

Venture investors are pouring billions of dollars into feeding their hunger for food and agriculture startups. Whether that trend line is due to enthusiasm for the sector or just broader heavy investing in the VC space is much less clear.
According to a recent report published by AgFunder – a VC and investing marketplace focused on the agriculture and food sectors – the “AgriFood” space is booming. Using data from Crunchbase and several other data partners, the organization published its “2018 AgriFood Tech Investing Report” this morning, finding that investment in AgriFood companies increased 43% year-over-year, reaching $16.9 billion in 2018.
AgFunder classifies AgriFood tech as “the small but growing segment of the startup and venture capital universe that’s aiming to improve or disrupt the global food and agriculture industry.” Their definition is intentionally broad, encompassing everything from crop and livestock biotech, property management systems, and payments, to biomaterials and meat alternatives, all the way up to tech platforms for restaurants, grocers, deliveries and at-home cooks.
While some of the AgriFood tech categories – such as delivery or restaurant software – have long been popular destinations for venture capital, we’re now seeing a more diverse array of startups innovating across the entire food supply chain. According to the report, expansion in AgriFood is fairly consistent across upstream (agricultural and farming) subsectors to downstream (more consumer-facing) subsectors, with each group growing roughly 44% and 42% year-over-year respectively.
The data also shows growth occurring across almost all deal stages. AgriFood saw huge increases in the average deal size and total investment for late-stage companies in particular, as venture-backed startups have grown to global scale. And penetrating and attracting capital from international markets seems more feasible than ever. AgriFood investing, which traditionally has been largely US-centric, is rapidly becoming a global phenomenon, with more than half of total funding – and some of the largest rounds – now coming from companies and investors outside the US.
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When we first wrote about Hooch, it offered a fun, straightforward deal — for $9.99 per month, you could claim one free drink per day from participating bars and restaurants.
Since then, the company launched Hooch Black, a pricier subscription that includes perks like hotel discounts and concierge service. But even then, co-founder and CEO Lin Dai was hinting at plans to use blockchain technology to create what he called “a decentralized model for consumer rewards.”
Now Hooch is delivering on what Dai promised, with a relaunched app that rewards users for their purchases.
“We were super excited about the feedback and response [to Hooch Black] that we saw from our members,” Dai said. “What we decided to do is just completely update the app with rewards for consumers across four different categories — travel, dining, entertainment and e-commerce.”
He noted that while most loyalty programs reward you for using a specific card or for shopping with a specific company, Hooch has partnered with more than 250,000 merchants (including Marriott hotels, TAO restaurants, Starbucks, Uber and Amazon). The company can actually scan the purchases made on any linked debit or credit card, and you’ll be rewarded whenever you spend money with those partners.
The rewards take the form of what Hooch is calling TAP rewards dollars — the exact reward will vary depending on the merchant, but the company says it could be as high as 10 percent of your spending.
Lin Dai, CEO of Hooch
Dai said TAP dollars are actually a stablecoin pegged to the U.S. dollar, but he emphasized that you don’t need to understand the backend to use the rewards. For most users, TAP dollars will simply be a digital currency they can redeem for hotel bookings, restaurants credits and gift cards.
“Security is our top concern,” Dai added. The idea is to access your transaction history to verify your purchases (Hooch makes money by driving purchases for merchants), but without storing or sharing identifying information. “When we capture the consumer purchase information, we actually don’t capture any of their names or credit card numbers … We don’t store any identity.”
The program also comes with a big perk for enlisting your friends. There is an upfront reward of five TAP dollars, but the real selling point is the fact that you’ll get 20 percent of their rewards — not just on their initial purchases, but for the entire time they use the app.
If you like the Hooch Black plan, you’ll still be able to sign up and pay for it. But the company’s emphasis has shifted to the broader rewards program, which you can join for free.
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The 2019 edition of a popular annual survey shows usage of social media by Americans is stalling while ownership of smart speakers and tablets has soared over the last year, as has consumer engagement with podcasts. The results are promising for Amazon and Spotify in particular.
Earlier today, Edison Research and Triton Digital presented their Infinite Dial report with findings from a phone survey of 1,500 Americans (age 12+) during January and February. Since 1998, the report has tracked the adoption of mobile devices, social media services, and online audio.
Here are my key takeaways from it:
1. Social Media: Consistent with the trend from last year, the market for social media users appears to be saturated. The percent of Americans who say they have ever used social media is 79%, up from 78% last year but down from the 80% peak in 2017.
Among Facebook, Instagram, Pinterest, Snapchat, LinkedIn, and Twitter, only Instagram saw an increase in the percent of the population who say they use it (39% compared to 36% in 2018). Facebook lost roughly 15 million users since 2017 based on this survey data. While the majority of people age 55+ now say they use Facebook, that doesn’t make up for the drop in usage among those age 12-34 from 79% in 2017 to 67% in 2018 to 62% now.
Pinterest, which recently filed to go public, also appears to be losing popularity among that key demographic. Now only 31% of Americans in the 12-34 age group say they use the social pinning platform, compared to 36% last year, and only 1% say Pinterest is their most used social app (compared to 3% in 2015). In this context, potential competition from Instagram looks especially threatening.
2. Smart Speakers: 23% of Americans now own a smart speaker, with 16% of them owning an Amazon Alexa device (that’s more than twice the percent who own a Google Home device). Just two years ago, only 7% reported owning a smart speaker. The percent of those owners who have 3 or more devices has more than doubled from 11% last year to 26% this year as well. Many consumers are crossing a threshold from testing these speakers to making them a ubiquitous presence throughout their home.
