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Security researchers find over a dozen iPhone apps linked to Golduck malware

Security researchers say they’ve found more than a dozen iPhone apps covertly communicating with a server associated with Golduck, a historically Android-focused malware that infects popular classic game apps.

The malware has been known about for over a year, after it was first discovered by Appthority infecting classic and retro games on Google Play, by embedding backdoor code that allowed malicious payloads to be silently pushed to the device. At the time, more than 10 million users were affected by the malware, allowing hackers to run malicious commands at the highest privileges, like sending premium SMS messages from a victim’s phone to make money.

Now, the researchers say iPhone apps linked to the malware could also present a risk.

Wandera, an enterprise security firm, said it found 14 apps — all retro-style games — that were communicating with the same command and control server used by the Golduck malware.

“The [Golduck] domain was on a watchlist we established due to its use in distributing a specific strain of Android malware in the past,” said Michael Covington, Wandera’s vice-president of product. “When we started seeing communication between iOS devices and the known malware domain, we investigated further.”

The apps include: Commando Metal: Classic ContraSuper Pentron Adventure: Super HardClassic Tank vs Super BomberSuper Adventure of MaritronRoy Adventure Troll GameTrap Dungeons: Super AdventureBounce Classic LegendBlock GameClassic Bomber: Super LegendBrain It On: Stickman PhysicsBomber Game: Classic BombermanClassic Brick – Retro BlockThe Climber Brick, and Chicken Shoot Galaxy Invaders.

According to the researchers, what they saw so far seems relatively benign — the command and control server simply pushes a list of icons in a pocket of ad space in the upper-right corner of the app. When the user opens the game, the server tells the app which icons and links it should serve to the user. They did, however, see the apps sending IP address data — and, in some cases, location data — back to the Golduck command and control server. TechCrunch verified their claims, running the apps on a clean iPhone through a proxy, allowing us to see where the data goes. Based on what we saw, the app tells the malicious Golduck server what app, version, device type, and the IP address of the device — including how many ads were displayed on the phone.

As of now, the researchers say that the apps are packed with ads — likely as a way to make a quick buck. But they expressed concern that the communication between the app and the known-to-be-malicious server could open up the app — and the device — to malicious commands down the line.

“The apps themselves are technically not compromised; while they do not contain any malicious code, the backdoor they open presents a risk for exposure that our customers do not want to take.

“A hacker could easily use the secondary advertisement space to display a link that redirects the user and dupes them into installing a provisioning profile or a new certificate that ultimately allows for a more malicious app to be installed,” said the researchers.

One of the iPhone apps, “Classic Bomber,” which was spotted communicating with a malicious command and control server. It’s since been pulled from the U.S. store. (Screenshot: TechCrunch)

That could be said for any game or app, regardless of device maker or software. But the connection to a known malicious server isn’t a good look. Covington said that the company has “observed malicious content being shared from the server,” but that it wasn’t related to the games.

The implication is that if the server is sending malicious payloads to Android users, iPhone users could be next.

TechCrunch sent the list of apps to data insights firm Sensor Tower, which estimated that the 14 apps had been installed close to one million times since they were released — excluding repeated downloads or installs across different devices.

When we tried contacting the app makers, many of the App Store links pointed to dead links or to pages with boilerplate privacy policies but no contact information. The registrant on the Golduck domain appears to be fake, along with other domains associated with Golduck, which often have different names and email addresses.

Apple did not comment when reached prior to publication. The apps are appear to still be downloadable from the App Store, but all now say they are “not currently available in the U.S. store.”

Apple’s app stores may have a better rap than Google’s, which every once in a while lets malicious apps slip through the net. In reality, neither store is perfect. Earlier this year, security researchers found a top-tier app in the Mac App Store that was collecting users’ browsing history without permission, and dozens of iPhone apps that were sending user location data to advertisers without explicitly asking first.

For the average user, malicious apps remain the largest and most common threat to mobile users — even with locked down device software and the extensive vetting of apps.

If there’s one lesson, now and always: don’t download what you don’t need, or can’t trust.

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How Trulia began paying down its technical debt

As every software company knows, over time as code ages and workarounds build on work-arounds, the code base becomes bloated. It becomes ever more difficult to get around the technical debt that you’ve built up over time. It’s really impossible to avoid this phenomenon, but at some point, companies realize that the debt is so great that it’s limiting their ability to build new functionality. That’s precisely what Trulia faced in 2017 when it began a process of paying down that debt and modernizing its architecture.

