Most founders don’t walk away from their startup after raising $32 million and reaching 1000 clients. But Roger Dickey’s heart is in consumer tech, and his company Gigster had pivoted to doing outsourced app development for enterprises instead of scrappy entrepreneurs.
So today Dickey announced that he’d left his role as Gigster CEO, with former VMware VP Christopher Keane who’d sold it his startup WaveMaker coming in to lead Gigster in October. Now, Dickey is launching Untitled Labs, a “search lab” designed to test multiple consumer tech ideas in “social and professional networking, mobility, personal finance, premium services, health & wellness, travel, photography, and dating” before building out one
Untitled Labs is starting off with $2.8 million in seed funding from early Gigster investors and other angels including Founders Fund, Felicis Ventures, Caffeinated Capital, Joe Montana’s Liquid Ventures, Ashton Kutcher, Nikita Bier of TBH (acquired by Facebook), and Zynga co-founder Justin Waldron.
Investors lined up after seeing the success of Dickey’s last two search labs. In 2007, his Curiosoft lab revamped classic DOS game Drugwars as a Facebook game called Dopewars and sold it to Zynga where it became the wildly popular Mafia Wars. He did it again in 2014, building Gigster out of Liquid Labs and eventually raising $32 million for it in rounds led by Andreessen Horowitz and Redpoint. Dickey had proven he wasn’t just dicking around and his search labs could experiment their way to an A-grade startup.
“I loved learning about B2B but over the years I realized my true passions were in consumer and I kinda got the itch to try something new” Dickey tells me. “These things happen in the life-cycle of a company. The person who starts it isn’t always the same person to take it to an IPO. Gigster’s doing incredibly well. It was just a really vanilla separation in the best interest of all parties.”
Gigster’s remaining co-founder and CTO Debo Olaosebikan will stay with the startup, but tells me he’ll be “moving away from a lot of the day-to-day management.” He’ll be in a more public facing role, evangelizing the vision of digital transformation to big clients hoping Gigster can equip them with the apps their customers demand. “We’ve gotten to a really good place on the backs of the founders and to get it to the next level inside of enterprise, having people who’ve done this, lived this, worked in enterprise for a long time makes sense for the company.”
Olaosebikan and Dickey both confirm there was no misconduct or other funny business that triggered the CEO’s departure, and he’ll stay on the Gigster board. Dickey tells me that Gigster’s business managing teams of freelance product managers, engineers, and designers to handle product development for big clients has grown revenue every quarter. It now has 1200 clients including almost 10% of Fortune 500 companies. Olaosebikan says “We have a great repeatable sales model. We can grow profitably and then we can figure out financing. We’re not in a hurry to raise money.”
Since leaving Gigster, Dickey has been meeting with investors and entrepreneurs to noodle on what’s in their “idea shelf” — the product and company concepts these techies imagine but are too busy to implement themselves. Meanwhile, he’s seeking a few elite engineers and designers to work through Untitled’s prospects.
Dickey said he came up with the “search labs” definition since he and others had found success with the strategy that no one had formalized. The search labs model contrasts with three other ways people typically form startups:
- Traditional Startup: Founders come up with one idea and raise from venture firms to build it into a company that’s quick to start and lets them keep a lot of equity, but these startups often fail because they lack product market fit. Examples: Facebook, SpaceX.
- Startup Accelerators and Incubators: Founders come up with one idea and enter an accelerator or incubator that provides funding and education for lots of startups in exchange for a small slice of equity. Founders sometimes learn their idea won’t work and pivot during the program, which is why accelerators seek to fund great teams, but otherwise operate traditionally. Examples: Y Combinator, 500 Startups.
- Startup Studio: The studios’ founders work with entrepreneurs to come up with a small number of ideas while keeping a significant of the equity. The entrepreneurs operate semi-autonomously but with the advantage of shared resources. Examples: Expa, Betaworks.
- Search Lab: Founders conceptualize and experiment with a small number of startup ideas, then focus the company around the most promising prototype. Examples: Untitled Labs, Midnight Labs (turned into TBH)
Dickey tells me that after 80 angel investments, going to every recent Y Combinator Demo Day, and talking with key players across the industry, the search lab method was the best way to hone in on his best idea rather than just going on a hunch. Given that approach, he went with “Untitled” so he could save the branding work for when the right product emerges. Dickey concludes “We’re trying to keep it really barebones. We don’t have an office, don’t have a logo, and we’re not going to make swag. We’re just going to find the next business as efficiently as possible.”
