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Saturday, May 30, 2020

Startups Weekly: Remote-first work will mean ‘globally fair compensation’

Editor’s note: Get this free weekly recap of TechCrunch news that any startup can use by email every Saturday morning (7am PT). Subscribe here.

Most tech companies base compensation on an employee’s local cost of living, in addition to their skills and responsibilities. The pandemic-era push to remote work seems to be reinforcing that — if you only skim the headlines. For example, Facebook said last week that it would be readjusting salaries for employees who have relocated away from the Bay Area.

But Connie Loizos caught up with a few well-placed people who see something else happening. First, here’s Matt Mullenweg, CEO of Automattic (WordPress), which has been almost entirely remote for its long and successful history.

“Long term, I think market forces and the mobility of talent will force employers to stop discriminating on the basis of geography for geographically agnostic roles,” he told Connie for TechCrunch

Mullenweg went on to detail how the process was still complicated, and that his company did not yet have a universal approach. But ultimately, he thinks that for “moral and competitive reasons, companies will move toward globally fair compensation over time with roles that can be done from anywhere.”

Connie also talked to Jon Holman, a tech recruiter who is living and breathing the new world, in a separate article for Extra Crunch. The market forces will ultimately favor talent, he concurs, and companies that want talent will pay according to what they can afford. “If a good AI or machine learning engineer is working elsewhere and demand for those skills still exceeds supply,” Holman explained, “and his or her company pays less than for the same job in Palo Alto, then that person is just going to jump to another company in his or her own geography.”

Taking stock of the future of retail

Our weekly staff survey for Extra Crunch is about retail — will it exist? how? A few of our staffers who cover related topics weighed in:

  • Natasha Mascarenhas says retailers will need to find new ways to sell aspirational products — and what was once cringe-worthy might now be considered innovative.

  • Devin Coldewey sees businesses adopting a slew of creative digital services to prepare for the future and empower them without Amazon’s platform.

  • Greg Kumparak thinks the delivery and curbside pickup trends will move from pandemic-essentials to everyday occurrences. He thinks that retailers will need to find new ways to appeal to consumers in a “shopping-by-proxy” world.

  • Lucas Matney views a revitalized interest in technology around the checkout process, as retailers look for ways to make the purchasing experience more seamless (and less high-touch).

We also ran two investor surveys this week, with Matt Burns producing one on manufacturing and Megan Rose Dickey and Kirsten Korosec following up on their autonomous vehicles series.

How to think about strategic investors (in a pandemic)

Maybe you could use some more money, distribution and partnerships these days? Those are the eternal lures of corporate venture funding sources, but each strategic VC has a different mandate. Some are there to help the parent company, some are just there to make money… and some may be on thin ice themselves given the way that they get money to invest.

If you’re taking a fresh look at getting strategic funding now, check out this set of overview articles from Bill Growney, a partner at top tech law firm Goodwin, and Scott Orn of Kruze Consulting. The first, for TechCrunch, goes over how corporate funds are typically structured (and motivated). The second, for Extra Crunch, covers questions for startup founders to anticipate and other recommendations for dealing with this type of VC.

Calm chooses a more enlightened path to growth

It is high times for meditation and “mindfulness” apps, as people look for ways to adjust to pandemic life. Sarah Perez, our resident app expert, took a look at a new app store analysis on TechCrunch, shredded some of the top-ranked companies for opportunistic marketing, and came away with a positive feeling about the global market leader.

Calm, meanwhile, took a different approach. It launched a page of free resources, but instead focused on partnerships to expand free access to more users, while also growing its business. Earlier this month, nonprofit health system Kaiser Permanente announced it was making the Calm app’s Premium subscription free for its members, for example — the first health system to do so.

The company’s decision to not pursue as many free giveaways meant it may have missed the easy boost from press coverage. However, it may be a better long-term strategy as it sets up Calm for distribution partnerships that could continue beyond the immediate COVID-19 crisis.

Mindfulness pays. On that note, subscribers can read her excellent This Week In Apps report every Saturday over on Extra Crunch.

Around TechCrunch

TechCrunch’s Early Stage, Mobility and Space events will be virtual, too

Win a Wild Card to compete in Startup Battlefield at Disrupt 2020

Extra Crunch Live: Join Initialized’s Alexis Ohanian and Garry Tan for a live Q&A on Tuesday at 2pm EDT/11am PDT

Join GGV’s Hans Tung and Jeff Richards for a live Q&A: June 4 at 3:30 pm EDT/12:30 pm PD

Across the week

TechCrunch

AI can battle coronavirus, but privacy shouldn’t be a casualty

Living and working in a worsening world

How to upgrade your at-home videoconference setup: Lighting edition

Equity Morning: Remote work startup fundings galore, plus a major court decision

Extra Crunch

API startups are so hot right now

Investors say emerging multiverses are the future of entertainment

Dear Sophie: Can I work in the US on a dependent spouse visa?

Fintech regulations in Latin America could fuel growth or freeze out startups

The secret to trustworthy data strategy

#EquityPod

From Natasha:

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines. This week’s show took a break from regularly scheduled programming. Our co-host Alex Wilhelm, who usually leads us through the show, was on some much-deserved vacation, so Danny Crichton and Natasha Mascarenhas took the reigns and invited Floodgate Capital’s Iris Choi to join in on the fun. It’s Choi’s fourth time being on the podcast, which officially makes her our most tenured guest yet (in case the accomplished investor needs another bullet point on her bio page).

This week’s docket features scrappiness, a seed round and a Startup Battlefield alumnus.

