1010Computers | Computer Repair & IT Support

Microsoft debuts a new version of its To Do app as Wunderlist founder expresses remorse

Microsoft several years ago acquired the popular iOS app Wunderlist with the intention of building out its own list-making productivity app that brings the best of Wunderlist’s feature set to a larger group of mobile consumers. This is a similar path as Microsoft took with email app Accompli, which later became Microsoft Outlook for mobile devices. In the case of Wunderlist, Microsoft didn’t just rebrand the app — it built a new one called Microsoft To Do. With Wunderlist up and running for years alongside To Do, its founder wants to know if he can just have it back.

The founder of Wunderlist maker 6Wunderkinder, Christian Reber, recently tweeted a desire to buy his app back from Microsoft just as the company is launching a new version of To Do. 

According to the tweets, Reber says he’s serious about reacquiring Wunderlist and wants to make it open-source and free. He even tweeted a list of upgrades he’d like to build, including features like shared folders and cross-team collaboration, among other things.

Still sad @Microsoft wants to shut down @Wunderlist, even though people still love and use it. I’m serious @satyanadella @marcusash, please let me buy it back. Keep the team and focus on @MicrosoftToDo, and no one will be angry for not shutting down @Wunderlist. pic.twitter.com/27mIABncLF

— Christian Reber (@christianreber) September 6, 2019

What I would do with @Wunderlist if I would get it back: pic.twitter.com/DYslu8mhOp

— Christian Reber (@christianreber) September 8, 2019

The founder doesn’t come across as having sour grapes exactly. He just says he’s sad that his plans for Wunderlist didn’t work out, but he’s grateful for the Microsoft exit.

If anything, it seems to be just remorse over the fact that Wunderlist itself will be shut down.

Want to make one thing clear: I feel nothing but gratitude for @Microsoft and everyone involved in the @Wunderlist acquisition in 2015. It made perfect sense, definitely the best thing that ever happened to us. The team there is amazing, I’m friends with many of them. 1/2

— Christian Reber (@christianreber) September 8, 2019

Microsoft had said years ago this was its intention, but also that it would hold off until it felt it has a competitive product that Wunderlist’s users would love.

On Monday, Microsoft unveiled another upgrade for Microsoft To Do, which hints that the Wunderlist shut down could be nearing.

The upgrade delivers a more polished look-and-feel with a wider range of backgrounds, including the Berlin TV tower theme that was popular in Wunderlist.

To Do 2b

The app also includes smart lists and a personalized daily planner that offers smart suggestions of tasks that need to be accomplished, Microsoft reminded its users, and it’s supported across a variety of platforms, including iOS, Android, Windows and Mac.

The app is now also integrated with other Microsoft apps like Outlook, Microsoft Planner, Cortana and Microsoft Launcher on Android, among others. And it works with Alexa, if you prefer.

With the release, Microsoft is again pushing users to migrate from Wunderlist to To Do to gain access to these features.

It did not, however, give an end-of-life date for Wunderlist, which is remarkably still a top 100 Productivity app in the U.S. App Store, according to data from App Annie, over four years after its acquisition.

We’ve asked Microsoft if it will share more details around its plans for Wunderlist and if it has any response to Reber’s request.

“Once we have incorporated the best of Wunderlist into Microsoft To Do, we will retire Wunderlist. We look forward to making Microsoft To Do even more useful, intuitive and personal,” a Microsoft spokesperson replied. The company declined to comment on Reber’s tweets.

Microsoft To Do has been installed approximately 5.8 million times worldwide since launch, according to data from Sensor Tower. During that same time frame, Wunderlist was installed about 10 million times.

As for Reber, he says he’s written to Microsoft many times before and now tried to make it more official via Twitter. The offer, he tells TechCrunch, is indeed serious, and the price would be based on the negotiation. “Chances are low, but I’m trying,” he says.

Powered by WPeMatico

Apple tweaks its App Store algorithm as antitrust investigations loom

That Apple has used its App Store to offer itself a competitive advantage is nothing new. TechCrunch and others have been reporting on this problem for years, including those times when Apple chose to display its apps in the No. 1 position on the Top Charts, for example, or when it stole some of the App Store’s best ideas for its own, banned apps that competed with iOS features or positioned its apps higher than competitors in search. Now, in the wake of antitrust investigations in the U.S. and abroad, as well as various anti-competitive lawsuits, Apple has adjusted the App Store’s algorithm so fewer of its own apps would appear at the top of the search results.

The change was reported by The New York Times on Monday, which presented Apple with a lengthy analysis of app rankings.

It even found that some searches for various terms would display as many as 14 Apple-owned apps before showing any results from rivals. Competitors could only rank higher if they paid for an App Store search ad, the report noted.

That’s a bad look for Apple, which has recently been trying to distance itself and its App Store from any anti-competitive accusations.

In May, for example, Apple launched a new App Store website designed to demonstrate how it welcomes competition from third-party apps. The site showed that for every Apple built-in app, there were competitors available throughout the App Store.

But availability in the store and discoverability by consumers are two different things.

