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Monday, June 28, 2021

Tapcart, a ‘Shopify for mobile apps,’ raises a $50 million Series B

{rss:content:encoded} Tapcart, a ‘Shopify for mobile apps,’ raises a $50 million Series B https://ift.tt/3jhz3Iu https://ift.tt/3jmHbYb June 28, 2021 at 05:42PM

Shopify changed the e-commerce landscape by making it easier for merchants to set up their websites both quickly and affordably. A startup called Tapcart is now doing the same for mobile commerce.

The company, which has referred to itself as the “Shopify for mobile apps,” today powers the shopping apps for top brands, including Fashion Nova, Pier One Imports, The Hundreds, Patta, Culture Kings, and thousands more. Following a year of 3x revenue growth, in part driven by the pandemic, Tapcart is today announcing the close of a $50 million round of Series B funding, led by Left Lane Capital. Having clearly taken notice of Tapcart’s traction with its own merchant base, Shopify is among the round’s participants.

Other investors in the round include SignalFire, Greycroft, Act One Ventures and Amplify LA.

Tapcart’s co-founders, Sina Mobasser and Eric Netsch, have worked in the mobile app industry for years. Mobasser’s previous company, TestMax, offered one of the first test prep courses on iOS, while Netsch had more recently worked on the agency side to create mobile and digital experiences for brands. Together, the two realized the potential in helping online merchants bring their businesses to mobile, as easily as they were able to go online with Shopify.

Tapcart’s founders Sina Mobasser and Eric Netsch at their Santa Monica HQ

“Now, you can launch an app on our platform in a matter of weeks, where historically it would take up to a year if you wanted to custom build an app,” explains Mobasser. “And you can do it for a low monthly fee.”

Tapcart’s platform itself offers a simple drag-and-drop builder that allows anyone to create a mobile app for their existing Shopify store using tools to design their layout, customize the product detail pages, integrate checkout options, include product reviews, and even optionally add other branded content, like blogs, lookbooks, videos (including live video) and more. Everything is synced directly from Shopify to the app in real-time, so the merchant’s inventory, products and collections are all kept up-to-date. That’s a big differentiator from some rivals, which require duplicate sets of data and data transformation.

Tapcart, meanwhile, leverages all of Shopify’s APIs and SDKs to create a native application that works with Shopify’s existing data structures.

Image Credits: Tapcart

 

This tight integration with Shopify helps Tapcart because it doesn’t have to focus on the e-commerce infrastructure, as the way things are structured around inventory and collections are roughly 90% the same across brands. Instead, Tapcart focuses on the 10% that makes brands stand out from one another, which includes things like branding, content and design. Its CMS allows merchants to create exclusive content, change the colors and fonts, add videos and more to make the app look and feel fully customized.

Beyond the mobile app creation aspect to its business, Tapcart also helps merchants automate their marketing. Through the Tapcart platform, merchants can communicate with their customers in real-time using push notifications that can alert them to new sales, to encourage them to return to abandoned carts, or any other promotions. The marketing campaigns can be automated, as well, which helps merchants schedule their upcoming launches and product drops ahead of time. The company claims these push notifications deliver click-through rates that are 72% higher than a traditional email or SMS text because of their interactivity and branding.

Image Credits: Tapcart

The platform has quickly found traction with SMB to mid-market enterprise customers who have reached the stage of their business where it makes sense for them to double down on customer retention and conversion and optimize their mobile workflow.

“Our sweet spot is when you have maybe a couple hundred customers in your database,” notes Netsch. “That’s a perfect time to now focus less on the paid acquisition portion of your business and more on how to retain and engage those existing customers, [so they’ll] shop more and have a better experience,” he says.

During the past 12 months, over $1.2 billion in merchant sales have flowed through Tapcart’s platform. And in 2020, Tapcart’s recurring revenue increased by 3x, as mobile apps grew even faster during the pandemic, which had increased consumer mobile screen time by 20% year-over-year from 2019. Mobile commerce spending also grew 55% year-over-year, topping $53 billion globally during the holiday shopping season, the company says. Tapcart’s own merchants saw mobile app orders at a rate of more than once-per-second during this time, and it believes these trends will continue even as the pandemic comes to an end.

Today, Tapcart generates revenue by charging a flat SaaS (software-as-a-service) fee, which differentiates it from a number of competitors who charge a percent of the merchant’s total sales.

Image Credits: Tapcart

With the additional funding, Tapcart plans to focus on its goal of becoming a vertically integrated mobile commerce suite of tools, which more recently includes support for iOS App Clips. It will also soon release an upgraded version of its insights analytics platform and will offer scripts that merchants can install on their mobile websites to compare what works on the site versus what works in the app.

Later this year, Tapcart plans to launch a full marketing automation product that will allow brands to automate and personalize their notifications even further. And it plans to invest in market expansions to make its product better designed for mobile, global commerce.

The funding will allow Santa Monica-based Tapcart to hire another 200 people over the next 24 months, up from the 70 it has currently. These will include new additions across time zones and even in markets like Australia and Europe as it moves toward global expansion.

Shopify’s investment will open up a number of new opportunities as well, including on product, engineering, business strategy and partnerships. It will also help to get Tapcart in front of Shopify’s 1.7 million global merchants.

“There’s still quite a lot of merchants that need better mobile experiences, but have yet to really double down on the mobile effort and get something like a native app,” notes Netsch. “There’s a lot of different ways and methods that merchants are experimenting with mobile growth, and we’re trying to offer all of the best parts of that in a single platform. So there’s tons of expansion for Tapcart to do just that with the existing target addressable market,” he says.

“We believe brands must be where their customers are, and today that means being on their phones,” said Satish Kanwar, VP of product acceleration at Shopify, in a statement. “Tapcart helps merchants create mobile-first shopping experiences that customers love, reinforcing Shopify’s mission to make commerce better for everyone. We look forward to seeing Tapcart expand its success on Shopify with the more than 1.7 million merchants on our platform today.”

