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Oculus co-founder and games industry vets form Mountaintop Studios

Oculus co-founder Nate Mitchell is heading up a new game development house called Mountaintop Studios, joined by colleagues from around the gaming industry. The company aims to leave the crunch and toxic culture pervasive in game studios behind and make one that’s “collaborative, anti-crunch, diverse and inclusive.”

The founding team includes Mitchell’s former colleague Mark Terrano, who was creative director at Oculus, Matt Hansen, former COO of Double Fine, and artist Rich Lyons, who worked at Naughty Dog and Vigil.

According to its webpage, Mountaintop will be creating “multiplayer games for players who crave a challenge,” though when I chatted with Mitchell and Hansen, they cited mostly single-player titles. The theme they came back to was growth and a journey: mystery, but also mastery.

As the company’s initial blog post puts it:

It isn’t just the thrill of victory. It’s looking back and seeing how far you’ve come. How you were forced to grow, adapt and improve. It’s the satisfaction of knowing you’re better than you were before. And sometimes, it’s sharing the joy of the climb with your friends.

While it’s too early for the team to reveal details on their first game, “We think we’re onto something,” Mitchell said. Considering the time and effort it takes to create a AAA game these days, and the fact that Mountaintop is currently only five full-timers, we can probably expect the first details no earlier than next year.

But the founders were clear that the company is also about getting away from the culture problems in game development.

“What we really want to do is have a studio that is people first,” Mitchell said. “There are so many folks across the industry who have just been burnt out by endless crunch. And the expectations around hours don’t allow for any sort of work-life balance. We want Mountaintop to be a place where people can come and still have that.”

But it isn’t just labor issues of crunch and overtime plaguing gaming. Racism and sexism that are endemic and evident in both the final products and companies themselves. And it must be said that the founders themselves follow one of the most common and unfortunate trends in the industry: All four are white men.

Mitchell and Hansen declined to make any specific commitments as far as diversity and inclusion go, despite those values being central to the new studio. They did, at least, acknowledge the difficulty and complexity of this pursuit.

“There’s no silver bullet for inclusivity, a lot of it is long-term work,” Mitchell said. “Because it’s a fresh studio, a fresh culture, we can start from scratch with the right foundation. We never thought when we kicked off the studio that we’d be launching in the middle of not just a pandemic, but a global conversation about institutionalized racism, police violence and injustice. So talking about that stuff internally, where we stand as individuals and as a company, that informs how we act as a company.”

“One of the earliest conversations we had was around getting the culture right. Our founders are all aligned in this,” added Hansen.

“There’s a bunch of micro things we can do every day,” continued Mitchell. “Setting our cultural values, making sure people understand those, driving toward inclusivity and diversity training, excellent hiring practices, working with community groups and integrating and supporting them, maybe recruiting from there.”

It’s a lot of promises and few concrete commitments, a common theme in tech and gaming these days. Having one’s heart in the right place is nice, but what the industries need is action. Hopefully the promises are preludes to lasting decisions, but only time (plus real and sustained effort on Mountaintop’s part) will tell.

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Dear Sophie: Is immigration happening? Who can I hire?

Sophie Alcorn
Contributor

Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.

Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

“Dear Sophie” columns are accessible for Extra Crunch subscribers; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.


Dear Sophie:

What is going on with recent USCIS furloughs and Trump’s H-1B ban?

I handle recruitment for several tech companies. Is immigration happening? Who can I hire?

—Frustrated in Fremont

Dear Fremont:

Immigration is still possible and I will explain how below. The administration continues to miss the mark with immigration policy. Trump’s U.S. unemployment “solution” of cutting off the stream of global talent to the U.S. is short-sighted. The administration is shooting America in the foot by walling off the promise of post-COVID economic revitalization and job-creation for Americans through the talent of immigrant entrepreneurs, investors and talent.

USCIS just provided a 30-day furlough notice to more than 70% of its employees. Reporters have been reaching out to me every day requesting stories of affected immigrants and HR professionals; please sign up to share your immigration story with journalists.

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To promote diversity, rewire your broken corporate culture

Travis Montaque
Contributor

Travis Montaque is CEO of Holler and made Entrepreneur Magazine’s 2018 Most Daring Entrepreneur’s list for his work in branding consumer conversations. He was also named as one of Forbes’ 30 under 30 in 2016.

