

Looks like things haven’t gone completely smoothly with Quibi‘s launch.
The issue appears to have been resolved, but the Quibi customer support account tweeted this afternoon that “some users may be experiencing problems with the Quibi app,” only to add an hour later that “Users should once again be able to use the Quibi app normally. Thank you for your patience.”
It’s not clear how widespread the outage was, but according to The Verge, one staffer saw an error screen and was unable to browse the app, while another was unable to create an account. The app seems to be working normally as I write this shortly after 4pm Eastern.
If nothing else, it’s a reminder that reliably delivering streaming video is hard, even for a startup that’s raised $1.75 billion. Heck, even Disney experienced widespread streaming issues when it launched Disney+ in November. (It all worked out fine.)
Users should once again be able to use the @Quibi app normally. Thank you for your patience.
— Quibi Cares (@quibicares) April 6, 2020
A quick catch-up for those of you still wondering what Quibi even is: It’s a short-form video service founded by Hollywood executive Jeffrey Katzenberg and led by CEO Meg Whitman (previously CEO of Hewlett Packard Enterprise and eBay).
The app is launching with nearly 50 shows today, all of them created specifically for mobile, with episodes that are less than 10 minutes long. After a 90-day free trial, it’ll cost you $4.99 with ads or $7.99 per month without ads.
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It has the simplest name, but the sort of shadowy overtones that national security writers lust after.
Team Telecom, a mostly informal working committee of the Departments of Defense, Homeland Security and Justice (along with affiliated agencies) has for years been quietly tasked with evaluating and maintaining the security of America telecom infrastructure in concert with the FCC. Its primary objective as far as we have been able to ascertain is to monitor the ownership of key telecom assets to ensure they don’t fall into the hands of suspect nations (think China, Russia, etc).
Last year, Mark Harris over on Extra Crunch took an in-depth look at the extreme delays companies can experience going through a Team Telecom review (membership required), which in the case of China Mobile’s expansion into the U.S., extended up to seven years before the Team rejected the Chinese bid for market entry.
That informal arrangement is disappearing, as the administration over the weekend published a new executive order formally instantiating Team Telecom as a legal process for reviewing applications for telecom licenses, deals and other requests made to the FCC.
Under a newly christened “Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector” (CAFPUSTSS?), the Committee will be charged with assisting “the FCC in its public interest review of national security and law enforcement concerns that may be raised by foreign participation in the United States telecommunications services sector.”
Like its Team Telecom forerunner, the Committee will be made up of the heads of Justice, Defense and Homeland Security, with the attorney general playing the role of chair. Applications to the Committee will be referred to the U.S. government’s highest-ranking intelligence officer, the Director of National Intelligence, for analysis.
Unlike in the past, where the timeline for reviews was anything but standardized, the executive order provides for a 120-day adjudication process, with a 90-day extension if the Committee has additional concerns and goes through a secondary review.
In a brief press statement, FCC Chairman Ajit Pai said, “I applaud the President for formalizing Team Telecom review and establishing a process that will allow the Executive Branch to provide its expert input to the FCC in a timely manner.” The FCC intends to finish its own rulemaking around Team Telecom, a process which was first proposed at the tail end of the Obama administration and has been on-going ever since.
These reforms to Team Telecom are in line with similar reforms made to CFIUS, the Committee for Foreign Investment in the United States, which were finalized at the beginning of this year after Congress passed a reform bill in 2018.
While the new rules will provide some certainty to areas of telecom like fiber optic cable expansion and wireless services, expect the new rules to be used to put even more restrictions on countries like China hoping to get a slice of the U.S. infrastructure market. Indeed, in the FCC’s statement today, the agency said, “As we demonstrated last year in rejecting the China Mobile application, this FCC will not hesitate to act to protect our networks from foreign threats.”
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Quibi launches its mobile streaming service, Apple sources 20 million protective masks and Red Hat announces a new CEO. Here’s your Daily Crunch for April 6, 2020.
