TechCrunch Disrupt 2022

Crypto bear markets are a ‘great time’ to launch startups, industry execs say • ZebethMedia

By zebethcontrolPosted on October 28, 2022Posted in bear market, Crypto, crypto startups, EC Blockchain, EC Cryptocurrency, EC TechCrunch Disrupt 2022, Startups, TechCrunch Disrupt 2022, visaNo Comments

There are other things to look at beyond crypto prices, the COO of Uniswap, Mary-Catherine Lader, said at ZebethMedia Disrupt last week. “Right?” She asked rhetorically. “Especially if you’re building something and you’re excited about the technology and its potential and not [viewing] crypto necessarily as an asset class.” Even though the crypto market cap is below $1 trillion, down about 55% from $2.2 trillion at the beginning of the year, ideas, startups, and big players are still entering the space. “I think many of the products in the next phase could get to a point where consumers are using a product without knowing that there’s crypto behind the scenes.” Cuy Sheffield, head of crypto at Visa “If you look at crypto market prices and pull out all of the general market decline […] what are you left with?” Brett Harrison, former president of FTX, asked during the panel. “I think you’re left with how much institutions are trading crypto and actual applications that are being built on crypto.” Compared to the 2018 crypto bear market, things have changed, Cuy Sheffield, head of crypto at Visa, said during the panel. “At the time there were questions of would anything exist outside of Bitcoin?” Today, there’s so much more for people to look at and build upon, including stablecoins, crypto infrastructure, or building a bridge between traditional finance and decentralized finance, Sheffield said.

Hidden Door wants to turn fiction into immersive roleplaying experiences • ZebethMedia

By zebethcontrolPosted on October 27, 2022Posted in Apps, Battlefield 200, Disrupt, Gaming, hidden door, TechCrunch Disrupt 2022No Comments

The first season of “House of Dragon” just ended, and I find myself wishing for more. I’ve seen each episode twice already, read through the lore, and even re-watched some “Game of Thrones” episodes. If I had the option to immerse myself in that world and role-play as a dragon-riding Targaryen queen, you bet your ass I would do it. That’s eventually the vision of Hidden Door, a game studio that specializes in narrative AI and competed at ZebethMedia Disrupt’s Startup Battlefield 200 last week. Hidden Door wants to be able to turn any work of fiction into an immersive collaborative roleplaying experience, where players can jump into their favorite story worlds turned into dynamic graphic novels, with text and images being generated based on their choices. Hidden Door is currently testing out an adaptation of “The Wizard of Oz” because the story addresses various age groups and the original text is “so banana pants, which is perfect because it’s supposed to be silly and fun,” Matt Brandwein, Hidden Door’s co-founder, told ZebethMedia. What the platform looks like is a combination of Dungeons & Dragons and Roblox, where you have the vibe of a tabletop roleplaying game that allows you and your friends to “conjure” a story together — only with Hidden Door it doesn’t take four hours to get into character. An in-game AI dungeon master serves as the narrator and builds out a world based on the choices you make as you play. (The above YouTube demo is an early development preview, not the final experience, says Hidden Door.) To set up the game, the players can decide what characters, items, locations, tropes and vibes they want to encounter and “it all comes together like the dynamic back of a book, which doesn’t tell you everything that will happen, but it gives you the sorts of things you will encounter,” said Brandwein. When players choose a character type, the AI dynamically arts that character into a simplistic but cute 2D cartoon avatar. So, for example, a character called “Mischief Maker” might look something like Dennis the Menace in the Land of Oz. Once the character is chosen, the story begins and you’re given a challenge to complete, which you can do in any myriad of different ways based on how you choose to move through the game. The AI creates a host of responsively generated non-player characters, items and locations, which can then be collected, traded and shared with friends to make into new worlds and stories, according to Brandwein. “It’s a trope machine,” said Brandwein about his company’s narrative AI. “It’s trained on 2 million stories in addition to being fine tuned on the author’s work. It knows what sorts of things could plausibly happen, but also what’s implausible. And a lot of the work we’re doing right now is to fine tune it to have the right level of surprise, the right level of subterfuge.” Game studio Latitude last month came out with a similar type of game, AI Dungeon, which writes dialogue and scene descriptions using text-generating AI models. But the company has faced headwinds in both content and image generation. Hidden Door says its AI has the content generation part solved at least, and not only because the model was trained on millions of stories. The more the game is played, the bigger the world gets. Artifacts are created out of that play, which you can share with other players who can mix them into their own stories. Hilary Mason, Hidden Door’s CEO, said the creativity of the players coupled with the machine’s ability to riff off those ideas is a breakthrough on the impossible problem of generative storytelling. The company’s next move is to work with a dozen “fairly well known” sci-fi and fantasy authors who are interested in world building and want to loosely define a world for their fans to inhabit in order to “make this more of a community collaborative entertainment experience,” said Brandwein. “Beyond that, the vision we have for this is that someday, you know, if you’re on Amazon, or something like it, you can read the book, you can listen to the book, and then you might just play the book or whatever it is,” Brandwein continued. “Or if you look at Netflix’s game strategy, it’s some very trivial free-to-play game. But why can’t you put yourself into ‘Bridgerton’ and seduce the dude?” Netflix attempted an immersive TV experience a few years back with “Black Mirror: Bandersnatch” which gave players an option to choose their own adventure. But that was pre-scripted, only giving you an A or a B at every moment, said Brandwein. Hidden Door recently raised a $7 million seed round led by Makers Fund with participation from Northzone and Betaworks. The startup is testing its current product with a cohort of nine to 12 year olds, and is actively looking for authors to collaborate with for future stories, as well as other potential tech partners with an interest in generative AI.