3. Tablets: While ownership of smartphones is flat, there was a 12% year-over-year increase in the population of tablet owners from 50% of the population to 56%. According to Triton president John Rosso’s commentary, Amazon’s Fire tablet led the pack with 23% year-over-year growth.
4. Online Audio: 24% of respondents said they used Spotify and 12% said they used Amazon Music in the last month. That compares to 20% and 9%, respectively, last year and places Amazon Music on equal footing with Apple Music.
5. Podcasts: 32% of Americans are monthly podcast listeners compared to 26% in 2018, representing the largest year-over-year growth in that statistic since Infinite Dial began. The format saw a 33% surge in popularity among young people (age 12-24) from 30% listening monthly to 40% doing so.
A full 22% of Americans are weekly podcast listeners and those people consume an average of seven episodes per week. Also, in a notable symbolic shift, the majority (51%) of Americans now say they have listened to a podcast at least once.
Amazon’s gains: The explosion in smart speaker ownership is disproportionately benefiting Amazon with its Alexa devices and the same scenario is occurring in tablets with the Amazon Fire. The company is the most immediate winner in the growth of these markets.
Moreover, people who own a smart speaker are dramatically more likely to use Amazon Music as their primary music streaming service (16% vs. 9% for the general population of people who have used online audio).
This could be a mere correlation that Amazon Music has an older demographic (according to this data, it does) and smart speakers are bought by an older demographic; on the other hand, it may suggest causation that people who buy smart speakers often adopt the default Amazon Music streaming service. If the latter is true to a substantial degree, it suggests Amazon Music’s momentum against Apple Music (and other streaming services) is likely to only pick up.
Spotify’s podcast push is working: Spotify is making a big play into podcasting. Its market share is growing substantially, it surpassed Apple’s podcast app in popularity in several countries, and just announced a major commitment to the format that included acquiring Anchor and Gimlet.
According to the Infinite Dial survey, the percent of Spotify users aged 12-24 who listen to podcasts monthly jumped from 32% last year to 54% this year. That’s 69% year-over-year growth. This shows Spotify’s users are buying into its new promotion of podcast content. It also lends credibility to the argument that Spotify is expanding the market of podcast listeners, not just poaching users from other podcast apps.
As I argued in my analysis about the entry of music streaming services and Hollywood into podcasting, Spotify has the ability to rapidly ingrain podcast listening among its 207 million monthly active users and to make premium (subscriber-only) podcasts mainstream by bundling them into a music subscription that 96 million people already pay for.
You can review the the full Infinite Dial deck here.
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Three miles from Seattle’s South Lake Union neighborhood — better known as Amazonia to locals — sits Pioneer Square. The original heart of the city, the area has managed to hold on to its decades-old charm as other parts of town are besieged by Amazon-contracted architects.
On a mission to champion Seattle’s unique entrepreneurial DNA, startup studio Pioneer Square Labs has not only adopted the neighborhood’s moniker but established its fast-growing HQ at its center.
Pioneer Square Labs, or PSL, cropped up in 2015 to create, launch and fund technology companies headquartered in the Pacific Northwest. Operating under the startup studio model, PSL’s team of former founders and venture capitalists, including Rover and Mighty AI founder Greg Gottesman, collaborate to craft and incubate startup ideas, then recruit a founding CEO from their network of entrepreneurs to lead the business. The team uses an innovative method of rapidly ideating, testing and, if necessary, scrapping ideas, dubbed its “validation engine.”
The model differs from an accelerator or incubator. Y Combinator, for example, admits existing business into its months-long program, deploying its expertise and capital to bolster early-stage startups. PSL, on the other hand, creates startups and provides would-be founders with a derisked platform for company building.
“It’s a dream job,” PSL co-founder Greg Gottesman told TechCrunch. “If someone would say to you ‘hey, you can come into work every day, think about all the problems that are interesting to solve, all the tech that’s available and you have the resources to build companies,’ that’s just a dream come true … It’s just been a very fun ride.”
Xiao Wang, the CEO of Pioneer Square Labs spin-out Boundless, pitching at TechCrunch Disrupt SF 2017
The startup studio model is working for PSL. To date, it has raised $27.5 million in equity funding to build out its platform, in addition to an $80 million fundraise for its debut venture fund, which invests in PSL companies and other Pacific Northwest businesses. Of the 13 companies to emerge from PSL in the last three years, all have raised follow-on rounds from venture capital firms at an aggregate valuation of $200 million. According to PitchBook, PSL companies comprised 14.3 percent of all early-stage VC deals in Washington state in 2018.
Among PSL’s portfolio companies are cloud security compliance platform Shujinko, which closed a $2.8 million seed round from Unusual Ventures, Defy Ventures, Vulcan Capital and more last year. Plus, Boundless, a platform that facilitates the process of applying for immigrant status in the U.S., and Tally, a sports-prediction app spearheaded by football star Russell Wilson. Other recent spin-outs include Remarkably, a marketing and analytics software provider, and Attunely, a debt-collection-tech platform.
Pioneer Square Labs’ growing team of former operators, VCs, data scientists, engineers and more
Greg Gottesman, a former managing director at Seattle VC fund Madrona Venture Group, and the founder of its startup studio Madrona Venture Labs, leads PSL alongside a team of seasoned Pacific Northwest investors and entrepreneurs.