Here’s what we chewed through:

  • LeverEdge raised seed funding to get you and your friends a volume discount on student loans. Fintech has been booming for years now, and startups often crop up around the painful world of student loans. Yet this startup still caught our eye, and it has a little something to do with its choice to use collective bargaining power as its modus operandi.
  • Stackin’ raised a $12.6 million Series B for a text-messaging service that connects millennials to money tips, and eventually other fintech apps. According to CEO Scott Grimes, Stackin’ wants to be the “pipes that port people around fintech.” We get into if the world needs a fintech app marketplace and how it targets younger users.
  • D-ID, a Startup Battlefield alumnus, digitally de-identifies faces in videos and still images and just raised $13.5 million. We’re all worried about our privacy concerns, so the funding news was a refreshing change of pace from the usual headlines we see around surveillance. Now the company just needs to find a successful use case beyond the goodness in people’s hearts.
  • ByteDance, the Chinese parent company that owns TikTok, hit $3 billion in net profit last year, reports Bloomberg. TikTok also recently snagged former Disney executive Kevin Mayer for its CEO. This one, as you can expect, made for an interesting conversation around privacy and bandwidth. We even asked Choi to weigh in on Donald J. Trump’s recent tweet threatening to regulate social media companies, as Floodgate was an early angel investor in Twitter.
  • We ended with a roundtable of sorts on how the future of work will look and feel in our new world, from college campuses to offices. We get into the vulnerability that comes with being on Zoom, the ever-increasing stupidity of “manels” and how tech talent might be flocking to smaller cities but investors aren’t just yet.

And that was the show! Thanks to our producer Chris Gates for helping us put this together, thanks to you all for listening in on this quirky episode and thanks to Iris Choi for always bringing a fresh, candid perspective. Talk next week.



https://ift.tt/2XEyaNG Startups Weekly: Remote-first work will mean ‘globally fair compensation’ https://ift.tt/2MeA7uR

Friday, May 29, 2020

Jeremy Conrad left his own VC firm to start a company, and investors like what he’s building

When this editor first met Jeremy Conrad, it was in 2014, at the 8,000-square-foot former fish factory that was home to Lemnos, a hardware-focused venture firm that Conrad had cofounded three years earlier.

Conrad —  who as a mechanical engineering undergrad at MIT worked on self driving cars, drones and satellites — was still excited about investing in hardware startups, having just closed a small new fund even while hardware was very unfashionable and remains challenging. One investment his team had made around that time was in Airware, a company that made subscription-based software for drones and attracted meaningful buzz and $118 million in venture funding before shutting down in 2018.

By then, Conrad had already moved on — though not from his love of hardware. He instead decided in late 2017 that a nascent team that was camping out at Lemnos was onto a big idea relating the future of construction. Conrad didn’t have a background in real estate or, at the time, a burning passion for the industry. But the “more I learned about it — not dissimilar to when I started Lemnos — It felt like there was a gap in the market, an opportunity that people were missing,” says Conrad from his home in San Francisco, where he has hunkered down throughout the COVID-19 crisis.

Enter Quartz, Conrad’s now 1.5-year-old, 14-person company, which quietly announced $7.75 million in Series A funding earlier this month, led by Baseline Ventures, with Felicis Ventures, Lemnos and Bloomberg Beta also participating.

What it’s selling to real estate developers, project managers and construction supervisors is really two things, which is safety and information.

Here’s how it works: using off-the-shelf hardware components that are reassembled in San Francisco and hardened (meaning secured to reduce vulnerabilities), the company incorporates its machine-learning software into this camera-based platform, then mounts the system onto cranes at construction sites. From there, the system streams 4K live feeds of what’s happening on the ground, while also making sense of the action.

Say dozens of concrete pouring trucks are expected on a construction site. The cameras, with their persistent view, can convey through a dashboard system whether and when the trucks have arrived and how many, says Conrad. It can determine how many people on are on a job site, and whether other deliveries have been made, even if not with a high degree of specificity.

“We can’t say [to project managers] that 1,000 screws were delivered, but we can let them know whether the boxes they were expecting were delivered and where they were left,” he explains.

It’s an especially appealing proposition in the age of coronavirus, as the technology can help convey information that’s happening at a site that’s been shut down, or even how closely employees are gathered.

Conrad says the technology also saves on time by providing information to those who might not otherwise be able to access it. Think of the developer on the 50th floor of the skyscraper that he or she is building, or even the crane operator who is perhaps moving a two-ton object and has to rely on someone on the ground to deliver directions but can enjoy far more visibility with the aid of a multi-camera set-up.

Quartz, which today operates in California but is embarking on a nationwide rollout, was largely inspired by what Conrad was seeing in the world of self-driving. From sensors to self-perception systems, he knew the technologies would be even easier to deploy at construction sites, and he believed it could make them safer, too. Indeed, like cars, construction sites are highly dangerous. According to the Occupational Safety and Health Administration, of the worker fatalities in private industry in 2018, more than 20% were in construction.

Conrad also saw an opportunity to take on established companies like Trimble, a 42-year-old, publicly traded, Sunnyvale, Ca.-based company that sells a portfolio of tools to the construction industry and charges top dollar for them. Quartz is meanwhile charging $2,000 per month per crane for its series of cameras, their installation, a livestream and “lookback” data, though this may well rise at its adds additional features.

It’s a big enough opportunity that, perhaps unsurprisingly, Quartz is not alone in chasing it. Last summer, for example, Versatile, an Israeli-based startup with offices in San Francisco and New York City, raised $5.5 million in seed funding from Germany’s Robert Bosch Venture Capital and several other investors for a very similar platform,  though it uses sensors mounted under the hook of a crane to provide information about what’s happening below. Construction Dive, a media property that’s dedicated to the industry, highlights many other, similar and competitive startups in the space, too.

Still, Quartz has Conrad, who isn’t just any founding CEO. Not only does he have that background in engineering, but having launched a venture firm and spent years as an investor may also serve him well. He thinks a lot about the payback period on its hardware, for example.

Unlike a lot of founders, he even says he loves the fundraising process. “I get the highest quality feedback from some of the smartest people I know, which really helps focus your vision,” says Conrad, who says that Quartz, which operates in California today, is now embarking on a nationwide rollout.

“When you talk with great VCs, they ask great questions. For me, it’s best free consulting you can get.”



https://ift.tt/eA8V8J Jeremy Conrad left his own VC firm to start a company, and investors like what he’s building https://ift.tt/3chmGoq

4 views on the future of retail and the shopping experience

The global spread of COVID-19 and resulting orders to shelter in place have hit retailers hard.

As the pandemic drags on, temporary halts are becoming permanent closures, whether it’s the coffee shop next door, a historic bar or a well-known lifestyle brand.

But while the present is largely bleak, preparing for the future has retailers adopting technologies faster than ever. Their resilience and innovation means retail will look and fee different when the world reopens.

