35 Burst results for "techcrunch"
Apple leads $50m investment in music distributor UnitedMasters
"Apple has led a fifty million dollars series. B in music distributor united masters again leading the round alongside other usual suspects like a sixteen z. An alphabet this is notable because while apple does do acquisitions all the time they tend to rarely do venture investments according to dan per mak. The last time apple participated in venture capital round. Much less lead. One was a two thousand seventeen investment in detroit. Shing quoting techcrunch. If you're unfamiliar with united masters it's a distribution company launched in two thousand seventeen by steve stoute a former interscope and sony music executive the focus of united masters is to provide artists with direct pipeline to data around the way that fans are interacting with their content and community allowing them to connect more directly to offer tickets merchandise and other commercial efforts united masters also generally allows artists to retain control of their own masters. Neither of these conditions are at all typical in the music industry. In a typical artists deal recording companies retain all audience and targeting data as well as masters this limits and artists ability to be agile taking advantage of new technologies to foster a community currently united masters has deals with the nba espn tiktok twitch and others that allow artists to tap big brand deals that would normally be brokered by a label and manager. It also has a direct distribution app that allows publishing to all of the major streaming services. More importantly artists can check stream fan and earnings data at a glance and
The Black Shark 4 Smartphone Rises From The Deep
"All right so this article comes to us from the android police. Apparently gaming phones are getting more and more popular. I wonder why could it be. People want more power in a smaller screen. The post who. I don't know if powerful computer the complete of video games honor or like a consul. It's it seems to me like it's smartphones. Time to rise and while zombie is keeping up the pace with black shark series. The latest iteration the black sharp for an for pro have popped up in a chinese you can pre-order one. Today with the phones set release to china on thursday. The twenty fifth and international release date has not been set yet. But what what are you looking at stat. Wise here while the black shark. Four pro uses a snapdragon eight processor. Qualcomm's biggest and bad available. It's paired to either eight gigs or twelve. Gigs of ultraviolet fast. Lpddr five ram with two hundred fifty six gigs of storage both models. But those aren't exactly hard to find these days. The more obvious give way that this is giving phone are the dedicated mechanical shoulder buttons on the side flight. The locks away to them pop up like two shoulder buttons on a black shark three they can be bound to touch areas on screen for integration with really more or less any game but if you want the mechanical shoulder buttons you now have that option. The four pro is six point. Six seven inch a. m. o. l. e. the ten eighty p screen with a maximum refresh rate of one. Hundred forty four hertz. Beating most phones it also has to zones of pressure sensitivity as a nema pressure applied. Not just touch sensitive allowing for further integration into games that can support it. It's battery as a forty five hundred m h typical for phone this size but supports fast charging at a completely bonkers. Honored twani watts with a charger included in the box. Family says it can charge ninety percent of the battery in a little more than half an hour. It looks like the video that goes along with two well in terms of cameras on the pro. They have a sixty four megapixel main shooter. Eight megapixel ultra wide five megapixel macro with a twenty megapixel centered. Front camera terms of style to flat. Black version actually looks fairly down. Nice to notice the side buttons. Led triangle logo on the back stays on lit. You'd have a hard time telling its gaming phone. Of course that goes out the window to get the so empty version of its auto translated by the way unsure of the official name. It's layered semi transparent glass shifts around as you look at it and much more flashy but not unappealing way. The phones a chunky and nine point nine meters. But that's enough to include a headphone jack in sight mounted fingerprint reader. The dual sim. Radio works with five g for absolutely intense sessions. You can't quick bond the sold separately cooling module at cedar black shark four pro a starts at four thousand. I'm trying to remember the exact It can't be the chinese currency that they have. But if you're talking about us dollars be black shark for pro is at six hundred fifteen dollars and six hundred ninety dollars respectively as the non. It's it's kind of slightly scaled down version Looks pretty interesting In terms of the i it drops one of the cameras. It keeps the shoulder buttons most of the rest of the hardware and it's slightly cheaper. Probably not a five hundred dollar range for a gaming smartphone. That's unheard of clean. We're sitting here looking at foods. The latest and greatest thousand plus in in north china pop out gaming smartphones that are packed full of hardware intact for like seven hundred between five and seven hundred eighty s manageable. It off but yeah. If you're looking for gaming phone well you might just have to wait for this to be released internationally. But if you're in china Details in terms of prices and such and selections and preorders are available in a show notes for today's episode. So looks pretty cool all right. Moving on to an article begat from techcrunch facebook's clubhouse rival looks a lot like clubhouse right now in and because facebook is a clubhouse rival reported on net like all the way back in february in new york times. Didn't a bunch of other people did but what that product look like or how it will work have been questioned that have remained unanswered however new screenshots of a facebook audio product still under development shows what appears to be a live audio broadcasts experience. It's more of an extension of facebook's existing messenger rooms rather than a standalone app experience. Facebook confirmed with techcrunch. The images are indeed examples of the companies exploratory efforts because they don't represent alive product at this time but the gamut we all know the company said also that detailing what product look like based on these images would be inaccurate ob tech crush said screw. Were pushing him anyway. But keep in mind. It is in development features. That are very different in anything and everything could still change drastically between now and then but images at least help. Face their demonstrate. How facebook is thinking about live audio. Where such a social experience. Good fit within facebook's existing and that's worth considering considering that i don't think facebook wants to make another app i think they just want everybody to be on one app and use that so we do have some pictures that go along with it. Looks like they have like button. It says choose the room type where it's like live audio broadcasts in audio only room to listeners audio where you can start a private audio room with friends. A video button reconstructive private video room with friends in an you can also add people in but it looks very much like Like clubhouse that. I'm still trying to get used to somebody interfaces of the room so it's it's kind of interesting Speak are shown to tap the room. What a represented with a larger circular profile picks room listeners appear below is also a followed by speaker section leads the audience section again much like clubhouse but obviously subject to change the way it's being developed that would allow for rooms that anyone on facebook join Rooms could be accessible from facebook itself. Meaning you would not have to switch to messenger to join the room. When not expanded to full screen room with displays title number speakers in total listeners. He can get an idea of the rooms popularity. So Yeah lebron even looking at it tested it out. Don't secret facebook. Ceo mark zuckerberg is both on audio. Of course in fact he's already appeared on clubhouse. A couple of times recently spoke about the product. Chris social audio in clubhouse room hosted last week by former techcrunch editor josh casino investor at signal fire
Unusual Trouble At Red-Hot Startup Dispo
"Remember despu that hot new photo social app that we were keeping our eye on as a potential next big thing despu basically made you wait until the morning before your photos developed in quotes was co founded by famous youtuber. David dark well. One of dispose. Major backers spark capital has suddenly announced. It is quote severing all ties with despu after claims of sexual assault against a member of dough bricks. Vlog squad arose last week. I suppose i need to back up and explain a bit david. Dobby has been called the jimmy fallon of gen z for his popular youtube videos which apparently focus on comedy and pranks and stunts and the like tens millions of subscribers. Nobody is one of those youtubers. That has one of those multimillion dollar mansions that is extensively the scene of a lot of his videos. He also has this sort of entourage of people known as the wlac squad who also star in his videos. It is a member of the long squad that is accused of the sexual assault though there have been some other questionable incidents lately that dober- himself has recently apologized for in video anyway without getting too in the weeds overall that last week mr dobric was losing sponsors left and right hellofresh dollar shave club. Ea sports seatgeek all severed ties. The very first link in the show notes can give you a rundown of all of that. Now normally i do tend to steer clear of these sorts of youtube star and influence or controversies but there is real sort of industry news here. Because i can't really recall seeing this happened before quoting techcrunch. In light of the recent news about the wlac squat and david dobric the co founder of despu. We have made the decision. To sever all ties with the company spark capital tweeted. We have stepped down from our position on the board and we are in the process of making arrangements to ensure we do not profit from our recent investment in despu and quote spark capital's decision to step back from the despu investment. Feels like a first of its kind. And if not rare it could trigger other investors with stakes in the company to do the same spark capital led a series a. in despu a twenty million dollar financing event that valued the company at two hundred million dollars less than a month ago. The current statement by spark does not indicate that the investment has been pulled from the company yet spark capital did not immediately respond to requests for comment in regards to what this process would look like and if the shares will be sold back to the company or to another buyer
Instagram Launches Live Rooms For Group Broadcasts
"Instagram has launched what it is calling live rooms which allows users to broadcast live together up to four people at a time up from just two people at a time and also says it will roll out new audio features in coming months. So is this just instagram. Facetime or is it a step toward making a clubhouse competitor just with video. I guess it doesn't really matter because like everything else. All the sudden it's largely all about allowing creators to make more money quoting techcrunch previously. The apple allowed users to livestream with one other person similar to facebook live. The company says it hopes alive rooms will open up more creative opportunities in terms of live broadcasts formats to allow for things like live talk shows expanded to as or interviews. Jam sessions for musicians live shopping experiences and more in addition to the ability to livestream with more people instagram. The new feature can help creators to make more money last year in the early days of the covid nineteen crisis. Instagram introduced badges as a way for fans to support their favorite creators. During a live video once purchase the badges appear next to a fans name throughout the live video helping them to stand out in the comments and unlock other special features. Like placement on the list of badge holders and access to a special heart with live rooms fans can buy badges to support the hosts one badge per person as well as us other interactive features. Like shopping and live fundraisers. The company says it's also now developing other tools like or controls and audio features. That will roll out in the months to come to start a live room. You'll swipe left and select the live camera option. Then title the room and tap the room icon to add guests here. You'll see a list of people who've already requested to go live with you and you'll be able to search for other guests to add when you start the live room you'll remain at the top of the screen. While guests are added the guests can be added all at once or individually depending on your preference this allows for opportunities to add surprise guests to livestreams to keep fans engaged the ability to add more guests to a livestream can also help create or grow their follower base as all the guests followers are notified about the live room. In addition to your own and quote.
Big changes for Apple Maps
"I'm brett. Molina and welcome back to talking tech. You rely on a smartphone app to check traffic when you go out and about now. Even though there's not as much traffic these days due to the pandemic. I still use one regularly in. My favorite app is ways. I like how ways we'll give you an ta to your destination and we'll give you a preferred route. It also alerts you to issues ahead including car. Crashes slow traffic speed traps now. There's reports that apple maps is going to get an upgrade with some of these features right. Yes there've been a couple of new reports now from both techcrunch and the verge that say real time. Traffic reporting is currently available for those users with the iowa's fourteen point five beta which is available for developers an public beta testers users can report accidents or hazards on the road by using siri or through. Apple's carplay drivers or passengers can verbally tell siri there's a crash up ahead or there's a speed trap here there's also a report button which will show up on the screen and users can mark the location of the accident hazard or speech and then that input can be related to help other users. I do use apple maps some. Because i must have met when time isn't an issue. I think apple maps gives me a more direct less circuitous route and ways. Sometimes it seems like ways is too smart for its own good and puts me in a position where i have to cross a street without stop signs for the crossing traffic. But i would guess. There's some eventually
Clubhouse Raises A New Round At $1B Valuation
"I'd like to think that this news is a direct result of the fact that i spoke on stage at josh constanze weekly press clubroom on clubhouse on thursday night. Paul and the gang saw how successful that went. And we're like quick. Pull the trigger on this for sure. I'm joking of course. But in a blog post yesterday clubhouse announced a new funding round led by a sixteen z. Word on the street is that it's at a one billion dollar valuation. Which if you'll recall six months ago people were saying it was crazy that a sixteen z led a one hundred million dollar valuation also clubhouse says it will soon begin work on an android version of the app and it is actively beginning tests around paying creators or at least allowing creators to charge and earn quoting techcrunch. The plans around monetization routes for craters appear to be relatively open ended at this point with clubhouse saying it'll be launching first tests around each of the three areas it mentions tipping tickets and subscriptions over the next few months. It sounds like these could be similar to something like a patriotic built right into the platform. Tickets are a unique option. That would go well with clubhouses more formal round table discussions and could also be away. That more orgnisations could make use of the platform for hosting virtual events during a regular virtual town hall. The apps founders hosts on the platform ceo. Paul davison revealed that clubhouse now has two million weekly active users. It's also worth noting that clubhouse says it now has over one hundred and eighty investors in the company which is a lot for a series. B though many of those are likely small independent investors with very little steak and quote. I thought martin bryant had decent analysis of this in his big revolution newsletter. This morning quote. People are excited about clubhouse because it's like a grownup version of twitch clubhouse is the first opportunity for professionals to build a presence and an audience in a near zero barrier to entry live media app at its worst. This means. there's a lot of lincoln. Style fake insight and people trying to be gurus but it also means there are a lot of really interesting conversations featuring people you might not hear from on other platforms. The twitch analogy seems to fit with clubhouses monetization strategy. The plan seems to be provided a platform and money making opportunities. Then sit back and take a cut as we've seen with the stories format once something is a success in one place. You can't stop it popping up all over the place so far. The only notable clubhouse clone is twitter spaces which is still in testing but expect live audio chat to be tried in all sorts of slight variations across different apps. You already use for. I suspect linked in is already exploring what it could do with this format. The challenge for clubhouse is maintaining its value as a destination everyone else offers the same features helping creators. Get paid is one part of this. But ensuring those craters provide enough reasons for listeners. To keep coming back we'll be a greater challenge. But then you can stream video game footage in a number of places including facebook and people keep coming back to twitch so. The problem isn't insurmountable quote
Elon Musk is donating a $100 million prize for carbon capture technology
"$100 million towards a prize for the best carbon capture technology. The test in space like CEO, making that announcement in a tweet TechCrunch reported month. Musk's donation will be connected to the X Prize Foundation, the nonprofit those competitions that encouraged technological innovation and development and Dolly Parton,
Do the celebrities help the startups or do the startups help the celebrities?
