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Dig into the key issues in venture today with investor and Techstars co-founder Brad Feld

Few can hold a candle to Brad Feld’s list of accolades in the startup, tech and venture world. As a multi-time founder of both startups and venture firms alike, Feld is widely known for having co-founded the Techstars accelerator — now a Silicon Valley and startup institution — as well as Foundry Group, the early and growth-stage venture fund that has raised nearly $2.5 billion over seven funds, in just over a decade.

Feld is equally, if not more, recognized outside of the investing world as a thought leader through both his widely followed blog “Feld Thoughts” and through authoring a number of books and guides to the startup and venture worlds. Feld recently published the fourth edition of his acclaimed and seemingly timeless book “Venture Deals: Be Smarter Than Your Lawyer And Venture Capitalist” (which he co-authored with Foundry Group co-founder Jason Mendelson), which acts as a manual to raising venture capital by walking through tactical advice around negotiating a term sheet, what to consider when selling your business, arguments for and against convertible debt and much more.

TechCrunch’s Silicon Valley editor Connie Loizos will be sitting down with Brad for an exclusive conversation this Thursday, October 10th at 11:00 am PT on Extra Crunch. Brad, Connie and Extra Crunch members will be digging into the latest edition of “Venture Deals,” Brad’s advice to founders and investors and his take on hot-button issues of the day (including dual-class shares, direct listings and what happened at WeWork).

Extra Crunch members will also have the opportunity to ask questions! We will pause during the call to take questions from Extra Crunch subscribers. Alternatively, you can email questions to eldon@techcrunch.com.

Tune in to join the conversation and for the opportunity to ask Brad and Connie any and all things venture.

To listen to this and all future conference calls, become a member of Extra Crunch. Learn more and try it for free.

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Startup says ‘Sober is the new black’

Maveron, Slow Ventures and Female Founders Fund have invested $10 million in a startup that claims it’s carving a new path to sobriety.

Tempest offers a $647 eight-week virtual “sobriety school” to help people, particularly women and “historically oppressed individuals,” get sober. The program is led by the company’s founder and chief executive officer Holly Whitaker, who conducts weekly video lectures and Q+As for participants. Offering their expertise as part of the package is marriage and family therapist Kim Kokoska; Valerie (Vimalasara) Mason-John, the co-founder of Eight Step Recovery; and wellness coach Mary Vance, among others.

Tempest teaches the underlying causes of addiction and the “importance of purpose, meaning and creativity in breaking addiction,” as well as how to manage cravings, how to navigate social situations as a non-drinker, how to develop a mindfulness practice and more. At the end of the program, participants can pay a $127 fee for an annual membership to the Tempest online community, where one can communicate with others who’ve completed the program.

Tempest Syllabus
Week 1: Recovery Maps + Toolkits
Week 2: Addiction & The Brain
Week 3: Habit and Night Ritual
Week 4: Yoga, Meditation and Breath
Week 5: Nutrition & Lifestyle
Week 6: Relationships & Community
Week7: Trauma & Therapy
Week 8: Purpose & Creativity
Week 8+ Wrapping Up + Next Steps

Dashboard Week 2

A snapshot of Tempest’s weekly coursework.

A holistic approach

Founded in 2014, New York-based Tempest has raised about $14.3 million in total VC funding. Whitaker previously spent five years at One Medical, where she was the director of revenue cycle operations. Since founding Tempest, which has enrolled 4,000 participants to date, Whitaker received a two-book deal from Random House to document her methodologies and path to sobriety. Her first book, ‘Quit Like a Woman: The Radical Choice to Not Drink in a Culture Obsessed with Alcohol,’ will be released on December 31.

Today, her business has 28 employees and plans to build out its team, invest in marketing — where it’s historically had very low spend — and explore business opportunities within the enterprise using cash from the $10 million Series A.