Rounding out PSL’s team of managing directors is Julie Sandler, a former investor at Madrona; Geoff Entress, a former venture partner with Voyager Capital and Madrona; Mike Galgon, the founder of the Microsoft-acquired digital agency aQuantive; and T.A. McCann, a serial entrepreneur behind Google-acquired Senosis and BlackBerry-acquired Gist. Ben Gilbert, who runs product at PSL, is another Madrona alum.
After nearly two decades investing in early-stage startups at Madrona, Gottesman made a peaceful exit with ambitions to launch a scalable startup studio independent of any existing VC firm. Madrona, alongside an additional 13 venture firms and Seattle angel investors, like Jeff Bezos and Zillow -founder Rich Barton, bolstered PSL with seed capital right off the bat.
Pioneer Square Labs’ network of entrepreneurs
To differentiate itself from competing company builders and maintain a high level of efficiency, PSL uses a proprietary strategy of rapidly testing and validating business ideas dubbed its “validation engine.” Its special sauce, PSL leverages digital marketing to validate customer demand before they begin real work on any of their ideas.
Long-time marketer Peter Denton leads the effort. Denton, who joined PSL in early 2017, manages day-to-day market validation, growth strategies and market research for the firm’s portfolio companies.
“We joke in some ways [Denton] is the grim reaper,” PSL’s Ben Gilbert told TechCrunch. “He’s responsible for much more kills than anyone else.”
Among the validation engine’s strategies is to build a website for a “company” to test demand for a potential product. Denton and his team market the website to target customer segments through a variety of digital channels, then measure customer resonance with the messaging. They ask potential customers if they are interested in learning more about a new concept or product when it “becomes available” to help understand how much interest a potential business might have before PSL allocates additional time and resources to a project.
To date, PSL has killed more than 100 ideas.
“A lot of studios ultimately won’t be successful because they don’t kill things fast enough,” Gottesman explained. “We kill nine out of 10 of the companies we start. Most of our ideas don’t make it to the promised land.”
In a sense, they are catfishing potential customers, luring them in with a new idea that more than likely will never come to fruition. But the strategy saves PSL the heartache that comes with investing a lot of time into a business idea that never finds its market.
A glimpse of Seattle’s Pioneer Square neighborhood where Pioneer Square Labs is headquartered
In three years, PSL has spun-out 13 companies, ideas for six of which came from the PSL team and seven originated from founders in the PSL network. All of those companies have secured venture funding — $71 million in total for an aggregate valuation of $200 million.
“The most important lesson we learned is it’s all about the people and the talent,” Gottesman said. “If we have an A-plus idea and partner with a B team, the company isn’t going to be successful. On the other hand, if we partner with the best talent, we are likely to be successful even if we fail on other dimensions.”
PSL’s goal is to invigorate the Seattle tech ecosystem and given the aforementioned stats (PSL companies comprised 14.3 percent of all early-stage VC deals in Washington state in 2018) they are well on their way. In 2019, PSL hopes to spin out between six and nine additional businesses.
“We believe we are building the center for early-stage tech innovation in the Pacific Northwest,” PSL’s Julie Sandler told TechCrunch.
Seattle, home to two of the most valuable businesses in the world, has not created as many founders as anticipated. Amazon’s entrepreneurial culture has succeeded in keeping top talent from pursuing their own businesses. PSL’s derisked platform, the firm hopes, will entice those founders, like Boundless CEO Xiao Wang, a former senior product manager at Amazon.
“The studio model lends itself really well to people who are 99 percent there, thinking ‘damn, I want to start a company,’” Gilbert said. “These are people that are incredible entrepreneurs but if not for the studio as a catalyst, they may not have [left].”
Venture capital investment in Washington state is increasing year-over-year, reaching a high of nearly $3 billion in 2018 across roughly 400 deals, per PitchBook. The Seattle tech scene, given its proximity to tech heavyweights and a growing number of satellite engineering offices, only has room to grow.
“We do think Seattle is the most exciting market in the country because of the amount of technical talent you have,” Gottesman said. “You have to believe that if engineering is at the heart of these startups then Seattle will ultimately be a key city in the world in terms of creating great technology startups.”
“We think part of the issue is a lack of capital and a lack of help,” Gottesman added. “If we can provide a little bit of both of those things, we can really put Seattle where it deserves to be, should be and will be.”
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A court in Paris has dismissed a case against Airbnb, as Le Monde reported. Last month, the City of Paris sued Airbnb for 1,010 illegal listings. According to the mayor’s office, Airbnb failed to comply with regulation in Paris.
Paris has been trying to limit the effect of Airbnb on the housing market in Paris. Paris is one of the top cities for Airbnb in the world. A few years ago, many people stopped renting their apartments the traditional way in favor of Airbnb. The average rental price in some areas of Paris has increased as a result.
Mayor of Paris Anne Hidalgo didn’t want to ban Airbnb altogether. Instead, the city asked hosts to get an ID number so the city can track how many nights someone is listing their apartment on Airbnb. You can’t rent an apartment more than 120 days a year.
But many listings still don’t have that ID number. The mayor’s office flagged around 1,000 apartments, saying that Airbnb was also responsible by dragging their feet.
But the court has said that screenshots are not enough to prove that these apartments without an ID number are permanently available on Airbnb. Maybe some of these apartments are available for less than 120 days a year, after all.