Trulia is a real estate site founded way back in 2005, an eternity ago in terms of technology. The company went public in 2012 and was acquired by Zillow in 2014 for $3.5 billion, but has continued to operate as an independent brand under the Zillow umbrella. It understood that a lot had changed technologically in the 12 years since its inception when engineering began thinking about this. The team knew it had a humongous, monolithic code base that was inhibiting the ability to update the site.

While they tried to pull out some of the newer functions as services, it didn’t really make the site any more nimble because these services always had to tie back into that monolithic central code base. The development team knew if it was to escape this coding trap, it would take a complete overhaul.

Brainstorming broad change

As you would expect, a process like this doesn’t happen overnight, taking months to plan and implement. It all started back in 2017 when the company held what they called an “Innovation Week” with the entire engineering team. Groups of engineers came up with ideas about how to solve this problem, but the one that got the most attention was one called Project Islands, which involved breaking out the different pieces of the site as individual coding islands that could operate independently of one another.

It sounds simple, but in practice it involved breaking down the entire code base into services. They would use Next.js and React to rebuild the front end and GraphQL, an open source graph database technology to rebuild the back end.

Deep Varma, Trulia’s VP of engineering, pointed out that as a company founded in 2005, the site was built on PHP and MySQL, two popular development technologies from that time. Varma says that whenever his engineers made a change to any part of the site, they needed to do a complete system release. This caused a major bottleneck.

What they really needed to do was move to a completely modern microservices architecture that allowed engineering teams to work independently in a continuous delivery approach without breaking any other team’s code. That’s where the concept of islands came into play.

Islands in the stream

The islands were actually microservices. Each one could communicate to a set of central common services like authentication, A/B testing, the navigation bar, the footer — all of the pieces that every mini code base would need, while allowing the teams building these islands to work independently and not require a huge rebuild every time they added a new element or changed something.

Cousine island. Seychelles. Photo: Martin Harvey/Getty Images

The harsh reality of this kind of overhaul came into focus as the teams realized they had to be writing the new pieces while the old system was still in place and running. In a video the company made describing the effort, one engineer likened it to changing the engine of a 747 in the middle of a flight.

Varma says he didn’t try to do everything at once, as he needed to see if the islands approach would work in practice first. In November 2017, he pulled the first engineering team together, and by January it had built the app shell (the common services piece) and one microservice island. When the proof of concept succeeded, Varma knew they were in business.

Building out the archipelago

It’s one thing to build a single island, but it’s another matter to build a chain of them and that would be the next step. By last April, engineering had shown enough progress that they were able to present the entire idea to senior management and get the go-ahead to move forward with a more complex project.

Photo of Rock Islands, Palau, Micronesia: J.W.Alker/Getty Images

First, it took some work with the Next.js development team to get the development framework to work the way they wanted. Varma said he brought in the Next.js team to work with his engineers. He said that they needed to figure out how to stitch the various islands together and resolve dependencies among the different services. The Next.js team actually changed its development roadmap for Trulia, speeding up delivery of these requirements, understanding that other companies would have similar issues.

By last July, the company released Neighborhoods, the first fully independent island functionality on the site. Recently, it moved off-market properties to islands. Off-market properties, as the name implies, are pages with information about properties that are no longer on the market. Varma says that these pages actually make up a significant portion of the company’s traffic.

While Varma would not say just how much of the site has been moved to islands at this point, he said the goal is to move the majority to the new platform in 2019. All of this shows that a complete overhaul of a complex site doesn’t happen overnight, but Trulia is taking steps to move off the original system it created in 2005 and move to a more modern and flexible architecture it has created with islands. It may not have paid down its technical debt in full in 2018, but it went a long way on laying the foundation to do so.

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Startups Weekly: VCs celebrate the new year the only way they know how

Venture capitalists swore in the new year the only way they know how… by submitting SEC paperwork for new funds! insert party hat/confetti emoji here.

As many of us brainstormed our New Year’s resolutions and let our hangovers wear off, several firms began this week what for some is a long and arduous process of raising a VC fund and for others is as simple as a few phone calls to LPs. What else happened this week? Pokémon GO creator Niantic secured $190 million, Mary Meeker announced the name of her fund and a whole bunch of people played with Popsugar’s somewhat sketchy twinning app.

