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Google's investment arm has quietly invested in Snapchat (GOOG, GOOGL)

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evan spiegel

Alphabet's investment arm, Google Capital, has quietly made an investment in Snapchat parent company, Snap Inc. 

The investment was only revealed after Google Capital rebranded itself to CapitalG on Friday and added the Snapchat logo to its portfolio page. Business Insider confirmed that it is a portfolio company of the growth equity arm of Alphabet. Snap Inc declined to comment. 

The two companies have had a cozy relationship. In 2013, it was rumored that Google once tried to buy Snapchat for $4 billion after it turned down a Facebook acquisition. To this day, Snapchat remains one of the largest users of Google's cloud infrastructure, although it's recently brought a data center specialist in house

Before it renamed itself to Snap Inc in September, Snapchat had most recently raised $1.81 billion in a May 2016 round of funding. That funding round valued the company around $20 billion. 

 

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NOW WATCH: Here’s everything we know about Snapchat’s new camera sunglasses, Spectacles


Meet the VC firm you've never heard of that just completed 22 deals in 90 days

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Anthony Pompliano

Three months ago, Anthony Pompliano launched Full Tilt Capital with one mission: to build the best early stage fund in the world. 

So far, he can at least claim to be one of the busiest funds. 

Pompliano and his cofounder, Jason Williams, have completed 22 deals in 90 days, a frenetic pace that's unusual in the world of venture capital investing.

Many VC firms complete that many deals over the course of a year, usually because they spend time sifting through hundreds of pitches and doing due diligence on a handful of startups before narrowing it down to those they want to invest in.

Pompliano said that process is unnecessary for the kind of companies that Full Tilt is investing in. 

"The due diligence that most venture capital firms do is on data that is not available because we’re so early," he said.

"There are plenty of investors that I know who do financial modeling and all this planning. But when it’s a person and an idea, what are you going to do? Do a background check on the person? There’s nothing to do other than talking to them and understanding what they want to do and who this person is as a human."

48 hour timetable

Full Tilt's average investment is about $100,000 per company and they've invested in startups ranging from a service that lets you charter a bus for carpooling on demand to one that provides market intelligence for apps. Pompliano said they've looked at about 400 deals since August, and the only deals Full Tilt won't take on are international companies, companies in sectors where he and Williams have very little expertise, and startups that don't have ambitions to be high-growth companies.

Pompliano spent a year as a Facebook product manager, worked on the growth team at Snapchat, founded his own startup, and was a sergeant in the Army. Williams founded a healthcare startup in the early 2000s and runs a rubber waste management company. Now, the pair lives about 20 minutes away from each other in North Carolina. 

jason_tire

"My life goal was definitely not to be an investor," Pompliano says.

The firm is trying to take a new approach to venture capital. Pompliano and Williams signed on several companies before they had ever raised money from limited partners, and they typically spend only 48 hours considering a deal. The only factors they consider are whether they believe in the founders themselves and the potential for their ideas.

A pulse on reality

Full Tilt opts to stay far outside the Silicon Valley bubble — literally on the other side of the country — for a specific reason. 

"I think we’re more grounded," Pompliano said. "I think we have a better pulse on reality when it comes to mass market trends and preferences because we’re outside of those echo chambers. There’s no Sand Hill Road in North Carolina. That’s not a shot at those guys, but there is an element of everyone’s always trying to impress each other."

Full Tilt is often the first investor in a deal, Pompliano said, and in a few cases have been the only investor. He says being the only firm to invest in a startup doesn't bother him.

In fact, he's proud of it. 

"I have no problem telling other venture capitalists, if they’re waiting for social proof of other investors in, they should get out of the business because they have no conviction and no courage," Pompliano said. 

Pompliano thinks the fund is "probably the most active venture fund up to this point," and said Full Tilt has no plans to slow down the pace at which they're doing deals.

"There are investment funds and firms that try to pick the winners," he said. "In our eyes, it’s more about building the companies. As we become more efficient and more decisive, I think that we will only go faster."

SEE ALSO: This ex-Googler's startup is powered by 'emissaries' who provide insight into their former employers

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NOW WATCH: This Lego-style home can be built in a few weeks with just a screwdriver

Facebook is finally getting serious about its ‘Snapchat problem’ (FB)

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Evan Spiegel and Mark Zuckerberg

For the past couple of years, Facebook has done nothing significant about its Snapchat problem.

Sure, Mark Zuckerberg and co. have tried to clone parts of Snapchat with failed apps like Slingshot. But Facebook has never really thrown its full weight behind taking Snapchat head on.

Until now.

During Facebook's quarterly earnings call this past week, Zuckerberg explained that Facebook now sees the camera as the future of how people share and communicate.

"In most social apps today, a text box is still the default way we share," he said. "Soon, we believe a camera will be the main way that we share."

While he didn't name Snapchat specifically on the call, make no mistake: Facebook's full attack on Snapchat has begun.