We gathered four views on the future of retail from the TechCrunch team:

  • Natasha Mascarenhas says retailers will need to find new ways to sell aspirational products — and what was once cringe-worthy might now be considered innovative.
  • Devin Coldewey sees businesses adopting a slew of creative digital services to prepare for the future and empower them without Amazon’s platform.
  • Greg Kumparak thinks the delivery and curbside pickup trends will move from pandemic-essentials to everyday occurrences. He thinks that retailers will need to find new ways to appeal to consumers in a “shopping-by-proxy” world.
  • Lucas Matney views a revitalized interest in technology around the checkout process, as retailers look for ways to make the purchasing experience more seamless (and less high-touch).

Alexa, how do I look?

Natasha Mascarenhas



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Daily Crunch: Trump takes aim at social media companies

President Trump follows through on his threat to challenge the legal protections enjoyed by social media and internet companies, Magic Leap’s CEO is stepping down and China sees its biggest autonomous driving round yet.

Here’s your Daily Crunch for May 29, 2020.

1. Trump signs an executive order taking direct aim at social media companies

Yesterday, President Donald Trump signed an executive order targeting the legal shield that internet companies rely on to protect them from liability for user-created content. Next, we’ll almost certainly see a court battle over whether the order is legal and enforceable.

While Trump and Attorney General William Barr have expressed interest in undermining Section 230 of the Communications Decency Act before, this week’s action was prompted by Twitter’s decision to add a fact-checking link to the president’s tweet about voting by mail. That conflict isn’t going away either, with Twitter adding a “public interest notice” to another of Trump’s tweets for glorifying violence.

2. Magic Leap CEO Rony Abovitz is out

Magic Leap founder and CEO Rony Abovitz announced that the company has secured a new bout of funding — but that Magic will be attempting a major turnaround without him at the helm.

3. SoftBank led $500M investment in Didi in China’s biggest autonomous driving round

As China’s largest ride-hailing provider with mountains of traffic data, Didi clearly has an upper hand in developing robotaxis, which could help address driver shortages in the long term. But it was relatively late to the field.

4. Cisco to acquire internet monitoring solution ThousandEyes

Cisco’s Todd Nightingale, writing in a blog post announcing the deal, said that the kind of data that ThousandEyes provides around internet user experience is more important than ever as internet connections have come under tremendous pressure.

5. Fintech regulations in Latin America could fuel growth or freeze out startups

Promoteo co-founder Ximena Aleman looks at what impact regulation has had so far in Latin America, and what needs to happen to strike a balance between sector growth and public trust. (Extra Crunch membership required.)

6. Uber UK launches Work Hub for drivers to find other gig jobs during COVID-19

The ride-hailing giant rolled out a similar feature in the U.S. back in April, offering drivers the ability to respond to job postings from around a dozen other companies, as well as the ability to receive orders through other Uber units: Eats, Freight and Works.

7. Join us June 3 for a contact-tracing and exposure-notification app development and deployment forum

We’re working with the COVID-19 Technology Task Force, as well as Harvard’s Berkman Klein Center, NYU’s Alliance for Public Interest Technology, Betaworks Studios and Hangar. We’ll be playing host to their live-streamed discussion around contact-tracing and exposure-notification applications, including demonstrations of some of the cutting-edge products that will be available in the U.S. to tackle these challenging, but crucial, tasks.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.



from Social – TechCrunch https://ift.tt/2CoAoqu Daily Crunch: Trump takes aim at social media companies Anthony Ha https://ift.tt/2ZQN8Ts
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The best investment every digital brand can make during the COVID-19 pandemic

Intuitively, stores that sell online should be making a killing during the COVID-19 pandemic. After all, everyone is stuck at home — and understandably more willing to shop online instead of at a traditional retailer to avoid putting themselves and others at medical risk. But the truth is, most smaller online stores have seen better days.

The primary challenge is that smaller shops often don’t have the logistics networks that companies like Amazon do. Consequently, they’re seeing substantially delayed delivery timelines, especially if they ship internationally. Customers obviously aren’t thrilled about that reality. And in many cases, they’re requesting refunds at a staggering rate.

I saw this play out firsthand in April. At that point, my stores were down 20% or in some cases even 30% in revenue. Needless to say, my team was freaking out. But there’s one thing we did that helped us increase our revenue over 200% since the pandemic, decrease refund requests and even strengthen our existing customer relationships.

We implemented a 24-hour live chat in all of our stores. Here’s why it worked for us and why every digital brand should be doing it too.

Avoid the common ‘unreachability’ frustration

When I started my first online store in 2006, challenges that bogged my team down often meant that my team’s first priority became resolving those challenges so that we could serve our customers faster. But admittedly, when these challenges came up, it became more difficult to balance communicating with our customers and resolving the issues that prevented us from fulfilling their orders quickly.



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Bunq adds donations to charities and tests redesign

Challenger bank Bunq is adding a new feature that lets you donate to charities directly from the app. In addition to that, Bunq is also in the process of redesigning its app. The company is launching a public beta test to get feedback from its users.

Other fintech startups, such as Revolut and Lydia, have launched donation features in the past. But in those cases, startups have selected a handful of charities.

Bunq has chosen a different approach, as you can create your own donation campaigns in the app. As long your local charity has an IBAN number, you can add it to Bunq’s donation feature. You can even add a local business in case you want to help them stay in business.

You can then invite other people to donate to your charities. You can also track the total amount of your donations, as well as the total donations from the entire Bunq user base.

The company has also been working on the third major version of the app. In order to test it before the public release, Bunq is launching a public beta program. The first build will roll out in the coming weeks.

In order to simplify navigation, Bunq has tried to remove clutter by focusing on one main button on each page. The app will be divided in four main tabs.

The first tab, called “Me,” will feature all your personal information — personal bank accounts, savings goals, etc. On the second tab, called “Us,” you can see information about Bunq, such as total investments and total donations. The third tab features your profile information.