Fresh funds:

Mary Meeker will raise up to $1.5 billion for Bond, her new VC fund. Union Square Ventures raised $429 million across two new funds. Lightspeed Venture partners announced a $560 million China fund. And biotech firm Atlas Venture brought in $250 million.

AR startups are failing:

TechCrunch’s Lucas Matney takes a look at struggling augmented reality startups and questions some of the larger players, from Magic Leap to Snap and Niantic. And speaking of Niantic, the Pokémon GO developer closed a $190 million funding round this week at a $3.9 billion valuation.

Indian startups start the year off strong:

Startups based in India raised more than $10 billion in 2018, per Venture Beat, a record amount of capital for the country. Already this year one company has closed a round larger than $100 million. CarDekho, an online marketplace for car sales in India, has pulled in a new $110 million Series C funding round this week to push deeper into financial services and insurance.

Future tech:

Boom Supersonic, which is building and designing what it calls the “world’s first economically viable supersonic airliner,” announced a $100 million Series B funding round led by Emerson Capital. Other investors include Y Combinator’s Continuity Fund, Caffeinated Capital, SV Angel, Sam Altman, Paul Graham, Ron Conway, Michael Marks and Greg McAdoo.

A startup disrupting the … bottled water business:

FloWater has raised $15 million for its reusable water bottle refilling stations to produce purified water. Bluewater, a Swedish company that sells water purifiers, among other things, led the round.

VC subsidized vending machines:

Vengo makes wall-mounted mini-vending machines the size of large picture frames that it then sells to vending machine distributors, asking for a small fee per month in exchange for access to its software. Now it has $7 million to build out its business.

A VC gets a second chance:

After SpaceX filed more SEC paperwork as part of its $500 million upcoming fundraise, TechCrunch’s Connie Loizos noticed a familiar name on the document: Steve Jurvetson. Jurvetson is a longtime board member of both Tesla and SpaceX, but after he left DFJ, the venture capital firm he co-founded, in 2017 amid questions about his personal conduct, there was uncertainty around whether he would keep those director positions. Well, it looks like Elon Musk is standing by Jurvetson.

And finally, are you smarter than a TechCrunch reporter?

Let this test decide.

 

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Engineers can now reverse-engineer 3D models

A system that uses a technique called constructive solid geometry (CSG) is allowing MIT researchers to deconstruct objects and turn them into 3D models, thereby allowing them to reverse-engineer complex things.

The system appeared in a paper entitled “InverseCSG: Automatic Conversion of 3D Models to CSG Trees” by Tao Du, Jeevana Priya Inala, Yewen Pu, Andrew Spielberg, Adriana Schulz, Daniela Rus, Armando Solar-Lezama, and Wojciech Matusik.

“At a high level, the problem is reverse engineering a triangle mesh into a simple tree. Ideally, if you want to customize an object, it would be best to have access to the original shapes — what their dimensions are and how they’re combined. But once you combine everything into a triangle mesh, you have nothing but a list of triangles to work with, and that information is lost,” said Tao Du to 3DPrintingIndustry. “Once we recover the metadata, it’s easier for other people to modify designs.”

The process cuts objects into simple solids that can then be added together to create complex objects. Because 3D scanning is imperfect, the creation of mesh models of various objects rarely leads to a perfect copy of the original. Using this technique, individual parts are cut away, analyzed and reassembled, allowing for a more precise scan.

“Further, we demonstrated the robustness of our algorithm by solving examples not describable by our grammar. Finally, since our method returns parameterized CSG programs, it provides a powerful means for end-users to edit and understand the structure of 3D meshes,” said Du.

The system detects primitive shapes and then modifies them. This allows it to recreate almost any object with far better accuracy than in previous versions of the software. It’s a surprisingly cool way to begin hacking hardware in order to understand it’s shape, volume and stability.

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Boom Supersonic nabs $100M to build its Mach 2.2 commercial airliner

One Denver-based startup’s long-shot bid to move today’s commercial jets beyond supersonic speeds just got a big injection of cash.

