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FB Messenger chief Stan Chudnovsky is coming to Disrupt

Stan Chudnovsky last spoke at Disrupt in 2016, so we’ve got a lot to catch up on.

Chudnovsky remains in charge of Facebook Messenger — his current title is VP of Messenger — so he can tell us more about how the product has evolved at this year’s Disrupt 2020 on September 14-18.

One of the biggest changes has been the launch of Messenger Rooms, a service that allows you to start and join video calls from within Facebook or Messenger (and eventually other Facebook products). The product’s appeal is pretty easy to see in a time of social distancing, but Facebook still has a long way to go if it wants to challenge Zoom.

Meanwhile, we’ve also seen increasing scrutiny about the role that messaging apps can play in spreading hate speech and misinformation. Among Facebook’s apps, WhatsApp has struggled the most visibly with these issues, but Messenger has also been adding tools to help people share accurate information about the COVID-19 pandemic.

On top of all that, we can get general updates on how FB Messenger has been doing during the pandemic, and what the big priorities are moving forward. Chudnovsky might also have some thoughts to share on the messaging landscape, and on the startup world — after all, before joining Facebook, he co-founded startups including Jiff, NFX, Ooga Labs and Wonderhill.

Learn more about the future of messaging at our all-virtual Disrupt 2020, which runs from September 14-18. Get your front row seat to see this panel live with a Disrupt Digital Pro Pass or a Digital Startup Alley Exhibitor Package. We’re excited to see you there.

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WhatsApp Business, now with 50M MAUs, adds QR codes and catalog sharing

The global COVID-19 health pandemic has raised the stakes for businesses when it comes to using digital channels to connect with customers, and today WhatsApp unveiled its latest tools to help businesses use its platform to do just that.

The Facebook-owned messaging behemoth is expanding the reach and use of QR codes to let customers easily connect with businesses on the platform, providing them also with a series of stickers (pictured below) to kick off “we’re open for business” campaigns; and it’s made it possible for businesses to start sharing WhatsApp-based catalogs — dynamic lists of items that can in turn be ordered by users — as links outside of the WhatsApp platform itself.

The new launches come as WhatsApp’s business efforts pass some significant milestones.

WhatsApps’ profile as a formal platform for doing business is growing, albeit slowly. The WhatsApp Business app — used by merchants to interface with customers over WhatsApp and use the platform to market themselves — now has 50 million monthly active users, according to Facebook. Its two biggest markets for the service are India at over 15 million MAUs and Brazil at over 5 million MAUs, while catalogs specifically have had 40 million viewers.

On the other hand, WhatsApp has hit some stumbling blocks with features it’s tried to put into place to grow those numbers faster and boost usage among businesses.

Specifically, last month WhatsApp launched payments in Brazil, its first market, aimed not just at users sending each other money but merchants selling goods and services over the platform. But just nine days later, Brazilian regulators blocked the service over competition concerns, and it has yet to be restored pending further review. (India, which many had thought would be the first market for payments, is now part of a bigger global roadmap for rolling out payments.)

To put WhatsApp Business app’s usage numbers into some context, WhatsApp itself passed 2 billion users in February of this year. In that regard, hitting 50 million MAUs of the WhatsApp business app in the two years since it’s launched doesn’t sound like a whole lot (and in particular considering that it has competitors like Google offering payment services to merchants). Still, there has always been a lot of informal usage of the app, especially by smaller merchants, and that speaks to monetising potential if they can be lured into more of WhatsApps’ — and Facebook’s — products.

All the more reason that Facebook is expanding other features to make WhatsApp more useful for businesses, and especially smaller businesses — capitalising on a moment when many of them are turning to numerous digital channels (some for the first time ever) like social media, messaging services, websites and third-party delivery platforms to get their products and services out to the masses, in a period when visiting physical storefronts has been severely curtailed because of the health pandemic.

QR codes got a little boost last week from WhatsApp on the consumer side, with the company introducing a way for contacts to swap details for the first time by sharing codes rather than manually entering phone numbers — not unlike Snap Codes and shortcuts for adding contacts created on other social apps. That is now getting the business treatment.

