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Friday, May 21, 2021

Extra Crunch roundup: Jam City SPAC, startup PR, telemedicine market map, more

For this morning’s edition of The Exchange, Alex Wilhelm studied information recently released by mobile gaming studio Jam City as it prepares to go public in a $1.2 billion blank-check deal with DPCM Capital.

“Jam City is a bit like Zynga, but unless you are a mobile-gaming aficionado, you might not have heard of it,” he writes.

Since its launch, Jam City has raised upwards of $300 million, including a $145 million round in 2019. At the time, the company was riding high after signing a deal with Disney to adapt some of the media giant’s intellectual property, which includes brands like Marvel, Fox and Pixar.

Almost half of all Americans play mobile games, so Alex reviewed Jam City’s investor deck, a transcript of the investor presentation call and a press release to see how it stacks up against Zynga, which “has done great in recent quarters, including posting record revenue and bookings in the first three months of 2021.”

(Full disclosure: the second time I worked at a startup founded by Mark Pincus, Zinga slept behind my desk and I was one of her favorite dog-sitters.)

Thanks for reading Extra Crunch; I hope you have an excellent weekend!

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist


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5 ways to raise your startup’s PR game

Image of a numbered wooden puzzle ring on a wooden table.

Image Credits: Andrii Yalanskyi (opens in a new window)/ Getty Images

The ability to effectively communicate can make or break your launch. It will play a role in determining who wins a new space — you or a competitor.

So how do you make a splash? How do you stay relevant?

For one, you have to stop thinking that what you are up to is interesting.

Every early-stage startup must identify and evaluate a strategic advantage

A strategic advantage can make your business

Image Credits: Eoneren / Getty Images

Whether you’re building a company or thinking about investing, it’s important to understand your strategic advantage.

In order to determine one, you should ask fundamental questions: What’s the long-term, sustainable reason that the company will stay in business?

As M&A accelerates, deal-makers are leveraging AI and ML to keep pace

Image of multicolored, complicated, twisted threads combining to form a single arrow against a light gray backdrop.

Image Credits: Fanatic Studio (opens in a new window) / Getty Images

The global pandemic has changed the way we work, including how and where we work. For those involved in the mergers and acquisitions (M&A) industry, a notoriously relationship-driven business, this has meant in-person boardroom handshakes have been replaced by video conference calls, remote collaboration and potentially less travel in the future.

The pandemic has also accelerated digital transformation, and deal-makers have embraced digital tools to help them execute effectively.

The quickening pace of digital transformation is no longer about ensuring a competitive edge. Today, it’s also about business resilience. But what’s on the horizon, and how else will technology evolve to meet the needs of companies and deal-makers?

There are still many inefficiencies in managing M&A, but technologies such as artificial intelligence, especially machine learning, are helping to make the process faster and easier.

New Relic’s business remodel will leave new CEO with work to do

Businessman struggling to move data arrow upwards

Image Credits: Malte Mueller / Getty Images

Lew Cirne, New Relic’s founder and CEO, is stepping into the executive chairman role. He will be replaced by Bill Staples on July 1.

Cirne spent the last several years rebuilding the company’s platform and changing its revenue model, aiming for what he hopes is long-term success.

TechCrunch decided to dig into the company’s financials to see just what challenges Staples may face as he moves into the corner office. The resulting picture is one that shows a company doing hard work for a more future-aligned product map and business model, albeit one that may not generate the sort of near-term growth that gives Staples ample breathing room with public investors.

Fast growth pushes an unprofitable no-code startup into the public markets: Inside Monday.com’s IPO filing

At long last, the Monday.com crew dropped an F-1 filing to go public in the United States. TechCrunch has long known that the company, which sells corporate productivity and communications software, has scaled north of $100 million in annual recurring revenue (ARR).

The countdown to its IPO filing — an F-1, because the company is based in Israel, rather than the S-1s filed by domestic companies — has been ticking for several quarters.