Apple admitted to the NYT that for over a year many common searches on the App Store would return Apple’s own apps, even when the Apple apps were less popular or relevant at times. The company explained the algorithm wasn’t manipulated to do so. For the most part, Apple said its own apps ranked higher because they’re more popular and because they come up in search results for many common terms. The company additionally said that one feature of the app’s algorithm would sometimes group apps by their maker, which gave Apple’s own apps better rankings than expected.

Screen Shot 2019 09 09 at 11.29.20 AM

Above: via the NYT, the average number of Apple apps that returned at the top of the search results by month

Apple said it adjusted the algorithm in July to make it seem like Apple’s own apps weren’t receiving special treatment. According to the NYT, both Apple VP Philip Schiller, who oversees the App Store, and SVP Eddy Cue, who oversees many of Apple’s apps, confirmed that these changes have not fully fixed the problem.

The issue, as Apple explains it, is that its own apps are so popular that it had to tweak its algorithm to pretend they are not. Whether or not this is true can’t be independently verified, however, as Apple doesn’t allow any visibility into metrics like searches, downloads or active users.

Maybe it’s time for Apple’s apps to exit the App Store?

The report, along with the supposed ineffectiveness of the algorithm’s changes, begs the question as to whether Apple’s apps should show up in the App Store’s charts and search results at all, and if so, how.

To be fair, this is a question that’s not limited to Apple. Google today is facing the same problem. Recently, the CEO of a popular software program, Basecamp, called Google’s paid search ads a “shakedown,” arguing that the only way his otherwise No. 1 search result can rank at the top of the search results page is to buy an ad. Meanwhile, his competitors can do so — even using his brand name as the keyword to bid against.

The same holds true for the App Store, but on a smaller scale than the entirety of the web. That also makes Apple’s problem easier to solve.

For example, Apple could simply choose to offer a dedicated section for its own software downloads, and leave the App Store as the home for third-party software alone.

This sort of change could help to eliminate concerns over Apple’s anti-competitive behavior in the search results and chart rankings. Apple might balk against this solution, saying that users should have an easy way to locate and download its own apps, and the App Store is the place to do that. But the actual marketplace itself could be left to the third-party software while the larger App Store app — which today includes a variety of app-related content, including app reviews, interviews with developers, app tips and a subscription gaming service, Apple Arcade — could still be used to showcase Apple-produced software.

It could just do so outside the actual marketplace.

Here’s how this could work. If users wanted to re-install an Apple app they had deleted or download one that didn’t come pre-installed on their device, they could be directed to a special Apple software download page. Pointers to this page could be in the App Store app itself as well as in the iOS Settings.

An ideal spot for this section could even be on the existing Search page of the App Store.

With a redesign, Apple could offer a modified search screen where users could optionally check a box to return a list of apps results that would come only from Apple. This would indicate intentional behavior on the consumer’s part. That is, they are directly seeking an Apple software download — as opposed to the current situation where a user searches for “Music” and sees Apple’s own music app appear above all the others from rivals like Spotify and Pandora.

Alternately, Apple could just list its own apps on this page or offer a link to this dedicated page from the search screen.

And these are just a few variations on a single idea. There are plenty of other ways the App Store could be adjusted to be less anti-competitive, too.

As another example, Apple could also include the “You Might Also Like” section in its own apps’ App Store listings, as it does for all third-party apps.

Image from iOS 1Above: Apple Music’s App Store Listing

This section directs users to other apps that match the same search query right within the app’s detail page. Apple’s own apps, however, only include a “More by Apple” section. That means it’s keeping all the search traffic and consumer interest for itself.

Image from iOS

Above: Spotify’s App Store Listing

Or it could reduce the screen space dedicated to its own apps in the search results — even if they rank higher — in order to give more attention to apps from competitors while still being able to cater to users who were truly in search of Apple’s software.

But ultimately, how Apple will have to behave with regard to its App Store may be left to the regulators to decide, given Apple’s failure to bake this sort of anti-competitive thinking into its App Store design.

Powered by WPeMatico

Drivetime nabs $11M from Makers Fund, Amazon and Google to build voice-based games for drivers

Fully autonomous cars may (or may not) be just around the corner, but in the meantime, a startup that’s building in-car apps to help human drivers pass the time when behind the wheel has raised a round of funding.

Drivetime — which makes voice-based trivia quizzes, games and interactive stories that people can play while driving — has raised $11 million in funding led by Makers Fund (a prolific investor in gaming startups), with participation from Amazon (via the Alexa Fund) and Google (via its Assistant investment program).

The startup today has eight “channels” on its platform consisting of games and stories that you can access either within a limited free-to-play tier or via a paid subscription ($9.99 a month or $99.99 a year). The plan is to use the funding to continue expanding that catalog, as well as investing in deeper integrations with its new big-name strategic investors, who themselves have longstanding and deep interests in bringing more voice services and content to the in-car experience.

Co-founder and CEO Niko Vuori told TechCrunch that his ultimate ambition is for Drivetime to become “the Sirius XM of interactive content” for cars, with hundreds of different channels of content.

In keeping with those plans, along with the funding, Drivetime is today announcing a key content deal.

It has teamed up with the long-running, popular game show Jeopardy to build a trivia channel for the platform, which lets drivers test their own skills and also play against other drivers and people they know. The Jeopardy channel will source content from the TV show’s trove of IP and come with another familiar detail: it will be narrated by Alex Trebek, with a new quiz getting published every weekday for premium users.