“Sobriety, and the refusal to partake in alcogenic culture, is subversive, rebellious, and edgy.” – Tempest

The company is careful to clarify it’s not a detox or 12-step program, like Alcoholics Anonymous, which is structured around the Twelve Steps to recovery. Rather, Tempest can be used in combination with other programs or therapies, or as a first step down the path to recovery. Whitaker explains Tempest isn’t only for the clinically addicted or those who consider themselves addicts or alcoholics. The company welcomes people who have rejected these labels or simply want to cut alcohol out of their life.

“Tempest grew out of my own experience,” Whitaker, who has previously struggled with alcoholism and an eating disorder, tells TechCrunch. “It was a response to the lack of desirable and accessible options to address problematic drinking, the lack of options available for people who don’t identify as alcoholics but struggle with alcohol and the lack of options that have been created for women and other individuals. Everything had been created for men.”

Tempest is tailored to the needs of women and historically oppressed individuals, says Whitaker, though all genders are welcome to complete its course. Taking a holistic approach to recovery, participants are encouraged to address the factors that led them to drink in the first place, including “love lives, poor nutrition, stress, anxiety, crap friendships, consumerism, lack of purpose, unresolved family of origin issues, disenfranchisement, poverty, tight or unmanageable finances, lack of connection, fear, shitty jobs we hate, depression, unprocessed trauma, lack of meaning, unfulfilled dreams, never-ending to-do lists, never-measuring-upness,” the company writes.

TempestWebsite

Tempest’s website

But what about A.A.?

I had the same question.

Alcoholics Anonymous (A.A.), the most popular and accessible approach to recovery, is free and open to anyone willing to acknowledge they have a drinking problem. A nonprofit organization, A.A. has more than 115,000 groups worldwide. The 84-year-old program is built on peer-support groups that gather regularly for discussion meetings. Over time, more seasoned members can become “sponsors,” helping newer entrants work through the Twelve Steps.

Tempest, alternatively, is taking a for-profit approach, charging for its tech-infused method. And where A.A. emphasizes in-person support groups, Tempest relies on video streams. Increasingly, telemedicine startups are enticing customers with convenient options for health and wellness care but whether people will truly pivot to telemedicine, tele-therapy or virtual sobriety schools is still up for debate. As for Tempest’s similarities to A.A., Whitaker says: “The only thing they have in common is that they are working to help people quit alcohol.”

“By just trying on sobriety or questioning our drink-centric culture, you are profoundly ahead of the pack.” – Tempest

In selling its sobriety school, Tempest evokes a sense of coolness, with phrases like “Sober is the new black” and “Your hangover goes away. Your social life doesn’t,” plastered on its website. In providing a priced and more exclusive route to sobriety, one might question Tempest’s ethics and motivations as it builds a business that capitalizes off of substance abuse. Whitaker, in defense, explains a virtual school fit for the historically powerless is a necessary addition to existing options: “Our program is centered on individuals who have been held out of power, who have been told to shut up and listen,” she said. “We aren’t looking at white, upper-class men. We are looking at a queer person from 2019.”

According to survey data published by Recovery.org, 89% of A.A. attendees are white, while 38% are female.

Refusing ‘alcogenic culture’

Tempest’s branding takes a cue from the D2C playbook. The company, led by women, has the opportunity to become the brand that represents sobriety, and it’s taking it. Tempest’s Series A, coupled with the influx of new-age non-alcoholic beverage brands backed by VCs, is representative of the perceived shift away from alcohol among the younger generations.

Millennials are drinking less alcohol and, according to the World Health Organization, there are 5% fewer alcohol drinkers in the world today than in 2000. Tempest’s school seems to cater more to the cohort of people who view ditching alcohol as a lifestyle perk, not those who stop drinking due to addiction.

Holly Whitaker

Tempest founder and CEO Holly Whitaker

Seedlip, a non-alcoholic spirits company, and India’s Coolberg Beverages, which makes non-alcoholic beer, recently raised VC to cater to a similar demographic. Meanwhile, CBD-infused beverage brands like Sweet Reason, Cann and Recess are trendy and raising venture money. None of these, of course, are solutions for someone struggling with alcohol. Capital flowing into these brands merely indicates venture capitalists’ belief that consumers are steering away from traditional liquor and toward new products fit for a generation that is drinking less alcohol.

“By just trying on sobriety or questioning our drink-centric culture, you are profoundly ahead of the pack and among good company,” Tempest writes on its website. “Remember: 70-80% of adults drink depending on where you live; drinking is basic. Sobriety, and the refusal to partake in alcogenic culture, is subversive, rebellious, and edgy.”

Tempest says it has completed an efficacy study performed in consultation with researchers affiliated with the University of Buffalo and Syracuse University. In several years’ time, we’ll know whether the countless think pieces claiming millennials are done with alcohol were indeed true and whether the VC money into these upstarts was wasted or pure genius. As for Tempest, even if just providing a designated place on the internet for discussions around the struggles or benefits of sobriety, it has the potential to make a big impact on those in recovery or those seeking a lifestyle change.

“Alcohol is very similar to cigarettes,” Whitaker said. “We are in a time that we think drinking alcohol is natural, that we are supposed to do it. I thought that would change because to me, alcohol is entirely toxic. We are approaching this tipping point of realizing how toxic and unnecessary it is.”

Tempest is also backed by AlleyCorp, Refactor and Green D Ventures. Maveron’s Anarghya Vardhana has joined the startup’s board of directors as part of the latest deal.

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The budding industry of cannabis tech

Brian Kateman
Contributor

Brian Kateman is president and co-founder of the Reducetarian Foundation.

From food and drink to health and wellness and beyond, there’s one plant we can’t seem to get enough of: cannabis. It seems like every consumer product nowadays is taking part in reefer madness.

Home cooks are taking edibles to new heights. In places like Denver and California, you can take cooking classes specifically centered around food made with Mary Jane. The editors of Vice’s “Munchies” even put out a cookbook last year called Bong Appétit: Mastering the Art of Cooking with Weed. And it’s only one of many.

But marijuana culture today isn’t all based around the stuff you (er, people you know) smoked in college. Cannabis, long known for its medicinal and therapeutic purposes, is a hot commodity in food tech and other consumer products nowadays. Far more than just a way to get high, cannabis in its various forms has been used medically throughout history and in modern times as a treatment for pain and nausea, and has been found anecdotally or in limited studies to treat glaucoma, epilepsy and anxiety, among other conditions and symptoms. Businesses have caught on, and not a moment too soon.

The food products that utilize marijuana are a far cry from the old classic pot brownies (not that there’s anything wrong with those!). Thanks to modern science, producers are able to separate the two main chemical compounds found in marijuana: THC and CBD. THC has therapeutic benefits, but it’s best known as the part of weed that gets you high. This is because it’s a psychoactive compound. CBD, on the other hand, is not psychoactive — it can (supposedly) provide many of the anti-anxiety, analgesic benefits of the plant without producing a high. For obvious reasons, this gives marijuana a new appeal. It’s now possible to reap the benefits of the plant without experiencing intoxication, so you can lessen anxiety or pain while still functioning normally.

It’s worth noting at this point that many of the health benefits of CBD and cannabis in general are not scientifically proven in statistically significant, peer-reviewed studies. This is for a number of reasons, most significantly that marijuana is still a Schedule 1 controlled substance under federal law in the U.S., making legality an issue in its study.

Clearly, the lack of scientific evidence isn’t diminishing anyone’s desire for herbal refreshment.

But what CBD and other cannabis products lack in evidence, they make up for with enthusiasm. Companies and consumers alike are eager to try CBD in various products, from food to oils to skincare, in hopes of treating anxiety, sleeplessness and other woes. If you live in a place where CBD products are legal, you’ve probably seen them everywhere. Newsweek reported that CBD sales are estimated to grow 40-fold in the next four years, reaching a value of $23 billion. The big business of marijuana and CBD — California-based Arena Pharmaceuticals is the biggest publicly traded cannabis company in the world — is only growing.