Now, if you need to reach a business for customer support, to ask a question or order something, instead of manually entering a business phone number, you can scan a QR code from a receipt, a business display at the storefront, a product or even posted on the web, in order to connect with the company. Businesses that are using these can also set up welcome messages to start conversations once they’ve been added by a user. (They will have to use the WhatsApp Business app or the WhatsApp Business API to do this, of course.)

The catalog sharing feature, meanwhile, is an expansion on a feature that the company first launched in November 2019, which will now allow businesses to create and share links to their catalogs to post elsewhere. To be frank, the lack of ability to share catalogs at launch felt like a feature omission, considering that businesses often use multiple channels to market themselves, although it might have been an intentional move: there has long been questions about how tight links are between Facebook and WhatsApp, so slowly introducing features that share and cross-market from the start might be the preferred route for the company.

The idea now will be that those links can now be shared on Facebook, Instagram and other places.

Although all of these services, and WhatsApp Business, remain free to use, they continue to lay the groundwork for how Facebook might monetise the features in the future, not least through payments but also through stronger pushes to advertise on Facebook, now with more ways of linking a company’s WhatsApp profile to those ads.

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Daily Crunch: WhatsApp launches payments

WhatsApp is adding support for in-app payments, Apple is upgrading the MacBook Pro and Mac Pro desktop and we argue about the future of startup hubs.

Here’s your Daily Crunch for June 15, 2020.

1. WhatsApp finally launches payments, starting in Brazil

After months of talks and trials, WhatsApp has finally pulled the trigger on payments. Users in Brazil will be the first to be able to send and receive money through the messaging app, using Facebook Pay.

WhatsApp says that the payments service — which currently is free for consumers to use, but comes with a 3.99% processing fee for businesses receiving payments — will work by way of a six-digit PIN or fingerprint to complete transactions.

2. Apple adds new MacBook Pro graphics option and Mac Pro SSD upgrade kit

A week before kicking off WWDC, Apple introduced a pair of upgrades to its pro-level hardware lines. Both the 16-inch MacBook Pro and the Mac Pro desktop are getting select internal upgrades, starting today.

3. 3 perspectives on the future of SF and NYC as startup hubs

Three TechCrunch writers address one of the big questions about the future: Will tech continue to centralize in hubs like San Francisco and New York City, or will remote work and all the other second-order effects lead to a more decentralized startup ecosystem? (Extra Crunch membership required.)

4. Interstellar Technologies’ privately developed MOMO-5 rocket falls short of reaching space

The company first launched a vehicle in 2017, but the launch didn’t go exactly as planned and failed to reach space. In 2019, its MOMO-3 sounding rocket did break the Karman line, though just barely, and unfortunately its MOMO-5 sounding rocket launched over the weekend did not make space, as planned.

5. Introducing The Exchange, your daily dive into the private markets

The Exchange is Alex Wilhelm’s regular dive into the financial side of the startup world, and how the public markets exert gravity (or lift) on private companies. These themes might sound familiar to Daily Crunch readers, since we’ve linked to plenty of Alex’s pieces, but now it’s an official column with an official name.

6. Tesla’s US-made Model 3 vehicles now come equipped with wireless charging and USB-C ports

Tesla Model 3 vehicles produced at its Fremont, Calif. factory will reportedly come standard with a wireless charging pad and USB-C ports, upgrades that were first spotted by Drive Tesla Canada.

7. This week’s TechCrunch podcasts

The latest full-length episode of Equity discusses Facebook’s new startup venture fund, while the Monday news roundup covers the latest problems at Quibi. Over at Original Content, we review the latest season of “Queer Eye.”

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 9am Pacific, you can subscribe here.

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Sinch to buy India’s ACL Mobile for $70 million

Sinch said on Monday it has agreed to buy Indian firm ACL Mobile for £56 million (roughly $70 million) in what is the fourth acquisition deal the Swedish mobile voice and messaging firm has entered into at the height of a global pandemic.