That social element of the Jeopardy game is not a coincidence. The San Francisco-based startup is founded by Zynga alums, with Vuori and his co-founders Justin Cooper and Cory Johnson also working together at another startup called Rocket Games since leaving the social games giant and exiting that to gaming giant Penn National for up to $170 million. That track record goes some way to explaining the strong list of investors in the new startup.

“Social and interactive formats are the next frontier in audio entertainment,” said Makers Fund founding partner Jay Chi, in a statement. “Niko, Justin Cooper and Cory Johnson, with a decade-long history of working together and a proven track record in building new platforms, is the best team to bring this idea to life.”

“Gaming and entertainment are among customers’ favorite use cases for Alexa, and we think those categories will only grow in popularity as Alexa is integrated into more vehicles,” said Paul Bernard, director of the Alexa Fund at Amazon, in a separate statement. “Drivetime stands out for its focus on voice-first games in the car, and we’re excited to work with them to broaden the Alexa Auto experience and help customers make the most of their time behind the wheel.”

In addition to the three investors in this latest round, prior to this Drivetime had raised about $4 million from backers that include Felicis Ventures, Fuel Capital, Webb Investment Network (Maynard Webb’s fund) and Access Ventures.

Vuori declined to say how many installs or active users the app has today — although from the looks of it on AppAnnie, it’s seeing decent if not blockbuster success on iOS and Android so far.

Instead, the company prefers to focus on another stat, its addressable market, which it says is 110 million drivers in North America alone.

Meanwhile, adding a Jeopardy channel is building on what has worked best so far. The most popular category at the moment is trivia, with Tunetime (a “name that tune” game) coming in second and storytelling a third.

Drivetime’s premise is an interesting one. Drivers are a captive audience, but one that has up to now had a relatively limited amount of entertainment created for it, focusing mainly on music and spoken word.

However, the rise of voice-based interfaces and interactivity using natural language — spurred by the rise of personal assistant apps and in-home hubs like Amazon’s Echo — have opened a new opportunity, developing interactive, voice-based content for drivers to engage with more proactively.

You might think that this sounds like a recipe for a car accident. Won’t a driver get too distracted trying to remember the fourth president of the United States, or who was known as the father of the Constitution? (Hint: It’s the same guy.)

Vuori claims it’s actually the reverse: Having an interactive game that requires the driver to speak out loud can focus him or her and keep the driver more alert.

“We are double-dipping in safety,” he said. “On the one hand, we embody the safety aspects of Alertness Maintaining Tasks (AMTs). But we also act as a preventative, meaning that while players engage with Drivetime, they are not engaging with anything else.”

While the content today may serve as a way of keeping drivers from doing things they shouldn’t be doing while in a car, there is another obvious opportunity that might come as drivers become less necessary and will need other things to occupy themselves.

Longer term, the Jeopardy deal could usher in other channels based on popular game shows. Sony Pictures Television Games, which owns the rights to it, also owns Wheel of Fortune and Who Wants to Be a Millionaire.

“We are thrilled to work with Sony Pictures Television Games to bring Jeopardy, the greatest game show on the planet, to an underserved audience that desperately needs interactive entertainment the most – the 110 million commuters in North America driving to and from work by themselves every day,” said Vuori said in a statement.

Interestingly, despite the growth of “skills” for Alexa or apps for Google Home and other home hubs, and the overall popularity of these as a way of interacting with apps and sourcing information, Vuori says that he hasn’t seen any competition emerge yet from other app developers to build voice-based entertainment for drivers in the way that Drivetime has.

That gives the company ample opportunity to continue picking up new users — and more deals with publishers and content companies looking for more mileage (sorry) for their legacy IP and new business.

“Drivetime is one of the early pioneers in creating safe, stimulating entertainment for drivers in the car,” Ilya Gelfenbeyn, founding lead of the Google Assistant Investments Program, noted in a statement. “More and more people are using their voice to stay productive on the road, asking the Google Assistant on Android and iOS phones to help send text messages, make calls and access entertainment hands free. We share Drivetime’s vision, and look forward to working with their team to make the daily commute more enjoyable.”

Powered by WPeMatico

The Vivaldi browser lands on Android

Vivaldi has long billed itself as a browser for advanced users who want to be able to customize their browser to their heart’s content. With that mission, it managed to get a foothold in the desktop market, but until now, the browser company co-founded by Opera’s former CEO Jon von Tetzchner didn’t have a presence on mobile. That’s changing today with the launch of Vivaldi for Android, which retains the browser’s look, feel and speed without getting bogged down in trying to bring all its myriad features to mobile.

