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UK military veteran launches crowd-funding for Pixie app to revive local stores – TechCrunch

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What if, instead of sitting on your phone on the sofa ordering stuff from Amazon, you could buy the same things locally from local stores that ultimately enliven and enrich your local neighborhood? What if by doing that, you wouldn’t be walking through deserted main streets, past boarded-up shops, dark alleys and graffiti? What if someone created a marketplace for independent businesses, local events and experiences that kept the money in the local economy rather than being siphoned off into global giants who don’t care about human-scale communities?

That’s the idea behind Pixie, a new take on the “shop-local app” startup model which, although it’s been tried before, has never quite managed to take off. Perhaps Pixie will have more luck?

Here’s how it works: The Pixie app connects people to independent businesses through a curated marketplace, incentivizing them to pay through the app and get rewarded for being loyal customers. Integrated into the app is Pixie Pay, a bespoke payment solution which keeps money in local hands.

The startup has a fascinating background. Whilst serving in the British Special Forces, Pixie’s founder Greg Barden understood that his mission was also to ‘win hearts and minds’ with the local population. Whether by buying bread from the local baker in a village in Afghanistan, or coffee from the market in Baghdad, he and his soldiers could tear down even the most hostile barriers.

He also realized that when more money stayed inside these the local economies rather than being sucked away by organized crime or large scale, globalized businesses, the local economy might flourish and the risk of the societies there becoming yet again destabilized could potentially diminish.

“Whether it was stalls in the bazaars of Baghdad or small boutiques on Bath high-street, I realized independent shop owners are linchpins in their community. They add variety to the mundane and nurture community spirit. Even local guardians need protecting sometimes, which is why we created Pixie.”

The threat to independent stores from globalization and digitization isn’t just happening in Afghanistan. Across the western world, ‘Main Street’ stores are closing at a prodigious rate. In the UK over 1,500 local stores closed in 2018. (And that was BEFORE Brexit…)

Pixie has stress-tested its idea in mid-sized town in the UK, including Bath, Frome and Sherbourne, completing transactions across 250 businesses, ranging from cafes to fashion boutiques, and spinning up 5,000 app users. It’s now going on the fund-raising trail, aiming to raise £500,000 in funding through its ‘Equity for Explorers’ campaign on Crowdcube a UK-based crowd-equity platform. The total addressable market for independent business in the UK is estimated to be £31.5bn in gross transactional value.

Barden — who last year spoke about his startup life at the launch of the military tech non-profit TechVets — says: “There might be thousands of independent businesses across the UK, but at the rate the high-street is disappearing they are severely under threat. Pixie isn’t here to turn people away from the bigger players on the high-street, but create opportunities for enriching discovery. Needless to say, in a world with increasing nationalism, Brexit, Trump and — dare I say it — Amazon, we feel Pixie has a huge part to play in countering the worst aspects of globalization.”

Pixie’s revenue comes from transaction fees taken when people use its ‘Pixie Pay’ payment mechanism. The payment system is designed to bypass Visa/Mastercard at the point of sale, whilst the loyalty scheme unites independent businesses under one umbrella, so the users can earn and spend their loyalty points (as money) across the entire Pixie community. If a store using Pixie is in Australia, a person from Bath could also use their points there. This keeps the money circulating inside local, independent stores, wherever they are on the planet.

Pixie distributes its own payment terminal that sits next to whatever the business has in place to take normal card payments (iZettle etc). The cards are contactless but don’t utilise visa MasterCard. It’s literally their own e-money system. Think PayPal where users can either add money to their balance by debit card or bank and/or link a debit card to Pixie if they don’t have a balance.

Obviously this also creates it an alternative to competitors like iZettle, Square, SumUp and WorldPay, but this time specifically aimed at local independent stores, not huge national and international chains.

The third element of Pixie is its discovery marketplace that gives its community of explorers (users) the ability to discover local businesses across the Pixie footprint of stores.

I’ve seen several startups try and tackle this problem, but it may well be that Pixie, under its charismatic leader, finally has a shot at cracking this idea around local markets.

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GasBuddy tops the App Store for the first time due to Colonial Pipeline attack – TechCrunch

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The GasBuddy mobile app, which typically helps consumers find the cheapest gas nearby, has now become the No. 1 app on the U.S. App Store for the first time ever, due to the fuel shortages in the U.S. that followed the cyberattack on the Colonial Pipeline. Americans, fearful that gas would become unavailable, began panic-buying in ways that haven’t been seen since the great toilet paper outage of 2020. As a result, thousands of gas stations ran out of fuel entirely. This dramatic situation has greatly benefitted the GasBuddy app, which includes a crowdsourced feature that helps users locate which local stations still have gas for sale.

