With $6M in seed funding, Enso plans to bring AI agents to SMBs

Enso products including email, recruiting and screening, newsletters, media relations and others

Image Credits: Enso

Running a small business means doing more with less. AI agents can help, but building custom agents for specific workflows remains challenging, even with today’s low-code/no-code tools. The idea behind Enso — which came out of stealth by announcing a $6 million seed funding round Tuesday — is to give small and medium-sized businesses (SMBs) access to a wide range of preprogrammed AI agents that can handle repetitive tasks.

Founded by Mickey Haslavsky, the co-founder of API development platform RapidAPI, Enso offers industry-specific agents that promise to help customers do anything from managing their search engine optimization efforts to engaging with their Instagram followers, tracking competitors, writing newsletters, managing invoices and optimizing their Amazon stores. Enso pretrains and customizes these agents for about 70 different industries, from accountants to car dealerships, offering more than 1,000 bots in total.

Image Credits: Enso

Haslavsky told TechCrunch that his inspiration for Enso came from his parents, who ran a small music production company and a secondary school. He pointed out that, similar to his earlier venture RapidAPI, Enso is also fundamentally centered around integrations.

“When I started getting into this AI agent space, I realized that, one, if that works, it can bridge the gap [between small and large businesses] because it can be serviceable, because it can give services to smaller businesses on top of other software, and that’s where the integrations come in,” he said. “Second, I realized it doesn’t work. Because you try AI agents today, they’re pretty broken. Three, I realized that, from a business perspective this is just huge, because most of the services that can now be automated cost — as an alternative, if you’re going to an agency — $1,000 a month.”

A lot of the bots that Enso currently offers aim to combine the predictability of traditional workflow automation services, which are dependable but need step-by-step scripting, with the creativity of large language models (LLMs). Haslavsky explained that these bots tend to follow a set sequence of tasks to run a business’ Instagram account, for example. The LLM handles the copy and design, but that workflow is predefined and there is also a traditional scheduler, for example.

Image Credits: Enso

Often, that involves calling on multiple services. Enso offers a podcast agent, for example, that can automatically script podcasts and that then uses ElevenLabs for the text-to-speech part, a music service for the intro and outro, as well as a video service for creating a visual version.

One thing that’s different here is that Enso is taking an à la carte approach where access to every agent costs somewhere between $29 to $79 per month. Haslavsky told me that he decided on this model because most SMBs are constrained on budget and because he wanted to make it extremely easy to buy for them.

The question, of course, is how well those bots work in a real-world scenario — and whether businesses are even willing to turn over some of these functions to AI agents. Typically, there is a human in the loop for things like the podcast and newsletter agents, for example, but if the results are just middling and involve a lot of work to polish them into a product that a business owner would be willing to publish, then a $59+/month subscription (or even multiple subscriptions) may be hard to justify. It might be an easier sell for agents that create reports or manage the SEO voodoo that helps businesses rank better on Google — nobody expects authenticity from those, after all.

In the future, Enso may also offer a marketplace for third-party agents. The team is currently working on low-code/no-code visual tools for building those — but for now they are still focused on the foundational integrations to make that happen.

The company’s $6 million seed round was led by NFX, with participation from a number of angel investors, including Yossi Matias, the head of Google Research, and Shmil Levy, a former GP at Sequoia Capital.

“Small businesses are the backbone of our economy, yet they have passed by the AI revolution,” said Gigi Levy-Weiss, partner at NFX Ventures. “While larger businesses speed by leveraging AI to maximize productivity gains, small businesses struggle to perform the most basic of administrative tasks. Enso is one of the first companies recognizing this need and putting enterprise-grade AI in the hands of emerging companies, democratizing AI by providing access and scalability. We are thrilled to support Enso as it transforms the business landscape and empowers traditional businesses to thrive.”

With $6M in seed funding, Enso plans to bring AI agents to SMBs

Enso products including email, recruiting and screening, newsletters, media relations and others

Image Credits: Enso

Running a small business means doing more with less. AI agents can help, but building custom agents for specific workflows remains challenging, even with today’s low-code/no-code tools. The idea behind Enso — which came out of stealth by announcing a $6 million seed funding round Tuesday — is to give small and medium-sized businesses (SMBs) access to a wide range of preprogrammed AI agents that can handle repetitive tasks.