"So this week. We saw that josh richards. Who is a tiktok star previously of the sway house which is one of the many tiktok mansions that have kind of popped up over los angeles as influence or homes. Josh richards is joining remiss capital and early stage venture firm as a venture partner. And as i'm sure we will get into not super nudist see celebrities get into venture space. They have huge reach. They can do a lot for especially consumer businesses with a simple instagram story. And so maybe the place to start with with the josh richards. Conversation is like really bullish on this transition. What would we say like what is good about this transition and then we can make the jokes because i know there will be jokes. But let's start with why this makes sense. Alex i okay. I have been critical in the past of celebrity investing. Because it's always struck me as little bit frivolous but i think that's because i underestimated the cultural impact of people of the moment and according to iverson will group text that i'm on with my friends. Talk is the thing. So if you are an enormous star in the tiktok world getting you involved with the company makes a lot of sense and my thought here is that i think in the old as we go to see more endorsements opposed to investments. You know you'd say like we're going to get you know josh richards or charlie delio or bryce. I'm reading the notes price hall to endorse your party to the long tail of knowledge for tiktok star. I see tiktok. But i don't know who the people are because i'm not cool at all but i think now with took being so popular and having so much cultural resonance with people that are out there using their dollars so in mark influence. It's probably reasonable that these people are going from being endorsers to be invested because once they have more money themselves and they have enough power deployed demand a seat at the table to get some ups. I did a piece of the pie. So i want to make jokes but i won't. I'll just say that in the past celebrity has had a mixed track record. But in this case. I think bringing attention via celebrity and tiktok makes sense. Okay danny leterrier pros and cons. And then i will finish this off. I think the big question is always do. The celebrities helped startup or the startups helped the celebrities. I think some celebrities have made a lot of money on their investments by think in many ways celebrities get access and in in many ways. I'm not sure they actually create the value for these companies. But because of the celebrity status they sort of get an allocation the otherwise it wouldn't have been able to get you know obviously if you're having a startup the targets gen z. Tiktok is the platform to go about do that. I just don't think it helps anyone else you know i. I just think about the company's like okay. Let's let's hope about sky flow. You know this is the polymorphic. Encryption data security company. Get josh richards to help. On what i'm kidding. Of course not so its seat and that's ultimately like you know. I think it's always about these brand plays. I'm in new york. We have a ton of successful brand plays because of the so like may richards endorses bro. And its next round and is like the the next to the guy in the commercials. I forget which the famous movie stars was on there. No one knows that this group. We're not that demographic. Danny this is where the show. We're just taking a right to the gutter. I think they're definitely serves. They can use this. I think it's fine to venture partner. Josh has been very entrepreneurial and getting a bunch of stuff out there. But what i've heard. The guy makes f ton of money saving our producers gave them work there but a ton of money doing all these sponsorship deals. I think it's fine. I just think we have to like not change coverage and we focused on in which companies make money based on which celebrities are attached to which companies like. It's always good to go back to the dollars and sense and so. I don't think it changes what we do here at techcrunch. I'm certainly not going to cover story. I actually been pitched stories. That are like gosh. Richards has invested in this company. I was like. I don't know who that is. Take this to not work in my experience talking to celebrities in and around technology events. More broadly i talked to a former doctor who about surface once that was a fiasco but i did. Enjoy my child with jared leto at a boxing event because one. I got to take a picture with him. I was topless now funny and to he actually had some pretty good he is about starts so i think there is the occasional investor who's also celebrity. Who can do some reasonable things. I'm curious to see how this bears out. Ashton kutcher is investments. Have been up and down. So we'll see. But i'm not going to be dismissive of the kids.
Amazon Makes Mac Commitment, Opening Door to Apple Developers
"Aws announced at its reinvent conference support for the mac mini to its clout the two mac. Instances are now generally available and mainly for developers who want cloud based build and testing environments for their mac and iowa's apps the hardware doesn't support the m one mac minis yet only intel's i seven machines with six physical and twelve logical cores and thirty two gigs of memory. But the ws team tells techcrunch that emlyn support will happen within the first half of two thousand twenty one aws also announced aws train. Its next gen. Custom chip the trains machine learning models. Aws says the train eum has higher performance than any of its competitors in the cloud with support for tensor flow pie torch and mx net available as ec. Two instances and inside amazon's machine learning platform sage maker
Tesla is now worth half a trillion dollars
"Is now worth more than half a trillion dollars, according to a new report from the website. TechCrunch. The electric car maker's stock has increased by five times more than what it was at the beginning of the year. Success has made the company one of the world's richest behind Amazon, Apple, Microsoft, Google and Facebook CEO Elon Musk now only trails Amazon's Jeff Bezos for the title of wealthiest person in the world.
Starting Zocdoc with Oliver Kharraz
"Oliver Karaz was born and raised in Germany mostly in rural parts of the country his mother was German and his father was from Iran in came from a long line of doctors. For me, it really starts in some ways with my dad and. The timing rapidly had every reason to become a social activist and and so he came to Germany from the Middle East when he was very young around twenty with no money in his pocket no language skills. And you personally then worked on of odd jobs, but he eventually became a psychiatrist but what has really shaped me much more than being born in Berlin is. Social. Active. Isn't that I that I saw him live and that he really made our family mattress we always talked about talent responsibility and the need to use. Whatever telling behind to help those. Around us that we can make a difference. Given that your father was Iranian and your mother was was sort of. German. An Uber even though you were born in Germany, did you feel did you feel as Germany everybody else? So I didn't have a second identity. We only used spoke German at home and yet. As you say I was also a not always fully accepted. So if I give you an example, my school twelve hundred students and you could pick out to the didn't look like everyone else and I was one of them right and even an enlightened country like Germany. That is notable. So I had what I call a visual accent would people would see me on the street and they would ask me how to speak German. So well and But they also school the skipped my name when reading out scores because they weren't sure how to pronounce my last name and opportunities taken away and even at was physically threatened so i. I think that really shaping in many ways because I realized. Very early that in order to be as successful as everyone around me I would have to be dramatically better in really work much much harder than anyone else and so that used to be strong work ethic in me. For the record Oliver is somewhat down playing his work ethic. Because just out of high school, he actually started his first successful company. It was the early clunky days of the Internet, and he designed a way to help people send emails more easily and he wound up selling that business not for a ton of money, but enough to get him through medical school. But. After practicing medicine for a couple years Oliver realized he couldn't stop thinking about that first business he'd started and how he wanted to start another. So he quit his job in medicine and consulting job with Mackenzie and eventually moved to New York. That was my goal was actually to start another company that that's A. Healthcare, but I I'd also realized at the time that I sold my first company and far too cheaply in that I should learn more about business I and at McKinsey God exposure to balance sheets and panels and hit a lot of very practical experience and what it means to manage business. And I think they fondly of my time at McKinsey was one of my better decisions. McKinsey GonNa Mackenzie is a little bit like going to business school. A lot of people at McKinsey have come from business, schools. In that. Many people go to business school thinking they will find a co-founder. Did you were you actively looking around at your colleagues to think maybe I can do something with him or her you know maybe that person. Absolutely and were you just thinking about different business ideas all the time? Well, it is actually very hard to find good ideas and my definition of a good idea was that it needed to have a great mission I. wanted to make sure that we actually do something good in that. We stayed true to sort of talent breaks responsibility, but also wanted to be a large market and to have a great motor rounded and also I wanted to be based on contrarian inside. Because I thought that all of the best companies have that at its core. While she wanted mission, you wanted a company that could kind of dominate its field by building a motor around it, but was also contrary and that's that's that's those are some interesting. Criteria. And that's why I screen for several years rejected pretty much every idea that that I came across And meanwhile. While you're going through all that I guess you meet this guy Cyrus Masumi. WHO's another McKenzie consultant and and just you just. Become friends like he's like somebody like in and you guys start hanging out. While we got put on study together that required us to travel globally and you've ever done that it meant frost were sixteen eighteen hour days together for three four, five months on end and we really. Got To become great partners in that and and what we realized that we had some. Very complementary skills. Cyrus is one of the most charismatic and gregarious individuals. You'd ever meet his very passionate. He could be more forceful, which sometimes was needed to be effective with clients. And you've talked to me now for a little bit as you can probably tell. More dispassionate and logical and more measuring. German? More, German in many ways, right. also was effective with clients by by. and Cyrus is American right? He's American this but that That close listened and how we work together that really started friendship and we stayed close for the study and be caught up over lunch pretty regularly denounce different business ideas off one another and. I think we connected because we had similar interests because. On. Some levels We were equally passionate about what we're doing higher says, passion was more visible to others than mine but we. Were close enough together that we both accepted. The other as. individual that that we could learn a lot from. Was it was it clear pretty soon after you start hanging out, Sarah's that this was the guy because you were. You're on the lookout for a partner. They I think it was was absolutely an option I know reality is that. With. Both founded companies before Mckinsey and we both knew that we wanna do it again and as I. was always great about being. Very honest. Rather than just nice and and I value that a lot. Yeah. All, right. So So this guy, Cyrus Super Charismatic, really smart clearly, the two of you start to to work together. And what what kind of business ideas are are you coming up with? While we kind of fell in love with a new idea that came about a one of these launches were Cyrus. Told me about how he recently ruptured his eardrum by flying with a cold and then found it very difficult to actually find a doctor and he had asked for recommendations and called down his insurance directory listing started with the as. Doctors weren't accepting new patients some no longer accepted two centurions one provider Pasta Way and so he said, well, why does it take four days to the doctor when I'm in pain right? And why can't this much easier? And we. Both very quickly. realized the potential of this idea from. Working at project be new helps us the for actually spending millions of dollars for marketing to grow their patient base because they had wasted inventory, right they had something that I like to call hidden supply, which is these last minute cancellations no-shows reschedules. That the that go to waste, and then on the other, there are the patients who had a hard time accessing this. You thought it immediately clicked with these my God. Yes. Doctor's appointments connect patients to doctors. Yeah. Well, look if you go through the forfeiture that I had read, it's a great mission right? We're making one of the most personal needs more accessible for for patients we can help patients to get in fast we can help the doctors become more efficient. We can make the entire health care system more cost effective people out of the emergency room things like that, and it's a marketplace. So there is a strong mode and clearly anything in healthcare is a large market and I think the contrary and inside that we had. was. The fact that. Most people thought it's normal that people have to wait twenty four days to a doctor because there's a doctor shortage in read our inside was really no doctors have asthma debate ability because of these last minute cancellations, no-shows reschedules and so I felt very about this idea. So. So you member like how long between the time that the you had that first conversation To the time were both you said, let's start this business was like monster or weeks or days. was was weeks. We what we what we started doing is actually. Mocking up the side in how imagine back then in powerpoint pointing just the wire. Website. Yeah. Wire frame. Exactly. We would. We'd go into starbucks and we'll chat up strangers and say, Hey, here's a five dollar gift card. Give me your thoughts. Sorry I'm GonNa. Go back. You just go to people in starbucks Gift Card and say, can you give me your thoughts? Random Person? The absolutely that's that was sort of our market testing. They wouldn't. They would be like excuse me this is a little weird. You're my space. Might also happen from time to time but you know there's lots of people on starbucks is very in German of you. That's debris because usually he would be to report tentative about doing that. Well, you know I think there was a lot less rejection than you think people actually quite open I. Suggest you try this out but if you If you're unthreatening in Luke harmless as we probably dead and then they'll be