To win post-pandemic, startups need remote-first growth teams

Growth leaders used to build key relationships across a company while working together in a real-life office. Those relationships could carry over through the pandemic, but let’s say you’re a new company and you’re remote-first.

How do you build this complex collaboration from scratch?

Growth marketer and investor Susan Su tells us that the solution is not just more software tools. In the interview below, she says that after the pandemic, startup founders will need to develop a mentality that places growth at the center of company strategy.

Consultants and agencies can be great additions to this effort, especially if they have previously solved the types of problems you face. (In fact, TechCrunch is asking founders who have worked with growth marketers to share a recommendation in this survey. We’ll use your answers to find more experts to interview.)

Su is currently the head of portfolio strategy for Sound Ventures, previously a growth leader at Stripe and the first hire at Reforge. She also shared a few thoughts on market opportunities after the pandemic in the full interview below. E-commerce is mainstream for good, she says, even as we all try to step away from screens more often. However, many social and mobile sectors are mature, and it’s going to be even harder for startups to compete as real-world activities absorb more time.

Don’t forget: Susan Su will also appear at our Early Stage virtual event on July 8 (and answer questions directly).

How are you seeing startups manage changes in user engagement as more people exit pandemic lockdowns and adjust their daily lives?

As we exit the pandemic, I expect that we’ll see a natural and obvious spike in some consumer activity that will roll up to midsized businesses and enterprises. Just like with the onset of the pandemic, we’ll see uneven results across sectors:

E-commerce boomed during the pandemic but was really an augmentation of an already-accelerating trend towards digital commerce and streamlined logistics. I don’t think we backtrack from e-commerce because habit formation around online shopping has been building for years; we would be backtracking to an age long before 2020, and that’s not going to happen.

New social-mobile experiences also boomed during the pandemic, but there’s still a valid question around whether 15 months or so is enough time to become part of the ingrained infrastructure of daily life. We are living in an age of mature platforms, so every new service is stealing time away from an existing service. As with pre-pandemic growth, their success rests upon fast-accumulating network effects and great, sticky core product experience. Now that we have parks, friends and dinners out calling to us again, it’s a real test of how compelling some of these new value propositions really are, and whether they can continue to demonstrate their relevance in a more hybridized online-offline world.

That said, the pandemic was an enormous constraint on human society and [the] economy, and these kinds of constraints often breed innovation that doesn’t go away. We will evolve, but we can never go back. It sounds cheesy but it’s true.

Some aspects of the pandemic, like remote work, appear to have radically changed certain industries. How will these societal changes impact how the typical startup thinks about growth?

Growth will always be growth — that is, a process of iterative experimentation to identify and solve customer problems, and then scale those solutions in order to reach and convert bigger and bigger audiences. Platform changes like iOS 14 or Facebook’s periodic algorithm adjustments will have a bigger impact in the near term on the technical functioning of growth, and these aren’t specifically pandemic-related.

One area to watch is how growth teams are built and operated. Growth is a horizontal function that touches many different parts of the org, including product, engineering, marketing, comms and design. Many startup teams have already been working with collaboration tools even while they sat in the same office, but growth is about more than just using tools. The most effective growth leaders succeed by building relationships across the organization; it’s like the fable of Stone Soup — you’re creating this meal that will feed everyone, but you also need each person to bring a pinch of salt, or a dash of pepper, or one carrot, and that requires socialization and relationship-building. I’ll be very interested to see how new growth leaders onboard remote-only teams and what approaches they take to this “networking” need within the function.

From the days of growth hacking on social platforms, growth marketing is now an established part of the world. But it’s not necessarily the main expertise of a startup founder, even if it needs to be. So, how should they think about addressing growth marketing in 2021? What are the essentials they should do in their roles?

Every founder needs to have a growth mentality. They don’t need to memorize all the right buttons to push in an ads dashboard, but they need to be familiar and comfortable with the core work of gap-finding. That said, founders are by definition entrepreneurial — their company exists because they saw an opportunity that no one else did, and this is the fundamental work of growth as well.