Founded by Mickey Haslavsky, the co-founder of API development platform RapidAPI, Enso offers industry-specific agents that promise to help customers do anything from managing their search engine optimization efforts to engaging with their Instagram followers, tracking competitors, writing newsletters, managing invoices and optimizing their Amazon stores. Enso pretrains and customizes these agents for about 70 different industries, from accountants to car dealerships, offering more than 1,000 bots in total.

Image Credits: Enso

Haslavsky told TechCrunch that his inspiration for Enso came from his parents, who ran a small music production company and a secondary school. He pointed out that, similar to his earlier venture RapidAPI, Enso is also fundamentally centered around integrations.

“When I started getting into this AI agent space, I realized that, one, if that works, it can bridge the gap [between small and large businesses] because it can be serviceable, because it can give services to smaller businesses on top of other software, and that’s where the integrations come in,” he said. “Second, I realized it doesn’t work. Because you try AI agents today, they’re pretty broken. Three, I realized that, from a business perspective this is just huge, because most of the services that can now be automated cost — as an alternative, if you’re going to an agency — $1,000 a month.”

A lot of the bots that Enso currently offers aim to combine the predictability of traditional workflow automation services, which are dependable but need step-by-step scripting, with the creativity of large language models (LLMs). Haslavsky explained that these bots tend to follow a set sequence of tasks to run a business’ Instagram account, for example. The LLM handles the copy and design, but that workflow is predefined and there is also a traditional scheduler, for example.

Image Credits: Enso

Often, that involves calling on multiple services. Enso offers a podcast agent, for example, that can automatically script podcasts and that then uses ElevenLabs for the text-to-speech part, a music service for the intro and outro, as well as a video service for creating a visual version.

One thing that’s different here is that Enso is taking an à la carte approach where access to every agent costs somewhere between $29 to $79 per month. Haslavsky told me that he decided on this model because most SMBs are constrained on budget and because he wanted to make it extremely easy to buy for them.

The question, of course, is how well those bots work in a real-world scenario — and whether businesses are even willing to turn over some of these functions to AI agents. Typically, there is a human in the loop for things like the podcast and newsletter agents, for example, but if the results are just middling and involve a lot of work to polish them into a product that a business owner would be willing to publish, then a $59+/month subscription (or even multiple subscriptions) may be hard to justify. It might be an easier sell for agents that create reports or manage the SEO voodoo that helps businesses rank better on Google — nobody expects authenticity from those, after all.

In the future, Enso may also offer a marketplace for third-party agents. The team is currently working on low-code/no-code visual tools for building those — but for now they are still focused on the foundational integrations to make that happen.

The company’s $6 million seed round was led by NFX, with participation from a number of angel investors, including Yossi Matias, the head of Google Research, and Shmil Levy, a former GP at Sequoia Capital.

“Small businesses are the backbone of our economy, yet they have passed by the AI revolution,” said Gigi Levy-Weiss, partner at NFX Ventures. “While larger businesses speed by leveraging AI to maximize productivity gains, small businesses struggle to perform the most basic of administrative tasks. Enso is one of the first companies recognizing this need and putting enterprise-grade AI in the hands of emerging companies, democratizing AI by providing access and scalability. We are thrilled to support Enso as it transforms the business landscape and empowers traditional businesses to thrive.”

Gen Z investing app Alinea raises $3.4M, plans to launch an 'AI copilot'

Image Credits: Alinea Invest

Alinea Invest, a fintech app offering AI-powered wealth management aimed at Gen Z women, has $3.4 million in seed funding ahead of the launch of a virtual AI assistant that will help users with their investing needs. The fundraising comes on the heels of 225,000 downloads of Alinea’s app, leading to a revenue run rate of $1.8 million, allowing the New York area startup’s six-person team to operate profitably.