The Exchange has been riffling through the document since it came out, and we’ve picked up on a few things to explore.

The battle for voice recognition inside vehicles is heating up

market map voice recognition

Image Credits: Bryce Durbin

Until recently, integrating affordable voice-recognition software into an automobile was something from science fiction.

But last year, the percentage of vehicles offering in-car connected services reached 45%. By 2024, analysts predict cars with voice recognition will comprise 60% of the market.

Considering how much time many of us spend behind the wheel, there’s an infinite number of applications for the technology. For our latest Extra Crunch market map, we sized up the general market opportunity before creating a roster of major players and reaching out to investors to see where they’re placing bets.

Industrial automation startup Bright Machines hauls in $435M by going public via SPAC

Automatic robot mechanical arm is working in the modern automobile parts factory.

Image Credits: Teera Konakan / Getty Images

Bright Machines is going public via a SPAC-led combination that will see the 3-year-old company merge with SCVX, raising gross cash proceeds of $435 million in the process.

After the transaction is consummated, the startup will sport an anticipated equity valuation of $1.6 billion.

The Bright Machines news indicates that the great SPAC chill was not a deep freeze. And the transaction itself, in conjunction with the previously announced Desktop Metal blank-check deal, implies that there is space in the market for hardware startup liquidity via SPACs. Perhaps that will unlock more late-stage capital for hardware-focused upstarts.

We took a look at what Bright Machines does, and then the financial details that it shared as part of its news.

Want to double your rate of return? Seek counsel from experienced executives

As a rule of thumb, it takes 7-8 years for a successful startup to achieve an exit. But there’s a simple way to speed up the clock: Bring in one or more founders who have previous executive experience.

According to data gathered by Rob Olson, partner and head of data strategy at venture engine M13, startups that have two or more experienced founders tend to exit 33% faster and raise 34% less capital.

“Combined, these two improvements can nearly double an investor’s rate of return,” says Olson.

Should startups build or buy telehealth infrastructure?

Image Credits: Georgijevic (opens in a new window)/ Getty Images

Digital health in the U.S. got a huge boost from COVID-19 as more people started consulting physicians and urgent care providers remotely in the midst of lockdowns. So much so that McKinsey estimates that up to $250 billion of the current healthcare expenditure in the U.S. has the potential to be spent virtually.

The prominence of digital health is undoubtedly here to stay, but how it looks and feels from provider to provider is still a debate among sector startups.

But for providers who want to deliver care virtually across the country, it’s not as simple as adding a Zoom invite to an annual check-up. The process requires intention every step of the way — right from the clinicians delivering remote care to the choice of payment processor.

Help TechCrunch find the best email marketers for startups

Image Credits: Getty Images under a MirageC (opens in a new window) license.

Email marketing has been with us for decades, but today it has been refined to a science and an art form.

If you’re an early-stage founder, it is one of the best ways to build and grow your direct relationship with your customer. You know how fickle the platforms can be. You can’t afford to mess this up.

So when and how should you think about doing email marketing, versus all of your other frantic priorities?

Here at Extra Crunch, we’re helping you find the answers. We launched a survey of founders who want to recommend a great email marketer or agency they have worked with to the rest of the startup world.

Fill out the survey here.

For companies that use ML, labeled data is the key differentiator

Data labeling is more important than ever for ML implementations

Image Credits: gremlin / Getty Images

When a company chooses supervised learning, it needs to have a strategy that allows it to label data as quickly as it acquires it.

Supervised learning is currently the most practical approach for most ML challenges, but it requires the crucial additional step of making raw data smart by labeling it.

How Expensify got to $100M in revenue by hiring ‘stem cells’ and not ‘cogs in a wheel’

Illustration Expensify

Image Credits: Nigel Sussman

The influence of a founder on their company’s culture cannot be overstated. Everything from their views on the product and business to how they think about people affects how their company’s employees will behave, and since behavior, in turn, informs culture, the consequences of a founder’s early decisions can be far-reaching.