For the most part, I like to use the same browser on desktop and mobile, simply to keep my bookmarks in sync (and Vivaldi says it doesn’t use Google’s servers to sync, in case you’re worried about being tracked). For the longest time, that was one of the reasons I always switched away from Vivaldi on the desktop, despite the fact that the browser is essentially made for a user like me. With the mobile version, I think that’ll change.

vivaldi ui explained 980x551

The overall browser experience is pretty straightforward. I appreciate the fact that the Vivaldi team put all of the standard UI features (backward, forward, tab switcher and URL/search) at the bottom. You can still use the address bar at the top of the screen and the menu, too, of course, but in this age of giant screens, I appreciate a browser that can be used with one hand for much of the time.

article feature 4 screenshot 980x551

As far as features go, Vivaldi covers all the bases, with speed dials and bookmarks, some advanced tab management features that aren’t usually available on mobile, including the ability to clone tabs, and a screenshots feature that lets you capture either the full page or just the visible area. If you regularly use different search engines, you also can use Vivaldi’s shortcuts in the address bar (think ‘d’ for DuckDuckGo, for example). There’s also a reader view and pretty much everything else you expect from a modern mobile browser.

article feature 2 bookmark 980x551

One area where I’d like to see a bit more work from Vivaldi in general, both on mobile and desktop, is tracking protection. That’s been a focus for Firefox in many of its recent releases and even Microsoft’s new Chrome-based Edge browser is offering the ability to block trackers by default. Vivaldi, at least in its current form, doesn’t yet provide any tracking protection by default. That’s not much of an issue on the desktop, where you can easily install an extension, but on mobile, I’d like the company to do a bit more.

Overall, Vivaldi on Android is a worthwhile contender. It’s fast and easy to use — and if you’re already using Vivaldi on the desktop, it’s a no-brainer. Even if you’re not, it’s still worth a shot and may just get you to try the desktop version, too.

vivaldi in use galaxyS8

Powered by WPeMatico

Spendesk raises $38.4 million for its corporate card and expense service

French startup Spendesk has raised another $38.4 million in a Series B round, with existing investor Index Ventures leading the round. The company has raised $49.4 million (€45 million) over the years.

Spendesk is an all-in-one corporate expense and spend management service. It lets you track expenses across your company, empower your employees with a clear approval process and simplify your bookkeeping.

The service essentially works like Revolut or N26, but for corporate needs. After you sign up, you get your own Spendesk account with an IBAN. You can top up that account and define different sets of policies.

For instance, you can set payment limits depending on everyone’s job and define who’s in charge of approving expensive payments. After that, everyone can generate virtual cards for online payments and get a physical card for business travel.

When you’re on the road, you can pay directly using Spendesk just like any corporate card. If you have to pay in cash or with another card, you can take a photo of the receipt from the Spendesk mobile app and get your money back.

Many Spendesk users also leverage the service for other use cases. For instance, you can define a marketing budget and let the marketing team spend it on Facebook or Google ads using a virtual card.

You also can track all your online subscriptions from the Spendesk interface to make sure that you don’t pay for similar tools. If you hire freelancers, you can upload all your invoices to the platform, export an XML with your outstanding invoices and import it to your banking portal.

Spendesk tries to be smarter than legacy expense solutions. For instance, the company tries to leverage optical character recognition (OCR) to match receipts with payments, autofill the VAT rate, etc.

With today’s funding round, the company plans to open offices in Berlin and London, add more currencies and develop new features. Over the past year, the company went from 20 employees to 120 employees. There are now 1,500 companies using Spendesk in Europe.

Powered by WPeMatico

Fairphone 3 is a normal smartphone with ethical shine

How long have you been using your current smartphone? The answer for an increasing number of consumers is years, plural. After all, why upgrade every year when next year’s model is almost exactly the same as the device you’re holding in your hand?

Dutch social enterprise Fairphone sees this as an opportunity to sell sustainability. A chance to turn a conversation about ‘stalled smartphone innovation’ on its head by encouraging consumers to think more critically about the costs involved in pumping out the next shiny thing. And sell them on the savings — individual and collective — of holding their staple gadget steady.

Its latest smartphone, the Fairphone 3 — just released this week in Europe — represents the startup’s best chance yet of shrinking the convenience gap between the next hotly anticipated touchscreen gizmo and a fairer proposition that requires an altogether cooler head to appreciate.

On the surface Fairphone 3 looks like a fairly standard, if slightly thick (1cm), Android smartphone. But that’s essentially the point. This 4G phone could be your smartphone, is the intended message.

Fp3j

Specs wise, you’re getting mostly middling, rather than stand out stuff. There’s a 5.7in full HD display, a Qualcomm Snapdragon 632 chipset, 4GB of RAM and 64GB of storage (expandable via microSD), a 12MP rear lens and 8MP front-facing camera. There’s also NFC on board, a fingerprint reader, dual nano-SIM slots and a 3,000mAh battery that can be removed for easy replacement when it wears out.

There’s also a 3.5mm headphone jack: The handy port that’s being erased at the premium smartphone tier,  killing off a bunch of wired accessories with it. So ‘slow replacement’ smartphone hardware demonstrably encourages less waste across the gadget ecosystem too.

But the real difference lies under the surface. Fairer here means supply chain innovation to source conflict-free minerals that go into making the devices; social incentive programs that top up the minimum wages of assembly workers who put the phones together; and repairable, modular handset design that’s intended to reduce environmental impact by supporting a longer lifespan. Repair, don’t replace is the mantra.

All the extra effort that goes into making a smartphone less ethically challenging to own is of course invisible to the naked eye. So the Fairphone 3 buyer largely has to take the company’s word on trust.