Skidattl’s augmented reality beacons are ‘like a Bat-Signal for fun’ • ZebethMedia

By zebethcontrolPosted on October 27, 2022Posted in Apps, Battlefield 200, Commerce, Disrupt, skidattl, Startups, TechCrunch Disrupt 2022No Comments

Skidattl wants to use augmented reality to get people to engage with the real world. It’s a story we’ve heard before from AR companies, particularly as they pit themselves against the potentially isolating effects of virtual reality. But rather than chasing metaversal Pokémon creatures on the street, Skidattl aims to use AR “beacons” to show people what’s going on around them. Randy Marsden, Skidattl co-founder, said they will be like “a Bat-Signal for fun” once the app launches. Anyone can make a beacon and anyone can see them. Businesses might set up beacons, which have a one-hour life span, to advertise two-for-one coffee sales, movie times or open bowling lanes. People might shoot up a beacon at a music festival to help their friends find them in the crowd. All a user would have to do is scan the horizon with their phone, or eventually with AR glasses, to see an array of beacons at up to 100 yards of distance, said Marsden. When Skidattl exhibited as part of the Battlefield 200 at TC Disrupt last week, the company had an AR beacon over its booth to demonstrate what it might look like. “Of course, you can look at a map and say, ‘What’s near me?’ but this pulls you back into the real world,” Marsden told ZebethMedia, noting that he is an Apple alum and a two-time ZebethMedia Battlefield finalist for previous companies — Swype (technically TC50) and Dryft (Disrupt SF 2013). Skidattl’s AR beacons will be anchored by GPS coordinates in the real world. To locate where a user is in relation to that beacon, Skidattl uses Google’s ARCore Geospatial API, which relies on Street View data. “When you launch the app, it’ll tell you to scan the buildings across the street, and within a few seconds, it will know where you are,” said Marsden. “And then those beacons are anchored; they don’t move around.” When people want to set up beacons indoors, Skidattl will also use Wi-Fi signals to help position users against the location of those beacons. Skidattl is still in its angel funding stage and alpha tech stage, but the startup hopes to go to market with a freemium business model — meaning it will be free to use but Skidattl can monetize through premium subscriptions, in-app purchases and affiliate commissions. Like any new social media app, Skidattl will have to battle the chicken-and-egg problem — no one will want to use it if there’s not plenty of beacons already lit up, but there can’t be any lit-up beacons without people on the app. “I think we can kickstart the business side pretty easily by giving them a free beacon,” said Marsden. “On the customer side, getting YouTube and TikTok influencers to talk about it, place ads with ZebethMedia and that sort of thing. And then once we have someone in the app, we can give them incentives for sharing with their contacts.” (It goes without saying, but ZebethMedia ad sales are totally separate from editorial.) Skidattl is currently trying to raise $500,000 to finish the minimum viable product and get the money it needs to officially launch its app at South by Southwest in March, Marsden said.