So it’s not surprising that Expensify has its own take on almost everything it does when you consider what its founder and CEO David Barrett learned early in his life: “Basically everyone is wrong about basically everything.”

As we saw in part 1 of this EC-1, this led him to the revelation that it’s easier to figure things out for yourself than finding advice that applies to you. Eventually, these insights would inform how he would go about shaping Expensify.

Inside Marqeta’s fascinating fintech IPO

Marqeta, long a darling of the fintech market though less well known than some companies in its sector due to its infrastructure nature, filed to go public late last week

If you are not familiar with Marqeta, it powers the payment card tech behind products that you use, like Square, a key customer and driver of the unicorn’s growth. Marqeta exhibits a number of fascinating fintech characteristics (majority revenue from interchange, a rabidly competitive market) that make it very interesting to unspool.

May Mobility’s Edwin Olson and Nina Grooms Lee and Toyota AI Ventures’ Jim Adler on validating your startup idea

When a founder has a work history that includes the name of the parent company of one of their key investors, you probably assume that was one of the first deals to come together. Not so with May Mobility and Toyota AI Ventures, which connected for the company’s second seed round after May went out and raised its original seed purely on the strength of its own ideas and proposed solutions.

That’s one of the many interesting things we learned from speaking to May Mobility co-founder and CEO Edwin Olson, as well as Chief Product Officer Nina Grooms Lee and Toyota AI Ventures founding partner Jim Adler on an episode of Extra Crunch Live.

Extra Crunch Live goes down every Wednesday at 3 p.m. EDT/noon PDT. Our next episode is with Sequoia’s Shaun Maguire and Vise’s Samir Vasavada, and you can check out the upcoming schedule right here.

Meanwhile, read on for highlights from our chat with Olson, Grooms Lee and Adler, and then stay tuned at the end for a recording of the full session, including our live pitch-off.

WalkMe is going public: Let’s stroll through its numbers

GettyImages 1058454392

Image Credits: Getty Images / Somyot Techapuwapat / EyeEm

WalkMe is the second Israel-based technology company to file to go public this week: No-code startup Monday.com is also pursuing an American IPO.

WalkMe’s software provides visual overlays on websites that help users navigate the product in question. Per the company’s F-1 filing, other elements of its service that matter include its onboarding system, Workstation, or its “single interface to the applications within an enterprise and simplifies task completion through a natural language conversational interface and automation.” We’re including that last feature because it says “automation,” which, in the wake of the UiPath IPO, is a word worth watching. Investors are.

At a high level, WalkMe is a SaaS business, which means that when we digest its results we are digging into a modern software company. Let’s do just that.

Can Squarespace dodge the direct-listing value trap?

Squarespace’s reference price has been set at $50 per share.

We went over Squarespace’s recently disclosed Q2 and full-2021 guidance and asked how its expectations compare to its reference-price-defined pre-trading valuation. Then, we set some stakes in the ground regarding historical direct-listing results and what we might expect from the company as it adds a third set of data to our quiver.

Let’s get into the numbers!

Mapping out one edtech company’s $200M bet on lifelong learning

GettyImages 1129167882

Image Credits: Getty Images / DrAfter123

Mumbai-based Emeritus, an edtech company that works with universities to create online upskilling courses for employed folks, just spent a big chunk of cash to break into K-12.

Emeritus, which is part of the Eruditus group, announced this week that it plans to acquire iD Tech, a STEM education service for children. The acquisition, which has not yet closed, is estimated to be around $200 million and leaves iD Tech operating as an independent brand for now.

ID Tech brings a whole different set of customers to its umbrella: The startup offers courses for elementary through high-school students across the globe taught by college students in the U.S.

