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Alex Mike

St. Louis-based voice assistant startup Disruptel is announcing that it has raised $1.1 million in seed funding.

The money comes from an impressive group of investors who seem well-aligned with what the startup is aiming to do — namely, build a voice assistant that can provide detailed information about what’s happening on your TV screen. Those investors include PJC and Progress Ventures (which led the round), along with DataXu co-founder and former CEO Mike Baker, Siri co-founder Adam Cheyer, Sky executive Andrew Olson and DataXu co-founder Bill Simmons.

Disruptel CEO Alex Quinn told me that he began to pursue the idea in high school — the initial idea was more focused on TV gesture controls, but he decided that there was a bigger opportunity in the fact that “smart TVs don’t know what’s going on on their own screen.”

So he said Disruptel has built technology that has “a contextual understanding of everything that’s happening on the screen — every product, all of that data.” So for example, you could use the technology to ask your TV, “Who is the person in the brown shirt?”

Quinn’s description reminded me of Amazon’s X-Ray technology, which can tell you about the actors on-screen, as well as additional trivia about whatever movie or TV you’re watching on Amazon Prime. But he said that Amazon’s solution (as well as a similar one from Google) involves “static data — the videos have all been pre-processed.” With Disruptel, on the other hand, “everything is happening in real time,” which means it could theoretically work with any piece of content.

Disruptel’s flagship product Context is a voice assistant designed to work with smart TVs and their remotes. Quinn said he’s hoping to partner with smart TV manufacturers and streaming services and get this into the hands of viewers in the second half of this year.

In the meantime, the company has already created a Smart Screen extension for Google Chrome that you can try right now (using the extension, I successfully identified the actors on-screen during multiple scenes of an episode of “The Flash”). Quinn said the company is using the extension as way to test the product and gather engagement data.

Baker (who sold his adtech company dataxu to Roku in 2019)  said that he was convinced to back the company after seeing a demo of the product: “It was interesting to see the power, the fluidity fo the experience.”

He also suggested that Disruptel’s tech creates new opportunities to improve on the smart TV advertising experience, which he described as largely consisting of “crap” — though he also pointed to Hulu as an example of a service that can be successful with “non-intrusive advertising and interstitial ads.”

Asked how a high school student could create this kind of technology, Quinn (who is now 21) said, “We had to learn. Our team is very focused on machine learning, and our machine learning engineers were reading research paper after research paper. We think that we have found the best research solutions.”

He added that if Disruptel had followed the leads of the big players and focused on pre-processing content, “We would never even have begun that journey.”

Alex Mike Mar 12 '21
Alex Mike

Yesterday, the European oil and gas major producer Shell announced the latest cohort selected to participate in its Shell GameChanger Accelerator (GCxN), focused on supporting companies developing tech for the transition away from fossil fuels.

The three companies will have access to technical resources through Shell that can serve to aid in their commercialization.

“GCxN’s fourth cohort will help prove that electrochemistry technologies can replace carbon-intensive legacy processes. As renewable energy costs continue to drop, cross-industry initiatives and partnerships will prove that it’s possible to cost-effectively scale these technology applications and achieve real-world impact,” said Haibin Xu, Shell’s GCxN program manager.

Shell’s acceleartor provides startups selected for the program with up to $250,000 in non-dilutive financing. Participants are nominated by network partners coming from incubators, accelerators, and universities and then are subjected to a screening process by Shell and NREL. 

Graduates of the program have raised $52 million in the three prevoius batches and have added 51 new jobs to the green economy, according to a statement.

Each of the new companies in the cohort are focused on creating ways to reduce carbon emissions in sectors that are carbon intensive and hard to transition to more sustainable practices, according to a statement. 

So without further ado, here’s the latest batch of startups backed by Shell:

  • Air Company — This Brooklyn-based business is turning carbon dioxide into alcohols, spirits, fragrances, sanitizers and products for consumer industries. It eventually wants to get into the synthetic fuel business. 
  • Ionomr Innovations — Green hydrogen production, hydrogen fuel cells and carbon capture technologies require ion-exchange membranes and polymers, and this Vancouver-based company wants to make those components cheaper and more environmentally friendly.  
  • Versogen Hailing from President Joe Biden’s home state of Delaware, the company formerly known as W7 energy is producing high performance hydroxide exchange membranes to drive down the cost of fuel cells. 