The camera company

Snapchat Spectacles

As my colleague Biz Carson has explained, Snapchat (or Snap Inc.) recently simplified its company mission statement to be "a camera company."

Snapchat started as an app for sending disappearing messages. Over the years it's managed to shake its sexting label and evolve into a rapidly growing social network with more than 150 million daily active users.

150 million daily users pales in comparison to Facebook's 1.18 billion. But Snapchat represents an existential threat to Facebook because it has managed to redefine how people share through photos and videos. While Facebook has become an essential utility for connecting people, Snapchat has popularized a new way of communicating that's highly visual, ephemeral, and fun.

Goofy selfies and puking rainbows aside, Snapchat is a threat to Facebook on multiple levels. It's increasingly competing for finite advertising budgets that could otherwise be spent on Facebook.  It's beloved by teens and millennials, which is a demographic Facebook is deeply worried about losing and has a team devoted to reaching.

Rainbow puke Lens

If Zuckerberg had his way, Snapchat would be part of Facebook's family of apps, like Instagram and WhatsApp. He tried to buy Snapchat in 2013 for around $3 billion, but now the company is planning an IPO that could value it as high as $40 billion.

If it's too late for Facebook to own Snapchat, then it's going to do the next best thing: copy it.

The new Facebook camera

Facebook's new camera redesign

Facebook is currently testing a redesign of its main app in Ireland that puts a Snapchat-like camera interface front and center alongside the News Feed. You're encouraged to use the camera to send goofy selfies to friends that disappear after 24 hours.

During Facebook's most recent earnings call, Zuckerberg said that the redesign will become available globally "hopefully sooner rather than later." He also said that Instagram Stories (a direct ripoff of Snapchat's Story functionality), is already used by 100 million people every day.

That's nearly 70% of Snapchat's entire user base.

Facebook is also testing clones of Snapchat in Messengerand WhatsApp that will likely be made available more widely in the future.

While Facebook probably won't be able to convince the majority of Snapchat users to quit the app, it could seriously slow Snapchat's growth by replicating key features for billions of people to use. That's the advantage Facebook has over every incumbent: unrivaled scale.

Now it's a matter of whether that scale will be enough to win.

SEE ALSO: Mark Zuckerberg just explained how close Messenger and WhatsApp are to making money

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NOW WATCH: Here’s everything we know about Snapchat’s new camera sunglasses, Spectacles

Snapchat invented a nifty way to charge its new smart glasses

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Snapchat Spectacles

When Google released its Google Glass, it looked like a computer strapped onto some glasses, charging port and all. 

The new Spectacles, made by Snapchat parent company Snap Inc., are intended to be the opposite: cool, sleek, and fashionable without a trace of the computers powering them. Pulling that off though is no easy task. 

Patents published on Nov. 1 give us a small peek at what's likely under the hood of Snap's Spectacles. While the patents don't address the Spectacles by name and are simply covering "smart glasses", the drawings of the charging case are a close match to photos released by the company of the Spectacles. Snap Inc. declined to comment on this story. 

To conceal the computer hidden in the glasses, Snap Inc devised a way to only expose the charging port when the arms of the glasses are folded back. 

Snapchat spectacles charger

Since it's only exposed when folded, you can't tell it has a charger when you wear them out.

Given most glasses are only folded when they're not in use or sitting in a case, Snap's inventions capitalize on that downtime by charging the glasses. The carrying case also doubles as a charging station. When the glasses are folded and placed in the case, the newly exposed ports connect to the case's internal charger — no extra wires required. 

spectacle_charging_case_patents

 

The charging case will still need to be charged on its own, but Snap Inc. told the Verge that its carrying case should last through four full charges of the Spectacles. For those lucky few who will be able to get their hands on the limited edition, charging will be more of an after-thought than a worrying barrier to use, exactly how Snap designed it.

SEE ALSO: Google's investment arm has quietly invested in Snapchat

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NOW WATCH: Here’s everything we know about Snapchat’s new camera sunglasses, Spectacles

Snapchat will turn you into Hillary Clinton ahead of Election Day

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Portable Network Graphics image FE330B0ED468 1

If you use Snapchat on Monday, you'll be able to morph into none other than presidential candidate Hillary Clinton — pantsuit and all.

Ads for Clinton in Snapchat include an "I'm with her" national geofilter and an animated selfie lens. The geofilter was paid for by the Clinton campaign while the lens was paid for by the Democratic super PAC Priorities USA Action.

To use the lens, tap and hold on your face in Snapchat and swipe right. The lens will overlay one of Clinton's signature pantsuits and hairdo over you with a message like "Vote for her tomorrow."

Snapchat has more than 60 million daily users in the U.S. and commands a high price for ads in its app, with sponsored lenses costing upwards of $750,000 per day, according to media reports.

The Donald Trump campaign will run its own sponsored geofilter in Snapchat on Election Day. A Snapchat spokesperson confirmed that the app allows only one sponsored national geofilter per day and that the slot is given on a first-come, first-served basis.