The only visual evidence is repairability. Flip the phone over and a semi-opaque plastic backing gives a glimpse of modular guts. A tiny screwdriver included in the box allows you take the phone to pieces so you can swap out individual modules (such as the display) in case they break or fail. Fairphone sells replacements via a spare parts section of its website.

Fp3sc

Despite this radically modular and novel design vs today’s hermetically sealed premium mobiles the Fairphone 3 feels extremely solid to hold.

It’s not designed to pop apart easily. Indeed, there’s a full thirteen screws holding the display module in place. Deconstruction takes work (and care not to lose any of the teeny screws). So this is modularity purely as occasional utility, not flashy party trick — as with Google’s doomed Ara Project.

For some that might be disappointing. Exactly because this modular phone feels so, well, boringly normal.

Visually the most stand out feature at a glance is the Fairphone logo picked out in metallic white lettering on the back. Those taking a second look will also spot a moralizing memo printed on the battery so it’s legible through the matte plastic — which reads: “Change is in your hands”. It may be a bit cringeworthy but if you’ve paid for an ethical premium you might as well flaunt it.

It’s fair to say design fans won’t be going wild over the Fairphone 3. But it feels almost intentionally dull. As if — in addition to shrinking manufacturing costs — the point is to impress on buyers that ethical internals are more than enough of a hipster fashion statement.

It’s also true that most smartphones are now much the same, hardware, features and performance wise. So — at this higher mid-tier price-point (€450/~$500) — why not flip the consumer smartphone sales pitch on its head to make it about shrinking rather than maximizing impact, via a dull but worthy standard?

That then pushes people to ask how sustainable is an expensive but valueless — and so, philosophically speaking, pointless — premium? That’s the question Fairphone 3 seems designed to pose.

Or, to put it another way, if normal can be ethical then shouldn’t ethical electronics be the norm?

Normal is what you get elsewhere with Fairphone 3. Purely judged as a smartphone its performance isn’t anything to write home about. It checks all the usual boxes of messaging, photos, apps and Internet browsing. You can say it gets the job done.

Sure, it’s not buttery smooth at every screen and app transition. And it can feel a little slow on the uptake at times. Notably the camera, while fairly responsive, isn’t lightning quick. Photo quality is not terrible — but not amazing either.

Testing the camera I found images prone to high acutance and over saturated colors. The software also struggles to handle mixed light and shade — meaning you may get a darker and less balanced shot that you hoped for. Low light performance isn’t great either.

That said, in good light the Fairphone 3 can take a perfectly acceptable selfie. Which is what most people will expect to be able to use the phone for.

Fairphone has said it’s done a lot of work to improve the camera vs the predecessor model. And it has succeeded in bringing photo performance up to workable standard — which is a great achievement at what’s also a slightly reduced handset price-point. Though, naturally, there’s still a big gap in photo quality vs the premium end of the smartphone market.

On the OS front, the phone runs a vanilla implementation of Android 9 out of the box — preloaded with the usual bundle of Google services and no added clutter so Android fans should feel right at home. (For those who want a Google-free alternative Fairphone says a future update will allow users to do a wipe and clean install of Android Open Source Project.)

Fp3f

In short, purely as a smartphone, the Fairphone 3 offers very little to shout about — so no screaming lack either. Again, if the point is to shrink the size of the compromise Fairphone is asking consumers to make in order to buy an ethically superior brand of electronics they are slowly succeeding in closing the gap.

It’s a project that’s clearly benefiting from the maturity of the smartphone market. While, on the cellular front, the transformative claims being made for 5G are clearly many years out — so there’s no issue with asking buyers to stick with a 4G phone for years to come.

Given where the market has now marched to, a ‘fairer’ smartphone that offers benchmark basics at a perfectly acceptable median but with the promise of reduced costs over the longer term — individual, societal and environmental — does seem like a proposition that could expand from what has so far been an exceptional niche into something rather larger and more mainstream.

Zooming out for a second, the Fairphone certainly makes an interesting contrast with some of the expensive chimeras struggling to be unfolded at the top end of the smartphone market right now.

Foldables like the Samsung Galaxy Fold — which clocks in at around 4x the price of a Fairphone and offers ~2x the screen real estate (when unfolded), plus a power bump. Whether the Fold’s lux package translates into mobile utility squared is a whole other question, though.

And where foldables will need to demonstrate a compelling use-case that goes above and beyond the Swiss Army utility of a normal smartphone to justify such a whopping price bump, Fairphone need only prick the consumer conscience — as it asks you pay a bit more and settle for a little less.

Neither of these sales pitches is challenge free, of course. And, for now, both foldables and fairer electronics remain curious niches.

But with the Fairphone 3 demonstrating that ethical can feel so normal it doesn’t seem beyond the pale to imagine demand for electronics that are average in performance yet pack an ethical punch scaling up to challenge the mainstream parade of copycat gadgets.

Powered by WPeMatico

After Epstein, it’s time for the Valley to find a moral view on capital

Is capital moral or amoral?

In the predominant view held in Silicon Valley today, capital is amoral — cash is cash, and regardless of where it comes from, once it leaves the hand of its investor or donor, it no longer has that individual’s taint. That money might have previously been spent on acquiring access to underage girls, or murder, or espionage, but now it is being spent on something productive, something useful. Isn’t that ultimately a net win for society?