As of Wednesday afternoon, GasBuddy says the effects of the Colonial Pipeline shutdown are being felt across 11 U.S. states, largely in the Southeast and Washington, D.C. North Carolina had the highest number of gas stations with fuel outages, with 65% of stations reportedly out of gas as of 2:48 p.m. ET on Wednesday. Kentucky has the lowest at only 2%. Because this data is self-reported by GasBuddy users, it may not represent the most current information, we should note.

Image Credits: GasBuddy app screenshot

During the week, consumers have been turning to GasBuddy to help them find where they can fill up. Yesterday, the app hit No. 1 in the “Travel” category on the App Store, while it steadily climbed its way up the App Store’s Top Overall charts.

This afternoon, GasBuddy became both the No.1 app in the non-games category as well as the highest-ranked app Overall across the U.S. App Store.

According to data from app store intelligence firm Apptopia, GasBuddy yesterday saw 15,203 new downloads — a 59% increase from its average daily downloads, which were 9,560 for the past 30 days. However, third-party data isn’t always accurate for sudden shots in rank — it catches up a few days after the fact.

Image Credits: Apptopia

Reached for comment, GasBuddy says its downloads were actually far higher than the third-party estimates. Across all platforms, including both iOS and Google Play, it saw 20x more downloads yesterday compared with an average day in 2021. The company told TechCrunch it counted 313,001 total downloads yesterday, compared with average daily downloads for the previous 30 days of 15,339.

Broken down by platform, GasBuddy says it saw 104,735 downloads on Android and 208,266 downloads on iOS on Tuesday, May 11, 2021.

Apptopia also noted that GasBuddy hadn’t been the No. 1 app on the App Store in all the time it’s been recording app store rankings, which goes back to January 1, 2015. However, it noted the app itself launched back in 2010, making it possible (though not likely) that the app had reached No. 1 at some point.

GasBuddy confirmed that’s not the case. Today is the first time it has ever topped the App Store, though it got close once before when it reached No. 2 behind a walkie-talkie app during Hurricane Irma in September 2017.

Image Credits: App Store screenshot on Wed., May 12, 2021

Consumers can continue to track statewide fuel outages here on GasBuddy’s website as well as where highest prices are being found. In the app, they can report whether gas stations have gas or diesel, as well as current prices.

The Colonial Pipeline, which runs 5,500 miles from the Gulf to the Northeast, shut down on Friday due to a ransomware attack from a criminal hacking network known as DarkSide, which is suspected to be based in Russia or Eastern Europe. The pipeline delivers about 45% of fuel used by the Eastern Seaboard. Reports of the shutdown sent Americans to stock up on gas, worsening the situation further. The U.S. Energy Secretary Jennifer Granholm said the Colonial Pipeline intends to restore operations by the end of the week.

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The truth about SDK integrations and their impact on developers – TechCrunch

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The digital media industry often talks about how much influence, dominance and power entities like Google and Facebook have. Generally, the focus is on the vast troves of data and audience reach these companies tout. However, there’s more beneath the surface that strengthens the grip these companies have on both app developers and publishers alike.

In reality, software development kit (SDK) integrations are a critical component of why these monolith companies have such a prominent presence. For reference, an SDK is a set of software development tools, libraries, code samples, processes and guides that help developers create or enhance the apps they’re building.

Through a digital marketing lens, SDKs provide in-app analytics, insights on campaign testing, attribution information, location details, monetization capabilities and more.

Through a digital marketing lens, SDKs provide in-app analytics, insights on campaign testing, attribution information, location details, monetization capabilities and more. In the case of companies like Google and Facebook, their ability to provide these insights dovetails with their data and reach.

While that does deliver useful capabilities to developers and publishers alike, it also perpetuates the factors contributing to their perceived monopolistic status — and the detriments a lack of competition fosters.

Almost all (90%) ad-monetized Android apps have Google’s Admob SDK integrated, data from Statista showed. Additionally, the Facebook Audience Network SDK is present in 19% of all global Android apps utilizing mobile ads. It’s worth noting that the large majority of alternative “leading” advertising SDKs outside these two players are used less than 13% of the time in Android apps.

As the app ecosystem rapidly expands beyond the borders of mobile, app developers and publishers would benefit immensely from identifying economical and secure ways of adopting more SDKs.

The state of SDK adoption

While there are many SDKs available in the market today, a few key factors contribute to Google and Facebook’s overall dominance. The most basic is around the respective organizations’ reach and industry notoriety. However, a larger component here is the lack of resources and time app developers have.

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Sanlo raises $3.5M to help apps and games gain access to financial insights and capital – TechCrunch

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Having a great idea for an app or game is one thing, but scaling it to become a successful business is quite another. A new fintech startup called Sanlo aims to help. The company, which is today announcing an oversubscribed $3.5 million seed round, offers small to medium-sized game and app companies access to tools to manage their finances and capital to fuel their growth.