You can already find CBD candies and oils at major national retail chains like CVS and Walgreens, and in states and municipalities where it’s legal, green connoisseurs can order CBD-infused lattes and cocktails. Even retailers like Sephora, Neiman Marcus and Barneys are selling curated displays of CBD-infused beauty and skincare products. The aforementioned Newsweek article reports that big names like Coca-Cola and Molson Coors Brewing are among the hordes of companies already working on their own CBD products. Clearly, the lack of scientific evidence isn’t diminishing anyone’s desire for herbal refreshment.

Except for the FDA, that is. The legality of marijuana and CBD is a confusing and often contradictory topic, and a hard one to keep track of because it’s changing all the time at the federal, state and municipal levels. But what can be ascertained is that because so much of the CBD industry is operating outside of any kind of government oversight, legally or otherwise, the quality of products can vary widely. This is something about which the FDA and independent doctors and pharmaceutical experts have raised concerns. Apart from companies making unfounded claims about the effects of their products, the actual ingredient makeup may be inconsistent, with some products containing less CBD than their labels claim. Little regulation and nascent standards of quality mean consumers might not always know what they’re getting.

But given the broad interest in CBD, that’s unlikely to remain the case forever. The FDA may have started cracking down on extralegal CBD product sales, but in the grand scheme of things, that only means that the agency recognizes the significance of the compound. CBD probably isn’t going away anytime soon, and among the food, drug, health and cosmetic industries, the race to do it best and biggest has already begun.

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With $15M round and 100K tablets sold, reMarkable CEO wants to make tech ‘more human’

The reMarkable tablet is a strange device in this era of ultra-smart gadgets: A black and white screen meant for reading, writing, and sketching — and nothing more. Yet the company has sold 100,000 of the devices and now has attracted $15 million in series A funding from Spark Capital.

It’s an unusual trajectory for a hardware startup exploring a nearly unoccupied market, but CEO Magnus Wanberg is confident that’s because this category of device is destined to grow in response to increasingly invasive tech. Sometimes an anti-technology trend is the tech opportunity of a lifetime.

I reviewed the reMarkable last year and compared it with its only real competition, the Sony Digital Paper Tablet. It was launched not on Kickstarter or Indiegogo but with its own independent crowdfunding campaign — and considering we’ve seen devices like this attempt such a thing and either let down or rip off their backers, that alone was a significant risk.

The device has been a runaway success, though, selling over 100,000 units — and attracting investment in the process. When I talked with Wanberg and co-founder Gerst about their new A round, the conversation was so interesting that I decided to publish it in full (or at least slightly edited).

How did they get here? What would they have done differently? Is the threat of the “smart” world really a thing? Why fight tech with more tech?

Devin: So you guys raised some money, that’s great! But it’s been a while since we talked. I think it’s important to hear about the progress of unique companies that are doing interesting things. So first can you tell me a little about what the company’s been busy with?

Magnus: Well, we’ve created this wonderful product, the reMarkable paper tablet. We’ve been very focused on that effort, based on a love for paper and a love for technology, to see if we can find some ways to join these two together to help people think better. That’s sort of the the whole ethos of the company.

So for the last six years, we’ve just been grinding away… you know, we’re a small player up against the big guys on this. So we’ve been sort of fighting guerrilla warfare trying to trying to establish ourselves.

And we were successful, fortunately, when we did our pre-order campaign, because as we found out, we weren’t the only ones who who love this notion of thinking better with the paper tablet, seeing paper as a powerful tool for thinking and for creating.

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Arm brings custom instructions to its embedded CPUs

At its annual TechCon event in San Jose, Arm today announced Custom Instructions, a new feature of its Armv8-M architecture for embedded CPUs that, as the name implies, enables its customers to write their own custom instructions to accelerate their specific use cases for embedded and IoT applications.

“We already have ways to add acceleration, but not as deep and down to the heart of the CPU. What we’re giving [our customers] here is the flexibility to program your own instructions, to define your own instructions — and have them executed by the CPU,” ARM senior director for its automotive and IoT business, Thomas Ensergueix, told me ahead of today’s announcement.

