TechCrunch |
- Startups scramble in wake of Ukraine invasion
- This Week in Apps: Facebook Reels goes global, Trump’s own social app arrives, all eyes on TikTok
- Not all SPACs are garbage, and the power of teamwork
| Startups scramble in wake of Ukraine invasion Posted: 26 Feb 2022 11:00 AM PST Welcome to Startups Weekly, a fresh human-first take on this week's startup news and trends. To get this in your inbox, subscribe here. I'm doing an abbreviated newsletter this week as I want to spend most of my energy amplifying the brave journalists on the ground reporting about this scary time. As so many have said — far more eloquently than me — the invasion of Ukraine is a story that impacts all of us, whether we're on the ground there or not. And it's hard to celebrate a funding round when scary times are the moment. My brilliant colleagues put together a story on how the tech industry is responding to Russia's invasion of Ukraine; I urge you to read it. While the situation is still ongoing, it's clear that it's already a tech story. And startups such as Grammarly, Ajax, People AI and Preply, backed by some of the world's biggest VCs, are scrambling to support employees and operations amid the invasion. What I'm hearing from sources is that startup founders are mainly offering financial assistance to employees who are in Ukraine or neighboring countries. The cash is supposed to help with fleeing the country. WhatsApp groups are also being formed between founders to see what is the best course of action; expect hubs with information on refuge or resources to roll out far and wide. Then, there's the startups that could actually make a dent in how consumers gain or share information amid a new war. One reaction of note is that of Cloudflare chief executive Matthew Prince, who said the company had "removed all Cloudflare customer cryptographic material from servers in Ukraine," as a response to the new war. The move is an effort to protect customer data in case its data center, which opened in Kyiv in 2016, is compromised. Michael Seibel, president of Y Combinator, asked a question on everyone's minds: “Honest question, if US technology companies worked together right now – what could they do to deter Putin’s invasion?” As you can tell by the responses, there's no perfect answer. As my colleague Zack Whittaker put it, our mission at TechCrunch is staying the same. "We’re still a tech news pub with a focus on business, finance and startups. We still do that day in and day out, and the invasion is going to affect a lot of things. So, as you would with any other major event, we adjust our tone and we serve our audience the best way we can by telling them what they need to know." Reminder: You can always take a break, close this tab and give yourself grace. And, as always, you can support me by sharing this newsletter, following me on Twitter or subscribing to my personal blog. Deal of the weekGloria Lin, the brains behind ApplePay, has a new startup: Siteline. Senior reporter Mary Ann Azevedo, who is launching a fintech newsletter, gave readers a first look at the company that wants to combine construction with fintech. Here's why it's important: Antiquated industries catching the ol' fintech bug is anything but a new phenomenon, but it is always a signal when someone with a successful track record picks up the baton. The question is, can Lin bring her understanding of consumer fintech habits to an industry with complexities no one company has yet been able to crack? Honorable mentions:
 Image Credits: Andriy Onufriyenko (opens in a new window) / Getty Images The Great Realizations within the Great ResignationOn Equity this week, Alex and I spoke about the ripple effects of the Great Resignation, with a specific focus on the employee. We talked through what startups are facing today in terms of a labor market, how it has changed and how they might be able to compete with Big Tech's big dollars. After all, is any company going to be able to beat Meta on comp? Probably not. Here's why it's important: It appears that the forces driving more venture capital into early-stage companies are not too far from the causes of the labor shortage. Everyone is looking for a return, either on their labor, or their capital. And that means a tight hiring market, and picky workers. Bring on the portable benefits:
 Image Credits: Bryce Durbin / TechCrunch Across the weekWe get to hang out in person! Soon! Techcrunch Early Stage 2022 is April 14, aka right around the corner, and it's in San Francisco. Join us for a one-day founder summit featuring GV's Terri Burns, Greylock's Glen Evans and Felicis' Aydin Senkut. The TC team has been fiending to get back in person, so don't be surprised if panels are a little spicier than usual. Here's the full agenda, and grab your launch tickets here. Also, my dear colleague and first work best friend Chris Gates is moving on to other opportunities. My eyes have been puffy all week because there's nothing quite like the relationship between a co-host and a producer. Thanks for editing out the ums and the likes, and for making me feel like I have something important to say. To those who want to follow Chris’ next step, follow him on Twitter and stay tuned for an episode next week in which we walk through his journey (and celebrate a huge Equity milestone). Seen on TechCrunch Your Android phone could have stalkerware, here's how to remove it Behind the stalkerware network spilling the private phone data of hundreds of thousands The average person doesn't have a chance with the smart home Waymo to keep robotaxi safety details secret, court rules SEC opens investigation into Elon Musk over possible insider trading Seen on TechCrunch+ VCs weigh in on Europe's future in the critical deep tech market Dear Sophie: Startup visa news, H-1B and STEM OPT queries 14 climate tech investors share their H1 2022 strategies Until next time, |