The Swedish firm said acquiring ACL Mobile will enable it to leverage the Indian firm’s connections with local mobile operators in the world’s second largest internet market, as well as in Malaysia and UAE, to expand its end-to-end connectivity without working with a third-party firm.

Twenty-year-old ACL Mobile, which has headquarters in Delhi, Dubai and Kuala Lumpur, enables businesses to interact with their customers through SMS, email, WhatsApp and other channels. In a press statement, the Indian firm said it serves more than 500 enterprise customers, including Flipkart, OLX, MakeMyTrip, HDFC Bank and ICICI Bank.

“With ACL we gain critical scale in the world’s second-largest mobile market. We gain customers, expertise and technology and we further strengthen our global messaging product for discerning businesses with global needs,” said Sinch chief executive Oscar Werner.

The Indian firm, which employs 288 people, reported gross profits of $14.2 million on sales of about $65 million in the financial year that ended in March. During the same period, ACL Mobile claims it delivered 47 billion messages on behalf of its enterprise customers.

“Although the long-term growth outlook is favorable, lower commercial activity in India due to the COVID-19 pandemic means that the near-term growth outlook is less predictable,” Sinch said of ACL Mobile’s future outlook.

ACL Mobile is the fourth acquisition Sinch has unveiled since March this year. Last month the company said it was buying SAP’s Digital Interconnect for $250 million. In March, it announced deals to buy Wavy and Chatlayer.

Sinch, founded in 2008, employs more than 700 people in over 40 locations worldwide and is increasingly expanding to more markets. Last month it said acquiring SAP’s Digital Interconnect will help it expand in the U.S. market. The company says it is profitable.

“Together with Sinch we are scaling up to become one of the leading global players in our industry. I’m excited about this next chapter and the many new opportunities that we can pursue together,” said Sanjay K Goyal, founder and chief executive of ACL Mobile.

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Why VCs say they’re open for business, even if they’re pausing new deals

This week Alexia Bonatsos of Dream Machine and Niko Bonatsos of General Catalyst swung by Extra Crunch Live to discuss where they are investing today and what the future might look like.

As expected, these seed and early-stage venture capitalists had a lot to say about their current investing cadence and what interests them in the world of edtech, Clubhouse and more. A big thanks to everyone who came out and submitted some great questions.

Going back through the chat today, a few sections jumped out. For this recap, I’ve gathered answers from the transcript regarding today’s fundraising climate, the future of AI and the possible impact of the downturn on VC-backed founder diversity.

And for everyone who couldn’t join us live, I’ve included the full video replay below. (You can get access here, if you need it.)

Today’s fundraising climate

Alexia:

It’s kind of a Rashomon; depending on whose perspective you’re getting the story, is just completely different.

Let’s see, are [VCs] being as active as they were in 2018? I’m gonna say no. I mean, look at your data, your data says no. But does that mean people [have] shut down the shop and are all in Montana? Also no, right?

We know that these kinds of “crisistunities” — and I’m not diminishing the crisis at all, it is very sad and very scary, and it’s something that I’m very privileged to be able to be experiencing from inside my apartment and not from outside within an emergency room or a food bank or any other place that it’s actually at the front lines, right?

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TikTok tops 2 billion downloads

TikTok, the widely popular video sharing app developed by one of the world’s most valued startups (ByteDance), continues to grow rapidly despite suspicion from the U.S. as more people look for ways to keep themselves entertained amid the coronavirus pandemic.

The global app and its Chinese version, called Douyin, have amassed over 2 billion downloads on Google Play Store and Apple’s App Store, mobile insight firm Sensor Tower said Wednesday.

TikTok is the first app after Facebook’s marquee app, WhatsApp, Instagram and Messenger to break past the 2 billion downloads figure since January 1 of 2014, a Sensor Tower official told TechCrunch. (Sensor Tower began its app analysis on that date.)