Founders will fail if they adopt a mentality that someone else can or should do it for them. The founder’s job is to supply ambition and opinions, and then magnetize high-quality talent to come and pull the levers and bring their creative vision to life. There are many people who can do growth marketing — that is, they know how the platforms work, they understand the rules and the playbooks. But there are very few who can come up with truly visionary strategies that change the game altogether — those people become founders, and those companies become household names. So for a founder, I’d say the most important growth work is to continue to know your market and customer better than anyone else in the whole world, have an opinion about what’s missing, and work to bring the best talent to come in alongside you and be a thought partner, not just a button pusher.

With limited resources, how should early-stage companies think about what to focus on?

This is going to depend on the goals of your company. Are you planning to raise money and need to demonstrate certain KPIs? Are you bootstrapping and need to keep the lights on? Resources should always be allocated to the most strategic purposes, with the longest-term view you can afford. For some companies, this could mean forgoing revenue to focus on viral or word-of-mouth-driven user acquisition to demonstrate to future investors that there’s something special here. For other companies, perhaps in lower volume categories like enterprise, it’s about bringing a few strategic logos into the family as a signal to later customers and other stakeholders, including future employees and investors.

One thing that early-stage companies should always be focused on is building a top-shelf employer brand. You will only ever be as good as the talent you attract to your company, and interestingly growth can actually play a role in this. The best designers, engineers and product people are often flowing towards the companies that have the best growth. In that way, it’s a highly strategic role and function.

What do startups continue to get wrong?

You can’t truly outsource growth or any other core function; you can’t tack on customer acquisition after product development. At the end of the day, if you really think about it, all a company is, is a customer-acquisition engine. This needs to be core; wake up every day and think about growth, not just to hit revenue or user KPIs, but to build the company that the best people are clamoring to work at. It’s not about finding someone sufficient to solve your near-term problems; it’s about framing problems in a way that’s so compelling to the most creative, hardest working people so that they can’t get it out of their heads. Go for talent moonshots, and figure out how to close them. The rest will fall in line from there.

When should a founder feel comfortable getting help from an outside expert or agency?

Anytime. Agencies are great. They are an extension of your talent, and the best agencies aren’t selling you — they have to be sold on your problem because they have their pick of companies just like yours. That’s the agency or outside expert you want to work with, because they’ll have a priceless perspective from the other best-in-class founders and teams they’ve worked with that they can bring to your challenge. Any agency can run Facebook ads (it’s not rocket science), but you want to find the team that’s solved the gnarliest problems for your hero companies. Then you’ll get not just an ads manager, but a teacher.

 

Ukrainian police arrest multiple Clop ransomware gang suspects

Multiple suspects believed to be linked to the Clop ransomware gang have been detained in Ukraine after a joint operation from law enforcement agencies in Ukraine, South Korea, and the United States.

The Cyber Police Department of the National Police of Ukraine confirmed that six arrests were made after searches at 21 residences in the capital Kyiv and nearby regions. While it’s unclear whether the defendants are affiliates or core developers of the ransomware operation, they are accused of running a “double extortion” scheme, in which victims who refuse to pay the ransom are threatened with the leak of data stolen from their networks prior to their files being encrypted.

“It was established that six defendants carried out attacks of malicious software such as ‘ransomware’ on the servers of American and [South] Korean companies,” alleged Ukraine’s national police force in a statement.

The police also seized equipment from the alleged Clop ransomware gang, said to behind total financial damages of about $500 million. This includes computer equipment, several cars — including a Tesla and Mercedes, and 5 million Ukrainian Hryvnia (around $185,000) in cash. The authorities also claim to have successfully shut down the server infrastructure used by the gang members to launch previous attacks.

“Together, law enforcement has managed to shut down the infrastructure from which the virus spreads and block channels for legalizing criminally acquired cryptocurrencies,” the statement added.

