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Theodoric Chew, co-founder and chief executive officer of mental health app Intellect
Intellect, a Singapore-based startup that wants to lower barriers to mental health care in Asia, says it has reached more than one million users just six months after launching. Google also announced today that the startup’s consumer app, also called Intellect, is one of its picks for best personal growth apps of 2020.
The company recently closed an undisclosed seed round led by Insignia Ventures Partners . Angel investors including e-commerce platform Carousell co-founder and chief executive officer Quek Siu Rui; former Sequoia partner Tim Lee; and startup consultancy xto10x’s Southeast Asia CEO J.J. Chai also participated.
In a statement, Insignia Ventures Partners principal Samir Chaibi said, “In Intellect, we see a fast-scaling platform addressing a pain that has become very obvious amidst the COVID-19 pandemic. We believe that pairing clinically-backed protocols with an efficient mobile-first delivery is the key to break down the barriers to access for millions of patients globally.”
Co-founder and chief executive officer Theodoric Chew launched Intellect earlier this year because while there is a growing pool of mental wellness apps in the United States and Europe that have attracted more funding during the COVID-19 pandemic, the space is still very young in Asia. Intellect’s goal is to encourage more people to incorporate mental health care into their daily routines by lowering barriers like high costs and social stigma.
Intellect offers two products. One is a consumer app with self-guided programs based on cognitive behavioral therapy techniques that center on issues like anxiety, self-esteem or relationship issues.
The other is a mental health platform for employers to offer as a benefit and includes a recently launched telehealth service called Behavioural Health Coaching that connects users with mental health professionals. The service, which includes one-on-one video sessions and unlimited text messaging, is now a core part of Intellect’s services, Chew told TechCrunch.
Intellect’s enterprise product now reaches 10,000 employees, and its clients include tech companies, regional operations for multinational corporations and hospitals. Most are located in Singapore, Hong Kong, Indonesia and India, and range in size from 100 to more than 3,000 employees.
For many small to mid-sized employers, Intellect is often the first mental health benefit they have offered. Larger clients may already have EAP (employee assistance programs), but Chew said those are often underutilized, with an average adoption rate of 1% to 2%. On the other hand, he said Intellect’s employee benefit program sees an average adoption rate of 30% in the first month after it is rolled out at a company.
Chew added that the COVID-19 pandemic has prompted more companies to address burnout and other mental health issues.
“In terms of larger trends, we’ve seen a huge spike in companies across the region having mental health and wellbeing of their employees being prioritized on their agenda,” said Chew. “In terms of user trends, we see a significantly higher utilization in work stress and burnout, anxiety and relationship-related programs.”
Intellect’s seed round will be used to expand in Asian markets and to help fund clinical research studies it is currently conducting with universities and organizations in Singapore, Australia and the United Kingdom.
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The-Wolfpack’s co-founders, Toh Jin Wei, Tan Kok Chin and Simon Nichols (Image Credit: The-Wolfpack)
The COVID-19 pandemic has hit the consumer, leisure and media companies hard, but a new venture firm called The-Wolfpack is still very upbeat on those sectors. Based in Singapore, the firm was founded by former managing directors at GroupM, one of the world’s largest advertising and media companies, and plans to work very closely with each of its portfolio companies. Its name was chosen because they believe “entrepreneurs thrive best in a wolfpack.”
The-Wolfpack’s debut fund, called the Wolfpack Pioneer VCC, is already fully subscribed at $5 million USD, and will focus on direct-to-consumer companies, with plans to invest in eight to 10 startups. The firm is already looking to raise a second fund, with a target of $20 million SGD (about $14.9 million USD) and above, and will set up another office in Thailand, with plans to expand into Indonesia as well.
The-Wolfpack was founded by Toh Jin Wei and Simon Nichols, who met while working at GroupM, and Tan Kok Chin, a former director at Sunray Woodcraft Construction who has worked on projects with Marina Bay Sands, Raffles Hotel and the Singapore Tourism’s offices.