“Almost every aspect of our modern lives depends on certain materials and fuels, but with great consequence. For example, the American manufacturing industry is on-track to become the nation’s largest source of greenhouse gas emissions within the next ten years,” said Katie Richardson, GCxN program manager at the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL), in a statement. “The selected GCxN startups are restructuring essential building blocks to reduce the carbon impact of essential goods and services.” 

Alex Mike Mar 12 '21
Alex Mike

From the point of view of a consumer, customer service sometimes feels like a monolith, but behind the scenes it can be a very fragmented business, with dozens of companies providing various different tools to help agents do their jobs.

Today, a startup founded by three Stripe alums that has set out to build a platform that helps organizations manage that spaghetti of customer service IT, and use it more efficiently, is announcing a round of funding to continue growing its business.

Assembled, which has built a platform that it describes as the “operating system” for support teams, has raised $16.6 million, a Series A that it plans to use to continue expanding its team and platform, and to bring on more customers.

The round is being led by Emergence Capital, the VC that specializes in enterprise startups, backing other communications-centric companies in its time like Salesforce, Zoom, Yammer, ServiceMax, SalesLoft and Lithium. Stripe, Basis Set Ventures and Felicis Ventures also participated. Stripe has a strong connection to Assembled. It is a customer. It led Assembled’s $3.1 million seed round a year ago.

And, it was the company where the three co-founders met and built the earliest version of the product it offers today. CEO Brian Sze was one of the first employees, overseeing business operations, where he built the customer support platform that inspired him to eventually leave to found Assembled. His two co-founders, brothers Ryan and John Wang, were engineers at the payments and financial services behemoth.

Assembled’s current platform is priced in tiers starting at $15 per agent per month. Integrating with Salesforce, Zendesk, Intercom, Kustomer, Gladly and other services by way of API integrations, it provides not just a way to manage and view customer support data from different sources in one place, but alongside that it provides tools focused on the support teams themselves. This includes tools to manage and roster teams, analyze team performance, and forecast demand depending on different factors in order to be better prepared.

As with all other aspects of how organizations work, customer service and people management are being digitally transformed. Typically, Sze said that many companies still use spreadsheets to manage and plan customer support rosters. That is now gradually shifting into what he describes as “support ops” where a strategic person is tasked not just with handling what is happening with incoming customer support right now, but also needs to figure out what will happen in the next year, and the tools that might help cope with that. “That is our emergent buyer,” Sze said.

“The sheer number of channels being supported is much bigger, when you consider email, messaging, phone lines, social media and more,” said Sze, adding that the pandemic had a particularly strong effect on Assembled’s business. It saw a big bump in especially in Q3 of last year, when its customer base doubled. “I think it came down to support being one of the most critical teams at the organization.”

Assembled today has a number of tech companies, and tech-first consumer companies as customers, including Stripe, GoFundMe, challenger bank Monzo, Google-owned Looker, D2C clothing brand Everlane and Harrys. It has grown customers five-fold in the last year, said Sze, while revenues have grown 300% (absolute numbers for both were not disclosed).

The concept of an “operating system” for customer support makes a lot of sense when you think about how the role has evolved over the years.

In the decades before the internet and digital interactions became the norm, support either focused on in-person visits, or phone-based interactions where you might find yourself calling toll-free numbers, sitting on hold for a long time, maybe being shuffled from one person to another depending on the nature of your issue.

Over time, those systems picked up some automated responses and companies started getting better systems in place to triage those calls. Then, as marketing became “marketing tech” and sales took on a software life of its own, those customer support people started to pick up more responsibilities, not just listening to customers but turning around and offering to sell them things, too, or take stock of customer satisfaction and overall sentiment. Then more channels for connecting came with the internet. Then came more efficient tools, cloud-based services, mobile services, and more to handle all of the above, and so on.

All of these iterations often came with different pieces of software, and while some companies have set out to build one-stop shops to take everything on, Assembled takes a Slack-like approach, making it easy to bring in data and manage different tools from one place, providing a place to bring them all together to help them work more harmoniously. At the same time, it provides a way to manage the teams of people who are there to work with those pieces of software. This is because, when it comes to customer support, it’s always as much about the teams running it as it is the software they are using (hence: “assmebled”).

The company’s approach has been especially relevant in the last year. Not only have teams — including customer service teams — been forced to work remotely, but they have generally seen a surge of traffic from customers who are going online for all of their services, and using digital tools when they need to get in touch with organizations. Still, the opportunity for Assembled is that by and large, there are still a large proportion of businesses that are still playing catch up here.