pretty open. You went up to and starbucks and you'd say, Hey, we're thinking about a company here. Can you just look at his powerpoint give you five dollars Gift Card and what was in the powerpoint, the popcorn and was just what we thought. This website would look like and we would ask them is the set service that resonates with you would you use it and and we got an incredibly valuable feedback here and really set us in many ways on the on the right track right? So and what pointed to the two of you decide let's quit McKinsey. Let's. Let's pursue this. Probably a month or two after we initially discussed idea did anybody say you were crazy for quitting? Everyone. Everyone told us. Crazy and got a lot of negative feedback on the idea to write people would say this is Bloomberg out I would never pick my doctor on the internet or I already have a doctor or you know doctors wouldn't accept patients that that are looking on the Internet of all kinds of protections that people had when they were thinking about their own situation by. When when you talk to people and starbucks, they actually thought about it much more positively. So we were encouraged enough to say, well, this is going to work as long as we get out of our circle and don't ask McKinsey consultants doctors. The responsible be better. All right. So you are in your thirties at this point. And presumably were making pretty good cash at McKinsey because you were probably you'd know expenses you're on the road all the time so. When you quit, I'm assuming you had some money to launch the business and probably live off for a while. Yeah. So I very deliberately had never raised my living standard to the money that the paying McKinsey and I had saved every dime so that I could. No be in a position where can fund this embraced can afford not to take a salary for a couple of years. Wow. So so a couple of hundred thousand and you saved. You know. Maybe. I'm to Germany to discuss personal finances but. I had. Built this. Radio, you can tell the. Story Yeah I I had I had enough money to live off for for several years but I also Saturday night both finance the company early out of our own savings so that clearly diminish We had leftover after that. So now, you both decided to quit. and. You have some technical expertise because you had. You had done some coding but this is next level stuff. Were you able to be that technology founder and Cyrus was going to be the the sort of the business founder? Absolutely not as I add coated but at that point, I had not touched a computer for a long time We knew we need to have a technical co founder and so Sarah's knew a guy named Nick Guanzhou from the time together, trophy software, and this is another company that they would both worked at the that's the company that they're both previously worked together and Nick just brought a totally different perspective and really educated Addison me on a lot of things and and he was really the one who understood a building a seamless experience for the consumer and ends May. Zach Docs. Early Genius, did you did you have the name dock from the beginning? Not, not initially we we went to several phases on on what the right name could be for for while we wanted to have a descriptive name. So we looked at physicians, dot Com Doctors Dot Com, and we actually tracked down the owners of one of these domains and they wanted several million dollars for the domain name. And and we were finding the company ourselves. So that was out of the question. So then we just sat in a room and we brainstorm a list of fifty or one hundred names, and then started eliminating names until we arrived at Dr. What does it mean? or it doesn't mean anything which was the WTO bit we could. There were zero search results. Okay. There's no meaning behind his ACH. There's no meaning behind and and in hindsight it was precisely the right thing to do because it really was a blank slate for us to fill with with meaning and really build a brand around. Zero such as October we started. It address nate the right lake once you know that it takes more than three weeks from picking up the phone and dialing for doctors till you actually see someone you realize Oh, this really not much else that we have to wait so long for to get. And this is more important than most of these other things you already have. Fantastic access View Magin. If air travel way that healthcare workers that wouldn't be an expedia that wouldn't even be Delta Dot Com that would be individual phone numbers for every plane. Imagine. If that happened, you know a half the planes would fly empty it would be a massive pain and that was actually the state of health care before sock. Is Amazing that that the nothing like this was out there in two thousand seven. I look at I. Think. In many ways you couldn't build it a much earlier. In the early days. When we went out there, we were the ones installing Internet of the doctor's offices. We. They they were a many times just migrating from a paper books to scheduling systems. We were at the cusp of digitisation for healthcare. We were just lucky in our timing to get this right in and start offering the service when that also happened. All right. So you decide to pursue Zach dock and it's the three of you. I'm assuming really just at the beginning and were you working out of out of one of your apartments? Did you guys rent space? No, we worked out of respect for. Many. Times we came to make yet the nicest apartment and and we could bring breakfast Burrito and bake him up and you know the the reality is that we originally had a pretty ambitious launch plan right so we got together around July. We wanted to launch by December of two, thousand seven. Something interesting happened were nick send an email suggesting to look at what was then called techcrunch forty. Take is is now a household name but the draw for us back then was there was a fifty thousand dollar prize now it's called tech crunch disrupt think. So it's a major a startup competition. It's a startup competition and we were the first class of this was much less known be budgeted two hours to fill in the application in really which will send it off. He didn't think about it anymore that there was an early July and early August we've heard that we had been accepted, but there was a complication we'd have to be ready by September eighteenth or. That was three months sooner than we had originally planned to launch. So you'd have a live website by September that is right that is right with doctors with doctors, right So we actually debated for a few hours whether we should even tried to go for that but we ultimately said, yes, we can get the website working and we wanted to have enough doctors just a bars wouldn't look pathetic. Brayden. Coded Night Neither Day and nick really busted his but he did the patient facing side of the website and that was the programs. What was potentially even harder because we're tried to launch a marketplace was to actually get the initial supply on there and remember the website wasn't there yet so. Tires ended up going door to door for doctors offices. Excuse telling them a powerpoint page, and this is really a testament to cyrus sheer willing determination if you think about what it means to really start a company early on, there's nothing to show right you may be a powerpoint but there's no website there's no patience. There's no other doctors no social proof and it has to run on passion and very clear that that is Cyrus superpower. He just went to random doctors offices or he had like a list of doctors offices and he started kind of walking block by block. Well, there's a lot of walking involved a we launched in Manhattan so you can literally go down the street and you see. The signs and you walk in. And he was basically saying look, it's a way to connect you to patients. How was how many by the way? What was your objective? How many doctors do you need to sign up to have this website look okay by September Between six and ten was our goal. Okay. So just doable it is a was extremely hard really. Is telling doctors is one of the hardest things to do why were they saying? Well, first of all, it is baby very hard to even speak to a doctor they are being shielded. Their time is very valuable. Office managers are trained not to let anyone talk to them to protect the doctor from people walking in selling them stuff shirt them. Secondly, they many didn't want to give up control over their calendar which has to write. We ask them to post times that a patient could book into it and it was just a far fetched idea for many of them the patients would actually do this. So he got a lot of knows he got a lot of knows. He'd go there and he just simply not leave until he got a chance to speak to the doctor and a few times. It was even escorted out by security. I really think one in a million could have put this off. I mean was he going to particular kinds of doctors or was he generally focused on an Internet general? Practitioners Ob sobe began with dentists Okay. Because our thinking was that. People go to dentists most often, and we wanted to make sure that we have an offering that is relevant for patients as often as possible. I. Got you so so eventually unassuming, you do get what six to ten or how many did you get by September of two thousand seven Eight. In the meantime, you inequity doing the back end stuff you were doing the coding and building the website does right and as you were building it. How did it look? So. The bit that Nick Build looked awesome for the time I think. It was impressive. We were. Very. Satisfied that we had a scroll bar that we had a map that we had back then already the insurance selector and a lot of feature that. Weren't to be found really anywhere else. All right. So September two, thousand, seven, you are ready to reveal. This service at. Tech. Crunch. And Doth Review present or did did Cyrus kind of wishy the spokesperson? Cyrus. I presented Nick stayed behind in New York to make sure that the less the website was actually up and running This is in San Francisco that you went to the we flew out to San Francisco and So we lost sock talk in front of Eight, nine, hundred people. A lot of them were journalists when the judges opened up with feedback guy covers ocoee who we newnan in valued. As embezzles forever apple he came out to said he he didn't get it. He would never use this in front of everyone right and. His direct load something like honestly Oh, it just never occurred to me to go to any doctor that's really burned in in my brain and what was worse is that he seemed to be right we didn't get a single booking. We were hoping that this PR would get us out of our initial batch of users, right because your other. So many tech journalists there. So you know the publicity may be would would would lead to bookings and that was the hope but. It actually took three days before regard our first legitimate a patient, and and in the entire first month, we only got five bookings. You come back from San Francisco and. You know you had Guy Kawasaki. Say I don't I would never use this service? I'm sure he feels differently today but man maybe then Ezio said that but did did you come back feeling like like dejected like losers or or were you excited like how did you feel coming back? While you know I think we obviously hoping we would eventually get more bookings and In the beginning you probably refreshed. The Bookings Report Hundred Times a day by as we were thinking through what we realized. It was really a typical two sided marketplace challenge It's just a classic chicken and egg problem. You need the supply to get the demand and you need the demand to entice them supply and for dark was even trickier. Right when you think about it, healthcare is hyper local. Very complicated. So you have to match. Supply and demand on a Zip code specialty level, and then we have thousands of insurances take. Until we realized that our odds of actually finding a patient that wanted. An offer there. Quite low, and so the best path forward was to methodically build up supply, and so we just kept going put up a huge map of Manhattan on the wall, and then a sleep put little flags on of where the doctor's brother we're on the website in which insurance is accepted and we just we knew the perseverance. Is the name of the game. Back in just a moment how oliver and Cyrus Begin to drum up interest in stock and how they even start to raise some money at figure out how to dress differently, stay with us guy rows and you're listening to how I built this from NPR. Hey everyone. Just a quick thanks to our sponsors who helped make this podcast possible I to epic provision maker of epic bar beef was nature's idea the epic bar was. 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A lot of their offices especially back in two, thousand, seven or sort of technologically in the Stone Age. There was incredibly complicated to sink the doctors calendars with ours. Because none of the software was actually made to sink. Were even in the places where we had syncs up and running, we would frequently get. Feedback while the punishment didn't happen because the doctor wasn't available and we really couldn't figure out why this was the case because when we did screen chairs with the office to their calendar and and our calendar, it was identical right and couldn't figure out why that's happening. So I decided to sit next to the office manager I went there and got to know him and his family photos of his dog. I fixed the printer taught a better strategies to play minesweeper still couldn't figure it out. Until one day, the doctor would come out and she'd say, Hey David I'm out next Friday. And then what does David do does he go into the calendar and block out next Friday or does he take a post? It note On a doctor out next Friday and sticks this too is monitor. In the real world. These post it notes, of course happen and but once you know that Matthew Friend, you can start filtering this out and that's one example they were literally a thousand point, one percent solutions that we had to figure out to make this work. Wow. That sounds I'm getting exhausted. Just hearing about that because this is like even like Google calendars, right? Yeah. Yeah. That was that was early days and what we were extremely focused around were making show the experience was fantastic. If something went wrong, we fix it. Right. So I was our customer service I personally would call the doctor and and confirmed the appointment was all said if it wasn't I, personally contact the patient to let them know and then I would offer them. Amazon Gift Card alongside with an apology those actually one case where it didn't catch a patient in time. and. The were in the subway to the doctor, and so I raised them to the doctor's office and picked up a bouquet of flowers on the way there and met them in person to apologize. And that was really a turning point burs. The service has to work and we need to be have this patients I attitude in in terms of how it works completely ingrained in the company. All right. So you clearly need to kind of grow this Were you offering this service doctors for free at the time? Initially. We for free by we eventually started charging fifty dollars per month. But Sam doctor you come into my office and you say, Hey, if you pay me I can bring you more customers. I would be skeptical I would've said to you you who whose, who even knows about you. You'RE GONNA you're asking me to pay you money for Phantom