Here's a GIF of the Hillary Clinton selfie lens in action:

SEE ALSO: Facebook is finally getting serious about its ‘Snapchat problem'

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NOW WATCH: How to make your own personalized Snapchat geofilter

Snapchat chases the app-install space

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BII Mobile App Install

This story was delivered to BI Intelligence "Digital Media Briefing" subscribers. To learn more and subscribe, please click here.

Snapchat is edging closer to one of mobile advertising’s biggest categories — app-install ads — in a move that is sure to boost the company’s bottom line, Ad Age reports

Mobile app-install ads are an essential tool for developers to promote their apps. These ads direct users to download specific mobile apps, helping them stand out among the more than 4 million apps in Google Play and the App Store.

Because of this, app-install ads make up a substantial share of mobile ad spend — accounting for 25% of total US mobile ad revenue in 2015, according to our estimates.

Competing in the app-install market is a must if Snapchat wants to be an internet titan. The company is working on a several products on this front, including a self-serve ad product for marketers to set up their own campaigns, enabling them to bypass Snapchat’s ad partners or the company’s sales team. It's also testing support for app-install ads in its Snap API so that these campaigns can be more easily managed.

But Snapchat still has a long way to go before it catches up to its rivals. Google reached 3 billion app installs in August, up from 2 billion in May. Facebook, the early frontrunner in this space, announced its app-install ad business had driven 2 billion installs in April 2016.

Cutting through the noise of an overcrowded app market is critical for any app developer looking to build a viable user base. There are now well over 3 million apps available across the world’s five largest app stores. Delivering the right product to the right audience at the right time in this environment is imperative to the success of any app.

The challenge of marketing an app effectively has made app-install ads — an ad unit that directs users to download a mobile app — an essential tool for developers seeking to stand out in the Google Play and Apple app stores. This is why it's not surprising that more marketers are using paid channels to drive downloads than ever before. In fact, over 80% of respondents in a survey of the top 100 grossing mobile app developers noted they plan on increasing their spend on app-install ads in 2015.

BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile app-install ads that looks at the revenues from app-install ads and how they're expected to grow over the next five years. It also looks at the performance of app-install ads and how these metrics are expected to change over time.

Furthermore, the report examines the top app-install ad products and pricing models offered by the leading advertising platforms, including Facebook, Twitter, Yahoo, and Google, as well as newer app-install formats from Instagram and Snapchat. Looking to the future, the report examines how companies are shifting their app-install ad spend to new formats, as well as the new tools they're using to improve optimization and ad effectiveness.

Here are some key takeaways from the report:

  • Mobile app-install ads — ad units that direct users to download a mobile app — are an essential tool for developers, and they account for a major share of mobile ad spend. We estimate 25% of total US mobile ad revenue was generated by app-install ads in 2015.
  • A combination of new developers entering the space and rising ad budgets will drive increased spending in years to come. US app-install ad revenue will grow to over $7 billion by year-end 2020, according to BI Intelligence estimates.
  • Mobile app install advertisers have traditionally invested heavily in display and interstitial ads, but are moving to mobile video and native install formats. 86% of developers currently use in-feed video app-install ads, and video ads are seen as the most effective app-install format.
  • As formats like video rise in popularity, older formats are losing their appeal for install campaigns. Static nonnative ads are widely used but are not seen as effective. Free app networks and offer walls have also fallen out of favor.
  • Ad platforms are now developing innovative new install formats to earn even more revenue from these lucrative ad units. New approaches, including deep linking and app streaming, are more contextualized and interactive than older ad formats.

In full, the report:

  • Forecasts app-install ad spending in the US through 2020.
  • Explores which app-install ad formats developers believe are most effective.
  • Discusses what the most popular platforms and ad networks are doing to attract ad spending.
  • Investigates new tools for marketing apps, including deep linking and app streaming.

To get your copy of this invaluable guide, choose one of these options:

  1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of mobile app-install ads.

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Snapchat's latest update reveals its grand strategy

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Snapchat World Lense

Snapchat's ambition is to be much more than just the app you use to send goofy selfies. It wants to be a leader in augmented reality, the futuristic tech that could one day replace our phone screens with graphics overlaid onto the real world.

Snapchat laid the groundwork for its next big push into AR in an update to its app on Tuesday. The update adds special filters for the phone's rear camera that Snapchat calls "World Lenses."

These lenses work similarly to Snapchat's existing selfie lenses, which can turn you into everything from a puppy dog to Hillary Clinton.

snapchat lenses

Where World Lenses differ in a key way is that they don't just track someone's face, but instead overlay 3D effects all over your surroundings. For example, one World Lense in Snapchat places smiling clouds above you that puke rainbows when you point your camera up at them.

While the effect is obviously silly and playful, this kind of AR, or as some companies have started calling "mixed reality," is being seriously worked on by highly valued startups like Magic Leap and entrenched players like Apple and Microsoft. The tech is what many big players in the tech industry consider to be the next major computing platform, with the potential to replace all screens by projecting the digital world onto the real one.