That culture of fundraising is under an exacting microscope this week after the MIT Technology Review reported that Nicholas Negroponte, the founder of the famed MIT Media Lab, would have continued to take convicted sex offender Jeffrey Epstein’s donations to the research center.

[… He] said he had recommended that [Joichi Ito, the lab’s current director] take Epstein’s money. “If you wind back the clock,” he added, “I would still say, ‘Take it.’” And he repeated, more emphatically, “‘Take it.’”

The comments, made during a meeting of the lab’s staff, shocked many of the participants, with some angrily replying in the heat of the moment. As the Review noted, “Kate Darling, a research scientist at the MIT Media Lab, shouted, ‘Nicholas, shut up!’ Negroponte responded that he would not shut up and that he had founded the Lab, to which Darling said, ‘We’ve been cleaning up your messes for the past eight years.’”

Epstein funded projects widely in the tech world through the Edge Foundation and other initiatives, and his acquaintances read like a who’s-who of tech luminaries.

Yet, this week’s controversy over fundraising is hardly novel. Just last year, SoftBank’s Vision Fund was dealing with the fallout in its own fundraising after Saudi Arabia — the fund’s largest limited partner with a $45 billion commitment to the $93 billion fund — murdered journalist Jamal Khashoggi in its consulate in Istanbul.

These two singular cases also connect to the larger story about the U.S. government’s active shutdown of Chinese venture capital dollars flowing into the Valley for fear of foreign intelligence espionage. Through the modernization of legal tools like CFIUS, to the Pentagon’s creation of a Trusted Capital Marketplace, to reversals of acquisitions like the unwinding of Chinese company Kunlun’s purchase of gay dating app Grindr, the government has repeatedly been telling entrepreneurs: it matters where your capital comes from.

Indeed, that’s the very quandary that Silicon Valley is facing these days. Its amoral view of capital is increasingly clashing with the reality that it matters a whole heck of a lot where that capital comes from. And it is about time that founders and investors take responsibility for cleaning up a capital base that has become more and more squalid over time.

Why can’t capital just be immoral? Well, Epstein’s web of donations provided him with a philanthropic sheen that eased access to the highest echelons of society while he committed his crimes. Saudi Arabia is the largest investor in Silicon Valley not only because it drives a return and diversifies its oil-dependent economy, but also because it can Valley-wash the horrific rights abuses and atrocities it commits against all of its citizens, including women, LGBT people, and immigrants.

(But hey, women can drive now, just in time for autonomous vehicles.)

This amoral versus moral view of capital is just the classic debate in philosophy between utilitarianism versus deontological duties, but Silicon Valley has almost exclusively chosen the former rather than the latter. My bank asks me more questions about my $50 deposits than many founders ask about where that $500 million check comes from.

That’s perhaps understandable in context. Founders — as with non-profit leaders — fundraise around-the-clock. When a check finally arrives, they don’t bother to ask a bunch of due diligence questions. They just want that money to hit the bank and get back to building what they were intending to the entire time.

It’s a mode of operating that continues to the present day. I was chatting with a founder this week, and during demo day last week, he got an emailed check for $50,000 from an investor in the audience. It was amazing, he said with exclamation points to me, and it sounded like he just added the check to the pile he had accumulated. Who is this person? Do we know where his capital comes from? Is there going to be some scandal that shocks the startup in a couple of years? Yet the excitement was palpable — the round was closed, and it was the easiest $50,000 ever fundraised.

Those diligence questions probably didn’t need to be asked a decade or two in the Valley, back when a few dozen firms mostly raised from blue-chip university and non-profit endowments as well as state pension funds.

Today though, there are all kinds of sources of capital, with little clarity about where the capital is coming from. Take, for instance, Carlos Ghosn, who once headed Nissan Motors and is currently on trial in Japan for a variety of financial crimes. He has been accused of embezzling millions of dollars for a VC fund run by his son by running a kickback scheme through a Nissan distributor in Lebanon. As the Wall Street Journal reported a little more than a week ago:

In March 2015, the Ghosns set up in Delaware an investment vehicle called Shogun Investments, which Mr. Ghosn described as a fund that would invest in Silicon Valley startups. Mr. Ghosn was majority owner while his son, Anthony, held a stake, according to people familiar with the matter. The younger Mr. Ghosn, who was about to graduate from Stanford University, was working at the time as chief of staff for Silicon Valley venture capitalist Joe Lonsdale, providing the elder Mr. Ghosn a close-up view of the tech investment world. The lofty returns had stunned him, according to one of the people.

That fund would go on to fund some of the most well-known unicorns in the world:

“Following our phone conversation, I ordered a transfer of $3 million,” Carlos Ghosn wrote in a December 2017 email to his son, who was 22 years old at the time.

Of that amount, $2 million was for an investment in Grab, a Southeast Asian competitor to Uber Technologies Inc., Mr. Ghosn wrote, adding that he was sending “$1 million for the company of your friend that you think will do very well.” It wasn’t clear which company Mr. Ghosn was referring to.