Finally, the fourth tab is a dedicated camera button. It lets you scan invoices and receipts, which could be particularly useful for business customers. I’m not sure a lot of people use that feature, but things could still change before the final release.



https://ift.tt/36Hk8yL Bunq adds donations to charities and tests redesign https://ift.tt/36LveTt

How startups can leverage elastic services for cost optimization

Due to COVID-19, business continuity has been put to the test for many companies in the manufacturing, agriculture, transport, hospitality, energy and retail sectors. Cost reduction is the primary focus of companies in these sectors due to massive losses in revenue caused by this pandemic. The other side of the crisis is, however, significantly different.

Companies in industries such as medical, government and financial services, as well as cloud-native tech startups that are providing essential services, have experienced a considerable increase in their operational demands — leading to rising operational costs. Irrespective of the industry your company belongs to, and whether your company is experiencing reduced or increased operations, cost optimization is a reality for all companies to ensure a sustained existence.

One of the most reliable measures for cost optimization at this stage is to leverage elastic services designed to grow or shrink according to demand, such as cloud and managed services. A modern product with a cloud-native architecture can auto-scale cloud consumption to mitigate lost operational demand. What may not have been obvious to startup leaders is a strategy often employed by incumbent, mature enterprises — achieving cost optimization by leveraging managed services providers (MSPs). MSPs enable organizations to repurpose full-time staff members from impacted operations to more strategic product lines or initiatives.

Why companies need cost optimization in the long run



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Facebook takes on Twitter with Venue, a ‘second screen’ companion for live events

Facebook’s R&D group, NPE Team, is launching a new app for engaging fellow fans around live events, Venue. This is the third new app to launch just this week from Facebook’s internal team focused on experimenting with new concepts in social networking. With Venue, the company aims to offer a digital companion for live events, starting with this Sunday’s NASCAR race.

The new app appears to be a challenge to Twitter, which today serves as the de facto “second screen” for commenting on live events and engaging with fellow fans. On Twitter, fans often use hashtags to add their commentary to live events that can range from TV show premieres to sports competitions to major political happenings, like live-streamed congressional hearings or the “State of the Union” presidential address, for example.

Twitter’s in-house curation team also rounds up the highlights from major events (e.g.), which are quick summaries featuring notable tweets, video clips, photos, comments and more about an event or related news story.

While there are some similarities with Twitter, Facebook’s Venue takes a different approach to the second screen.

Instead of having everyone viewing the event constantly chiming in with their own thoughts and reactions, the commentators for a given event hosted in Venue will only include well-known personalities — like journalists, current or former athletes, or aspiring “fan-analysts.” The latter could include popular social media personalities, for example.

These commentators will provide their own takes on the event and pose interactive questions and polls for those watching. The event host may also open up short, constrained chats around specific moments during the event — but fan commentary isn’t the main focus of the app.

In addition, fans don’t stay glued to their phone during the entire event when using Venue. Instead, the app sends out a notification to users when there’s a new “moment” available in the app. These “moments” aren’t like Twitter’s summaries. They’re one of the short, digital opportunities where fans can participate.

Facebook will first test Venue with NASCAR’s Food City presents the Supermarket Heroes 500 race on Sunday, May 31, 2020. Social media personality, nascarcasm, will host the in-app “venue.”

Future NASCAR races will also be hosted in Venue, with commentators including nascarcasm, FOX Sports NASCAR reporter Alan Cavanna, and NASCAR driver Landon Cassill.

“As NASCAR makes its return to action over the coming weeks, Venue will provide users with a unique and exciting way to connect with fellow race fans from around the globe – all from the safety and comfort of their own homes,” said Tim Clark, NASCAR SVP and Chief Digital Officer, in a statement. “NASCAR was built on innovation, and we couldn’t be more excited to help a great partner like Facebook’s New Product Experimentation team innovate around new platforms,” he added.

Facebook believes the new app will give viewers the chance to better engage with live events and fellow fans.

“Live broadcasts still offer the rare opportunity for millions of people to consume content simultaneously,” Facebook explained in its announcement. “Despite drawing large concurrent viewership, live broadcasts are still a mostly solo viewing experience,” it noted.

That’s a bit of stretch. Fans certainly engage with one another when chatting about live events on Twitter. And when Twitter streams the video from a live event — something Venue doesn’t do, by the way — Twitter will offer a dedicated space where users can easily see the tweets from fellow viewers. Other live video platforms, including Facebook’s own Facebook Live and Instagram Live, also include chat experiences as do YouTube Live and Twitch.

The real difference between Venue and Twitter is that it shifts the balance of power. On Twitter, everyone’s comments are given equal footing. In Venue, it’s the expert hosts leading and curating the conversation.

Facebook hasn’t announced what future events Venue may host beyond NASCAR but it sounds like it has plans to expand Venue further down the road as it refers to NASCAR as its “first” sports partner.

The Venue app is live today on iOS and Android.



from Social – TechCrunch https://ift.tt/3esZ9m4 Facebook takes on Twitter with Venue, a ‘second screen’ companion for live events Sarah Perez https://ift.tt/2yJPzvT
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Cisco to acquire internet monitoring solution ThousandEyes

When Cisco bought AppDynamics in 2017 for $3.7 billion just before the IPO, the company sent a clear signal it wanted to move beyond its pure network hardware roots into the software monitoring side of the equation. Yesterday afternoon the company announced it intends to buy another monitoring company, this time snagging internet monitoring solution ThousandEyes.

Cisco would not comment on the price when asked by TechCrunch, but published reports from CNBC and others pegged the deal at around $1 billion. If that’s accurate, it means the company has paid around $4.7 billion for a pair of monitoring solutions companies.

Cisco’s Todd Nightingale, writing in a blog post announcing the deal said that the kind of data that ThousandEyes provides around internet user experience is more important than ever as internet connections have come under tremendous pressure with huge numbers of employees working from home.

ThousandEyes keeps watch on those connections and should fit in well with other Cisco monitoring technologies. “With thousands of agents deployed throughout the internet, ThousandEyes’ platform has an unprecedented understanding of the internet and grows more intelligent with every deployment, Nightingale wrote.

He added, “Cisco will incorporate ThousandEyes’ capabilities in our AppDynamics application intelligence portfolio to enhance visibility across the enterprise, internet and the cloud.”