5 innovative fundraising methods for emerging VCs and PEs

Five innovative ways PE and VCs can use to fundraise

Image Credits: Hiroshi Watanabe / Getty Images

According to Versatile VC founder David Teten, five new strategies are gaining traction among fund managers looking to raise capital from family offices and high-net-worth individuals:

  • Online communities and virtual events.
  • Platforms that help other investors access your fund.
  • Soliciting under the 506(c) designation.
  • Launching a rolling fund.
  • Crowdfunding from retail investors into a general partnership.

In a summary of a class he taught for the Oper8r VC fund accelerator, Teten offers actionable advice for anyone who wants to connect with pre-qualified investors.

Dear Sophie: What’s happening with visa application receipt notices?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

Our startup employs several individuals who are on work visas or have employment authorization. Many of them have been waiting for quite a while for the government to tell them their applications have been received.

Why? When will things be back on track? We have a few employees who are waiting for green cards, and a few F-1 visa holders who will be extending their OPT to STEM OPT.

Is there anything we can do?

— Patient in Pasadena

Arrival’s Denis Sverdlov on the new era of car manufacturing

Denis-Sverdlov

Image Credits: Bryce Durbin

Electric vehicle company Arrival wants to break the current auto manufacturing model. Instead of one giant factory and an assembly line, Arrival’s commercial electric vans, buses and cars are robotically built in small, regional microfactories, of which the company wants to open 31 by the end of 2025.

If you want to achieve something radically more efficient, you have to go deeper, into complex, high-level computational algorithms that are not normally used in consumer-facing products.

The London-based company, founded in 2015, joined the ranks of EV companies going public via SPAC, merging with blank-check company CIIG Merger Corp. in March. UPS has already ordered 10,000 of Arrival’s robotically engineered vans, and the company recently signed a deal with Uber to create purpose-built EVs for ride-hail drivers.

Arrival founder Denis Sverdlov has been at the intersection of technological advancement and societal change before.

 

Chasing hype is human nature: The tyranny of startup trends

Startup trends can be tricky

Image Credits: Nuthawut Somsuk / Getty Images

The fear of missing out (FOMO) spreads faster than wildfire and often overwhelms rational decision-making.

In the VC community, investors look for lessons from disruptive startups they can use to identify other potential winners. But hype leads to bad decision-making, rushed due diligence and wishful thinking.

When and if those startups actually do well, “irrational FOMO takes over” because the initial assessment was based on bad information, says Victor Echevarria, a partner at Jackson Square Ventures. “Trends are addictive; to remain disciplined and avoid hype is to deny our innate instincts.”

It’s natural for investors to follow the crowd, but in the race to the bottom, FOMO can be high-octane fuel.

Robinhood’s epic Q1 growth explains its fundraising boom

The Exchange explores Robinhood’s financial results using the lens of payment for order flow (PFOF) income, which the company said during a congressional hearing constitutes the majority of its revenues.

This particular revenue growth — or the lack thereof — is a good way to understand not only Robinhood’s own results but also its larger market. If Robinhood is seeing rapid growth and strong trading volumes, we can infer with some confidence that others in its space are enjoying a related, if not similar, level of interest.

For Public.com, eToro and others like Freetrade (as well as our own understanding), how Robinhood performed recently is key. So, let’s explore the data.

How to ensure data quality in the era of Big Data

Unknown data failures are a big problem in the big data age

Image Credits: gremlin / Getty Images

A little over a decade has passed since The Economist warned us that we would soon be drowning in data. The modern data stack has emerged as a proposed life-jacket for this data flood — spearheaded by Silicon Valley startups such as Snowflake, Databricks and Confluent.

Today, any entrepreneur can sign up for BigQuery or Snowflake and have a data solution that can scale with their business in a matter of hours. The emergence of cheap, flexible and scalable data storage solutions was largely a response to changing needs spurred by the massive explosion of data.