 

Summer Sale: Save 10% on Extra Crunch membership

From now until July 5th, we are offering 10% off annual Extra Crunch membership. This offer is valid for readers in the U.S., Canada, Europe, UK, and Israel.

Claim the deal by navigating here.

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If you are a current monthly member and want to upgrade to annual, please reach out to customer support at extracrunch@techcrunch.com.

You can sign up for Extra Crunch and claim this deal here.



https://ift.tt/eA8V8J Summer Sale: Save 10% on Extra Crunch membership https://ift.tt/3qxik5r

Equity Monday: Big iPads, and Ballmer-era Google

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.

First, happy belated birthday to Chris Gates, one of the founding members of the show. His birthday was yesterday, and while he’s on vacation for two weeks, we still wanted to give him a shoutout. Chris is a very good person, a good friend, a good father, a good partner. He’s kind, supportive, and hilarious. And he has a very good beard.

But Equity waits for no single person, regardless of their merit, so on we went! Here’s today’s show:

The Equity crew is back on Wednesday for our deep-dive, this week focusing on the creator economy which should be good fun. Chat then!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!



https://ift.tt/eA8V8J Equity Monday: Big iPads, and Ballmer-era Google https://ift.tt/3hcfzT0

Surgical robotics company CMR raises $600M

UK-based robotics company CMR Surgical this morning announced a $600 million Series D. This latest round, led by Softbank’s Vision Fund 2 and co-led by Ally Bridge Group, joins an existing $384.8 million already raised by the Cambridge firm. It values the company at $3 billion.

CMR’s flagship product is Versius. The robotic system is designed to perform minimally invasive keyhole surgery, primarily focused on serious conditions like bowel disease or bowel cancer. The platform has been used globally and has thus far been involved in 1,000 surgeries, according to CMR’s numbers.

Four NHS (National Health Service) hospitals in the U.K. have enlisted the surgical platform, along with a slew of other locations in Europe, India, the Middle East and Australia. As CMR notes, the pandemic has resulted in a massive backlog in surgical procedures.

Like many other robotic surgical platforms, one of Versius’s primary appeals is a sense of accessibility – essentially helping level the playing field for complex procedures. The system is modular and portable compared to a number of competitors, further increasing that accessibility. The company says funding will go toward accelerating the platform’s global roll out.

“This latest financing equips CMR with significant funds to accelerate our mission of bringing Versius to hospitals worldwide, whilst providing full flexibility to achieve our goals,” CEO Per Vegard Nerseth said in a release tied to the news. “This major injection of capital that now values us at $3billion not only reflects the level of interest we have seen in our product, but also the scale of the business, and will enable significant technology developments and global expansion.”

Surgical robotics have been an increasingly popular category for VC funds of late. Recent rounds include $96 million for Memic, $10 million for ForSight and $15 million for Activ. Even by those standards however, this is a massive round for the category.



https://ift.tt/eA8V8J Surgical robotics company CMR raises $600M https://ift.tt/3jkluYP

Thursday snags $3.5M for a dating app that’s live once a week

Thursday, a dating app that wants to solve problems created by, well, too much time spent using dating apps, had raised a £2.5 million (~$3.5M) seed investment — a few months after launching (in May) its single-matching service in London and New York (and racking up over 52k downloads).

Last Thursday (June 17) it says that 110,000 likes were sent, resulting in 7,500 matches in a single day. How many actual dates occurred isn’t something it’s able to report, though.

The seed is double their initial target, with financing coming from Ascension Ventures, Best Nights VC (previously M-Venture) the investment arm of Jägermeister, Connect Ventures, plus early backers of CityMapper, TypeForm and FIIT (processed via SeedLegals).

Notable angels backing the dating platform include Tom Blomfield, founder of Monzo; Matt Robinson, founder of GoCardless and Nested; Ian Hogarth, founder of Songkick; Eldar Tuvey, founder of Wandera and Henry de Zoute, founder of LookAfterMyBills.

So what’s Thursday’s twist in a highly competitive space? The clue is in the name: This dating app is only live for one day per week.

Specifically the app opens for usage at 00.01 each Thursday morning so swiping is compressed into a few hours. All matches and conversations vanish at midnight. Hence users are pushed to act quickly — and “be a bit spontaneous”, as it puts it — if they want to get a date that night.

Profiles are thus fairly basic. Users can upload five photos (either from social media apps like Facebook or their phone’s camera roll) — and share some “topline information” about themselves.

The app also prompts them to answer a few questions — to give a flavor of their personality. And there’s a ‘Stories’ style feature to further show off who they are (again that content deletes after 24 hours).

Matches are based on what Thursday says is a “rough location” — so users being matched are able to figure out a convenient place to meet up. (The app specifies that users’ exact location is never shared.)

Thursday users are encouraged to only log on in the morning if they are free that evening to go out on a date.

Matches are also limited to x10 people a day — to avoid users just trying to maximize their chances by swiping to match with every user they see.

By putting some hard (time) limits on usage, Thursday’s pitch is that service scarcity can fix some of the problematic issues of overuse which can plague dating apps — leading to dating indecision and swipe fatigue. And, well, just waste a lot of people’s time.

It also reckons that by giving users a limited — one day per week — chance to book a date it can put some of the excitement back into digital dating. Which can otherwise, at times, feel pretty transactional.

Commenting in a statement, co-founder George Rawlings said: “Just four weeks into launching and we’re delighted to have a number of notable investors on board who really believe in our vision and back this app. We’ve got big plans with a clear mission, to change a culture of how people date. This is just the start and we will deliver. Dating apps just got exciting again.”

Flush with 2x the amount of seed funding they had initially planned to raise, Thursday’s team intends to step on the gas — and, well, there’s no way to patent this kind of idea so they will need to move quickly to stay ahead of any fast-follows.

No surprise then that the plan for the seed funding includes hiring a head of growth and a head of marketing, in addition to other senior roles and a number of tech hires — and coming up with what they dub as a “six figure marketing strategy”.

Expanding the app to other cosmopolitan cities elsewhere is also on the roadmap. But for now Thursday is only available for singles in London and New York.