bookings for maybe no customers I mean did some of the doctors say Many. The US summarize our sales challenge. Right? It was very hard because even if you wanted to, we couldn't easily share how many patients their competitors are down the road God like that was something that was confidential. All right. So you are you got this chicken and egg problem. Not, enough people signing up and he gets skeptical doctors but you know that the service could really benefit the doctors, but you also need them to pay for because otherwise you know but business. Meantime at a certain point I'm assuming you guys start to think we'd better go out and look for money if we're going to really make this thing work. Yeah. Yeah. That that happened in the spring of two, thousand, eight we decided we raise series. And we we make the rounds we get in front of a number of the big name, BC New York the also go to Sandhill road in impel. Toho Santo Road we leads and road initially were very successful at all we got Polite knows. and. Ray No feedback control someone took us as I told us you know what the idea seems. Good. But you're consultants I'd and the perspective of its consultants can't get anything done and what realized is that even though we had both founded companies before our Mackenzie Pedigree in our keys and button down shirts, they were really hurting us, and so we wait rank Khakis and button down shirts. It sounds crazy. Were they pleaded pants or were they at least nine pleaded please. Yeah Yeah. Yeah we after hearing that feedback We very quickly just went to the next gap and bought jeans and t-shirts and from that on the combos with VC's when but a lot better. So you went from McKinsey consultant look to this are the tech casual uniform of jeans and t-shirts that that's exactly right and we introduced ourselves not as NBA's and McKinsey Consultants but we introduce ourselves previous entrepreneurs that are starting their next company. was was anyone biting? Were there people who were like? Yeah there's a great idea I'm in. So interesting enough we had raised some money from. Friends and colleagues, and many of those they invested in US business plan unseen just based on the fact that we. Were giving up our careers at McKinsey to pursue talks. So that felt really a great. and. As we started changing how we appeared in how we introduced ourselves to venture capitalists L., we started to get offers and so in August of two thousand eight, we ended up raising five million from KHOSLA ventures expeditions mark. Wow Mark Banya Jeff bezos, and Venus is. All their. Funds are in which sounds like a lot before you WanNa do it's actually. Kinda limited because you still it seems to me in two thousand eight even though you have five million dollars a lot of money you still have this problem which is you've gotta get. Customers, and then to get customers, you need lots of doctors had lots of options but to get doctors, you need lots of customers booking through the site to you do that precisely D- These five million dollars per lily earmarked for making New, York, work, right, Miguel, I market work but. immediately after raising the money the financial crisis hit. And You may remember there was rest in peace a memo that went around about startups, right? Yes. About start ups, never being able to raise money arrested in peace good times. So we got this job is to make the money stretch in. We probably learn not during this time This was really our first go round making hard choices and what I want to be frugal and not to do things we can't afford and We learned to not let money replace critical, thinking and creativity. But now we continued to grind away at New York and at some point felt while if you want to get. To the next level we have to prove. Dr Isn't just a New York City phenomenon. Right? We had to prove that it would work in a second city But at that point, we didn't have the money to do this anymore, and by the way you're still your approach was still the same. It was door to door. That's right door to door and how how you building awareness about the about the fact Zach existed with customers with potential customers. So we it was day very difficult to get someone. To the website. Yeah but when they did. They loved it because it was such a step change from how healthcare used to work for him. Right they used to have to pick up the phone and wait on hold and then plays scheduling. tetris. With the office manager, can you do Wednesday morning about Thursday noon? Friday afternoon, and now they could do the same thing in a minute and have complete overview about the ability patients loved it and they told their friends. So we we started to get word of mouth. Going, and so we saw New York really taking up and we felt like, okay, this does this go into work in New York. At a minimum rate, but we also realized that it took us a fair bit of time. And money to get it going. In New, York and do we couldn't with the money we had left from the five million easily expanded into a new city at the same time. Raising money was going to be difficult because the next generation of investors wanted to see that it works and other cities as Walter. So we were a little bit in this catch twenty, two we ended up. Applying to. Force boost Your Business Competition Four. Forbes has his competition as sell to where they give away money right to they were promising a hundred thousand dollar prize. And at this time. We won. And Yeah what did is they gave us one of these large publishers. Clearinghouse is sex and very useful actually used to cover a hole in one in our only conference room. There was a hole in the wall and we covered it with that. At, this point you are, you are working out of an office, not not an apartment at this point we were working out of A. Shared Office space we work. Yeah. So they had given us publisher clearing house is is check but they fail to give us the small check for three months and we were getting really nervous, but it would still get it but. But ultimately, we got that one hundred thousand dollars and that's what we used to launch and our second market in DC in Washington DC and would did it require you guys to move down there or were you did you hire because I'm assuming you had to? A lot of your early capital was going into sales. Business Development hiring sales reps, is that right? Right, we had a couple of sales reps at the time. A. Very first employee ever was a sales rep is still with the company today and He was great. He figured out how to. Really charm his way. To the doctor. So there were no more security guards escorting anyone out. When did you? I'm assuming that even in two, thousand, nine, two, thousand, ten, and beyond we're not yet profitable. Far From It? Yeah. Far from it right because it's a capital intensive business. Yes. We obviously invested heavily in customer service wanted patients to have a great experience. And we had a quite sizable engineering team because that was actually a major engineering effort. So what started to happen when did you start to kind of see? A real turning point. Yeah. So we we we had launched New, York successfully with. Years. Of hardwork, we've gotten it off the ground is transported that to DC at work well, in DC, and now he said, well, why are we not in more cities and so we actually we raised serious be with fouled respond and We used to expand off the East Coast Francisco then Chicago and we just got better better at it. So we then ended up raising serious and two thousand eleven from Goldman NTSC, and we primarily use this to grow our sales team and sign up more more doctors in from two thousand eleven till two thousand, thirteen, we launched roughly thirty new cities I read that by by two thousand, fourteen would covered. Like forty percent of markets in the US, which is huge I mean that's right I mean that's a huge number of cities. And in that year evaluation. Of tzakda. Past Billion Dollars I mean that's That's pretty remarkable i. mean you were kind of on this like really rapid trajectory and you a pretty straightforward model right and you were charging doctors a flat fee every year and then. They could take all the bookings they wanted and I think that by that point like by two thousand, fourteen knew it was not cheap. It was expensive viewed really raised the price it was like three thousand dollars a year, right? Something like that. Yes recharged Dr Three thousand dollars a year and and there was a flat fee. No matter. How many bookings Actually facilitated for them and and the reality was for some doctors that got a lot of bookings that was a great deal. Yeah. But but there were also doctors that God a lot fewer bookings and for them that fixed cost was actually too expensive and some of them were starting to leave the service, and so we got into a situation that required us to invest a lot to stay where we are and then invest even more to continually grow our overall provider base, which means we had to build out a massive sales team to always sign up more doctors right and. Some point during this time L. Nick actually ran an analysis showed that it would take several years if ever fries to make our money back on on many of the doctors we signed up because you would have to sign up. X number of hundreds of thousands of doctors paying that amount every year. To make your money back to to make sort of our the cost of the sales team back. Wow and L. it. This was pure that would make us dependent on external capital for our very long time, and now it's a clearly there are many companies that have taken. Grow fast at all costs approach. And They Held onto this forty extended period of time by L., it clearly puts talking to a dependency to. Investors in their mind says, yeah. So. Meantime. You know I I from what I understand. There's disagreements I mean there there are you know the leadership team including Cyrus he he's I. Think he's he's sort of his position as the flat fee model is actually the best way to go is that a fair assessment of of his position? Yeah. I think that's right. I. Mean there were two fundamentally divergent ways held the business could go forward right. One way was to continue to work on optimizing the unit economics of our subscription model and the other way was to think about how to make it more transformative leap and then find a new more profitable. And more sustainable model and. Their. Look I can certainly understand The reluctance and taking this leap if companies rechange their underlying business model once they have a certain scale and then live to tell about it, right. We know the names of the companies that have done this net flicks, but from DVD's to streaming adobe. From box software to the cloud, but there's not a lot of companies that do that. and. Needed to make a choice which which direction I wanted to go. And and I should say over that. Became intensely personal for you because hugh and Cyrus really disagreed on on on the direction of the company should take. Steps down he he left the company and you moved into the role of CEO. Those right and what ask you about this neo. Beauty's in the flies of this show is its simplicity and we talked to one person or sometimes too. It's a single narrative, and so we don't have cyrus with us to tell us what happened but I wanna ask you about this time because. This was your co founder. This was your partner This is your friend and he was leaving the company. How did you feel at that time? I all I can say was a very hard and very emotional period for everyone involved and It was certainly a departure But how was through that given these two divergent choices you you couldn't. note, both of us could be useful to talk and. I have to imagine that for for period. China. was sort of the friendship. Look been we were very close we. Were not only friends we had worked for eight years believe together fourteen hours a day, and we probably talked more to each other than to anyone else in our lives but you know. Still touch from time to time and. I think he's joining us on from sideline. He still at prison million owner of the company Yeah, he's still. Here's the thing I mean we've we've told stories about breakups we've had we've had episodes were there were married couples who split divorced but continued the business e O products. Susan Griffin Black and an her husband Brad They continued the business stacy's pita chips continue the business after the divorce sold it for a quarter billion dollars. You guys were worth value to one point eight billion dollars at this point. was was ever party that just thought you know, God look at what we're doing on the core we're going and. I mean did you in service it down and say you know this thing is just growing and? Let's just figure this out. I think the challenge is that it's not as if there was an article way to decide what the right path forward is. As long as investors wanted to give us money growing all costs was yeah. Fine Strategy. The question was just how dependent you wanted to be on the continued goodwill of investors. It sounds like you were tired of going out raising money. You didn't want to do that anymore. Oh, not at all but I think you want to raise money from a position where you know what your turn to is and and. It wasn't clear that the business model would work in in a way that that we could just flip a switch and be profitable. Yeah. So. That was a tough year for you. Two, thousand fifteen. There was an article in business I think business insider, and it was about the sales team. It's October that year and it was. It was some allegations that you know Pete member sales team using adderall even cocaine they were under immense pressure. They were working all the time when you saw that article. And I'm not saying you even aware of any of this. You may not even aware of it but I. have to think that that article really alarmed you and and maybe even embarrassed you. Look A. There were a number of articles in two thousand fourteen fifteen. Didn't absolutely get everything, right but Budweiser I can say is that At. The time doctor had their sales team and we're. Getting very quickly and Your maybe maybe. Too focused on. L. Hitting targets and. Not. Focus enough on creating a strong culture the I hear these stories from six years ago from from time to time and from from now from candidates and and really every time. This happens like a Gut Punch. Because, this we know we're completely different company now. On on so many levels, but clearly, you saw that in new that you had to change something. While yes, I look I l there's a there's a couple of things about this. Right? We are a technology company, but we had said ourselves up too much about. Instead of writing wins and really too little about being adaptable and darning and and building the trust required to try things that now pet the risk of failure. and. So one of the first things I did is to change core values. You know to emphasize those behaviors each one of our values adaptable, not comfortable and other one is progress before perfection learners before masters right and. We only kept really one DIA CONSTANT DEL patients I. Personally that. That was more of the culture that I thought was right for Doc to succeed on many dimensions. So, you take over the company it's got high valuation, but you're still not making money and you know that you've gotta change the underlying business model you're never gonNA make money. And from what I understand this is the beginning of what you have internally described