Currently, the world produces 2.5 quintillion bytes of data daily (there are 18 zeros in a quintillion). The explosion of data continues in the roaring ‘20s, both in terms of generation and storage — the amount of stored data is expected to continue to double at least every four years. However, one integral part of modern data infrastructure still lacks solutions suitable for the Big Data era and its challenges: Monitoring of data quality and data validation.

Investors help Procore build a decacorn valuation in public debut

Cranes of a construction site against blue sky

Image Credits: the_burtons (opens in a new window) / Getty Images

Watching construction tech software company Procore go public Thursday after pricing above its range makes the IPO slowdown look like the deceleration that wasn’t.

Investors quickly bid up the company’s value in trading, giving Procore a higher valuation than it might have anticipated, along with a boost of confidence for the IPO market in general.

Construction tech may not be as glamorous as space travel, but it’s a massive industry that’s fraught with inefficiencies.

Procore initially set an IPO range of $60 to $65 per share before pricing at $67 per share Wednesday night. Its debut was worth gross proceeds north of $600 million and a fully diluted valuation of $9.6 billion. As of early afternoon Thursday, shares were trading at a solid $85.25.

In light of Procore’s debut, TechCrunch is digging quickly into the company’s new valuation and its resulting revenue multiples.

Telemedicine startups are positioning themselves for a post-pandemic world

Closeup shot of an unrecognizable nurse using a cellphone in a hospital

Image Credits: LaylaBird (opens in a new window) / Getty Images

It’s impossible to predict how healthcare institutions will operate post-pandemic, but with so many people now accustomed to telemedicine, startups that provide services around virtual care continue to be poised for success.

Telemedicine has faced an uphill battle to become more relevant in the U.S., with challenges such as meeting HIPAA compliance requirements and insurance companies unwilling to pay for virtual visits. But when COVID-19 began raging across the globe and people had to stay home, both the insurance and healthcare industries were forced to adapt.

Now that people see the benefits and conveniences of “dialing a doc” from the kitchen table, healthcare has changed forever.



https://ift.tt/3vfDJBK Extra Crunch roundup: Jam City SPAC, startup PR, telemedicine market map, more https://ift.tt/346MEtm

Develop a buyer’s guide to educate your startup’s sales team and customers

Every company wants to be innovative, but innovation comes with its share of difficulties. One key challenge for early-stage companies that are disrupting a particular space or creating a new category is figuring out how to sell a unique product to customers who have never bought such a solution.

This is especially the case when a solution doesn’t have many reference points and its significance may not be obvious.

My view is simple — some buyers could use a walkthrough of the buying process. If you are building a singular product in a nascent market and necessitates forward-looking customers, and want to drastically shorten sales cycles, I have a proposal: Create a buyer’s guide.

A buyer’s guide is essentially a prescriptive summary that provides an understandable overview of how a customer may buy your solution. What does your product actually do? Is it secure? How would you implement the technology? What does it replace, if anything? It should be short, simple, and speak the customer’s language. It also acts as a sales enabling tool. Sales teams, especially at smaller startups, can review the guide quarterly and analyze what is and isn’t working as the company goes to market.

Here is how to put together a buyer’s guide, including what to sort out before you type a single word.

Know your audience

From the start, it’s important to think about who the stakeholders are for your product’s buying cycle. One typical issue with early-stage startups is they meet with an enthusiastic buyer — a CIO, CTO, or VP of product — but neglect to include the other stakeholders who should be part of the conversation. More importantly, a lot of companies don’t realize the impact of their product on a group or team that they would not typically sell to.

For example, target the security team as an early stakeholder, because they’re probably going to review your product. If the solution is focused towards, say, integration, then hone in on who would be owning the integration process on the buyer’s team.

If you’re selling a martech solution, on a business level, you have to consider a finance business partner for marketing. Think about the problems your customers face and also how others in their company relate to them.



https://ift.tt/eA8V8J Develop a buyer’s guide to educate your startup’s sales team and customers https://ift.tt/3v9NUb1

White House teams up with dating apps to give vaccinated users free perks

With vaccination rates slowing in the U.S., the White House is getting creative about getting shots in arms. Beyond protecting yourself and others from from a deadly disease, the latest incentive to get vaccinated could help you find love (or get laid).