Founded amid the COVID-19 pandemic, Alinea was created by co-founders Anam Lakhani and Eve Halimi, as well as CTO Daniel Nissenbaum who met at Barnard College and Columbia University. Lakhani and Halimi, now co-CEOs, had interned on Wall Street but faced a similar pain point when it came to money: They didn’t know how to best invest. This idea led to the creation of a business plan for an app while taking an entrepreneurship class at school. Later, the founders headed into full-time jobs in investment banking and at a growth-stage startup when COVID hit.

The pandemic ultimately freed up more time for the team to work on their app, so they applied to startup accelerator Y Combinator in 2021 and got in.

“The pain point we saw is that people like us who are young women, Gen Zs, children of immigrants, they have no idea where to start. Financial literacy is a massive pain point across the United States,” notes Lakhani. “We wanted to build an alternate platform that was really personalized, taught you how to build your wealth, and did it for you.”

Eve Halimi in orange and Anam Lakhani. Image Credits:: Alinea Invest

The app, which is described as a “Wealthfront meets Robinhood,” is built with a Gen Z audience in mind. That includes a heavy focus on an approachable design to make investing seem less intimidating. The goal is to attract users as they’re just leaving college and entering the workforce or getting their first paychecks, then helping them to automate their portfolio. This differentiates Alinea from other female-focused fintechs, like Ellevest.

Many users start with Alinea’s automated investing model, but later take advantage of the option to buy and sell stocks as they become more sophisticated investors.

However, unlike Robinhood and some others, Alinea operates on a subscription business model that costs a flat $120 per year.

Another differentiator for Alinea are its “playlists.” These let users build their own direct indexes — in a way that’s somewhat akin to curating music on Spotify. Today, Alinea investors have customized their own ETFs around themes like climate change, female leadership, AI, fashion, and even abortion rights. Daily, users create thousands of playlists, and these can also be shared with others.

Image Credits: Alinea Invest

The company so far has been successful at acquiring users through content marketing, particularly on TikTok, where the founders talk about investing and their startup journey. To date, their following has led to over 100 million views across their hashtags on the short video platform, the founders told TechCrunch.

With the seed round of $3.4 million, Alinea wants to move farther into the AI market with the launch of an AI financial adviser. While the app is already leveraging a combination of AI and expert advisers to make stock recommendations, the new feature, due out later this year, will offer an interactive way to ask for investing help.

The AI helper will be tacked onto a new subscription.

“There will be an additional upscale tier, essentially, where it will be like a sort of AI copilot — an AI financial adviser that will answer all your questions . . . that are very personalized to you,” notes Halimi.

The AI will consider a variety of factors when answering questions, including the user’s age, risk tolerance, past track record, and more. The team expects to launch the feature around Q2 or Q3 this year, they said.

Though competition is rife in the fintech space, Alinea believes they can capture a particular demographic — the younger, Gen Z investor, and largely women (80% of the app’s users are women). The average Alinea investor makes $80,000 per year and is around 22 to 24 years old.

The new funding was led by F7 Ventures and GFR and included Worklife Ventures (Bri Kimmel), FoundersX Fund, Gaingels, and Dropbox co-founder Arash Ferdowsi. Alinea had previously raised a $2.3 million pre-seed round from Goodwater, Kima Ventures, Harvard, Diaspora, and ex-Robinhood employees. The founders have not added to the board with the new capital, but rather plan to invest in further product development, including the AI copilot, personalization, and other educational initiatives.

“Financial literacy and investing is a crucial path to wealth and financial stability for women and Gen Z,” said Kelly Graziadei, F7 general partner. “We are proud to invest in Eve and Anam as they build AI-powered investing with Alinea — making it easier and more accessible than ever for people to invest according to their interests and values. We can’t think of a better team to open up the path to a new generation of wealth creation,” she added.

TikTok logo on a building

Universal Music Group plans to pull song catalog from TikTok

TikTok logo on a building

Image Credits: Patrick T. Fallon/AFP / Getty Images

Universal Music Group (UMG), the label representing artists such as Taylor Swift, Billie Eilish and Ariana Grande, says that it’ll pull its music from TikTok tomorrow at midnight after failing to reach a deal with the platform’s parent company, ByteDance, over royalties.