as the second founding of the company. That is right. That is right and that basically happens in in two thousand, eighteen you you launch this new business model where instead of the the dollar membership fee. Basically, you would charge doctors a lot less like two hundred or three hundred bucks, but then every booking you, you would take a cut from that booking. So like a travel agency. A little bit charge for new patient booking. So the existing patients to practice we made free but yes, there was the fundamental idea and. It sounds like such an obvious thing to do but but here's the problem with it and why why are we thought it was incredibly risky to try this. Our best customers that had been on for a long time. They got lots of pockets right and if we start charging them per bookings, their prices go up very significantly in some cases ten times more and that seemed. Competing, insane to us. In. Particular because when we talked to other companies that were at gone through similar changes and even pricing experts, they're number one advisor was make sure whatever you do never charged your best customers more and frost would be precisely. The opposite. In the thing that was counter-balancing this in our mind was well, maybe we'd be able to bring on a lot more doctors because the barrier to entry is now much lower that was there was the back and forth in the team to figure out whether that's the path we want to want to go. So, this is still a risky strategy because you're depending really on new bookings because the two hundred dollar annual fees dramatically lower and I have to imagine in year one, you actually saw drop in your revenue in the year one of of this curve. Second founding. Right. Well, it's from a risk profile worth at that. Right the warriors that you lose all your best customers in with it, all the bookings day used to be getting. and. So we needed to be ready for a very significant drop in bookings and revenue and the second Challenge was here that. The beauty of this approach modest and we got all this money upfront right and Sharon. Now to bond, we're getting paid after the booking with with a thirty day payment periods, we had a huge working capital requirement to make that happen. So did you see a drop and revenue in two thousand eighteen when you rolled this out? No we didn't because we actually didn't see the doctors leave the way that we hit on -ticipant did in fact, you know while we had very much worried that they would be upset and some of them certainly were upset. We were providing so much value to them that. You know what? What took you. So long I knew as getting a great deal all along. So that worked really well, and we had piloted in Georgia initially in April. Two thousand eighteen and then that had worked. So we we then all allowed in Colorado a few weeks later that work to, and from there we went to Washington state and again, very positive results and after these three days. Okay Great. We know this works does it out in our largest most important market? Let's go to New York and that and terribly horribly wrong. They the doctors in New York. Not only were so pissed off they actually I read. mounted a change dot org. Petition I. Don't know what to to to end this practice or something. They were really mad. They were really really mad and I guess you guys responded you said, are we won't we won't roll this out in New York for a while. Yeah look in New York. We. Facilitate Roughly, one in five new patient doctor relationship in the entire city on dock and so. The economic impact for the providers in. was much greater than for the providers in Georgia Colorado Washington. So yes, to give you one example, there's a dermatologist and so and he paid under the ultimate model ten doctor say paid thirty thousand dollars and under the new pricing model, his cost was going to go up from thirty thousand dollars to roughly three hundred, forty, thousand dollars. Wow. So what was your response to that? I? Mean it seems like a pretty reasonable. Concern. Yeah. So look after the conversation with the Dermatologists I. Actually. Put down the phone and I thought you know what? He's right. And so I pause and we regrouped and. We did a couple. Of things during this time, like the first one is we just went on a listening tour. You know we talked to provide their feedback and we just adjusted our this plan to give providers a much longer grace period to decide whether the wants to addition to the new model or not, and then. So then we read on New York six months later and and when dramatically better. So the strategy works and you see results from the strategy pretty quickly like within a year. Within a year, we had we finally at some incredible momentum was really going better than we had expected in our wildest dreams. Our existing client went down to essentially zero. I mean people still retire and and move jobs by no one really left the service and we were adding more and more providers because the barrier to entry was low and So in two thousand, nineteen we began growing profitably. It sounds like two thousand and nineteen was really the banner year. Two thousand nine hundred was a was a fantastic year and honestly we had so much momentum coming into twenty twenty and feel like, Hey, we worked really hard for three years and profitable and now the sky was the limit until. Tells Sam until March of two thousand twenty. Two Marjo twenty twenty and that's. That's really maybe the third founding DOC right? Well, I want to ask you about March twenty twenty because. Your Business is based on people booking with doctors and going to the doctor I have to imagine your revenues must have plummeted like every other industry like I mean doctors offices are still in most of the country. Slow or are trickle of patients coming in. With the lockdown started happening we saw impersonal bookings declining anywhere between fifty to ninety percent by the end of March I'm not surprised and lot of that buys I was getting was to. Lay off people and make sure that we hunker down to weather the storm but I saw an opportunity to build windmills, right so I thought well, we need to be there for our patients. We should be expanding into telehealth and I need every team member to help me do that and so we. Really went all important and supporting video visits and I'll probably June eighteen began redesigning the tire marketplace support virtual care, and so we actually released. Doctor Video Service and we made this available to. Any. Physician whether they are on soccer. for free. And by the way head, you plan to do this. How long would would I mean I'm imagining if you said in in February district I really want to focus on telehealth Would you have expected that by May would have been ready to go. Absolutely. Not I think what has been really fantastic to see is how? We really finished two years of roadmap in two months. Wow, and it's great because it's just gives us a window on what the next phase of doctor will be and really looking forward to that in my mind were the point were Amazon started from going. Books to also adding CDs. We have just gone from doing only in person to also A. Doing telehealth and I can't wait to see how this unfolds. It sounds like you. Might be reading between the lines but. You. Really, admire and respect your co-founders particularly. Cyrus and the work that he did to to build this company but I wonder if do you think that you will a I dunno, rekindle your friendship i. Is it something that is in the cards because a break is? Is Emotionally, it's hard Mesa really hard. Yeah, look I Do I think we'll work fourteen hours together again maybe not but you know I I've gotten through tougher breakups and reconciled in my past, and so I think we are we're in good shape and honestly know we are meeting were talking from time to time Yeah. We both have things to do and places to be so we're. Not, hanging out all the time. But it's now also five years ago So We are we're merch focused on making our join the baby successful. When you think about your journey and All Its happen to you how much do you think this has to do with? with luck and how much do you think it has to do with with the hard work you put in your your skills. Well I'm going look I I believe that there's really three ingredients to success. In order importance there are lock the talent, then hard work and. The only one. That's comedian. You control his how hard you work right and Now working hard to gives you more shots on goal It helps his day on the top of what you your talent allows and absolutely restarted at the right time the right place. So What what I'm proud of an all that journey has only that yet when we were wrong and when be had to revise and. When we needed the grit to actually make it work. I L we lived up to that and and that's really The all that anyone can ask themselves to. Oliver Karaz co-founder of Zach Braff by the way, remember how they originally wanted to call it physicians dot com or doctors dot. com. COULDN'T AFFORD THE MILLION DOLLAR PRICE TAG to buy the domain name. DOC DOT COM wasn't only available the price they paid for that domain name. Six Bucks. and. Thanks so much for listening to this show this week, you can subscribe wherever you get your podcasts. You could also write to us at H. I. T. at NPR DOT Org. If you want to send a tweet, it's at how I felt this or at Cairo's can also follow me on instagram that's at Guy Dot Roz. Our show was produced this week by Jet Anderson with music composed by Tina. Bluey. Thanks also to Julia Carney Candice Limb Neva grant and Jeff Rodgers I'm guy. Roz even listening to how I built this. This is NPR. Black voters play a crucial role for any Democrat who seeks to win the White House but some big devise amongst that block and some serious influence
VCs and Startups Consider HaaS Model for Consumer Devices
"All familiar with software as a service right in a way. SAS has taken over the world. For software and all sorts of enterprise and consumer settings, but even increasingly. In all consumer settings as consumers have gotten used to. You know paying for digital things. I mean you can think of Netflix. As software as a service in a way. Well, are you ready for hardware as a service? Let me give you an example. Noura is a company that makes high. End earphones the NRA phone. For example is what the company calls the world's smartest headphones. You can buy the neuro phones today for three hundred ninety nine dollars, or if you pay ninety nine dollars, ninety nine cents up front and subscribed to pay nine dollars ninety nine cents a month. You can also own the near Afon. This is not rent to own. This is subscribed to us. As long as you keep paying, you can get a new neuro phone device every twenty four months. You can get the over the air software updates that keep the device improving, and Oh, yeah, keep the device working because if you stop paying, the device shuts off. Remember when there was that whole Brouhaha about Sonos end of lifing support for their earliest speaker systems. Yeah, get ready to hear a lot more about hardware service quoting techcrunch. In a recent email exchange Duncan Turner general partner at the x accelerator, which backed Noura described Hass hardware as a service as a great way to keep in contact with your customers and up sell them on new features most importantly for startups, recurring revenue is critical for scaling business with venture capital, and we'll help appeal to a broad set of investors, Haas also often has a low churn as easier to put. Put onto long term contracts and quote the upside to consumers clear. Don't pay for everything all up front, and your freer to experiment with new devices in ways you wouldn't have been otherwise. This is especially important in a world where brick and mortar experience is increasingly rare, even before retail ground to a halt courtesy of covid nineteen. There's also a clear appeal for those who are inclined to frequently upgrade devices quote. It's providing continuous value than it should be worth paying for Y combinator partner Eric Makovsky, tells tech crunch, if not stop using it and move on, it also is more sustainable hardware. These days requires a lot of software to work and the development and maintenance of that software costs money companies that have a continuous source of revenue will be able to continue to improve their product offerings through software updates and quote in two thousand eighteen. Eighteen study analysts parks associates noted a potential hurdle, however quote while a consumer reluctance to pay subscription fees is well documented. Haas models may get more traction. Where more value can be offered at less financial risk to the consumer, the challenges to create a service bundle with clear value that consumers find attractive consumers will pay for services that they perceive as valuable and complete tasks that they cannot or prefer not to do themselves unquote. As another VC is quoted, saying in the peace and I've seen myself over the last few months, startups don't have to be talked into Haas into this new sort of business model. Providing consumers can be talked into buying in as well if there is a new hotness right now in startup pitches at the moment it is basically subscription, but for x that sort of the new uber, but for X, and it's easy to see why this is so attractive to start ups. We've spoken endlessly before about how reliable and easily anticipated revenue is provided by subscriptions. But also if you have a subscription business, consider that you could achieve scale, not at the end of some years long slog through the Dark Valley of losing, money. Imagine, you could achieve scale and essentially bootstrap your way to it off. Your own cash flows from basically day one.
"techcrunch" Discussed on KQED Radio
"Actually work stage because again it was it was a little sketchy it was still very early is on the list on the in the wooden box and the balsa wood box also but box phase right so we're just worried that the demo would just fail or crash but what I was it worked in actually the crash in the middle of the presentation because the whole demo was about me walking on stage the device to be collecting stats and at one point turned here can see here if I don't you refresh the page and show that all the static and upload it magically do this wireless connection and so the demo actually crashed while I was talking and Eric was fiercely trying to reboot his computer ninety ultimately you know the demo didn't work and so too to many people seem like magic yeah literally people started clapping it was it was really amazing so richly right before techcrunch err tonight you know we may just a verbal attack you know how many pre orders and we can a cat after this conference him you know to make the company public and and I think Eric said I think we'll get like five pre orders to take the device isn't even available connect this credit card information and I said now you know why I'm not as pessimistic I think there's going to be like ten fifteen twenty and so we got off stage and by the end of the day we had about two thousand preorders while when we come back in just a moment James and Eric have a prototype in the balsa wood box and they don't exactly know how they're going to get from there to feeling thousands of pre orders but a lot of people are expecting them in time for Christmas stay with us I'm guy rise and you're listening to how I built this from NPR support for KQED comes from.