The White House COVID-19 response team announced Friday that a number of popular dating apps would offer new perks for users who get vaccinated, with Tinder, Bumble, Hinge, Match, OkCupid, BLK, Chispa, Plenty of Fish and Badoo all participating in the promotional push. The White House hopes to make inroads with the 50 million users across those dating apps where they’re already spending time.

On Tinder, anyone who adds a sticker to their profile promoting their vaccination status between June 2 and July 4 will be gifted a free Super Like. (Proof of vaccination isn’t necessary, but really, you should get vaccinated if it’s available where you live.) Tinder and other apps will also add vaccination site resources from Vaccine.gov to help people figure out where they can get the shot nearby.

“Nothing like fireworks to signal a new spark and a new start for those looking to meet new people IRL this summer,” Tinder CEO Jim Lanzone said.

According to OkCupid, getting vaccinated might help with that. The company found that people who displayed their vaccination status were 14 percent more likely to find a match. On OkCupid, vaccinated users will get a free boost, a perk that promotes their profile to potential matches. The other apps participating in the White House initiative are handing out their own premium perks to give users a competitive edge.

The effort is part of a push by the White House to get 70 percent of adults vaccinated by the Fourth of July. To reach more Americans, the Biden administration has also coordinated with popular entertainment companies like NASCAR and country music channel CMT to promote vaccination.

“Social distancing and dating were always a bit of a challenging combination,” White House Senior COVID Advisor Andy Slavitt said during a press event Friday. He characterized the vaccine push through dating apps as those companies “responding to the president’s call to action” rather than calling it an official partnership.

“We have finally found the one thing that makes use all more attractive,” Slavitt said. “A vaccination.”



from Social – TechCrunch https://ift.tt/3fAIzD8 White House teams up with dating apps to give vaccinated users free perks Taylor Hatmaker https://ift.tt/347qNBS
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5 predictions for the future of e-commerce

In 2016, more than 20 years after Amazon’s founding and 10 years since Shopify launched, it would have been easy to assume e-commerce penetration (the percentage of total retail spend where the goods were bought and sold online) would be over 50%.

But what we found was shocking: The U.S. was only approximately 8% penetrated — only 8% for arguably the most advanced economy in the world!

We’ve had a close eye on the rate of e-commerce penetration globally ever since. Despite e-commerce growth skyrocketing over the past year, the reality is the U.S. has still only reached an e-commerce penetration rate of around 17%. During the last 18 months, we’ve closed the gap to South Korea and China’s e-commerce penetration of more than 25%, but there is still much progress to be made.

Image Credits: Accel

It’s clear that we are still in the early days of this megatrend and it is our strong conviction that it is inevitable that we will get to a point where at least half of every retail dollar is spent online over the next decade.

Below are five key predictions for what this road to further penetration will hold.

D2C retail will accelerate as merchants seek independence

Marketplaces have forged the path for e-commerce adoption among merchants of all sizes. They have raised significant capital and made the necessary investments in payments and logistics infrastructure, often subsidizing the consumer experience with free shipping or discounts to get them comfortable buying online.

The balance of power has shifted toward merchants, who previously didn’t have the picks and shovels to build their own e-commerce capabilities.

In recent years, merchants have pursued options aside from these marketplace aggregators. They have sought independence, opting to pay 5%-10% of their gross merchandise value (GMV) on their own technology infrastructure rather than paying the 6% to 45% (average of about 15%) in marketplace fees. Most importantly, they have prioritized owning the relationship with their end customers, given that customer loyalty and lifetime value is becoming ever more important in a hypercompetitive online market.



from Social – TechCrunch https://ift.tt/3wvazyV 5 predictions for the future of e-commerce Annie Siebert https://ift.tt/3fFfuGm
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Mental health app Wysa raises $5.5M for ’emotionally intelligent’ AI

It’s hard enough to talk about your feelings to a person; Jo Aggarwal, the founder and CEO of Wysa, is hoping you’ll find it easier to confide in a robot. Or, put more specifically, “emotionally intelligent” artificial intelligence.

