case.

The Spectacles themselves feel sleeker and less like chunky plastic. They come in onyx black, ruby red and sapphire blue and you can choose between a more mirrored or natural lens color too. Users in the U.S. can order them with prescription lenses through Lensabl. Those colors are a lot more mature than the childish coral pink and teal of V1. More transparent lenses make them easier to use in lower light, so you won’t be restricted to just the sunniest days, though they’re still UVA and UVB rated. I could even get by inside to some degree, whereas I was bumping into things indoors with V1.

The box holding the hardware on the hinges is now much smaller, making them lighter and shallower overall. An extra microphone helps Spectacles reduce wind noise and balance out conversations so the wearer doesn’t sound way louder.

It’s easy to long-press for a photo or tap for 10-second video, with extra taps extending the clip up to 30 seconds. Either fires up the light ring to let people know you’re recording, but this is much more subtle than the permanent yellow ring that was there on V1. You can only add stickers and drawings after you shoot and export your Spectacles Snaps, so that means there’s no adding augmented reality face filters or dancing hot dogs to what you see first-person.

Syncing goes much faster with Spectacles V2

Snap Inc. actually reduced the field of vision for Spectacles from 115 to 105 degrees to cut off some of the fish-eye warping that happened to the edges of clips shot on V1. Videos now record in 1216 x 1216 pixels, while photos are 1642 x 1642. What’s fun is that Spectacles can record under water. Randall doesn’t recommend diving to 200 feet with them, but jumping in the pool or getting caught in the rain will be no problem. In fact, it can make for some pretty trippy visuals. Cheddar’s Alex Heath nailed most of these features in a scoop about V2 last month.

Syncing to your phone now just requires Bluetooth and a seven-second press of the shutter button, rather than a shoddy QR code scan. Exports always happens in HD over Specs’ internal Wi-Fi now, and transfers go four times quicker than the old process that required you to sync standard definition (low-quality) versions of videos first, then pick your favorites, then download them in HD. Randall says that led lots of people to accidentally or impatiently settle for SD content, which made Spectacles’ capture resolution seem much lower than its potential.

Unfortunately, Snapchat is what’s holding Spectacles back. You can only sync your Spectacles to Snapchat Memories first before exporting videos individually or as one big Story to your camera roll. That makes it a pain to share them elsewhere. If Snap wants to be a hardware giant, it can’t just build accompaniments to its own app. It needs to catch the attention of all kinds of photographers, not just those who already love Snapchat. I do wish they could share directly to Instagram, and barring that is a weighty strategy choice.

What really matters, though, is the how the incremental improvements all add up to something much more livable.

Keeping Snapchat spectacular

Snapchat may have finally found a way to make Spectacles carryable and wearable enough that people use them as their default sunglasses. That could lead to way more content being produced from Spectacles, which in turn could make Snapchat more interesting at a time when it’s desperate to differentiate from Instagram with something tough to copy.

Randall says Snap is just starting to reach out to professional creators, who could prove to people how fun Spectacles could be. Snap neglected them last time around and ended up with few pieces of flagship Spectacles content. This time, though, Snap will focus on showing off what Spectacles can shoot rather than just how they look on your face. It’s even going to run its own in-app ads promoting Spectacles that will let you swipe up to buy them instantly.

Snap Inc. calls itself a camera company, but beyond software, that wasn’t really true until now. It could be a half-decade before we have AR goggles for the masses, and Snap can’t wait around for that. V2 is a solid step forward, and Randall says Snap is committed to a long road of hardware releases.

Getting tons of its cash-strapped teens to buy the gadget may prove difficult again, but I at least expect V2s won’t end up dying alone in a drawer as often. These glasses aren’t going to turn around Snapchat’s business, which lost $443 million last quarter. And they probably won’t win over any Instagram loyalists. But Spectacles V2 could rekindle the interest of lapsed users while producing unique points of view to entertain those who never left. And if they don’t sell well, Snap at least is working the kinks out of its hardware iteration process that could pave the way for a killer product in the future.

The startup was always about communicating visually, and what better way than to lend someone your perspective of the world. Snap may have broken the Google Glass curse.

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Bump is a peer-to-peer marketplace for streetwear

 As the streetwear and sneaker industry continues to explode in popularity, we’re seeing more and more startups popping up to service the industry — all from slightly different angles. Meet Bump, a peer-to-peer take on a streetwear marketplace. Founded six months ago in the U.K. and now part of Y Combinator’s Winter ’18 batch, the startup already has more than 200,000 users. Read More

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Nike’s PG2 light-up sneakers are for PlayStation fanatics

 Gamers worldwide! Nike, PlayStation and Oklahoma Thunder player Paul George have a shoe in the works that may be right up your alley. The PG2, the second generation of Paul George’s signature shoes, is themed around the PlayStation console, complete with tongues that light up. Buttons inside the tongues let the owner turn on and off those lights, shaped in the PlayStation logo and PG logo. Read More

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Nuheara’s voice amplifying earbuds offer customizable hearing profiles

 Nuheara’s new IQBuds Boost headphones exist in a a strange sort of in-between spot. Like the rest of the company’s line, they’re clearly one of countless devices looking to compete in the crowded world of bluetooth earbuds. Like the standard IQBuds before them, however, they’re also designed to boost hearing. But the Boosts are an attempt to be even more, offering… Read More

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Blocks hopes to court enterprise customers with its modular smartwatch

 As we noted earlier this week, the mere fact that Blocks was able to bring its modular smartwatch system to market feels like a minor miracle. The company appears to have not taken the easy route in any respect. It could have launched an Android Wear device, but instead opted to skin a scaled down version of stock Android. And then there’s the modules — the company compares… Read More

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