Daily Crunch: Facebook acquires Kustomer for $1B

Facebook makes a billion-dollar acquisition, we learn more about Twitter’s Clubhouse-style feature and Moderna applies for emergency authorization for its COVID-19 vaccine. This is your Daily Crunch for November 30, 2020.

The big story: Facebook acquires Kustomer for $1B

Kustomer says it can give customer service teams better data and a more unified view of the people they’re interacting with. So with this acquisition, Facebook can improve its offerings for businesses that have a presence (in some cases, their primary digital presence) on the social network.

The terms of the deal were not disclosed, but TechCrunch has confirmed that the deal price was around $1 billion.

Facebook isn’t the only social media company making acquisitions to improve its customer service features. Earlier this month, Snap bought Voca.ai, a startup creating AI-based voice agents for call centers.

The tech giants

Alphabet’s DeepMind achieves historic new milestone in AI-based protein structure prediction — The advance in DeepMind’s AlphaFold capabilities could lead to a significant leap forward in areas like our understanding of disease, as well as future drug discovery and development.

Twitter’s Audio Spaces test includes transcriptions, speaker controls and reporting features — Earlier this month, Twitter announced it would soon begin testing its own Clubhouse rival, called Audio Spaces.

With an eye for what’s next, longtime operator and VC Josh Elman gets pulled into Apple — Elman said he will be focused on the company’s App Store and helping “customers discover the best apps for them.”

Startups, funding and venture capital

HungryPanda raises $70M for a food delivery app aimed at overseas Chinese consumers — HungryPanda makes a Mandarin-language app specifically targeting Chinese consumers outside of China.

Materialize scores $40M investment for SQL streaming database — CEO Arjun Narayan told us that every company needs to be a real-time company, and it will take a streaming database to make that happen.

Curio Wellness launches $30M fund to help women and minorities own a cannabis dispensary — The new fund, started by the Maryland-based medical cannabis company Curio Wellness, aims to help underserved entrepreneurs entering the cannabis market.

Advice and analysis from Extra Crunch

DoorDash aims to add $11B to its valuation during public offering — The delivery platform gave a range of $75 to $85 per share.

Strike first, strike hard, no mercy: How emerging managers can win — Investors at Fika Ventures argue that “Cobra Kai” offers valuable lessons for VC.

The road to smart city infrastructure starts with research — The right technology can upgrade any city, but we need to understand its impacts.

(Extra Crunch is our membership program, which aims to democratize information about startups. And until November 30 — that’s today! — you can get 25% off an annual membership.)

Everything else

Moderna claims 94% efficacy for COVID-19 vaccine, will ask FDA for emergency use authorization today — If granted the authorization, Moderna will be able to provide it to high-risk individuals such as front-line healthcare workers.

FCC Chairman Ajit Pai will step down to make way for the Biden administration — Pai’s tenure has been a controversial one.

Original Content podcast: Just don’t watch Netflix’s ‘Holidate’ with your parents — But if you avoid parental awkwardness, it’s a perfectly adequate holiday-themed romantic comedy.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

from Social – TechCrunch https://techcrunch.com/2020/11/30/daily-crunch-facebook-acquires-kustomer-for-1b/
via Superb Summers

Facebook confirms it has acquired Kustomer, sources say for $1B

Today Facebook made one of its biggest plays yet to build services for the businesses on its platform: it has announced that it is acquiring Kustomer, a startup founded with the aim of disrupting the customer services industry with a new approach to providing agents with better data and a more unified pictures of users by bringing together the many social media and other channels and longer history between them and the company in question.

Terms are not being disclosed but sources are saying it’s in the region of $1 billion. Reports of the deal were published earlier today by WSJ.

Kustomer — co-founded by CEO Brad Birnbaum and Jeremy Suriel (the two worked together across a range of other places, including Airtime and AOL and had sold a previous startup to Salesforce) — had raised around $174 million in private funding from investors that included Coatue, Tiger Global Management, Battery Ventures, Redpoint Ventures, Cisco Investments, Canaan Partners, Boldstart Ventures and Social Leverage. It was last valued at $710 million, according to estimates from PitchBook.

Facebook’s interest in Kustomer is very straightforward: the company has been slowly building up a big business providing customer services to businesses on its platform.

There are some 175 million people using Facebook this way today, covering both those who use Facebook to engage with businesses that use Facebook as their primary online “identity” — in place of a website or mobile app of their own, companies today often simply have a Page on Facebook — and those businesses that provide conversation channels on Facebook-owned messaging apps like Instagram, Messenger and WhatsApp as a complement to other ways (and sometimes the sole way) to contact them.

Considering that Facebook has upwards of 2 billion users, 175 million doesn’t sound like a lot.

But as the company starts to see more keen competition from the likes of Snapchat, TikTok and likely others over time, having a better product to sell businesses alongside their other services will give Facebook a better way of locking them into the Facebook ecosystem. It will also give the company a stronger shot at a newer revenue stream to complement advertising, which remains its biggest cash cow by a big margin.

Indeed, customer service is an interesting play for Facebook to be making. The company has been investing in and building a number of additional features for businesses on its messaging apps — most recently on WhatsApp, for example, it started to make it easier for businesses let people shop and do more on the app. Within that customer service is a huge industry that stretches well beyond the Facebook walled garden.