Clubhouse’s Paul Davison on Twitter, the impact of hype and what happened • ZebethMedia

By zebethcontrolPosted on October 27, 2022Posted in clubhouse, EC Media, EC TechCrunch Disrupt 2022, Hype, paul davison, Social, TechCrunch Disrupt 2022No Comments

For most venture-backed social companies, a period of hypergrowth seems like it would be the dream. It means the app broke through the noise of thousands of others, resonated with a mass market of people and didn’t need to spend a penny on marketing. Clubhouse, however, offered a retort to that perspective. The app’s fall from peak, both in terms of daily active users and general fanfare among techies, has been intriguing after its splashy invite-only start. Paul Davison, Clubhouse co-founder and CEO, spoke about changes at the company at ZebethMedia Disrupt last week. “We had a couple of months of insane, silly, unsustainable 10x month-over-month growth,” Davison said. “I think what people might not appreciate is that Clubhouse has kind of moved into all of these different verticals, and they probably don’t appreciate the size of the community and the activity and the diversity and the range and all the conversations that are happening.” He added: “I don’t think hype is good, I don’t think extreme hypergrowth is good for a company. The ideal is to grow at a steady pace.” Let’s not hype up hype Davison described Clubhouse’s “hype moment,” during which the app grew users 10x month over month and took the No. 1 spot at the App Store in Japan, Hong Kong, Russia, Germany, Brazil and Italy. While the company was able to use that momentum to raise over $100 million in financing, with its latest known round closing in April 2021, Davison grounded the narrative. The co-founder said that the 10x growth lasted two months and spiked the app’s Sensor Tower metrics, which “shaped the narrative” when downloads began to slow down. In reality, the hype stressed the infrastructure, Davison admitted.

How to raise funds when you aren’t in the Bay Area • ZebethMedia

By zebethcontrolPosted on October 27, 2022Posted in EC TechCrunch Disrupt 2022, EC venture capital, fundraising, remote work, Startups, TechCrunch Disrupt 2022, VentureNo Comments

Perhaps sitting perched somewhere in sunny Miami, Florida, is a founder wondering the best ways to fundraise for a company when situated outside a traditional tech hub like the Bay Area. They need not worry. Last week, Mike Asem from M25, Elizabeth Yin of Hustle Fund and Accel’s Rich Wong answered that question at ZebethMedia Disrupt. The consensus of the venture capitalists was that remote work accelerated the trend of VCs looking at emerging markets, founders and companies throughout the nation. That and social media — specifically Twitter — have made it easier to connect with people. To some, sliding into an investor’s DMs can be just as legitimate as diving into one’s network for a warm intro. “We noticed a couple of years ago, in looking at our own analytics, that most of our deals were coming through Twitter,” Yin said at Disrupt. “If I look at my portfolio, my companies who are active on Twitter actually do have an easier time raising money because investors feel like they know them.”