Augmented reality is a big reason why Snapchat recently rebranded to Snap Inc. the "camera company"and is about to start selling a pair of camera-equipped sunglasses called Spectacles.

snapchat snap spectacles

Snap, which is currently preparing to IPO at a valuation as high as $40 billion, has filed for patents that provide a look into how it could monetize AR. The Los Angeles based startup is working on advanced object recognition that can serve ads, promotions, and other information over physical objects seen through a camera.

Its upcoming Spectacles eyeglasses — which now have a Bluetooth pairing option in the Snapchat app as of this latest update — only record video that can be shared on Snapchat. But it's easy to imagine Spectacles and any other camera the company is working on one day using AR in a myriad of interesting ways.

SEE ALSO: What it’s like to work at Snapchat, one of the most secretive companies in tech

Join the conversation about this story »

NOW WATCH: Here’s everything we know about Snapchat’s new camera sunglasses, Spectacles

Snapchat will sell its Spectacles camera glasses through pop-up vending machines

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Snapbot

Snapchat parent company Snap Inc. has revealed how it will sell its camera-equipped, $130 Spectacles glasses: through pop-up vending machines called Snapbots that appear in "surprising" locations for one day only.

To find where the machines will be, Snap has introduced an online map that lets you see their location 24 hours in advance. The first pop-up will be on Thursday in Venice Beach, California, where the company is headquartered.

Each Snapbot vending machine will have motion sensors that turn on its circular screen when someone steps into view. The screen will show footage of video recordings from the eyewear, which can record 10-second clips that sync with the Snapchat app.

Three buttons that correspond to the three colors (coral, black, and teal) Spectacles sell in will let you virtually try on each color on the screen before you pay.

The company previously said that Spectacles would be sold in "limited distribution" this fall. AdWeek says these vending machines "will represent Spectacles' only retail distribution for months."

Here's a promo video for the Snapbot machines:

SEE ALSO: Everything you need to know about Snapchat's Spectacles glasses, including how to buy them

Join the conversation about this story »

NOW WATCH: Here’s everything we know about Snapchat’s new camera sunglasses, Spectacles


Facebook makes its biggest move yet against Snapchat (FB)

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Facebook Snapchat DAUThis story was delivered to BI Intelligence "Digital Media Briefing" subscribers. To learn more and subscribe, please click here.

Facebook has launched a stand-alone Snapchat clone designed specifically for emerging markets, Recode reports.

The app, called Flash, lets users share ephemeral photos and videos with masks and filters. It uses less than 25MB of phone space, or about one-third the space that Snapchat’s Android app takes up. Flash launched on Android in Brazil late Tuesday, and Facebook plans to bring the product to other markets.

Facebook is trying to stunt Snapchat’s growth in all directions:

  • Making Facebook more camera-centric. The company is making the camera the central aspect of its main platform to discourage users from using Snapchat. This is in line with CEO Mark Zuckerberg’s belief that the “text box” will soon give way to the “camera” as the main way users share on social platforms.
  • Cutting Snapchat’s global growth short. Facebook is also setting up Snapchat clones where the ephemeral messaging pioneer doesn’t have a strong presence. In addition to Flash, Facebook recently debuted Messenger Day in Poland, and its Instagram Stories feature is flourishing in Russia where Snapchat adoption is low.  

There are a few reasons why Facebook’s strategy could work:

  • Snapchat has a feebler footprint overseas. Of Snapchat’s 150 million daily active users, 60 million are in the US and Canada, and 50 million are in Europe — this means just one quarter of its users are from the rest of the world. The company is also lagging in Asia. It doesn’t have any offices in the region listed on its website, though it is hiring freelancers in South Korea and Japan.
  • Facebook’s global presence is comparatively massive. More than 60% of Facebook’s almost 1.2 billion daily users are outside of North America and Europe, and its user base continues to grow at a rapid pace in these regions. In Q3 2016, daily users climbed 23% year-over-year (YoY) in the Asia-Pacific region, and 22% YoY in all regions outside of Europe and North America.  
  • Facebook is also primed for success in emerging markets. Internet.org, Facebook's initiative to bring internet access to the two-thirds of the world without internet, has connected 40 million people since launching in August 2013. Efforts like Internet.org help give Facebook an ascendant position in emerging markets, making it more likely to dominate in the platform wars to come.

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Instagram is adding more features to take on Snapchat

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Portable Network Graphics image 6A5D18396C45 1

Instagram continues to take on Snapchat by adding more features to its own Stories feature, which 100 million people use every day.

The Facebook-owned app added three more features on Thursday to compete with Snapchat, including the ability to @ mention people in Stories, include web links, and more.

Instagram's update comes just days after Snapchat added the ability to rewind while watching Stories in its app — a feature that Instagram added first.

SEE ALSO: Facebook is finally getting serious about its ‘Snapchat problem’

Verified Instagram accounts will be able to add web links to their Stories. You'll swipe up on the screen to open the link that's associated with a photo or video.