Jason Lemkin Clip: Why now is the best time to start a SaaS company
"A few weeks ago I had the opportunity to chat with former founder. Active venture capitalists and driving force behind. Sastre Jason Lincoln. Jason Zoster a community for Sassan cloud founders also organized the annual Sastre Conference in San Jose. That now attracts five figures. Were the folks each year. We spoke with Jason before the novel. Corona virus had evaded containment efforts affecting domestic markets after upending their counterparts abroad the current community since dacians forced Jason Deport. Sastre back a bit. But that doesn't mean that our chat with him any less timely in our forty five minute conversation we covered a ton of stuff from the potential for cloud slow down to how founders should use or not use venture debt to Jason's outlook on SAS consolidation. And even half asked. He's writing checks today. We're sharing one of our favorite clips here. The rest is over on techcrunch for excellence subscribers we're GONNA get into VC's lately that have been talking about the beginning of cloud. Slow down and I I. This is a very specific thing. What they mean is cloud is no longer an upstart phenomenon. Saas LONGER NASCENT. We've now seen a large percentage of the inner voice software world move over to SAS and nine means that the growth rate will descend as the actual aggregate basis larger and critically. They think that this might lead to income and squeezing out startups from certain spaces in the Saas market. That might have been attractive before. And this is from Alex over at scale venture partners recently and I thought it was interesting hypothesis. I don't see why wouldn't be correct. But I want to get your take on. I know your cloud optimist. You've always been a believer in my experience. So when you think about the maturing of this ass market does that leave less space for starts in as you look at the the overall landscape. Well let's see. I think there are two different points. I have two different perspectives. If you look at data from Gartner which is imperfect. But at least we haven't you. Can you can say that. Maybe thirty percent of old school on Prem type software has gone to SAS thirty percent so the pollen of user seventy percent left but the flipside is. That's a lot of market penetration right. It actually starts approach forty fifty percent. You should see a slowdown this secular trend into SAS. When when even when you started doing sas certainly when I started doing it was risky. It was quirky. It was weird. It was it disliked. It was it was not trust about two thousand sixteen through about Twenty Sixteen. Maybe even a little later at the first astronaut. Aaron Levy came one week after the box roadshow and asked him what the public markets. He said they're starting to learn about it. They're starting to get comfortable in two thousand fifteen. That's that's only twenty five years ago so we are so that thirty percent was probably eight percent right and so there is so there's so so there's a the good news is seventy percent left. The the risk is like you know there's only so much of this crazy growth and another thing happened. Which if you look at any Gartner or whatever this and this no one anticipated more of. It went we all knew there would be a substitution that of however you define it a trillion three and there's different metrics how much infrastructure include. We all knew that like the old the old on Prem Safra would go to sas we didn't realize that it would. It would take up thirty to forty percent more of those. It budget so they used to so we got an extra boost. People are spending more on software. No no one from scale no one from anybody realized we would spend more on business software because of SAS but has physical limits. It budgets are only be so much of global two thousand budget so these Amazing Trans created many many Saas companies. Doing a billionaire are billionaire are but but they're gonNA hit headwinds there. There's no question those headwinds that's different from whether that's going to box out startups. By the first half of the apotheosis there is going to be a slow down as we just forty fifty percents over the next five years. Yes there has to be and as we stop putting more and more of our fixed. It budget into SAS. These are two great trends and they will reach saturation. Got It okay. Now on certain point and and being boxed out using more skeptic I think this is the best time to start a startup time. Tell me why because all the SAS leaders are billion. Two BILLION COMING UP ON A billionaire. Zenda shop is the hub spots. They don't have taught they don't have time so if you're a billionaire and they're all growing like a weed growing thirty forty percents shop advice. Going fifty percents off. But they're all growing. They're all growing with a few exceptions. They're all growing north of twenty percent. All the leaders true. So let's imagine you're in a building air which now they're like twenty of these companies. How much do you have to add this year? Two hundred even three hundred. Maybe a lot you're thinking about non-organic time to compete with your little startup. That was just on tech crunch. You know ten years ago. Five Years Twenty fifteen. When when Aaron came from box Aaron would see a startup. Doing five millionaire. Get a little worried. I mean not literally worried but they. Hey this may disrupt me. Is that right Stewart. Butterfield doesn't have time he's GonNa read it. He's all over social media. He's an incredible founder but slack doesn't have time going to a billionaire to worry about someone that did five million has got to worry about. Microsoft has gotta worry big guy so that means you have a lot of air cover to get not just to a million before your competed with by maybe one hundred million owes underneath the. We'll just ignore you because they have to focus they have to hold it and adobe turning around now and everyone from fig on down is competing aggressively with them. But why because they're stupid of course not? They're very smart. Sap there they were busy. It's too small. It was too small right and there's too much growth in creative cloud creative cloud fuel the dobies text market cap growth. So they just. It's not that they don't watch what's happening with web flow and figment everyone. It's just too small until it's nine figures in revenue because figure has become materialists. I don't know how they're all super successful and it's not because anyone was dumb. It's just because you can't compete when they were small you just can't. You're too big. You're they've grown too quickly so it sounds like instead of this problem. It's actually there's there's more freedom because become now too busy to kind of mess with you get up to ten fifteen twenty million a are before they even begin the guns on your ship and because cloud got so big. These niches got big. Every niche. That used to be a millionaire NECC- now can be one hundred million Monday dot Com. Where you're talking about who we needed another project. Management for Non Tech folks that went from one hundred twenty million in four years. But that's a that's a piece like ten years ago. That would be a two million dollar business going to two hundred million so let's whole years one hundred times bigger. This little niche that Monday found and they're going to do a billionaire art. So let's talk about Vertical Saas. Jump ahead my question because this is what I wanted to get. Borough Ready It seems like you're thinking about Vertical Saas than isn't that this is GonNa be constricting idea but inside these these these takes on like the dentist industry or whatever and building software for those could be enormous because the niches have gotten larger to your points. I presume your a bowl on vertical sats. I've always been a ball. I would say even more simply. Look at any company to billionaire. Look at his desk job. Okay which is already two billion. That means they're gonNA keep growing. That means they're going to get to five or ten billion. My rough math is there's another billion vertical version of that so there's another billionaire could be more and that means there could be ten UNICORNS. One hundred million ten verticalised desks right And doesn't even have time to meet with them right. I Investment Company gorgeous which is like a vendetta ECOMMERCE. They're almost all on shop. Affi- it's very niche right. They're gonNA be growing three. X Ten million error. Is that tune it? People thought this company was to NICCI twelve. Apparently it's not nine. Three hundred percent honest has an offering it as a great product but all they do is make sure your fulfillment from instagram to shipping. That your contact center works magically. Which is good enough. Note is enough. It is enough to build a three hundred million Arab business. But it's just a niche today. That's so big because cloud is look how shoplifting. Today seventy million dollars in two thousand fifteen it was worth eight hundred million so these niches have grown astronomically and that means these vertical SAS things. We've like gorgeous and others. You turn around. And how could we do be a unicorn? Well it wasn't four or five years ago right when I met I met the founders only twice twenty fifteen. They were great but it wasn't clear it could be as big today but cloud. Gubbay point about Zen desk in there being room for ten unicorns underneath the desk at one hundred air. The implications vertical sights will still generally smaller companies than the original broader. Sass play so to me even smaller than salesforce. That's an example I don't Viva is a Pharma. Sierra Viva is the most successful verticals ass company so the CTO salesforce left salesforce a decade ago founded VIVA. It only raised three million dollars from emergence plus. It's now worth twenty billion dollars. Today he was also in my class. Like everyone did better than me in my bye-bye on the show but you should just get out. We should bring Peter Gassner. He's like a hundred times would have been me and vivas was twenty something billion and then how to products and he. He said look sales versus a great horizontal play I WanNa do Pharma and there. There is a legacy vendor in the space and it's big. It's a big space and all their deals are seven figure eight figure deals. But it's still. It's still a thirty billion dollar company and salesforce is one hundred fifty billion so I can't think of a vertical SAS that is bigger than its horizontal play but it may well it may well exist but thirty billion still outcomes. You're at three million dollar investment. Even if they are smaller by definition you know there's going to be enormous your general point about the client it's up it's becoming growing the high antigone larger piece of the overall. Everyone seems to be very hot. Verticals ask these days. So that's why I wanted to ask because they like it because the cloud got bigger and because competition is simpler the amount of domain expertise you have to do to build a viva is. It's rich compounds on itself and there aren't going to be twenty startups out of y Si. They're going to build that. But but and so there are these verticals because finally they realized they can be three hundred air business and then they can actually millionaire and they realized look it actually works. I can like I. Invested in in a SAS company just for environmental compliance called map history right. They disclosed their first. One million dollar deal okay. They have like no competition not in the whole space but in what they do they can have a few bumps and they can get through it. They have time they have times. There's not ten other players in the exact same thing. We've guys may disagree. But they had like one or two competitors and their original competitor was I think. Ms Dos based in offices. So you have time and so like this because you just. You're you're overwhelmed with the competition. You're overwhelmed with everyone. Wanted to take on snowflake and data dog and and there are many great apm companies. But it's exhausting. How do you know what's the next day doc?
Why Front's Series C matters
"I'm Alex Wilhelm and once again I have have denny Crichton with me Danny how are you doing. I'm doing awesome. That is that's enthusiasm. You are back in New York. I'm in Providence and I have to say I've I've had enough of this shit. I want some summer but the good news is despite the terrible weather and the time of the year. There is a gazillion things to get to. So I'm going to skip the usual faffing about and jump bright in. I'm going to start the show with front which I need you to explain to me why this particular funding round was such a big deal. Right you'RE GONNA kick off the entire show that so start with why. Hi the Health Care Front. Raise fifty nine million dollars in series C and Here's here's the deal. They didn't have a lead. They had no investors. There no lead V. V. C. WE KNOW Vision Fund. No no sequoia. Although Sequeira did the series B. on they actually lead with a couple of really prominent be to be CEO and founder so lasting Cassia and founder Mike Cannon Brookes octa CEO and Co founder Frederick Harassed Multiplex Co founder and CEO. Ryan Smith Zoom CEO. Eric Yuen. What's interesting here here is is? We're getting to these late. Stage growth rounds at a time when there's more growth money than ever and basically said now we're good we're just gonNA take from really prominent angels. Who all of that exited you know? Kind of startups and. So what's interesting here is twofold one is one the dynamic. VC industry which we can talk about more but to actually kind of the strategy here of front is a B. Two B. Product Arctic. Selling to other kind of B2B startups and so by taking this money from other kind of B. Two B. Sales centered Start founders and see IOS. They're really kind of like buying. I'm from their own customers so to speak right synchronicity. That's connecting the two together. So the fifty nine million dollar round had no lead. VC there was no like Kleiner liner coming in here right in the big check. I'm curious do you think that the disease that previously invested got pro rata in this round or do think it was all just money from these I guess executives turned angels. I think they've got Harada me. I don't think it was in the press. Release that they did but I am sure they did. I'm also not entirely clear that these folks took the entire round. I mean there could have been nate. Twenty or twenty five million dollars slug from around that was announced yama funding from a farm that was announced But nonetheless like the fact that it was positioned this way If you imagine in ten years ago this sort of round first of all wouldn't exist but this ground where we would said Oh a bunch of angels came in late stage. It'd be like well. This company must be doing terribly wrong Novi. ABC was willing to lead the round. Things have changed so much. That founder can literally say God. We got a couple of individuals around at the party. At the craps table they put in fifty nine million bucks. We're going wow unbelievable. They said no to everyone. It's amazing change in time. It is but also I'm kind of embarrassed by the number of people I know on this list. Like I know Frederick a little bit I know Ryan a little but I know Eric a little bit. I think I've met J. I mean I think I need to change industry industries because the the same eight people keep coming up. That's embarrassing to me. I need any new friends. Let's talk about what the company does front is be messaging kind of calms thing. It looks like email works for teams. I'm assuming this is kind of product aimed at customer support customer success kind of groups. Yes affront fronts. Innovation was really for a lot of top companies they have an email like support at techcrunch dot com or press at at Google Dot Com. Which is actually how we reach out to right? And so when that goes into Press Google Dot com on that actually gets centered and moved around the the thousands of people who are in Google Google to figure out how to respond to it. So if he's coming from an ad tech crunch email address like from us he goes to our tech crunch contact if it goes to APEC Asia. Pacific it'll go to someone who's live overnight overnight overseas and so basically thousands of people are accessing the same email inbox and so. Have you ever tried to do your own inbox with g million. No it's basically impossible with one goddamn person on the box. Now you had an hundreds of people all of whom are interacting with the same emails etc and suddenly. It's just a complete mess front. Took that and said Hey. What have we built in box from? Scratch zooming that. There are thousands of people or hundreds of people reading the same tickets reading the same emails. And how can we respond to it. Really really effectively. Huge problem tons of companies have it. They've been super successful. It's only a couple years old and what's interesting is actually the the founders are French It actually has a large Parisian office one founder Laurent Had A decade and enterprise. And then WHO's also female be to be founder of rare breed unfortunately in the industry who CEO up and she. She kind of came out of her master's disagree in two thousand twelve and dived into this and front. So it's a five year. Old Company raised one hundred thirty eight almost one hundred forty million bucks. An insane amount of money ended the speed was raise capitals crazy because their series of ten million was back in May of two thousand sixteen. Then Bam sixty six million early eighteen and then two years later fifty nine million so really. It's pretty frontloaded or backloaded. I'm sorry to kind of where we are in time now. I'm curious to see how much more capital they'll need to scale this to IPO. It's already kind of there. But certainly a lot of star power a lot of customers on this new investment and. I'm kind of curious that this is a trend that will see a flex from companies. That were so hot. We don't even need venture capital all the real stars of our industry the money in It's certainly a new way to approach it absolutely. I think one of the key lessons here at least for me was a company that really figured out product market fit super early on You know if you look at it was founded Five years ago it took two years to build out so uncork. Capital is sort of a firm that argues it focuses on product market fit. They raised three point. One million seed in October two thousand fourteen and then once they sort of got this product market fit. And it's sort of obvious today but looking back in time the idea that there d the SASS product to fix this team oriented email. inbox was sort of not a concept of. Now it's just scaling right it's all sales scaling And so we're seeing the rounds. Get faster and faster. Because they're repeated you you know the sales are repeating assuming the growth is repeating internally. The numbers look great. It's sort of classic SAS business I expect us to see as one hundred millionaire our club as you call it hopefully in the next year or two that there hasn't been announcement around the revenues but I expect it to constitute here about their W. two and a half year over year now has a pretty quickly quickly there probably. I Dunno just guessing. You're twenty thirty million era or somewhere in there and they'll be largest soon enough. Let's talk about the couple world through a different Lens. Though you have been looking at Tau really large funds cutting smaller and smaller Jackson. We're talking about funds at have billions in assets under management writing five seven million dollar checks which seems to make no oh sense. According to the old model of larger funds larger textile works otherwise. They can't really disburse the capital. But that's changing and I want you to tell you why because to fascinating fascinating kind of like nuance about today's venture capital market. Absolutely free front is a great example of this right. So here's a fifty nine million dollar check that no growth stage investor mister. WHO has a billion dollars ready to deploy was able to invest it and so we're seeing once again The largest funds billions of dollars. We had we talked about last week. Show I think we had twenty-one fundraisers that were over five hundred million last year. It was ninety one somewhere in that category so a ton of money deployed and so the idea that you would do early. Stage investments is nuts. Because you can't deploy million dollars a thousand times a year and so the challenges is like. Why are people doing this when I started asking if he sees the answer was well once the the cap tables in the series B and D are out there? They're locked it in a sequeira already in the a benchmarks already in the a founders fund the and they have the capital to deploy in the B A C D E F g all the way through the Sesame Street Alphabet All the way through and so by the time you get to the D. you have no access or in the case of front. No one had access suicide. Basically you have to lock in earlier in earlier and so even if you're the Softbank Vision Fund you WanNa throw four hundred million dollars in series d you have to be in the seed or the series. He's A to start to lock in that Barada to start locking in those early ownership rights. It just gives you more ball control later on because other people are going to kind of knock you out of the way to get around in place and so there's sort of this paradox. Where we're seeing? You know the the largest latest stage funds doing the smallest early stage rows and so that that was a really interesting dynamic that we haven't seen before yeah and the one thing to keep in mind that when I was learning about the BBC World you know maybe a decade ago. Now I was always told that if you couldn't find a new lead investor for the proximate round the next one. It was a very bad signal because it would imply that no one else in the market one to lead your Siri seafood areas to be and having Europe preceding investors. That were leads lead. Your next around was a very bad thing. Now it's entirely flipped on its head because capital is sufficiently unscarred so ample so much flowing around the people want to stay in a company. Preempt preempt that next round they want to lead be and then the as much of the capital to work as they can on a winner to ensure that they can return enough capital to make their large fund contractive enough to raise a second one. So it's a facet of there. Being too much money in the market is certainly a change. Compared to how things used to work it's actually an inversion but it just goes to show how in twenty twenty the way the world works certainly is at least in my experience new. I'm maybe it was like this back in the late. Ninety something but certainly it feels like a new chapter and I presume zoom. Welcome back to what used to be normal when there's less capital around but I don't see that happening for the next eighteen twenty four thirty six months so this this is the way it's going to be Danny presented for the next while.