UMG won’t seek to renew its current arrangement with TikTok, set to expire on January 31, and plans to cease licensing content to both TikTok and its music-focused service, TikTok Music.

In a press release, UMG accused TikTok — which reportedly made close to $20 billion in ad revenue last year — of trying to build a “music-based business without paying fair value for [artists’] music.”

“TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay,” the label wrote. “Today, as an indication of how little TikTok compensates artists and songwriters, despite its massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content, TikTok accounts for only about 1% of our total revenue.”

TikTok didn’t immediately respond to a request for comment. But later in the evening, a spokesperson emailed this statement:

“It’s sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters. Despite Universal’s false narrative and rhetoric, the fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent. TikTok has been able to reach ‘artist-first’ agreements with every other label and publisher. Clearly, Universal’s self-serving actions are not in the best interests of artists, songwriters and fans.”

The way UMG tells it in the press release, TikTok and it didn’t see eye to eye on payments for AI-generated recordings using UMG properties. In addition, TikTok wasn’t taking appropriate steps to swiftly remove content in violation of the label’s copyright, UMG says.

“Ultimately TikTok is trying to build a music-based business, without paying fair value for the music,” UMG wrote.

UMG’s current contract with TikTok dates back to 2021 and covers recorded music from artists at UMG’s labels and songwriters associated with Universal Music Publishing Group. As a part of the deal, UMG and TikTok agreed to experiment with new features, like allowing users to incorporate clips from UMG’s full catalog of music spanning Bad Bunny, SZA, Drake, Kendrick Lamar, Harry Styles, Justin Bieber, Adele, U2 and Elton John.

The fallout with UMG comes as TikTok leans more heavily into music creation and curation.

The platform is positioning TikTok Music, which launched last year in select countries, as a serious Spotify and Apple Music rival. Meanwhile, TikTok is piloting an “AI Song” feature that uses AI to create songs based on prompts that users enter.

While TikTok has shown a willingness to engage with certain labels on terms it finds favorable — the platform was reportedly in talks with Warner Music Group, Sony Music Entertainment and UMG “all year” in 2022 and 2023 for a share of its ad revenues — it hasn’t been shy about throwing its weight around where it sees fit. Last February, TikTok removed major record company music from its service for a subset of users in Australia in an apparent test to see how user engagement would be impacted.

Recently, TikTok has sought to ink exclusive distribution deals with musicians for ByteDance’s SoundOn service, which distributes directly to TikTok and music streaming services. It’s also launched a program called Elevate, designed to identify the next wave of rising artists in the music industry.

Hester Peirce, commissioner of the U.S. Securities and Exchange Commission at Georgetown University’s McDonough School of Business 2024

SEC’s Hester Peirce still plans to push for a token ‘safe harbor’ plan

Hester Peirce, commissioner of the U.S. Securities and Exchange Commission at Georgetown University’s McDonough School of Business 2024

Image Credits: Crescite Innovation Corporation (opens in a new window)

The work of creating crypto- and investor-friendly legal frameworks in the United States continues. Thankfully for the web3 community, they have friends in high places.

It’s been almost three years since Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), released her updated Token Safe Harbor Proposal 2.0.

While the proposal hasn’t made headway in its prior forms, the commissioner is not giving up. “I think we would definitely need a 3.0 version if the government wants to keep crypto innovation alive in the U.S.,” she said during an exclusive fireside chat with TechCrunch at Georgetown University’s McDonough School of Business.

“There’s room for something to address the legitimate concerns that crypto-skeptics have, while addressing the legitimate concerns of innovators,” Peirce added.

The proposal’s previous versions aimed to “answer the question a lot of people had” surrounding the issuance of tokens, Peirce said. She explained that she built an earlier iteration of the concept after the initial coin offering (ICO) boom of 2017, when a lot of startups launched their own tokens, and there was “not a lot of disclosure around them.”

The safe harbor plan aimed to provide initial development teams with a three-year grace period during which they could participate in and create a decentralized network and be exempt from “registration provisions of the federal securities laws so long as certain conditions are met,” according to a GitHub document.