These attacks first began in February 2019, when the group attacked four Korean companies and encrypted 810 internal services and personal computers. Since, Clop — often styled as “Cl0p” — has been linked to a number of high-profile ransomware attacks. These include the breach of U.S. pharmaceutical giant ExecuPharm in April 2020 and the attack on South Korean e-commerce giant E-Land in November that forced the retailer to close almost half of its stores.

Clop is also linked to the ransomware attack and data breach at Accellion, which saw hackers exploit flaws in the IT provider’s File Transfer Appliance (FTA) software to steal data from dozens of its customers. Victims of this breach include Singaporean telecom Singtel, law firm Jones Day, grocery store chain Kroger, and cybersecurity firm Qualys.

At the time of writing, the dark web portal that Clop uses to share stolen data is still up and running, although it hasn’t been updated for several weeks. However, law enforcement typically replaces the targets’ website with their own logo in the event of a successful takedown, which suggests that members of the gang could still be active.

“The Cl0p operation has been used to disrupt and extort organizations globally in a variety of sectors including telecommunications, pharmaceuticals, oil and gas, aerospace, and technology,” said John Hultquist, vice president of analysis at Mandiant’s threat intelligence unit. “The actor FIN11 has been strongly associated with this operation, which has included both ransomware and extortion, but it is unclear if the arrests included FIN11 actors or others who may also be associated with the operation.”

Hultquist said the efforts of the Ukrainian police “are a reminder that the country is a strong partner for the U.S. in the fight against cybercrime and authorities there are making the effort to deny criminals a safe harbor.”

The alleged perpetrators face up to eight years in prison on charges of unauthorized interference in the work of computers, automated systems, computer networks, or telecommunications networks and laundering property obtained by criminal means.

News of the arrests comes as international law enforcement turns up the heat on ransomware gangs. Last week, the U.S. Department of Justice announced that it had seized most of the ransom paid to members of DarkSide by Colonial Pipeline.

Shopify expands its one-click checkout, Shop Pay, to any merchant on Facebook or Google

E-commerce platform Shopify announced this morning its one-click checkout service known as Shop Pay will become available to any U.S. merchant that sells on Facebook or Google — even if they don’t use Shopify’s software to power their online stores. That makes Shop Pay the first Shopify product offered to non-Shopify merchants, the company notes.

First introduced at its developer conference in 2017, Shop Pay is similar to other instant checkout solutions that offer an easier way to pay online by reducing the number of fields a customer has to fill out during the checkout process. The service remembers and encrypts the customer’s information, so consumers can check out with just a tap when shopping online and, as of recently, even pay for purchase in installments, thanks to a partnership with Affirm.

Shopify in February had expanded Shop Pay to Facebook and Instagram, in partnership with Facebook, but it only worked for existing Shopify merchants selling on those social platforms at the time. In May, Google announced at its I/O developer conference it was partnering with Shopify on an online shopping expansion that would give Shopify’s more than 1.7 million merchants the ability to reach customers through Google Search and other “shopping journeys” that began through other Google properties like Search, Maps, Images, Lens, and YouTube.

The company declined to share how many of its 1.7 million merchants are already available on Facebook or Google today, but said they are two of the most popular channels.

Following today’s announcement, other merchants will also have the option to adopt Shop Pay for their own Facebook or Google stores. While how many will actually do so is yet unknown, Shopify notes that every day 1.8 billion people log onto Facebook and a billion shopping sessions take place across Google.

The company also touted Shop Pay’s advantages, including its 70% faster checkout than a typical checkout offers, with a 1.72x higher conversion rate — meaning fewer abandoned charts.

For consumers, the advantage of using Shop Pay over a traditional checkout, beyond the speed, is its integration with Shopify’s mobile app, Shop, which organizes and tracks your online orders across merchants, including Amazon,  so you can see when orders are arriving or quickly ask questions and manage returns.

To date, the Shop app has tracked over 430 million orders, the company says.

Over time, the Shop app can also customize a feed including users’ favorite stores to point to other recommendations, including those from local merchants. Shopify confirmed that the Shop app will be able to track the Shop Pay-enabled orders from the non-Shopify merchants.