1. Quibi launches its mobile streaming service in the middle of the quarantine era
The much-hyped mobile app promising to deliver “quick bites” of video entertainment is finally here. The company has been in the headlines for more than two years, thanks to the involvement of founder Jeffrey Katzenberg (who previously co-founded DreamWorks Animation) and CEO Meg Whitman (previously the CEO of eBay and Hewlett Packard Enterprise), not to mention $1.75 billion in funding.
Judging from a few hours of exploration, the app is as slick as promised, with impressive Turnstyle technology for switching between portrait and landscape viewing. What’s missing so far, however, is any real sense of creative breakthrough.
2. Apple has sourced over 20 million protective masks, now building and shipping face shields
The company is working with governments around the world to distribute its supply of face masks to where it’s needed most. Meanwhile, the first delivery of Apple face shields went out to Kaiser hospital facilities in the Santa Clara valley earlier this week, according to CEO Tim Cook.
3. Paul Cormier takes over as Red Hat CEO, as Jim Whitehurst moves to IBM
Cormier would seem to be a logical choice to run Red Hat, having been with the company since 2001. He joined as its VP of engineering and has seen the company grow from a small startup to a multi-billion dollar company.
Jon Evans argues that GrubHub (which also owns Seamless) is hurting, not helping, the restaurants that it pretends it’s trying to support.
5. Pandemic puts the brakes on micromobility
Ride Report creates software that enables cities to better work with micro-mobility operators and has a bird’s-eye view on the industry. In a conversation with TechCrunch, CEO William Henderson outlined what we can expect for micro-mobility operators during the pandemic and once it’s over. (Extra Crunch membership required.)
6. Open banking fintech Yapily raises $13M Series A
Founded in mid-2017 by ex-Goldman Sachs employee Stefano Vaccino, Yapily’s open banking platform makes it easier for various service providers to connect to banks. Specifically, it provides a way to retrieve financial data and initiate payments via a “single secure API” that in turn connects to each supported bank’s open API.
7. This week’s TechCrunch podcasts
The latest full-length episode of Equity discusses the tremendous growth of Zoom and how that’s cast a spotlight on the videoconferencing app’s security flaws, while the Monday news roundup looks for positive signs in startup funding. And on Original Content, we review the first season of “Star Trek: Picard” and the extremely unsettling Netflix film “The Platform.”
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.
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Koch Industries announced today that it has closed on the acquisition of Infor, announced in February. The company never officially announced the purchase price, but sources indicated that it was close to $13 billion, putting it in line to be one of the top 10 enterprise acquisitions this year.
The company will remain an independent subsidiary of Koch, which tends to deal more in manufacturing than software. The goal is to use the resources of Koch to continue to build out the Infor product family with a focus on industry-specific solutions, according to the company.
At the time of the deal in February, CEO Kevin Samuelson certainly saw the potential of having a company with the financial resources of Koch backing his organization.
“As a subsidiary of a $110 billion+ revenue company that re-invests 90% of earnings back into its businesses, we will be in the unique position to drive digital transformation in the markets we serve,” Samuelson said.
As the company pointed out, Infor is helping customers move to the cloud, even in industries like manufacturing, distribution and finance that might otherwise be stuck on legacy systems. This transition to the cloud is becoming even more pressing as companies deal with the COVID-19 crisis and are forced to find creative ways to keep their businesses going, even when many employees can’t come into the office. Having access to applications in the cloud certainly helps ease that burden.
The company counts some of the largest organizations in the world as customers, including 17 of the top 20 global banks, 9 of the 10 largest global hotel brands and 7 of the top 10 global luxury brands
Infor was founded in 2002 and raised over $6 billion along the way, according to PitchBook. Its most recent investment before the acquisition was for $1.5 billion in January 2019.
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When Ginni Rometty indicated that she was stepping down as IBM CEO at the end of January, the company announced that Arvind Krishna would be taking over, while Red Hat CEO Jim Whitehurst would become president. To fill his role, Red Hat announced today that long-time executive Paul Cormier has been named president and CEO.
Cormier would seem to be a logical choice to run Red Hat, having been with the company since 2001. He joined as its VP of engineering and has seen the company grow from a small startup to a multi-billion dollar company.