“Today’s customer support teams operate in a dynamic, increasingly remote environment vastly different from that of a decade ago,” said Jake Saper, Emergence General Partner, in a statement. “But it’s shocking to learn how many support teams are still operating out of spreadsheets. At Emergence, we believe that Support Ops will become a critical complement to support teams, much like DevOps has become for developers. Having initially built their product to manage Stripe’s support function, we believe the Assembled team is the world’s best to build the core operating platform for Support Ops.”

Valuation is not being disclosed.

Alex Mike Mar 12 '21
Alex Mike

For the last few years, ByteDance, the parent company of short video app TikTok, has been working to diversify its revenue streams beyond advertisement and find more ways to monetize its hundreds of millions of users. One area it is targeting is gaming, which has historically been a lucrative business in China’s internet economy.

China is the world’s largest gaming market, generating revenues of $40.85 billion in 2020, according to market research firm Newzoo. The United States trailed behind at $36.92 billion.

But competition is also intense. Giants Tencent and NetEase have long dominated and smaller players like Mihoyo and Lilith are making breakthroughs. According to market research firm Analysys, Tencent occupied over half of the Chinese gaming market in 2019, while NetEase and 37 Interactive respectively commanded around 16% and 10%, leaving little breathing room for smaller rivals.

Regardless, ByteDance is forging ahead, giving a brand name, Nuversegame, and a website to its gaming business for the first time last month. Its strategy consists of a genre-spanning portfolio, a hiring spree, a proven monetization scheme, and a focus on both the domestic and overseas markets. During his short-lived stint with ByteDance, Kevin Meyer was put in charge of multiple overseas businesses, including gaming.

ByteDance, the David when it comes to games, seems undeterred by the Goliaths. As one of the company’s gaming executives Yan Shou wrote in a social media post a year ago: “Gaming is a content business. A monopoly is difficult to maintain [in this industry] as long as there is patience.”

Battle for talent

In recent years, ByteDance has hired a large number of ex-employees from the BAT, the acronym for three of the most prominent tech firms in China: Baidu, Alibaba, and Tencent. Yan himself worked on strategy at Tencent for over two years before joining ByteDance in 2015. While poaching and job-hopping are common in China’s fast-changing tech industry, ByteDance is known for doling out generous paychecks and many tech workers are lured by the prospects of receiving employee options before the firm goes public someday.

Ambitious staff may also feel stagnant after a long period at Alibaba and Tencent, which are both over 20 years old and where room for career advancement is limited. ByteDance, in comparison, is merely nine years old and is still in a fast-growth phase, a Beijing-based headhunter for technology firms tells TechCrunch.

“The current stage of ByteDance and the new businesses it is incubating provide the right platform for these people to achieve their ambitions,” the headhunter says.

In gaming, too, ByteDance has gone on a recruiting spree. The company’s gaming headcount numbers nearly 3,000 today, up from only 1,000 last year, according to a person with knowledge. These employees are scattered across China’s major tech hubs, from Beijing, Shanghai, Hangzhou to Shenzhen, working in various gaming studios under ByteDance.

How big is a 3,000-person team? 37 Interactive, the third-largest gaming firm in China, had around 4,000 gaming staff as of January, according to a company executive. It took the company 10 years to reach this scale. ByteDance began exploring games only around five years ago.

ByteDance declined to comment on the story.

Factory of games

Being late to the game could bring advantages. Having seen how Tencent and other predecessors tackle the gaming market allows ByteDance to learn. For one, ByteDance is working on a diverse range of genres simultaneously, from disposable mobile games to indie titles with unorthodox design or topics. This makes ByteDance different from Tencent, says Daniel Ahmad, a gaming analyst at Niko Partners. Tencent, the world’s largest gaming firm, cut its teeth on board and card games in the 2000s before gradually expanding into other genres.

Of course, only a deep-pocketed upstart like ByteDance could strive for a diverse portfolio from day one. With a well-oiled advertising business built upon its short video app Douyin and news aggregator Toutiao, as well as over $7 billion raised from equity funding over the years, ByteDance has been able to fund its horizontal expansions in not just games but also education and SaaS.