I would love a world in which founders asked all the right due diligence questions. I would love for them to inquire about limited partners, about how wealth was created, and how it has been invested. But I am also aware that in what can be a desperate search for funds, those questions may well never get asked in the first place.

If you want to stop the capital laundering taking place every day in the Valley, you have to create active, real-time antidotes. That means stopping it at every point of contact, every single opportunity where it can infect the ecosystem.

And so, we need better systems as a community and as an ecosystem to cleanse ourselves of this dirty money. We need “know-your-capital” processes that are standardized, robust, and accurate so that every check can be verified before it hits the bank. We need tools to verify that a startup or non-profit has actually followed those KYC processes, so that employees don’t suddenly show up at work and realize they are making money for a bunch of murderers. It’s “trust but verify.”

Systematization and process are key to execution, but that doesn’t disclaim the responsibility for the Valley’s leaders to take a moral stance here. Utilitarianism only takes you so far — it does matter that you take capital from a bad actor. Negroponte is wrong to say that he would still take Epstein’s money, regardless of what that capital might have funded at the MIT Media Lab.

Taking responsibility for your capital is part of being a leader of an organization today. Hopefully, the next generation of founders will take a look at Epstein, and Khashoggi, and China, and Ghosn, and the Sacklers, and a whole host of other case studies and learn from them and change their fundraising practices. A moral view on capital isn’t a cost of doing business — it’s simply the right thing to do.

Powered by WPeMatico

Startups Weekly: Stripe’s grand plan

Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I noted Peloton’s secret weapons. Before that, I wrote about a new e-commerce startup, Pietra.

Remember, you can send me tips, suggestions and feedback to kate.clark@techcrunch.com or on Twitter @KateClarkTweets. If you don’t subscribe to Startups Weekly yet, you can do that here.

The big story

In one fell swoop, Stripe may disrupt the entire financial services ecosystem.

The $22 billion payments behemoth announced Stripe Capital this week, a provider of quick and easy to obtain loans for internet businesses. The company is expected to launch a card as well, according to TechCrunch’s Ingrid Lunden. What does that mean for recent upstarts like Clearbanc, a business that provides revenue-share agreements to help startups forgo selling equity to VCs, or Brex, which has created a credit card tailored for startups? Stiff competition ahead.

Led by brothers Patrick and John Collison, Stripe is known for developing payment processing software to facilitate online purchases. Doubling down on financial services, the company seeks to become the go-to capital provider to its millions of customers. In a vacuum, it’s no threat to Brex, which has quickly become a fintech darling (with a multibillion-dollar valuation to prove it) — but coupled with Stripe’s massive network, resources and the soon-to-be-announced card, it’s worth concern.

I reached out to both Brex and Clearbanc. Here’s what they had to say.

Clearbanc: “Stripe is one of our close partners because we’re both deeply committed to empowering founders. There’s a huge demand amongst founders for flexible funding that allow them to grow while retaining equity in their company, so it’s encouraging to see the growth of alternative funding options. We’re seeing this first hand — we’re investing an average of $100,000 of growth capital per brand, with other companies taking up to $10 million. New funding alternatives not only open more doors for more businesses, but data-driven platforms can also help to reduce bias and promote entrepreneurship outside of VC capitals like Silicon Valley and New York.”

Brex CEO Henrique Dubugras: “We have created a new financial stack for tech companies, and this has resulted in a very innovative product experience with lots of adoption, so it makes sense that Stripe would also pursue this fast-growing opportunity.”

We’ll share more details on the card as soon as possible.

WeWork slashes expectations

The Wall Street Journal reported this week that the company formerly known as WeWork is considering slashing its valuation as it looks to woo public market investors. The co-working biz may hit the public markets at a valuation of somewhere in the $20 billion range for its initial public offering, a figure that’s far less than the $47 billion valuation it received when it raised its last round of private funding. Yikes…

TechCrunch Disrupt

We are just weeks away from our flagship conference, TechCrunch Disrupt San Francisco. We have dozens of amazing speakers lined up. In addition to taking in the great line-up of speakers, ticket holders can roam around Startup Alley to catch the more than 1,000 companies showcasing their products and technologies. And, of course, you’ll get the opportunity to watch the Startup Battlefield competition live. Past competitors include Dropbox, Cloudflare and Mint… You never know which future unicorn will compete next.

You can take a look at the full agenda here. Here’s a look at the panels I personally will be onstage moderating.

Deals, deals, deals

Listen

This week, we recorded Equity on location at TechCrunch Sessions: Enterprise in San Francisco. Our special guest was Emergence Capital founder Jason Green, who joined us to talk about the firm’s specialty: enterprise investments! Danny Crichton, the esteemed leader of TechCrunch’s Extra Crunch, was on hand to co-lead the episode with me. Listen here. And remember, Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercastSpotify, Pocket Casts, Downcast and all the casts.

Powered by WPeMatico

CDC says stop vaping as mystery lung condition spreads

Vape lung is spreading and the CDC is warning people not to use vaping products while they are investigating the cause. In a media briefing, the public health agency said that some 450 people are now thought to be affected, and as many as five have died.