“Since launching, Shop Pay has set the standard for checkout experiences, facilitating more than $24 billion in orders,” noted Shopify VP, Carl Rivera, who heads Product for Shop. “According to studies, cart abandonment averages 70%, with nearly 20% occurring because of a complicated checkout process. Shop Pay makes that process fast and simple, and the expansion to all merchants selling on Facebook and Google is a mission-critical step in bringing a best-in-class checkout to every consumer, every merchant, every platform, and every device,” he added.

The expansion could be a notable challenge to other payment mechanisms, including PayPal, Venmo, Apple Pay, and those offered by the platforms themselves, thanks to Shopify’s growing traction with merchants — one analysis gives its platform a 23% market share in the U.S — combined with the popularity of the Shop app, now the No. 3 Shopping app on the App Store.

The news follows yesterday’s confirmation that Shopify has taken a significant stake in payments giant Stripe, the backbone of the Shop Pay service, as well as Shopify’s partner on merchant services, including bank accounts and debit cards.

Shopify says the Shop Pay service will be enabled for all U.S. merchants selling on Facebook in the “coming months,” and will roll out to all merchants on Google by late 2021.

 

The fintech endgame: New supercompanies combine the best of software and financials

If money is the ultimate commodity, how can fintechs — which sell money, move money or sell insurance against monetary loss — build products that remain differentiated and create lasting value over time?

And why are so many software companies — which already boast highly differentiated offerings and serve huge markets— moving to offer financial services embedded within their products?

A new and attractive hybrid category of company is emerging at the intersection of software and financial services, creating buzz in the investment and entrepreneurial communities, as we discussed at our “Fintech: The Endgame” virtual conference and accompanying report this week.

These specialized companies — in some cases, software companies that also process payments and hold funds on behalf of their customers, and in others, financial-first companies that integrate workflow and features more reminiscent of software companies — combine some of the best attributes of both categories.

Image Credits: Battery Ventures

From software, they design for strong user engagement linked to helpful, intuitive products that drive retention over the long term. From financials, they draw on the ability to earn revenues indexed to the growth of a customer’s business.

Fintech is poised to revolutionize financial services, both through reinventing existing products and driving new business models as financial services become more pervasive within other sectors.

The powerful combination of these two models is rapidly driving both public and private market value as investors grant these “super” companies premium valuations — in the public sphere, nearly twice the median multiple of pure software companies, according to a Battery analysis.

The near-perfect example of this phenomenon is Shopify, the company that made its name selling software to help business owners launch and manage online stores. Despite achieving notable scale with this original SaaS product, Shopify today makes twice as much revenue from payments as it does from software by enabling those business owners to accept credit card payments and acting as its own payment processor.

The combination of a software solution indexed to e-commerce growth, combined with a profitable payments stream growing even faster than its software revenues, has investors granting Shopify a 31x multiple on its forward revenues, according to CapIQ data as of May 26.

How should we value these fintech companies, anyway?

Before even talking about how investors should value these hybrid companies, it’s worth making the point that in both private and public markets, fintechs have been notoriously hard to value, fomenting controversy and debate in the investment community.

Messenger adds Venmo-like QR codes for person-to-person payments in the U.S.

This spring, Facebook confirmed it was testing Venmo-like QR codes for person-to-person payments inside its app in the U.S. Today, the company announced those codes are now launching publicly to all U.S. users, allowing anyone to send or request money through Facebook Pay — even if they’re not Facebook friends.

The QR codes work similarly to those found in other payment apps, like Venmo.

The feature can be found under the “Facebook Pay” section in Messenger’s settings, accessed by tapping on your profile icon at the top left of the screen. Here, you’ll be presented with your personalized QR code which looks much like a regular QR code except that it features your profile icon in the middle.

Underneath, you’ll be shown your personal Facebook Pay UR which is in the format of “https://m.me/pay/UserName.” This can also be copied and sent to other users when you’re requesting a payment.