As for ThousandEyes, co-founder and CEO Mohit Lad told a typical acquisition story. It was about growing faster inside the big corporation than it could on its own. “We decided to become part of Cisco because we saw the potential to do much more, much faster, and truly create a legacy for ThousandEyes,” Lad wrote.

It’s interesting to note that yesterday’s move, and the company’s larger acquisition strategy over the last decade is part of a broader move to software and services as a complement to its core networking hardware business.

Just yesterday, Synergy Research released its network switch and router revenue report and it wasn’t great. As companies have hunkered down during the pandemic, they have been buying much less network hardware, dropping the Q1 numbers to seven year low. That translated into a $1 billion less in overall revenue in this category, according to Synergy.

While Cisco owns the vast majority of the market, it obviously wants to keep moving into software services as a hedge against this shifting market. This deal simply builds on that approach.

ThousandEyes was founded in 2010 and raised over $110 million on a post valuation of $670 million as of February 2019, according to Pitchbook Data.



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Twitter screens Trump’s Minneapolis threat-tweet for glorifying violence

After applying a fact-checking label Tuesday to a misleading vote-by-mail tweet made by US president Donald Trump, Twitter is on a roll and has labeled another of the president’s tweets — this time screening his words from casual view with what it calls a “public interest notice” that states the tweet violated its rules about glorifying violence. 

Here’s how the tweet appears without further interaction (second tweet in the below screengrab):

The public interest notice replaces the substance of what Trump wrote, meaning a user has to actively click through to view the offending tweet.

Engagement options are also limited as a result by this label, meaning users can only retweet the offending tweet with a comment; they cannot like it, reply to it or vanilla retweet it.

Twitter’s notice goes on to explain why it has not removed the offending tweet entirely — and this is where the public interest element of the policy kicks in — with the company writing: “Twitter has determined that it may be in the public’s interest for the Tweet to remain accessible.” 

Twitter appears to be shrugging off the president’s decision yesterday to sign an executive order targeting the legal shield which internet companies rely on to protect them from liability for user-created content — doubling down on displeasing Trump who has accused social media platforms generally of deliberately suppressing conservative views, despite plenty of evidence that ad-targeting platform algorithms actually boost outrage-fuelled content and views — which tends, conversely, to amplify conservative viewpoints.

In the latest clash, Trump had tweeted in reference to violent demonstrations taking place in Minneapolis sparked by the killing of a black man, George Floyd, by a white police officer — with the president claiming that “THUGS are dishonoring the memory of George Floyd” before threatening to send in the “Military”.

“Any difficulty and we will assume control but, when the looting starts, the shooting starts. Thank you!” Trump added — making a bald threat to use military force against civilians.

Twitter has wrestled with the issue of how to handle world leaders who break its content rules for years. Most often as a result of Trump who routinely uses its platform to bully all manner of targets — from rival politicians to hated journalists, disobedient business leaders, and even actors who displease him — as well as to dispense direct and sometimes violent threats.

Since being elected, Trump has also used Twitter’s global platform as a foreign policy weapon, firing military threats at the likes of North Korea and Iran in tweet form.

Back in 2018, for example, he teased North Korean leader Kim Jong-Un with button-pushing nuclear destruction (see below tweet) — before going on to “fall in love” with the dictator when he met him in person.

Twitter’s go-to defence for not taking offending Trump tweets down in the past has been that, as US president, the substance of what the man tweets — however mad, bad and dangerous — is inherently newsworthy.

However, more recently, the company has created a policy tool that allows it to intervene — defining terms last summer around “public interest” content on Twitter.

It warned then (almost a full year ago, in June 2019) that it might place a public interest notice on tweets that would otherwise violate its rules (and therefore merit a takedown) — in order to “to provide additional context and clarity”, rather than removing the offensive tweet.

Fast forward a year and the tech giant has started applying labels to Trump’s tweets — beginning with a fact-check label earlier this week, related to the forthcoming US election, and following up now with a public interest notice related to Trump glorifying violence.

So, finally, the tech giant seems to be inching towards drawing a limit-line around Trump in near real-time.

Explaining its decision to badge the US president’s threat to order the military to shoot looters in Minneapolis, the company writes: “This Tweet violates our policies regarding the glorification of violence based on the historical context of the last line, its connection to violence, and the risk it could inspire similar actions today.”

“We’ve taken action in the interest of preventing others from being inspired to commit violent acts, but have kept the Tweet on Twitter because it is important that the public still be able to see the Tweet given its relevance to ongoing matters of public importance,” Twitter goes on.

It also links to its policy against tweets that glorify violence — which states unequivocally [in bold]: “You may not threaten violence against an individual or a group of people.”

Back in June, when Twitter announced the ‘abusive behavior’ label, it also warned that tweets which get screened with a public interest notice will not benefit from any algorithmic acceleration, writing: “We’ll also take steps to make sure the Tweet is not algorithmically elevated on our service, to strike the right balance between enabling free expression, fostering accountability, and reducing the potential harm caused by these Tweets.”

However the newsworthiness of Twitter’s decision to finally apply its own rules vis-a-vis Trump will ensure there’s plenty of non-algorithmic amplification (and no little irony).

We reached out to the company with questions about its decision to apply a public interest screen on Trump’s latest tweet but at the time of writing it had not responded.

On Wednesday night, Twitter CEO and co-founder, Jack Dorsey, put out a series of tweets defending its decision to apply a fact-check label to Trump’s earlier misleading tweets about vote-by-mail.

“This does not make us an “arbiter of truth”,” wrote Dorsey. “Our intention is to connect the dots of conflicting statements and show the information in dispute so people can judge for themselves. More transparency from us is critical so folks can clearly see the why behind our actions.”

Dorsey’s remarks followed pointed comments made by Facebook CEO Mark Zuckerberg to Fox News, seeking to contrast Facebook’s claimed ‘neutrality’ when policing its platform with Twitter’s policy of taking a stance on issues such as political advertising (which Twitter does not allow).

“I just believe strongly that Facebook shouldn’t be the arbiter of truth of everything that people say online,” Zuckerberg told the conservative news station. “Private companies… especially these platform companies, shouldn’t be in the position of doing that.”

It’s notable that Dorsey used Zuckerberg’s exact turn of phrase — “arbiter of truth” — to reject Facebook’s attack on Twitter’s policy as a straw man argument.