The CDC’s incident manager for this issue, Dana Meaney Delman, summed up the situation as follows:

CDC, states, and other partners are actively investigating, but so far, no definitive cause has been established. No specific e-cigarette device or substance has been linked to all cases, and e-cigarette include a variety of chemical and additives; consumers may not know what these products contain.

Based on the clinical and laboratory evidence to date, we believe that a chemical exposure is likely associated with these illnesses. However, and I really want to stress this, more information is needed to determine which specific products or substances are involved

Reports earlier this week suggested that Vitamin E acetate, a byproduct of the vitamin complex formed during the vaporization process, may be to blame. Delman downplayed this, saying that although they are working with the labs that made that connection, nothing has been established as yet.

One trend worth noting, however, is that very few of the cases involve only nicotine products; most of the afflicted users reported using THC exclusively or as well as nicotine. This could be the result of many factors, however, so take it with a grain of salt.

The first death was reported in late August in Indiana, but other suspected cases have turned fatal in Illinois, Minnesota, California and Oregon — as reported by The Washington Post, though the CDC said three are confirmed and one is under investigation. The number of reported cases has skyrocketed, though this is likely a consequence of better information coming from state health authorities and hospitals, rather than a sudden epidemic.

In the meantime, the only advice they have is to avoid e-cigarette and vape device usage, especially modified devices or homebrew material. The fact is no one really knows what chemicals are formed in the conditions created by these devices, and some of them could be toxic.

While the investigation is ongoing, CDC has advised that individuals consider not using e-cigarettes because as of now, this is the primary means of preventing this type of severe lung disease. And of course e-cigarette use is never safe for youth, young adults, or pregnant women.

People who do use e-cigarette products should monitor themselves for symptoms (e.g., cough, shortness of breath, chest pain, nausea, vomiting, or others) and promptly seek medical attention for any health concerns. Regardless of the ongoing investigation, people who use e-cigarette products should not buy these products off the street and should not modify e-cigarette products or add any substances that are not intended by the manufacturer.

The CDC is working with numerous state authorities and the FDA to identify the cause of this malady, and will soon publish a report in The New England Journal of Medicine detailing the first 53 cases identified. This should help doctors and other health workers tell if they are dealing with a case of vape lung or something else.

Daniel Fox from WakeMed Hospitals in North Carolina characterized the condition as they had encountered it, with a preliminary diagnosis of “lipoid pneumonia”:

What we wanted to report and what we have seen has been a cluster of five cases that will be reported later today. Each of these cases featured a pulmonary illness in a relatively young person. Ranging in age from 18-35 from what we saw here in North Carolina. The symptoms that these patients were experiencing were being short of breath, having some GI or gastrointestinal symptoms of nausea and vomiting and fevers.

One of the things that was found in common with all of these cases is that all patients were using vaped substances in e-cigarettes. They all had abnormal chest x-rays and developed a need for a lot of oxygen.

All of our patients underwent evaluation, and after the clinical evaluation we found a certain type of pneumonia that was noninfectious. It’s called lipoid pneumonia. Basically, can be, it can occur when either oils or lipid-containing substances enter the lungs.

That is consistent with the Vitamin E acetate hypothesis, as that substance is oily and could enter the lungs mixed with the vapor and then stay there. But none of the doctors or experts on the call made that connection officially.

Some patients are being misdiagnosed as having bronchitis or a viral infection. If you are or anyone you know is getting sick and uses vaping products a lot, it’s worth mentioning this if you get checked out.

Delman concluded her briefing with an assurance that everything that can be done is being done:

Please know that CDC, FDA, state, and clinical partners are working hard to understand why people are getting sick. We will continue to share what we know and what we don’t know to help health departments, clinicians, and the public respond to this outbreak.

If you are concerned about your health or the health of a loved one who is using an e-cigarette product, contact your healthcare provider, or your local poison control center at 1-800-222-1222.

Powered by WPeMatico

Pagerduty’s Jennifer Tejada and Box’s Aaron Levie will talk IPOs at TC Disrupt SF

Pagerduty‘s CEO Jennifer Tejada and Box co-founder and CEO Aaron Levie both guided their companies to successful IPOs, with Box going public in 2015 and Pagerduty listing its stocks only a few months ago. Both of them will join us on the first day of TechCrunch Disrupt SF (October 2) to talk about their experiences in getting their companies to this point and managing the changes that come with being a public company.

It took both companies about 10 years to get to their IPOs. Levie co-founded the content management and file sharing service Box in 2005 and Pagerduty first launched as a basic notification tool for on-call developers in 2009, with Tejada joining as CEO in 2016. Box has already experienced its share of ups and downs in the stock market and Pagerduty’s IPO in April launched its stock right into one of the more volatile markets in recent years.

At Disrupt, though, we’ll focus on what these two CEOs did to get their companies ready to go public and the process of listing a company — and what, in hindsight, they would’ve done differently.

Box’s road, especially, was rather long and winding. It took the company nine months from filing its S-1 to actually IPOing — in part because the reaction to the numbers it disclosed in its S-1 was pretty negative at the time.

Pagerduty, on the other hand, had a more straightforward path, in part thanks to its strong financial position before it filed.

Disrupt SF runs October 2 to October 4 at the Moscone Center in the heart of San Francisco. Tickets are available here.

Powered by WPeMatico