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“It was SoundCloud’s opportunity to lose and now it’s ours,” says Audius CEO Roneil Rumburg. Plenty of musicians and fans are sick of SoundCloud’s expensive hosting costs, haphazard content takedowns and lagging user experience as the site’s status withers. Audius wants to be the opposite, and offer a new home for artists where they’ll eventually earn 90% of revenue earned and the startup itself can’t remove songs.

Today Audius launches its music streaming and free hosting service backed by DJs like deadmau5 and Zed’s Dead, plus $5.5 million in A-list venture capital. Music makers can upload their songs at no cost, and users can browse, follow and get listening recommendations. The catalog is small to start, with just a few hundred artists, but Audius has big plans for how to lure artists choosing between other SoundCloud alternatives, from Mixcloud to YouTube.

Audius

The secret sauce is that Audius isn’t just a web and mobile site, it’s an open-source protocol built on the blockchain, not that users need to be versed in cryptocurrency or do anything special to sign up. Audius doesn’t actually host the music, but decentralizes it across independently operated nodes, which it believes will protect it from lawsuits and record label pressure. It’s distributing its own crypto tokens to incentivize artists that join early, as well as the node operators, with the insinuation that these might rise in value if the service grows popular.

Audius is completely free for listening at high-quality 320kbps. For now, artists can’t make money, though many still can’t on SoundCloud. But in early 2020, the startup plans to let artists opt into requiring users to occasionally listen to ads or pay a few dollars per month for an Audius subscription. Ninety percent of revenue will go to the artists and 10% to the node operators, and there are also plans to cut in playlist curators. Audius itself hopes the value of its tokens will rise so it can sell from its stockpile to generate revenue.

Audius

“Audius’ dedication to empowering artists through supporting direct relationships with fans, censorship resistance, and fair pay is so important in a time when artists are being mistreated regularly,” writes dance music superstar deadmau5, aka Joel Zimmerman, who’s on the startup’s advisory board. Other artists like Zeds Dead, Mr. Carmack and Rezz have pledged to put some exclusive music on Audius, ranging from finished tracks to rough drafts. They were attracted by the promise of bigger and faster payouts, plus a transparent copyright takedowns process.

The biggest challenge for Audius will be playing catch-up recruiting artists and listeners over a decade after SoundCloud launched and when Spotify already has 108 million paying subscribers from its 232 million users. For now there’s not much special about the user experience, where you can listen to a feed of what you follow or library of saved songs, or check out trending artists and playlists. At least sign up is easier than most blockchain apps, requiring merely an email address or Twitter sign-in, though crypto kids can use MetaMask. The lack of native mobile apps won’t help, though.

Audius

All the artists-first philosophy won’t matter if it never gains traction. But if Audius does grow, it has a savvy approach to preventing unnecessary content takedowns. Rumburg claims an estimated 80% of takedowns on apps like SoundCloud and YouTube are not actually infringing copyright, leading to great content disappearing. “Audius doesn’t have the ability to deplatform you or censor you,” says Audius co-founder Forrest Browning.

Audius

Audius co-founders (from left): Forrest Browning, Roneil Rumburg

First, because it doesn’t host the songs itself, it will just pass copyright-holder complaints on to the uploaders themselves. Owners can be reassigned the revenue being earned by a song rather than have it taken down. And instead of pulling down a whole DJ set, the rights-holder of a five-minute song in an hour-long mix would get 1/12 of the proceeds. Browning tells me, “A lot of artists are completely fine with their content being remixed or mashed up.”

If disputes aren’t resolved, rights-holders can approach the operators of nodes hosting the music and file a local equivalent of a DMCA takedown request, though the music might still live on other nodes beyond the law. In that case, rights-holders file a complaint to the Audius arbitration committee made up of users. That group can vote on whether a track legally should be removed or its revenue reattributed, and both plaintiffs and committee members must put up a small financial stake they’ll lose if their claim is frivolous or they make erroneous decisions.

We’ll see if this hands-off approach to censorship actually flies with the law. If so, it could give artists confidence in joining Audius that they lack elsewhere. Many are frustrated after constantly having to rebuild their audience on different platforms, from Myspace to iTunes to Spotify to SoundCloud, especially if their tracks are disappearing. One benefit of being open-sourced and decentralized… “Let’s say our company closes up shop in 5 years? Audius and the content will live on forever, as long as folks continue to operate the nodes,” Rumburg explains.