Dating apps are already a diverse bunch — catering to all sorts of priorities, communities and kinks, including by applying various creative twists in the name of helping users find a match (such as by limiting who can send the first message; or hiding selfies until a few messages have been exchanged to push beyond superficial swiping).

Time limits on usage is another interesting idea. Albeit, how this type of ‘demand manipulation’ might affect the resulting dating power dynamics remains to be seen. And it seems noteworthy that the founders are both male.

“This is the first version of Thursday and it’s definitely not perfect so in the short term we are going to use this time to tighten up the app, introduce some new features and continue to develop our matching algorithm to make it the most efficient and intuitive matching system on the market,” added co-founder Matt McNeill Love in another statement. “We’re also going to be introducing a not been done before, revolutionary feature, which will really assist with matches resulting in dates.”

Given the accelerated usage timeframe and the vanishing messages Thursday clearly needs to pay careful attention to user security.

On this front it says all users are verified before they join — either by uploading their passport or driving license. It also says it takes abusive messages “extremely seriously” and does not tolerate hate speech, such as racism, body shaming or misogyny.

The pledge is that any such abusive users will be blocked and unable to return.

While the USP of the app is a ‘one day a week’ limit there is, of course, an option to pay to get a little more access.

Thursday says there are “a limited number” of VIP memberships available.

Users who choose to shell out a monthly fee will get their profiles boosted all day (“x60 increased visibility”); be able to send unlimited likes; and be able to unlock Saturday usage… albeit on the bonus day they are presumably limited to the pool of other VIP users as non-paying users are locked out til Thursday.

 



https://ift.tt/eA8V8J Thursday snags $3.5M for a dating app that’s live once a week https://ift.tt/3hjipFU

Jiji acquires Cars45 as it looks to build a future outside classifieds

Once heralded as disruptive marketplaces, classifieds are giving way to transactional marketplaces. Yet, some classifieds in the West like eBay have evolved with time, acquiring competition operating both models.

In Africa, this occurrence is happening in part, at least for the classifieds businesses that haven’t fizzled out. Jiji, one of the largest marketplaces for classifieds in Africa, is an example. Today, the company is announcing the acquisition of transactional car marketplace Cars45 for an undisclosed amount.

This news is important for many reasons. But before we get to that, Cars45 has been under different ownership within the past three years that people might have lost track of how many times the company was sold. So it’s important to clear that up.

In 2017, Cars45 raised $5 million from Frontier Car Group (FCG), the Berlin-based company that builds used-car marketplaces focusing on emerging markets. This made FCG the largest shareholder and parent company in the Nigerian car business. Two years later, FCG received $400 million from OLX Group (a division of Prosus, the Netherlands-based separate tech holdings of South African tech giant Naspers). The investment valued FCG at $700 million, with OLX Group taking a controlling stake. In 2020, OLX Group, via its OLX Autos brand, acquired Cars45 from FCG.

OLX Autos shut down FCG’s operations in Berlin this March but still kept control of Cars45 and two other brands: CarFirst in Pakistan and WeBuyAnyCar in the U.S. However, the announcement stated that OLX Autos’ new focus was on Asia and Latin America, which indicated plans to sell Cars45. With today’s news, it seems OLX Group might have washed its hands of most of its businesses in African markets, except South Africa. OLX Group did not immediately respond to a TechCrunch request for comment. 

That said, this is not the first time Jiji and OLX have done business. In 2019, the Naspers-owned online marketplace sold its assets in Nigeria, Ghana, Kenya, Tanzania and Uganda to the seven-year-old classifieds player. As a result, Jiji now commands 10 million unique monthly visits and three million active listings, according to the company stats.

Now, let’s get to why the acquisition is important.

In a call with TechCrunch, co-founder and board member Vladimir Mnogoletniy noted that vehicles listing is the second most popular category on Jiji. He claims the category has over $3 billion worth of listings out of the platform’s total listing exceeding $10 billion (real estate commands almost $7 billion). “We have leading positions in all markets we’re present in and are definitely the classifieds leader in the region. Also, we are probably the largest e-commerce company in Africa by GMV,” he continued.

Jiji

L-R: Anton Volyansky and Vladimir Mnogoletniy (co-founders of Jiji)

Therefore, the acquisition will see Cars45 grow the vehicles category. Furthermore, cars45 will merge its operations in Nigeria (primary market), Ghana and Kenya with Jiji as the classifieds marketplace wants to consolidate its position in the space. In addition, the acquisition of Cars45 will help mitigate problematic trust and safety concerns that have sometimes plagued Jiji and offer a different car buying and selling experience via its transactional marketplace model. In turn,  Cars45 users will benefit from Jiji’s dominance in online classifieds. 

“We will integrate this into one company because this acquisition has a lot of benefits for both. It’s a very common practice when marketplace and transactional business models work together as one project,” co-founder and CEO Anton Volyansky said regarding the integration of both platforms. “For instance, a seller of a car, it’s convenient to sell both ways via a marketplace or auction model. So, it would be like a seamless process for selling the car.”

According to Jiji CFO David Ojo, Cars45’s key value is its network of inspection centres where cars are inspected by more than 200 parameters. Unlike a classifieds marketplace where checks are inadequately carried out, transactional models employed by platforms like Cars45 ensure quality checks and detailed reports on a car’s condition with various databases.

Since its inception in 2014, Jiji is for the first time exploring a business outside its usual classifieds model, which has brought it profitability according to the company. Volyansky calls it a bold step and an important foundation “for building the future of the company.” But of course, the future isn’t void of competition. In fact, it gets more intricate as time goes on. Right now, Jiji has regional competitors in Swiss-owned ROAM and Jumia Deals, and horizontally, Autochek. Yet, Volyansky believes the acquisition of Cars45 might be the first of many transactional marketplace acquisitions to set Jiji apart from other players.