Wysa is an AI-powered mental health app designed by Touchkin eServices, Aggarwal’s company that currently maintains headquarters in Bangalore, Boston and London. Wysa is something like a chatbot that can respond with words of affirmation, or guide a user through one of 150 different therapeutic techniques.

Wysa is Aggarwal’s second venture. The first was an elder care company that failed to find market fit, she says. Aggarwal found herself falling into a deep depression, from which, she says, the idea of Wysa was born in 2016. 

In March, Wysa became one of 17 apps in the Google Assistant Investment Program, and in May, closed a Series A funding round of $5.5 million led by Boston’s W Health Ventures, the Google Assistant Investment Program, pi Ventures and Kae Capital. 

Wysa has raised a total of $9 million in funding, says Aggarwal, and the company has 60 full-time employees and about three million users. 

The ultimate goal, she says, is not to diagnose mental health conditions. Wysa is largely aimed at people who just want to vent. Most Wysa users are there to improve their sleep, anxiety or relationships, she says. 

“Out of the 3 million people that use Wysa, we find that only about 10% actually need a medical diagnosis,” says Aggarwal. If a user’s conversations with Wysa equate with high scores on traditional depression questionnaires like the PHQ-9 or the anxiety disorder questionnaire GAD-7, Wysa will suggest talking to a human therapist. 

Naturally, you don’t need to have a clinical mental health diagnosis to benefit from therapy. 

Wysa isn’t intended to be a replacement, says Aggarwal (whether users view it as a replacement remains to be seen), but an additional tool that a user can interact with on a daily basis. 

“Sixty percent of the people who come and talk to Wysa need to feel heard and validated, but if they’re given techniques of self help, they can actually work on it themselves and feel better,” Aggarwal continues. 

Wysa’s approach has been refined through conversations with users and through input from therapists, says Aggarwal. 

For instance, while having a conversation with a user, Wysa will first categorize their statements and then assign a type of therapy, like cognitive behavioral therapy or acceptance and commitment therapy, based on those responses. It would then select a line of questioning or therapeutic technique written ahead of time by a therapist and begin to converse with the user. 

Wysa, says Aggarwal, has been gleaning its own insights from more than 100 million conversations that have unfolded this way. 

“Take for instance a situation where you’re angry at somebody else. Originally our therapists would come up with a technique called the empty chair technique where you’re trying to look at it from the other person’s perspective. We found that when a person felt powerless or there were trust issues, like teens and parents, the techniques the therapists were giving weren’t actually working,” she says. 

“There are 10,000 people facing trust issues who are actually refusing to do the empty chair exercise. So we have to find another way of helping them. These insights have built Wysa.”

Although Wysa has been refined in the field, research institutions have played a role in Wysa’s ongoing development. Pediatricians at the University of Cincinnati helped develop a module specifically targeted toward COVID-19 anxiety. There are also ongoing studies of Wysa’s ability to help people cope with mental health consequences from chronic pain, arthritis and diabetes at The Washington University in St. Louis and The University of New Brunswick. 

Still, Wysa has had several tests in the real world. In 2020, the government of Singapore licensed Wysa, and provided the service for free to help cope with the emotional fallout of the coronavirus pandemic. Wysa is also offered through the health insurance company Aetna as a supplement to Aetna’s Employee Assistance Program. 

The biggest concern about mental health apps, naturally, is that they might accidentally trigger an incident, or mistake signs of self harm. To address this, the UK’s National Health Service (NHS) offers specific compliance standards. Wysa is compliant with the NHS’ DCB0129 standard for clinical safety, the first AI-based mental health app to earn the distinction. 