Peirce’s proposal aimed to require people to make disclosures for the initial period when they were selling tokens. From there, the idea was that “if the blockchain was really decentralized, so that no one had any more information [i.e., insider information] than anyone else, the disclosures wouldn’t be necessary anymore because all the information would be out there and available to anyone.”

While the commissioner said she hasn’t laid out the details for 3.0 yet, she is open to people tossing ideas her way. “I welcome ideas not only on the Token Safe Harbor, but more generally — if the SEC were to wake up tomorrow and say, ‘We want to take a more productive approach,’ what would ideas look like [and] where would we need to spend our time?”

It’s unreasonable to expect a new token project to have the same kind of disclosures and legal understanding as a company that’s been around for 15 years and is doing an IPO, Peirce thinks. “There’s just a real mismatch between the expectations that some people would like to put on these token projects and the reality,” Peirce said. “The result is, we end up in the worst of both worlds: We don’t get any disclosure and we get companies moving outside the U.S.”

Crypto’s developer ecosystem is continuing to expand globally, with 74% of developers outside of North America, according to Maria Shen, general partner at Electric Capital. As a result, the share of U.S. blockchain active developers declined to 24% last year, down from 40% in 2017, and fell 5% from the previous year, according to the firm’s 2023 developer report.

The US is losing crypto talent as blockchain devs seek safer havens

“I think the message that has been sent is that it’s really complicated to do business in the U.S.,” Peirce said. “So a lot of people are looking elsewhere or looking to just do something different, and I think that’s problematic.”

If there aren’t clear rules, it makes it harder for both startups and regulators to sort through what’s good versus bad “by the book,” she added.

“People spend a lot of time spinning their wheels thinking about regulation, which they could spend thinking about what real things could be done with the technology,” Peirce said.

She joked that it would be “very optimistic” to assume there’s a “new day dawning at the SEC” after the agency approved 11 spot bitcoin ETF issuers last month. But on the flip side, she added, “We need to be ready to go when that day happens.”

This story was inspired by an episode of TechCrunch’s podcast Chain Reaction. Subscribe to Chain Reaction on Apple Podcasts, Spotify or your favorite pod platform to hear more stories and tips from the entrepreneurs building today’s most innovative companies.

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How a French health insurance unicorn plans to leverage AI to reach profitability

Image Credits: Alan

Alan’s meteoric rise in the French tech ecosystem has been both figurative and literal. A few years ago, the startup’s office was limited to one floor in a nondescript office building near the Canal Saint-Martin in Paris.

Over time, the company added another floor, then another floor — now the company of 550 employees also occupies the top floor of the building. It’s a common area with a kitchen in a corner and a beautiful view of Paris’ typical gray zinc rooftops.

This morning, Alan’s co-founder and CEO Jean-Charles Samuelian-Werve and its chief revenue officer, Ludovic Bauplé, held a press conference with a group of reporters. Some of them cover tech startups, while others focus on the insurance industry. It’s an unusual mix of reporters but that’s because Alan is an unusual company.

The company originally started with a health insurance product that complements the national healthcare system in France. French companies must provide a health insurance product to all their employees when they join. Today, over 500,000 people are covered by Alan’s insurance product.

Image Credits: Romain Dillet / TechCrunch

But Alan is also a tech company that has raised quite a few funding rounds. With its most recent €183 million Series E funding round ($196 million at today’s exchange rate), the company reached a valuation of €2.7 billion ($2.9 billion).

Alan has integrated and automated as many things as possible for its core product, the insurance part. It has also expanded to other services so that its app can be a sort of a one-stop shop for all things related to your health.

After years of explosive growth, the French tech ecosystem has slowed down with funding drying up and many companies looking for a quick exit — unless you’re working for a generative AI company. As Alan is one of the biggest private tech companies in France, it’s interesting to keep a close eye on the company to understand how it sees the future.

Still $63 million in losses in 2023

Despite 39% of revenue growth in 2023 compared to 2022, Alan is still losing quite a bit of money. In 2023 alone, the company reported $63 million in losses (€59 million).

But things are improving. Last year, 5,000 companies became new clients. In France, Alan is no longer the hip health insurance company for tech startups, as new clients include Celio, Duracell, Mantu, and Clinitex, as well as the employees of France’s National Assembly.