We have a problem. In tech, our companies are not diverse.

This is something we’ve known for a long time, but in an industry where we’ve innovated and solved some of the world’s most challenging problems, we have continued to fail here. I am one of few Black tech CEOs and I too have historically not done as much as I should have to harness the power of diversity in my business. I have been fast at work to change this, but I’ve learned that it requires rewriting the entire playbook.

To better approach the lack of diversity in tech, one-dimensional diversity agendas will not cut it. Company cultures across the board need to be rewired at their core. Change has to happen at every level, from leadership to individual employees — even how a corporation behaves as an entity.

Diversity is advantageous both for employees and the bottom line, but static, siloed diversity programs will not create systemic change. Shifting the company mindset around diversity means creating excitement around our differences, changing the idea that diversity is a zero-sum game and approaching diversity like every other challenge we face.

It can be tempting to introduce a diversity agenda and say you’ve solved the problem. A step beyond this involves diversity and inclusion initiatives that aim to get more people in the door and create support networks within the company walls. It’s not just about meeting D&I standards; the goal is to foster a sense of belonging for all employees.

Everyone should feel that their individuality, sexual orientation, gender and heritage are celebrated within the workplace, not just tolerated. Through diverse viewpoints, ideas can be challenged and made better. Without this level of acceptance and genuine excitement at every level of the organization, diversity initiatives will continue to fall flat.

When thinking about diversity, inclusion and belonging, leaders must consider ways to engage the full group instead of creating support groups for small portions of your staff. True diversity in the workplace requires a holistic approach where the entire team is participating and engaged.

It shouldn’t come as a surprise that on the most basic level, people want to feel seen and appreciated. Personally, I’ve always leaned into diverse cultural experiences. I would go to my friend’s Passover even though I am not Jewish. My friends and other guests didn’t care that I didn’t know what was about to happen — they appreciated that I was there and willing to learn. I’m trying to take this same emotional interaction and apply it to Holler’s culture. We need to look for ways to acknowledge that we are here and ready to learn about experiences other than our own. And remember — we don’t have to have all the answers.

To address this, we’ve recently started to create holidays (or as we call them, Hollerdays) where we as a company will acknowledge and honor the holidays from various heritages, races and religions that our employees celebrate. This is not just a free day off. This is an opportunity for all of us to learn and celebrate cultures outside of our own.

Education is the key element in diversity-focused activities having real impact. We need to create normalcy around educational opportunities. Through education, opportunities to acknowledge and celebrate diverse life experiences begins to be baked into the company culture.

When introducing new educational opportunities, we must show that they are beneficial for everyone, not just catered to minority groups or hosted in order to meet a diversity standard. Corporate diversity can often feel like a box that can be checked by hiring more ethnically diverse candidates or implementing a program to help those individuals assimilate. What’s worse is that anything beyond these initiatives is perceived as special treatment or a chore to the full team. If an educational moment feels like a negative to employees, the outcome will be negative and mass adoption of equitable and inclusive company cultures will be slow.

To introduce new educational programs at Holler, we recently asked one of the BLM founders, Opal Tometi, to speak with our employees in a live Q&A. This was during work hours and highly encouraged, but not required. It was a communal activity where we were able to discuss different perspectives and continue thinking about how we can each do better on an individual level. We created excitement around it and reinforced that these types of discussions are a company priority.

The language we use around diversity also has a hand in creating real change. We need to focus on diversity as a way of lifting the entire ship and creating an equitable society. In tech specifically, team members who can think outside of their own lived experiences have a stronger sense of emotional intelligence. They can build algorithms or projects that address a larger collective — mitigating issues like biased machine learning solutions. They become more competitive as employees.

A community focused on diversity, inclusion, and belonging will have a competitive advantage. Frankly, it’s the morally right thing to do. Business leaders should monitor the execution of diversity and inclusion programs to ensure equity and belonging are a part of the conversation as well.

We as leaders in technology need to treat diversity and inclusion the same way we do any other tech challenge — with agility and openness to iteration. Many companies use agile methodology to yield the best results. To solve complex problems, agile practices encourage adaptability and promote continuous improvement, flexibility, collaboration and high quality. We must do the same for diversity.