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Thursday, May 28, 2020

The secret to trustworthy data strategy

Shortly after its use exploded in the post-office world of COVID-19, Zoom was banned by a variety of private and public actors, including SpaceX and the government of Taiwan. Critics allege its data strategy, particularly its privacy and security measures, were insufficiently robust, especially putting vulnerable populations, like children, at risk. NYC’s Department of Education, for instance, mandated teachers switch to alternative platforms like Microsoft Teams.

This isn’t a problem specific to Zoom. Other technology giants, from Alphabet, Apple to Facebook, have struggled with these strategic data issues, despite wielding armies of lawyers and data engineers, and have overcome them.

To remedy this, data leaders cannot stop at identifying how to improve their revenue-generating functions with data, what the former Chief Data Officer of AIG (one of our co-authors) calls “offensive” data strategy. Data leaders also protect, fight for, and empower their key partners, like users and employees, or promote “defensive” data strategy. Data offense and defense are core to trustworthy data-driven products.

While these data issues apply to most organizations, highly-regulated innovators in industries with large social impact (the “third wave”) must pay special attention. As Steve Case and the World Economic Forum articulate, the next phase of innovation will center on industries that merge the digital and the physical worlds, affecting the most intimate aspects of our lives. As a result, companies that balance insight and trust well, Boston Consulting group predicts, will be the new winners.

Drawing from our work across the public, corporate, and startup worlds, we identify a few “insight killers” — then identify the trustworthy alternative. While trustworthy data strategy should involve end users and other groups outside the company as discussed here, the lessons below focus on the complexities of partnering within organizations, which deserve attention in their own right.

Insight-killer #1: “Data strategy adds no value to my life.”

From the beginning of a data project, a trustworthy data leader asks, “Who are our partners and what prevents them from achieving their goals?” In other words: listen. This question can help identify the unmet needs of the 46% of surveyed technology and business teams who found their data groups have little value to offer them.

Putting this to action is the data leader of one highly-regulated AI health startup — Cognoa — who listened to tensions between its defensive and offensive data functions. Cognoa’s Chief AI Officer identified how healthcare data laws, like the Health Insurance Portability and Accountability Act, resulted in friction between his key partners: compliance officers and machine learning engineers. Compliance officers needed to protect end users’ privacy while data and machine learning engineers wanted faster access to data.

To meet these multifaceted goals, Cognoa first scoped down its solution by prioritizing its highest-risk databases. It then connected all of those databases using a single access-and-control layer.

This redesign satisfied its compliance officers because Cognoa’s engineers could then only access health data based on strict policy rules informed by healthcare data regulations. Furthermore, since these rules could be configured and transparently explained without code, it bridged communication gaps between its data and compliance roles. Its engineers were also elated because they no longer had to wait as long to receive privacy-protected copies.

Because its data leader started by listening to the struggles of its two key partners, Cognoa met both its defensive and offensive goals.



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Former Lime exec launches Cabana, a company that merges #vanlife and hotels

Is it glamping on wheels? Hotel #vanlife?

It’s Cabana, a new startup from a former Lime executive that’s bringing tricked-out vans with all the amenities of a Holiday Inn hotel room to cities on the West Coast, starting in Seattle.

Because of Lime I spent 54 consecutive weeks on the road staying at hotels,” recalls Scott Kubly, the co-founder and chief executive of Cabana. “I got this bug that there needed to be a better way.”

So with the benefit of a few years of startup salary in the bank, Kubly launched Cabana. “The way I would describe it is vanlife meets car sharing meets a boutique hotel. It’s a hotel room packed into the back of a van.”

The vans come with showers, toilets, a slide out two-range stovetop that can serve as a kitchen and the freedom to hit the road after a customer crushes that last sales meeting, conference appearance, convention, or just needs to travel and experience the outdoors.

The vans cost $200 per-night plus tax to rent and there’s a fleet of several vans already available in Seattle. Booking a van is simple through the company’s app and everything is contactless — an important feature in the COVID-19 era.

[gallery ids="1995050,1995048,1995047"]

Kubly estimates there’s around $15 billion spent on travel that he thinks he can unlock with Cabana, and the company is definitely tapping into a small, but not insignificant trend of glamping, vanlife and luxury experiences that investors are already backing.

Companies like Tentrr, HipCamp and even Airbnb have gotten in on the vanlife movement, and Cabana’s founder definitely thinks he can ride the wave.

Cabana has already raised $3.5 million from investors, led by Craft Ventures — the investment firm founded by David Sacks. Other investors include Goldcrest Capital, Travis VanderZanden (the chief executive and founder of Bird), and Sunny Madra, vice president of Ford X at Ford Motor Company.

“Cabana gives people an ideal combination of freedom, comfort, and convenience,” said David Sacks, co-founder and general partner of Craft, in a statement. “Despite the societal upheaval of the last few months, the human desire to travel and explore remains unchanged. Why shelter in place when you can shelter in paradise?”

Sacks may be on to something. According to Kubly, the RV rental business has exploded and is up 650% year-on-year. “People are going a little stir crazy,” he said.

Back in 2019 when Kubly and his co-founder Jonathan Savage, a former nuclear engineer for the Navy and the bassist in the Red Not Chili Peppers (a Red Hot Chili Peppers cover band), launched the company, they weren’t expecting to have to deal with running a hospitality business during a pandemic, but they’ve adapted.

Image credit: Cabana

Cabana’s fleet of vans are cleaned and then irradiated with UVC light (the same treatment the president suggested, wrongly, for people) and then left to stand for six-to-eight hours between rentals.

The hardest part of the business hasn’t been handling the vans or disinfecting them for customers concerned about the novel coronavirus, but the more mundane task of cleaning out the toilets.

“There is a toilet and a toilet tank,” said Kubly. “At the end of every trip we swap that out. Just like scooters have swappable batteries we have swappable toilet tanks. It is the big downside of the business.”

He should know. He spent the first six months that the company was in business cleaning out the tanks himself on the retrofitted van that he and Savage bought to test the business idea.