Boom Supersonic, which is building and designing what it calls the “world’s first economically viable supersonic airliner,” announced today that they’ve closed a $100 million Series B funding round led by Emerson Capital. Other investors include Y Combinator Continuity, Caffeinated Capital, SV Angel, Sam Altman, Paul Graham, Ron Conway, Michael Marks and Greg McAdoo.

The startup has raised around $140 million to date. The team has about 100 employees, and hopes to double that number this year with its new funding.

“Today, the time and cost of long-distance travel prevent us from connecting with far-off people and places,” said Boom CEO Blake Scholl in a statement. “Overture fares will be similar to today’s business class—widening horizons for tens of millions of travelers. Ultimately, our goal is to make high-speed flight affordable to all.”

Alongside the fundraise, Boom is further detailing its plans to begin testing its Mach 2.2 commercial airliner this year. The company is aiming to launch a 1:3 scale prototype of its planned Overture airliner this year, called the XB-1. The two-seater plane will serve to validate the technologies being built for the full-sized jet.

The startup’s supersonic Overture jet will hold 55 passengers, and the team hopes that the costs of flying more than double the speed of sound will be comparable to today’s business-class ticket prices. The company already has pre-orders from Virgin Group and Japan Airlines for 30 airliners.

Indeed, $100 million may seem like a lot of money, but the development costs for lengthy projects like these can quickly race toward the billions of dollars, suggesting that if they carry out their mission, they’re going to need a whole lot more.

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Trading app Robinhood is stealthily recruiting ahead of planned UK launch

Robinhood, the U.S.-based “zero-fee” stock-trading app and cryptocurrency exchange, is stealthily recruiting for a new London office ahead of plans to eventually launch in the U.K., TechCrunch has learned.

According to sources within London’s thriving fintech industry, Robinhood is hiring for multiple U.K. positions. These span recruitment, operations, marketing/PR and customer support. Notably, the company is also seeking people in compliance and product, including product design.

In other words, significant localisation and local product market fit appears to be the intention. Compliance is also an important part of Robinhood’s future U.K. regulatory requirements as it applies to local regulator the FCA for the appropriate licenses. Robinhood declined to comment on its U.K. plans.

Meanwhile, news that Robinhood is stealthily recruiting ahead of a planned U.K. launch is interesting in the context of local fintech startups that have launched or announced their own fee-free trading offerings.

Launched late last year, London-based Freetrade has built a bona-fide “challenger broker,” including obtaining the required license from the FCA, rather than simply partnering with an established broker. The app lets you invest in U.K. stocks and ETFs, but will soon add U.S. stocks, too. Trades are “fee-free” if you are happy for your buy or sell trades to execute at the close of business each day. If you want to execute immediately, the startup charges a low £1 per trade.

In June last year, Revolut, also headquartered in London, announced its intention to add commission-free trading to its banking app, in what was seen as a bid to compete with Robinhood. So far, no product has surfaced, although I’m told we should see trading added to Revolut in Q1 this year.

What’s intriguing about the Revolut-Robinhood comparisons is that the two companies share a number of investors, namely Index and DST. Both companies have incredibly high valuations, too, and, depending on respective burn rates, quite deep pockets.

Co-founded by Baiju Bhatt and Vlad Tenev (pictured above), Robinhood claims 6 million accounts and is valued at $5.6 billion, having raised a total to date of $539 million. It has around 300 employees across its HQ in Menlo Park, California and its regional HQ in Lake Mary, Florida.

Revolut claims 3.5 million users, and at its last funding round was valued at $1.7 billion. The fintech has raised a total of $340 million, and has a headcount of 600 in London and across its various regional offices.

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Moesif raises $3.5M seed round to provide insight into API usage

Today, many companies provide developer access to their services via APIs. Moesif, a San Francisco startup, wants to help these companies gain insight into their customer’s API usage patterns. Today, the company announced a $3.5 million seed round.

The investment was led by Merus Capital, with participation by Heavybit, Fresco Capital and Zach Coelius, whose investments include Cruise Automation, which was sold to GM in 2016 for $1 billion.

Moesif co-founder and CEO Derric Gilling says Moesif is akin to Mixpanel or Google Analytics, except instead of tracking web or mobile analytics, it looks at API usage. “As more and more companies are using and creating these APIs, there comes a point where you need to understand how your customers are using them, any problems they are running into and how do you actually decrease developer churn.”