A number of apps from Google, the developer of Android, including Gmail and YouTube, have amassed over 5 billion downloads, but they ship pre-installed on most Android smartphones and tables.

TikTok’s 2 billion download milestone, a key metric to assess an app’s growth, comes five months after it surpassed 1.5 billion downloads.

In the quarter that ended on March 31, TikTok was downloaded 315 million times — the highest number of downloads for any app in a quarter and — surpassing its previous best of 205.7 million downloads in Q4 2018. Facebook’s WhatsApp, the second most popular app by volume of downloads, amassed nearly 250 million downloads in Q1 this year, Sensor Tower told TechCrunch.

As the app gains popularity, it is also clocking more revenue. Users have spent about $456.7 million on TikTok to date, up from $175 million five months ago. Much of this spending — about 72.3% — has happened in China. Users in the United States have spent about $86.5 million on the app, making the nation the second most important market for TikTok from the revenue standpoint.

Craig Chapple, a strategist at Sensor Tower, said that not all the downloads are as organic as TikTok, which launched outside of China in 2017 and has engaged in a “large user acquisition campaign.” But he attributed some of the surge in downloads to the COVID-19 outbreak that has driven more people than ever to look for new apps.

India, TikTok’s largest international market, accounts for 30.3% of the app’s downloads, according to Sensor Tower. The app has been downloaded 611 million times in the world’s second largest internet market.

From a platform’s standpoint, 75.5% of all of TikTok’s downloads have occurred through Google Play Store. But the vast majority of spending has come from users on Apple’s ecosystem ($435.3 million of $456 million).

TikTok’s parent firm ByteDance, which was valued at $75 billion two years ago, counts Bank of China, Bank of America, Barclays Bank, Citigroup, Goldman Sachs, JP Morgan Chase, UBS, SoftBank Group, General Atlantic, and Sequoia Capital China among some of its investors.

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WhatsApp eyes credit feature for users in India

WhatsApp, which began testing its mobile payments feature in India two years ago, could offer at least one more financial service to people in its biggest market.

In a filing with the local regulator in India, the company has listed credit as one of the areas it will pursue in the country. The Facebook -owned service declared with the local regulator earlier this month providing credit or loans as one of the “main objects to be pursued by it in the country.” No other financial service is listed in the filing.

At an event in Bangalore late last year, Abhijit Bose, WhatsApp’s head in India, said he believed that the mobile payments market in India, which has attracted dozens of local and international firms in recent years, is still at a very early stage in the country and may eventually see firms move beyond just offering a way for people to send money to one another.

WhatsApp has yet to receive approval from New Delhi for a nationwide rollout of Pay in India. Local media reports claimed earlier this year that WhatsApp had started to expand Pay’s reach in the country in various phases.

Ajit Mohan, a Facebook VP and India head, told TechCrunch in an interview last week that only 1 million WhatsApp users in India, same as before, have access to its mobile payment service.

Dozens of payment services in India have expanded to credit, or online lending, in recent quarters as they search for a business model in the country. A number of firms, including Paytm, India’s most-valued startup, and MobiKwik today offer small ticket credit to millions of users in India.

Tens of millions of users have started to digitally transact money in India in recent years. But the local payments body has removed most of the fees they could levy on banks and merchants to make money. The move has resulted in firms exploring other financial services, such as credit and insurance and target merchants to make money.

This year, Paytm has expanded to serve merchants, launching new gadgets such as a stand that displays QR check-out codes that comes with a calculator and a battery pack, a portable speaker that provides voice confirmations of transactions and a point-of-sale machine with built-in scanner and printer.

The Alibaba and SoftBank-backed company is offering these gadgets as part of a subscription service that helps it establish a steady flow of revenue. Paytm’s Money arm, which offers lending, insurance and investing services, has amassed more than 3 million users.

Flipkart’s PhonePe, another major player in India’s payments market, today serves more than 175 million users and over 8 million merchants. Its app serves as a platform for other businesses to reach users. The company is currently not taking a cut for the real estate on its app.