To make sure it stays in business as it stretches its venture funding from General Catalyst and Lightspeed, Audius has plans for additional tools that could make it and artists money. From being able to crowdfund future albums to selling merchandise or VIP experiences, Audius could become a gateway to spending on independent music. It could have to compete with itself, though, since Audius’ on-demand streaming site is just one client built on its open-source protocol. The founders say they hope other people will build Pandora-style radio clients, music discovery apps and more listening options through its APIs.

Audius

Rumburg and Browning met the summer after high school at a camp of Stanford admits. Throughout college, the recent graduates got deeper into dance music subgenres by devouring everything on SoundCloud. But watching their favorite artists get music kicked off that app while their DJ friends struggled to break through the algorithms, Rumburg says they wondered “how can we remove the platform from this equation?”

Music businesses aiming to free art from “the man” so often end up becoming him. But by decentralizing control and funneling money directly to creators, Audius may code its way into music culture.

Audius

Read more: https://techcrunch.com/2019/09/24/audius-music/

At first glance launching a new social app may seem as sensible a startup idea as plunging headfirst into shark-infested waters. But with even infamous curtain-ripper Facebook now making grand claims about a ‘pivot to privacy’ it’s clear something is shifting in the commercial shipping channels that contain our digital chatter.

Whisper it: Feeds are tiring. Follows are tedious. Attention is expiring. There’s also, of course, the damage that personal digital baggage left out in the open can wreak long after the fact of a blown fuse or fleeting snap.

Public feeds have become vehicles of self-promotion; carefully and heavily curated — which of course brings its own peer pressures to keep up with friends’ lux exploits and the influencer ‘gram aesthetic that pretends life looks like a magazine spread.

Yet for a brief time, in the gritty early years of social media, there was something akin to spontaneous, confessional reality on show online. People do like to share. That’s mostly been swapped for the polish of aspirational faking it on apps like Facebook-owned Instagram. While genuine friend chatter has moved behind the quasi-closed doors of group messaging apps, like Facebook-owned WhatsApp (or rival Telegram).

If you want to chat more freely online without being defined by your existing social graph the options are less mainstream friendly to say the least.

Twitter is genuinely great if you’re willing to put in the time and effort to find interesting strangers. But its user growth problem shows most consumers just aren’t willing (or able) to do that. Telegram groups also require time and effort to track down.

Also relevant in interest-based chat: Veteran forum Reddit, and game chat platform Discord — both pretty popular, though not in a way that really cuts across the mainstream, tending to cater to more niche and/or focused interests. Neither is designed for mobile first either.

This is why Capture’s founders are convinced there’s a timely opportunity for a new social app to slot in — one which leverages smartphone sensors and AI smarts to make chatting about anything as easy as pointing a camera to take a shot.

They’re not new to the social app game, either. As we reported last year, two of Capture’s founders were part of the team behind the style transfer app Prisma, which racked up tens of millions of downloads over a few viral months of 2016.

And with such a bright feather in their cap, a number of investors — led by General Catalyst — were unsurprisingly eager to chip into Capture’s $1M seed, setting them on the road to today’s launch.

Point and chat

“The main idea behind the app is during the day you’ve got different experiences — working, watching some TV series etc, you’re sitting in an arena watching some sports, or something like that. So we imagine that you should open the app during any type of experience you have during the day,” says Capture co-founder and CEO Alexey Moiseenkov fleshing out the overarching vision for the app.

“It’s not for your friends; it’s the moment when you should share something or just ask something or discuss something with other people. Like news, for example… I want to discuss news with the people who are relevant, who want to discuss it. And so on and on. So I imagine it is about small groups with the same goal, discussing the same experience, or something like that. It’s all about your everyday life.”

“Basically you can imagine our app as like real-time forum,” he adds. “Real-time social things like Reddit. So it’s more about live discussion, not postponing something.”

Chat(room) recommendations are based on contextual inferences that Capture can glean from the mobile hardware. Namely where you are (so the app needs access to your location) and even whether you’re on the move or lounging around (it also accesses the accelerometer so can tell the angle of the phone).