Facebook notes that the codes will work between any U.S. Messenger users, and won’t require a separate payment app or any sort of contact entry or upload process to get started.

Users who want to be able to send and receive money in Messenger have to be at least 18 years old, and will have to have a Visa or Mastercard debit card, a PayPal account or one of the supported prepaid cards or government-issued cards, in order to use the payments feature. They’ll also need to set their preferred currency to U.S. dollars in the app.

After setup is complete, you can choose which payment method you want as your default and optionally protect payments behind a PIN code of your choosing.

The QR code is also available from the Facebook Pay section of the main Facebook app, in a carousel at the top of the screen.

Facebook Pay first launched in November 2019, as a way to establish a payment system that extends across the company’s apps for not just person-to-person payments, but also other features, like donations, Stars, and e-commerce, among other things. Though the QR codes take cues from Venmo and others, the service as it stands today is not necessarily a rival to payment apps because Facebook partners with PayPal as one of the supported payment methods.

However, although the payments experience is separate from Facebook’s cryptocurrency walletNovi, that’s something that could perhaps change in the future.

Image Credits: Facebook

The feature was introduced alongside a few other Messenger updates, including a new Quick Reply bar that makes it easier to respond to a photo or video without having to return to the main chat thread. Facebook also added new chat themes including one for Olivia Rodrigo fans, another for World Oceans Day, and one that promotes the new F9 movie.

 

RSA spins off fraud and risk intelligence unit as Outseer

RSA Security has spun out its fraud and risk intelligence business into a standalone company called Outseer that will double down on payment security tools amid an “unprecedented” rise in fraudulent transactions.

Led by CEO Reed Taussig, who was appointed head of RSA’s Anti-Fraud Business Unit last year after previously serving as CEO of ThreatMetrix, the new company will focus solely on fraud detection and management and payments authentication services.

Outseer will continue to operate under the RSA umbrella and will inherit three core services, which are already used by more than 6,000 financial institutions, from the company: Outseer Fraud Manager (formerly RSA Adaptive Authentication), a risk-based account monitoring service; 3-D Secure (formerly Adaptive Authentication for eCommerce), a card-not-present and digital payment authentication mapping service; and FraudAction, which detects and takes down phishing sites, dodgy apps and fraudulent social media pages.

Outseer says its product portfolio is supported by deep investments in data and science, including a global network of verified fraud and transaction data, and a risk engine that the company claims delivers 95% fraud detection rates.

Commenting on the spinout, Taussig said: “Outseer is the culmination of decades of science-driven innovation in anti-fraud and payments authentication solutions. As the digital economy continues to deepen, the Outseer mission to liberate the world from transactional fraud is essential. Our role as a revenue enabler for the global economy will only strengthen as every digital business continues to scale.”

RSA, meanwhile, will continue to focus on integrated risk management and security products, including Archer for risk management, NetWitness for threat detection and response, and SecureID for identity and access management (IAM) capabilities.

The spinout comes less than a year after private equity firm Symphony Technology Group (STG), which recently bought FireEye’s product business for $1.2 billion, acquired RSA Security from Dell Technologies for more than $2 billion. Dell had previously acquired RSA as part of its purchase of EMC in 2016.

It also comes amid a huge rise in online fraud fueled by the COVID-19 pandemic. The Federal Trade Commission said in March that more than 217,000 Americans had filed a coronavirus-related fraud report since January 2020, with losses to COVID-linked fraud totaling $382 million. Similarly, the Consumer Financial Protection Bureau fielded 542,300 fraud complaints in 2020, a 54% increase over 2019.

RSA said that with the COVID-19 pandemic having fueled “unprecedented” growth in fraudulent transactions, Outseer will focus its innovation on payments authentication, mapping to the EMV 3-D Secure 2.x payment standard, and incorporating new technology integrations across the payments and commerce ecosystem. 

“Outseer’s reason for being isn’t just focused on eliminating payments and account fraud,” Taussig added. “These fraudulent transactions are often the pretext for more sinister drug and human trafficking, terrorism, and other nefarious behavior. Outseer has the ability to help make the world a safer place.”