The case is not over, as this is just a summary judgement. But it sounds like the case is not strong enough to condemn Airbnb.
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On feed-based “broader social networks, where people can accumulate friends or followers until the services feel more public . . . it feels more like a town square than a more intimate space like a living room” Facebook CEO Mark Zuckerberg explained in a blog post today. With messaging, groups, and ephemeral stories as the fastest growing social features, Zuckerberg laid out why he’s rethinking Facebook as a private living room where people can be comfortable being themselves without fear of hackers, government spying, and embarrassment from old content — all without encryption allowing bad actors to hide their crimes.
Perhaps this will just be more lip service in a time of PR crisis for Facebook. But with the business imperative fueled by social networking’s shift away from permanent feed broadcasting, Facebook can espouse the philosophy of privacy while in reality servicing its shareholders and bottom line. It’s this alignment that actually spurs product change. We saw Facebook’s agility with last year’s realization that a misinformation- and hate-plagued platform wouldn’t survive long-term so it had to triple its security and moderation staff. And in 2017, recognizing the threat of Stories, it implemented them across its apps. Now Facebook might finally see the dollar signs within privacy.
The New York Times’ Mike Isaac recently reported that Facebook planned to unify its Facebook, WhatsApp, and Instagram messaging infrastructure to allow cross-app messaging and end-to-end encryption. And Zuckerberg discussed this and the value of ephemerality on the recent earnings call. But now Zuckerberg has roadmapped a clearer slate of changes and policies to turn Facebook into a living room:
-Facebook will let users opt in to the ability to send or receive messages across Facebook, WhatsApp, and Instagram
-Facebook wants to expand that interoperability to SMS on Android
-Zuckerberg wants to make ephemerality automatic on messaging threads, so chats disappear by default after a month or year, with users able to control that or put timers on individual messages.
-Facebook plans to limit how long it retains metadata on messages once it’s no longer needed for spam or safety protections
-Facebook will extend end-to-end encryption across its messaging apps but use metadata and other non-content signals to weed out criminals using privacy to hide their misdeeds.
-Facebook won’t store data in countries with a bad track record of privacy abuse such as Russia, even if that means having to shut down or postpone operations in a country
You can read the full blog post from Zuckerberg below:
Posted by Mark Zuckerberg on Wednesday, March 6, 2019
A Privacy-Focused Vision for Social Networking
My focus for the last couple of years has been understanding and addressing the biggest challenges facing Facebook. This means taking positions on important issues concerning the future of the internet. In this note, I’ll outline our vision and principles around building a privacy-focused messaging and social networking platform. There’s a lot to do here, and we’re committed to working openly and consulting with experts across society as we develop this.
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Over the last 15 years, Facebook and Instagram have helped people connect with friends, communities, and interests in the digital equivalent of a town square. But people increasingly also want to connect privately in the digital equivalent of the living room. As I think about the future of the internet, I believe a privacy-focused communications platform will become even more important than today’s open platforms. Privacy gives people the freedom to be themselves and connect more naturally, which is why we build social networks.
Today we already see that private messaging, ephemeral stories, and small groups are by far the fastest growing areas of online communication. There are a number of reasons for this. Many people prefer the intimacy of communicating one-on-one or with just a few friends. People are more cautious of having a permanent record of what they’ve shared. And we all expect to be able to do things like payments privately and securely.
Public social networks will continue to be very important in people’s lives — for connecting with everyone you know, discovering new people, ideas and content, and giving people a voice more broadly. People find these valuable every day, and there are still a lot of useful services to build on top of them. But now, with all the ways people also want to interact privately, there’s also an opportunity to build a simpler platform that’s focused on privacy first.
I understand that many people don’t think Facebook can or would even want to build this kind of privacy-focused platform — because frankly we don’t currently have a strong reputation for building privacy protective services, and we’ve historically focused on tools for more open sharing. But we’ve repeatedly shown that we can evolve to build the services that people really want, including in private messaging and stories.
I believe the future of communication will increasingly shift to private, encrypted services where people can be confident what they say to each other stays secure and their messages and content won’t stick around forever. This is the future I hope we will help bring about.
We plan to build this the way we’ve developed WhatsApp: focus on the most fundamental and private use case — messaging — make it as secure as possible, and then build more ways for people to interact on top of that, including calls, video chats, groups, stories, businesses, payments, commerce, and ultimately a platform for many other kinds of private services.
This privacy-focused platform will be built around several principles:
Private interactions. People should have simple, intimate places where they have clear control over who can communicate with them and confidence that no one else can access what they share.
Encryption. People’s private communications should be secure. End-to-end encryption prevents anyone — including us — from seeing what people share on our services.
Permanence. People should be comfortable being themselves, and should not have to worry about what they share coming back to hurt them later. So we won’t keep messages or stories around for longer than necessary to deliver the service or longer than people want it.
Safety. People should expect that we will do everything we can to keep them safe on our services within the limits of what’s possible in an encrypted service.
Interoperability. People should be able to use any of our apps to reach their friends, and they should be able to communicate across networks easily and securely.
Secure data storage. People should expect that we won’t store sensitive data in countries with weak records on human rights like privacy and freedom of expression in order to protect data from being improperly accessed.
Over the next few years, we plan to rebuild more of our services around these ideas. The decisions we’ll face along the way will mean taking positions on important issues concerning the future of the internet. We understand there are a lot of tradeoffs to get right, and we’re committed to consulting with experts and discussing the best way forward. This will take some time, but we’re not going to develop this major change in our direction behind closed doors. We’re going to do this as openly and collaboratively as we can because many of these issues affect different parts of society.