The primary sensory input comes from the camera of course. So like Snap it’s a camera-first app, opening straight into the rear lens’ live view.

By default chats in Capture are public so it also knows what topics users are discussing — which in turn further feeds and hones its recommendations for chats (and indeed matching users).

Co-founder and CMO Aram Hardy (also formerly at Prisma) gives the example of the free-flowing discussion you can see unrolling in YouTube comments when a movie trailer gets its first release — as the sort of energetic, expressive discussion Capture wants to channel inside its app.

“It’s exploding,” he says. “People are throwing those comments, discussing it on YouTube, on web, and that’s a real pain because there is no tool where you can simply discuss it with people, maybe with people around you, who are just interested in this particular trailer live on a mobile device — that’s a real pain.”

“Everything which is happening around the person should be taken into consideration to be suggested in Capture — that’s our simple vision,” he adds.

Everything will mean pop culture, news, local events and interest-based communities.

Though some of the relevant sources of pop/events content aren’t yet live in the app. But the plan is to keep bulking out the suggestive mix to expand what can be discovered via chat suggestions. (There’s also a discovery tab to surface public chats.)

Discovery

Hardy even envisages Capture being able to point users to an unfolding accident in their area — which could generate a spontaneous need for locals or passers by to share information.

The aim for the app — which is launching on iOS today (Android will come later; maybe by fall) — is to provide an ever ready, almost no-barrier-to-entry chat channel that offers mobile users no-strings-attached socializing free from the pressures (and limits) of existing social graphs/friend networks; as well as being a context-savvy aid for content and event discovery, which means helping people dive into relevant discussion communities based on shared interests and/or proximity.

Of course location-based chatting is hardly a new idea. (And messaging giant Telegram just added a location-based chats feature to its platform.)

But the team’s premise is that mobile users are now looking for smart ways to supplement their social graph — and it’s betting on a savvy interface unlocking and (re)channelling underserved demand.

“People are really tired of something really follower based,” argues Moiseenkov. “All this stuff with a following, liking and so on. I feel there is a huge opportunity for all the companies around the world to make something based on real-time communication. It’s more like you will be heard in this chat so you can’t miss a thing. And I think that’s a powerful shot.

“We want to create a smaller room for every community in the Internet… So you can always join any group and just start talking in a free way. So you never shared your real identity — or it’s under your control. You can share or not, it’s up to you. And I think we need that.

“It’s what we miss during this Facebook age where everybody is ‘real’. Imagine that it’s like a game. In a game you’re really free — you can express yourself what way you want. I think that’s a great idea.”

“The entry threshold [for Twitter] is enormous,” adds Hardy. “You can’t have an account on Twitter and get famous within a week if you’re not an influencer. If you’re a simple person who wants to discuss something it’s impossible. But you can just create a chat or enter any chat within Capture and instantly be heard.

“You can create a chat manually. We have an add button — you can add any chat. It will be automatically recognized and suggested to other users who are interested in these sort of things. So we want every user to be heard within Capture.”

How it works

Capture’s AI-powered chatroom recommendations are designed to work as an onboarding engine for meeting relevant strangers online — using neural networks and machine learning to do the legwork of surfacing relevant people and chats.

Here’s how the mobile app works: Open the app, point the camera at something you view as a conversational jumping off point — and watch as it processes the data using computer vision technology to figure out what you’re looking at and recommend related chats for you to join.

For example, you might point the camera around your front room and be suggested a chatroom for ‘interior design trends and ideas’ , or at a pot plant and get ‘gardeners’ chat, or at your cat and get ‘pet chat’ or ‘funny pets’.

Capture

Point the camera at yourself and you might see suggestions like ‘Meet new friends’, ‘Hot or not?’, ‘Dating’, ‘Beautiful people’ — or be nudged to start a ‘Selfie chat’, which is where the app will randomly connect you with another Capture user for a one-to-one private chat.

Chat suggestions are based on an individual user’s inferred interests and local context (pulled via the phone) and also on matching users across the app based on respective usage of the app.