Indeed, the specific term Kustomer and other CRM companies use to describe what it does is “omni-channel” customer relations. That is to say, it gives the Kustomer business users a complete picture of the many disparate places where “conversations” might be happening with customers — be it on apps, on social media, in websites, via chatbots, or email, etc. The logic is that this makes the agent more efficient and gives him/her a better picture of both how the business is faring across those channels, and more context about a specific user contacting the company from one of those channels, as well as a more complete picture of the customers themselves.

For Facebook, it’s “customer relations” profile up to now has been about users within its app walls. This gives it a much bigger opportunity to essentially control that bigger picture and bigger relationship, regardless of the platform being used.

Coincidentally, it was only earlier this month that I reported that Snap acquired Voca.ai, which makes customer support voice bots.

While we have no idea how Snap will use that tech — some have speculated it could be to build more voice commands and audio-based tech for its Spectacles — I wrote at the time that it would make a lot of sense to bring this into a bigger product portfolio providing more tools to businesses already using Snapchat to market themselves. This Kustomer acquisition feels very timely in that regard.

 

from Social – TechCrunch https://techcrunch.com/2020/11/30/facebook-confirms-it-has-acquired-kustomer-sources-say-for-1b/
via Superb Summers

Twitter’s Audio Spaces test includes transcriptions, speaker controls, and reporting features

Earlier this month, Twitter announced it would soon begin testing its own Clubhouse rival, called Audio Spaces. The new product will allow Twitter users to gather in dedicated spaces for live conversations with another person or with groups of people. While the company showed off a handful of screenshots of the product at the time of the announcement, there were few specifics about how Audio Spaces would work. Now, we know a bit more about Audio Spaces’ feature set, thanks to some digging by reverse engineer Jane Manchun Wong. 

Wong enabled the private beta in the Twitter app and took screenshots that show how Audio Spaces and its features would look in action. Of course, these features could change before the feature later rolls out to the public, but it gives an idea about how Twitter is currently thinking about the product.

Twitter is internally testing Audio Spaces Beta, here’s another look:

– Uses Periscope as backend

– Reactions:

– “Who can speak” can be adjusted in the middle

– Transcriptions available

– Spaces can be reported

– “Share feedback” sends DM to @TwitterSpaces pic.twitter.com/hbyiJuEWw5

— Jane Manchun Wong (@wongmjane) November 28, 2020

https://platform.twitter.com/widgets.js

The images show that users will be able to apply the same sort of conversation controls that are today available for tweets to Audio Spaces, as well. This will allow users to configure their Audio Space to be open to anyone who wants to join, only to people they follow, or only to people they specifically invite to join.

Users can invite others to their Space in a number of ways, too, including via DM (direct message), by posting a tweet, or copying a link that can be shared elsewhere.

When joining a space, people will enter the space with their microphone disabled to limit noise. As the conversation progresses, they can react to what’s being said with a variety of emoji, like the “100,” raised hand, fist, peace sign, and waving hand.

In addition, the Audio Space’s creator will be able to adjust who can speak at any time after the dedicated room has been created. From an in-app menu, they’ll be able to manage the speakers, adjust other settings, view the rules, as well as share feedback or report the space, among other things.

Image Credits: Jane Manchun Wong (opens in a new window) /

One interesting finding is that Audio Spaces will include transcriptions of the chat, according to this menu. That’s a differentiating feature, compared with some other audio chat room services. While ostensibly a feature designed for accessibility, it could also prove useful in keeping the conversations appropriate and respectful, since users would know their words were being written down.

This could help address one issue with the private chat room model, where live conversations have proven to be hard to moderate. Despite being in an invite-only beta, Clubhouse, for example, already experienced a handful of incidents of moderation failure, including the harassment of a New York Times reporter and another conversation that delved into anti-Semitism.

Twitter, which has struggled for years to combat abuse on its platform, was a questionable place to be testing this unproven new format for online socializing.

Image Credits: Jane Manchun Wong (opens in a new window)

It wasn’t clear how Twitter would be approach moderation for these audio chat rooms, but it appears the transcription feature could a deterrent to toxic speech while the in-app reporting feature allows for a more direct solution to problems that crop up. When users choose the “Report this Space” option, they can then choose to report across a variety of categories, including self-harm, violence, sexual content, child safety, private information or abusive behavior.

Because Audio Spaces is in private beta, testers will also have access to a “Share Feedback” option that allows them to DM the account @TwitterSpaces.

Wong also noted Audio Spaces is using Periscope for its backend, according to her digging in the app’s code.

Twitter earlier said Audio Spaces would be launching to a small group of users. During tests, those users would include a group of people who are “disproportionately impacted by abuse and harm on the platform: women and those from marginalized backgrounds,” Twitter Staff Product Designer Maya Gold Patterson had noted, when introducing the feature in a briefing for reporters this month.

Twitter hasn’t yet commented on Wong’s findings.

from Social – TechCrunch https://techcrunch.com/2020/11/30/twitters-audio-spaces-test-includes-transcriptions-speaker-controls-and-reporting-features/
via Superb Summers