3 VCs explain how founders can stand out when pitching • ZebethMedia

By zebethcontrolPosted on October 27, 2022Posted in EC TechCrunch Disrupt 2022, EC venture capital, fundraising tactics, Startups, TechCrunch Disrupt 2022, VentureNo Comments

Venture capitalists get flooded with startup pitches, which can make it difficult for founders, especially those building in crowded categories, to stand out. And while every investor is looking for something different, there are ways founders can improve their chances of getting noticed. Speaking at last weeks’ Disrupt 2022 conference, investors Annie Case, a partner at Kleiner Perkins; Sheel Mohnot, co-founder of Better Tomorrow Ventures; and Jomayra Herrera, partner at Reach Capital, said that the founders who manage to capture their attention are the ones who come to the pitch process prepared. Of course, this could mean a lot of things. Case said that it’s incredibly helpful when founders help investors prepare for their pitch meeting. When founders send over information before the pitch, or offer a preview of the deck, she can to go beyond surface-level questions right away, which leaves more time for in-depth questions, she said. That allows her to walk away from the meeting with more information, which could help a founder get a check down the line. If you’re starting a company, and there are three or four other companies that people would look at, I expect you to know intimate details about them. Sheel Mohnot, co-founder, Better Tomorrow Ventures For Herrera, just sending over a partial or basic pitch deck, or a demo, if relevant, can be wildly helpful. “I generally recommend having almost like a teaser version of the deck with enough data and information to give us a sense of where you are in terms of the journey of your company,” Herrera said. “Just enough information so that we come prepared to the meeting.” The three investors agreed that founders should come to the pitch meeting ready to answer questions about the team, progress and TAM. Mohnot said it’s a red flag when companies don’t seem to have thought through these potential questions, especially when it comes to competition. “If you’re starting a company, and there are three or four other companies that people would look at [in the space], I expect you to know intimate details about those companies,” Mohnot said.

Yes, Chief • ZebethMedia

By zebethcontrolPosted on October 26, 2022Posted in carolyn childers, chief, equity, lindsay kaplan, Startups, TechCrunch Disrupt 2022, VentureNo Comments

Hello and welcome back to Equity, a podcast about the business of startups, where we unpack the numbers and nuance behind the headlines. This is our Wednesday show, where we niche down to a single topic, think about a question and unpack the rest. This week, Natasha is bringing one of her favorite Disrupt panels to your ears. She sat down with Chief co-founders Lindsay Kaplan and Carolyn Childers to talk about the future of their private membership club for women in leadership positions. (Shout out Bryce for this amazing live illustration he did while we were all on stage!). The conversation touches on outlasting competitors, pandemic-defined community, the duality unicorn valuations and the word girlboss. If you love the conversation, share it with a friend. And if you want more on Chief, read a recap post that my colleague Ron Miller wrote about all things membership community and waitlists. Equity drops every Monday at 7 a.m. PT and Wednesday and Friday at 6 a.m. PT, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. ZebethMedia also has a great show on crypto, a show that interviews founders, a show that details how our stories come together and more!

Technical due diligence, web3’s promise, how to hire well • ZebethMedia

By zebethcontrolPosted on October 25, 2022Posted in Crypto, due diligence, EC roundup, hiring, Startups, TechCrunch Disrupt 2022, Venture, web3No Comments