At the same time the user data being gathered is not used to pervasively profile uses, as is the case with ad-supported social networks. Rather Capture’s founders say personal data pulled from the phone — such as location — is only retained for a short time and used to power the next set of recommendations.

Capture users are also not required to provide any personal data (beyond creating a nickname) to start chatting. If they want to use Capture’s web platform they can provide an email to link their app and web accounts — but again that email address does not have to include anything linked to their real identity.

“The key tech we want to develop is a machine learning system that can suggest you the most relevant stuff and topics for you right now — based on data we have from your phone,” continues Moiseenkov. “This is like a magical moment. We do not know who you are — but we can suggest something relevant.

“This is like a smart system because we’ve got some half graph of connection between people. It’s not like the entire graph like your friends and family but it’s a graph on what chat you are in, so where are you discussing something. So we know this connection between people [based on the chats you’re participating in]… so we can use this information.

“Imagine this is somehow sort of a graph. That’s a really key part of our system. We know these intersections, we know the queries, and the intersection of queries from different people. And that’s the key here — the key machine learning system then want to match this between people and interests, between people and topics, and so on.

“On top of that we’ve got recognition stuff for images — like six or seven neural networks that are working to recognize the stuff, what are you seeing, how, what position and so on. We’ve got some quite slick computer vision filters that can do some magic and do not miss.

“Basically we want to perform like Google in terms of query we’ve got — it’s really big system, lots of tabs — to suggest relevant chats.”

Image recognition processing is all done locally on the user’s device so Capture is not accessing any actual image data from the camera view — just mathematical models of what the AI believes it’s seen (and again they claim they don’t hold that data for long).

“Mostly the real-time stuff comes from machine learning, analyzing the data we have from your phone — everybody has location. We do not store this location… we never store your data for a long time. We’re trying to move into more private world where we do not know who you are,” says Moiseenkov.

“When you log into our app you just enter the nickname. It’s not about your phone number, it’s not about your social networks. We sometimes — when you just want to log in from other device — we ask you an email. But that’s all. Email and nickname it’s nothing. We do not know nothing about you. About your person, like where you work, who’s your friends, so on and so on. We do not know anything.

“I think that’s the true way for now. That’s why gaming is so fast in terms of growing. People just really want to share, really want to log in and sign up [in a way] that’s easy. And there is no real barriers for that — I think that’s what we want to explore more.”

Chatroulette

Having tested Capture’s app prior to launch I can report that the first wave chat suggestions are pretty rudimentary and/or random.

Plus its image recognition often misfires (for instance my cat was identified as, among other things, a dog, hamster, mouse and even a polar bear (!) — as well as a cat — so clearly the AI’s eye isn’t flawless, and variable environmental conditions around the user can produce some odd and funny results).

Capture

The promise from the founders is that recommendations will get better as the app ingests more data and the AI (and indeed Capture staff performing manual curation of chat suggestions) get a better handle on what people are clicking on and therefore wanting to talk with other users about.

They also say they’re intending to make better linkage leaps in chat suggestions — so rather than being offered a chatroom called ‘Pen’ (as I was),  if you point the Capture camera at a pen, the app might instead nudge you towards more interesting-sounding chats — like ‘office talk’ or ‘writing room’ and so on.

Equally, if a bunch of users point their Capture cameras at the same pen the app might in future be smart enough to infer that they all want to join the same chatroom — and suggest creating a private group chat just for them.

On that front you could imagine members of the same club, say, being able to hop into the same discussion channel — summoning it by scanning a mutual object or design they all own or have access to. And you could also imagine people being delighted by a scanner-based interface linked to custom stuff in their vicinity — as a lower friction entry point vs typing in their directions. (Though — to be clear — the app isn’t hitting those levels of savvy right now.)

“Internally we imagine that we’re like Google but without direct query typing,” Moiseenkov tells TechCrunch. “So basically you do the query — like scanning the world around you. Like you are in some location, like some venue, imagine all this data is like a query — so then step by step we know what people are clicking, then improving the results and this step by step, month by month, so after three month or four month we will be better. So we know what people are clicking, we know what people are discussing and that’s it.”

“It’s tricky stuff,” he adds. “It’s really really hard. So we need lots of machine learning, we need lots of like our hands working on this moderating stuff, replacing some stuff, renaming, suggest different things. But I think that’s the way — that’s the way for onboarding people.