He noted that Arm always had a continuum of options for acceleration, starting with its memory-mapped architecture for connecting over a bus GPUs and today’s neural processor units. This allows the CPU and the accelerator to run in parallel, but with the bus being the bottleneck. Customers also can opt for a co-processor that’s directly connected to the CPU, but today’s news essentially allows Arm customers to create their own accelerated algorithms that then run directly on the CPU. That means the latency is low, but it’s not running in parallel, as with the memory-mapped solution.

arm instructions

As Arm argues, this setup allows for the lowest-cost (and risk) path for integrating customer workload acceleration, as there are no disruptions to the existing CPU features and it still allows its customers to use the existing standard tools with which they are already familiar.

custom assemblerFor now, custom instructions will only be available to be implemented in the Arm Cortex-M33 CPUs, starting in the first half of 2020. By default, it’ll also be available for all future Cortex-M processors. There are no additional costs or new licenses to buy for Arm’s customers.

Ensergueix noted that as we’re moving to a world with more and more connected devices, more of Arm’s customers will want to optimize their processors for their often very specific use cases — and often they’ll want to do so because by creating custom instructions, they can get a bit more battery life out of these devices, for example.

Arm has already lined up a number of partners to support Custom Instructions, including IAR Systems, NXP, Silicon Labs and STMicroelectronics .

“Arm’s new Custom Instructions capabilities allow silicon suppliers like NXP to offer their customers a new degree of application-specific instruction optimizations to improve performance, power dissipation and static code size for new and emerging embedded applications,” writes NXP’s Geoff Lees, SVP and GM of Microcontrollers. “Additionally, all these improvements are enabled within the extensive Cortex-M ecosystem, so customers’ existing software investments are maximized.”

In related embedded news, Arm also today announced that it is setting up a governance model for Mbed OS, its open-source operating system for embedded devices that run an Arm Cortex-M chip. Mbed OS has always been open source, but the Mbed OS Partner Governance model will allow Arm’s Mbed silicon partners to have more of a say in how the OS is developed through tools like a monthly Product Working Group meeting. Partners like Analog Devices, Cypress, Nuvoton, NXP, Renesas, Realtek,
Samsung and u-blox are already participating in this group.

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Microsoft adds per-app time limits to its parental controls

Microsoft is following Apple and Google’s lead with today’s launch of per-app and per-game time limits in its parental control software. Already, the company allows parents to limit screen time across Windows 10, Xbox One and Android via the Microsoft Launcher. However, it hadn’t yet allowed parents to limit the amount of time a child could spend in a specific app or game, as its competitors do.

Instead, its existing controls allowed parents only to dole out a set amount of hours of screen time. Parents could choose to either leave the time up to the kids to manage, or limit it at the device level — like, only allowing one hour of Xbox time but permitting more screen time on the PC, for example.

However, the current trend in screen time management is not to approach all screen time as unproductive and unhealthy. Instead, it’s about configuring limits on the more addictive apps and games that eat up increasing amounts of children’s time, while permitting educational tools to have fewer limits.

For older kids and teens, social media apps like TikTok or Instagram could be the culprit, while younger kids may just be spending too much time “hanging out” in virtual worlds like Roblox and Fortnite. Problems on this front have gotten pretty bad. Mobile games are under fire for using gambling tactics like loot boxes to engage children. And Fortnite is now the subject of a lawsuit that claims that, in part, the game’s addictive nature is due to its use slot machine-like mechanics and variable reward systems, which manipulate children’s brains.

Without being able to limit these apps directly, kids may end up using all of their allotted screen time on just the one app or game they’re obsessed with at the moment.

Apple had already allowed per-app time limits with the launch of its screen time controls in iOS 12. And Google more recently updated its own Family Link software, now preinstalled on new Android devices, to include a similar feature.

With today’s update, Microsoft is now on board, too.

microsoft per app time limits

The new app and game limits parents set will apply across Windows 10, Xbox and Android devices running Microsoft Launcher. In other words, kids can’t get more game time just by switching devices.

The controls also allow parents to offer more screen time on certain days — like weekends, for instance — than others.