In films, screenwriters always include a moment known as the Promise of the Premise. It’s the part of the story where the audience settles in to the new world they’ve entered. One of my favorite examples is in the first Harry Potter movie, when Hagrid takes Harry to Diagon Alley, the magical shopping district that introduces him (and us) to the world of wizarding. So far, web3 has not paid off on the Promise of the Premise: open source software that runs live on the blockchain. “It’s still much easier to develop a Web 2.0 app simply because the ecosystem is mature and enjoys a large and thriving developer community,” says Devin Abbott, who specializes in design and development tools, React and web3 applications. Full ZebethMedia+ articles are only available to membersUse discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription According to Abbott, the web3 development community is approaching “an inflection point where our own tools are becoming quite powerful,” but “that doesn’t mean Reddit is moving off its Web 2.0 cloud servers.” So far, most of the hype for web3 is coming from investors and journalists, so Abbott’s perspective as a developer makes this a useful read. Most of web3’s early use cases don’t interest me. Then again, I’m not a developer, so I didn’t truly appreciate the value of mobile gaming, GPS and cloud storage until they’d achieved product-market fit and were integrated into my smartphone. Today, I wouldn’t consider buying a device that couldn’t help me find a restaurant or hotel. When it emerges, I suspect web3’s killer app will be similarly utilitarian. Thanks for reading, Walter ThompsonEditorial Manager, ZebethMedia+@yourprotagonist 3 ways to hire well for your startup Image Credits: AndreyPopov (opens in a new window) / Getty Images For early-stage startups “this is arguably one of the worst times to be looking for talent,” says Champ Suthipongchai, founder and GP of Creative Ventures. Opportunistic hiring managers might assume that widespread layoffs have shifted the balance in their favor, but “those were generally not employees executing core businesses.” Usually, startup recruiting resembles scenes from heist movies where the characters are putting a crew together: it’s an expedited process designed to fill knowledge or experience gaps, not necessarily find the best fit. “Whenever possible, it is far better to slowly integrate a great candidate in as an adviser or part-time contractor and let things play out,” writes Suthipongchai. “Just as a customer pilots the product, companies should pilot their most important hires whenever possible.” 8 questions to answer before your startup faces technical due diligence Image Credits: kutaytanir (opens in a new window) / Getty Images Outsiders study multiple facets of a startup to determine its value and quality, and codebase health is one of them. A pitch deck is just part of the story, writes Matt Van Itallie, founder and CEO of codebase analytics company Sema. After technical due diligence begins, no amount of storytelling can cover the secrets buried in GitHub and Jira. To help companies prepare for TDD, Van Itallie has written a primer with eight questions founding teams must be able to answer confidently. Tomorrow, we’ll run his detailed TDD checklist. To better thwart ransomware attacks, startups must get cybersecurity basics right Image Credits: Bryce Durbin / ZebethMedia Creating systems that are resilient against ransomware isn’t top of mind for early-stage startups, but many companies don’t even follow basic best practices, much to their detriment. “Enable multifactor authentication (MFA) on everything you have,” said Katie Moussouris, founder of Luta Security. “Enable it on every account that you have.” Last week at ZebethMedia Disrupt, Moussouris and Brett Callow, threat analyst at Emsisoft, spoke about the need to invest early in locking down their systems, starting with MFA. “It’s a matter of stacking security layer upon security layer,” said Callow. “MFA in conjunction with staff training — in conjunction with other things — all serve to reduce risk.” Black startup founders raised just $187 million in the third quarter Image Credits: Getty Images The downturn appears to be disproportionately affecting Black founders’ ability to raise capital. “When the venture capital industry catches a cold, underrepresented founders catch pneumonia,” said Tiana Tukes, an investor with Colorful Capital. In Q3 2022, Crunchbase reports that Black founders raised just $187 million, “a staggering decline from the nearly $1.1 billion they received in Q3 2021 and a sizable drop from the $594 million the cohort raised in Q2,” writes Dominic-Madori Davis. Investors are sitting on mountains of cash: Where will it be deployed? Image Credits: H-Gall (opens in a new window) / Getty Images No matter what’s happening in the public markets, bees make honey, and venture capitalists raise money: it’s just what they do. But since the “extreme valuation recalibration” in the public markets, VCs are amassing more and more dry powder, write Jeremy Abelson and Jacob Sonnenberg of Irving Investors. More frustrating news for founders: investor fundraising “is on pace to finish the year at $172 billion,” but capital deployment is way down. “Dollars are flowing and will continue to flow, but it will be more capital to fewer companies,” they write. Now that “traditional SaaS has become too expensive and secondarily saturated,” sectors like web3, life sciences and agtech will attract more investors, they predict.