Heat map showing API usage by region. Screenshot: Moesif

The company is aiming at two primary types of users. First of all, there are developers who can use the monitoring features to understand when there are issues with the API. These folks have access to the free tier.

Moesif also targets business units like product management, sales and marketing, which use the tool to understand who’s using the API, how often and, with machine learning, understand who is likely to stop using the product based on how they are using it. The tool can tie into other business systems like Mailchimp or a CRM tool to get a more complete picture of customers as they use the API.

The product was released last year, and Gilling says his company already has 2,000 customers, which includes both the free and paid tiers. He said they have had particular success with SaaS and fintech companies, both of which make heavy use of APIs. Customers include PowerSchool, Schwab and DHL.

While the company currently consists of two founders and one employee, flush with the seed investment, it intends to hire around 10 people in the next six months, including a VP of engineering, additional developers and sales and marketing folks.

Moesif was founded in late 2016, and the founders went through the Alchemist Accelerator last year.

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Qualcomm patent dispute forces Apple to pull iPhone 7 and 8 from its stores in Germany

In more bad news for Apple, the company’s iPhone 7 and iPhone 8 models are not currently on sale in its own retail stores in Germany.

This follows an injunction issued by a Munich court last month related to patent litigation brought by chipmaker Qualcomm that’s being enforced from today. The patent dispute concerns smartphone power management technology that’s used to extend battery life.

In December, the Munich court sided with Qualcomm, finding that Apple is infringing its patented power savings technology in the two models — granting a permanent injunction.

The court ordered Apple to cease the sale, offer for sale and importation for sale in Germany of infringing iPhones.

Apple has said it will appeal.

The Apple Germany website currently offers the newest models of the iPhone (the XS, XS Max and XR); and older models from 2014 (iPhone 6 and 6 Plus); 2015 (iPhone 6S and 6S Plus); and 2016 (iPhone SE). But buyers looking for 2016’s iPhone 7 or 2017’s iPhone 8 will be disappointed.

Yesterday Qualcomm announced it had posted security bonds totalling €1.34BN required by the court, enabling the injunction issued by the District Court of Munich on December 20 to be enforced.

The bonds are required to cover potential damages incurred by Apple should the judgment be overturned or amended on appeal. Qualcomm had said on December 20 that it would post the bonds “within a few days.”

In a statement yesterday the chipmaker also claimed the court had ordered Apple to recall infringing iPhones from third-party resellers in the market.

But at the time of writing, the iPhone 7 and iPhone 8 models are still being offered by Apple resellers in Germany.

Amazon.de currently offers both handsets, for instance. Gravis, Germany’s biggest reseller of Apple products, also told Reuters it was still selling all Apple products, including the two models.

Qualcomm has also been pursing patent litigation against Apple in China and the U.S., and last month Apple appealed against a preliminary injunction banning the import and sales of old iPhone models in China.

In that case, the patents relate to editing photos and managing apps on smartphone touchscreens.

In the U.S., Qualcomm has most recently accused Intel engineers working with Apple of stealing trade secrets.

The feud dates back further, though. Two years ago the FTC filed charges against Qualcomm accusing it of anticompetitive tactics in an attempt to maintain a monopoly in its chip business — with Apple officially cited in the complaint.

Cupertino also filed a billion-dollar royalty lawsuit against the chipmaker at the same time, accusing it of charging for patents “they have nothing to do with.”

The legal battle between the pair shows no signs of fizzling out, and has led Apple to reduce its reliance on Qualcomm chips — with Intel the short-term beneficiary.

An Apple spokesperson declined to comment on the latest litigious development in Germany, but pointed to its statement from December 20 in which it takes a broad swipe at Qualcomm’s “tactics.”

In the statement, Apple also said resellers in the market would continue to stock all models.

It writes:

Qualcomm’s campaign is a desperate attempt to distract from the real issues between our companies. Their tactics, in the courts and in their everyday business, are harming innovation and harming consumers. Qualcomm insists on charging exorbitant fees based on work they didn’t do and they are being investigated by governments all around the world for their behavior.
We are of course disappointed by this verdict and we plan to appeal. All iPhone models remain available to customers through carriers and resellers in 4,300 locations across Germany. During the appeal process, iPhone 7 and iPhone 8 models will not be available at Apple’s 15 retail stores in Germany. iPhone XS, iPhone XS Max and iPhone XR will remain available in all our stores.