To use this feature, parents will need to create a family group and make Microsoft accounts for all the kids.

Once enabled, kids will get a warning about their screen time 15 minutes before the limit is reached, and then again at five minutes. Because kids will often beg for a few more minutes, Microsoft made it easy for parents to grant or deny more time via email or via a Microsoft Launcher notification on their own Android phone.

The per-app time limits are launching today in preview within Microsoft’s existing family settings.

“Ultimately, our goal is for the app and game limits feature to provide flexible and customizable tools to meet each family’s unique needs,” the company explains in an announcement. “You as parents know what’s best for your children — no technology can ever replace that — but we’re hoping these tools can help you to strike the right balance,” it says.

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Startup studio eFounders has a portfolio valuation of $1 billion

European startup studio eFounders has shared some metrics about its portfolio companies. The startup studio has launched 23 companies with a focus on software-as-a-service enterprise products.

While eFounders might not be a familiar name, some of the companies in its portfolio have become promising startups with impressive growth, such as Front, Aircall, Forest, Spendesk, Mailjet and others. Front is also company No. 85 in Y Combinator’s list of top 101 companies of all time.

And the big new metric is that the total valuation of all 23 companies has now reached $1 billion. Of course, eFounders is just a shareholder in those 23 companies, so eFounders itself isn’t a unicorn. But it’s still an impressive number.

At the end of 2018, eFounders’ portfolio valuation was at $541 million. At the end of 2017, the same metric was at $385 million.

Overall, eFounders companies have raised $254 million from VC funds and business angels, and employ 1,000 people, mostly in Paris, San Francisco and New York. And when you add up the annual recurring revenue of all those startups, they generate $107 million in ARR together.

If you don’t know the eFounders model, it’s quite simple. At first, the core eFounders team comes up with an idea and hires a founding team. In exchange for financial and human resources, the startup studio keeps a significant stake in its startups.

After a year or two, startups should have proven that they can raise a seed round and operate on their own. This way, eFounders can move on to the next project and start new companies. Up next, eFounders is already working on five new companies.

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Nadella warns government conference not to betray user trust

Microsoft CEO Satya Nadella, delivering the keynote at the Microsoft Government Leaders Summit in Washington, DC today, had a message for attendees to maintain user trust in their tools technologies above all else.

He said it is essential to earn user trust, regardless of your business. “Now, of course, the power law here is all around trust because one of the keys for us, as providers of platforms and tools, trust is everything,” he said today. But he says it doesn’t stop with the platform providers like Microsoft. Institutions using those tools also have to keep trust top of mind or risk alienating their users.

“That means you need to also ensure that there is trust in the technology that you adopt, and the technology that you create, and that’s what’s going to really define the power law on this equation. If you have trust, you will have exponential benefit. If you erode trust it will exponentially decay,” he said.

He says Microsoft sees trust along three dimensions: privacy, security and ethical use of artificial intelligence. All of these come together in his view to build a basis of trust with your customers.

Nadella said he sees privacy as a human right, pure and simple, and it’s up to vendors to ensure that privacy or lose the trust of their customers. “The investments around data governance is what’s going to define whether you’re serious about privacy or not,” he said. For Microsoft, they look at how transparent they are about how they use the data, their terms of service and how they use technology to ensure that’s being carried out at runtime.

He reiterated the call he made last year for a federal privacy law. With GDPR in Europe and California’s CCPA coming on line in January, he sees a centralized federal law as a way to streamline regulations for business.

As for security, as you might expect, he defined it in terms of how Microsoft was implementing it, but the message was clear that you needed security as part of your approach to trust, regardless of how you implement that. He asked several key questions of attendees.

“Cyber is the second area where we not only have to do our work, but you have to [ask], what’s your operational security posture, how have you thought about having the best security technology deployed across the entire chain, whether it’s on the application side, the infrastructure side or on the endpoint, side, and most importantly, around identity,” Nadella said.