To better thwart ransomware attacks, startups must get cybersecurity basics right • ZebethMedia

By zebethcontrolPosted on October 24, 2022Posted in EC Cybersecurity, EC TechCrunch Disrupt 2022, ransomware, Security, Startups, TechCrunch Disrupt 2022No Comments

The Department of Justice (DOJ) famously declared 2021 as the “worst year” for ransomware attacks, but it seems that title could be in 2022’s hands very soon. Despite some rare wins in the war against hackers over the past 12 months — from the government’s seizure of $2.3 million in bitcoin paid out to the Colonial Pipeline hackers, to its successful disruption of the notorious REvil gang — the ransomware threat continues to grow. Over the past few months alone, we’ve seen threat actors ramping up attacks against public sector organizations, including hospitals, schools and in the case of Costa Rica, entire governments. The private sector is also battling a worsening ransomware threat, with attackers claiming a number of high-profile victims such as AMD, Foxconn and Nvidia. Enable multifactor authentication on everything you have. Katie Moussouris, founder, Luta Security Founders of early-stage startups will undoubtedly find it concerning to see even well-known organizations failing to protect themselves from ransomware despite their seemingly endless resources, particularly as it’s unclear exactly where these companies went wrong. “It could be a zero-day or it could be a failure to implement multifactor authentication (MFA) or an MFA bypass,” said Brett Callow, threat analyst at Emsisoft, during a panel discussion on the ZebethMedia+ stage at Disrupt 2022. “There’s no standard answer, and that is what makes this problem so difficult to deal with.”

Pantheon Design alleviates supply chain uncertainty with factory-grade 3D printing • ZebethMedia

By zebethcontrolPosted on October 22, 2022Posted in 3d printing, Battlefield 200, Disrupt, Hardware, Startups, TechCrunch Disrupt 2022No Comments

In the midst of the pandemic, Pantheon Design, a maker of industrial 3D printers from Vancouver, BC, suddenly found itself getting orders from factories in the Midwest, the center of heavy industries. The reason? These manufacturers were having a hard time getting parts out of China as COVID-19 restrictions in the country squeezed global supply chains. One of Pantheon Design’s e-mobility customers waited 18 months before its injection molds, which are used for producing parts, arrived from China. If your electric vehicle or home appliance order is taking longer to arrive, chances are port closures and lockdowns in the factory of the world are messing up your supplier’s production timeline. For a long time, 3D printers were too expensive, slow, and short-lived to be economically viable for manufacturers, observes Bob Cao, co-founder and CEO of Pantheon Design, as he speaks to ZebethMedia as one of the Disrupt Startup Battlefield 200 companies. Many of the 3D printing startups that secure big VC checks are run by smart people who have never been in a real factory, which is hot and smelly, says the entrepreneur. “So their machines break down all the time.” “They make the product for prototyping, but they try to sell the idea for manufacturing,” he adds. Cao’s founder story follows a familiar pattern seen among engineers: five years ago, he and his co-founders bought a bunch of 3D printers to build products for industrial customers, but the third-party devices weren’t meeting their expectations, so they set out to build their own. Parts created by Pantheon’s 3d printer. The result is the HS3 3D printer, which is a sleek-looking cube measuring 300mm on each side and weighing 46.7 kilograms, featuring black anodized aluminum, which has been treated to achieve a durable finish. The device is able to print carbon fiber parts that are as sturdy as metal and 5-10 times faster than other options on the market thanks to the startup’s patented methods, according to Cao. Moreover, it’s able to do it at a competitive cost even in comparison to Chinese suppliers. The startup has sold 40 HS3 units — all assembled in-house in Vancouver with parts manufactured in Canada — since starting shipping the machine nine months ago. Each printer costs $15,000, but the bigger chunk of the company’s revenues comes from selling filaments. Also called the “ink” for 3D printers, filaments range from $50-150 a kilo, which brings a nice 90% profit margin, and most of the company’s customers spend about $500-800 a month on them. Pantheon Design has raised $800,000 in funding from a mix of investors in Canada and the U.S., including the Boston-based accelerator Techstars. The company is also buoyed by revenues it generated from its previous business of printing products and prototypes for clients, and two of its proudest moments include printing entire concept motorcycles for Honda and all the sci-fi props in the Netflix film The Adam Project.