Cormier spoke about the historical arc he has witnessed in his years at Red Hat. “Looking back to when I joined, we were in a different position and facing different issues, but the spirit was the same. We were on a mission to convince the world that open source was real, safe and enterprise-grade,” Cormier said in an email to employees about his promotion.
Former CEO Whitehurst certainly sees this as a sensible transition. “After working with him closely for more than a decade, I can confidently say that Paul was the natural choice to lead Red Hat. Having been the driving force behind Red Hat’s product strategy for nearly two decades, he’s been intimately involved in setting the company’s direction and uniquely understands how to help customers and partners make the most out of their cloud strategy,” he said in a statement.
In a Q&A with Cormier on the company website, he talked about the kind of changes he expects to see under his leadership in the next five years of the company. “There’s a term that we use today, ‘applications run the business.’ In five years, I see it becoming the case for the majority of enterprises. And with that, the infrastructure underpinning these applications will be even more critical. Management and security are paramount — and this isn’t just one environment. It’s bare metal and hypervisors to public and private clouds. It’s Linux, VMs, containers, microservices and more,” he said.
When IBM bought Red Hat in 2018 for $34 billion, there was widespread speculation that Whitehurst would eventually take over in an executive position there. Now that that has happened, Cormier will step into run Red Hat.
While Red Hat is under the IBM umbrella, it continues to operate as a separate company with its own executive structure, but that vision that Cormier outlined is in line with how it will fit within the IBM family as it tries to make its mark on the shifting cloud and enterprise open source markets.
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Fintech startup Lydia is the dominating mobile payment app in France with most of its 3.3 million users in its home country. That’s why the startup has been working hard over the past ten days to ship a feature that was originally planned for this summer — donations to charities and hospitals.
Starting today, Lydia users can choose between 17 charities and send money to those charities using the familiar Lydia payment flow. It works like sending money to your friends and family.
Donations start at €0.50 and those are one-off payments — you can’t set up recurring payments or round up transactions for instance.
Lydia recently introduced “the market”, a marketplace of financial products, such as small credit lines, phone insurance and free credit on home insurance and utility bills. The market menu was buried under the profile tab. The company is now surfacing that screen in its own tab right next to your accounts and transaction history. You can find donations as a new button in the market.
There’s another way to donate. On the payment screen, when you tap a sum and hit next, in addition to the usual list of recipients, you can choose to send money to a charity from there as well. This feature is live on Android and will be available soon on iOS — iOS users have to go through the market for now.
The startup has selected 17 charities for now, but that list could grow over time. You’ll find public hospitals (Paris, Nantes, Strasbourg, Grenoble, Lille and Nice), charities focused on health as well as general public interest charities (Fondation de France, Fondation 101, Médecins du Monde, Epic, Action contre la Faim, La Croix Rouge française, La Fondation Abbé Pierre, La Ligue Nationale contre le Cancer, Réseau Entourage and La Maison des Femmes de Saint-Denis).
If you’re not a Lydia user, you can still use Lydia’s payment flow in your web browser with a credit or debit card. (But nothing is stopping you from donating directly on the charity websites of course.)
If you want to give a large sum of money and deduct part of your donation from your income taxes, you’ll have to ask charities directly. Lydia can’t give you a tax form directly as it only acts as an intermediary.
Eventually, Lydia will deduct processing fees from your donations before handing them over to charities. But the company is waving fees until June 30 due to the coronavirus crisis.
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Quibi, the much-hyped mobile app promising to deliver “quick bites” of video entertainment, is finally here.
The company has been in the headlines for more than two years, thanks to the involvement of founder Jeffrey Katzenberg (who previously co-founded DreamWorks Animation) and CEO Meg Whitman (previously the CEO of eBay and Hewlett Packard Enterprise).
Plus, it’s raised a whopping $1.75 billion to fund a star-studded content slate from filmmakers like Steven Spielberg, Guillermo del Toro, Lena Waithe and Catherine Hardwicke.
Quibi is launching with nearly 50 shows today. The initial lineup includes “Chrissy’s Court” (in which Chrissy Teigen presides over small claims court), “Shape of Pasta” (a food and travel show starring chef Evan Funke), “Most Dangerous Game” (a dystopian thriller starring Liam Hemsworth) and “Survive” (a scripted plane crash drama starring Sophie Turner). All the episodes are less than 10 minutes in length, and can be viewed in either portrait or landscape mode.