Meta plans hiring freeze, NASA shoots an asteroid, and Elon’s texts about Twitter are made public • TechCrunch
Hi all! Welcome back to Week in Review, the newsletter where we quickly sum up some of the most read TechCrunch stories from the past seven days. The goal? Even when you’re swamped, a quick skim of WiR on Saturday morning should give you a pretty good understanding of what happened in tech this week.
Want it in your inbox? Get it here.
- Elon’s texts: As part of the ongoing Musk vs. Twitter trial, a big ol’ trove of Twitter-related texts between Elon and various key figures/executives/celebrities has been made public. Amanda and Taylor look at some of the most interesting bits, with appearances from people like Gayle King, Joe Rogan, and Twitter founder Jack Dorsey (or, as he seems to be named in Elon’s contacts, “jack jack”.)
- Instagram bans PornHub’s account: “After a weeks-long suspension,” writes Amanda, “Pornhub’s account has been permanently removed from Instagram.” Why? PH says they don’t know, as they insist everything they put on Instagram was totally “PG” while calling for “full transparency and clear explanations.”
- Interpol issues a red notice for Terra’s founder: “Interpol has issued a red notice for Do Kwon,” write Manish and Kate, “requesting law enforcement agencies worldwide to search for and arrest the Terraform Labs founder whose blockchain startup collapsed earlier this year.”
- Google Maps’ new features: A bunch of new stuff is coming to Google Maps, and Aisha has the roundup. There’s a new view style meant to help you “immerse” yourself in a city before you visit, a “Neighborhood vibe” feature that aims to capture an area’s highlights, and augmented reality features that use the view from your camera to show exactly where ATMs and coffee shops are.
- Meta’s hiring freeze: The era of explosive hiring at Meta/Facebook is over, it seems. The company will freeze hiring and “restructure some groups” internally, Zuckerberg reportedly announced during an internal all-hands this week.
- Hacker hits Fast Company, sends awful push notifications: If you got a particularly vulgar push notification from Fast Company by way of Apple News this week, it’s because a hacker managed to breach the outlet’s content management system. The hacker also apparently published a (now pulled) post on Fast Company outlining how they got in.
- NASA hits an asteroid: If we needed to hit an asteroid from millions of miles away — to, say, change its course and steer it away from Earth — could we do it? NASA proved they could do just that this week, smashing a purpose-built spacecraft into an asteroid at 14,700 mph. The asteroid in question was never believed to be a threat to Earth, but these are the kinds of things you want tested before they’re necessary.
- Microsoft confirms Exchange vulnerabilities: “Microsoft has confirmed two unpatched Exchange Server zero-day vulnerabilities are being exploited by cybercriminals in real-world attacks,” writes Carly. Even worse? There’s no patch yet, though MSFT says one has been put on an “accelerated timeline” and offers temporary mitigation measures in the meantime.
Didn’t have time to tune in to all of TechCrunch’s podcasts this week? Here’s what you might’ve missed:
- Evernote and mmhmm co-founder Phil Libin joined us on Found to share what he’s learned about remote work and why he’ll “never go to work in the metaverse.”
- The Chain Reaction crew went deep on why crypto exchange FTX bid billions on a bankrupt company’s assets.
- Amanda joined Darrell on the TechCrunch Podcast to explore whether Tumblr was reversing its controversial porn ban (spoiler: no), and Devin hopped on to talk all about NASA’s wild anti-asteroid test mission.
What hides behind the TechCrunch+ paywall? Lots of really great stuff! It’s where we get to step away from the unrelenting news cycle and go a bit deeper on the stuff you tell us you like most. The most-read TC+ stuff this week?
- Is Silicon Valley really losing its crown?: A provocative question, one asked all the more after COVID flipped the switch on widespread remote work pretty much overnight. Alex dives into the investor data to see where the money is going, and whether or not that’s changed.
- Investors hit the brakes on productivity software: It’s an Alex Wilhelm double feature this week! After a few quarters of consistent investment growth, it seems investor interest in productivity tools might be waning. Why? Alex looks at why/how investment in the vertical has shifted.