| This Week in Apps: Facebook Reels goes global, Trump’s own social app arrives, all eyes on TikTok Posted: 26 Feb 2022 10:30 AM PST Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy. The app industry continues to grow, with a record number of downloads and consumer spending across both the iOS and Google Play stores combined in 2021, according to the latest year-end reports. App Annie says global spending across iOS, Google Play and third-party Android app stores in China grew 19% in 2021 to reach $170 billion. Downloads of apps also grew by 5%, reaching 230 billion in 2021 and mobile ad spend grew 23% year-over-year to reach $295 billion. In addition, consumers are spending more time in apps than ever before — even topping the time they spend watching TV, in some cases. The average American watches 3.1 hours of TV per day, for example, but in 2021, they spent 4.1 hours on their mobile device. And they're not even the world's heaviest mobile users. In markets like Brazil, Indonesia, and South Korea, users surpassed five hours per day in mobile apps in 2021. Apps aren’t just a way to pass idle hours, either. They can grow to become huge businesses. In 2021, 233 apps and games generated over $100 million in consumer spend, and 13 topped $1 billion in revenue, App Annie noted. This was up 20% from 2020 when 193 apps and games topped $100 million in annual consumer spend, and just eight apps topped $1 billion. This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too. Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters Top StoriesTikTok gives a devasting, firsthand view into the Russia-Ukraine warThe world is watching in horror this week as Russia invaded Ukraine, in an aggressive, cold-blooded assault on democracy. And many people are watching the conflict unfold in real time on TikTok, which has found itself squarely in the middle of the international conversation as a source for firsthand information from the region. And, in a number of cases, misinformation. While mobile access to live and recorded video from conflict situations definitely isn’t a new phenomenon, there’s something unique about TikTok’s window into the world. Maybe it’s the odd juxtaposition of war footage amid videos of cooking, fashion, dance and humor — a reminder of what life is supposed to be like positioned against the atrocities of the invasion. Or maybe it’s how a short scroll back through the profiles of the creators-turned-citizen journalists shows that, only days ago, they were uploading everyday content, including scenes from their lives with family and friends. Or maybe it’s the fact that TikTok creators have always come across as more “real” than those on Instagram, where polished and perfected images had put them at a distance from their fans — that just makes what’s now happening feel all the more personal when viewed on TikTok. But the video platform isn’t just delivering an emotional punch; it’s also been providing military intelligence with its videos of weaponry, planes, vehicles, rockets, soldier movements, protests and more, captured in short clips by everyday citizens. A man walking his dog recorded as ballistic missile launchers passed him by; another person filmed as they drove past a convoy of armored fighting vehicles; young adults went live from the underground train stations which have turned into bomb shelters. And so on. Plus, TikTok’s advanced algorithm plays a role here in getting this footage seen. The more coverage you watch on TikTok, the more you’ll receive on your For You page — TikTok’s personalized feed, which, by its very nature, surfaces videos from people you don’t follow, unlike social rivals. It remains to be seen how or if TikTok will step in to moderate, elevate or suppress any of this content, or handle the onslaught of misinfo, but for the time being, it’s all relatively easy to find. Trump’s social app debuts Image Credits: TRUTH Social Last weekend, the Trump-backed TRUTH Social app launched on the App Store, and gained just over 400,000 downloads by mid-week, per Sensor Tower data. But it’s difficult to calculate if those figures represent true consumer demand — some could be attributed to curiosity seekers or media reporting on the launch, for example, rather than Trump die-hards. Meanwhile, many of those who did want to engage with the service received error messages upon trying to create an account, and others were placed on a waitlist, according to reports. Some also reported never receiving their email verifications and not being able to move past the verification step. A rocky launch to say the least. Without immediately gaining access, some of the more casual early adopters may not swiftly return — after all, TRUTH Social is still an app, and apps have a limited window to capture a user’s attention before they’re abandoned. Studies have shown that nearly 25% of users will open a newly installed app only once. And in the case of TRUTH Social, it may have a verified Trump account, but it’s not the only place for conservatives to gather — they also have the Rebekah Mercer-backed app Parler, Gab, Gettr, MeWe, CloutHub and various private social channels. Another complication is that TRUTH Social could end up being an echo chamber for the right, which could limit its appeal to a mainstream audience who would rather hear from both sides on a given topic, and engage in a debate. But the app could help to stoke fires within Trump’s base; that’s likely its main goal anyway — not toppling Twitter. Facebook Reels rolls out worldwide Image Credits: Meta After publicly launching in the U.S. this past September, Facebook Reels this week became globally available in more than 150 countries. The feature, which is a key part of Meta's response to the TikTok threat, allows creators to share short-form video content on Facebook or cross-post Reels from Instagram in order to reach a broader audience. Alongside the global rollout, Facebook introduced more creative tools, including Remix, 60-second videos and more. It also detailed new ways for creators to make money from their Reels through advertising, and soon, Stars (virtual tipping). The company said it’s expanding tests of Facebook Reels Overlay Ads to all Reels creators in the U.S., Canada and Mexico. By mid-March, the test will expand to nearly all