Aside from hunting down talent from other tech giants, ByteDance also relies on swallowing smaller companies to boost its workforce. Since 2018, ByteDance has invested in at least 11 gaming companies, six of which were full acquisitions, according to public disclosures. The acquired assets and talent were subsequently incorporated into ByteDance’s gaming studios. Acqui-hiring is an old and proven formula at ByteDance. Kelly Zhang, the product manager credited for taking Douyin, the Chinese version of TikTok, off the ground, also joined after her photo-sharing startup was bought by ByteDance.

Like many gaming firms, ByteDance’s monetization scheme is two-pronged: distribution of third-party titles and original creation. Quality games don’t come overnight, so the strategy allows its gaming unit to have some revenue as it bets on one of its own works to be a cash cow. Casual games are great for ads, which are normally placed between levels. More complex games rely on user loyalty and the natural way to make money is through in-app purchases.

A number of ByteDance’s licensed casual games have so far made it into the Top 10 iOS free games in China, including car racing game Drift Race, music game Yinyue Qiuqiu, and puzzle game Brain Out. While these collaborations don’t make big bucks yet, the initial traction proves the viability of ByteDance’s traffic strategy.

ByteDance said in 2019 it had 1.5 billion monthly users across its app family (there can be user overlap between apps). One way ByteDance is marketing games is by inserting native ads into users’ content feeds. Videos, says Niko Partners’ Ahmad, are “interactive, easy to use, easy to click through and can get much higher conversion than traditional ads.”

In some cases, the ad may prompt users to download a standalone gaming app. But like WeChat and most of China’s popular apps,  Douyin and Toutiao support third-party “mini apps” within their own platforms. Users can, for instance, play a lite game on Douyin just as they can on WeChat.

With hundreds of millions of monthly users, ByteDance already has a good grasp of people’s tastes and behavior, so it knows what games to recommend. In theory, the more people see and react, the more accurate its predictions become.

“Through targeted ‘recommendations’, our ‘algorithms’ will automatically show users mini games presented in various forms,” explains ByteDance’s gaming developer handbook. “All games have a fair and equal chance of getting initial exposure.”

Alex Mike Mar 12 '21
Alex Mike

Luminar Technologies has deepened ties with Volvo Cars to develop and eventually sell an automated driving system for highways to other automakers. The partnership, announced Thursday, is between Luminar and Volvo’s self-driving software subsidiary Zenseact.

The two companies are combining their tech to create what Luminar founder and CEO Austin Russell described as a “holistic autonomous vehicle stack”  made for production vehicles. Volvo will be the first customer. Russell and Zenseact CEO Ödgärd Andersson said Thursday they plan to also offer this system to other automakers.

It’s worth noting how Luminar and Zenseact define highway autonomy. The system they’re developing would allow hands-free, eyes free autonomous driving on highways. That means the driver would be out of the loop, and not expected to take over the vehicle. The transition between this level of autonomy and manual driving is a tricky one that has stumped automakers in the past.

“This is something that’s being solved for just in the next couple of years, this going to be available on vehicles that you can buy starting with Volvo and then expanding outwards — that’s the distinction,” Russell said in a webinar discussing the announcement.

The stack that will be offered to other automakers is called Sentinel, which will integrate Zenseact’s OnePilot autonomous driving software solution alongside Luminar’s Iris lidar, perception software, and other components as a foundation. The system is designed to handle highway autonomy and a number of safety measures to proactively avoid collisions with evasive maneuvers, reducing accident rates by up to seven times, according to Zenseact. The Sentinel product also has the capability of updating wirelessly, or over-the-air, to expand the operating domain of autonomy and further improve safety of vehicles over time, the companies said.

Zenseact might not sound familiar, but its 550-person team has been working on ADAS and software for years. Volvo created Zenseact after ending its joint venture with Veoneer.

Luminar and Zenseact noted that while the wider autonomous industry largely focuses on robotaxi applications, they are focused on delivering systems into series production vehicles. Lidar sensors are considered by many automakers and tech companies an essential piece of technology to safely roll out autonomous vehicles. As the timeline to deploy commercial robotaxi fleets has expanded, automakers have turned back to developing nearer term tech for production vehicles.

“The whole point of autonomous driving technology is to reduce accidents and save lives. This alliance enables us together to make that technology more broadly accessible and thus even more impactful,” Andersson said in a statement.

The announcement comes about 10 months since Volvo announced it would start producing vehicles in 2022 equipped with Luminar’s lidar and a perception stack to deploy an automated driving system for highways. Volvo has said it will take full liability for the automated driving system.

Alex Mike Mar 11 '21
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