Valuation information for Outseer was not disclosed, nor were headcount figures mentioned in the spinout announcement. Outseer didn’t immediately respond to TechCrunch’s request for more information. 

BukuWarung, a fintech for Indonesian MSMEs, scores $60M Series A led by Valar and Goodwater

BukuWarung, a fintech focused on Indonesia’s micro, small and medium enterprises (MSMEs), announced today it has raised a $60 million Series A. The oversubscribed round was led by Valar Ventures, marking the firm’s first investment in Indonesia, and Goodwater Capital. The Jakarta-based startup claims this is the largest Series A round ever raised by a startup focused on services for MSMEs. BukuWarung did not disclose its valuation, but sources tell TechCrunch it is estimated to be between $225 million to $250 million.

Other participants included returning backers and angel investors like Aldi Haryopratomo, former chief executive officer of payment gateway GoPay, Klarna co-founder Victor Jacobsson and partners from SoftBank and Trihill Capital.

Founded in 2019, BukuWarung’s target market is the more than 60 million MSMEs in Indonesia, according to data from the Ministry of Cooperatives and SMEs. These businesses contribute about 61% of the country’s gross domestic product and employ 97% of its workforce.

BukuWarung’s services, including digital payments, inventory management, bulk transactions and a Shopify-like e-commerce platform called Tokoko, are designed to digitize merchants that previously did most of their business offline (many of its clients started taking online orders during the COVID-19 pandemic). It is building what it describes as an “operating system” for MSMEs and currently claims more than 6.5 million registered merchant in 750 Indonesian cities, with most in Tier 2 and Tier 3 areas. It says it has processed about $1.4 billion in annualized payments so far, and is on track to process over $10 billion in annualized payments by 2022.

BukuWarung’s new round brings its total funding to $80 million. The company says its growth in users and payment volumes has been capital efficient, and that more than 90% of its funds raised have not been spent. It plans to add more MSME-focused financial services, including lending, savings and insurance, to its platform.

BukuWarung’s new funding announcement comes four months after its previous one, and less than a month after competitor BukuKas disclosed it had raised a $50 million Series B. Both started out as digital bookkeeping apps for MSMEs before expanding into financial services and e-commerce tools.

When asked how BukuWarung plans to continue differentiating from BukuKas, co-founder and CEO Abhinay Peddisetty told TechCrunch, “We don’t see this space as a winner takes all, our focus is on building the best products for MSMEs as proven by our execution on our payments and accounting, shown by massive growth in payments TPV as we’re 10x bigger than the nearest player in this space.”

He added, “We have already run successful lending experiments with partners in fintech and banks and are on track to monetize our merchants backed by our deep payments, accounting and other data that we collect.”

BukuWarung’s new funding will be used to double its current workforce of 150, located in Indonesia, Singapore and India, to 300 and develop BukuWarung’s accounting, digital payments and commerce products, including a payments infrastructure that will include QR payments and other services.

Instagram adds affiliate and shop features for creators

As Apple hosts their annual Worldwide Developers Conference, Instagram and Facebook chose this moment to pilot their first-ever Creator Week. This three-day event is geared toward aspiring and emerging digital creators, complete with 9:45 AM virtual DJ sets and panels on “Algorithm Mythbusting” and raising “zillions for a nonprofit you care about.”

During the first day of the event, Mark Zuckerberg made an announcement introducing new ways for creators to make money. In the coming months, Instagram will start testing a native affiliate tool, which allows creators to recommend products available on checkout, share them with followers, and earn commissions for sales their posts drive. When creators make these posts, the text “eligible for commission” will appear beneath their username in the same way that sponsored content labels appear.

Available immediately, creators will be able to link their shops to their personal profiles, not just business ones. By the end of the year, eligible creators in the U.S. will be able to partner with one of Instagram’s merchandise partners (Bravado/UMG, Fanjoy, Represent, and Spring) to drop exclusive product launches on the app.