“Ideas that utilize existing infrastructure and satisfy a previously unseen or emerging consumer need are often the genesis of companies that can establish and lead a new industry,” said VanderZanden in a statement. “Cabana fits squarely within this theory and provides travelers a new way to experience and explore destinations that might not otherwise have been available to them while also avoiding carbon-emitting flights.” 



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Join GGV’s Hans Tung and Jeff Richards for a live Q&A: June 4 at 3:30 pm EDT/12:30 pm PDT

What does a global mindset look like in a world where most of us no longer travel? And what does it mean to be local when everyone is connected?

Those are the first questions we had in mind when we read GGV Capital’s Twitter bio, which asserts that the investing shop with offices in five cities is a “global venture capital firm that invests in local founders.”

Certainly, some of its investments are far from home, including Khatabook (based in Bangalore), Keep (Beijing), Coder, (Austin) and Slice (New York City). And those are just GGV deals from the last few months.

But what constitutes a local investment in a world where, until recently, no deal was more than a plane ride or two away? Hans Tung and Jeff Richards, managing partners at GGV Capital, are swinging by Extra Crunch Live next week, and we’re going to dive into the above to figure it out.

Of course, we’ll also ask critical, founder-focused questions about their current investing pace, check sizes and how they are adapting to the COVID-19 era. But after that, there’s a lot of work to do.

We’ll call on Tung to share some of what he’s learned from his time investing in China’s tech landscape, with a specific focus on what he sees in the future that might prove encouraging. The other GGV partner joining, Richards, also has international experience working in Asia and Latin America, so the conversation should be interesting.

In February, the firm published a mom-and-pop shop investment thesis. GGV Capital wants to invest in startups that help small retailers digitize operations and work with better supply chains. It is also interested in startups that want to establish logistic and online payment infrastructure. (Surely Shopify can’t be this entire market, right?)

The thesis hinges on consumer shopping habits and retailers open for business, so we’ll see how Tung and Richards are changing their appetite, or further shaping it. 

Details are below for Extra Crunch subscribers; if you need a pass, get a cheap trial here

Chat with you all in a week!

When, where, Zoom

  • Thursday, June 4
  • 12:30 p.m. PDT/3:30 p.m. EDT/7:30 p.m. GMT
  • Add this event to your calendar


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BeeHero smartens up hives to provide ‘pollination as a service’ with $4M seed round

Vast monoculture farms outstripped the ability of bee populations to pollinate them naturally long ago, but the techniques that have arisen to fill that gap are neither precise nor modern. Israeli startup BeeHero aims to change that by treating hives both as living things and IoT devices, tracking health and pollination progress practically in real time. It just raised a $4 million seed round that should help expand its operations into U.S. agriculture.

Honeybees are used around the world to pollinate crops, and there has been growing demand for beekeepers who can provide lots of hives on short notice and move them wherever they need to be. But the process has been hamstrung by the threat of colony collapse, an increasingly common end to hives, often as the result of mite infestation.

Hives must be deployed and checked manually and regularly, entailing a great deal of labor by the beekeepers — it’s not something just anyone can do. They can only cover so much land over a given period, meaning a hive may go weeks between inspections — during which time it could have succumbed to colony collapse, perhaps dooming the acres it was intended to pollinate to a poor yield. It’s costly, time-consuming, and decidedly last-century.

So what’s the solution? As in so many other industries, it’s the so-called Internet of Things. But the way CEO and founder Omer Davidi explains it, it makes a lot of sense.

“This is a math game, a probabilistic game,” he said. “We’ve modeled the problem, and the main factors that affect it are, one, how do you get more efficient bees into the field, and two, what is the most efficient way to deploy them? ”

Normally this would be determined ahead of time and monitored with the aforementioned manual checks. But off-the-shelf sensors can provide a window into the behavior and condition of a hive, monitoring both health and efficiency. You might say it puts the API in apiculture.

“We collect temperature, humidity, sound, there’s an accelerometer. For pollination, we use pollen traps and computer vision to check the amount of pollen brought to the colony,” he said. “We combine this with microclimate stuff and other info, and the behaviors and patterns we see inside the hives correlate with other things. The stress level of the queen, for instance. We’ve tested this on thousands of hives; it’s almost like the bees are telling us, ‘we have a queen problem.’ ”

All this information goes straight to an online dashboard where trends can be assessed, dangerous conditions identified early, and plans made for things like replacing or shifting less or more efficient hives.

The company claims that its readings are within a few percentage points of ground truth measurements made by beekeepers, but of course it can be done instantly and from home, saving everyone a lot of time, hassle, and cost.

The results of better hive deployment and monitoring can be quite remarkable, though Davidi was quick to add that his company is building on a growing foundation of work in this increasingly important domain.

“We didn’t invent this process, it’s been researched for years by people much smarter than us. But we’ve seen increases in yield of 30-35 percent in soybeans, 70-100 percent in apples and cashews in South America,” he said. It may boggle the mind that such immense improvements can come from just better bee management, but the case studies they’ve run have borne it out. Even “self-pollinating” (i.e. by the wind or other measures) crops that don’t need pollinators show serious improvements.

The platform is more than a growth aid and labor saver. Colony collapse is killing honeybees at enormous rates, but if it can be detected early, it can be mitigated and the hive potentially saved. That’s hard to do when time from infection to collapse is a matter of days and you’re inspecting biweekly. BeeHero’s metrics can give early warning of mite infestations, giving beekeepers a head start on keeping their hives alive.

“We’ve seen cases where you can lower mortality by 20-25 percent,” said Davidi. “It’s good for the farmer to improve pollination, and it’s good for the beekeeper to lose less hives.”

That’s part of the company’s aim to provide value up and down the chain, not just a tool for beekeepers to check the temperatures of their hives. “Helping the bees is good, but it doesn’t solve the whole problem. You want to help whole operations,” Davidi said. The aim is “to provide insights rather than raw data: whether the queen is in danger, if the quality of the pollination is different.”

Other startups have similar ideas, but Davidi noted that they’re generally working on a smaller scale, some focused on hobbyists who want to monitor honey production, or small businesses looking to monitor a few dozen hives versus his company’s nearly twenty thousand. BeeHero aims for scale both with robust but off-the-shelf hardware to keep costs low, and by focusing on an increasingly tech-savvy agriculture sector here in the States.