Alan also operates in Belgium and Spain. And the difference is quite clear in Spain, for instance, as Alan names N26, Cabify and Eventbrite as new clients in the country — in other words, tech companies with local teams in Spain.

“Profitability is a core topic for us. Our goal has been to reach profitability in 2025 for France. And we are confirming it once again,” Bauplé said. As for other markets, the company says that it expects to be profitable as a whole in 2026.

“Our cash position is more than €180 million. Our solvency ratio is now 450%, which is well above the minimum requirement and twice the market average,” Bauplé added.

Image Credits: Romain Dillet / TechCrunch

Does it mean that Alan is done with funding rounds? This part is a bit unclear, as it has become much harder to raise late-stage rounds at high valuations. Things could change. And of course, never say never.

“We don’t need to raise a new round to stay on plan and maintain this growth rate until we reach profitability,” Samuelian-Werve said later in the conversation. “At the same time, we’ve received unsolicited offers from investors in the past . . . we’ll continue to look at them, but today that’s not really our strategy.”

Growing revenue, not costs

Alan’s path to profitability includes growing the company’s bottom line without necessarily growing much as a team. Right now, Alan has a gross margin of 10% after deducting all health reimbursements. But if you include all expenses, the net margin becomes negative at –17%.

In 2024, Alan expects to grow its revenue by 40%. But the company only plans to hire 30 people — a modest 5% increase in its workforce.

That’s because Alan’s service has been designed to scale well without necessarily adding more people. It’s a self-serve app and service. Reimbursements are automated as much as possible with optical character recognition, a fraud engine that has been developed in-house, automated bank transfers, etc.

Preventive care in the app is also a big part of Alan’s offering with a focus on eight different topics ranging from mental health to back pain. This part is mostly handled by a library of videos and 80 health professionals who partner with Alan to answer questions via a messaging interface.

Alan also says that artificial intelligence is going to be key when it comes to scaling. Like with many customer support teams today, some of the interactions between Alan’s customers and its team are optimized by artificial intelligence.

But all teams leverage artificial intelligence in one way or another. Alan CEO Samuelian-Werve told me that every employee is now 40% more productive.

They get meeting reports much faster thanks to automatic transcriptions and LLM-powered summaries. They use Dust to query AI assistants with the team’s data. Developers can iterate faster thanks to AI copilots.

Samuelian-Werve also happens to be a non-executive co-founder and board member of Mistral AI, France’s much talked about foundational model maker. In fact, Mistral AI’s office is located in the same building as Alan’s office.

While it’s harder to raise massive funding rounds in France, artificial intelligence might appear as an alternative to ever-growing teams at Big Tech companies like Alan.

That might not work for every tech company, as Alan’s internal culture is quite peculiar. Everything is written down and fully transparent with regular check-ins from teammates. Nevertheless, it’s a pragmatical example of the real-world impact of artificial intelligence on the financial outlook of a tech company at the growth stage.

Alan's office rooftop
Alan’s office rooftop. Image Credits: Alan

Embat team

Spain's Embat, which has raised $16M, plans to compete with Trovata in real-time accounting

Embat team

Image Credits: Embat

For obvious reasons, financial teams can spend a great deal of time on corporate treasury management, accounting and bank reconciliation, so anything that speeds up that process usually garners a lot of interest.

Today Embat, a Spanish fintech which does what they call “real-time treasury management,” has closed a financing round of $16 million Series A led by Creandum. Also participating was Spanish VC Samaipata, 4Founders and Venture Friends in Greece.

Angels investing in the round included Kilian Thalhammer (head of Deutsche Bank) and Martin Blessing (former CEO of Commerzbank).

Co-founders Antonio Berga, Carlos Serrano (both former JP Morgan executives) and Tomás Gil started the company in 2021 to digitize and automate process for finance teams. Their solution automates accounting and bank reconciliation, and deals with corporate treasury management, centralizing collections, payments and treasury processes, thus saving time, says the startup.