WhatsApp’s expansion in mobile payments in India, estimated to grow to $1 trillion by 2023 (according to Credit Suisse), could create new challenges for the aforementioned players.

Facebook, which like other American tech giants counts India as one of its biggest markets but makes considerably less revenue in the world’s second largest market, “reaffirmed” its commitment to India this month.

The social giant invested $5.7 billion in Reliance Jio Platforms this month to acquire a 9.99% stake in the Indian telecom giant. Over the weekend, JioMart, an e-commerce venture run by Jio’s parent firm, began testing an “ordering system” on WhatsApp, teasing the first peek at the collaboration between Facebook and Indian telecom giant Reliance Jio Platforms.

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Facebook launches drop-in video chat Rooms to rival Houseparty

Facebook is co-opting some of the top video chat innovations like Zoom’s gallery view for large groups and Houseparty’s spontaneous hangouts for a new feature called Rooms. It could usher in a new era of unplanned togetherness via video.

Launching today on mobile and desktop in English speaking countries, you can start a video chat Room that friends can discover via a new section above the News Feed or notifications Facebook will automatically send to your closest pals. You can also just invite specific friends, or share a link anyone can use to join your Room.

For now, up to 8 people can join, but that limit will rise to 50 within weeks, making it a more legitimate alternative to Zoom for big happy hours and such. And more importantly, users will soon be able to create and discover Rooms through Instagram, WhatsApp, and Portal, plus join them from the web without an account, making this Facebook’s first truly interoperable product.

“People just want to spend more time together” Facebook’s head of Messenger Stan Chudnovsky tells me. One-on-one and group video calling was already growing, but “Now in the time of COVID, the whole thing is exploding. We already had a plan to do a bunch of stuff here [so people could] hang out on video any time they want, but we accelerated our plans.” There’s no plans for ads or other direct monetization of Rooms, but the feature could keep Facebook’s products central to people’s lives.

Choosing to create a separate and extremely prominent space for discovering Room above the News Feed reveals how seriously Facebook is taking this product. It could have marooned Rooms in a standalone app or made them just another News Feed post that’s timeliness would get lost in the algorithm. Instead, it was willing to push the feed almost entirely off the start screen beneath the composer, Rooms, and Stories. Clearly Facebook sees sharing, ephemeral content, and synchronous connection as more key to its future than static status updates.

Facebook Goes All-In On Video

The launch of Rooms comes alongside a slew other video-related updates designed to shore up Facebook’s deficiency in many-to-many communication. Messenger and WhatsApp now see 700 million people using audio and video calls each day, while Facebook and Instagram Live videos now reach 800 million people per day. Facebook already owns the many-to-one feeds and has emerged as a leader in one-to-many livestreaming, but “the middle piece needed way more investment” Chudnovsky says.

Here’s a rundown of the other announcements and what they mean:

  • Virtual And 360 Backgrounds with mood lighting – Facebook will soon launch the ability to choose a virtual background to cover up what’s behind you on a video call, including 360 backgrounds that look different as you move around, plus mood lighting to make you look better on camera

  • WhatsApp expands group calls from four to eight max participants – Encompassing larger families and friend groups makes WhatsApp a more viable competitor to Zoom

  • Facebook Live With returns – It’s tough to be the center of attention for long periods, so being able to bring a guest on screen during Live calls keeps them interesting and low pressure
  • Donate button on live videos – This makes it much easier for musicians, activists, and normal people to raise money for causes during the coronavirus crisis
  • Live via audio only – With more musicians bringing their tours to Facebook Live, now you can listen while still going about your day when you can’t watch too or want to conserve data, and you can use a toll-free number to dial in to some Pages’ videos
  • Instagram Live on web – You can now watch Live videos and comment from desktop so you can multi-task during longer streams

  • Live on IGTV – Long live videos won’t have to disappear since they can now be saved to IGTV, encouraging higher quality Instagram Lives meant to last
  • Portal Live – You’ll now be able to go Live to Pages and Groups from Portal devices so you can move around while streaming

  • Facebook Dating Video Chat – Rather than going on a date where you have no chemistry, you’ll be able to video chat with matches on Facebook Dating to get a feel for someone first.