Instagram Stories product manager Nathan Sharp told Business Insider that adding link support was in response to what his team saw that users wanted from the app.

“We see this behavior organically across stories, and we notice people want to share stuff that’s not captured in a photo or video," he said.

While only verified accounts get access to this particular feature for now, Sharp said normal accounts could one day get access as well if the test goes well.



You can "@" someone or a place on Instagram in Stories. Tapping your @ mention will take viewers to the person's profile.



Instagram's Boomerang app is now integrated into Stories to let you share fun GIFs.



See the rest of the story at Business Insider

Snapchat will sell its new camera glasses through pop-up vending machines

Everything you need to know about Snapchat's Spectacles glasses, including how to buy them

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Snap Spectacles

In case you haven't heard, Snapchat now sells camera-equipped sunglasses called Spectacles.

The glasses, which record video to be shared through the Snapchat app, were first announced in September and officially went on sale Thursday.

Spectacles cost $130 and are initially being sold only through pop-up vending machines across the U.S.

Snapchat has been secretly working on these glasses for years, dating back to its acquisition of a small startup called Vergence Labs in 2014.

Here's everything you need to know about how Spectacles work and how to buy them:

SEE ALSO: Snapchat's latest update reveals its grand strategy

Spectacles cost $130 and come in three colors: black, teal, and coral.



They record 10-second video clips with a 115-degree-angle lens, which is supposed to mimic how the human eye sees through a circular field of view.

RAW Embed

Snap CEO Evan Spiegel recounted a hiking trip he took while wearing the glasses to The Journal:

"I could see my own memory, through my own eyes—it was unbelievable. It’s one thing to see images of an experience you had, but it’s another thing to have an experience of the experience. It was the closest I’d ever come to feeling like I was there again.”



Videos you take with Spectacles are sent to the Memories section of the Snapchat app. From there you can edit clips and send them to friends or your story.

RAW Embed

Spectacles sync footage with the Snapchat app over Bluetooth. To sync HD video, you have to sync via a connected WiFi network.

You can use Spectacles while unpaired from your phone. When you get back into pairing range, footage will sync into Memories.



See the rest of the story at Business Insider

People are already reselling Snapchat's Spectacles for hundreds of dollars

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Snapbot Spectacles

Snapchat's Spectacles glasses haven't been on sale for 24 hours yet, but people are already reselling them online for hundreds of dollars. 

Postings on eBay Thursday list Spectacles for up to $900— well above the eyewear's $130 retail price.

Snapchat parent company Snap Inc. started selling Spectacles out of a surprise vending machine near its headquarters in Venice Beach on Thursday. The company plans to introduce more pop-up vending machines throughout the U.S. in coming weeks.

Snap has said that it will have very limited supplies of Spectacles initially, and demand for the camera-equipped frames is clearly high. Around 3:30 p.m. ET on Thursday, Snap representatives told people in line that the company is already sold out of Spectacles. Actor Andy Milonakis was apparently able to get a pair, dropping into line and allegedly snagging them from someone in line for $500.

Here are some more listings for Snap's Spectacles on eBay:

Screen Shot 2016 11 10 at 3.22.01 PM

SEE ALSO: Everything you need to know about Snapchat's Spectacles glasses, including how to buy them

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NOW WATCH: Snapchat will sell its new camera glasses through pop-up vending machines

This is what it's like to buy Snapchat's new Spectacles glasses

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Snapbot Spectacles

Snapchat knows how to make a splash, and it proved it on Thursday with the debut of its camera-equipped Spectacles sunglasses.

A smiling, yellow vending machine with balloons strapped to the top appeared unexpectedly in Venice Beach on Thursday morning, and crowds of people quickly queued up to buy the limited-edition $130 glasses. 

Snap Inc, the new corporate name that Snapchat recently adopted, paid lots of attention to the details for its first consumer electronics product. From the futuristic vending machine, which the company has already restocked with extra inventory, to the packaging of the glasses, the experience of buying Spectacles is clearly meant to be fun and different. 

Here's what it's like to pick up a pair of Spectacles in person:

SEE ALSO: Everything you need to know about Snapchat's Spectacles glasses, including how to buy them

Snap will be selling its Spectacles through special pop-up vending machines called "Snapbots", which look a lot like the yellow "minions".



The company will be updating a map online about 24 hours in advance so you can see where the next Spectacles-dispensing Snapbot will be.



The first-ever Snapbot landed in Venice beach on Thursday morning. The bright yellow machine with balloons attached is sitting in a parking lot across the street from Snapchat's first office, right on Venice beach.

 



See the rest of the story at Business Insider

You can use Snapchat to see what you'd look like wearing Spectacles

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Snapchat spectacles filter


Snapchat's famous filters normally transform users into deer or put a ring of flowers around their head. 

Now, Snapchat is using them to do something else: let people try on its Spectacles. 

A new filter in the app lets people see what the three shades of glasses and the frames would look like on their face. 