With so much pressure to change and do better, it is tempting to implement new policies and say that you are automatically diversity focused. Immediately stating how your company will “fix the problem” is a band-aid approach that often misses the larger task at hand. It also does not involve enough follow through. Rewiring your company culture to be more inclusive and diverse requires continuous effort, a commitment to hearing feedback and evolving as you learn.

As a CEO, I’m trying to understand how each and every person within my company views diversity. Yes, this even includes white males. We need the perspectives of everyone in order to foster a sense of belonging and create company cultures that systematically embrace diverse backgrounds. We all need to be a part of the conversation and willing to grow.

I’m also continuing to speak and listen to other business leaders to hear how they are approaching change. Not a single one of us has the answer, but through sharing ideas and really listening to what is working (and what’s not), we can start to make sustainable change.

Think of diversity as an industry-wide open-source project. We cannot work in silos. Isolation will lead to furthering our fragmented industry and leave us without a standard for how all humans should be treated within the tech community.

Sharing ideas and progress can be intimidating, but it’s okay to fail. The agile methodology promotes the idea of failure as an outcome and empowers iteration. We need to allow companies to miss the mark sometimes, as long as they are trying and iterating. Businesses inevitably won’t get this right every time.

I’ve heard from white male executives that one of their biggest fears is rolling out well-intentioned initiatives and getting “canceled” when it doesn’t work out perfectly. If we do not allow today’s business leaders to make mistakes, we’ll suffocate progress. We need to focus on the good intent and keep moving forward.

We each have to take on the responsibility to make change happen — at a corporate and an individual level. Once we learn to celebrate everyone at our companies for who they truly are, shift the rhetoric away from who wins and who loses in the fight for equity, and evolve our approach to problem solving, we can begin to make systemic changes to our company cultures. The process is only beginning and it is going to take all of us doing our part to fundamentally alter how we approach corporate diversity conversations.

We must take our next steps together.

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Health class is outdated, so Lessonbee wants to fix it

Sex education in the United States is complicated.

One example: For decades, the United States invested billions into abstinence-only programs. Eventually, schools rejected government funding for these programs and pushed a more comprehensive and medically accurate agenda. Even with progress, schools across the country continue to reckon with a legacy of inaccuracy. And the government is still funding abstinence-only programs.

It’s bad news for students, and for founder of Lessonbee Reva McPollom, a change is long overdue. She can personally vouch for how non-comprehensive education in health classes can isolate students.

As a child, McPollom said she was called a tomboy and felt confused because she identified as a female. There was no lesson teaching the danger of gender stereotypes and norms.

“I felt wrong for liking sports, for wanting to play drums, I felt wrong for everything that I loved or liked or attached myself too as part of my identity,” she said.

The silent suffering, she says, continued through high school: “If you look at my senior yearbook, like I’m not even in it, I just totally erased myself by that point.”

Reva McPollom, the founder of Lessonbee (Image Source: Lessonbee)

After working as a journalist, digital marketer and a software engineer, McPollom returned to her past with a new idea. She founded Lessonbee, a more comprehensive health education curriculum provider to express diverse scenarios in schools. The company’s goal is to help students avoid what she had to go through: missing out on the joy of education and feeling worthy enough to learn.

The company sells a curriculum that covers a range of topics, from sex education to race to mental health, that integrates into existing K-12 school districts as a separate standalone course. The topics themselves then break down into smaller focus areas. For example, with the race unit launching soon Lessonbee will tackle the effects of race and ethnicity on quality of care, maternal health and food insecurity.

Lessonbee has hundreds of educational videos and interactive lessons created by teachers and the company, updated regularly. Each lesson also comes with a downloadable guide that describes content, objectives and recommendations for homework and quizzes. Lessonbee gives a guide for how to create culturally inclusive education, in line with standards put out by National Health Education and National Sexuality Education.

Image Source: Lessonbee

“It needs to meet all types of kids, regardless of where they’re at,” McPollom said.

One example scenario in the curriculum includes a student who starts having sex and then misses her period. Learners are then responsible for choosing what to do next, who to talk to and what they should do next time. It’s a “choose your adventure”-style learning experience.