“So when people will know that they will open the app in the arena and they will receive the right results the most relevant stuff for this arena — for the concert, for the match, or something like that, it will be the game. That’s what we want to achieve. So every time during the day you open the app you receive relevant community to join. That’s the key.”

Right now the founders say they’re experimenting with various chat forms and features so they can figure out how people want to use the app and ensure they adapt to meet demand.

Hence, for example, the chatroulette-style random ‘selfie chat’ feature. Which does what it says on the tin — connecting you to another random user for a one-to-one chat. (If selfie chats do end up getting struck out of the app I hope they’ll find somewhere else to house the cute slide-puzzle animation that’s displayed as the algorithms crunch data to connect you to a serendipitous interlocutor.)

They’re also not yet decided on whether public chat content in Capture will persist indefinitely — thereby potentially creating ongoing, topics-based resources — or be ephemeral by default, with a rolling delete which kicks in after a set time to wipe the chat slate clean.

“We actually do not know what will be in the next one to three months. We need to figure out — will it be consistent or ephemeral,” admits Moiseenkov. “We need to figure out certain areas, like usage patterns. We should watch how people behave in our app and then decide what will be the feed.”

Capture does support private group chats as well as public channels — so there’s certainly overlap with the messaging platform Telegram, which also supports both. Though one nuance between them is Capture Channels let everyone comment but only admins post vs Telegram channels being a pure one-way broadcast.

But it’s on interface and user experience where Capture’s approach really diverges from the more standard mobile messaging playbook.

If you imagine it as a mash-up of existing social apps Capture could be thought of as something like a Snap-style front end atop a Telegram-esque body yet altogether sleeker, with none of the usual social baggage and clutter. (Some of that may creep in of course, if users demand it, and they do have a reactions style feature linked up to add in so… )

“With our tool you can find people not from your graph,” says Moiseenkov. “That’s the key here. So with WhatsApp it’s really hard to invite people not from your graph — or like friends of friends. And that’s a really tough question — where I can find the relevant people whom I chat about football? So now we add the tool for you in our app to just find these people and invite them to your [chat].”

“It’s really really hard not to like your friend’s post on Instagram because it’s social capital,” he adds. “You are always liking these posts. And we are not in this space. We do not want to move in this direction of followers, likers, and all this stuff — scrolling and endless communication.

“Time is changing, my life is changing, my friends and family somehow is changing because life is changing… We’re mobile like your everyday life… the app is suggesting you something relevant for this life [now]. And you can just find people also doing the same things, studying, discussing the same things.”

Community building

Why include private chats at all in Capture? Given the main premise (and promise) of the app is its ability to combine strangers with similar interests in the same virtual spaces — thereby expanding interest communities and helping mobile users escape the bubbles of closed chat groups.

On that Moiseenkov says they envisage communities will still want to be able to create their own closed groups — to maintain “a persistent, consistent community”.

So Capture has been designed to contain backchannels as well as open multiple windows into worlds anyone can join. “It’s one of opportunities to make this and I think that we should add it because we do not know exact scenarios right from the launch,” he says of including private conduits alongside public chats.

Given the multiple chat channels in the first release Capture does risk being a bit confusing. And during our interview the founders joke about having created a “maximal viable product” rather than the usual MVP.

But they say they’re also armed to be able to respond quickly to usage patterns — with bits and pieces lined up in the background so they can move quickly to add/remove features based on the usage feedback they get. So, basically, watch this space.

All the feature creep and experimentation has delayed their launch a little though. The app had been slated to arrive in Q4 last year. Albeit, a later-than-expected launch is hardly an unusual story for a startup.

Capture also of course suffers from a lack of users for people to chat to at the point of release — aka, the classic network effect problem (which also makes testing it prior to launch pretty tricky; safe to say, it was a very minimalist messaging experience).

Not having many users also means Capture’s chat suggestions aren’t as intelligent and savvy as the founders imply they’ll be.