Snapcode SpectaclesBut there's a secret: you have to unlock the filter by scanning a special Snapcode from the Spectacles website with your camera in Snapchat. 

It then opens a window asking if you want to download the special lens for the next 24 hours.

For now, the special Snapchat filter is the only way you can try on the glasses before you buy them. Even the Spectacles' vending machine, named the Snapbot, uses an AR filter to show what you look like in them before you buy.

The limited-edition camera-sunglasses have already sold out on their first day — and they're going to be hard to come by since the vending machine that sells them will move around every 24 hours.

Trying them on in Snapchat will be the closest most people come to trying out the smart sunglasses before they're widely available.

SEE ALSO: Everything you need to know about Snapchat's Spectacles glasses, including how to buy them

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NOW WATCH: Snapchat will sell its new camera glasses through pop-up vending machines


Snapchat just moved its Spectacles vending machine to a new location in Northern California

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If you're trying to buy Snapchat's new Spectacles glasses, you now have to trek to Northern California to do it.

The company's new camera-equipped glasses are now for sale in pop-up vending machines that Snap Inc. — the new corporate name Snapchat recently adopted — is placing in "surprising" locations. The first vending machine showed up in Venice Beach on Thursday morning. 

Now, Snap has moved it to a new location: Loma Vista, California.

Screen Shot 2016 11 13 at 12.30.59 PM

Snap shows the location of the vending machine on a map on the Spectacles website. The machine has been placed in a small town near Big Sur, an area that appears to be accessible by going through an expansive state park called Pfeiffer Big Sur. Screen Shot 2016 11 13 at 12.39.18 PM

But anyone trying to buy a pair of the glasses will have to act fast. The glasses first went on sale Thursday morning, and by that afternoon, Snap representatives told people in line that the company had already sold out of Spectacles. That afternoon, people began listing them on eBay for hundreds of dollars. One seller had them listed for $900, far more than the retail price of $130. 

The glasses, which record video that can be shared through the Snapchat app, were first announced in September and are the company's first foray into hardware products. 

SEE ALSO: Everything you need to know about Snapchat's Spectacles glasses, including how to buy them

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NOW WATCH: Snapchat will sell its new camera glasses through pop-up vending machines

Snapchat is doing everything it can to avoid the creepy nerdiness of Google Glass

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Screen Shot 2016 11 11 at 7.41.19 PM

The last thing Snap Inc. wants is for its new Spectacles to become the next Google Glass.

Google released Glass in 2013 to much fanfare in the tech industry. Some thought the head-mounted display, which projected information like phone notifications and the weather over a glasses lense, would usher in the future of augmented reality computing.

That didn't happen. Google Glass was a complete flop. Those who wore them were called "Glassholes." Google never iterated past a $1,500 developer prototype, and quietly killed the project two years later.

google glass

A pair of Spectacles is like the anti-Glass.

For starters, there's no fancy augmented reality tech that displays visual information on top of the glasses as you wear them. People close to Snap say that kind of technology is part of the company's future roadmap, but it's a long way off.

Instead, Spectacles are ultra-simple and designed to look like a quirky pair of Ray-Bans. They record 10-second clips of video that get sent straight to the Snapchat app. They only cost $130.

This simplicity is very much by design, and it's why Snap CEO Evan Spiegel called Spectacles a "toy" when they were first announced. 

Snap employees are terrified of Spectacles being perceived in the same kind of creepy, nerdy way that Google Glass was, according to someone familiar with their thinking. It's why that Spectacles light up around the camera while recording — to help people feel like they're not being constantly monitored.

And it's why Spectacles are marketed like this:

Snapchat Spectacles

And not like this:

marc andreessen is blown away by google glass oh my god i have the entire internet in my vision

Snapchat is already beloved by young people. By selling Spectacles through bright yellow vending machines that pop up in one city for 24 hours and then disappear (like messages in the app), Snap is setting itself up its glasses as a cool, exclusive status symbol out of the gate.

And by all indications the approach is working.

While the glasses have so far only been on sale for in Venice Beach and Big Sur, early reviewsare overwhelmingly positive. Pairs of Spectacles are reselling for thousands of dollars on eBay. People are frantically tweeting about where to find the next vending machine pop-up.

It's still too early to tell if Spectacles will be a success, but they already have the cool factor that Glass never had. And as long as Robert Scoble doesn't wear them in the shower, they have a shot at staying cool.

SEE ALSO: Everything you need to know about Snapchat's Spectacles glasses, including how to buy them

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Snapchat has filed for an IPO that could value the company at $25 billion

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Evan Spiegel

Snapchat parent company Snap Inc. has quietly filed paperwork for an initial public offering, setting the wheels in motion for what's expected to be the largest tech debut in years.

Snap, which is based in Venice Beach, California, confidentially filed its paperwork with the Securities and Exchange Commission before the presidential election, a person familiar with the matter told Business Insider.

Snap's IPO could come as early as March, but could also occur in the second quarter of 2017, the person said. The company is seeking a valuation of $20 billion to $25 billion.