Quibi says it will be delivering more than 25 new episodes every day, including segments of what the company is calling Daily Essentials — news and entertainment shows like “Last Night’s Late Night” from Entertainment Weekly and “The Replay” from ESPN.
The service will cost $4.99 with ads or $7.99 per month without ads. Quibi is also offering a 90-day free trial if you sign up before the end of April.
Image Credits: Quibi
In a briefing with reporters last week, CTO Rob Post acknowledged that it’s been a long, expensive road to launch. But he said that given the heavy investment in content, “There was no room for [Chief Product Officer Tom Conrad] and I to deliver a minimum viable product.” Instead, they had to build something that was fully polished.
While Quibi has been building up to this for months, with a big presentation at the Consumer Electronics Show, Super Bowl ads and more, the world has changed, with a global pandemic making this a strange time to launch any product.
People are certainly looking for distraction and escape right now. But the app is designed for viewing while you’re on-the-go, whether that’s walking around, waiting in line or sitting in the backseat of a car — all moments that are happening considerably less often as huge swaths of the population are advised to shelter in place and maintain social distance.
Still, Post argued that there’s a need for the kind of entertainment that Quibi is offering.
“I’m looking to take small breaks more than ever before to stand up, walk around, go outside,” he said. “Our use cases are these in-between moments. Now more than ever, that use case is still present.”
And of course, these restrictions have also created challenges for Quibi’s launch and content production.
“That’s meant all kinds of things,” Conrad said. “Our Daily Essentials, which were all set to be produced in studios in New York and L.A. each day, in most instances are being shot in people’s homes … Everybody from the production team to postproduction houses to the engineering and marketing organizations are trying to adapt to this moment.”
Quibi has already been showing off is Turnstyle technology, which allows for a seamless transition back-and-forth between portrait and landscape modes. (Apparently Quibi’s filmmakers have to deliver two edits of each episode, one optimized for each orientation.) Last week, the company gave reporters access to the full app.
Judging from a few hours of exploration, Quibi is indeed as polished as Post and Conrad promised, making it easy to swipe through and browse the day’s offerings. Turnstyle also works smoothly, with a blink-and-you’ll-miss-it transition every time I rotate my phone.
I quickly noticed, however, that I was torn between the two viewing modes. Portrait mode was more comfortable, particularly when I was watching a full seven- or eight-minute episode, but landscape mode looked much more cinematic, and often included imagery that had been cropped out of the more narrow, vertical footage.
Image Credits: Quibi
In addition, the focus on a smartphone app — rather than an experience for the browser, tablet or connected-TV — made for a clumsy experience anytime I tried to watch with someone else. (The whole point is to focus on the mobile viewing experience, but Conrad said, “If there’s appetite for Quibi in the living room or on tablets, we certainly will follow that interest as the data reveals.”)
As for the content itself, my favorite show was probably “Most Dangerous Game,” which kicks off with a tantalizingly bleak introduction (the premise will be familiar to viewers of the classic film of the same name). I also enjoyed “Shape of Pasta,” which includes plenty of mouth-watering pasta footage, and”Chrissy’s Court” — Teigen is always delightful, and I liked seeing a courtroom reality show that leans more into humor than drama.
At CES, Whitman positioned Quibi as the first platform to truly take advantage of the new creative opportunities that mobile phones offer to filmmakers. She also emphasized that in contrast to free video platforms like YouTube, Quibi will offer “Hollywood-quality content.”
“[YouTube] is the most ubiquitous, democratized, incredibly creative platform,” Whitman told us. “But they make content for hundreds of dollars a minute. We make it for $100,000 a minute.”
The production value is certainly evident — most of the shows I watched look significantly more expensive that what you’ll find on YouTube. What’s missing so far, however, is any real sense of the creative breakthrough that Whitman was hinting at. Instead, Quibi delivers well-produced, moderately entertaining shows that can be watched when you’ve got a few minutes to spare. They’re fine, but rarely more than that.