So again the MVP will need some time to mature before it’s safe to pass judgement on the underlying idea. It does feel a bit laggy right now — and chat suggestions definitely hit and miss but it will be interesting to see how that evolves as/if users pile in. capture

Part of their plan is to encourage and nurture movie/TV/entertainment discussion communities specifically — with Hardy arguing there’s “no such tool” that easily supports that. So in future they want Capture users to be notified about new series coming up on Netflix, or Disney’s latest release. Then, as users watch that third party content, their idea is they’ll be encouraged to discuss it live on their mobiles via Capture.

But movie content is only partially launched at this stage. So again that’s all just a nice idea at this stage.

Testing pre-launch on various celebrity visages also drew a suggestive blank — and Hardy confirmed they’ve got more pop culture adds planned for the future.

Such gaps will likely translate into a low stickiness rate at first. But when the team’s ambition is to support a Google-esque level of content queries the scale of the routing and pattern matching task ahead of them is really both massive and unending.

To get usage off the ground they’re aiming to break the content recommendation problem down into more bite-size chunks — starting by seeding links to local events and news (sourced from parsing the public Internet); and also by focusing on serving specific communities (say around sports), and also linked to particular locations, such as cities — the latter two areas likely informed by in what and where the app gets traction.

They’ve also hired a content manager to help with content recommendations. This person is also in charge of “banning some bad things and all that stuff”, as they put it. (From the get go they’re running a filter to ban nudity; and don’t yet support video uploads/streams to reduce their moderation risk. Clearly they will need to be very ‘on it’ to avoid problem usage mushrooming into view and discouraging positive interactions and community growth within the app. But again they say they’re drawing on their Prisma experience.)

They also say they want this social app to be more a slow burn on the growth front — having seen the flip side of burn out viral success at Prisma — which, soon after flooding the social web with painterly selfies, had to watch as tech giants ruthlessly cloned the style transfer effect, reducing their novelty factor and pushing users to move on to their next selfie lens fix.

“As data-driven guys we’re mostly looking for some numbers,” says Moiseenkov when asked where they hope to be with Capture in 12 months’ time. “So I think achieving something like 1M or 2M MAU with a good retention and engagement loop by then is our goal.

“We want to keep this growth under control. So we could release the features step by step, more about engagement not more about viral growth. So our focus is doing something that can keep engagement loop, that can increase our spend time in the app, increase the usage and so on, not driving this into the peak and like acquiring all the trends.”

“Conclusions are drawn from Prisma!” adds Hardy with investor-winning levels of chutzpah.

While it’s of course super early to talk business model, the question is a valid one given Capture’s claims of zero user profiling. Free apps backed by VC will need to monetize the hoped for scale and usage at some point. So how does Capture plan to do that?

The founders say they envisage the app acting as a distribution tool. And for that use case their knowing (only) the timing, location and subject of chats is plenty enough data to carry out contextual targeting of whatever stuff they can get paid to distribute to their users.  

They are also toying with models in a Patreon style — such as users being able to donate to content authors who are in turn distributing stuff to them via Capture. But again plans aren’t fully formed at this nascent stage.

“Our focus right now is more like going into partnerships with different companies that have lots of content and lots of events going on,” says Hardy. “We also are going to ask for permission to get access to music apps like Spotify or Apple Music to be aware of those artists and songs a person is interested in and is listening to. So this will give us an opportunity to suggest relevant new albums, maybe music events, concerts and so on and so forth.

“For example if a band is coming to your city and we know we have access to Apple Music we know you’re listening to it we’ll suggest a concert — we’ll say ‘hey maybe you can win a free ticket’ if we can partner… with someone, so yeah we’re moving into this in the near future I think.”

Read more: https://techcrunch.com/2019/07/16/social-chat-app-capture-launches-to-take-a-shot-at-less-viral-success/

As I’m sure everyone reading this knows, female-founded businesses receive just over 2 percent of venture capital on an annual basis. Most of those checks are written to early-stage startups. It’s extremely difficult for female founders to garner late-stage support, let alone cash $100 million checks.