Some people expect the offering could be even larger. Bloomberg has reported that Snap's IPO valuation could swell as high as $40 billion.

Morgan Stanley and Goldman Sachs will lead the deal, while JPMorgan, Deutsche Bank, Allen & Co., Barclays, and Credit Suisse will be joint bookrunners.

Revenue engine

Snapchat has emerged as one of the most popular consumer internet services, challenging Facebook, Twitter and Google for users and advertising dollars. With the tech IPO market stuck in the doldrums over the past year, investors are hoping Snap's offering could open the gates to more IPOs, including closely watched tech companies like Uber.

Snap has told investors that it expects to make between $250 million and $350 million in advertising revenue this year. A recent eMarketer report predicted the company would near $1 billion in revenue in 2017 — meaning an IPO that valued the company at $25 billion would be 25 times its projected revenue numbers.

It's not clear whether Snap is profitable, however, and the company is aggressively expanding into new businesses and markets that are likely to eat into margins.

Snap's main business is advertising in the Snapchat app, which has over 150 million daily users. But Snap recently rebranded itself as a camera company and started selling $130 camera-equipped sunglasses called Spectacles.

The company last raised $1.81 billion in private funding in May, which pegged its valuation at between $18 billion and $22 billion.

With annual revenue under $1 billion now, Snap was able to file its Form S-1 with the SEC confidentially under the JOBS Act. News of the filing was first reported by Reuters on Tuesday.

A Snap spokesperson declined to comment when reached by Business Insider.

Know anything more about Snap's IPO filing or plans? This author can be discreetly reached via email at aheath@businessinsider.com or via "@alexeheath" on Telegram.

SEE ALSO: If you think it's crazy that Snapchat might go public at a $40 billion valuation, here's something to consider

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Evan Spiegel vs Mark Zuckerberg will be a tech battle for the ages — like Jobs vs Gates

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jobs spectacles

Apple founder Steve Jobs and Microsoft founder Bill Gates had a complicated relationship.

They started their companies around the same time, and had a lot of similar ideas. Both believed normal people would want personal computers. Both saw the potential of the research conducted by Xerox's research lab, which invented the graphical user interface and the mouse. Both had tremendous egos and sharp tongues.

But Jobs had few kind words for his rival. Jealousy over Microsoft's success in the 1990s probably played a part, but there was also a fundamental difference in temperament. Jobs considered himself an artist, and valued design and user experience above pure technology. He understood the power of well-designed marketing — something a lot of engineers scorn. He knew engineering and technology, but was an aesthete first.

Gates was an inventor, an engineer, and a relentlessly brilliant businessperson. But Jobs thought Gates was a boring person with "no taste," who "never invented anything" and "shamelessly ripped off other people's ideas," as he said in variousinterviews.

Fast forward to today, and there's an almost identical battle brewing between the two companies poised to dominate social media: Facebook and Snapchat.

Where's the fun?

Facebook is the unstoppable giant of social media, like Microsoft with the personal computer. Nearly two billion people use it every month.

Mark Zuckerberg has an engineer's soul, and his most underrated success is creating a culture at Facebook where engineers have a lot of freedom and responsibility — they're allowed to experiment, move fast and break things.

Zuckerberg is also a clever businessperson, snapping up would-be competitors like Instagram and WhatsApp (he tried to buy Snapchat but Spiegel rebuffed him). He has also made the right technical pivots — his second most-underrated decision was backing Facebook's mobile strategy away from the doomed HTML5 "standard" and toward dedicated mobile apps before it was too late. He also made measured plays for adjacent markets, like messaging and virtual reality.

But Facebook isn't very fun. 

People use Facebook because everybody else uses Facebook. It's the default way to stay in touch with far-flung friends and relatives.

But when's the last time it delighted you, or even made you smile? It's a utility — like Windows was in 1998. 

Snapchat on the other hand, is all about fun. 

Some serious grown-up tech people like me may look at Snapchat and think, "Disappearing pictures with silly filters on them? Who cares?"

But my kids love Snapchat because it's not too serious. There's no pressure to impress your friends with cool pictures and a lot of engagement, like there is on Instagram. There's no pressure to show off how fabulous your life is. It's just silly, ephemeral, fun.

Snapchat founder Evan Spiegel's true genius shows through in the way he's rolled out the company's camera-glasses, Spectacles. While there was an initial planned story on the product, there was no big press event — no dog and pony show. No review units sent to favored tech journalists. Not even a press release.

Instead, the company built a silly-looking vending machine and dropped it into the street near its Venice, CA headquarters, right outside Snapchat's first beach-front office. 

Look at this: Balloons. A big eye. Bright colors.

This is fun! Like Steve Jobs product keynotes used to be fun.

Snapbot

And people lined up around the block for them.

The next logical marketing-department-tested move would've been to drop the vending machine in some tech hipster center, like the Mission district in San Francisco or Williamsburg in Brooklyn.