Maybe that will be enough for most viewers, particularly during the trial period. The challenge will be convincing those viewers to stick around and pay a subscription fee. To do that, I suspect Quibi will need a breakout show, or something that really takes advantage of the phone in a new way. We’ll see if that arrives in the months to come.
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In the time of COVID-19, much of what transpires from the science world to the general public relates to the virus, and understandably so. But other domains, even within medical research, are still active — and as usual, there are tons of interesting (and heartening) stories out there that shouldn’t be lost in the furious activity of coronavirus coverage. This last week brought good news for several medical conditions as well as some innovations that could improve weather reporting and maybe save a few lives in Cambodia.
Arrhythmia is a relatively common condition in which the heart beats at an abnormal rate, causing a variety of effects, including, potentially, death. Detecting it is done using an electrocardiogram, and while the technique is sound and widely used, it has its limitations: first, it relies heavily on an expert interpreting the signal, and second, even an expert’s diagnosis doesn’t give a good idea of what the issue looks like in that particular heart. Knowing exactly where the flaw is makes treatment much easier.
Ultrasound is used for internal imaging in lots of ways, but two recent studies establish it as perhaps the next major step in arrhythmia treatment. Researchers at Columbia University used a form of ultrasound monitoring called Electromechanical Wave Imaging to create 3D animations of the patient’s heart as it beat, which helped specialists predict 96% of arrhythmia locations compared with 71% when using the ECG. The two could be used together to provide a more accurate picture of the heart’s condition before undergoing treatment.
Another approach from Stanford applies deep learning techniques to ultrasound imagery and shows that an AI agent can recognize the parts of the heart and record the efficiency with which it is moving blood with accuracy comparable to experts. As with other medical imagery AIs, this isn’t about replacing a doctor but augmenting them; an automated system can help triage and prioritize effectively, suggest things the doctor might have missed or provide an impartial concurrence with their opinion. The code and data set of EchoNet are available for download and inspection.
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It’s no secret that adaptability has become a critical trait for knowledge workers. To stay on top of a rapidly evolving world, we must assess new situations, make intelligent decisions and implement them effectively.
A 2014 research report by Barclays indicated that 60% of employers say adaptability has become more important during the last decade, and BBC called adaptability the “X factor” for career success in an era of technological change.
But even the most intrepid executive, entrepreneur or freelancer would be forgiven for struggling to adapt to a global pandemic. The impact of coronavirus has been unrelenting: hospitals at capacity, students sent home, conference cancellations, sold out inventory, markets in free fall and cities under lockdown.
Whatever you thought 2020 was going to look like, you were dead wrong. Box CEO Aaron Levie and Stanford professor Bob Sutton’s recent Twitter exchange said it all:
Not just start-ups. Every big company, every nonprofit, every government organization, and most people too
— Bob Sutton (@work_matters) March 16, 2020
This moment requires us to learn new skills, develop new habits and let go of old ways of working. In the book “Range,” there’s a chapter about “dropping familiar tools” that details how experienced professionals will overlearn specific behavior and then fail to adapt to a new circumstance. This mentality affected everyone from firefighters to aviation crews to NASA engineers, often with deadly results, and underscores how hard it can be to adapt to change.
To help us cultivate adaptability in this unprecedented moment, I sought answers in unexpected places. Here’s what I learned.
Adaptability is required first and foremost when circumstances change. It’s easy to get attached to certain outcomes, especially when they’ve been planned long in advance or have significant emotional weight.
Due to coronavirus, a couple I know is postponing their wedding originally set for April. Having tied the knot only a year ago myself, I can’t imagine how frustrating that must be for them. But it was the right decision; demanding that the show go on would have been dangerous for their families, friends and the public at large.
I recently spoke with my friend Belinda Ju, an executive coach with a longstanding meditation practice. Non-attachment is a core concept of Buddhism, the spiritual path she’s followed for many years, and I wanted her thoughts on how that idea might help us adapt to unforeseen circumstances.
“Attachment doesn’t work because certainty doesn’t work. You can’t predict the future,” she explained. Being attached to something means “seeing the world through a false lens. Nothing is fixed.” For Ju and her clients, non-attachment doesn’t mean giving up on goals — it means focusing on what you can control.
