Startups

Ben Horowitz backs rapper Ryan Leslie’s SMS commerce startup Superphone

Comment

Image Credits:

Ryan Leslie gave every fan his phone number. It’s (646) 887-6978. But instead of a million unwanted phone calls, it’s making him money and giving him deeper intelligence about his listeners than anyone in the music business.

That’s why A16z’s Ben Horowitz, Betaworks, and more investors just put a $1.5 million seed round into Leslie’s startup Disruptive Multimedia. It’s turning the SMS-based CRM and direct sales tool called Superphone that Leslie coded himself into a product any celebrity or creator can use to galvanize and monetize their audience.

“We’re building a way for artists to own their relationship with their fans,” Leslie tells me. Beyond his own hip-hop and R&B recordings, Leslie rose to fame producing for artists like Snoop Dogg, Cassie and Usher. “What I started to find was that social networks were anti-social networks,” the musician says.

With platforms like Facebook and Twitter proving unreliable ways to reach fans, and the mobile generation sidestepping email, Superphone builds a bond on the most powerful piece of contact information: the phone number.

Screen Shot 2016-03-07 at 10.37.04 AM

There’s now 2700 Superphone private beta clients across verticals, including musicians like Lil Wayne and Kevin Jonas as well as authors like Bonin Bough. For a fee based on how many text messages they send plus a 5 percent tax on e-commerce payments, they know exactly who each of their fans are, how much they’ve spent, and can send them personalized messages and sales offers.

Leslie says “I think there’s a crazy correlation between how often you contact your customers and how much you earn from your customers.”

Call ’em on my Superphone

Here’s how Superphone works. Celebrities and other clients can distribute a special phone number connected to their Superphone account. Any time a fan calls or texts it, or buys something on one of their online stores and fills out a form, they get a welcome message prompting them to provide some personal info. That could include location, biographical info, or any data type the client wants to segment their audience by.

Superphone creates a next-generation phone book that’s actually more of a customer relationship management tool. For now it’s a web tool but the Superphone team hopes to have native apps available in the next few weeks. The Superphone dashboard lets clients view charts and graphs of who is paying for what so they can hone in on their most important fans.

Superhpone Dashboard

Via Twilio’s SMS service, clients can send marketing and sales messages to any cross-section of their fans. That could be everyone for a new album release or a simple thank you, ones that live in a certain city to promote a concert, or only ones who’ve spent over $100 for a special event invite or exclusive VIP opportunity. Those messages can include Shopify or other sales links where fans can store credit card info or instantly make purchases.

Turning conversations into customers

Leslie now has 40,000 fans in his Superphonebook. When he booked an extravagant New Year’s Eve concert at a castle in Vienna, he was able to invite his highest-paying fans in Europe to attend. He sold 200 tickets at $1,700 a pop in 48 hours — all through Superphone. Meanwhile, he has a “lifetime album” where people pledge to pay $1 to $100 each time he releases a song so they’re the first to hear it.

BLACK-MOZART_cover_sm_034655da-091b-49a1-a3ae-3753e9cfc1aa_1024x1024
Ryan Leslie

Not too shabby for a product Leslie built v1 of two years after working though Codeacademy’s tutorials. Thanks to a glowing recommendation from Bevel’s Tristan Walker, Leslie connected with famed investor and lifelong hip-hop enthusiast Ben Horowitz who agreed to lead his seed round. Now that $1.5 million has closed with participation from a long list of funds and angels

[MOOR & MOOR AB, Betaworks, Anxa Holding, Donald Katz, Keith Smith, Linda Bernard, Anthony G. Aguila, Base LV Tech, Judge Ventures, Kofi Kankam, Nnemdi Kamanu Elias, Robert T. Melvin, Ryan Babel, Shanti Kandasamy, BPG Fund, Jennifer Byrne, Radiary Creations, LLC, Taj Clayton, RPM, Sherrese Clark-Soares, Mychal Kendricks, Williams Anderson Investments, Monami Entertainment, Galvanize Ventures, and Transmedia Ventures.]

Next, Leslie will be hiring out the development team. He says “the long-term vision is to take AI and machine learning and add that intelligence layer on top of any messaging platform because it’s the conversations I think are the most valuable.”

While everyone else buys ads, plays nice with the press, and, blasts out social media trying to reach fans, Superphone lets creators simply talk to the directly like they would any of their friends.

More TechCrunch

OpenAI is removing one of the voices used by ChatGPT after users found that it sounded similar to Scarlett Johansson, the company announced on Monday. The voice, called Sky, is…

OpenAI to remove ChatGPT’s Scarlett Johansson-like voice

Consumer demand for the latest AI technology is heating up. The launch of OpenAI’s latest flagship model, GPT-4o, has now driven the company’s biggest-ever spike in revenue on mobile, despite…

ChatGPT’s mobile app revenue saw biggest spike yet following GPT-4o launch

Dating app maker Bumble has acquired Geneva, an online platform built around forming real-world groups and clubs. The company said that the deal is designed to help it expand its…

Bumble buys community building app Geneva to expand further into friendships

CyberArk — one of the army of larger security companies founded out of Israel — is acquiring Venafi, a specialist in machine identity, for $1.54 billion. 

CyberArk snaps up Venafi for $1.54B to ramp up in machine-to-machine security

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

23 hours ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

3 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

3 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK