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Attract, engage and retain employees in the new remote-work era

Irene DeNigris
Contributor

Irene DeNigris, chief people officer of iCIMS, has a passion for cultivating a highly engaged, high-performance culture.

When looking for answers, where do people first turn? For many, it’s Google.

During the first half of March, we saw Google searches for “work from home” reach a 12-month high, garnering at least 50% more search interest than the anticipated peak, which usually occurs within the first week of January. This number will continue to grow as outside circumstances evolve.

This search behavior reflects the world around us. Today, employees and employers alike are grappling with the new norm — at least for the short-term — which is working remotely. While having a remote-ready model in place was once viewed as a competitive advantage to attract talent, it’s now a must-have to keep organizations afloat.

With vacant positions costing organizations around $680 daily, the impact that interrupted recruiting efforts can have on a business’ bottom line is jarring. As such, HR professionals were early adopters of successful remote communication practices, learning lessons that can be applied across the business to successfully make personal connections without being in-person. Employers are doing all they can to address their existing employee base at this critical time, while also working hard to maintain their hiring efforts.

Having the right technology in place to sustain work-from-home practices is more important now than ever before. There are four steps that employers can take to successfully integrate and adapt successful virtual hiring technologies into their business continuity plans, considering all outside circumstances, and without sacrificing their productivity and unique company culture.

Prepare and plan. Employers have an obligation to provide their people with clear direction in times of disruption.

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When is it time to stop fundraising?

Russ Heddleston
Contributor

Russ is the co-founder and CEO of DocSend. He was previously a product manager at Facebook, where he arrived via the acquisition of his startup Pursuit.com, and has held roles at Dropbox, Greystripe, and Trulia. Follow him here: @rheddleston and @docsend

No one wants to prepare for their fundraising round to fail. Many founders spend months (or even years) getting their businesses to a point where they’re ready to pitch investors. But there are times when, no matter how hard you try, you’re just not going to be able to close a deal.

With the current COVID-19 pandemic, the entire VC community is in a state of uncertainty, and there is no clear answer when it comes to the question, “can I still raise funds for my company?” However, there’s hope for early-stage startups. We used the 2020 DocSend Startup Index to track Pitch Deck Interest among investors and found that last week, despite seismic changes across the country, pitch deck interest has only been 11.6% lower than the same week in 2019 so far.

We will be monitoring the Pitch Deck Interest Metric in the coming weeks, but if you’re an early-stage startup and you were planning to raise, there is still opportunity to come away with a term sheet. But if things don’t go as planned, how do you know if it’s time to give up or if you just need to push through?

According to recent DocSend data, you’ll know pretty quickly if it’s time to call it quits. While the average founder who was successful in fundraising contacted 63 investors during their process, startups that weren’t able to raise funds stopped at 27. Why stop? Because the founder listened to the feedback they were getting. If you hear the same concern or piece of feedback twice you should take it to heart, but if you hear it three times you probably need to stop and rethink things.

time spent reading pitch decks

The Pitch Deck Interest Metric declined 11.6% compared to the same week in 2019

According to our study on the fundraising process of pre-seed startups, founders who were unsuccessful in raising had just nine meetings. That should give you enough feedback to know if you have a deal breaker in your deck.

But negative feedback doesn’t mean all is lost. In fact, of startups studied in the 2020 DocSend Startup Index, 86% reported that they were going to try to fundraise again after addressing the feedback they’d received.

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Now might be the perfect time to rethink your fundraising approach

Russ Heddleston
Contributor

Russ is the co-founder and CEO of DocSend. He was previously a product manager at Facebook, where he arrived via the acquisition of his startup Pursuit.com, and has held roles at Dropbox, Greystripe, and Trulia. Follow him here: @rheddleston and @docsend

Many founders will have kicked off the new year with a new fundraising round. According to the data we shared last year, March, October and November were the months when VCs were reviewing the most decks.

But the COVID-19 pandemic has ground to a halt many industries, and there are even warnings that this will affect the next two quarters in regards to fundraising.

We’ve reviewed the data in our 2020 DocSend Startup Index and we’ve begun tracking the Pitch Deck Interest Metric. With San Francisco under a shelter-in-place order and many VCs scrambling to adjust their processes to an all-remote world, we saw pitch deck interest drop 11.6% when compared to the same week in 2019. While there has been a drop in interest so far, there is still a lot of activity, and VCs seem to still be reading pitch decks.

We will be monitoring the Pitch Deck Interest Metric in the coming weeks, but if you’re an early-stage startup and are in the middle of your fundraise, or are about to fundraise, there are some things you can do to help insure your startup is ready for funding before you meet with any (more) investors.

time spent reading pitch decks

The Pitch Deck Interest Metric declined 11.6% compared to the same week in 2019

Expectations have shifted and will continue to do so

If you were about to kick off a fundraising round, you should have been prepared to contact 50 or more investors, have 20-30 meetings and spend somewhere around 20 weeks before you signed your term sheet. That’s a lot of time and energy to invest, especially when the economy is poised for a downturn and you’re most likely needed in other parts of your business.

If you’ve already started your round and are wondering if you should push through, I’ve written a piece on knowing when to quit and recalibrate versus when to push through (Extra Crunch membership required).

Many factors play into navigating a successful fundraising round, and the expectations of investors are constantly changing — specifically when it comes to the pre-seed round.

Investors are now looking for market-ready products and want to see pitch decks that feature the content they’re expecting. We expect to see this focus intensify over the coming months as VCs have more time to spend not just to review pitch decks, but on due diligence for companies in which they plan to invest. Our new report outlines advice for pre-seed startups that are looking to adjust their fundraising strategy.

Focus on an MVP, not just a great PowerPoint

Our analysis reveals a shift in the level of readiness required by institutional investment to receive pre-seed funding. In the past, pre-seed startups could get by with just an MVPP (Minimum Viable PowerPoint). But now, investors are placing their bets on pre-seed startups that have already entered the market and developed an alpha, beta or shipping product.

In fact, 92% of companies with successful pitch decks had either an alpha, beta or shipping product, where only 68% of companies with unsuccessful pitch decks presented the same type of product readiness.

stage of product development mvp vs mvpp

As the economy moves closer to a downturn we can expect VCs to be more cautious with their investments. The current data already shows a preference for companies that have live products; it’s worth the time and effort to be product-ready coming into a pre-seed round or if you’re a startup ready to tackle the round again with a fresh perspective.

Rethink your deck

That said, even if you do have an MVP, rethinking your pitch deck may be something else to consider. Here’s a good test. Using your pitch deck, spend three to four minutes (that’s all the time you’ll get from a VC) to pitch your business to a friend or family member who knows nothing about your business. Afterward, ask them for a one-sentence description of your company. If they’re not clearly describing what your company does and the problem it’s trying to solve, you probably need to rethink your pitch deck.

According to our recent report, a “less is more” attitude toward creating a compelling pitch deck for meetings could mean more success in pre-seed fundraising.

Your pitch deck will be your main calling card right now. As community events are being replaced with online gatherings during the COVID-19 pandemic, we can expect to see less one-to-one engagement at these events. So pitching a VC in person is not likely to happen anytime soon. Whether you’re sending them a cold email, or getting a warm intro from a portfolio company, you’re going to need to lead with your pitch deck.

Despite the product taking a more prominent role in the fundraising round, the pitch deck is still a focal point and should be tailored to tell your story in the most effective way, as investors are spending less time evaluating them. On average, investors are spending just 3 minutes and 21 seconds on the pitch deck and the average deck is just 20 slides.

If you are in the process of reevaluating your pitch deck, it could be helpful to make sure your slides feature the right content in the right order. Investors spend nearly 50% more time on the product slides in successful pitch decks and over 18% longer on the business model in unsuccessful pitch decks. Additionally, investors spent more time on solution slides in successful decks than unsuccessful decks.

time spent on successful decks

It’s a numbers game… to a certain extent

Another area that could benefit from reevaluation is the number of investors contacted, meetings held and the number of weeks spent in a funding round. Generally speaking, the average amount of investors contacted for successful fundraising rounds is 56, resulting in 26 meetings. On average, successful pre-seed startups will spend 20.5 weeks on fundraising.

When it comes to fundraising, there are diminishing returns for investor outreach. You shouldn’t need to send your deck to more than 60-70 investors and have more than 20-30 meetings. If you’re doing more than that, the ROI on your time just isn’t worth it. Because the current crisis is affecting VCs’ willingness to invest, you’re better off finding a small list of investors who are active and targeting your pitch to them. If you’ve reached out to more than 70 investors, but you’re still faced with a wall of “nos” you’re better off pausing your fundraising and addressing the feedback you’ve received so far. For more on when you should quit and reevaluate versus push through you can read my article here (Extra Crunch membership required).

how long does a pre seed round take

Another area pre-seed startups should evaluate is the number of founders of a company. Our data shows investors still prefer teams of two-three founders, though our data shows that being a solo founder is preferable to having too many founders. For teams of five founders, they averaged earning $195,085 while founding teams of three garnered $511,522.

This may be the right time to find a co-founder. With many people working from home or out of work, this could be the opportunity to take your idea and bring on the technical founder you need. There are online groups and events popping up everywhere in response to social distancing. If you’re worried being a solo founder is going to hold you back, you may want to invest time in those new communities.

meetings and amount raised

Get some perspective

For many startups, especially if you are not in Silicon Valley where a substantial amount of funding happens, the process of fundraising can be very opaque. DocSend’s purpose in analyzing this data is to bring some transparency to the process. This in turn provides perspective.

But what founders should do, if they haven’t done so already, is to get some additional perspective. Talk to experts outside your immediate circle of influence. Don’t have a mentor or advisors? Find them. Get a different take on your product idea or the market conditions. Especially now that community events are going virtual, location doesn’t have to hold you back from joining the startup community and finding people to offer feedback on your product or company.

Fundraising is both an art and science. Combining the insights from our data with the benefit of your own community can help you get back on your feet and pitching your company with hopefully a better outcome.

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Daily Crunch: Clearstep’s chatbot offers in-depth COVID-19 screening

We look at an in-depth screener app for COVID-19, U.S. stocks take another tumble and Apple extends its free trial for Final Cut Pro and Logic Pro. Here’s your Daily Crunch for March 27, 2020.

Stay safe and socially distanced this weekend!

1. Clearstep’s COVID-19 chat-based screener goes in-depth to preserve healthcare resources

There are a growing number of symptom checker and screening tools that you can use at home if you suspect you might have contracted the new coronavirus that is causing the global COVID-19 pandemic. Most of these are relatively simple, including three or four questions that cover the top reported symptoms experienced by anyone who has confirmed to have had the disease.

In contrast, chatbot-based symptom checking software startup Clearstep has created its own COVID-19 screener, which goes more in-depth to combine symptom checking with screening for potential exposure to the virus.

2. Stocks fall sharply Friday morning as the mid-week recovery falls short

The major American stock market indices are down sharply this morning at the open, with stocks falling after a multi-day rally helped shave some losses off their calendar-year results.

3. Apple extends free trials for its pro creative apps

Apple announced today that they are temporarily extending the free trials on Final Cut Pro X and Logic Pro X from 30 days to 90 days, giving potential customers stuck at home a longer window of time to try out the software. With this announcement, Apple joins a number of other software companies extending the free trials of their products in the midst of the COVID-19 crisis.

4. Yelp pauses GoFundMe Covid-19 fundraising after opt-out outcry

A fundraising program that Yelp and GoFundMe put in place this week to help local businesses impacted by the COVID-19 pandemic has been paused after public outcry over how it was rolled out — specifically, controversy over how the two provided no easy and quick way to opt out of the fundraising.

5. Smart telescope startups vie to fix astronomy’s satellite challenge

The stakes involved are high, with projects like Starlink (the satellite branch of SpaceX) potentially being central to the future of global internet coverage, especially as new infrastructure implements 5G and edge computing. At the same time, satellite clusters — whether from Starlink or national militaries — could threaten the foundations of astronomical research. (Extra Crunch membership required.)

6. Notarize to add 1,000 online notaries to address demand for remote transactions

The startup is partnering with the National Notary Association to verify notaries have been screened and have the necessary insurance or bonding. The service is available to Americans in all 50 states or abroad, but notaries must be physically located in Florida, Nevada, Texas or Virginia to join the platform.

7. Social Bluebook was hacked, exposing 217,000 influencers’ accounts

Social Bluebook, a Los Angeles-based company, allows advertisers to pay social media “influencers” for posts that promote their products and services. The company claims it has some 300,000 influencers on its books, but in October 2019, its entire backend database was stolen in a data breach.

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.

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Bird lays off about 30% of workforce amid COVID-19 pandemic

Bird is the latest startup hit by the COVID-19 pandemic. Today, Bird laid off about 30% of its employees amid the uncertainty caused by the coronavirus, TechCrunch has learned.

“The unprecedented COVID-19 crisis has forced our leadership team and the board of directors to make many extremely difficult and painful decisions relating to some of your teammates,” Bird CEO Travis VanderZanden wrote to staffers in a memo, obtained by TechCrunch, today. “As you know, we’ve had to pause many markets around the world and drastically cut spending. Due to the financial and operational impact of the ongoing COVID-19 crisis, we are saying goodbye to about 30% of our team.”

Bird has confirmed the layoffs and says it is providing four weeks of pay, three months of health coverage* and an extended time frame of 12 months to exercise their stock options. According to a source, Bird’s balance sheet is strong but it needed to reduce burn in order to extend its runway into 2021.

Bird’s layoffs come shortly after news broke that Lime is looking for a funding round that would cut its valuation from $2.4 billion to $400 million.

Last week Bird and Lime suspended their respective services in response to the pandemic.

Bird is not the only startup forced to have layoffs amid the crisis. As The Information reported earlier this week, layoffs are accelerating across Silicon Valley. Meanwhile, Lime is reportedly considering laying off up to 70 people in the San Francisco Bay Area.

Here’s the full memo VanderZanden sent this morning:

We’ve watched the COVID-19 pandemic radically and quickly transform our lives, the world, and our business in less than a month. This once in a decade black swan event presents one of the greatest challenges in history because of the viral impact it has not just on our health, but also on our lives—our families, friends, communities, finances, work, emotions—the list goes on.

The unprecedented COVID-19 crisis has forced our leadership team and the board of directors to make many extremely difficult and painful decisions relating to some of your teammates. As you know, we’ve had to pause many markets around the world and drastically cut spending. Due to the financial and operational impact of the ongoing COVID-19 crisis, we are saying goodbye to about 30% of our team.

In business, I feel like every challenge is surmountable with the right team. And I believe Bird has been building the right team these past few years. Until today, there wasn’t a problem we couldn’t solve together. That’s what makes this such a painful situation. To say goodbye to some of the most incredible, intelligent, scrappy, funny, loving, dedicated members of our Bird Family for reasons totally outside our control, hurts deeply.

I recognize and sympathize that this situation adds to an already difficult time. As you know, we strive to be community-focused at Bird—we always try to care deeply about the people we serve. The impacted individuals are an important part of this community and I hope that our commitment to caring and supporting them during this transition by providing severance pay, extended health insurance, and an extended window to exercise options makes a positive impact during this crisis.

We looked at many different options and scenarios and took as many preventive measures as possible to reduce the impact of the virus. Given the unknown timeline and current economic situation, we were forced to cut back in this way to elongate the trajectory of Bird and our mission.  As you know, we just raised hundreds of millions from investors, but given all the uncertainty, we needed to ensure a cash runway to last through the end of 2021.

Moving forward, together

As we all know: yes, the world has changed and continues to change. This will be a difficult season, but we continue to work around the clock to move us forward as a team. As mentioned last week, we’re aggressively shoring up resources and protecting our existing assets. We’ve curbed all spending company-wide that is not directly related to helping us weather this storm together. We appreciate all your help identifying unnecessary spend during this down time.

History also tells us something important: micromobility, especially scooters, will very likely have an important role to play as communities begin to get moving again in the wake of the COVID-19 pandemic.

This is not the first time that a public health crisis has had a direct impact on the micromobility industry. When the SARS outbreak was sweeping through China, e-bike sales surged as riders looked for more personalized alternatives to public transit.

History suggests that people will demand a large scale mobility option that still allows for personal distancing. And Bird will be there, working hand in hand with cities to help communities heal, and help riders regain mobility, in the wake of the most serious global pandemic in recent memory.

I just want to give a heartfelt thank you to everyone who has rallied to keep up with such a rapidly changing situation. We’ll try to keep everyone informed as it relates to changing priorities and business impact. We’ve had successes that allow businesses to persevere in times of uncertainty and, with your trust, patience and determination, we will overcome the challenges we face today as well.

Lean on each other. Over communicate. Support each other. Reach out to your teammates and managers to understand what you can do to keep us moving forward.

*An earlier version of this story said three weeks of health insurance instead of three months. We apologize for the error.

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Zyl resurfaces old photos to create collaborative stories

French startup Zyl has released a major update of its mobile app for iOS and Android. The app is all about finding long-forgotten memories of important life events in your photo library.

Zyl scans your photo library and magically finds photos that matter. Every day, the app sends you a notification to tell you that you can unlock a new memory — a new Storyl. It instantly brings you back to that special day with an automatically generated story. All your photos are already stitched together, the app is just waiting for you.

With today’s update, Zyl lets you share your memory with your friends and family members who were part of this past event. They can contribute and add their own photos from their photo library.

Sure, each user could have created their own version of this story. But collaborative stories lead to something more powerful. Years after celebrating something, Zyl brings you closer to your friends right now.

Behind the scene, the company has been working on machine learning-powered algorithms to understand the emotions behind your photo. The company has a privacy-focused approach. It scans your photo library on your devices — your photos aren’t uploaded to Zyl’s servers. You don’t need to create a user account either.

Zyl doesn’t want to overwhelm you with a ton of content at once. You have to wait 24 hours to unlock a new Storyl. That slow-paced approach sets it apart from Instagram, where you have to frenetically tap on the screen to gobble as much content as possible.

Just like with your memories, you have to make room for new memories and cherish the most important ones. In the future, Zyl could remove some of your old Storyls to let you focus on the ones that matter most. If you haven’t shared it with a friend, chances are it wasn’t that important.

Instead of traditional comments, the startup is also working on a way to add some meaningful content on top of your photos. Again, Zyl is focused on emotions and generating a good vibe. For me, it has been a great way to forget about the news cycle for a few minutes.

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Telco metadata grab is for modelling COVID-19 spread, not tracking citizens, says EC

As part of its response to the public health emergency triggered by the COVID-19 pandemic, the European Commission has been leaning on Europe’s telcos to share aggregate location data on their users.

The Commission kick-started a discussion with mobile phone operators about the provision of aggregated and anonymised mobile phone location data,” it said today.

“The idea is to analyse mobility patterns including the impact of confinement measures on the intensity of contacts, and hence the risks of contamination. This would be an important — and proportionate — input for tools that are modelling the spread of the virus, and would also allow to assess the current measures adopted to contain the pandemic.”

“We want to work with one operator per Member State to have a representative sample,” it added. “Having one operator per Member State also means the aggregated and anonymised data could not be used to track individual citizens, that is also not at all the intention. Simply because not all have the same operator.

“The data will only be kept as long as the crisis is ongoing. We will of course ensure the respect of the ePrivacy Directive and the GDPR.”

Earlier this week Politico reported that commissioner Thierry Breton held a conference with carriers, including Deutsche Telekom and Orange, asking for them to share data to help predict the spread of the novel coronavirus.

Europe has become a secondary hub for the disease, with high rates of infection in countries including Italy and Spain — where there have been thousands of deaths apiece.

The European Union’s executive is understandably keen to bolster national efforts to combat the virus. Although, it’s less clear exactly how aggregated mobile location data can help — especially as more EU citizens are confined to their homes under national quarantine orders. (While police patrols and CCTV offer an existing means of confirming whether or not people are generally moving around.)

Nonetheless, EU telcos have already been sharing aggregate data with national governments.

Orange in France is sharing “aggregated and anonymized” mobile phone geolocation data with Inserm, a local health-focused research institute — to enable them to “better anticipate and better manage the spread of the epidemic,” as a spokeswoman put it.

“The idea is simply to identify where the populations are concentrated and how they move before and after the confinement in order to be able to verify that the emergency services and the health system are as well armed as possible, where necessary,” she added. “For instance, at the time of confinement, more than 1 million people left the Paris region and at the same time the population of Ile de Ré increased by 30%.

“Other uses of this data are possible and we are currently in discussions with the State on all of these points. But, it must be clear, we are extremely vigilant with regards to concerns and respect for privacy. Moreover, we are in contact with the CNIL [France’s data protection watchdog]… to verify that all of these points are addressed.”

Germany’s Deutsche Telekom is also providing to national health authorities what a spokesperson dubbed “anonymized swarm data” to combat the corona virus.

“European mobile operators are also to make such anonymized mass data available to the EU Commission at its request,” the spokesperson told us. “In fact, we will first provide the EU Commission with a description of data we have sent to German health authorities.”

It’s not entirely clear whether the Commission’s intention is to pool data from such existing local efforts — or whether it’s asking EU carriers for a different, universal data-set to be shared with it during the COVID-19 emergency.

When we asked about this it did not provide an answer. Although we understand discussions are ongoing with operators — and that it’s the Commission’s aim to work with one operator per Member State.

The Commission has said the metadata will be used for modelling the spread of the virus and for looking at mobility patterns to analyze and assess the impact of quarantine measures.

A spokesman emphasized that individual-level tracking of EU citizens is not on the cards.

“The Commission is in discussions with mobile operators’ associations about the provision of aggregated and anonymised mobile phone location data,” the spokesman for Breton told us.

“These data permit to analyse mobility patterns including the impact of confinement measures on the intensity of contacts and hence the risks of contamination. They are therefore an important and proportionate tool to feed modelling tools for the spread of the virus and also assess the current measures adopted to contain the Coronavrius pandemic are effective.”

“These data do not enable tracking of individual users,” he added. “The Commission is in close contact with the European Data Protection Supervisor (EDPS) to ensure the respect of the ePrivacy Directive and the GDPR.”

At this point there’s no set date for the system to be up and running — although we understand the aim is to get data flowing asap. The intention is also to use data sets that go back to the start of the epidemic, with data-sharing ongoing until the pandemic is over — at which point we’re told the data will be deleted.

Breton hasn’t had to lean very hard on EU telcos to share data for a crisis cause.

Earlier this week Mats Granryd, director general of operator association the GSMA, tweeted that its members are “committed to working with the European Commission, national authorities and international groups to use data in the fight against COVID-19 crisis.”

Although, he added an important qualifier: “while complying with European privacy standards.”

The @GSMA and our members are committed to working with the @EU_Commission, national authorities and international groups to use data in the fight against COVID-19 crisis, while complying with European privacy standards. https://t.co/f1hBYT5Lqx

— Mats Granryd (@MatsGranryd) March 24, 2020

Europe’s data protection framework means there are limits on how people’s personal data can be used — even during a public health emergency. And while the legal frameworks do quite rightly bake in flexibility for a pressing public purpose, like the COVID-19 pandemic, it does not mean individuals’ privacy rights automatically go out the window.

Individual tracking of mobile users for contact tracing — such as Israel’s government is doing — is unimaginable at the pan-EU level. Certainly unless the regional situation deteriorates drastically.

One privacy lawyer we spoke to last week suggested such a level of tracking and monitoring across Europe would be akin to a “last resort.” Though individual EU countries are choosing to respond differently to the crisis — such as, for example, Poland giving quarantined people a choice between regular police check ups or uploading geotagged selfies to prove they’re not breaking lockdown.

While former EU Member the U.K. has reportedly chosen to invite in the controversial U.S. surveillance-as-a-service tech firm Palantir to carry out resource tracking for its National Health Service during the coronavirus crisis.

Under pan-EU law (which the U.K. remains subject to, until the end of the Brexit transition period), the rule of thumb is that extraordinary data-sharing — such as the Commission asking telcos to share user location data during a pandemic — must be “temporary, necessary and proportionate,” as digital rights group Privacy International recently noted.

This explains why Breton’s request is for “anonymous and aggregated” location data. And why, in background comments to reporters, the claim is that any shared data sets will be deleted at the end of the pandemic.

Not every EU lawmaker appears entirely aware of all the legal limits, however.

Today the bloc’s lead privacy regulator, data protection supervisor (EDPS) Wojciech Wiewiórowski, could be seen tweeting cautionary advice at one former commissioner, Andrus Ansip (now an MEP) — after the latter publicly eyed up a Bluetooth-powered contacts tracing app deployed in Singapore.

“Please be cautious comparing Singapore examples with European situation. Remember Singapore has a very specific legal regime on identification of device holder,” wrote Wiewiórowski.

So it remains to be seen whether pressure will mount for more privacy-intrusive surveillance of EU citizens if regional rates of infection continue to grow.

Dear Mr. Commissioner, please be cautious comparing Singapoore examples with European situation. Remember Singapore has a very specific legal regime on identification of device holder.

— Wojtek Wiewiorowski (@W_Wiewiorowski) March 27, 2020

As we reported earlier this week, governments or EU institutions seeking to make use of mobile phone data to help with the response to the coronavirus must comply with the EU’s ePrivacy Directive — which covers the processing of mobile location data.

The ePrivacy Directive allows for Member States to restrict the scope of the rights and obligations related to location metadata privacy, and retain such data for a limited time — when such restriction constitutes “a necessary, appropriate and proportionate measure within a democratic society to safeguard national security (i.e. State security), defence, public security, and the prevention, investigation, detection and prosecution of criminal offences or of unauthorised use of the electronic communication system” — and a pandemic seems a clear example of a public security issue.

Thing is, the ePrivacy Directive is an old framework. The previous college of commissioners had intended to replace it alongside an update to the EU’s broader personal data protection framework — the General Data Protection Regulation (GDPR) — but failed to reach agreement.

This means there’s some potential mismatch. For example the ePrivacy Directive does not include the same level of transparency requirements as the GDPR.

Perhaps understandably, then, since news of the Commission’s call for carrier metadata emerged concerns have been raised about the scope and limits of the data sharing. Earlier this week, for example, MEP Sophie in’t Veld wrote to Breton asking for more information on the data grab — including querying exactly how the data will be anonymized.

Fighting the #coronavirus with technology: sure! But always with protection of our privacy. Read my letter to @ThierryBreton 👇 about @EU_Commission’s plans to call on telecoms to hand over data from people’s mobile phones in order to track&trace how the virus is spreading. pic.twitter.com/55kZo9bMhN

— Sophie in ‘t Veld (@SophieintVeld) March 25, 2020

The EDPS confirmed to us that the Commission consulted it on the proposed use of telco metadata.

A spokesman for the regulator pointed to a letter sent by Wiewiórowski to the Commission, following the latter’s request for guidance on monitoring the “spread” of COVID-19.

In the letter the EDPS impresses on the Commission the importance of “effective” data anonymization — which means it’s in effect saying a technique that does genuinely block re-identification of the data must be used. (There are plenty of examples of “anonymized” data being shown by researchers to be trivially easy to reidentify; while location data typically includes many easily identified individual tells, such as a home address and workplace address.)

“Effective anonymisation requires more than simply removing obvious identifiers such as phone numbers and IMEI numbers,” warns the EDPS, adding too that aggregated data “can provide an additional safeguard.”

We also asked the Commission for more details on how the data will be anonymized and the level of aggregation that would be used — but it told us it could not provide further information at this stage. 

So far we understand that the anonymization and aggregation process will be undertaken before data is transferred by operators to a Commission science and research advisory body, called the Joint Research Centre (JRC) — which will perform the data analytics and modelling.

The results — in the form of predictions of propagation and so on — will then be shared by the Commission with EU Member States authorities. The datasets feeding the models will be stored on secure JRC servers.

The EDPS is equally clear on the Commission’s commitments vis-a-vis securing the data.

“Information security obligations under Commission Decision 2017/464 still apply [to anonymized data], as do confidentiality obligations under the Staff Regulations for any Commission staff processing the information. Should the Commission rely on third parties to process the information, these third parties have to apply equivalent security measures and be bound by strict confidentiality obligations and prohibitions on further use as well,” writes Wiewiórowski.

“I would also like to stress the importance of applying adequate measures to ensure the secure transmission of data from the telecom providers. It would also be preferable to limit access to the data to authorised experts in spatial epidemiology, data protection and data science.”

Data retention — or rather the need for prompt destruction of data sets after the emergency is over — is another key piece of the guidance.

“I also welcome that the data obtained from mobile operators would be deleted as soon as the current emergency comes to an end,” writes Wiewiórowski. “It should be also clear that these special services are deployed because of this specific crisis and are of temporary character. The EDPS often stresses that such developments usually do not contain the possibility to step back when the emergency is gone. I would like to stress that such solution should be still recognised as extraordinary.”

teresting to note the EDPS is very clear on “full transparency” also being a requirement, both of purpose and “procedure.” So we should expect more details to be released about how the data is being effectively rendered unidentifiable.

“Allow me to recall the importance of full transparency to the public on the purpose and procedure of the measures to be enacted,” writes Wiewiórowski. “I would also encourage you to keep your Data Protection Officer involved throughout the entire process to provide assurance that the data processed had indeed been effectively anonymised.”

The EDPS has also requested to see a copy of the data model. At the time of writing the spokesman told us it’s still waiting to receive that.

“The Commission should clearly define the dataset it wants to obtain and ensure transparency towards the public, to avoid any possible misunderstandings,” Wiewiórowski added in the letter.

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Smart telescope startups vie to fix astronomy’s satellite challenge

Josh Nadeau
Contributor

Josh Nadeau is a Canadian journalist based in St. Petersburg who covers the intersection of Russia, technology and culture. He has written for The Economist, Atlas Obscura and The Outline.

Starlink, the satellite branch of Elon Musk’s SpaceX company, has come under fire in recent months from astronomers over concerns about the negative impact that its planned satellite clusters have reportedly had — and may continue to have — on nighttime observation.

According to a preliminary report released last month by the International Astronomical Union (IAU), the satellite clusters will interfere with the ability of telescopes to peer deep into space, and will limit the amount of observable hours, as well as the quality of images taken, by observatories.

The stakes involved are high, with projects like Starlink potentially being central to the future of global internet coverage, especially as new infrastructure implements 5G and edge computing. At the same time, satellite clusters — whether from Starlink or national militaries — could threaten the foundations of astronomical research.

Musk himself has been inconsistent in his response. Some days, he promises collaboration with scientists to solve the issue; on others, such as two weeks ago at the Satellite 2020 conference, he declared himself “confident that we will not cause any impact whatsoever in astronomical discoveries.” 

Critics have pointed fingers in many directions in search of a solution to the issue. Some astronomers demand that spacefaring companies like Musk’s look after the interests of science (Amazon and Facebook have also been developing satellite projects similar to SpaceX’s) . Others ask national or international governing bodies to step in and create regulations to manage the problem. But there’s another sphere altogether that may provide a solution: startups looking to develop “smart telescopes” capable of compensating for cluster interference.

Should they deliver on their promise, smart telescopes and shutter units will save observatories time and money by protecting images that are incredibly complicated to generate.

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Canceled conferences will force startups to focus on scalable lead generation

Dan Wheatley
Contributor

Dan Wheatley is CEO/co-founder of StraightTalk Consulting, a SaaS operations and growth consultancy that works with B2B founders to implement long-term, data-driven growth strategies.

Described by Sequoia Capital as the black swan event of 2020, the long-term economic fallout of the COVID-19 pandemic on startups is still to be seen. However, one effect which is sure to disrupt the MO of many early-stage startups is the cancellation of events and conferences.

According to Forbes, more than 35.3 million people who were planning to attend an event have been forced to change their plans in recent months. And while some might lament being forced to leave their Metallica T-shirts and 2020 Summer Olympics flags in the cupboard, many startup founders are biting their nails at the prospect of lost leads and connections from events and conferences.

The silver lining: Forcing founders to wean themselves off conferences and events as a “go-to” business development tactic might not be a bad thing in the long run.

Based on my experience, many early-stage startups waste lots of time and resources doing the rounds at events without clear aims, using up lots of the founder’s time, without driving much business value. At an early stage in a startup’s journey, every tactic used needs to drive real ROI and ultimately be driving new business opportunities.

So let’s look at why missing out on events might not be the end of the world, and how startups can focus their time, energy and resources on more scalable and consistent lead-gen activities.

What’s my beef with startup events and conferences?

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Private tech companies mobilize to address shortages for medical supplies, masks and sanitizer

Startups across the nation and around the world are looking for ways to relieve shortages of much-needed personal protective equipment and sanitizers used to halt the spread of COVID-19.

While some of the largest privately held technology companies, like SpaceX and Tesla, have shifted to manufacturing ventilators, smaller companies are also trying to pitch in and relieve scarcity locally.

Supplies have been difficult to come by in some of the areas hardest hit by the outbreak of the novel coronavirus, and the shortfalls have been made worse by a lack of coordination from the federal government. In some instances local governments have been bidding for supplies against each other and the federal government to acquire needed personal protective equipment.

On Sunday, New York’s Governor Mario Cuomo pleaded with local governments to not engage in a bidding war. In fact, Kentucky was outbid by the federal government for personal protective equipment.

“FEMA came out and bought it all out from under us,” Kentucky Governor Andy Beshear told a local newspaper. “It is a challenge that the federal government says, ‘States, you need to go and find your supply chain,’ and then the federal government ends up buying from that supply chain.”

Against this backdrop local startups and maker spaces are stepping up to do what they can to fill the gap.

Alcohol brands are turning their attention to making hand sanitizer to distribute in communities experiencing shortages. 3D-printing companies are working on new ways to manufacture personal protective equipment and swabs for COVID-19 testing. And one fast fashion retail startup is teaching its tailors and seamstresses how to make cloth masks for consumer protection.

AirCo, a New York-based startup that developed a process to use captured carbon dioxide to make liquor, shifted its efforts to making hand sanitizer for donations in communities in New York City.

Now, new alcohol brands Bev and Endless West are joining the manufacturing push.

Endless West announced this morning that it would shift production away from its distillery to begin making hand sanitizers. The World Health Organization approved their sanitizers, which the company will produce in its warehouse in San Francisco.

The two-ounce bottles will be donated to local restaurants and bars that remain open for delivery, so that employees can use them and distribute them to customers. Bulk quantities will be distributed to healthcare organizations and facilities that need them.

Endless West also put out a call for other companies to provide supplies to hospitals and health organizations in the San Francisco Bay Area.

“We felt it was imperative to do our part and dedicate what resources we have to assist with shortages in the healthcare and food & beverage industries who keep the engine running and provide such important functions in this time of immense need throughout the community,” said Alec Lee, CEO of Endless West, in a statement.

Los Angeles-based Bev is no different.

“As an alcoholic beverage company, Bev is very lucky in that we are licensed to purchase ethanol directly from our suppliers, who are doing their part by discounting the product to anyone licensed to purchase it,” said Bev chief executive, Alix Peabody. “Community underscores everything we do here at Bev, and as such, we will be producing hand sanitizer and distributing it free of charge to the homeless and elderly communities here in Venice, populations who largely have insufficient access to healthcare and essential goods like sanitizer.”

Hand sanitizer is one sorely needed item in short supply, but there are others — including face masks, surgical masks, face shields, swabs and ventilator equipment that other startups are now switching gears to produce.

(Photo by PAU BARRENA/AFP via Getty Images)

In Canada, INKSmith, a startup that was making design and tech tools accessible for kids, has now moved to making face shields and is hiring up to 100 new employees to meet demand.

“I think in the short term, we’re going to scale up to meet the needs of the province soon. After that, we’re going to meet the demands of Canada,” INKSmith CEO Jeremy Hedges told the Canadian news outlet Global News.

3D-printing companies like Massachusetts-based Markforged and Formlabs are both making personal protective equipment like face shields, as well as nasal swabs to use for COVID-19 testing.

Markforged is pushing ahead with a number of efforts to focus some of the benefits of 3D printing on the immediate problem of personal protective equipment for healthcare workers most exposed to COVID-19.

“We have about 20 people working on this pretty much as much as they can,” said Markforged chief executive, Gregory Mark. “We break it up into three different programs. The first stage is prototyping validation and getting first pass to doctors. The second is clinical trials and the third is production. We are in clinical trials with two. One is the nasal swab and two is the face shield.”

The ability to spin up manufacturing more quickly than traditional production lines using 3D printing means that both companies are in some ways better positioned to address a thousandfold increase in demand for supplies that no one anticipated.

“3D printing is the fastest way to make anything in the world up to a certain number of days, weeks, months or years,” says Mark. “As soon as we get the green light from hospitals, 10,000 printers around the world can be printing face shields and nose swabs.”

Formlabs, which already has a robust business supplying custom-printed surgical-grade healthcare products, is pushing to bring its swabs to market quickly.

“Not only can we help in the development of the swabs, but we can manufacture them ourselves,” says Formlabs chief product officer, David Lakatos.

Swabs for testing are in short supply in part because there are only a few manufacturers in the world who made them — and one of those primary manufacturers is in Italy, which means supplies and staff are in short supply. “There’s a shortage of them and nobody was expecting that we would need to test millions of people in short order,” says Lakatos.

Formlabs is also working on another piece of personal protective equipment — looking at converting snorkeling masks into respirators and face masks. “Our goal is to make one that is reusable,” says Lakatos. “A patient can use it as a respirator and you can put it in an autoclave and reuse it.”

In Brooklyn, Voodoo Manufacturing has repurposed its 5,000-square-foot facility to mass-produce personal protective equipment. The company has set up a website, CombatingCovid.com, where organizations in need of supplies can place orders. Voodoo aims to print at least 2,500 protective face shields weekly and can scale to larger production volumes based on demand, the company said.

STAMFORD, CT – MARCH 23: Nurse Hannah Sutherland, dressed in personal protective equipment (PPE) awaits new patients at a drive-thru coronavirus testing station at Cummings Park on March 23, 2020 in Stamford, Connecticut. Availability of protective clothing for medical workers has become a major issue as COVID-19 cases surge throughout the United States. The Stamford site is run by Murphy Medical Associates. (Photo by John Moore/Getty Images)

Finally, Resonance, the fast fashion startup launched by the founder of FirstMark Capital, Lawrence Lenihan, is using its factory in the Dominican Republic to make face masks for consumers on the island and beyond.

“To contribute to the Dominican health efforts, Resonance is acting to utilize their resources to manufacture safety masks for distribution to local hospitals, nursing homes, and other high-risk facilities as quickly as possible. They have provided user-friendly instructions and material and will pay their sewers who can to make these masks from the security of their homes,” a spokesperson for the company wrote in an email. “Resonance is currently working to share this downloadable platform and simple instructions to their website, so anyone in the world can contribute to their own local communities.”

All of these efforts — and countless others too numerous to mention — point to the ways small companies are hoping to do something to help their communities stay safe and healthy in the midst of this global outbreak.

But many of these extreme measures may not have been necessary had governments around the world actively coordinated their response and engaged in better preparation before the situation became so dire.

There are a litany of errors that governments made — and are still making — in their efforts to respond to the pandemic, even as the private sector steps in and steps up to address them.

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