Google Play Commission Cut: Developers Benefit from 50% Reduction

Tech News Roundup: March 16, 2021

Updates regarding Google Play revenue policies, new Instagram safety measures for younger users, and an analysis of global venture funding distribution are highlighted in today’s Daily Crunch.

Google Play Commission Changes

Google Play is reducing its commission rate on the first $1 million in developer earnings. This follows a similar adjustment implemented by Apple previously.

Unlike Apple’s model, this revised fee structure applies universally to all developers. The standard 30% commission will be reinstated for revenue exceeding the initial $1 million threshold.

According to Google’s Sameer Samat, feedback from developers earning substantial revenue – ranging from $2 million to $10 million annually – indicated continued progress towards financial stability. Consequently, the reduced rate is being extended to all developers utilizing the Play billing system, irrespective of their size.

Updates from Tech Giants

Instagram is introducing enhanced teen safety tools amidst growing competition with TikTok. These new features aim to limit interactions between adult users and teenagers who haven't initiated a follow request.

Google’s Soli radar technology, previously featured in the Pixel phone, is being reintroduced to monitor sleep patterns on the latest Nest Hub device.

Reports suggest that Chinese authorities are seeking to dismantle Alibaba’s extensive media holdings, mirroring the scale of Jeff Bezos’ media portfolio in the United States.

Funding and Venture Capital Activity

Socure has secured $100 million in funding, achieving a valuation of $1.3 billion. This investment underscores the increasing importance of identity verification solutions.

Overwolf has raised $52.5 million to support its platform for creating, distributing, and monetizing user-generated content within games. The platform currently boasts 30,000 creators, 90,000 modifications and add-ons, and 18 million monthly active users across numerous games.

SafeGraph has obtained $45 million in funding with the goal of becoming the leading provider of location data. CEO Auren Hoffman emphasizes that his company is among the few offering this data directly to data science teams.

Extra Crunch Insights

A significant disparity exists in the global distribution of venture financing. While Latin America, Europe, and several Asian countries have experienced growth in fintech and overall VC activity, the funding landscape remains uneven.

The Non-Fungible Token (NFT) market is still in its early stages of development, and its future trajectory is currently being explored.

Farmland is emerging as a potentially lucrative asset class, attracting investment from marketplace startups like AcreTrader, Tillable, FarmTogether, and Harvest Returns.

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Additional News

Ford is expanding its robotics research with a $75 million investment in a new facility at the University of Michigan. This will involve the placement of 100 Ford researchers and engineers on the University of Michigan’s Ann Arbor campus.

Sean Lane, whose company achieved unicorn status, shares insights on achieving product-market fit, highlighting the often-challenging journey of iterating through numerous product iterations.

Tech leaders are offering feedback on pitch decks through Extra Crunch Live, emphasizing the critical importance of a compelling pitch.

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