How To Use Facebook Rooms

Facebook strived to make Rooms launchable and discoverable across all its apps in hopes of blitzing into the space. You can launch a Room from the News Feed composer, Groups, Events, the Messenger inbox, and soon Instagram Direct’s video chat button, WhatsApp, and Portal. You’ll be able to choose a start time, add a description, and choose who can join in three ways.

You can restrict your Room just to people you invite, such as for a family catch-up. You can make it open to all your friends, who’ll be able to see it in the new Rooms discovery tray above the News Feed or inbox and eventually similar surfaces in the other apps. In this case, Facebook may notify some close friends to make sure they’ll see it. Or you can share a link to your Room wherever you want, effectively making it public.

Facebook apparently watched the PR disaster that emerged from Zoombombing, and purposefully built security into Rooms. The host can lock the room to block people from joining via URL, and if they boot someone from a Room, it automatically locks until they unlock it. That ensures that if trolls find your link, they can’t just keep joining from the web.

Naturally, Chudnovsky tried to downplay the influence of Zoom and Houseparty on Rooms. “We’re glad there are many other apps people can use when they want to see each other and stay close to each other. I don’t think we necessarily learned anything that actually became part of this product” he insisted. It’s also convenient that Rooms is essentially a non-exclusive video version of Clubhouse, the voice chat app that’s the talk of Silicon Valley right now

The Uncopyable Copier

Facebook has been quietly working on Rooms since at least 2017, exploring how to make group chats discoverable. It tried a standalone app for group video chat discovery called Bonfire that year. In fact, Facebook launched a standalone app called Rooms back in 2014 for anonymous forums.

The genius of this launch is how it combines three of Facebook’s biggest strengths to build a product that copies others but is hard to copy itself.

  • The ubiquity of its messaging apps and web compatibility make Rooms highly accessible, without the friction of having to download a new app.
  • The frequency of visits to its feeds and inboxes where Rooms can be found by the family of apps’ 2.5 billion users plus Facebook’s willingness to bet big by sticking Rooms atop our screen like it did with Stories could unlock a new era of spontaneous, serendipitous socializing.
  • The social graph we’ve developed with great breadth across Facebook’s apps plus the depth of its understanding about who we care about most allow it to reach enough concurrent users to make Rooms fun by intelligently ranking which we see and who gets notifications to join rather than spamming your whole phone book.

No other app has all of these qualities. Zoom doesn’t know who you care about. Houseparty is growing but is far from ubiquitous. Messaging competitors don’t have the same discovery surfaces.

Facebook knows the real engagement on mobile comes from messaging. It just needed a way to make us message more than our one-on-one threads and asynchronous group chats demanded. Rooms makes video calls something you can passively discover and join rather having to actively initiate or be explicitly pulled into by a friend. That could significantly increase how often and long we use Facebook without the deleterious impacts of zombie-like asocial feed scrolling.

For more of this author Josh Constine’s thoughts on tech, join his newsletter Moving Product

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6 investment trends that could emerge from the COVID-19 pandemic

Rocio Wu
Contributor

Rocio Wu is a venture partner at F-Prime Capital who focuses on early-stage investments in software/applied AI, fintech and frontier tech investments.

While some U.S. investors might have taken comfort from China’s rebound, we still find ourselves in the early innings of this period of uncertainty.

Some epidemiologists have estimated that COVID-19 cases will peak in April, but PitchBook reports that dealmaking was down -26% in March, compared to February’s weekly average. The decline is likely to continue in coming weeks — many of the deals that closed last month were initiated before the pandemic, and there is a lag between when deals are made and when they are announced.

