Meta's NPE Team Expands Globally with Seed Investments

Meta’s NPE Team Shifts Focus to Global Markets

Meta, the company previously known as Facebook, is restructuring its experimental app division, the NPE team. Launched in the middle of 2019, this group was initially designed to develop consumer applications. The primary goal was to test novel social features and gather user feedback.

Experimentation and Evolution

Throughout the years, the Menlo Park-based team has both launched and discontinued numerous projects. These included applications focused on dating, voice calls, meme creation, and competitive platforms mirroring TikTok, Twitter, and Clubhouse. Additionally, apps tailored for couples were also explored. Now, NPE is adopting a new strategy: identifying the next significant innovation by looking beyond the United States.

To effectively pursue this potential, the organization has recently established an office in Lagos, Nigeria. Plans are also underway to open another location in Asia. Furthermore, the team is modifying its approach to encompass seed-stage investments in small, entrepreneurial ventures.

Seed Investments and AI

An initial investment has already been made. Meta’s recent funding of Inworld AI, an A.I.-powered platform for creating virtual characters, was spearheaded by NPE. However, future investments may extend beyond the metaverse, targeting companies with more immediate potential – such as startups leveraging mobile internet in innovative ways.

Meta recognizes that many widely adopted technologies initially emerged from specialized communities. For instance, WhatsApp gained popularity in regions where SMS messaging was not free before achieving global acceptance. Similarly, mobile money solutions originated from the absence of established payment infrastructure in East Africa.

Seeking Opportunities Outside Silicon Valley

To avoid overlooking future opportunities, Meta’s NPE team is actively looking beyond Silicon Valley for inspiration.

Leadership and Strategy

This new direction is being guided by Ime Archibong, head of Meta’s New Product Experimentation. Archibong has been with Meta for eleven years, with prior experience focused on the Facebook developer platform. This role involved extensive travel to connect with entrepreneurs from both small and large organizations.

“My current role mirrors much of what I did for the previous decade: attracting entrepreneurial talent and small teams, and providing them with the necessary resources – talent, time, and technology – to develop their concepts,” Archibong explained. “The aim is for some of these ideas to evolve into substantial successes.”

Focus on Emerging Markets

The team will concentrate on markets in Asia, Africa, and Latin America, while still considering projects based in the U.S. However, U.S.-based projects may differ from previous efforts. Instead of rapidly launching and abandoning unsuccessful social apps, NPE is currently working on initiatives like a program assisting formerly incarcerated citizens with reintegration into society and another supporting LGBTQ families through the process of parenthood. These projects represent a more substantial undertaking than simply replicating existing platforms.

The expanded focus will prioritize identifying ideas that may begin on a small scale – potentially addressing underserved markets – but possess the capacity for significant growth.

The Potential of Overlooked Regions

“I believe the future will be shaped in regions that have historically been overlooked and underestimated,” Archibong stated. “I firmly believe that the most effective solutions and opportunities will come from individuals who are closest to the communities they serve.” He added that these solutions will be “more resilient, sustainable, and viable” in the long term.

This perspective is supported by historical precedent. However, the question remains whether the global entrepreneurial community will be receptive to investments from Meta, considering its history of adopting ideas from smaller companies.

A History of Adoption and Acquisition

Meta has been widely criticized for replicating features from other platforms, such as Snapchat’s Stories, which became a larger product. The company also created its own versions of Snap’s Bitmoji, Clubhouse, TikTok, Nextdoor, and Substack. Phhhoto, a startup, is currently suing Meta for initially offering a partnership, then developing a competing technology (which became Instagram’s Boomerang). Meta has also acquired potential rivals like Instagram, WhatsApp, and Giphy, as well as emerging companies like tbh and Moves.

While Inworld AI may have been comfortable collaborating with Meta due to aligned missions in VR, other seed-stage startups may be hesitant. Archibong, however, believes there will be sufficient interest from ventures that see value in the partnership.

“I anticipate more opportunities like the one with Inworld AI. Organizations that view us as a mission-aligned partner, excited about similar technology trends or emerging platforms, will be eager to collaborate,” he said.

Investment Scale

The company has not disclosed the total amount of capital it intends to invest or the timeframe for deployment. However, Archibong indicated that the investments – like the teams themselves – will be “very, very small.”