HiHello raises $2.5 million to finally fix contact management

HiHello, the latest startup to take aim at business cards with its own digital alternative, has raised a $2.5 million seed round to continue its efforts in building a better contact management solution designed for the mobile era. The new financing was led by August Capital, K9 Ventures and TenOneTen Ventures, and will see Villi Iltchev from August Capital joining the HiHello board as a result.

The round closed last year, but hadn’t been announced.

The now six-month-old startup was dreamed up by K9 Ventures founder Manu Kumar, along with co-founder and Caltech and Columbia alum Hari Ravi. Notably, Kumar has been trying to solve the problem of contact management for years, having co-founded and sold his startup CardMunch to LinkedIn — a decision he later regretted, saying last year he was “still peeved” at LinkedIn for ruining and eventually killing the product. (LinkedIn later pawned off its ashes to Evernote.)

With HiHello, Kumar is giving contact management and business networking another shot. Version 1 of the app offered a simple solution that lets users exchange contact information by way of scanning a QR code with their phone’s native camera app, or by sharing information using SMS or email. The mobile app lets you create custom profiles in order to share with another person either your work contact information, personal details or any other custom profiles you want.

As HiHello enters its next phase, the company aims to pick up some of the better ideas from past apps in this space — like Plaxo, Bump and even CardMunch — while also overcoming their limitations.

For example, Bump had once required that both people have the app installed in order to work. HiHello today already works if only one person has the app. But it will roll out a more elegant solution for when two HiHello users are present. A “Nearby” screen in the app will allow people to share contact information with one another based on a dual opt-in system.

From Plaxo, HiHello will adopt the idea of automatically updating contact information for everyone who has the user in their address book when information is changed.

The startup is taking a different approach to privacy than Plaxo did, saying it won’t spam or sell user data, nor will it ask permission to access your contacts. Instead, HiHello will act as an address book provider whose database of contacts you can add to your device. This keeps it isolated and separate from other address sources, and ensures it won’t “mess up” your own contacts in the process.

“There will be a base level of features that are available for free, but our goal is to build a sustainable (and profitable) company that delivers value to customers,” says Kumar. “The full functionality will come with paid subscription to HiHello. We’re never going to sell users data or rely on advertising and such. We’re not ready to talk about pricing and other details just yet, as we’re still in build mode.”

Kumar says he doesn’t want to make the same mistake he did with CardMunch. Instead, he wants the company to be sustainable, “so that we never have to sell HiHello to an acquirer who will then proceed to ruin the service and kill it.”

Yep, that LinkedIn deal still stings, it seems… Hopefully HiHello will meet a better fate.

Instagram’s fundraiser stickers could lure credit card numbers

Mark Zuckerberg recently revealed that commerce is a huge part of the 2019 road map for Facebook’s family of apps. But before people can easily buy things from Instagram etc., Facebook needs their credit card info on file. That’s a potentially lucrative side effect of Instagram’s plan to launch a Fundraiser sticker in 2019. Facebook’s own Donate buttons have raised $1 billion, and bringing them to Instagram’s 1 billion users could do a lot of good while furthering Facebook’s commerce strategy.

New code and imagery dug out of Instagram’s Android app reveals how the Fundraiser stickers will allow you to search for nonprofits and add a Donate button for them to your Instagram Story. After you’ve donated to something once, Instagram could offer instant checkout on stuff you want to buy using the same payment details.

Back in 2013 when Facebook launched its Donate button, I suggested that it could add a “remove credit card after checkout” option to its fundraisers if it wanted to make it clear that the feature was purely altruistic. Facebook never did that. You still need to go into your payment settings or click through the See Receipt option after donating and then edit your account settings to remove your credit card. We’ll see if Instagram is any different. We’ve also asked whether Instagrammers will be able to raise money for personal causes, which would make it more of a competitor to GoFundMe — which has sadly become the social safety net for many facing healthcare crises.

Facebook mentioned at its Communities Summit earlier this month that it’d be building Instagram Fundraiser stickers, but the announcement was largely overshadowed by the company’s reveal of new Groups features. This week, TechCrunch tipster Ishan Agarwal found code in the Instagram Android app detailing how users will be able search for nonprofits or browse collections of Suggested charities and ones they follow. They can then overlay a Donate button sticker on their Instagram Story that their followers can click through to contribute.

We then asked reverse-engineering specialist Jane Manchun Wong to take a look, and she was able to generate the screenshots seen above that show a green heart icon for the Fundraiser sticker plus the nonprofit search engine. A Facebook spokespeople tells me that “We are in early stages and working hard to bring this experience to our community . . . Instagram is all about bringing you closer to the people and things you love, and a big part of that is showing support for and bringing awareness to meaningful communities and causes. Later this year, people will be able to raise money and help support nonprofits that are important to them through a donation sticker in Instagram Stories. We’re excited to bring this experience to our community and will share more updates in the coming months.”

Zuckerberg said during the Q4 2018 earnings call last month that “In Instagram, one of the areas I’m most excited about this year is commerce and shopping . . . there’s also a very big opportunity in basically enabling the transactions and making it so that the buying experience is good.” Streamlining those transactions through saved payment details means more people will complete their purchase rather than abandoning their cart. Facebook CFO David Wehner noted on the call that “Continuing to build good advertising products for our e-commerce clients on the advertising side will be a more important contributor to revenue in the foreseeable future.” Even though Facebook isn’t charging a fee on transactions, powering higher commerce conversion rates convinces merchants to buy more ads on the platform.

With all the talk of envy spiraling, phone addiction, bullying and political propaganda, enabling donations is at least one way Instagram can prove it’s beneficial to the world. Snapchat lacks formal charity features, and Twitter appears to have ended its experiment allowing nonprofits to tweet donate buttons. Despite all the flack Facebook rightfully takes, the company has shown a strong track record with philanthropy that mirrors Zuckerberg’s own $47 billion commitment through the Chan Zuckerberg Initiative. And if having some relatively benign secondary business benefit speeds companies toward assisting nonprofits, that’s a trade-off we should be willing to embrace.