“The reason we’re focused on the U.S. is the adoption of precision agriculture is very high in this market, and I must say it’s a huge market,” Davidi said. “80 percent of the world’s almonds are grown in California, so you have a small area where you can have a big impact.”

The $4M seed round’s investors include Rabo Food and Agri Innovation Fund, UpWest, iAngels, Plug and Play, and J-Ventures.

BeeHero is still very much also working on R&D, exploring other crops, improved metrics, and partnerships with universities to use the hive data in academic studies. Expect to hear more as the market grows and the need for smart bee management starts sounding a little less weird and a lot more like a necessity for modern agriculture.



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Going to war with Twitter, Trump threatens critical social media legal protections

Accusing Twitter of censorship for adding a contextual label to false claims he made about the 2020 election process, President Trump has again declared war on social media companies.

After the White House told reporters that the president would soon announce an executive order “pertaining to social media,” the draft of that order is out in circulation. We’ve reviewed the draft, and while its contents are somewhat shocking by the standards of a normal administration, this isn’t the first time we’ve seen the Trump administration lash out at social media companies over accusations of political bias. In fact, we may be seeing the same executive order now that circulated in draft form last year.

A draft of an executive order is just that: a draft. Until the administration actually introduces or signs an order, its wishes — and threats — should be taken with a grain of salt. But we can get an idea of what this White House has in mind for punishing social media companies for ongoing unfounded claims of anti-conservative censorship.

The president’s draft order tries to exert control over social media companies in a few ways. The most ominous of those is by attacking a law known as Section 230 of the Communications Decency Act. That law, often regarded as the legal infrastructure for the social internet, shields online platforms from legal liability for the content their users create. Without the law, Twitter or Facebook or YouTube (or Yelp or Reddit or any website with a comments section, including this one) could be sued for the stuff their users post.

Whether you think they should be held more accountable for their content or not, in a world without Section 230, social media companies would never have been able to scale into the services we use today.

The draft order attacks this legal provision by claiming that that part of the law means that “an online platform that engaged in any editing or restriction of content posted by others thereby became itself a ‘publisher,'” implying that a company would then be legally liable for things its users say.

This interpretation appears to be a willful inversion of what the law really intends. Sen. Ron Wyden (D-OR), who co-authored Section 230, often says that the law provides companies with both a sword and a shield. The “shield” protects companies from legal liability and the “sword” allows them to make moderation decisions without facing liability for that either.

While Trump is trying to intimidate social media companies into doing even less moderation — such as Twitter labeling the falsehood he tweeted — the consensus beyond this politically expedient viewpoint is that social media should actually be removing and contextualizing more of the potentially harmful content on their platforms.

“Members across the spectrum, including far-right House and Senate leaders, are agitating for government regulation of internet platforms,” Wyden wrote in a prescient TechCrunch op-ed two years ago calling for tech companies to step up or face an existential threat.

“Even if the government doesn’t take the dangerous step of regulating speech, just eliminating the [Section] 230 protections is enough to have a dramatic, chilling effect on expression across the internet.”

Beyond attacking Twitter’s moderation decisions through Section 230, the draft executive order says the White House will reestablish a “tech bias” reporting tool, presumably so it can unsystematically collect anecdotal evidence that he and his supporters are being unfairly targeted on social platforms. According to the order, the White House would then submit those reports to the Justice Department and the Federal Trade Commission (FTC). The order would further rope in the FTC to make a public report of complaints and “consider taking action” against social media companies that “restrict speech.”

It’s not clear what kind of action, if any, the FTC would have legal ground to take.

The order also asks the Commerce Secretary to file a petition that would require the Federal Communications Commission to “clarify” parts of Section 230 — a role the commission isn’t likely eager to embrace.

“Social media can be frustrating. But an executive order that would turn the FCC into the president’s speech police is not the answer,” Democratic FCC commissioner Jessica Rosenworcel tweeted on Thursday morning.

The order also calls for the U.S. Attorney General William Barr to form a working group of state attorneys general “regarding the enforcement of state statutes” to collect information about social media practices, another presumably legally unsound exercise in partisanship. Barr, a close Trump ally, has expressed his own appetite for dismantling tech’s legal protections in recent months.

While Trump’s executive order may prove toothless, there is some appetite for dismantling Section 230 among tech’s critics in Congress — a branch of the government with much more power to hold companies accountable.

The most prominent of those threats is currently the EARN-IT Act, a Senate bill introduced in March that would amend Section 230 “to allow companies to “‘earn’ their liability protection” under the guise of pressuring them to crack down on enforcement against child sexual exploitation. The executive order doesn’t directly connect to that proposal, but sounding the war drums against the tech industry’s key legal provision will likely signal Trump’s Republican allies to double down on those efforts.

In response to the circulating draft executive order, Twitter declined to comment when reached by TechCrunch, and Facebook and Google did not respond to our emails. The Internet Association, the lobbying group that represents the interests of internet companies, was out with a statement opposing the president’s efforts on Thursday morning:

“Section 230, by design and reinforced by several decades of case law, empowers platforms and services to remove harmful, dangerous, and illegal content based on their terms of service, regardless of who posted the content or their motivations for doing so.

“Based on media reports, this proposed executive order seems designed to punish a handful of companies for perceived slights and is inconsistent with the purpose and text of Section 230. It stands to undermine a variety of government efforts to protect public safety and spread critical information online through social media and threatens the vibrancy of a core segment of our economy.”

The group also pointed to the fact that political figures rely on social media to successfully broadcast their thoughts to millions of followers every day—80 million, in Trumps’ case.

The ACLU also weighed in on the executive order Thursday morning. “Much as he might wish otherwise, Donald Trump is not the president of Twitter,” said ACLU Senior Legislative Counsel Kate Ruane. “This order, if issued, would be a blatant and unconstitutional threat to punish social media companies that displease the president.”

“Ironically, Donald Trump is a big beneficiary of Section 230. If platforms were not immune under the law, then they would not risk the legal liability that could come with hosting Donald Trump’s lies, defamation, and threats.”



from Social – TechCrunch https://ift.tt/eA8V8J Going to war with Twitter, Trump threatens critical social media legal protections Taylor Hatmaker https://ift.tt/3guZJ4A
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