It claims to have 150 corporate clients across Europe, including Playtomic, Cabify, Wallapop and Fever. Last year Embat partnered with Google Cloud’s Vertex AI platform in an effort to reduce errors for accounting teams.

Tomás Gil, co-founder and CTO of Embat, said the company has “significantly improved” its accounting and bank reconciliation module and was now applying AI to its platform.

However, its competitors include Kyriba and Sage XRT. But a startup it competes with in the U.S. is Trovata, which has raised $57.6 million to date and is now post-Series B.

The solution has been bought by National Australia Bank and J.P. Morgan.

Co-founder Antonio Berga said he would not comment on competitors but did tell me: “From a broad perspective we are driven by APIs versus traditional protocols like SWIFT. This allows clients to connect globally and it saves a lot of money. Secondly, we do automated cash accounting, so all the treasury, without doing this manually in the ERP.”

X (formerly Twitter) logo on a cracked wall

X confirms plans for NSFW Communities

X (formerly Twitter) logo on a cracked wall

Image Credits: TechCrunch

A day after researchers surfaced X’s plans to test NSFW adult communities on the platform formerly known as Twitter, the company confirmed that Community admins can now set an “Adult Content” label in their settings to avoid having their communities’ content auto-filtered. Otherwise, all NSFW content will be soon filtered across X’s Communities by default. Communities are X’s smaller groups with their own feeds outside of the main timeline.

The changes appear to confirm the earlier tests of NSFW communities spotted by various researchers and reverse engineers, and point to a social network that will now more directly embrace the adult content that has always been present on the platform.

NSFW (not safe for work) content plays a major role on X, which has been a primary advertising venue for sex workers as well as home to a large amount of adult content-focused bots and spam. According to internal documents obtained by Reuters in 2022, roughly 13% of all Twitter posts included NSFW content, like nude and explicit photos, videos and other pornography. What’s more, the documents indicated that adult content was one of the fastest-growing genres on the platform, even as news and sports were declining.

New York Intelligencer also recently detailed the rise of spam bots on the service now known as X, which promoted NSFW content with links in their profiles, or bios, leading them to regularly reply to posts with messages like “nudes in bio,” “pics in bio” and other more explicit terms.

Now included in a long list of updates to X’s Communities is the confirmation that NSFW-focused communities will be allowed to designate themselves as such to keep from having their content filtered automatically, as in other Communities.

The changes, posted on X by an engineer, were reshared by Musk, who commented, “Many upgrades to X Communities!”

Communities are something that owner Elon Musk and CEO Linda Yaccarino promoted during an all-hands last fall as being key to X’s growth plans.

According to a transcript acquired by The Verge, Musk explained that the Communities product was growing fast but “there’s a lot of work to do to make Communities compelling.” He also shared that X was seeing “rapid percentage growth” in Communities, and had been adding new features, like the ability to include any X account’s feed in the Community feed. For example, a video game-focused community may want to include the X accounts of notable video game reviewers or commentators, he said. The X executives had not shared any plans for NSFW Communities at that time.

If X were able to make Communities a successful product, it could potentially serve as a competitor to larger forum sites like Reddit and host training data for Musk’s xAI-run chatbot Grok, which has exclusive access to X content.

Alongside the news that Community admins could now label themselves as including adult content, X will also introduce a Ban button alongside Keep and Hide buttons on the Reported posts page along with more detailed messages explaining why you’re not eligible to join a given Community, plus temporary and permanent bans for spammers; tools to sort posts by Trending, Most recent and Most liked; a Media tab for Communities on Android; and more, including a range of bug fixes and minor improvements.

The list of what’s ahead for Communities was fairly extensive, too, noting that users will soon be able to explore top posts and top communities across all Communities and tools to discover top communities and posts by topic. Communities will also be promoted and recommended to potentially interested users on the For You tab, allowing them to grow more of a following. Mods will have access to Community Analytics and will be able to pin multiple members’ posts. There will also be support for spam filter levels set by admins, simplified reporting and moderation pages, and audio Spaces in Communities, among other things.

The post suggests a new user interface for posts, and replies may be on the way, too.

X did not return requests for comment about an ETA for any of the items listed as coming “soon.”