Private Interactions as a Foundation
For a service to feel private, there must never be any doubt about who you are communicating with. We’ve worked hard to build privacy into all our products, including those for public sharing. But one great property of messaging services is that even as your contacts list grows, your individual threads and groups remain private. As your friends evolve over time, messaging services evolve gracefully and remain intimate.
This is different from broader social networks, where people can accumulate friends or followers until the services feel more public. This is well-suited to many important uses — telling all your friends about something, using your voice on important topics, finding communities of people with similar interests, following creators and media, buying and selling things, organizing fundraisers, growing businesses, or many other things that benefit from having everyone you know in one place. Still, when you see all these experiences together, it feels more like a town square than a more intimate space like a living room.
There is an opportunity to build a platform that focuses on all of the ways people want to interact privately. This sense of privacy and intimacy is not just about technical features — it is designed deeply into the feel of the service overall. In WhatsApp, for example, our team is obsessed with creating an intimate environment in every aspect of the product. Even where we’ve built features that allow for broader sharing, it’s still a less public experience. When the team built groups, they put in a size limit to make sure every interaction felt private. When we shipped stories on WhatsApp, we limited public content because we worried it might erode the feeling of privacy to see lots of public content — even if it didn’t actually change who you’re sharing with.
In a few years, I expect future versions of Messenger and WhatsApp to become the main ways people communicate on the Facebook network. We’re focused on making both of these apps faster, simpler, more private and more secure, including with end-to-end encryption. We then plan to add more ways to interact privately with your friends, groups, and businesses. If this evolution is successful, interacting with your friends and family across the Facebook network will become a fundamentally more private experience.
Encryption and Safety
People expect their private communications to be secure and to only be seen by the people they’ve sent them to — not hackers, criminals, over-reaching governments, or even the people operating the services they’re using.
There is a growing awareness that the more entities that have access to your data, the more vulnerabilities there are for someone to misuse it or for a cyber attack to expose it. There is also a growing concern among some that technology may be centralizing power in the hands of governments and companies like ours. And some people worry that our services could access their messages and use them for advertising or in other ways they don’t expect.
End-to-end encryption is an important tool in developing a privacy-focused social network. Encryption is decentralizing — it limits services like ours from seeing the content flowing through them and makes it much harder for anyone else to access your information. This is why encryption is an increasingly important part of our online lives, from banking to healthcare services. It’s also why we built end-to-end encryption into WhatsApp after we acquired it.
In the last year, I’ve spoken with dissidents who’ve told me encryption is the reason they are free, or even alive. Governments often make unlawful demands for data, and while we push back and fight these requests in court, there’s always a risk we’ll lose a case — and if the information isn’t encrypted we’d either have to turn over the data or risk our employees being arrested if we failed to comply. This may seem extreme, but we’ve had a case where one of our employees was actually jailed for not providing access to someone’s private information even though we couldn’t access it since it was encrypted.
At the same time, there are real safety concerns to address before we can implement end-to-end encryption across all of our messaging services. Encryption is a powerful tool for privacy, but that includes the privacy of people doing bad things. When billions of people use a service to connect, some of them are going to misuse it for truly terrible things like child exploitation, terrorism, and extortion. We have a responsibility to work with law enforcement and to help prevent these wherever we can. We are working to improve our ability to identify and stop bad actors across our apps by detecting patterns of activity or through other means, even when we can’t see the content of the messages, and we will continue to invest in this work. But we face an inherent tradeoff because we will never find all of the potential harm we do today when our security systems can see the messages themselves.
Finding the right ways to protect both privacy and safety is something societies have historically grappled with. There are still many open questions here and we’ll consult with safety experts, law enforcement and governments on the best ways to implement safety measures. We’ll also need to work together with other platforms to make sure that as an industry we get this right. The more we can create a common approach, the better.
On balance, I believe working towards implementing end-to-end encryption for all private communications is the right thing to do. Messages and calls are some of the most sensitive private conversations people have, and in a world of increasing cyber security threats and heavy-handed government intervention in many countries, people want us to take the extra step to secure their most private data. That seems right to me, as long as we take the time to build the appropriate safety systems that stop bad actors as much as we possibly can within the limits of an encrypted service. We’ve started working on these safety systems building on the work we’ve done in WhatsApp, and we’ll discuss them with experts through 2019 and beyond before fully implementing end-to-end encryption. As we learn more from those experts, we’ll finalize how to roll out these systems.
Reducing Permanence
We increasingly believe it’s important to keep information around for shorter periods of time. People want to know that what they share won’t come back to hurt them later, and reducing the length of time their information is stored and accessible will help.
One challenge in building social tools is the “permanence problem”. As we build up large collections of messages and photos over time, they can become a liability as well as an asset. For example, many people who have been on Facebook for a long time have photos from when they were younger that could be embarrassing. But people also really love keeping a record of their lives. And if all posts on Facebook and Instagram disappeared, people would lose access to a lot of valuable knowledge and experiences others have shared.
I believe there’s an opportunity to set a new standard for private communication platforms — where content automatically expires or is archived over time. Stories already expire after 24 hours unless you archive them, and that gives people the comfort to share more naturally. This philosophy could be extended to all private content.