In addition to providing financial capital, The-Wolfpack wants to build ecosystems around its portfolio companies by connecting them with IP owners, digital marketing experts, content producers and designers who can help create offline experiences. It also plans to invest in startups based on opportunities for them to collaborate or cross-sell with one another.
Toh told TechCrunch that formal planning on The-Wolfpack began at the end of 2019, but he and Nichols started thinking of launching their own business five years ago while working together at GroupM.
“Our perspective on what the industry needed was similar — strategic investors who truly knew how to get behind D2C founders,” Toh said.
The COVID-19 pandemic and its economic impact has hurt spending in The-Wolfpack’s three key sectors (consumer, leisure and media). But it also presents opportunities for innovation as consumer habits shift, Nichols said.
For example, even though consumer spending has dropped, people are still “drawn towards brands that build towards higher-quality engagements,” he said. “There is a real business advantage for D2C brands who’ve recognized this shift and know how to act on it.”
The-Wolfpack hasn’t disclosed its investments yet since deals are still being finalized, but some of the brands its debut fund are interested in include one launched by an Australian makeup artist who wants to scale to Southeast Asia, and an online gaming company whose ecosystem includes original content, gaming teams and studios. The-Wolfpack plans to help them set up a physical studio to create an offline experience, too.
“Typically brands have talked at customers, but it’s become a two-way conversation, and startups who get D2C right have a real potential for exponential growth that’s worth investing in,” said Toh.
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As 5G slowly moves from being a theoretical to an active part of the coverage map for the mobile industry — if not for consumers themselves — companies that are helping carriers make the migration less painful and less costly are seeing a boost of attention.
In the latest development, Cellwize, a startup that’s built a platform to automate and optimize data for carriers to run 5G networks within multi-vendor environments, has raised $32 million — funding that it will use to continue expanding its business into more geographies and investing in R&D to bring more capabilities to its flagship CHIME platform.
The funding is notable because of the list of strategic companies doing the investing, as well as because of the amount of traction that Cellwize has had to date.
The Series B round is being co-led Intel Capital and Qualcomm Ventures LLC, and Verizon Ventures (which is part of Verizon, which also owns TechCrunch by way of Verizon Media) and Samsung Next, with existing shareholders also participating. That list includes Deutsche Telekom and Sonae, a Portuguese conglomerate that owns multiple brands in retail, financial services, telecoms and more.
That backing underscores Cellwize’s growth. The company — which is based in Israel with operations also in Dallas and Singapore — says it currently provides services to some 40 carriers (including Verizon, Telefonica and more), covering 16 countries, 3 million cell sites, and 800 million subscribers.
Cellwize is not disclosing its valuation but it has raised $56.5 million from investors to date.
5G holds a lot of promise for carriers, their vendors, handset makers and others in the mobile ecosystem: the belief is that faster and more efficient speeds for wireless data will unlock a new wave of services and usage and revenues from services for consumers and business, covering not just people but IoT networks, too.
Notwithstanding the concerns some have had with health risks, despite much of that theory being debunked over the years, one of the technical issues with 5G has been implementing it.
Migrating can be costly and laborious, not least because carriers need to deploy more equipment at closer distances, and because they will likely be running hybrid systems in the Radio Access Network (RAN, which controls how devices interface with carriers’ networks); and they will be managing legacy networks (eg, 2G, 3G, 4G, LTE) alongside 5G, and working with multiple vendors within 5G itself.
Cellwize positions its CHIME platform — which works as an all-in-one tool that leverages AI and other tech in the cloud, and covers configuring new 5G networks, optimizing and monitoring data on them, and also providing APIs for third-party developers to integrate with it — as the bridge to letting carriers operate in the more open-shop approach that marks the move to 5G.
“While large companies have traditionally been more dominant in the RAN market, 5G is changing the landscape for how the entire mobile industry operates,” said Ofir Zemer, Cellwize’s CEO. “These traditional vendors usually offer solutions which plug into their own equipment, while not allowing third parties to connect, and this creates a closed and limited ecosystem. [But] the large operators also are not interested in being tied to one vendor: not technology-wise and not on the business side – as they identify this as an inhibitor to their own innovation.”