the 50+ countries where in-stream ads are already available. These new Overlay Ads are non-interruptive ads, as they sit transparently atop the playing content instead of pausing the video to show the ad. Banner ads appear as a semi-transparent overlay at the bottom of a reel, while stickers are static images that can be placed anywhere within the reel. Creators keep 55% of the ad revenue for the time being. The ability to actually monetize a following could encourage creators to at least keep Facebook in the mix when considering publishing destinations, but it may not be enough to actually unseat TikTok from its current top spot. Top subscription app revenue grew 41% in 2021 Image Credits: Sensor Tower A new report from Sensor Tower indicates the top 100 non-game, subscription-based apps saw their consumer spend increase 41% in 2021 to $18.3 billion, up from $13 billion in 2020. And this represents just a small portion (14%) of the overall revenue from in-app purchases across both apps and games, which totaled $131.6 billion in 2021. However, this group's portion of the market is growing. In 2020, subscription revenue in non-game apps represented just 11.7% of the total consumer spend for the year, for comparison. The U.S. figures mirrored the global trends when it came to mobile spending on subscriptions, the data showed. Last year, U.S. consumers spent $8.5 billion in the top 100 non-game subscription apps, up 44% from $5.9 billion in 2020 — more sizable growth than the 28% rise seen the year prior. In total, U.S. consumers spent $40.7 billion on in-app purchases in 2021. Subscriptions have become the dominant means of driving app store revenue. In the fourth quarter, 90 out of the top 100 top-grossing U.S. apps included a subscription. This figure is only slightly down from the 91 in Q4 2020 or the 93 in Q4 2019. Weekly NewsPlatforms
E-commerce
Fintech
Social Image Credits: Tumblr
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Streaming & Entertainment
Gaming
Productivity and Utilities
Government & Policy
Security & Privacy Image Credits: Google
Funding and M&A
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| Not all SPACs are garbage, and the power of teamwork Posted: 26 Feb 2022 10:15 AM PST Welcome to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It's inspired by the daily TechCrunch+ column where it gets its name. Want it in your inbox every Saturday? Sign up here. Hello and happy Saturday! Today we’re taking on two topics. The first fits neatly into our usual coverage area. The second not so much. Let’s go! Not all SPACs are garbageIn the 2021 SPAC rush I missed the public debut of Alight Solutions. Based outside of Chicago, the company is a business process outsourcing shop that supports tens of millions of employees in the United States. It combined with Foley Trasimene, a blank-check company, last July after announcing its intentions to list via the SPAC earlier in 2021. It also reported earnings this week, and I chatted with its CEO Stephan Scholl after the fact. There are three things that matter from the Alight report that I want to noodle on with you. In order:
And now, something different. TeamworkI am writing to you, as I do every week, on Friday afternoon. I type up this little missive, contribute to Daily Crunch, and then bounce into the weekend. This Friday, however, has been a grinder. Not only because of economic uncertainty, the pandemic, or the invasion of Ukraine, but also because Chris Gates is leaving TechCrunch for a new role elsewhere. You probably don’t know Chris, which is evidence that I haven’t done enough along the way to shout him out. Regardless, he was a founding member of the Equity podcast, and his last day was today. By the time you read this, he will be gone. We worked together for around a half decade, recording hundreds of shows, suffering from failures, celebrating wins and generally making the show work as a team. Through host changes, the sale of our parent company, and so very much more, he was there, steady, warm and ready to fucking go. It goes without saying that Equity is also Grace and Mary Ann and Natasha, and has also had the pleasure of having Danny and Kate and Matthew and Katie and Connie in the mix during its life. It is very much a group project. I’m going to miss working with Chris so much. But his exit is a good reminder of the very human force-multiplier called teamwork.  The man, the myth, the smile. Chris posted this to Slack when he announced his exit, so it’s only fair to troll him with it here. This is the energy he brought every single day. This newsletter, for example, gets written by myself. Then Annie or Richard give it a read. Henry often peeks at it, as well, as he helped dream it up with me a few years back and supported its birth. Finally, it’s moved into our email software, into a slot that our sales team prepares to include the correct advertising elements. It then gets sent out to your inbox and posted on the site, which our tech crew makes possible. I just get my name at the top because I wrote the words. But this product is the result of material, longitudinal teamwork. I’ve had better luck than I have deserved when it comes to teams. The folks I have had the pleasure of working with in my career have, with very few exceptions, been people I have loved having in my life more generally. Chris and I worked on Equity together through weddings, the birth of kids, moves and more. We did life together, you know? And let me just note that the TechCrunch+ team, which is where The Exchange lives generally, is aces. Walter and Annie and Ram and Anna and the rest of the team are excellent folks I am lucky to orbit around. I get to do so much more because we work together. And I hope I am returning the favor. Teamwork. It’s the best. And it makes work breakups all the harder. Godspeed, Chris, in your next adventure. I look forward to being your #1 fan in whatever it is you’re cooking up next. — Alex |
TikTok star Charli D’Amelio, sister Dixie and parents Marc and Heidi 
Travel app Hopper 
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