For example, messages could be deleted after a month or a year by default. This would reduce the risk of your messages resurfacing and embarrassing you later. Of course you’d have the ability to change the timeframe or turn off auto-deletion for your threads if you wanted. And we could also provide an option for you to set individual messages to expire after a few seconds or minutes if you wanted.
It also makes sense to limit the amount of time we store messaging metadata. We use this data to run our spam and safety systems, but we don’t always need to keep it around for a long time. An important part of the solution is to collect less personal data in the first place, which is the way WhatsApp was built from the outset.
Interoperability
People want to be able to choose which service they use to communicate with people. However, today if you want to message people on Facebook you have to use Messenger, on Instagram you have to use Direct, and on WhatsApp you have to use WhatsApp. We want to give people a choice so they can reach their friends across these networks from whichever app they prefer.
We plan to start by making it possible for you to send messages to your contacts using any of our services, and then to extend that interoperability to SMS too. Of course, this would be opt-in and you will be able to keep your accounts separate if you’d like.
There are privacy and security advantages to interoperability. For example, many people use Messenger on Android to send and receive SMS texts. Those texts can’t be end-to-end encrypted because the SMS protocol is not encrypted. With the ability to message across our services, however, you’d be able to send an encrypted message to someone’s phone number in WhatsApp from Messenger.
This could also improve convenience in many experiences where people use Facebook or Instagram as their social network and WhatsApp as their preferred messaging service. For example, lots of people selling items on Marketplace list their phone number so people can message them about buying it. That’s not ideal, because you’re giving strangers your phone number. With interoperability, you’d be able to use WhatsApp to receive messages sent to your Facebook account without sharing your phone number — and the buyer wouldn’t have to worry about whether you prefer to be messaged on one network or the other.
You can imagine many simple experiences — a person discovers a business on Instagram and easily transitions to their preferred messaging app for secure payments and customer support; another person wants to catch up with a friend and can send them a message that goes to their preferred app without having to think about where that person prefers to be reached; or you simply post a story from your day across both Facebook and Instagram and can get all the replies from your friends in one place.
You can already send and receive SMS texts through Messenger on Android today, and we’d like to extend this further in the future, perhaps including the new telecom RCS standard. However, there are several issues we’ll need to work through before this will be possible. First, Apple doesn’t allow apps to interoperate with SMS on their devices, so we’d only be able to do this on Android. Second, we’d need to make sure interoperability doesn’t compromise the expectation of encryption that people already have using WhatsApp. Finally, it would create safety and spam vulnerabilities in an encrypted system to let people send messages from unknown apps where our safety and security systems couldn’t see the patterns of activity.
These are significant challenges and there are many questions here that require further consultation and discussion. But if we can implement this, we can give people more choice to use their preferred service to securely reach the people they want.
Secure Data Storage
People want to know their data is stored securely in places they trust. Looking at the future of the internet and privacy, I believe one of the most important decisions we’ll make is where we’ll build data centers and store people’s sensitive data.
There’s an important difference between providing a service in a country and storing people’s data there. As we build our infrastructure around the world, we’ve chosen not to build data centers in countries that have a track record of violating human rights like privacy or freedom of expression. If we build data centers and store sensitive data in these countries, rather than just caching non-sensitive data, it could make it easier for those governments to take people’s information.
Upholding this principle may mean that our services will get blocked in some countries, or that we won’t be able to enter others anytime soon. That’s a tradeoff we’re willing to make. We do not believe storing people’s data in some countries is a secure enough foundation to build such important internet infrastructure on.
Of course, the best way to protect the most sensitive data is not to store it at all, which is why WhatsApp doesn’t store any encryption keys and we plan to do the same with our other services going forward.
But storing data in more countries also establishes a precedent that emboldens other governments to seek greater access to their citizen’s data and therefore weakens privacy and security protections for people around the world. I think it’s important for the future of the internet and privacy that our industry continues to hold firm against storing people’s data in places where it won’t be secure.
Next Steps
Over the next year and beyond, there are a lot more details and trade-offs to work through related to each of these principles. A lot of this work is in the early stages, and we are committed to consulting with experts, advocates, industry partners, and governments — including law enforcement and regulators — around the world to get these decisions right.
At the same time, working through these principles is only the first step in building out a privacy-focused social platform. Beyond that, significant thought needs to go into all of the services we build on top of that foundation — from how people do payments and financial transactions, to the role of businesses and advertising, to how we can offer a platform for other private services.
But these initial questions are critical to get right. If we do this well, we can create platforms for private sharing that could be even more important to people than the platforms we’ve already built to help people share and connect more openly.
Doing this means taking positions on some of the most important issues facing the future of the internet. As a society, we have an opportunity to set out where we stand, to decide how we value private communications, and who gets to decide how long and where data should be stored.
I believe we should be working towards a world where people can speak privately and live freely knowing that their information will only be seen by who they want to see it and won’t all stick around forever. If we can help move the world in this direction, I will be proud of the difference we’ve made.
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Farming incubator Square Roots is announcing a new partnership today with food distribution giant Gordon Food Service.
Square Roots has built urban farming facilities in refurbished, climate-controlled shipping containers, which it uses to grow food and train farmers in a year-long program.
Until now, it has operated out of a single location in Brooklyn, which meant you could only purchase Square Roots from select locations in New York City, and it was only working with 10 farmers in each cohort. CEO Tobias Peggs (who founded Square Roots with Kimbal Musk) said this partnership changes all that.
