Snap reportedly bought its very own 3D game engine

Snapchat’s parent company bought a web-based 3D game engine startup out of the UK this past May, Business Insider (paywalled) reports.

PlayCanvas is a development tool focused on letting people easily design rich 3D environments. Unlike products from companies like Unity and Epic Games, PlayCanvas’s game engine was entirely browser-based and was optimized to run on low-power devices. The focus of the WebGL engine stretches from configuring 3D models to running entire games.

The small London-based company was founded in 2011 and raised just $590,000 in seed funding from investors including the Microsoft Accelerator and DC Thomson Ventures according to Crunchbase. We don’t know how much the deal went for.

While many of Snap’s recent acquisitions have focused on bolstering consumer-facing features, PlayCanvas seems to be focused squarely on developers. The most obvious use of a tool would have been to integrate the technology into Snap’s Lens Studio product where developers can build their own AR Lens effects. Snap has recently been drawing more attention to third-party AR creations, and it’s clear that if the company wants to reach any sort of scale in its augmented reality plans, it’s going to have to hand over the reigns to a developer network.

We have reached out to Snap for confirmation.

Southern California needs to find its hub for it to develop its own tech ecosystem

Recognizing the tens of billions of dollars that the Southern Californian region leaves on the table, because it hasn’t taken its rightful place in the American technology industry, a new group called  the Alliance for Southern California Innovation has just released a report to analyze how SoCal can work to assume its pole position.

Through interviews with 100 leaders of the technology ecosystem and an analysis of venture capital funding for the region, the organization has concluded (with the help of the Boston Consulting Group) that the promise of a regional rival to Northern California’s silicon valley won’t be fulfilled without the establishment of a geographic hub and a willingness to overcome regional differences.

Founded by Steve Poizner last year to accelerate the growth of a startup entrepreneurial ecosystem in Southern California, The Alliance is building a network of investors, entrepreneurs and universities to provide ballast in the south to the dominance of the Northern California tech industry.

The Alliance estimates that Southern California’s tech community could be one-third the size of Silicon Valley’s by supporting or further developing the six pillars it already has for innovation to occur.

The potential impact making these changes could have is an added 200,000 new jobs and growth of $100 billion for the whole economic region.

“Over the past several years we have observed a significant decrease in startups leaving SoCal,” said Greg Becker, CEO of Silicon Valley Bank . “We’ve also seen a substantial inflow of venture capital from all over the world.”

In fact, as is well-reported, the luster of Silicon Valley is fading. As BCG writes in its report:

The good news for SoCal and any region with tech ambitions is that the Bay Area has in some ways been too successful. Our research revealed a saturation level causing unprecedented challenges, starting with exorbitant housing prices and runaway operating costs that accelerate a startup’s “burn rate”—its monthly spending.

Los Angeles investor Mark Suster, a general partner with Upfront Ventures, has been beating the drum for Los Angeles as a new tech hub for a while — and billion dollar exits for Ring and Dollar Shave Club, in addition to the public offering for Snap, lend credence to his position.

Suster has also noted for years that the region produces more technology doctorates than any other geography in the United States. Caltech generates more patents than any other university while UCLA boasts more startups founded by its graduate than any other school in the nation. Meanwhile, UCSD in San Diego has a deep bench of biotechnology expertise stemming from its proximity to the Sanford Consortium for Regenerative Medicine, the Salk Institute, and the Scripps Research Institute.

However, to thrive, BCG recommends taking six steps to bolster the the ecosystem and its chances to begin to catch up to Silicon Valley.

The consulting firm says that Southern California needs more local venture capital; the individual geographies need to work to promote their regional strengths; regions need to collaborate more closely with each other; founders need to start gunning for that IPO slot instead of taking acquisition offers; the region’s commitment to diversity needs to be emphasized; and finally the embarrassment of entrepreneurial riches needs to be promoted abroad.

“Southern California is a region of extreme innovation; however, it is so spread-out, making it hard to navigate,” said Steve Poizner founder and board chair of the Alliance, in a statement. “We believe by finding, filtering and aggregating exciting startups from top universities, research institutes, and incubators/accelerators, we can demonstrate the combined strength of SoCal in a compelling way to top investors and thought leaders.”

Zuckerberg on #deletefacebook: ‘You know, it’s not good’

Following what felt like years of silence on a plethora of issues, Facebook founder and CEO Mark Zuckerberg has gone on an interview rampage (but not us — was it my editorial?). Although he mainly plugs away at the points he made in today’s blog post, there are a few items worth noting.

Regarding the company’s acceptance at face value that Cambridge Analytica had deleted the data they weren’t supposed to have (to Recode):

At the time it didn’t seem like we needed to go further on that. Given what we know now we clearly should have followed up and we’re never going to make that mistake again.

And what about the thousands of apps that may have performed similar data grabs during the many years it was possible?

The data isn’t on our servers, so it would require us sending out forensic auditors to different apps.

How many apps are we talking about here? (to the New York Times)

It will be in the thousands.

Will the 50 million estimated to be affected by the data collected by Aleksandr Kogan be notified to what extent their data was shared?

Yes. We’re going to tell anyone whose data may have been shared.

Presumably the same will be true for anyone found to be affected by other unsavory apps.

What about the public response? What does he think about #deletefacebook?