Maybe that’s finally changing. This week, not one but two female-founded and led companies, Glossier and Rent The Runway, raised nine-figure rounds and cemented their status as unicorn companies. According to PitchBook data from 2018, there are only about 15 unicorn startups with female founders. Though I’m sure that number has increased in the last year, you get the point: There are hundreds of privately held billion-dollar companies and shockingly few of those have women founders (even fewer have female CEOs)…

Moving on…

YC Demo Days

I spent a good part of the week at San Francisco’s Pier 48 in a room full of vest-wearing investors. We listened to some 200 YC companies make their 120-second pitch and though it was a bit of a whirlwind, there were definitely some standouts. ICYMI: We wrote about each and every company that pitched on day 1 and day 2. If you’re looking for the inside scoop on the companies that forwent demo day and raised rounds, or were acquired, before hitting the stage, we’ve got that too.

IPO corner

Lyft: This week, Lyft set the terms for its highly-anticipated initial public offering, expected to be completed next week. The company will charge between $62 and $68 per share, raising more than $2 billion at a valuation of ~$23 billion. We previously reported its initial market cap would be around $18.5 billion, but that was before we knew that Lyft’s IPO was already oversubscribed. Here’s a little more background on the Lyft IPO for those interested.

Uber: The global ride-hailing business flew a little more under the radar this week than last week, but still managed to grab a few headlines. The company has decided to sell its stock on the New York Stock Exchange, which is the least surprising IPO development of 2019, considering its key U.S. competitor, Lyft, has been working with the Nasdaq on its IPO. Uber is expected to unveil its S-1 in April.

Ben Silbermann, co-founder and CEO of Pinterest, at TechCrunch Disrupt SF 2017.

Pinterest: Pinterest, the nearly decade-old visual search engine, unveiled its S-1 on Friday, one of the final steps ahead of its NYSE IPO, expected in April. The $12.3 billion company, which will trade under the ticker symbol “PINS,” posted revenue of $755.9 million in the year ending December 31, 2018, up from $472.8 million in 2017. It has roughly doubled its monthly active user count since early 2016, hitting 265 million last year. The company’s net loss, meanwhile, shrank to $62.9 million in 2018 from $130 million in 2017.

Zoom: Not necessarily the buzziest of companies, but its S-1 filing, published Friday, stands out for one important reason: Zoom is profitable! I know, what insanity! Anyway, the startup is going public on the Nasdaq as soon as next month after raising about $150 million in venture capital funding. The full deets are here.

Seed money

General Catalyst, a well-known venture capital firm, is diving more seriously into the business of funding seed-stage business. The firm, which has investments in Warby Parker, Oscar and Stripe, announced earlier this week its plan to invest at least $25 million each year in nascent teams.

Deal of the week

Earlier this week, Opendoor, the SoftBank -backed real estate startup, filed paperwork to raise even more money. According to TechCrunch’s Ingrid Lunden, the business is planning to raise up to $200 million at a valuation of roughly $3.7 billion. It’s possible this is a Series E extension; after all, the company raised its $400 million Series E only six months ago. Backers of OpenDoor include the usual suspects: Andreessen Horowitz, Coatue, General Atlantic, GV, Initialized Capital, Khosla Ventures, NEA and Norwest Venture Partners.

Startup capital

Backstage Capital founder and managing partner Arlan Hamilton, center.

Debate

Axios’ Dan Primack and Kia Kokalitcheva published a report this week revealing Backstage Capital hadn’t raised its debut fund in total. Backstage founder Arlan Hamilton was quick to point out that she had been honest about the challenges of fundraising during various speaking engagements, and even on the Gimlet “Startup” podcast, which featured her in its latest season. A Twitter debate ensued and later, Hamilton announced she was stepping down as CEO of Backstage Studio, the operations arm of the venture fund, to focus on raising capital and amplifying founders. TechCrunch’s Megan Rose Dickey has the full story.

Pro rata rights

This week, TechCrunch’s Connie Loizos revisited a long-held debate: Pro rata rights, or the right of an earlier investor in a company to maintain the percentage that he or she (or their venture firm) owns as that company matures and takes on more funding. Here’s why pro rata rights matter (at least, to VCs).

#Equitypod

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and I chat about Glossier, Rent The Runway and YC Demo Days. Then, in a special Equity Shot, we unpack the numbers behind the Pinterest and Zoom IPO filings.

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Read more: https://techcrunch.com/2019/03/23/startups-weekly-a-much-needed-unicorn-ipo-update/