“You might have a fixed goal of needing to raise X million dollars to keep your team afloat,” she said. “But in the age of coronavirus, investors might be slower to respond. So what are the levers in your control? What are the options you have and the pros and cons to each one?”
Her points hit home for me. As a NYC-based startup founder, I was preparing to make several trips to the West Coast to raise the next round for my company, Midgame, a digital party host for gamers.
I like pitching in person, but that’s obviously not going to happen, so I need to embrace video calls as my new reality. By doing that, I can get to stocking up on coffee, cleaning up my work space and setting up a microphone so when I do pitch over video, I’m bringing my A game.
Another way to think about adaptability is that it’s the ability to improvise. In theater, improv performers can’t rely on prewritten lines, and have to react in real time to suggestions from the audience or the words and actions of their scene partners.
“ ‘Playing the scene you’re in’ is a principle from improv which means to be present to the situation you’re in.”
That’s what Mary Lemmer told me. As an entrepreneur and VC who spent a stint at The Second City improv theater in Chicago, Lemmer knows a thing or two about having to adapt. Today, she brings her insights to corporations through training and workshops.
She explained that as an improv performer, you may start a scene with a certain idea in mind of how it will go, but that can quickly change. “If you’re not present,” she said, “then you’re not actively listening and because there’s no script, you’ll miss details. That’s when scenes fall apart.”
When I was a PM at Etsy and we had a major launch, we’d get engineering, dev ops, product, marketing and customer support together in a room to talk through the final event sequencing. These weren’t always the most exciting meetings and it was easy to get distracted by email or chat. One time engineering announced a significant last-minute issue that almost slipped through the cracks. Luckily, someone piped up with a clarifying question and we were all able to work together to minimize the issue.
Lemmer argues that in improv, like in business, you can’t make assumptions about people or situations. “We see this a lot in board meetings. People start to assume ‘Sally’ will always be the proactive one or ‘Jim’ will always be the naysayer and tune out.”
This is kind of attitude is problematic in a stable environment, but downright dangerous in an unstable situation where new data and events can quickly open up a new set of challenges and opportunities.
Early on, some experts thought the coronavirus crisis would stabilize globally by April. In early February, S&P Global stated that in the “worst-case scenario,” the virus would be contained by late May. A month later, that prediction already looked wildly optimistic.
Experts are saying now that cases may peak in May or June, which means everyone should be hunkering down for eight or more weeks of social distancing and isolation. A COVID-19 vaccine just started human trials, but testing in large enough sample sizes to identify side effects and then ramping up large-scale production still might not be fully available for more than a year.
In other words, dealing with this virus is not a sprint, it’s a marathon. A marathon no one signed up for.
Someone who knows a lot about this topic is Jason Fitzgerald. A 2:39 marathoner, Fitzgerald now helps people run faster and healthier as an author and coach.
When we spoke over the phone, he pointed out that running, unlike say basketball or gymnastics, is a sport where “you have to voluntarily want to experience more and more discomfort.”
Fitzgerald calls this ability to endure “mental toughness,” and it’s a skill we all can build. For runners, it requires doing workouts that scare them, putting in mileage that’s higher than they have in the past and racing regularly. It’s also about accepting and even embracing the pain of running hard.
The same is true for adaptation. We can train ourselves to respond better to change (we’re all getting lots of practice right now!), but developing new habits and working in new ways is always uncomfortable. As decorated cyclist Greg LeMond once said, “it doesn’t get easier, you just get faster.”
We also have to recognize that we won’t get it right every time. “The more that we get comfortable with poor performances, the more we can learn from them,” Fitzgerald said, noting that he’s had his share of bad races, including failing to finish an ultramarathon in 2015. “Sometimes you dwell on a bad race for a couple days, but then you have to just forget about it and move on with your training.”
Many of us are reeling from more cancellations, suspensions and complete one-eighties in the last month than in the last five years. But we can’t let ourselves stay bogged down by our feelings of frustration or disappointment. We accept our new reality, learn what we can from it, and keep going.