However, there’s still hope. A recent report concluded that because valuations are lower and there’s less competition for deals, “the best-performing vintages tend to be those that invest at the nadir of a downturn and into the early stage of recovery.” There are countless examples from the 2008 recession, including many highly valued VC-backed businesses such as WhatsApp, Venmo, Groupon, Uber, Slack and Square. Other early-stage VCs seem to have arrived at a similar conclusion.

Also, early-stage investing seems more resilient. During the last recession, angel and seed activity increased 34% as interest in the stage boomed during a period of prolonged growth.

Furthermore, there is still capital to be deployed in categories that interested investors before the pandemic, which may set the new order in a post-COVID-19 world. According to data provider Preqin Ltd., VC dry powder rose for a seventh consecutive year to roughly $276 billion in 2019, and another $21 billion were raised last quarter. And looking at the deals on the early-stage side that were made year to date, especially in March, the vertical categories that garnered the most funding were enterprise SaaS, fintech, life sciences, healthcare IT, edtech and cybersecurity.

Image Credits: PitchBook

That said, if VCs have the capital to deploy and are able to overcome the obstacle of “having never met in person,” here are six investment trends that could emerge when the pandemic is over.

1. Future of work: promoting intimacy and trust

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Leverice is a team messenger app that’s taking aim at information overload

Meet Leverice: A team messenger and collaboration platform that’s aiming to compete with b2b giants like Slack by tackling an issue that continues to plague real-time messaging — namely, ‘always-on’ information overload. This means these tools can feel like they’re eating into productivity as much as aiding it. Or else leave users stressed and overwhelmed about how to stay on top of the work comms firehose. 

Leverice’s pitch is that it’s been built from the ground up to offer a better triage structure so vital bits of info aren’t lost in rushing rivers of chatter than flow across less structured chat platforms.

It does this by giving users the ability to organize chat content into nested subchannels. So its theory is that hyper structured topic channels will let users better direct and navigate info flow, freeing them from the need to check everything or perform lots of searches in order to find key intel. Instead they can just directly drill down to specific subchannels, tuning out the noise.

The overarching aim is to bring a little asynchronicity to the world of real-time collaboration platforms, per co-founder and COO Daniel Velton.

“Most messaging and collaboration tools are designed for and built around synchronous communications, instant back-and-forth. But most members of remote teams communicate at their own pace — and there was no go-to messaging tool built around asynchronous communications,” he tells TechCrunch.

“We set out to solve that problem, to build a messenger and collaboration platform that breaks rivers down into rivulets. To do that, we needed a tech stack and unique architecture that would allow teams to efficiently work with hundreds of channels and subchannels distributed between scores of channel branches of varying depths. Having that granularity ensures that each little shelf maintains topical integrity.

“We’re not discussing Feature 2.1.1 and 2.1.2 and 2.1.3 and 2.1.4 inside a single ‘Features’ channel, where the discussions would blend together. Each has its own little home.”

Of course Slack isn’t blind to the info-overload issues its platform can generate. Last month it announced “a simpler, more organized Slack”, which includes the ability for users to organize channels, messages and apps into “custom, collapsible sections”. Aka folders.

So how is Leverice’s subchannel architecture a great leap forward on the latest version of Slack — which does let users organize themselves (and is now in the process of being rolled out across its user-base)?

“All structuring (including folders) on other popular messengers is essentially an individual preference setting,” says Velton. “It does not reflect on a teamwide channel tree. It’s definitely a step in the right direction but it’s about each user adding a tiny bit of structure to their own private interface, not having a structure that affects and improves the way an entire team communicates.

“Leverice architecture is based on structuring of channels and subchannels into branches of unlimited depth. This kind of deep structuring is not something you can simply ‘overlay’ on top of an existing messenger that was designed around a single layer of channels. A tremendous number of issues arise when you work with a directory-like structure of infinite depth, and these aren’t easily solved or addressed unless the architecture is built around it.”

“Sure, in Leverice you can build the ‘6-lane autobahns’,” he adds, using an analogy of vehicle traffic on roads to illustrate the concept of a hierarchy of topic channels. “But we are the only messenger where you can also construct a structured network of ‘country roads’. It’s more ‘places’ but each ‘place’ is so narrow and topical that working through it all becomes more manageable, quick and pleasant, and it’s something you can do at your own pace without fear of missing important kernels of information as they fly by on the autobahn.”