In terms of classifieds, we’re looking at opportunities, but we are already a leader in Africa, so I think there’s very limited space for whom to acquire. However, we’re primarily interested in deals like Cars45, where we bring our leadership positions from classifieds and acquire very close business models that give us exposure to the transactional marketplace. So for us, a major interest will be to acquire adjacent business models,” he explained.  

Soumobroto Ganguly, CEO of Cars45, commented: “We are proud to have built a trusted buying and selling experience in autos. It makes sense to combine online and offline expertise. Merging with Jiji is aimed at creating a new kind of automotive retail experience for users in Africa. We are confident of jointly building an African Champion in the O2O Automotive Sector. Together we look forward to making transactions transparent and convenient for our customers, dealers and franchisees across all our current and future markets.”



https://ift.tt/3x39mzh Jiji acquires Cars45 as it looks to build a future outside classifieds https://ift.tt/36b5JM9

Sunday, June 27, 2021

PayMaya owner Voyager Innovation raises $167M from KKR, Tencent and IFC, will launch digital bank in the Philippines

Voyager Innovations, the Manila-based owner of PayMaya, one of the Philippines’ most popular payment and financial services apps, announced today it has raised $167 million in new funding to launch more financial services, including a digital bank.

The raise includes $121 million in new funding, and $46 million from previously committed funds. Voyager announced in April 2020 that it had secured up to $120 million in investment commitments from PLDT, KKR, Tencent, the International Finance Group (IFC) and the IFC Emerging Asia Fund.

The latest capital came from existing shareholders PLDT, one of the country’s largest telecoms, KKR and Tencent, and new investors including IFC Financial Institutions Growth Fund, managed by IFC AMC, a member of the World bank Group (another one of Voyager’s investors).

Voyager’s total raised since 2018 now stands at $452 million.

Along with competitors GCash and Coins, PayMaya is one of the most popular financial “super apps” in the Philippines. Its services include a digital wallet, online remittances, bill payments, bank transfers, prepaid cards and an e-commerce feature called PayMaya Mall that connects consumers to 350 merchants.

In its funding announcement today, Voyager said it has applied for a digital bank license with Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank. A representative for the Voyager said the neobank will launch about six months after Voyager secures its license.

PayMaya has more than 250,000 digital-finance access touchpoints, like convenience stores, where users can top-up their accounts. Voyager says this is seven times the number of ATM and bank branches in the Philippines, making PayMaya more accessible than traditional banks, especially in remote or rural areas.

According to the BSP, about 71% of Filipinos were unbanked as of 2019. The BSP has set financial inclusion goals it wants to achieve by 2023, including onboarding 70% of Filipino adults to payment or transaction accounts, and converting 50% of total retail payments into digital form.

PayMaya and Smart Padala by PayMaya, its remittance service, claim its total registered users doubled over 18 months to 38 million as of June 2021. This year, Voyager also began expanding PayMaya’s services with working capital loans for micro- to mid-sized businesses through PayMaya Lending Corp, and PayMaya Protect insurance policies for health coverage and devices.



https://ift.tt/eA8V8J PayMaya owner Voyager Innovation raises $167M from KKR, Tencent and IFC, will launch digital bank in the Philippines https://ift.tt/3x6tKzC

Vietnamese investment app Infina lands $2M seed round

The pandemic has spurred interest in saving and investment apps around the world, especially ones geared toward newer investors. In Southeast Asia, startups in this space that have raised funding over the past few months include Ajaib, Bibit and Stashaway—and that’s just a (very) partial list. Now Infina, which calls itself the “Robinhood of Vietnam,” is announcing an oversubscribed $2 million seed round.

The seed funding, which was made in two closes, included participation from Saison Capital, Venturra Discovery, 1982 Ventures, 500 Startups, Nextrans, and angel investors like executives at Google and Netflix.

Infina launched its app in January 2021. Most of its users are between the ages of 25 to 40 and looking for alternatives to investing in long-term asset classes like real estate. The app requires a minimum contribution of about $25 USD and lets investors pick from assets including savings accounts, term deposits, fractionalized real estate and mutual funds, which founder and chief executive officer James Vuong told TechCrunch is currently the most popular asset class among Infina’s users. Infina works with financial partners like Dragon Capital, ACB Capital, Mirae Asset Fund Management and Viet Capital Asset Management.

The company notes that only about 3.2% of people in Vietnam have invested in stocks. But according to the Vietnams Securities Depository, about 500,000 trading accounts were opened during the first five months of 2021, a 20% increase from all of 2020. This, along with Vietnam’s high internet penetration rate (about 70% as of January 2020) and the fact that more than 3/4 of of internet users have used online financial services before, lays the groundwork for apps like Infina to take traction.

In statement about its investment, Saison Capital partner Chris Sirise said, “Retail investing in Vietnam is at an inflection point and we have seen multiple other emerging markets reach this break-out point. With an experienced team that is passionate about financial literacy and education, Infina is well-positioned to ride this wave of growth.”

Before founding Infina, Vuong was an engineer in Silicon Valley before returning to Vietnam to serve as vice president of investment and a Kauffman Fellow at IDG Ventures. He also founded a startup called Lana Group that was acquired by Line Group. Vuong told TechCrunch he believes Vietnam is entering a “‘golden decade’ of hyper uninterrupted growth as other Asian Tigers have had in the past,” and created Infina to gives retail investors a chance to partake in Vietnam’s financial trajectory.

While at home during various stages of lockdown in Vietnam, Vuong said many internet users began switching to digital services, including for investments. He added that a series of interest rate cuts by Vietnam’s Central Bank to help businesses during COVID-19 prompted many retail investors to look for alternatives with higher returns than term deposits.

“A majority of our users are new investors,” said Vuong. “Although they are familiar with savings, fixed income or mutual fund investing are relatively new to them.” The app’s interface and content is geared toward them.

When users register, Infina surveys their risk and return profile, then recommends an asset to begin with. As they continue investing, Infina’s users see information about the risk and return profile of each asset category and the issuer’s profile, investment strategy and historical performance. Like other investment apps with many newer investors, Infina also creates its own educational content, like blog posts, daily newsletters and videos.