During live Instagram videos, viewers can tip creators by sending them a Badge, which costs between $0.99 and $4.99. Facebook Gaming has a similar feature called Stars, in which one Star is valued at $0.01. Starting this week, creators can earn bonuses for accomplishing certain challenges, like going live with another account. In a promotional image, for example, Facebook offers a bonus of $150 for creators who earn 5000 Stars, the equivalent of $50.

“To help more creators make a living on our platforms, we’re going to keep paid online events, fan subscriptions, badges, and our upcoming independent news products free for creators until 2023,” Zuckerberg wrote in a Facebook post. “And when we do introduce a revenue share, it will be less than the 30% that Apple and others take.”

Image Credits: Instagram

These updates mark the latest push by Instagram toward affiliate marketing and in-app shopping, like its redesigned Instagram Shop and Shopping in Reels, which debuted within the last year.

“Our goal is to be the best platform for creators like you to make a living. And if you have an idea that you want to share with the world, you should be able to create it and get it out there easily and simply – across Facebook and Instagram – and then earn money for your work,” Zuckerberg added during Creator Week.

Creators may be drawn to experiment with these affiliate and shop features, since for now, they won’t lose a cut of their profits to Instagram. But platforms like TikTok and YouTube offer monetization strategies that extend beyond ecommerce.

Last July, TikTok announced its $200M TikTok Creator Fund, which allows popular posters to earn money from their videos. It’s unclear exactly how TikTok determines how much money to dole out, but it depends on the number of views, engaged views, and other factors. In August 2020, the YouTuber-turned-TikToker Hank Green estimated that he would bring home about $700 from 20,000,000 TikTok views in one month, averaging to about 3.5 cents per 1000 views.

Meanwhile, YouTube announced a $100M fund last month for top creators on YouTube Shorts, its TikTok competitor. The platform pointed out that over the last three years, it has paid $30 billion to content creators. Snapchat has been paying $1 million per day to creators on their own TikTok competitor, Spotlight.

For users who don’t have millions of followers, these creator funds might not pay the rent. Still, it offers an income stream based on views, outside of ecommerce or viewer tips. For now, Instagram can’t say the same.

Pinterest adds a Shopping List feature to round up your saved products

Pinterest has long positioned itself a source for inspiration that could ultimately lead to online purchases. And over the years, it has worked on features to better connect consumers with the products and services they want to buy, like shoppable pins, visual search, AR try-on, product recommendations, and more. Today, the company is rolling out another feature aimed at turning users’ saved Pins into purchases: a shopping list.

The new Pinterest Shopping list feature saves all your Product Pins in one place, so when you’re ready to purchase you won’t have to hunt around through your saved Pins and Boards to find the products you had been considering. Here, you’ll find the information you need, including an item’s price, reviews, and shipping info in an even grid so you can compare products and make decisions.

The feature, however, isn’t just an organizational tool — Pinterest says it will also send out notifications if the items you’ve saved have dropped in price — which could encourage users to make the purchase.

The Shopping List is available on your Profile page above your other boards, and will include the shoppable items you’ve saved as well as items you’ve recently viewed. When you’re ready to buy, you can click on the pin to visit the retailer’s website to complete the transaction — giving Pinterest the credit for the referral, of course.

The feature will launch first in the U.S. and U.K., and will later roll out to Australia, Canada, France and Germany later in the year, Pinterest says.

Alongside the Shopping List, Pinterest today is also expanding merchant tools with the debut of its Verified Merchant Program in the U.K., Australia, Canada, France and Germany, plus a merchant storefront on profile feature, and new product tagging in Australia, Canada, France and Germany. Launched last year, the Verified Merchant Program offers retailers a way to sign up for a manual review to determine if they meet Pinterest’s qualifications for high-quality customer service experiences. If so, they receive a blue checkmark on their profile as a signal to consumers that they’re a trustworthy retailer.