The final piece, one which he said was just coming into play, was how you use artificial intelligence ethically, a sensitive topic for a government audience, but one he wasn’t afraid to broach. “One of the things people say is, ‘Oh, this AI thing is so unexplainable, especially deep learning.’ But guess what, you created that deep learning [model]. In fact, the data on top of which you train the model, the parameters and the number of parameters you use — a lot of things are in your control. So we should not abdicate our responsibility when creating AI,” he said.

Whether Microsoft or the U.S. government can adhere to these lofty goals is unclear, but Nadella was careful to outline them both for his company’s benefit and this particular audience. It’s up to both of them to follow through.

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Facebook’s Workplace hits 3M paying users, launches Portal app in a wider push for video

The rapid rise of Slack — which has recently broken the 100,000 mark for paying businesses using its service — has ushered in a rush of competition from other companies across the worlds of social media and enterprise software, all aiming to become the go-to conversation layer for businesses. Today, Workplace, Facebook’s effort in that race, announced a milestone in its growth, along with a bigger push into video services and other improvements.

The service — which starts at $1.50 per month per front-line worker and then has tiers of $4 and $8 — now has passed 3 million paying users, adding 1 million workers from mostly enterprise businesses in the last eight months.

And to capitalize on Facebook’s growing focus on video in its consumer service, Workplace is announcing several steps of its own into video. It’s releasing a special app that can be used on the Portal, Facebook’s video screen; and alongside that, it’s announcing new video features: captioning at the bottom of videos; auto-translating starting with 14 languages; and a new P2P architecture that will speed up video transmission for those who might be watching videos on Workplace in places where bandwidth is constrained.

The features and milestone number are all being announced today at Flock, the Workplace user conference that Facebook puts on each year. Alongside all these, Facebook also announced several other features for its enterprise app (more on the other new features below).

The push to video comes at an interesting time for Workplace on the competitive front. Karandeep Anand, who came to Facebook from Microsoft and currently heads up Workplace with Julien Codorniou managing business development, has made a point of differentiating Workplace from others in the field of workplace collaboration by emphasizing how it’s used by very large enterprises like Walmart (the world’s largest single employer) to bring together on to a single communication platform not just white-collar knowledge workers but also frontline workers.

The company says that today, its customers include 150 companies with over 10,000 active users apiece, with other names on its books including Starbucks, Spotify, AstraZeneca, Deliveroo and Kering.

The push to video follows that trajectory: it’s a way for Workplace (and Facebook) to differentiate the experience and use cases for the product to businesses, which might already be using Slack but might consider buying this as well, if not migrating away from the other product altogether. (Teams is a different ballgame, of course, as it has a strong video component of its own and also likes to position itself as a product for all kinds of employees, too.)

Workplace’s video efforts here will mark the first time that Facebook is positioning Portal as a product for businesses. This is notable, when you consider there has been some adoption of Amazon’s Alexa in workplace scenarios, too; and that there has been some pushback from consumers about the prospect of having a Facebook video device sitting in their homes. This gives Facebook’s $179 hardware (which will be sold at the same price to businesses) a new avenue for sales.

Video has been a cornerstone of how Workplace has been developing for a while now, with companies using it as a way for, say, the big boss to send out more personalised communications to workers, and for people in workgroups to create video chats with each other. A dedicated screen for video chats takes this idea to the next level, and plays on the fact that video conferencing services like Zoom have caught on like wildfire in modern offices, where people who work together often work in disparate locations.

There is another way that Portal could find some traction with businesses: videoconferencing solutions tend to be very expensive, in part because of the hefty hardware investments that need to be made. Offering a device at $179 drastically undercuts that investment. Codorniou declined to comment on whether Facebook might make a more concerted effort to push this as a cost-effective videoconferencing alternative down the line, but he did point out that today Facebook and Zoom have a close relationship.

The other video features that Workplace is announcing today will further enhance the experience: Facebook will now give users the option to include automatic captions at the bottoms of videos, with the bonus of translation, initially in 14 languages. And the improved video quality for those with limited bandwidth is significantly not something that Facebook has rolled out in its consumer app: the aim is to improve the quality of broadcasting in scenarios where bandwidth might not be as strong but there are simultaneous people watching the same event — something you could imagine applying, say, at a company all-hands or town hall event with remote participants.