Students can log onto the platform and take self-paced classes on different health units, ranging from sex education to mental health and racism. The lessons are taught through text-message scenarios or gamified situations to make sure students are actively engaging with the content, McPollom tells TechCrunch.

Image Source: Lessonbee

State policy regarding education is often a nightmare of intricacies and politics. This is part of the reason so few startups try to solve it. If Lessonbee were to pull off its goal, it would initiate bigger conversations around racism and health into a kid’s day-to-day.

McPollom is currently pitching the service to school districts, which have tight budgets, and venture capitalists, who say they are open for business. So far, the company has 600 registered schools on its platform.

“It’s a non-core academic subject so it’s the last priority, and there’s just inequity all over the place,” she said. “There’s a mismatch of privacy policies across the United States handled differently and it kind of dictates the quality of health education that you’re going to receive.”

Lessonbee subscription is priced low to be more accessible, starting at $16 per learner annually. Individual courses start at $8 per learner annually.

Today, McPollom announced that she has raised $920,000 in financing.

As for the future, McPollom views her go-to market health class strategy as Lessonbee’s “Trojan horse.” She wants to integrate the culturally diverse curriculum into social studies or science classes, and cover how interconnected the subjects are and their ties to inequity and health.

McPollam says the team is developing an anti-racism course to introduce for the fall in the wake of the recent protests against police brutality. Topics in the anti-racism course include the effect of race and ethnicity on quality of care, ways racism impacts maternal health and structural racism and food insecurity.

“We’re hoping to evolve to this idea of health across the curriculum,” she said. “For health to be effective, for you to actually move the needle, health needs to be holistic.”

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Tune-up your pitch tomorrow at Pitchers & Pitches

Ready to breathe some life into your 60-second pitch? Turn your internet dial to our next Pitchers & Pitches webinar tomorrow, July 1 at 4 p.m. EDT/1 p.m. PDT. It’s free for everyone, and all you need to do is register right here.

Tune in as five early-stage startup founders (all of whom you’ll find exhibiting in Digital Startup Alley during Disrupt 2020) step to the mound to bring the heat. Translation: They’ll deliver their best 60-second elevator pitch to a panel of judges — and benefit from real-time critique, feedback and advice from industry experts who know how to craft a winning pitch.

Judging this session we have pitch-savvy TechCrunch editors, Jordan Crook and Kirsten Korosec, plus two VCs — Matthew Hartman of Betaworks Ventures and Dayna Grayson of Construct Capital. Yes, essential feedback from startup investors — the very people founders need to impress most.

Not only will the five pitching founders come away with a stronger presentation, one of them will walk away with a pretty cool prize. The viewing audience (that would be you) decides who wins a consulting session with cela, a company that connects early-stage startups to accelerators and incubators that can help scale their businesses.

Note: Only companies that purchase a Disrupt Digital Startup Alley Package are eligible to pitch. You’ll still learn valuable tips and strategies — even if you’re not facing the judges. Watch, listen and apply the expert tips and strategies to power up your pitch — your handshake to the startup world. This is your chance to make it firm and impressive.

Here are the startups we randomly selected to compete tomorrow:

Cognidna — provides DNA insights on cognitive traits, helping parents make more informed educational decisions for their children.

Munch — a digital platform for restaurants designed to create better customer experiences.

Flexlane — an online wholesale marketplace that transforms the way local retailers in Asia buy for their stores.

Bitsensing — aims to design future safety in the era of autonomous vehicles.

Evertracker — a neutral platform that provides end-to-end visibility and predictability along global supply chains on an item level.

Don’t miss this masterclass. Register for Pitches & Pitchers and tune in tomorrow, July 1 at 4 p.m. EDT/1 p.m. PDT. If you want a shot at pitching during the Pitchers & Pitches session scheduled on July 22, be sure to buy your Disrupt Digital Startup Alley Package first to be eligible.

Is your company interested in sponsoring or exhibiting at Disrupt 2020? Contact our sponsorship sales team by filling out this form.

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E-scooter firms get the green light to start trials of up to one year on UK streets

In light of COVID-19 and social distancing regulations, the U.K. has been working on making it easier for people to get from point A to B in cities without resorting to buses and trains or bringing more cars to congested roads, and today that strategy took an interesting leap forward.

The country’s Department for Transport today announced that it would start allowing e-scooters, by way of e-scooter rental companies, to legally operate across the country initially in a trial phase starting no later than August. Councils and other authorities, including across London and other major cities, are working on putting together trials that could run for as long as 12 months under guidelines provided by the government.

The regulations come into force on July 4, the DfT said, with the first trials expected to begin a week later.

“As we emerge from lockdown, we have a unique opportunity in transport to build back in a greener, more sustainable way that could lead to cleaner air and healthier communities across Great Britain,” said Transport Minister Rachel Maclean in a statement. “E-scooters may offer the potential for convenient, clean and cost-effective travel that may also help ease the burden on the transport network, provide another green alternative to get around and allow for social distancing. The trials will allow us to test whether they do these things.”

There are some restrictions in place: E-scooters will not be able to go faster than 15.5 miles per hour, and they will only be able to use roads and cycle lanes, not sidewalks or other areas reserved for pedestrians. Users will need a drivers license (full or provisional). The scooters themselves will not need to be registered as vehicles but will need insurance. As with bicycles, users will be recommended — but not required — to wear helmets.

It seems that privately owned e-scooters will not be included in the rule relaxation, but it’s not clear what steps regulators will take — if any — to avoid the cluttering that we have seen in some cities overrun with too many dockless scooters crowding sidewalks.

The list of e-scooter hopefuls is long. From the word go, those that are looking to operate in the U.K. include Bird, Bolt (the ridesharing startup out of Estonia), Tier, Neuron Mobility, Lime, Voi and Zipp Mobility.

We’re contacting the DfT with our questions and will update this post as we learn more.

Electric scooters will now join the ranks of other shared transportation options that include bikes and e-bikes, as a complement to mass transit and of course walking or using your own nonautomotive wheels as an alternative to using cars. E-scooters have been seen both as an alternative for short distances (between 1 and 5 miles) but also as a last-mile solution in combination with other transport modes aimed at longer distances, like buses and trains.

The news today lifts restrictions that had previously been in place that classified e-scooters as motor vehicles and therefore required the e-scooters to be licensed and taxed, and for operators to have licenses to use them.

Those rules also meant that the e-scooters were illegal to use on sidewalks, with the only exception to all that being legal usage across select (and very limited) campuses on private land.

The moves come on the heels of a consultation in March to pilot e-scooter use in three regions of the U.K., along with a number of other initiatives including e-cargo carriers and using drones to transport medical supplies — the aim being to explore in quick order a number of new technologies to expand transportation options available to consumers, as well as essential businesses and the people who work in them.

The bigger trend has seen other cities also looking to relax rules to improve transportation options to people who wish to socially distance but still need to get around urban areas in ways that are quicker than walking. New York City is also expected to unveil its own roadmap for e-scooter pilots in the near future.

The news made official today had been something of a badly kept secret, specifically among transportation startups whose businesses have been in a holding pattern waiting for the regulator to ease up on restrictions that had been in place.

Just about all of those startups have been sending out alerts to journalists for over a week now with comments on the government’s widely expected announcements.

“We welcome the DfT’s announcement and are excited to be one step closer to the starting of e-scooter trials,” said Zachary Wang, CEO of Neuron Mobility, in a statement. “We are already in discussions with quite a few councils, as no two towns or cities are the same we look forward to partnering with them to safely introduce e-scooters in a way that best suits their individual needs. COVID-19 has led to a fundamental rethink of the way we travel and e-scooters have the potential to radically improve how we get around our towns and cities. We are delighted that people in the U.K. will soon be able to benefit from shared e-scooters. They will allow people to continue social distancing while also providing a more efficient travel option than gas-guzzling alternatives.”

Some have been waiting for a chance to operate for some time.

“We welcome today’s announcement from the government as it looks to get cities moving again safely and in an environmentally friendly way,” said Roger Hassan, COO of TIER Mobility, in a statement. “We already have more than 1,000 of our industry leading scooters in our U.K. warehouse, ready to be deployed and we will be shipping more over very soon. Everyone at TIER is looking forward to working with the government and with local authorities to make e-scooters in the U.K. a huge success story.”

While there had been restrictions in place before now, I should point out that they were often badly enforced: In London there have always been some private e-scooter owners zooming around alongside bikes and cars on the roads, and I’ve even stopped at red lights on my bike, with an e-scooter on one side of me and a police officer on the other, and not a word gets exchanged, just a simple shrug of “What can you do?” So decriminalising, as it has done in other industries, will hopefully mean better oversight, alongside better choice for users.

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R&D tax credits are due July 15. Neo.tax wants to help startups apply and raised $3M to do it

All founders love “free” money, but with the pandemic going on, the necessity of free money has taken on a whole new meaning this year. First, there was the scramble to secure PPP loans a few weeks back for U.S.-based startups, and then the second wave of PPP loans when Congress offered a second tranche of funding. Two weeks ago, I covered a company called MainStreet, which is helping startups apply for local economic development credits that cities offer to businesses relocating to their regions.

In the same vein, neo.tax wants to help startups secure R&D research credits from the federal government — which tend to be fairly easy to acquire for most software-based startups given the current IRS rules for what qualifies as “research.”

The free money is good, but what sets this startup apart is its ambitious vision to bring machine learning to company accounting — making it easier to track expenses and ultimately save on costs.

It’s a vision that has attracted top seed investors to the startup. Neo.tax announced today that it raised $3 million in seed funding from Andy McLoughlin at Uncork Capital and Mike Maples at Floodgate, with Michael Ma at Liquid 2 Ventures and Deena Shakir at Lux Capital participating. The round closed last week.

Neo.tax was founded by Firas Abuzaid, who spent the past few years focused on a Ph.D in computer science from Stanford, where he conducted research in machine learning. He’s joined by Ahmad Ibrahim, who most recently was at Intuit launching small business accounting products; and Stephen Yarbrough, who was head of tax at Kruze Consulting, a popular consultancy for startups on accounting and financial issues. Leonardo De La Rocha, who was creative director of Facebook Ads for nearly five years and currently works at Intuit, is an official advisor to the company.

Neo.tax’s co-founders Stephen Yarbrough, Firas Abuzaid and Ahmad Ibrahim. Image Credits: Neo.tax

Or in short, a perfect quad of folks to tackle small business accounting issues.

Neo.tax wants to automate everything about accounting, and that requires careful application of ML techniques to an absolutely byzantine problem. Abuzaid explained that AI is in some ways a perfect fit for these challenges. “There’s a very clearly defined data model, there’s a large set of constraints that are also clearly defined. There’s an obvious objective function, and there’s a finite search space,” he said. “But if you wanted to develop a machine-learning-based solution to automate this, you have to make sure you collect the right data, and you have to make sure that you can handle all of the numerous edge cases that are going to pop up in the 80,000 page U.S. tax code.“

That’s where neo.tax’s approach comes in. The software product is designed to ingest data about accounting, payroll and other financial functions within an organization and starts to categorize and pattern match transactions in a bid to take out much of the drudgery of modern-day accounting.

One insight is that rather than creating a single model for all small businesses, neo.tax tries to match similar businesses with each other, specializing its AI system to the particular client using it. “For example, let’s train a model that can target early-stage startups and then another model that can target Shopify businesses, another one that can target restaurants using Clover, or pizzerias or nail salons, or ice cream parlors,” Abuzaid said. “The idea here is that you can specialize to a particular domain and train a cascade of models that handle these different, individual subdomains that makes it a much more scalable solution.”

While neo.tax has a big vision long term to make accounting effortless, it wanted to find a beachhead that would allow it to work with small businesses and start to solve their problems for them. The team eventually settled on the R&D tax credit.

“That data from the R&D credit basically gives us the beginnings of the training data for building tax automation,” Ibrahim explained. “Automating tax vertical-by-vertical basically allows us to be this data layer for small businesses, and you can build lots of really great products and services on top of that data layer.“

So it’s a big long-term vision, with a focused upfront product to get there that launched about two months ago.

For startups that make less than $5 million in revenue (i.e., all early-stage startups), the R&D tax credit offers up to a quarter million dollars per year in refunds from the government for startups who either apply by July 15 (the new tax date this year due to the novel coronavirus) or who apply for an extension.

Neo.tax will take a 5% cut of the tax value generated from its product, which it will only take when the refund is actually received from the government. In this way, the team believes that it is better incentive-aligned with founders and business owners than traditional accounting firms, which charge professional services fees up front and often take a higher percentage of the rebate.

Ibrahim said that the company made about $100,000 in revenue in its first month after launch.

The startup is entering what has become a quickly crowded field led by the likes of Pilot, which has raised tens of millions of dollars from prominent investors to use a human and AI hybrid approach to bookkeeping. Pilot was last valued at $355 million when it announced its round in April 2019, although it has almost certainly raised more funding in the interim.

Ultimately, neo.tax is betting that a deeper technical infrastructure and a hyperfocus on artificial intelligence will allow it to catch up and compete with both Pilot and incumbent accounting firms, given the speed and ease of accounting and tax preparation when everything is automated.

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Hear Charles Hudson explain how to sell an idea (without a product) at Early Stage

Startups often dance between selling dreams and building products, and we’ve enlisted the help of noted investor Charles Hudson to help founders sell an idea before they’ve built a product. Hudson is speaking at TechCrunch’s inaugural virtual event, TechCrunch Early Stage. The two-day event runs July 21 and 22 and will feature sessions targeting all aspects of building a startup.

Hudson has seen a lot of startups over his career as an investor and knows what it takes to sell an idea when there isn’t yet a product. As he’ll explain, this is often a tough skill to learn, and it takes practice to craft the correct message that shows obtainable goals while putting the investor at ease.

Charles Hudson is a managing partner at Precursor Ventures, where he focuses on pre-seed investments in companies building B2B and B2C software applications. Before this role, he was an investor at Uncork Capital (formerly SoftTech VC) and In-Q-Tel, the VC arm of the U.S.’s Central Intelligence Agency. Along the way, he’s held various executive and board positions at startups and organizations.

Hudson’s session at TC Early Stage is a must-watch for early-stage founders. Startups begin as an idea, and often that idea needs funds to turn into a product. Hudson will help show founders how to get an investor to buy into the concept before the product is built.

TC Early Stage takes place over two days in July and features 50+ experts across startup core competencies, such as fundraising, operations and marketing. The virtual event features some of the best operators, investors and founders in the startup world. Hear from Ann Miura-Ko on how to find a product-market fit. Ali Partovi is set to talk about how to hire early engineers, and Caryn Marooney’s session will explore how to make your brand stand out.

What’s more, most of the speakers, who happen to be investors, are participating in TechCrunch’s CrunchMatch, our program that connects founders to investors based on shared interests.

Here’s the fine print. Each of the 50+ breakout sessions is limited to around 100 attendees. We expect a lot more attendees, of course, so signups for each session are on a first-come, first-serve basis.

Buy your ticket today, and you can sign up for the breakouts we are announcing today, as well as those already published. Pass holders will also receive 24-hour advance notice before we announce the next batch. (And yes, you can “drop” a breakout session in favor of a new one, in the event there is a schedule conflict.) 

Get your TC Early Stage pass today and jump into the inside track on the sessions we announced today, as well as the ones to be published in the coming days.

Possible sponsor? Hit us up right here.

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Société Générale is acquiring freelancer challenger bank Shine

Société Générale is acquiring French startup Shine. Terms of the deal are undisclosed. According to a source, Shine is getting acquired for around €100 million in an all-cash deal (around $112.6 million).

The startup had previously raised €10.8 million ($12.2 million) in total from Daphni, Kima Ventures, XAnge and various business angels.

If you’re not familiar with Shine, the startup has been building a challenger bank for freelancers and small companies in France. It lets you create a business account, get a debit card and take care of some of the most boring administrative tasks.

For instance, Shine helps you incorporate your company and also lets you create invoices directly from the app. You can send a link to your client, you get a notification when your client opens the invoice and they can view your Shine IBAN directly on the invoice.

And because the invoicing tool is integrated with your business bank account, your invoices are automatically marked as paid in the app.

When it comes to receipts, you can also open a card transaction and attach a receipt to that transaction. This way, all accounting information remains in the same app. If you’re working with an accountant, you can set up an automatic export of receipts, invoices and transactions once per month.

But the best feature of Shine is that it helps you stay on top of paperwork. You receive notifications to remind you that you should pay your taxes, you can see how much money will be left once you paid your taxes and more.

And it’s been working well with 70,000 freelancers and very small companies using Shine for their bank account. But Shine is built on top of Treezor, a banking-as-a-service company that provides financial services and debit cards to other fintech companies. At this scale, it would make sense for Shine to build its own infrastructure.

Shine has taken a different decision and is joining Société Générale, which also happens to be the company that acquired Treezor a few years ago.

Shine will operate independently from Société Générale and will still accept new customers — the two co-founders are staying at the helm of Shine. But the two companies have plans to cross-promote their respective offerings.

Société Générale could offer Shine to its business customers. And as freelancers start working with other people and turn their small independent business into a full-fledged company, Shine could also tell its customers to choose Société Générale for their business bank account.

Shine will also take advantage of Société Générale’s banking license and products. As a Shine customer, you could imagine getting a credit line from Société Générale. Having a banking giant behind you could greatly improve Shine’s offering. Now, let’s see if Société Générale manages to boost the potential of Shine.

Update: A spokesperson from Société Générale and a spokesperson from Shine have refuted the price of the acquisition. According to new information that I obtained from sources, the acquisition is happening over several tranches with the first payment currently happening. Combined, those tranches represent a total amount of around €100 million. In addition to that, founders will receive cash incentives if they can achieve certain goals over several years.

Image Credits: Shine

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Google acquires smart glasses company North, whose Focals 2.0 won’t ship

Google confirmed today via blog post that it has acquired Canadian smart glasses company North, which began life as human interface hardware startup Thalmic Labs in 2012. The company didn’t reveal any details about the acquisition, which was first reported to be happening by The Globe and Mail, last week. The blog post is authored by Google’s SVP of Devices & Services Rick Osterloh, which cites North’s “strong technology foundation” as a key driver behind the deal.

Osterloh also emphasizes Google’s existing work in building “ambient computing,” which is to say computing that fades into the background of a user’s life, as the strategic reasoning behind the acquisition. North will join Google’s existing team in the Kitchener-Waterloo area, where North is already based, and it will aid with the company’s “hardware efforts and ambient computing future,” according to Osterloh.

In a separate blog post, North’s co-founders Stephen Lake, Matthew Bailey and Aaron Grant discuss their perspective on the acquisition. They say the deal makes sense because it will help “significantly advance our shared vision,” but go on to note that this will mean winding down support for Focals 1.0, the first-generation smart glasses product that North released last year, and cancelling any plans to ship Focals 2.0, the second-generation version that the company had been teasing and preparing to release over the last several months.

Focals received significant media attention following their release, and provided the most consumer-friendly wearable-glasses-computing-interface ever launched. They closely resembled regular optical glasses, albeit with larger arms to house the active computing components, and projected a transparent display overlay onto one frame which showed things like messages and navigation directions.

Around the Focals 1.0 debut, North co-founder and CEO Stephen Lake told me that the company had originally begun developing its debut product, the Myo gesture control armband, to create a way to interact naturally with the ambient smart computing platforms of the future. Myo read electrical pulses generated by the body when you move your arm, and translated that into computer input. After realizing that devices it was designed to work with, including VR headsets and wearable computers like Google Glass, weren’t far enough along for its novel control paradigm to take off, they shifted to addressing the root of the problem with Focals.

Focals had some major limitations, however, including initially requiring that anyone wanting to purchase them go into a physical location for fitting, and then return for adjustments once they were ready. They were also quite expensive, and didn’t support the full range of prescriptions needed by many existing glasses-wearers. Software limitations, including limited access to Apple’s iMessage platform, also hampered the experience for Apple mobile device users.

North (and Myo before it) always employed talented and remarkable mechanical electronics engineers sourced from the nearby University of Waterloo, but its ideas typically failed to attract the kind of consumer interest that would’ve been required for sustained independent operation. The company had raised nearly $200 million in funding since its founding; as mentioned, no word on the total amount Google paid, but it doesn’t seem likely to have been a blockbuster exit.

In an email to North customers, the company also said it would be refunding the full amount paid for any Focals purchases — likely to defray any complaints about the end of software support, which occurs relatively soon, on July 31, 2020.

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