“We are very transparent in communications on risk and returns, profits and fees, and that’s our advantage compared to other platforms,” said Vuong. He added that part of the new funding will be used to hire people with technical and investment backgrounds to further develop Infina’s KYC (know your customer) system to better analyze their risk appetite, as well as its system for evaluating each asset class.

Other investment apps in Vietnam include Finhay and Tikop. When asked how Infina differentiates from its competitors, Vuong noted its wide range of asset classes, low minimum and transparency about different types of investments. He added that Infina is not majority owned or tied to a particular issuer, “which allows us to be neutral and work with all of the country’s high-quality fund managers.”



https://ift.tt/eA8V8J Vietnamese investment app Infina lands $2M seed round https://ift.tt/3gZXJnl

Egypt’s Minly raises $3.6M to connect celebrities and fans through personalized experiences

In the past couple of years, we’ve seen a growing trend of creators adopting digital and social media, not just as a supplement to their media presence but also as a cornerstone of their personal brand.

The pandemic has surely accelerated creator economy trends. Many popular artists and figures have had to postpone concerts and live events, subsequently using social media to carry out these activities and engage their fans. Proliferating through Western and far East markets, the creator economy bug, which has made platforms like Cameo and Patreon unicorns, is beginning to take centre stage in MENA.

Today, Minly, an Egypt-based creator economy platform, is announcing that it has closed a $3.6 million seed round to allow stars across the MENA region to create authentic, personalized connections with their fans.

The round, which Minly says was oversubscribed, was co-led by 4DX Ventures, B&Y Venture Partners, and Global Ventures. It also included participation from unnamed regional funds and angel investors like Scooter Braun, founder of SB Projects and Jason Finger, co-founder of Seamless and Grubhub. 

Experts say time spent viewing social media surpassed time spent viewing TV within the MENA region. But one shortcoming with social media is that its content often feels mass-produced. When creators make posts, it’s most times void of personalization to the different categories of fans they possess. In a way, this dilutes the fan experience and limits the extent and number of ways the creator can monetize.

This is where Minly comes in. The company was founded last year by Mohamed El-Shinnawy, Tarek Hosny, and Bassel El-Toukhy. It provides tools for creators to craft what it calls ‘authentic connections’ with their superfans and audience at scale. “In short, our goal is to eventually deliver tens of millions of unique, unforgettable experiences to fans each year,” El-Shinnawy said to TechCrunch.

Shinnawy, who brings more than 15 years of media and technology experience to the table, is the chief technology officer at Minly. He sold his first company Emerge Technology to a U.S.-based media company. He has also delivered work for Hollywood’s top studios, such as Sony Pictures Entertainment, Universal, Disney, Fox, and Warner Brothers, while playing a role in the global expansion of Apple TV+, Disney+, and Netflix to the MENA region.

Minly

Mohamed El-Shinnawy (co-founder and CTO, Minly)

Minly has experienced rapid growth since launching late last year. It has more than 50,000 users along with an impressive list of popular regional celebrities.

On the platform, users can buy personalized video messages and shoutouts from their favourite celebrities, get unprecedented access to the talent they admire most, and celebrities, in turn, connect with their fans on a deeper level. Minly has also assembled a diverse roster of celebrities. They range from traditional movie and television stars and athletes to musicians and internet influencers. Some of these popular figures include Tamer Hosny, Fifi Abdou, Assala Nasri, and Mahmoud Trezeguet.

We think that we have already differentiated ourselves from other creator economy platforms in the region. We do this by offering the best catalogue of stars and user experience. And our entire team is working hard to grow this gap even further,” said El-Shinnawy on the crop of stars Minly has onboarded to the platform

The CTO further gave instances of the connection created by celebrities with their fans. Last year, Egyptian singer Tamer Hosny made a surprise appearance at two fans’ engagement party. Actress and dancer Fifi Abdou also sent a personal message to one of her biggest fans, who has Down syndrome.

Minly takes a small commission on transactions made through its platform. However, the majority of the transaction price, a figure Minly didn’t disclose, goes directly to creators. And at the same time, Minly urges celebrities to automatically donate a portion of their earnings to partner charities on the platform.

Minly’s knack for creating a personalized experience is why Pan-African VC firm 4DX Ventures invested. The firm’s co-founder and general partner Peter Orth, who will be joining Minly’s board, said the company is fundamentally changing the relationship between celebrities and fans in the MENA region. “The team has both the ambition and the expertise to build a full-stack digital interaction platform that could change the way digital content is created and consumed in the region,” he added. 

The creator economy market surpassed $100 billion in value this year and is still growing at an impressive rate. The pace of content creation will only speed up since surveys suggest that being a YouTuber or TikTokker or the most common term, a Vlogger is one the most desirable careers among Gen Zs. VC firms like a16z, Kleiner, and Tiger Global have also heralded this growth. They have considerably contributed to the more than $2 billion invested in creator economy platforms this year.

In MENA, there’s a huge opportunity for Minly. The region has over 450 million people, of which 30% are between the ages of 18 to 30. This demography is known to have a deep connection with social media, and El-Shinnawy believes MENA will soon contribute to a large part of the total creator economy. For Minly, the goal is to capture a huge portion of that spend and become a multi-billion dollar category-leading company. The creator platform has a case to do so. As it stands, the opportunity to build a creator economy one-stop-shop in MENA is huge compared to other regions that already have multiple entrenched incumbents. Also, Minly is one of the few platforms in the region with meaningful venture funding.

“The creator economy is in its infancy and growing at lightning speed. We have the opportunity to build this category’s first unicorn in MENA,” the CTO remarked.

With this investment, Minly is doubling down on building local celebrity acquisition teams in Egypt and other parts across MENA and the GCC, where it has seen significant traction. The company will also scale its engineering team to churn out more products to build a horizontal creator platform.



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Saturday, June 26, 2021

Equity Extras: Q&A from the live show

Hey Equity fam, we have a small clip of extra for you today. After our live show — listen to the recording here, it was good fun — we got to take a few questions from the audience, audio that was not included in the main episode as we didn’t have the time. But we’ve cut it out, given it a short polish, and have it for you today.