ClassPass, finally a unicorn, raises $285 million in new funding
"Raise Wednesday class pass. Ask which offers access to gyms and health clubs via a single subscription raised. A two hundred and eighty five million dollar series around led by L. Catterson and apex digital at a one billion dollar valuation quoting techcrunch. In two thousand seventeen the company announced it would be introducing a credit system via virtual currency combined with its data around the popularity of classes. This allowed class passed to introduce variable pricing instead of users paying a monthly fee for three five or ten classes per month users. I could use their virtual class past currency to sign up for classes and pay based on the demand around those classes with the revenue model in place and working. Class pass has focused on growth growth over this past year. International growth has been a top priority with the company now operating in twenty eight countries partnering with more than thirty thousand partners including Boutique Studios gyms gyms and wellness providers. The second area of growth has been on the Business Front Class Pass introduced a corporate program that allows organizations to subsidize their employees using the product. CEO Fritz Landman says this differs from other corporate programs that asking the employer to subsidize each individual employee whether they use the product or not thus far class pass has more than one thousand employers using the platform including Morgan Stanley Goldman Sachs Google and
Samsung Didn't Sell 1 Million Galaxy Folds After All
"Cancel the folding party. Everybody Samsung Electronics. President Young Soni told the audience at techcrunch disrupt Berlin that Simpson had sold one million in units for the galaxy food however unfortunately a Samsung spokesperson told Yonhap News that zone confused one million actual sales with Samsung's sales target so no Samsung has not yet sold one million galaxy faults.
Twitter plans to delete inactive accounts from the platform next month
"Drew olen off. Former CO worker of mine actually at techcrunch pendant op-ed on crunch regarding twitter's announcement announcement that it would reclaim accounts that have been inactive for at least six months. o-of brought up how this would eliminate the accounts of deceased users including his own father's accounts counts after his and others concerns twitter posted that it will develop a way to memorialize accounts before proceeding with the plan to deactivate twitter. Also further explained explains why it's doing this pointing out that the policy was always in place. It just wasn't enforced. Local privacy laws including the GDP are have encouraged the company to you start enforcing it more than ever. Twitter also said it may have to change its existing policy as well but we'll communicate those changes broadly before bringing them into effect. This was you know. And if you haven't read drew's piece it's it's it's it's a great example of why he'd be like this is insane. I can't have this. Go Away this person is no longer with us. But I don't have the password. I can't take control of the account twitter. You should do something about this like it. He actually means a lot to me and I know a lot of other people feel the same. Yeah it was smarter twitter to jump right on this point out that the reason they're doing this now now is because they're trying to comply with privacy laws like you said. That doesn't mean they have to do it right. The second and since people have pointed out something they want to take into account. Don't worry we're not gonNA just start inactivating everyone's account so it's good to get everyone to settle down like don't worry drew all it off. Your Dad's account isn't going away. We're going to come up with with the solution and we will communicate that solution like this is actually good recovery practices from twitter here to say we would. Let's explain what we didn't explain correct the first time and let's let you know that we will definitely tell you before we change anything else and so that is good. What I wonder is an 'cause I I can't believe this didn't come up product meaning when they were talking about this why they didn't have this as part of the original plan? Was it something. They assume they would get to later later when they revealed more details and underestimated the backlash. Was it something that they just thought. Well it's going to suck for some people but that's just the way it goes and now they've changed remind. I'm very curious about that part of it. You know I would guess and I was not in any of those meetings but I would guess that this was something that yeah the product doc team was like we gotta deal with this but once you humanize it. It's like a we have to deal with us now. You know it that really even even if all all your intentions are good. And there's you know there's there's a roadmap of how things are going to roll out and that's just sort of the way it works with a company the size of twitter when you when someone someone says this is pretty bad. And here's why well you have to change course. Sometimes it's good to see them do that. I would just add. I'm with Tom. I just can't believe he just didn't come up. It seems crazy to say that it didn't but also I've been around long enough and around video games long enough to know that sometimes stuff gets in the wild and he didn't mean it that way or you meant it in a different for way or you're just got ahead of yourself and the wrong people talk to their own people and of course correct and that's what they're doing so that's that's good yeah and You know sadly might. My father died before twitter came along and A would've loved him to see this. I don't know that he would have used it but I would have loved him to you see it and and and if he had an I want to give a big credit here very well crafted piece. This could have been outraged piece. It could have been an angry. It wasn't it was him very touchingly. Using his dad's existing tweets to make his point and what I thought was a very elegant and powerful. Way Way I don't know maybe that was part of what would motivate a twitter. But but this is something that I can tell. Even though it wouldn't affect me I would want to have have if I had those sorts of tweets. Druze has of his father. Well and I think you could almost liken this too and yes my father Who was no longer with us either? Never knew twitter but he did leave me a couple of voicemails that I will never delete. I don't I don't listen onto them every day. But they're they're and they're very important to me. They're sentimental and if my phone company was like we're going to go ahead and blow that out I would i. I'd have a problem. That is what makes me that. Makes me think of this recording of my dad. Giving a lecture on evaporated milk That digitized because I just love hearing my dad's voice even though I didn't understand half of what he was talking about. And so yeah if dropbox dropbox said wow that. MP Three doesn't match. We're getting rid of that. Yeah you haven't listened to that and you get rid of it totally. Well that's where we're at where these services only been around what ten eleven years and we're starting to experience. We're having to make rules that there were no rules because we didn't do this
Best Buy Canada reportedly posts Pixel 4 product page, briefly
"Hugo's pixel. or is coming in gadget says it will likely be announced Google hardware event tomorrow but we're already hearing some of the specs thanks to best buy Canada it posted it on its website and then cook it down so reports say the Pixel four and for xl should have dual rear cameras and handsfree controls like face unlock and motion sensors which lets users quiet calls skip songs with just hand movements techcrunch says Google could also roll out a new chrome os device pixel ear buds and Google Wifi we'll find out for sure all the details tomorrow
"techcrunch" Discussed on Biz Talk Radio
"And so as Google got more important the blood got more right and now it the company to watch his face but so Facebook as it's getting more and more important is shifting all sorts of things around the web yeah these like buttons for instance now you see techcrunch putting these like buttons on techcrunch right what what does that mean and what's that going to mean five years from now that's that's where the it's interest with your your kernel of the person that people see as being the person I kinda cracked the code on corporate blogging so you went from doing the conference so how did you make the leap from doing the conference and helping the quote helping with the so that was the side of the world understood him the I was in two thousand and I took a lot of risks on the way and so I was working for five set this magazine company and I out it with my blood I almost got fired because I leave some news about Microsoft dot net system or anybody else did and then and that pissed off Microsoft so I learned what this stuff makes out that's a key and I I've been in the feeding trough for a while so I knew I knew a lot of people there and I knew sort of the culture starting in you almost I almost got fired almost got fired from a magazine that but then eventually through your career you end of working for Microsoft yeah so I almost got fired for anything about dot net which is sort of funny I'm I I I.
"techcrunch" Discussed on Mixergy
"I mean, so the the original dresses we we started with just a handful of dresses and coerced are a couple of our friends who were so cycle instructors really beautiful women to to wear the dress and convinced a friend to take pictures for a couple of hundred bucks to to start to start the site in one of the dresses was my dress in. So my husband actually like saw my dress before the wedding. It was dragged around the streets of San Francisco. My mom had to remove gum like the train before I wore it for my like, of course, we've gotta show the best the best example of our work. So it wasn't any sort of like leads. Let's make a bunch of these in like have a professional photo shoot to start it. It was like, hey, let's let's start this minimum viable product. Just like a couple of dresses. In this bare bones website, and it was clear that women really, really wanted wanted to get involved and so it it grew from the first ones where your friends, then friends of friends and it started expand from there tech crunch wrote about you guys. Did you get any any sales from techcrunch a lot? Yeah, tech crunch, actually. Wow. Okay. Hon a ton of people. I think it was great for us early on as a company because we didn't have wedding wire views. We didn't have great word of mouth from weddings that had actually happened. And so the first set of customers were women that were a little bit more open to tech innovations or doing something a little bit differently for every single one of those customers. We assumed that there were ten twenty thirty in the background kind of waiting to see what happened like is this too, and now I mean, now we have this amazing organic gross. If you go to our Instagram, it's will never have to have. Have a photo shoot, thankfully, ever again because it's just full of our real customers on the happiest days of the professional photographers to take Ryan professional.
"techcrunch" Discussed on Startup Financial News
"Early stage investment is so crucial to the startup world as we know it i will repeat it if you do not fund mass amounts of early stage companies mass amount of early state on for nurse the ratio of funding companies to finding the one unicorn or the two or three companies that will make it to hundred thousand ten thousand extra turn that percentage goes way way down which means that you have a much lower success rate so what has to happen what has to happen is he's venture capitalist because of not putting the money into early stage companies as we're now hearing as we now have proved from techcrunch which we predicted and months ago as this occurs you have this disconnection between the good founders and entrepreneurs that need the money to build these companies and the good venture capitalist action know how to find these companies because there's the venture capitalists are stuck in deals the early stage entrepreneurs are saying shit it's not worth going out after the venture cap money now because it's it's too discombobulated there's not they're not making vestments into early stage companies all right let's just bootstrap it will turn into a lifestyle company whatever whatever whatever that's what's going on that's what we've been saying that we've been covering for weeks for months here to prediction again that we made the way beginning in the show and i can't stress enough how big of a problem this is folks today is april sixteenth two thousand eighteen mark my words mark my words the downfall of the startup economy as we know it will be the lack of funding into early stage companies this is the beginning of the end for the arrow of tech startups as we know them today and that folks is where i leave you on episode one ninety nine of sf n started financial news there's a lot to think about in this episode there's a lot to be worried about but remember entrepreneurs we have to do is we have to identify these trends and opportunities now so we can make the most out of them whether they're good or bad that's what entrepreneurs do bearable market we can find ways to exploit opportunities and make money.
"techcrunch" Discussed on WFEB 1340 AM
"Sure the market constituents this is a pathetic it was russia will work with him bye why don't you interpret his first one company yeah which the we should be much it's not the appearance on it so police police officers but two two what about this what did you too right a week techcrunch the commission has i just got tangled it was oneplus nathan said the didn't what really that when it got a chronic sms one what killer kelkal accordingly akg have when we of course presi why hotel room the whitman let me this morning upi wyde two muscle a camp when he was knocked unconscious on a coral just last question nvidia jim i what was gone two cortana two.
"techcrunch" Discussed on The WAN Show Podcast
"Apparently i'm not in a suit saying that it was a good thing announcing i'm just saying that v v i think the knowledge we says the whole increased at that time right and i like that all right let's move on to back i dunno i don't care anymore uh let's move on to the galaxy s nine says was posted in the forum by de one three h four r d two l ally v e die hard to live in the very worst leat speak of all and there's no spaces but anyway noticed that edward the wiebe had your like kat ear long purple hair photo thing that was his avatar nobel now i did night was all right so the article he areas from techcrunch dot com with the gals their headline is with the galaxy s nine samsung put the fingerprint sensor where it belongs and i guess that's probably the headline because there isn't a whole lot else to say about it i actually missed my briefing today that i was supposed to attend oh no i still don't have a device how will we know what it's specs and stuff are but fortunately um certain newsflash for the canadian pr team the rest of the world is a thing and the internet while the internet and so i can just read about this tough on other publications website us amazing where they already know this stuff because they already had their briefings like a week ago not that i'm salty are at center anything just that it's like whoa beer in it being in canada is like a big like a big dick time.