Instead, the Spectacles vending machine showed up in one of the most beautiful, natural places in the world, Big Sur, halfway up the California coast between LA to San Francisco. People had to drive hundreds of miles to get them:

Next up...no, not San Francisco or New York. Instead, the vending machine showed up in front of a giant wooden whale on a lake near Tulsa, Oklahoma. Once again, people lined up to buy them:

A perfect combination of unpredictability and fun. Now everybody's scanning the Snapbot map every day for the chance to line up and pay $130 for a pair of sunglasses that takes digital images to share with their friends.

When's the last time anybody lined up for anything from Facebook?

True to history, Facebook is even beginning to carbon-copy Snapchat features. It has built Snapchat-like features at least a half dozen times. Most recently, Zuckerberg apparently told employees that "the camera is the composer"— just as Snapchat turned itself into Snap, Inc., and rebranded itself to "the camera company."

The analogy isn't perfect — Snapchat started after Facebook was well established, while Microsoft and Apple started together, and it's doubtful Snapchat will ever have to turn to Facebook for emergency funding as Apple did to Microsoft, especially since Facebook's biggest rival, Google, is now an investor. (As my analogy gets more and more tortured, I suppose Google could be IBM?)

But regardless of how it ends, Spiegel vs Zuckerberg is shaping up to be a tech battle for the ages.

SEE ALSO: If you think it's crazy that Snapchat might go public at a $40 billion valuation, here's something to consider

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Here are all the places Snapchat’s glasses have been sold — and where they could pop up next

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Over the last week, Snapchat's Spectacles vending machine has been cropping up in new places throughout the US. Called the Snapbot, the machine has been dispensing the glasses for lucky buyers in three locations — so far. 

While the first two locations were somewhat obvious choices, the third has left people scratching their heads.

 

So where has Snapbot been so far, and where is it headed next? Here's the breakdown. 

1. Venice Beach, California 

Venice was the site of Snapbot's first touch-down. The bright yellow vending machine — with balloons attached — was placed on a sidewalk outside a blue house that served as Snapchat's — now known as Snap Inc. — first office. 

The machine is designed to look like a smiling face and "wakes up" and opens its eye as people pass by. The big eye on the front uses the same face lens technology that's in the app, so you can get a preview of what you'd look like with the glasses on. There are three buttons on the front for the three colors available: coral, teal, and black. 

Each pair costs $130 and while people in Venice could initially buy two pairs per person, but people used multiple credit cards to buy more than two pairs. Now, you can only buy one per person. According to TechCrunch, people in line estimated the Snapbot has about 200 pairs inside. 

2. Big Sur, California

After its first stop in Venice Beach, the Snapbot moved to Loma Vista, California, a settlement in sparsely populated part of the coastline known as Big Sur. 

This was the second location significant to Snap's history. A piece by the Wall Street Journal's Seth Stevenson chronicles Snap CEO Evan Spiegel's trip to the area with his fiancée Miranda Kerr.

"It was our first vacation, and we went to Big Sur for a day or two," Spiegel told the Journal. "We were walking through the woods, stepping over logs, looking up at the beautiful trees. And when I got the footage back and watched it, I could see my own memory, through my own eyes — it was unbelievable. It’s one thing to see images of an experience you had, but it’s another thing to have an experience of the experience. It was the closest I’d ever come to feeling like I was there again."

 3. Catoosa, Oklahoma

Snapbot ended up in Catoosa, Oklahoma, on Tuesday morning. The vending machine was placed right next to a huge sculpture of a blue whale in a pond, a popular roadside attraction in Oklahoma. 

The third location seems to break the convention of the first two — a place significant to Snap's history — and made it clear that the company isn't targeting major urban centers for the bots. 

Where will Spectacles go next?

Snapchat

There are a lot of theories about the location of future Spectacles drops based on important company history, where the company has seller's permits, and places Spiegel has visited in the past. 

One thing is very likely though: the Spectacles are coming East. 

It's unlikely at this point that the company would backtrack to other West Coast states, and it seems like Snapchat is trying to avoid a typical tech launch or cater to the Silicon Valley crowd. In all likelihood, Snapchat will continue its tour of the Midwest, possibly heading North to a new latitude (Catoosa and Venice are on the same latitudinal line). 

VRScout confirmed Snap has valid re-sale permits for Snapchat’s Bot in the states of Nevada, Texas, Washington and Hawaii. Business Insider later independently confirmed that Snap has a permit for New York as well. But Snap is probably lining up permits in all 50 states — if it hasn't already. 

Our best guess for where it's headed next? A location that's not just about buying camera-enabled glasses. Snap is focused on something else besides sales here — it seems intent on creating an experience around getting to the bots, as well as having an experience while you're there. All three locations have a lot more to offer than a vending machine selling a tech product.

Which, after all, jibes with the goal of Spectacles in the first place: to capture experiences and share them with the world.

SEE ALSO: Snapchat has filed for an IPO that could value the company at $25 billion

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