The idea is to open Square Roots locations in or near Gordon Food Service’s distribution centers and retail stores across North America, and then to sell the resulting produce through the food distributor’s channels.
The companies aren’t revealing how many locations they’re planning to launch, or when they’ll open, but Peggs described it as “a long-term partnership,” adding, “There is a lot of potential with this partnership. They’re coast-to-coast in Canada, with big swaths in the United States.”
Peggs suggested that by working together, Square Roots and Gordon are answering a growing demand for locally grown food “at scale, across big swaths of the country.”
Gordon Food Services CEO Rich Wolowski made a similar point in the announcement, saying, “Customers want an assortment of fresh, locally grown food all year round. We are on a path to do that at scale with Square Roots and are excited to be the first in the industry to offer this unique solution to our customers.”
Why work with Square Roots? Peggs said the company’s approach requires less water and space than outdoor farms, while also requiring less investment than other indoor farming technologies, thanks to its “modular approach.”
“Certainly, it’s less of a dollar number to add a farm in a shipping container than it is to build a big plant factory,” he said. “What we’re able to do is very cost effectively, just-in-time deploy that capital expense.”
While this deal will allow Square Roots to expand, Peggs said the company will continue to operate its own facilities and handle its own sales in Brooklyn, and the company could still take a similar approach “in other markets where it just makes sense to go direct.”
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Tia, the company that launched with an app providing health advice and period tracking for women, has launched its first clinic.
From its first location in New York, the two founders of Tia hope they can build a network of care facilities that integrate all of the information their app collects with the benefits of having in-person consultations with physicians that have a holistic view of their patients’ health.
For founders Carolyn Witte and Felicity Yost, the hurdles women need to overcome to receive adequate treatment aren’t theoretical — they’ve faced them directly.
Witte and Yost met a decade ago in college and remained friends ever since. It was when Witte had to diagnose herself with polycystic ovarian syndrome (PCOS), a condition that affects nearly one in 10 women, that she first realized how broken the healthcare system was for more than half of the U.S. population.
“It’s one of those classic issues in healthcare that’s really difficult to diagnose… I spent three years seeing gynecologists, who were treating the symptom and failing to connect the dots,” Witte recalls. “I found myself at age 25 at a fertility specialist in NYC after I diagnosed myself on the internet… and got this really unfortunate diagnosis.”
As someone who worked at Google and had access to what was supposed to be the best healthcare services in the world, Witte realized there were significant gaps between the understanding of healthcare for men and women. “Here I am feeling completely alone and confused… that was the moment for me when I said there has to be a better way.”
Witte moved back to San Francisco and moved in with Yost and began working on what would become the Tia app.
Initially the app was focused on providing advice to women around sexual health and gynecological issues, eventually expanding to include a period tracker and other tools. Now, with the expansion into the clinical space, Tia’s founders see it as the culmination of their evolution as a company.
“I wanted to build a brand company that makes women feel heard,” says Witte. “We wanted to build a one-stop-shop solution that solves the lack of soul in healthcare.”
With that mission accomplished, the next step is to grow.
Growth at the kind of scale that Witte and Yost envision requires capital, which the two women have received in the form of $6 million in capital commitments from a slew of some of venture capital’s best investors, including John Doerr, Homebrew, Combine, Compound, Torch Capital, Canaan Partners and Define Ventures (Lynne Chou O’Keefe from Kleiner Perkins).
“Tia is a revolutionary company that is changing the way women view and access healthcare. Now, with the launch of the first Tia Clinic, they’re introducing a new model of women’s care that will shift the landscape with convenience, compassion, and personalization,” said Lynne Chou O’Keefe, in a statement.
That sentiment is bound up in the branding of the business. Although neither woman is Latinx, they called their company Tia after the Spanish word for aunt — which, can be expanded to include any trusted relationship among women (whether or not they’re actually related), according to Witte.
The decision to expand from an application into physical clinics was bound up in the use cases the two women saw when they launched their service. “We found very quickly after launching the product that women were hacking Tia and bringing their phones into their gynecologist’s office,” Witte says.
At the newly launched Tia clinic, which opens today at its first location in New York near Madison Square Park, the company is providing full-stack care delivery, including gynecological exams, primary care and wellness.
The company charges a $150 membership fee, but its services are covered under insurance. Tia currently accepts Aetna, Cigna, Humana, Oscar, United Oxford/United Healthcare and Empire Blue Cross Blue Shield.
Treatment at the Tia Clinic is informed by the data that the company’s application collects on its users, both Witte and Yost say. Women can come to the clinic for services ranging from holistic annual exams to IUD insertions to treatment for chronic migraines, alongside more mundane services like flu shots and strep throat treatments.
If Tia users track their cycle and daily health and wellness through the app, that can be shared with their Tia Clinic physicians to inform care. The medical service at this point doesn’t integrate other period-tracking apps into its health data.
At the center of Tia’s clinical care is the notion that the menstrual cycle is broadly associated with physiological and emotional manifestations that can inform and effect treatment.
Tia isn’t the only company that is trying to bring information and data specific to women’s health into a clinical setting. In Oakland, NextGen Jane is using tampons embedded with sensors to diagnose severe health problems, like endometriosis.
And investors are pouring money into period-tracking and fertility apps and services around the country and around the world.