To be clear, while Slack has now started letting users self-organize — by creating a visual channel hierarchy that suits them — Leverice’s structure means the same structured tree of channels/subchannels applies for the whole team.

“At the end of the day, for communications to work, somebody on a team needs to be organized,” argues Velton. “What we allow is structuring that affects the channel tree for an entire team, not just an individual preference that reflects only on a user’s local device.”

Leverice has other features in the pipeline which it reckons will further help users cut through the noise — with a plan to apply AI-powered prioritization to surface the most pressing inbound comms.

There will also be automated alerts for conversation forks when new subchannels are created. (Though generating lots of subchannel alerts doesn’t sound exactly noise-free…)

“We have features coming that alert users to forks in a conversation and nudge the user toward those new subchannels. At this stage those forks are created manually, although our upcoming AI module will have nudges based on those forks,” says Velton.

“The architecture (deep structuring) also opens the door to scripting of automated workflows and open source plug-ins,” he adds.

Leverice officially launched towards the end of February after a month-long beta which coincided with the coronavirus-induced spike in remote work.

At this stage they have “members of almost 400 teams” registered on the platform, per Velton, with initial traction coming from mid-size tech companies — who he says are either unhappy with the costs of their current messaging platform or with distraction/burnout caused by “channel fatigue”; or who are facing info fragmentation as internal teams are using different p2p/messaging tools and lack a universal choice.

“We have nothing but love and respect for our competitors,” he adds. “Slack, Teams, WhatsApp, Telegram, Skype, Viber, etc.: each have their own benefits and many teams are perfectly content to use them. Our product is for teams looking for more focus and structure than existing solutions offer. Leverice’s architecture is unique on the market, and it opens the door to powerful features that are neither technically nor practically feasible in a messenger with a single layer containing a dozen or two dozen channels.”

Other differentiating features he highlights as bringing something fresh to the team messaging platform conversation are a whiteboard feature that lets users collaborate in the app for brainstorming or listing ideas, prorities; and a Jira integration for managing and discussing tasks in the project- and issue-tracking tool. The team is planning further integrations including with Zoom, Google Docs and “other services you use most”.

The startup — which was founded by CEO Rodion Zhitomirsky in Minsk but is now headquartered in San Jose, California, also with offices in Munich, Germany — has been bootstrapping development for around two years, taking in angel investment of around $600,000.

“We are three friends who managed complex project-based teams and personally felt the pains of all the popular messengers out there,” says Velton, discussing how they came to set up the business. “We used all the usual suspects, and even tried using p2p messengers as substitutes. They all led us and our teams to the same place: we couldn’t track large amounts of communications unless we were in “always-on” mode. We knew there had to be a better way, so we set out to build Leverice.”

The third co-founder is Dennis Dokutchitz.

Leverice’s business model is freemium, with a free tier, a premium tier, and a custom enterprise tier. As well as offering the platform as SaaS via the cloud, they do on-premise installations — for what Velton describes as “the highest level of security and privacy”.

On the security front the product is not end-to-end encrypted but he says the team is developing e2e encrypted channels to supplement the client-server encryption it applies as standard.

Velton notes these forthcoming channels would not support the usual search features, while AI analysis would be limited to “meta-information analysis”, i.e. excluding posts’ content.

“We don’t process customer or message data for commercial purposes, only for internal analytics and features to improve the product for users,” he adds when asked about any additional uses made of customer data. (Leverice’s Privacy Policy can be found here.)

With remote work the order of the day across most of the globe because of the COVID-19 pandemic, it seems likely there will be a new influx of collaboration tools being unboxed to help home workers navigate a new ‘professionally distant’ normal.

“We’ve only been on the market for 6 weeks and have no meaningful revenue to speak of as of yet,” adds Velton.

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