If you wanted even more Equity, here you go!

As a small note from the team, we know that this week’s Wednesday episode didn’t have the best audio quality. And to do a Twitter Spaces experiment the same week as a live show might have felt like a lot of change. Don’t worry, it just worked out that way. Equity will keep tinkering and having fun, but we’re back to normal next week.

Enjoy the Q&A, and we’ll see you at our next live show!

— Grace, Chris, Natasha, Danny, and Alex



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Startup leaders need to learn how to build companies ready for crisis

It’s been a tough year for business. From ransomware attacks and power outages to cloud downtime and supply-chain disruptions, it’s never been more important to communicate to customers and stakeholders about what’s going wrong and why. Yet, with partial data and misinformation often spreading faster than official word, it’s also never been harder to deliver accurate and timely messages.

Given the complexities of this environment, I wanted to convene a group of specialists to talk about what the future of crisis comms holds for startups, technology companies, and business more broadly. We had a great set of three folks discuss how to build resilient orgs, handle the decentralization going on in tech today, and how to prioritize crisis management over the mundane tasks every day.

Joining us were:

  • Admiral Thad Allen, who as commandant of the Coast Guard and during his career, was commander of the Atlantic coast during 9/11, and led federal responses during Hurricane Katrina, the Deepwater Horizon oil spill, and the 2010 Haiti earthquake.
  • Ana Visneski, who worked with Allen on building out the Coast Guard’s first digital presence as an officer and chief of media, is now senior director of communications and community at H20.ai and was formerly global principal of disaster communications for Amazon Web Services.
  • John Visneski is the chief information security officer (CISO) at Accolade, and was formerly director of information security at The Pokémon Company. He served 10 years in the U.S. Air Force, where he served as chief of executive communications, and yes, is Ana’s brother.

This discussion has been edited and condensed for clarity

Prepping an organization for catastrophe

Danny Crichton: You’ve all been in disaster communications, in some cases for decades. What are some of the top-level lessons you’ve learned about the field?

Admiral Thad Allen: Great communications and great communications people can’t save a dysfunctional organization. There’s only so much you can do with what you’ve got. I want to say that as a proviso because I’ve seen a lot of people try to communicate their way out of a problem.

The big difference between Katrina in 2005 and the Deepwater Horizon oil spill in 2010 was Katrina was before Twitter and Facebook and Deepwater was after it. In the old days, you went out and did your job. There might be an after-action report, but it was pretty much done within your organizational structure.

I’m going to really date myself. We sent forces into Somalia [around 1993]. It was the first time in history that CNN watched the people come to shore from the amphibious vehicles and I knew life had changed dramatically. There is no operation that takes place these days where the public is not part of the operation, part of the environment, part of the outcomes that are generated. If you fail to realize that, you’re going to fail right away. Anybody who’s got a cell phone enters your world of work.

So the question is, how do you think about that? That’s resulted in a significant Black Lives Matter movement with George Floyd and somebody happened to be there with a cell phone, and if that had not happened, that situation probably would not have turned out the way it did. So the question is what are we to make of that loop?

John Visneski: Generally speaking, your organizational hierarchies are not designed to be optimized for a crisis. They’re designed to build consensus. They’re designed to understand budgets. They’re designed for long-term planning. It’s the same in the military and it’s even worse in the private sector. And so there’s no concept of situational leadership. There’s no concept of who’s actually in charge during a particular crisis.

In recent attacks, the folks that were in my position, didn’t do a good enough job of explaining the technical aspects of what was going on in such a way that their organization could channel that into something that could then be translated to the public.

Ana Visneski: That’s actually called the theory of excellence in crisis communications, which is basically you have to have this transparency and this well-organized system before something goes wrong. And almost everyone doesn’t.

A good example is in 2017, when S3 broke for AWS, which is how I ended up doing crisis comms for them. I looked around and I said, “Well, why don’t we use our crisis comms plan?” And my boss said, “Our what?” And so I ended up building the critical event protocol and I built it based off the Incident Command System (ICS) that is used by federal agencies during a disaster. And essentially it was a big red button that says “Stop! Everyone get on a call, figure out who’s in charge of responding” that just unifies everyone.

Admiral Thad Allen: I’ll give you a classic antidote because I’ve written about it quite a bit. When I was going to the Sloan School at MIT, in December of ’88, we went down to New York and visited a bunch of CEO’s, and one of the days we went across the river to see the CEO at Exxon, a guy named [Lawrence G. Rawl]. During the discussion, I asked, “Bhopal was the biggest industrial accident in the history of the world today. As a CEO running a big corporation, have you thought about what happened if you had a similar Bhopal-type situation?” He spent 20 minutes going over their extremely well-thought-out communications plan and four months later, the Exxon Valdez ran underground and they actually failed at everything.

A Lockheed C-130 plane sprays dispersant over the Exxon Valdez oil spill in Prince William Sound, Alaska, USA. Image Credits: Natalie Fobes via Getty Images.

John Visneski: Your plan that you write down on paper is only as good as how much you practice it. Right? One of the things that the military typically is pretty good at is practicing before you play. Doing mock drills, doing tabletop exercises, having a red team that throws things at you that you might not expect.

Admiral Thad Allen: Yeah. I’ve dealt with a couple of large firms that have had very big problems. The default setting, if you haven’t thought about this ahead of time, is they go to a subject matter expert and hold them accountable for what the organization should do. That is not the way to do it. You need a designated person to create unity of effort. It’s got to involve the C-suite, and it’s got to involve not only your clients and your stakeholders, but your supply chain.

Ana Visneski: We keep talking about training, but just having a plan in the first place is critical. With some of these big companies, they’re so siloed that when something like this happens, everyone’s trying to do the right thing and running into each other. If you don’t have redundancies built in and backups for your backups, you’re going to go down hard.