The sideswipe at Qualcomm’s “tactics” is perhaps also a reference to the use of a controversial PR firm, Definers, which — as we reported in November — sent pitches slinging mud at Apple seemingly on Qualcomm’s behalf.

Late last year Facebook confirmed it had severed its own business relationship with the PR firm after it was revealed to have used anti-Semitic smear tactics to try to discredit Facebook critics.

We’ve asked Qualcomm for comment on its use of the PR firm.

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Challenger bank Monzo has quietly begun working on a U.S. launch

Monzo, the U.K. challenger bank with more than a million customers and a unicorn valuation to boot, has quietly begun working on a U.S. launch, TechCrunch has learned.

According to multiple sources, the fintech startup has set up a small team to begin laying the groundwork to bring a version of Monzo to North America, which will initially be powered by a U.S. banking partner while Monzo works on the necessary regulatory licenses to go it alone.

The plan, which could still be subject to change, is for Monzo to create a “lite” version of its product for U.S. customers, much in the same way it first launched in the U.K. with a pre-paid debit card before eventually offering a fully fledged bank account.

The thinking, according to one person familiar with the company’s strategy, is that this will enable Monzo to build up a U.S. customer base and iterate its product for the U.S. market in parallel with the challenger bank’s federal charter bank application.

I understand that the plan is for the initial Monzo U.S. product to offer in-app signup, the trademark “hot coral” Monzo debit card, an account and routing number, the ability to make and accept payments, ATM withdrawals, and real-time transaction notifications. In other words, many of the same features that has endeared Monzo with U.K. customers.

Contacted by TechCrunch, a Monzo spokesperson provided the following statement:

We’re really excited about international expansion over the coming months and years. After all, it’s hard to build a bank for a billion people in the UK alone!

However, we don’t have anything specific to share at this stage about those plans. When we do, we’ll be sure to tell the world.

Meanwhile, news that Monzo has begun executing U.S. expansion plans isn’t entirely surprising, even if appears to be happening significantly faster than previously thought.

Co-founder and CEO Tom Blomfield has openly talked about his ambition to bring Monzo to the U.S. one day, and the London-based challenger bank boasts an array of U.S. investors. They include most recently General Catalyst, along with the likes of Thrive Capital, Goodwater Capital, Stripe, Michael Moritz and Instagram co-founder Kevin Systrom.

The fintech company also recently opened a Las Vegas office, from which it offers twilight hours customer support for U.K. customers. Or at least that is the party line. Now it appears that Las Vegas could soon have Monzo customers closer to home to keep happy, too.

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FloWater just raised $15 million to put bottled water out of business

FloWater, an eight-year-old, Burlingame, Calif.-based company whose reusable water bottle refilling stations produce purified water, has raised $15 million in its first major round of funding. Bluewater, a Swedish company that sells water purifiers, among other things, led the round.

FloWater caters to schools, colleges, fitness centers, hotels and offices, and, in the words of CEO Rich Razgaitis, set out to address four environmental concerns from the outset: obesity in the U.S., which has been tied in part to the rise of sugary, carbonated beverages; the nearly 40 billion single-use plastic water bottles that are used and tossed aside every year; the millions of barrels of oil and hundreds of millions of pounds of CO2 byproduct waste used to create and transport bottled water; and the toxins in single-use plastic bottles, including endocrine-disrupting chemicals.

It has a pretty compelling case to make, in short, as other purveyors of refilling stations would surely argue, and which clearly persuaded 13 investors altogether (according to a new SEC filing) to write checks to the company.

And it all started with an $18,600 bank loan, according to the company’s founder, Wyatt Taubman, who remains on the company’s board but stepped aside as head honcho in 2015 and has since founded a cold-pressed juice company.

Per his LinkedIn, Taubman, says he used that bank loan to launch a pilot refill station, before shaking $125,000 out of friends and family, and taking out a second, $62,000 loan to launch additional refill stations. The company later raised $950,000 from the Tech Coast Angels and the Hawaii Angels, hired Razgaitis, redesigned the look of its product and, in 2016, raised $2.6 million in Series A funding.

FloWater customers include Google, Airbnb, Specialized Bikes and, somewhat ironically, Red Bull.

It says its stations are now in nearly 50 states.

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