"techcrunch" Discussed on Channel 955
"The wall street miss unsolved piece of our time reading the he's myers related to box learned his case is legendary unsolved murders of to block and then it will use ig new series tonight at ten nine central polio usa network throwing shiming spreading positively and three musketeers wants to know how do you throw shine either sign by telling my friends there awesome making some one laugh showing i care that's of shine is all about go out and throw shine with positive messages on every three musketeers bar the dick mississippi the day on the hottest graham gooch mother y'all can stop me now this is a message to a north wales the end of the tunnel gettman there is women the figure pick your gas deeply with must hollow hollow people single ran together people jumper get vr vr vr vr it's a full day get your v it the to the gift jio people you'll know lenient timber pearman has attorney years ago now what the drill ago you've run the battle and let me go at the peninsula aboard boom would you go we get the bread he should be gathered to catch a director gift techcrunch each week blair with nyerere right with networks fell back to the mojo in the morning warmup show satellite five five three breadknife megan myself crazy voted down on murder they would say made the point a wedneday signnow by dole here come on me through a muslim.
"techcrunch" Discussed on This Week in Tech
"Techcrunch matthew linley says it's a fourth quarter whiff oh isn't that bad net loss but most of that's the nine point nine billion dollars they paid in taxes that's where the loss of really came from i think the most interesting way to think about alphabet is that gugel itself he talked about this on on on twig is become a boring company it's boring nodded ealham must born enemy a and i am debts that seems to be by design beak because the ceo um what's his name a blanket unsee ios name uh he's a boring guy i mean he's a he's a keep the trains running on time kind of a person he's not a visionaries not a risktaker and then meanwhile i think what's interesting though is that the longterm prospects for alphabet are massive the stuff they're doing in biotech and all this other stuff is going to pay off in five ten fifteen years i think they you know reversing what i said about the mistake of alphabet before i think the seeds at they're planning now we're going to be redwood forests uh and and they're going to be huge in the future i think there's going to be a lowly shp period over the next five all right so you're bullish i'm super bowl asia and well the laudrup it does in the present term lull they need it they need a real but kicker of a smartphone to fill that gap and we know that they've got htc may be not being a terrible company that they will close they spend a billion plus for two thousand engineers the engineers who built a pixel and a naked make you know the pixel picked up a little bit of buzz but also had some launched issues if they get a pixel three out that isn't garbage uh you know there's i don't i think there's enough room in all of the the smartphone landscapes were loyalty can be chipped away at and if they can just really get out there and get either something affordable with the best camera in the world or something that you know lasers cancer facing gives you a free puppy i don't know what it will take but there's still room for them to essentially get super aggressive in the hardware mass.
"techcrunch" Discussed on Connected
"Mike is the ipod color i like both in our thing i think both would get won't the good but i won with white um and i think the white maybe maybe more fun i got some some ideas for photography and stuff for this for review so i went with the classic ipod white yeah i think that that's gonna stand out more in video sending photos i think in this more sense from a visual perspective but i considered like most of the furniture him in our leaving room is 10 10 stored black or really dark brown and the wide home pod would a maybe you know it would seek out a lot i guess we have also the server and which is black and the the echo which is also black in the same area of the of the cabinet that we have sold the home part of the speech great one would blendi in a little better i can imagine or is this coming from a kanto coming from everywhere america the next item in our followup makes me really really upset reasons for a couple of reasons tell me 10 me about these story from techcrunch babacar is a company that we have followed on the show i would say obsessively mm it's it's a service that you personally use and endorse no idea us live i do not i really do so this is a service that a for those who are not aware of blahblah car it's a car or sharia how you can it be.
"techcrunch" Discussed on IOT Podcast
"Podcast is so we'll keep you up to date all right bad news laos in the consumer hour i didn't realize you're gonna make your said noise kevin warrant or so hurry i would have pause for that all right techcrunch is reporting that spiro laid off dozens of people as it had a bad holiday season and it also reported the tile laid off dozens of people after a disappointing holiday season and that is unsurprising consumer electronics are merciless in the holiday season can make or break a company but it is kind of it's a sad sign for the consumer iot market and we're gonna talk about this with our guest matt turk a little bit later but the long and short of it is man this year is 2017 has been brutal for consumer hardware iot and i don't see get better it has i think the companies that are doing better or have a were brighter future of the ones that are expanding their product line and when i look at something like a title they may a great product is a bluetooth tracker and they've tweak the design and features a little bit but that's all they make well that's not true so they actually have a platform that they're trying to me a platform to put the capabilities of tile into lots of different product so they have a deal with an umbrella maker they had a deal with land rover they have deals with companies to find your land rover with your phone using the tile system so and let me to stop though because that will i didn't know about that and that is good that still the underlying product feature and they're trying to gather partners as opposed to create more a range of devices and gathering partners is not always easy and especially when it's something that is as fundamental as bluetooth tracking when there are multiple products that can do this in their apps on your phone that can do that i mean that's just not in the expansion of products to me well so i think it's actually a smarter business strategy thin selling more kind of.
"techcrunch" Discussed on Mixergy
"Now other do that i can get you a bunch of foundered techcrunch feeble in there and tell her all right so they're gonna have twisting it in tweaking it and trying different things and you ended up with email an email lists of journalists and if they use your software that it's actually you not giving them an email as journalists you have it internally but they would use your software to reach out via email to those journalist right it's like selena journals you wanna reach and send them a message an executives from you just telling people if i built as would you be interested they said yeah i would love that well yes so essentially people were paint ten grand a month seven grand him onto pr agencies and narrowly klicina we only got like three stories two stories a month and can i get better and i'm like yeah you can can't like ten stores in months five stores about you can do it on your own and are like well i don't know how to do that and mike well think i'm going to build pisa software that you can send those emails out just like a pr firm does and so people like nodding their heather right i want to be just like a pr firm but by myself pain you one hundred bucks a month or fifty bucks a month and not paying ten grand among two preoffer arm so they were nodding their hands saying yeah i want this i see so but they were like they still did not how to build those relationships like they didn't know how does reaching out into that to later i igf said and by the way this is such an easy thing to do i don't know why no one else thought of it you just you can find those email address is fairly easily cause reporters don't hide their email addresses they want tips you have a sir.
"techcrunch" Discussed on Dorm Room Tycoon (DRT)
"While we're trying to figure out what works but i mean you know i think at a high level you just had to figure out a way of basically monetize ing off of the influence and offer who your audience i mean the same way that that business weaker fortune are vanity fair you know they charge different rates than someone who's reading you know than than someone who's you know their eyeballs more powerful and vanity fair eyeball odds star bag zine or you know a tap uh it's the same thing in the idea that just because we're online and we can measure things more efficiently means that somehow that math has gone out the window you know doesn't really make any sense you know i used to always say at at when i was a tech crunch will blew me away is you i i went to tech reg after business week end business week when i was there was the largest circulation business magazine and you know i've worked for very hard for a long time in my career to have the privilege of working there and you know a lot of people subscribe to business week but the magazine sort of sits on their coffee table was blown away with would techcrunch is how many people just read endeavoured and commented on and just loved that publication but you know techcrunch charged a tiny tiny tiny fraction of what businessweek could charge for an ad why does that make sense it doesn't it you know and so it was you know iced always say that everyone out we looked tech renchmade everybody else more money than we ever made ourselves.
"techcrunch" Discussed on Mixergy
"Um look at what do you mean what i what i'm curious about is if you're a leader and you're gonna be in a situation like this to read as a leader bitcoin where you believe something you see the future but no one else does you you can't just say screw you i'm improve you writing ten years you have to say here's my vision get behind me so that i could be proven right in ten years what did you see that he did in wooded you learn about that for for light coyne well what what he did was woes appointed build a team that believed in this station right to build a strong team to build a product to make it happen in i think that was the was important thing to just have a smart a strong team people like you then you still believed in it he didn't have to convince who saw that vision got it i see what else did you learn about working for a for a quinn base would you learn about business would do learn that you didn't when you're working a twitter that annexing attack crunched that you're taking a missing techcrunch and twitter lemonade and learn a global what you learn by working a coin base um when i learned we can columbus that of him so the different yet to celebrate small winds um at at google like anything you lanxi gilligan million users very at corn bays start small like if you make a million dollars it's like a huge thing so um it's it's kind of it's very different where you can high teaches bill would start from scratch and just built something from ground up and um that stuff.
"techcrunch" Discussed on Tech News Today
"Techcrunch reports that accompany dedicated to finding ways to hook users has earned a million dollars in seedfunding dopamine labs isn't hiding the fact that it can show app developers how to make addictive apps they say they're using brain hacking to make people healthy wealthy happy and wise to that end the company also has created an app called space that encourages you do breathed mindful a for a few seconds men decide whether you really want to use that addictive app or not uh the company created by a neuroscientists in an economist aims to use artificial intelligence to determine the exact rate amount of dopamine dopamine that humans need from an app to keep using it of course dopamine is that a good feeling we get uh when you know we give someone a hug her we checked twitter or her we notification instantly you kind of light up a little bit order would it says right or you know sometimes you get it from eating french fries are like all kinds of pleasurable activities and so they they've figure out how to do that in in an app with code which is i couldn't i this story was very interesting to me because they're they're like openly saying we will help you create an app that people will be addicted to isn't that wonderful fame time they're saying you know we just want to bring joy but does the diction bring joy well so i guess it it really depends on what how they plan to position this and if they're going to pick.
"techcrunch" Discussed on Daily Tech News Show
"If that's it's very interesting all right let's start with a few other tech things you should know wall street journal reports that uber plans to close its exchange leasing program duda unsustainably high losses techcrunch confirmed its considering a number of options including be selling the program to a third party on faced an unsustainably high losses that's though freeze you wanna hear too often yeah uh but maybe somebody else can go of it is what it sounds an yeah doesn't it's it they don't make it sound very appealing though the framing in that way spotify arrived in the xbox store for xbox one users it can play music while you play a game and features scheming oriented played list this is the leak this is the reality following the leak where we saw larry herb messing around with it now for real google fired james day more the engineer who wrote an internal memo criticizing koogle's diversity policies ceo sinndar pichai sent an email to employ saying the engineer had been fired because his memo advanced quote harmful gender stereotypes in our workplace dame or told reuters he would fight the dismissal and had filed a complaint with the us national labor relations board before the firing this is a social and psychological issue it's a science issue it's a political issue it's not really a tech issue so much you should make up your own mind about how you feel about it but make up your mind based on what he said in his memo go get the memo and read it.
"techcrunch" Discussed on The Tech Guy
"And the f a khania loiseau's at over techcrunch interviewed him and talked a little bit about this this ilan musk thing she says you're writing a book on a iso have to ask you ilan musk expressed again this past week and that a is an existential threat to human beings agree and brooks said they're quite a few people out there said that a isaac existential threat stephen hawking right there's there's a smart guy astronomer royal martin reese has written a book about it and they share a common thread says brooks in that they don't work in a i themselves for those of us who work in ai we know how hard it is to get anything they actually work that we're not we're not too worried we're not too worried he says people look at uh google is alpha go which you know beat the world's reigning a go champion echo which is a very hard thing to do and it's a hard thing to you to do k kate that that's miami's on echo and i said something about it's hard to be go in and and she says she took a personal i am talking to you not talking by the way might to do as thou has hard thing on it which this is not what i this is wasn't what i was anticipating get hiddink all right brune continuing on you see there is an illustration of the and this is what brooks insane alpha gold looks like it could beat you know it's like thinking it's smart but it's not it's it's a very limited machine a can't do anything beyond go i just demonstrated this with the amazon echo new talking to you i'm not talking to you sign it looks like i didn't human currently dino strong bono.
"techcrunch" Discussed on Technotopia
"Well you know what i i this isn't really interesting topic i think the first one of just like under this branch of sex tech in the right body because i also felt like oh my gosh this is tired italy creepy the papal making sex robots until i interviewed the makers of the sex robots like douglas hindes and met macallen who's a creator of real dolls realize a lot of the people that are buying adults at least today and not in the future today um it's for therapeutic reasons or because of the bane theresa via trauma a nikon relate to another person sexually ends or even perhaps they have a disability or they suffer from cerebral palsy and say him i'm really having trouble getting and go friend you might me this dossier i suddenly became a lot more empathetic to this idea of six robots which know in the mainstream media in in honor of gender is totally creepy i'm going to think the it's it's interesting that we're just jumped into this i jump rooted to unfortunately i think you know i think that's absolutely true the idea that if you have if you have an issue this is one way to criticize surrogate for yourself and the and with all the told the dawn extortion all this other weird stuff that's available we have the opportunity for this but i think as you say it's considered creepy or weird by mainstream media i'm i'm the citizen i'm the only techcrunch journalist who actually cares about sex tech a for most part primarily because i think.