To meet those guidelines, Wysa appointed a clinical safety officer, and was required to create “escalation paths” for people who show signs of self harm.

Wysa, says Aggarwal, is also designed to flag responses to self-harm, abuse, suicidal thoughts or trauma. If a user’s responses fall into those categories Wysa will prompt the user to call a crisis line.

In the US, the Wysa app that anyone can download, says Aggarwal, fits the FDA’s definition of a general wellness app or a “low risk device.” That’s relevant because, during the pandemic, the FDA has created guidance to accelerate distribution of these apps. 

Still, Wysa may not perfectly categorize each person’s response. A 2018 BBC investigation, for instance, noted that the app didn’t appear to appreciate the severity of a proposed underage sexual encounter. Wysa responded by updating the app to handle more instances of coercive sex. 

Aggarwal also notes that Wysa contains a manual list of sentences, often containing slang, that they know the AI won’t catch or accurately categorize as harmful on its own. Those are manually updated to ensure that Wysa responds appropriately. “Our rule is that [the response] can be 80%, appropriate, but 0% triggering,” she says. 

In the immediate future, Aggarwal says the goal is to become a full-stack service. Rather than having to refer patients who do receive a diagnosis to Employee Assistant Programs (as the Aetna partnership might) or outside therapists, Wysa aims to build out its own network of mental health suppliers. 

On the tech side they’re planning expansion into Spanish, and will start investigating a voice-based system based on guidance from the Google Assistant Investment Fund. 

 



https://ift.tt/eA8V8J Mental health app Wysa raises $5.5M for ’emotionally intelligent’ AI https://ift.tt/3fdFfyV

As Zynga impresses, rival mobile-gaming shop Jam City looks to list via SPAC

While it would be nice to write about something other than yet another tech company looking to list via a SPAC, the deals keep dropping, so our more traditional fare of covering startup trends will remain on hold for at least one day more.

This morning, we’re looking at the Jam City deal to merge with DPCM Capital. Jam City is a bit like Zynga, but unless you are a mobile-gaming aficionado, you might not have heard of it.


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You likely have not heard of DPCM Capital, either, but you know more about it than you’d think.

As Jam City notes in a release, the SPAC is “led by Emil Michael.” Michael is most famous for his time at Uber, where he served as chief business officer. He left the firm, as The New York Times wrote in 2014, after a board-called “investigation into [the company’s] culture and business practices” led to a “recommendation for Mr. Michael to exit Uber.”

He’s the gentleman who floated the idea of funding a team to “dig up dirt” of Uber’s “critics in the media,” as Buzzfeed News reported in late 2014.

Regardless, we’re not here to go back through Uber and its various cultural messes. We’re here to dig into the Jam City SPAC deck to see if the company is similar to Zynga. Why do we want to know that? Because Zynga has done great in recent quarters, including posting record revenue and bookings in the first three months of 2021.

With lots of folks stuck at home in the last year, gaming has done well in aggregate. And mobile gaming is a huge chunk of the larger gaming world.

More broadly, why do we care about Jam City’s SPAC transaction? Because the mobile gaming concern has raised more than $300 million, including a $145 million round in 2019 that TechCrunch covered here.

The company attracted capital from Austin Ventures, Netmarble, Bank of America Merrill Lynch and JP Morgan Chase while private, per Crunchbase, so we’re very curious if Jam City has enjoyed a Zynga-like last few years and how it’s being valued as part of the SPAC deal. Let’s find out.

Jam City’s SPAC transaction

When Jam City raised that huge 2019 round, co-founder and CEO Chris DeWolfe said that the “global mobile games market [is] consolidating.” At the time, the company intended to use some of its new funding to acquire other mobile gaming companies.



https://ift.tt/2YAJc8v As Zynga impresses, rival mobile-gaming shop Jam City looks to list via SPAC https://ift.tt/3oB4uhs

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