As we wrote earlier this month:
Femtech, a term coined by Ida Tin, the founder of another period and ovulation-tracking app Clue, is defined as any software, diagnostics, products and services that leverage technology to improve women’s health. Femtech, and more specifically the businesses in the fertility and contraception lanes, hasn’t made headlines as often as AI or blockchain technology has, for example. Probably because companies in the sector haven’t closed as many notable venture deals. That’s changing.
The global fertility services market is expected to exceed $21 billion by 2020, according to Technavio. Meanwhile, private investment in the femtech space surpassed $400 million in 2018 after reaching a high of $354 million the previous year, per data collected from PitchBook and Crunchbase. This year already several companies have inked venture deals, including men’s fertility business Dadi and Extend Fertility, which helps women freeze their eggs.
“In the last three to six months, it feels like investor interest has gone through the roof,” Jake Anderson-Bialis, co-founder of FertilityIQ and a former investor at Sequoia Capital, told TechCrunch. “It’s three to four emails a day; people are coming out of the woodwork. It feels like somebody shook the snow globe here and it just hasn’t stopped for months now.”
For Tia, the benefits of understanding menstrual health extend far beyond fertility.
“Women’s health is cyclic and changes every single day of a woman’s cycle,” says Yost. With that said, the company is only just now starting to do clinical research to test the validity of its thesis. “For us to be able to do any sort of clinical research on women is very, very challenging,” says Yost. “All of these things can take a really long time because it takes so much information to diagnose.”
For investors like Homebrew’s Hunter Walk, companies like Tia sit at the intersection of a few promising trends — but the investment was driven by the passion the founders expressed for the mission they were on.
“Women and specifically millennial women and younger are increasingly becoming targeted by venture-backed companies,” says Walk. “For years and years and years that audience was unrecognized and underserved… [But with Tia] what we saw was a checkbox on the founders and their abilities. They checked the box on the audience… and because they were going not just with generic women’s health but cycle-targeted women’s care, we thought that was the right and differentiated approach thinking about healthcare for women.”
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Red Cat, a startup that wants to store drone flight data on the blockchain to guarantee immutability, announced the second beta of its drone data platform today.
Jeff Thompson, CEO of Red Cat, says in 2017 he was looking at what was holding back the commercial drone business and the need for a black-box kind of system became apparent to him. The so-called black box is really a flight recorder that tracks data about a flight. He believed he could create a platform to reproduce this capability for drones and store it on the blockchain to take advantage of the immutability of blockchain data.
“People want to be able to have some accountability and trackability to be able to start utilizing our information, whether it’s regulators or insurance companies, guys that have to write checks if you do a lot of damage,” Thompson told TechCrunch.
This tool could help these interested parties should there be an investigation into a crash, a near-miss with a plane or an incident like the drone that shut down Gatwick Airport in London last year. They can check the record in Red Cat and be assured that the data they are viewing is accurate and hasn’t been tampered with in any way.
Flight logs in Red Cat / Screenshot: Red Cat
Thompson believes having a system like this in place is absolutely essential if the industry is going to mature and be able to share airspace with other types of commercial air traffic. The company wants to do more than create the data tracking system, however. It wants to give drone companies detailed insight into exactly what’s happening with their drones as they travel to different destinations.
The goal is to help companies control and monitor their drone traffic and better understand how they are being utilized. The company is still refining all of this. This is actually the second beta, with 200 people actively using it in the first round. The purpose of this new beta is to elicit additional feedback from the drone community, including companies, pilots, regulators and insurance companies that could benefit from having access to data stored in Red Cat.
The company is based in Puerto Rico and has raised $2.2 million to date.
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Clari started as a company that wanted to give sales teams more information about their sales process than could be found in the CRM database. Today, the company announced a much broader platform, one that can provide insight across sales, marketing and customer service to give a more unified view of a company’s go-to-market operations, all enhanced by AI.
Company co-founder and CEO Andy Byrne says this involves pulling together a variety of data and giving each department the insight to improve their mission. “We are analyzing large volumes of data found in various revenue systems — sales, marketing, customer success, etc. — and we’re using that data to provide a new platform that’s connecting up all of the different revenue departments,” Byrne told TechCrunch.
For sales, that would mean driving more revenue. For marketing it would it involve more targeted plans to drive more sales. And for customer success it would be about increasing customer retention and reducing churn.
Screenshot: ClariThe company’s original idea when it launched in 2012 was looking at a range of data that touched the sales process, such as email, calendars and the CRM database, to bring together a broader view of sales than you could get by looking at the basic customer data stored in the CRM alone. The Clari data could tell the reps things like which deals would be most likely to close and which ones were at risk.
“We were taking all of these signals that had been historically disconnected from each other and we were connecting it all into a new interface for sales teams that’s very different than a CRM,” Byrne said.
Over time, that involved using AI and machine learning to make connections in the data that humans might not have been seeing. The company also found that customers were using the product to look at processes adjacent to sales, and they decided to formalize that and build connectors to relevant parts of the go-to-market system like marketing automation tools from Marketo or Eloqua and customer tools such as Dialpad, Gong.io and Salesloft.
With Clari’s approach, companies can get a unified view without manually pulling all this data together. The goal is to provide customers with a broad view of the go-to-market operation that isn’t possible looking at siloed systems.
The company has experienced tremendous growth over the last year, leaping from 80 customers to 250. These include Okta and Alteryx, two companies that went public in recent years. Clari is based in the Bay Area and has around 120 employees. It has raised more than $60 million. The most recent round was a $35 million Series C last May led by Tenaya Capital.
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