Image Credits: Pinterest

In addition, the company is today launching a special two-week long Shopping Spotlight called “The Goods by Pinterest,” which offers users access to limited edition items sold by DTC brands including Brooklinen, Outdoor Voices, Clare Paint, Olive & June, and Maude. And it’s running a “Shop the mood” campaign offering curated trends from its annual report, “Pinterest Predicts.”

Though Pinterest notes its users, on average, outspend non-users by 2x every month and have a 85% larger basket size, the way people want to shop online is rapidly changing.

Historically an image-centric idea board of sorts, Pinterest may be left behind as more consumers — and particularly younger shoppers — begin to more heavily rely on shopping via video (both recorded and live), including through influencer-driven content across platforms like Facebook, Instagram and TikTok. Pinterest has only more recently expanded into this area, with the launch of video-first “Idea Pins” last month aimed at creators, and a test of livestreamed creator events around the same time.

The new launches follow a Pinterest earnings beat in April on both EPS and revenue (11 cents vs 7 cents expected, and $485M vs $474M expected), but slowing user growth. The company reported 478 million monthly active users versus the 480.5 million expected, causing the stock to drop 10% after the report came out. The company blamed the decline in user growth and user engagement on the easing of Covid-19 restrictions, as consumers began to spend less time online.

With the new additions, Pinterest wants to better ensure those users who are on its site are not just idly browsing, but actually checking out.

Little Black Door launches app on iOS/Android allowing women to share wardrobes, online and off

Our relationship with fashion has changed, not just because of the pandemic. Months in lockdown means people are probably more aware of their fashion purchases and how they consume, given its been such a long time without socialising. But the oft-talked about ‘Clueless wardrobe’ which would allow women to both see into their collections, as well as share and potentially borrow from friends, has yet to go mainstream. Now a UK startup aims to change this.

The Little Black door app, previously in closed beta, has just launched on the Apple iOS store here and on Android.

The app allows women to share the content of their wardrobes, in an Instagram-like manner by creating collections (“Lookbooks”), as well as curating their private wardrobe for their own use, with a focus on premium and luxury fashion. Women, says LBD, can “see, style and share”, as well as borrow clothes offline, and resell them.

The Lookbook feature allows women to share wardrobes collections with friends or followers in a controlled way, a feature that lets users borrow from each other.

Co-founder Lexi Willetts tells me: “We’d simply gotten to a point where we didn’t know what fashion we owned, given that almost every other area of life allows this. Most fashion can be easily dash-boarded on our phones – we couldn’t understand why our wardrobe wasn’t! Equally the effort required to list an item on resale was also super hard.”

Willetts and co-founder Marina Pengilly came up with the app when they realized they could make as much as £30,000 a year reselling their luxury clothes and accessories online. LBD is going after four key trends: the rise of resale (Depop etc); rentals like Rent the Runway; AI in e-commerce; and re-receipts.

Users upload their wardrobe by taking a photo of an item. The app will then recognize the item using computer vision. Lookbooks showcasing fashion collections, new and old also have an “I have this” button, allowing users to add items to their own wardrobes, or add as they buy automatically via links to retailers.

Another key feature allows users to see into their own wardrobes to see what they have, and, crucially, see how much they’ve spent, and own, in value.

Users can also create a Lookbook, not unlike on Pinterest, which can be shared with friends or a wider fashion community in a public or private group-controlled way. Lookbooks can be shared with a user’s network to allow them to see your style, or borrow the outfit in real life. As well as this, LBD itself also curates a feed of fashion/lifestyle news and surveys.

Willetts says partnerships with retailers and supplier deals for sales and fashion repairs are also in the offing.

LBD competes with the ‘Save Your Wardrobe’ app.

But is pushing the fact that it places a greater emphasis on sharing the wardrobe as well also allowing people to borrow items, with this focus on premium and luxury fashion – ADD …this is a truly social wardrobe.

The business model is likely to be a Premium version that unlocks extra features, affiliate revenues, advertising, and resale commissions.

Disclosure: Mike Butcher was an early, informal, adviser.