I don’t think we’ve seen a meaningful number of people act on that, but, you know, it’s not good.

As for preventing future manipulation of the system during a major election year (not just here but around the world):

In 2017 with the special election in Alabama, we deployed some new A.I. tools to identify fake accounts and false news, and we found a significant number of Macedonian accounts that were trying to spread false news, and were able to eliminate those.

It’s the first time he’s talked about it, apparently. Hopefully they’ll prove as effective during larger campaigns.

Zuckerberg also goes off on some interesting tangents with Wired, for instance the efficacy of AI in certain situations and the status of the Cambridge Analytica audit in the UK. As for whether he’ll appear in front of Congress:

If it is ever the case that I am the most informed person at Facebook in the best position to testify, I will happily do that.

If I had to guess, I’d say that hour fast approaches.

Kyklo is bringing the billion-dollar electromechanical industry into digital sales

The electromechanical industry may not be the kind of sexy tech that you’ll regularly read about in TechCrunch, but we like solutions to problems, and that is why I am about to write about a company in the aforementioned industry. Add in that the startup is based in Asia — Thailand, to be precise — and we have the recipe for a young company to keep an eye on.

Kyklo is the company and it is aimed at bringing the electromechanical space, which is worth over $1 trillion per year across 100,000s of distributors and retailers worldwide, into the digital era. The company operates a service that brings sales channels, inventory and networks online to replace the existing system, which is largely offline.

As of now, for example, if an OEM is selling air conditioning units for a new building development — the industry touches 5-20 percent of every new building via electrical equipment — the process will typically be handled by a reseller who presents a paper-based inventory to the buyer. Kyklo is proposing to take things online by allowing OEMs to lay out their inventory in a web-based shop — like Shopify — which can then be used by the reseller to solicit sales.

The idea may seem elementary, but the benefits go beyond ease of use — a website obviously has plenty of benefits over a physical sales catalog — including increased visibility to the OEM, who previously relied on the reseller for sales data. Resellers themselves also have a more dynamic catalog of products to share with prospective sales leads, which is also designed to feature highly in search engine rankings to help bring in inbound sales leads.

Kyklo began as a Shopify-like solution when it was founded in 2015 by two former employees of Schneider Electric, the $50-billion electric and energy company that is listed in Paris, France. Over the past year, however, the startup refocused into a sales lead and management tool for both OEMs and resellers.

CEO Remi Ducrocq — who started Kyklo with fellow co-founder and CTO Fabien Legouic — told TechCrunch that there was an expectation that simply by launching a store sales leads would land. While Kyklo does optimize search ranking, it works best as an aid for teams by helping coordinate sales leads, giving greater transparency on data — for future sales predictions — making it easy to add new products quickly, and automating much of the process for repeat customers.

Kyklo CEO Remi Ducrocq and CTO Fabien Legouic (left and right) both formerly worked for Schneider Electric

Rather than spending time requests from existing customers with phone calls and emails, resellers can simply provide a link to the catalog and enable customers to handle the re-purchasing process by themselves. That frees up resources to chase new sales and more.

“When we pitch distributors on why they should digitize their sales operations, it is first about how you get your existing customers online. So you shift your business from offline to online and by doing so you’ll get better satisfaction and you’ll be able to saturate your customer base,” Ducrocq said, pointing out that the service has helped some customers add 20 percent more sales from existing customers.

“Considering a distributor has 10 sales guys covering 1,000 customers, the truth is they only spend time with 50 guys who do 80 percent of the orders,” Ducrocq added. “On existing customers, a lot of the work is really admin [so] that’s something you can take off by making it digital.”

Kyklo’s customer base includes Schneider Electric and Thailand-based Interlink, the latter of which told TechCrunch in a statement that it grew revenue from its online business five-fold “in a matter of months” after coming on the Kyklo platform.

The benefit for OEMs is obvious, but initially some resellers were initially unsure of allowing a third-party into the relationship with their supplier (OEM). Kyklo CEO Ducrocq said his company has no interest in entering the reseller space. In fact, it has field agents who accompany resellers to meetings with their major buyers to help them come aboard while it jointly works on data and statistics to help reseller teams target new sales opportunities.

While it is sticking firmly to its position in the sales cycle, the startup does, however, have designs on international expansion. Right now, has customers in seven markets in Asia — Ducrocq is half-French, half-Thai hence the initial location in Bangkok — but already it is casting eyes on the European and North American markets.

U.S.-based Handshake, a B2B sales platform that has raised over $20 million from investors, is perhaps one of the most notable competitors it would come up against, but Kyklo believes its focus on the electromechanical space can help it conquer its niche. The startup is also looking to expand its relationship with existing global customers who it services in Asia to cover new markets that will give it a rolling start to its expansions.

“Right now we’re looking at which two countries we will do in Europe, and where we will go in the U.S.,” Ducrocq said.

In order to aid that expansion, Kyklo has raised funding from investors that include Singapore-based duo SeedPlus and Wavemaker Partners. Ducrocq declined to provide financial details of the round, while he also declined to give financial details on Kyklo’s business.

The company currently has 40 staff in its Bangkok HQ, with a number of remote business development and sales executives. While it plans to increase the number of staff it has outside of Thailand, there is no plan to relocate its main office from Bangkok.

The Kyklo office in Bangkok