Alongside all of these video features, Workplace is adding in a host of other features to expand the use cases for the product beyond basic chatting:

  • New learning product. This is not about e-learning per se, but Workplace is now offering a way for HR to add onboarding teaching and videos into Workplace for new employees or new services at the company. There are no plans right now to expand this to educational content, Codorniou said.
  • Surveys are also coming to Workplace. These will be set by administrators — not any worker at any time — and it seems that for now there will be no anonymity, so that will mean it’s unlikely that these will cover any sensitive topics, and might in any case see a chilling effect in how people feel they can respond.
  • Frontline access is getting overhauled in Workplace, where people who do not use company email addresses will now be able to create accounts using generated codes.
  • Those admins that are trying to track how well Workplace is actually working for them will also be able to track engagement and other metrics on the platform.

Workplace is also adding in some gamification features to the platform, where people can publicly thank people, set and follow workplace goals and award badges to individuals who have achieved something in areas like sales, anniversaries or other positive milestones.

As with the video features, the idea is to bring services to Workplace that you are not necessarily getting in Slack and other competitive products. That is the maxim also when the features are replicas of features you might have seen elsewhere, but not all in one consolidated place.

Asked what he thought about the claims that Facebook is too much of a “copycat” when it came to building new features, Codorniou was defensive. “I think Workplace itself is getting to a market that has been untouched before. When it comes to badges or goals, for example, yes people have but these before, but the difference is that we are offering them to a wide network of people. If you have to use a separate app, it’s not a great experience.”

And, he added, “everything that we ship is the result of customer feedback and requests. If they tell us they want these, it means they’re not finding what they needed on the market.”

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Satya Nadella looks to the future with edge computing

Speaking today at the Microsoft Government Leaders Summit in Washington, DC, Microsoft CEO Satya Nadella made the case for edge computing, even while pushing the Azure cloud as what he called “the world’s computer.”

While Amazon, Google and other competitors may have something to say about that, marketing hype aside, many companies are still in the midst of transitioning to the cloud. Nadella says the future of computing could actually be at the edge, where computing is done locally before data is then transferred to the cloud for AI and machine learning purposes. What goes around, comes around.

But as Nadella sees it, this is not going to be about either edge or cloud. It’s going to be the two technologies working in tandem. “Now, all this is being driven by this new tech paradigm that we describe as the intelligent cloud and the intelligent edge,” he said today.

He said that to truly understand the impact the edge is going to have on computing, you have to look at research, which predicts there will be 50 billion connected devices in the world by 2030, a number even he finds astonishing. “I mean this is pretty stunning. We think about a billion Windows machines or a couple of billion smartphones. This is 50 billion [devices], and that’s the scope,” he said.

The key here is that these 50 billion devices, whether you call them edge devices or the Internet of Things, will be generating tons of data. That means you will have to develop entirely new ways of thinking about how all this flows together. “The capacity at the edge, that ubiquity is going to be transformative in how we think about computation in any business process of ours,” he said. As we generate ever-increasing amounts of data, whether we are talking about public sector kinds of use case, or any business need, it’s going to be the fuel for artificial intelligence, and he sees the sheer amount of that data driving new AI use cases.

“Of course when you have that rich computational fabric, one of the things that you can do is create this new asset, which is data and AI. There is not going to be a single application, a single experience that you are going to build, that is not going to be driven by AI, and that means you have to really have the ability to reason over large amounts of data to create that AI,” he said.

Nadella would be more than happy to have his audience take care of all that using Microsoft products, whether Azure compute, database, AI tools or edge computers like the Data Box Edge it introduced in 2018. While Nadella is probably right about the future of computing, all of this could apply to any cloud, not just Microsoft.

As computing shifts to the edge, it’s going to have a profound impact on the way we think about technology in general, but it’s probably not going to involve being tied to a single vendor, regardless of how comprehensive their offerings may be.

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