It’s clear that the people who can let go of their past plans and embrace the new environment ahead will thrive. Already we’re seeing companies pivot from live events to online webinars, and remote-first workplaces becoming the new normal. Shares of Zoom have risen even as the stock market has taken a beating and I’m sure other winners will emerge in the coming weeks and months.
But adaptability doesn’t just matter for individuals or even companies, it matters for governments. For China, Taiwan and Hong Kong, thanks to aggressive testing and quarantining efforts, life is returning, somewhat, to normal. New cases are on the decline and there’s hope of life returning to normalcy in the near future. Countries that bungled their response to the disease progression, including Italy, Spain, the U.K. and the United States, are now facing increasingly dire consequences.
Whether you want to survive a global pandemic, reach the next phase in your career or be selected on a mission to Mars, it’s hard to overstate the importance of adaptability in getting there.
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People seem to love the concept of the battle pass.
Largely popularized by Fortnite, battle passes reward players for playing well, and playing often. The better you do, the more XP you earn; the more XP you earn, the more stuff (new looks for your character, or victory dances to fire off at the end of a gunfight) you unlock. Willing to cough up a few bucks for an optional “premium” battle pass? That’ll open up a whole new set of rewards. The model has made its way into countless games over the last couple of years, from PUBG to Rocket League.
Zelos, an LA-based company out of Y Combinator’s Winter 2020 batch, is aiming to make that same concept work across multiple games. Tackle challenges in one game, earn rewards for another — or use your points to buy new games altogether.
Each day, Zelos offers up a handful of challenges across each of the games it supports, like dealing 10,000 damage in League of Legends or getting five kills with Wraith in Apex. Completing a challenge earns you “zips”; most challenges I’ve seen will earn the player somewhere between 15 and 150 zips, depending on how tough it is to pull off.
Once you’ve pooled up a pile of zips, they can be redeemed for all sorts of virtual goodies. The more something would cost otherwise, the more zips it’ll require. For example, 60,000 zips gets you a $5 Steam gift card — or 90,000 zips for $10 worth of Apex Coins. Once you get into the 50,000-200,000 zip range, you can redeem them for digital download codes for games like Rainbow Six Siege, Monster Hunter: World and Tabletop Simulator. Getting the good stuff can mean completing a lot of challenges, but remember: these are games people are playing anyway.
In addition to zips, each challenge earns the player a bit of EXP. EXP levels up your Zelos profile; with each level, you unlock a bundle of zips, additional challenges and items for your Zelos avatar.
Zelos is currently issuing challenges and tracking stats across seven games: Fortnite, Apex, League of Legends, Teamfight Tactics, DOTA 2, Counter Strike: GO and Clash Royale. Stat tracking works a bit better in some games than it does in others, depending on how open a game’s developers are with the data. With League of Legends, for example, they’re able to ping Riot Games’ dedicated API for a rich backlog of match data; with Apex, on the other hand, they’re limited to pulling stats based on a handful of unlockable trackers players can flip on between matches.
Zelos co-founder Jeffrey Tong tells me they’re focused on ensuring they stay above board with the data they pull, making sure they comply with each provider’s ToS. That makes sense, of course: Getting on a developer’s bad side could mean losing access to the data firehouse, in turn squashing Zelos’ ability to support a game. The more popular games Zelos can support, the better the whole idea works.
So if they’re giving stuff away based on challenges in games they themselves aren’t selling… how will they make money? The same way the aforementioned games do: a premium battle pass. Tong tells me that they’re currently testing a subscription-based battle pass that’ll unlock new challenges, award more prizes and increase the rate at which points are earned.
This isn’t Tong’s first foray into the gaming space; he previously built and sold OverStats, an analytics system for tracking a player’s esports stats over time. Co-founder Derek Chiang, meanwhile, was previously a senior software engineer at the decentralized computing company Dfinity.
Tong tells me they raised $2.8 million in the days after YC demo day, eyeing expansion of the platform, supported games and their team. The Zelos team is currently three people, with plans to hire another “six or seven” in the coming weeks. They’re currently seeing more than 50,000 weekly active users, with 55% of their users playing two or more games on the platform.
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