ByteDance’s Pico debuts its Quest rival, but challenges remain • TechCrunch
When ByteDance bought the Chinese VR headset maker Pico a year ago, the message it sent was clear: it was betting that the immersive device would be where future generations spend most of their time consuming digital content. It’s a marriage reminiscent of Meta’s acquisition of Oculus back in 2014, except the world is now in a different place with technological advances that make VR headsets cheaper, less laggy, and more comfortable to wear.
The TikTok parent has long aimed to compete in a market dominated by Oculus’s VR devices for consumers. When Meta launched Quest 2 in 2020, ByteDance worked on a confidential internal project to develop AR glasses, The Information reported. Pico’s product launch this week is a further indication of its ambition to challenge Quest, which has enjoyed roughly two-thirds of the global AR and VR market for the past two years.
The Pico 4, which starts at €429 (around $420 thanks to a strong dollar) for 128GB and ships to Europe, Japan, and South Korea aside from China, has received applause in the VR community. It weighs only 295 grams without the straps and can function as a standalone device but also be tethered to PCs for more advanced VR experiences. It uses the Qualcomm Snapdragon XR2 processor as Quest 2 does.
“It’s inexpensive and good quality, with specs that can match Quest 2,” says Gavin Newton-Tanzer, host of mixed reality conference AWE Asia.
“Was impressed with the weight, comfort, LCD display, pancake lenses, color AR passthrough, and controllers. All it needs now are serious triple-A VR exclusives to distinguish itself from Meta to get gamers interested,” writes a VR content creator.
Merely “matching” Quest 2 specs doesn’t sound good enough given the latter came out two years ago and became an instant hit. Pico not only has a lot of catch-up to do on the technological front but also in terms of content and branding.
“Oculus’s content ecosystem is more established, providing a better understanding of what consumers want,” says Newton-Tanzer. Popular rhythm game Beat Saber, for instance, had generated $100 million in revenue on Oculus Quest by October 2021.
Pico is facing a chicken-or-egg problem, the XR expert suggests. Its user base across product lines isn’t currently large enough that top-tier creators would be devoted to making games, videos, and other VR content exclusively for its platform. It reportedly sold 500,000 units last year, half of its target. In contrast, Quest 2 shipped 10 million units in the space of October 2020 and November 2021. But without premium content, Pico will have a hard time attracting users in a meaningful way.
The good news is Pico has established a strong foothold in China and doesn’t face much competition in the home market. Oculus doesn’t have an official presence in China, meaning users have to go through the hassle of ordering an overseas version, getting the Oculus app from a foreign app store, and accessing its global app ecosystem through a virtual private network as Meta’s servers are blocked in China.
The technological bifurcation could allow Pico time to test and learn in the home market before launching into the West at full steam. Expansion in the U.S. is already set in motion as ByteDance began building a team for Pico on the West Coast, according to Protocol, with a focus to attract talent in content, marketing, and R&D.
YouTube TV users can now subscribe to standalone networks without a base plan • TechCrunch
YouTube TV launched a new option that allows subscribers to purchase add-ons without subscribing to the full channel offering in the service’s Base plan. With this new à la carte plan, subscribers can access more than 20 add-on channels, from Showtime and HBO Max to NBA League Pass, MLB.TV, and Starz among others.
This confirms reports that the company was looking to launch a YouTube channel store and join many other services that aggregate streaming subscriptions. Sling TV, Roku, Amazon Prime Video and Apple TV offer standalone options.
So, rather than spending $64.99 a month for the YouTube TV Base Plan that provides over 85 channels, consumers can now choose a more flexible option that allows them to mix and match from select entertainment networks, live sports and more, all within one app.
Customers can add or remove a network at any time they want as well as manage billing from the YouTube TV interface. To switch to the add-on only plan, users can go to “Settings” and select “Membership” then “Manage” to cancel the base plan. Choose “Update memberships” to add individual networks to the membership.
Like the base plan, subscribers with the à la carte plan still get access to an Unlimited DVR, three simultaneous streams and six household accounts.
Here is the full list of channels that subscribers can select from.
- HBO Max
- NBA League Pass
- Hallmark Movies Now
- Outside TV Features
- Sundance Now
- IFC Films Unlimited
- Dove Channel
- Law & Crime
Meta plans hiring freeze, NASA shoots an asteroid, and Elon’s texts about Twitter are made public • TechCrunch
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