To be clear, Sanlo is not an investor that’s taking an equity stake in the apps and games it finances. Instead, it’s offering businesses access to technology, tools, and insights that will allow them to achieve smart and scalable growth while remaining financially healthy — even if they’re a smaller company without time to sit down and structure their finances. Then, when Sanlo’s proprietary algorithms determine the business could benefit from the smart deployment of capital, it will assist by offering financing.

The idea for Sanlo hails from co-founders Olya Caliujnaia and William Liu, who both have backgrounds in fintech and gaming.

Caliujnaia began her career in venture capital in one of the first mobile-focused funds, before moving to operator roles in gaming, stock photography, and fintech, at EA, Getty Images, and SigFig, respectively. She later joined early-stage fintech and enterprise fund XYZ.vc as an Entrepreneur in Residence.

Liu, meanwhile, had also worked in gaming at EA, but later switched to fintech, working at startups like Earnest and Branch.

After reconnecting in San Francisco, the co-founders realized they could put their combined experience to work in order to help smaller businesses just starting out recognize when it’s time to scale, what areas of the business to invest in, and how much capital they need to grow.

Image Credits: Sanlo’s Olya Caliujnaia and William Liu

Caliujnaia has seen how the app and gaming market has evolved over the years, and she realized the difficulties new developers now face.

“You have this explosion of the app economy that’s growing insanely,” she says. “That’s the exciting part of it. That creativity. That passion and that desire to build — that’s so admirable.”

Today, companies benefit from having access to better development tools, broader access to talent, consumer demand, and other forces, she notes, compared with those in the past. But on the flip side, it’s become incredibly difficult to scale a consumer app or game.

“I think a lot of that comes down to, one, that there are dynamics around the free-to-play model — how you monetize and therefore, what kind of players and users you bring on board,” Caliujnaia says. “And then the second aspect is that it’s just harder to get noticed. So, ultimately, it comes down to marketing.”

Many of the decisions that a company has to make on this front are predictable, however. That means Sanlo doesn’t have to sit down with businesses and consult with them one-on-one, the way a financial advisor working in wealth management would do with their clients.

Instead, Sanlo asks companies for certain types of data to get started. This includes product data about how well the app or game monetizes and customer acquisition and retention, for example, as well as marketing data and a subset of financial data. Its predictive algorithms then continually monitor the company’s growth trajectory to surface insights to identify where and how the business can grow.

This concept alone could have worked as a services business for mobile studios, but Sanlo takes the next step beyond advice to actually provide companies with access to capital. The amount of financing provided will vary based on the life stage of the company and risk profile, but it’s non-dilutive capital. That is, Sanlo takes no ownership stake in the companies it finances.

Image Credits: Sanlo

Caliujnaia said it made more sense to go this route rather than return to the VC world, because of potential to reach a wider group.

“There’s this long tail of developers and it’s more about enabling them, rather than producing more hits,” she says. “It’s very different mindsets, different markets that we’re going for.”

Sanlo doesn’t have a lot of direct competitors beyond perhaps, Silicon Valley Bank and other financial lenders, as well as mobile gaming publishers. But the publisher model often implies some sort of ownership, which is a significant differentiating factor. In some cases, you may see a larger gaming company extending debt financing to a smaller one. That was the case with Finnish mobile games company Metacore which recently raised another debt round from gaming giant Supercell, for example.

Caliujnaia points out that most smaller companies don’t have that kind of access to financing. Now they could, through Sanlo.

“The idea is to have a healthier layer of companies that are able to survive for the long-term,” she says.

That means more companies that won’t have to stress about their futures, leading to them to aggressively monetize their users, and later, scrambling for an exit when their financial runway comes to an end.

Sanlo is currently pilot testing its system with a small group of mobile game studios who will serve as its initial customer base, but plans to later support consumer apps, which have similar struggles with customer acquisition costs and growth.

The San Francisco-headquartered startup itself was founded in 2020 and began raising money. It has now raised a total of $3.5 million in seed funding co-led by Index Ventures and Initial Capital, with participation from LVP, Portag3 Ventures, and  XYZ Venture Capital. Angel investors include Kristian Segestrale (Super Evil Megacorp CEO), Gokul Rajaram and Charley Ma. 

Initial Capital co-founder and partner Ken Lamb became a board director with the fundraise, while Index partner Mark Goldberg and XYZ managing partner Ross Fubini joined as board observers.

“Sanlo cracked the code to help mobile gaming and app companies reach maturity with a new level of speed, scale, and fiscal wellbeing,” said Goldberg, in a statement. “The company is building a very sophisticated fintech offering that will give those companies superpowers.”

Sanlo plans to use the funds to grow its team and product suite ahead of its public launch later this year.

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