You’ve got a plan for what happens if your main spokesperson was the incident? Or what happens if there was an earthquake and, all of a sudden, you don’t have your C-suite to talk? And John can talk a lot about this, but the last mile is another problem with crisis comms. If it’s a big disaster, you’ve got to plan around your tech, how are you going to get the information from the field back to where you can actually broadcast it out to people?

Admiral Thad Allen: When I got called to go to Katrina, I was on my way to the airport and the last thing I did was I sent my son along to a Best Buy to get me a mobile handheld and a SiriusXM receiver, so I could have awareness of what was being done. As far as the communications, a thing like that was the smartest thing I did.

Thad Allen (center) in the disaster aftermath of Hurricane Katrina, September 2005. Image Credits: Justin Sullivan

John Visneski: One of the biggest challenges is this all needs to be resourced, right? Your company needs to actually dedicate resources to that prior planning. To being able to build out the infrastructure, to being able to have hot-swap data centers and locations and things like that. And sometimes whether it’s your board or whether it’s your CFO or whoever’s holding the purse strings for your organization, it’s really hard to justify the return on investment that a lot of folks see as sort of a rainy day fund.

So it’s incumbent upon the leadership of the organization, particularly the leadership that is going to be involved in some sort of a disaster response to get ahead of those conversations and understand how disaster response can do things to protect revenue.

Ana Visneski: Because of the pandemic, we’ve had almost two years of shit hitting the fan. So we’re seeing a lot more C-suite leaders going, “We need to know how to be prepared for what happens next.”

Communicating in a decentralized and flat world

Danny Crichton: If you think about the last 20 years, particularly in the private sector, we went from a model of headquarters buildings, large leadership structures all in one place, oftentimes a fairly hierarchical model of how to operate a company, etc. Today, we’re seeing decentralization, and a sort of horizontalness in a lot of companies. How does this new culture affect disaster communications?

Ana Visneski: Well, now that there is this decentralization, it’s incredibly difficult to wrangle all of your people and get everyone on the same page. And you have to think about what happens if Slack goes down. It goes back to redundancies — you have to have multiple ways of contacting your people.

Along that line, I am not a fan of companies saying is, “You can’t post on social media or you shouldn’t do this or that.” Because all that does is sows distrust. Instead, I am a big fan of training your people to do it right. Of course, you have to have company policy that if someone during a crisis is posting secure information or lies, or is just being a racist jerk, obviously there are consequences, but training your people to use the tool right, helps with transparency.

Admiral Thad Allen: My motto when I was commandant was transparency of information breeds self-correcting behavior. If you put enough information out and everybody holds it, organizational intent becomes embedded into how people see the environment they’re in. They’re going to understand what’s going on and you won’t have to give them a direct order to do the right thing. They’ll understand that. And I think that’s really important.

In the military, we have something called a “common operating picture,” and it’s basically a display where everybody’s at, what they’re doing at any one time. It’s not an order. It’s not hierarchical. Instead, it provides context and provides a window into what you’re doing.

So I think there’s a difference between creating a common operating picture and what actually constitutes authority. If you can separate those, the more you put into the former, the less of the latter you’re going to have to do.

John Visneski: I’m based in Seattle. We have an office in Philadelphia, an office in Houston, an office in San Francisco, and an office in Prague. There’s people in all those offices who are critical for our business. The advantage we have is the advantage that a lot of tech organizations take for granted, which is we were already going through a digital transformation, or we were already on the backside of digital transformation. Cloud focus, Software as a Service, Slack, email, Signal on my phone, a million different ways for me to communicate with my team, communicate with leadership and things like that.

What we take for granted is, there are a lot of organizations in the United States and worldwide that have not gone through that digital transformation. No offense to the military, but when I was at the Pentagon, if email went down, you might as well play hockey in the hallways because no work was going to get done.

Admiral Thad Allen: You can add losing GPS as well.

John Visneski: Exactly. So a lot of organizations have had to come to terms with how do they communicate when they’re distributed like that? The answer isn’t one-size-fits-all. It might be different for an Accolade, different from a Facebook, different from a Twitter, different from a Bank of America or a Bank of New York Mellon. Just based on what their architecture looked like pre-pandemic, what their architecture looks now, and what sort of investments they’ve made to future-proof themselves, should something this ever happen again.

Ana Visneski: I was on a Twitter Space recently, and I was talking that in the United States, especially those of us who are in the tech industry, we tend to take for granted all of this stuff. There are all of these assumptions that are made. In reality, not only do you have to deal with the last mile if a disaster happens, but you also have to deal with the fact that not everyone has one of these super computers in their pockets all over the world.

Residents walk past a downed cell network tower in Polangui, Albay province on December 26, 2016.
Image Credits: CHARISM SAYAT/AFP via Getty Images

Talking about technological arrogance, but people forget radio. People forget that there are these older technologies that in a disaster are still where you’re going to go. John makes fun of me all the time, because I’m trying the new thing every time it comes out, but you can’t forget the stuff that works like radio in the morning.

The crisis of crises and how to handle the infinite range of disasters today

Danny Crichton: The next subject I want to get to is the range and diversity of crises that are hitting organizations today. The Admiral had brought up Exxon and ’89. Okay, you’re an oil company, you have an oil spill — I wouldn’t call it predictable, but you can certainly create a plan. You can say, “Here’s how we need to communicate. Here’s how we handle this.”

But look at the range of stuff we’ve had to deal with in the last year. Everything from a pandemic to Texas power outages, wildfires in California, TSMC is dealing with a drought in Taiwan, you’ve got internal employee hostile workplace protests, external protests, ransomware attacks, bitcoin heists, and on and on.

Ultimately does the same toolbox work no matter what the crisis is? Or do different types of crises demand different kinds of responses? And how would you know the difference?

Admiral Thad Allen: I taught crisis leadership in large complex organizations for four years at George Washington University. In the last class, I told my students to write down the worst catastrophe they could ever think would happen that you have to go and wake up the president in the middle of the night. They all wrote it down on a piece of paper, folded it up and put it in a ball cap. I shook it up and pulled one of the pieces out.

I said to the class, “Just listen to what I’m about to say. Thanks for getting up and coming in early to the White House Press Corps office this morning. I want you to know the president was notified at 4:30 this morning about what happened. He and the First Lady were overwhelmed with grief for the loss of life and the impact on the community. We’ve set up a schedule where we’re going to brief the president every four hours and a meeting following the brief to the president. There’ll be a brief to the press 30 minutes after that. The cabinet’s been advised.” And I went on and on and on.

I finished and I said, “What do you think about that?” And James Carville, who was visiting, said, “It’s great” and he asked, “Well, what was the event?” And I said, “I never opened the paper.” So to your point there’s some things that are just a goddammed no-brainer.

Ana Visneski: I took the ICS [Incident Command System] structure and rebuilt it basically to work in the corporate setting. And the reason that’s so effective is it’s built to be flexible. You have someone who’s in charge overall, you have someone who’s in charge of communications. You have someone who’s in charge of logistics. You have someone who’s in charge of security, and it flexes up or down. And so no one can necessarily predict a “black swan” event. But you can build a core response system that is as close to all hazards as possible.

Admiral Thad Allen: Predict complexity.

Ana Visneski: Yes. And you predict that it will be complex and that nothing goes to plan. We’ve made a lot of jokes that nothing prepared me for a wedding during COVID like having been a first responder. Well, my brother got married last year too. And I did a little bit of help there with my background, but for my wedding, nothing was the same. And it’s the same thing during a disaster. Katrina is different from Gustaf. Gustaf was different from Sandy, but they’re all hurricanes at their core.

Admiral Thad Allen: I just spent an hour with a bunch of government employees earlier today on the same topic. What happens in a “complex” situation is that existing standard operating procedures, legal theories, frameworks, and governance break down and do not work, and they have to be replaced with some other way to deal with it.

ICS allows you to do, and with the right standard doctrine, you can get pretty close to a 50-60% solution that will get you headed in the right direction while you figure out the rest of it.

John Visneski: I’ll say at least from the tech side of things is those plans need to abstract technology almost entirely. Take it up to a level where it doesn’t matter what your communications method is from a technological standpoint. Don’t assume that you’re going to have the bits and bytes flowing the way that we do now. Don’t assume cell towers, don’t assume power, don’t assume any of those sorts of things, because the second that you predicate your plan on those assumptions is the second that the complexity is going to come in and tell you you’re wrong. The 40% that is not planned for is going to become what outweighs the 60%.

Ana Visneski: I think one of the things the tech industry kind of runs into is we are so reliant on the technology now that we can’t imagine what we’d do without it. At the end of the day, good crisis comms relies on good people, and good crisis and disaster response relies on the people doing it.

So you have to build your plan around the people and the structure there, and then use the technology at hand during the event to augment what plans you already have for people. Because by the time I’d write a crisis plan for something. If I included Twitter and blah, blah, blah, well, one like John just said, it’s going to break. Or by the time we have the crisis, the technology has changed and we’re using something else. So you got to write it from a perspective of people first and tech is the tool.

Prioritizing crisis management over the day-to-day metrics of a business

Four business people used ropes to tighten their money bags, economic austerity, reduced income, economic crisis

Image Credits: VectorInspiration via Getty Images

Danny Crichton: Okay, so obviously we should all spend more time figuring out how to communicate better during crises. But everyone is busy, and every person is trying to hit whatever metric they need for the quarter. How do you get a low-risk but hugh-impact issue like crisis management on the priority list?

John Visneski: For a B2B organization or a B2C organization or really anybody that’s selling a particular service, typically you need to lean on compliance requirements first. So customer contracts are going to say, from a security perspective, your data security addendum, your privacy addendums, and things that are generally going to have some language that centers around having a business continuity plan, a disaster response plan, an incident response plan, a cyber incident response plan, and then the really good contracts are the ones that actually specify you’ll do it no less than two times a year. So the first thing to lean on is those compliance requirements, because those will actually directly tie to revenue.

Then the secret sauce and what a lot of us in the cyber community are trying to get better at is how do you take that next step? We know that compliance does not necessarily mean security. We know that just because we have a written business continuity plan and that we say we exercise it, we present a report that says we exercise it, doesn’t necessarily mean we’re going that next mile to make sure that we train our employees. The education piece of it is really what we need to advocate to get additional resources for.

Admiral Thad Allen: My pitch to these big companies is if you’ve got a regulatory requirement, you have a plan that’s required. Why would you fund that and not take the opportunity to add just a little bit of incremental effort and resources to take advantage of the natural cycle that you’re required to do anyway?

Ana Visneski: Hit them where the money is, because a good crisis plan can range in price. Let’s say you spend $200,000 getting your system set up. If you’re looking at these companies, a disaster or a crisis could tank your company. Or it could cost you millions and millions of dollars if you’re not prepared. So at the end of the day, the ROI is huge.

And like I said before, with COVID having just happened, I think more of leadership is aware that, “Hey, we’re not crisis proof just because we’re a gaming company or just because we’re whatever.” No, one’s crisis proof. So at the end of the day, you’re going to save money. If you just do it in the first place, because then you just have to update it every year, and you just have to do a little bit of training. The biggest cost is on the front end and then just maintaining it after that and updating it.

John Visneski: Everyone knows that if something bad happens, if you don’t have plans in place, you’re going to lose a shit load of money. But let’s think about it from a consumer standpoint. Generally speaking, your average consumer is becoming much more conversant when it comes to privacy.

Moving forward, it isn’t enough just to say, “If we don’t have this, things can go really bad.” It’s also to say, “We can leverage this if we do this really well. And if we can advertise to our customers, whether it’s another business or whether it’s the consumer that not only do we protect your data, but also we have all these plans in place in order to react to complex situations.” You can actually use that as something that separates you from your near-peer competitors in the business world.

Ana Visneski: At the end of the day, if the trust isn’t there in the tech and the trust isn’t there that you’re doing the right things, it doesn’t matter what you do when a crisis hits. You’re already in the trashcan.



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