Cellwize provides an open platform that allows a carrier to plan, deploy and manage the RAN in that kind of multi-vendor ecosystem. “We have seen an extremely high demand for our solution and as 5G rollouts continue to increase globally, we expect the demand for our product will only continue to grow,” he added.
Previously, Zemer said that carriers would build their own products internally to manage data in the RAN, but these “struggle to support 5G.”
The competition element is not just lip service: the fact that both Intel and Qualcomm — competitors in key respects — are investing in this round underscores how Cellwize sees itself as a kind of Switzerland in mobile architecture. It also underscores that both view easy and deep integrations with its tech as something worth backing, given the priorities of each of their carrier customers.
“Over the last decade, Intel technologies have been instrumental in enabling the communications industry to transform networks with an agile and scalable infrastructure,” said David Flanagan, VP and senior MD at Intel Capital, in a statement. “With the challenges in managing the high complexity of radio access networks, we are encouraged by the opportunity in front of Cellwize to explore ways to utilize their AI-based automation capabilities as Intel brings the benefits of cloud architectures to service provider and private networks.”
“Qualcomm is at the forefront of 5G expansion, creating a robust ecosystem of technologies that will usher in the new era of connectivity,” added Merav Weinryb, Senior Director of Qualcomm Israel Ltd. and MD of Qualcomm Ventures Israel and Europe. “As a leader in RAN automation and orchestration, Cellwize plays an important role in 5G deployment. We are excited to support Cellwize through the Qualcomm Ventures’ 5G global ecosystem fund as they scale and expedite 5G adoption worldwide.”
And that is the key point. Right now there are precious few 5G deployments, and sometimes, when you read some the less shiny reports of 5G rollouts, you might be forgiven for feeling like it’s more marketing than reality at this point. But Zemer — who is not a co-founder (both of them have left the company) but has been with it since 2013, almost from the start — is sitting in on the meetings with carriers, and he believes that it won’t be long before all that tips.
“Within the next five years, approximately 75% of mobile connections will be powered by 5G, and 2.6 billion 5G mobile subscriptions will be serving 65% of the world’s population,” he said. “While 5G technology holds a tremendous amount of promise, the reality is that it is also hyper-complex, comprised of multiple technologies, architectures, bands, layers, and RAN/vRAN players. We are working with network operators around the world to help them overcome the challenges of rolling out and managing these next generation networks, by automating their entire RAN processes, allowing them to successfully deliver 5G to their customers.”
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Running a small to medium-sized business means a small staff needs to juggle a plethora of tasks, like bookkeeping, tax records and regulatory filings. Singaporean startup Lanturn streamlines their workload with a combination of corporate services and an internal platform that helps automate administrative work. Lanturn announced today that it has raised a $3 million seed round led by East Ventures and CoCoon Ignite Ventures.
Spun out from Zave, a Singaporean management app (and another startup in East Ventures’ portfolio), two years ago, Lanturn now has almost 400 clients. It focuses on startups and SMEs, acting as a “one-stop online corporate services” solution, and uses its internal tech platform to differentiate from other corporate service providers.
Lanturn’s services include helping companies incorporate in Singapore and handling visa applications for new hires. It is led by chief executive officer Velisarios Kattoulas.
Kattoulas told TechCrunch that Lanturn’s seed funding will be used for hiring and to develop its technology.
In a statement about the investment, East Ventures managing partner and co-founder Batara Eto said, “We are pleased to support solutions that enable agility and adaptability among businesses, especially in the wake of the pandemic, and Lanturn provides that by leveraging technology to streamline corporate services and empower businesses to make more informed data-driven decisions.”
Other participants in the round included individual investors Alex Turnbull; RVP Equity managing partner Saki Georgiadis; Meiyen Tan, the head of Oon & Bazul’s restructuring and insolvency practice; White & Case Asia-Pacific partner Chris Kelly; and Next Billion Ventures venture partner Tiang Foo Lim.
Lanturn’s clients range in size from very early-stage startups with only one person, to small and mid-sized asset managers, SMEs and tech firms that have more than 100 employees spread across several countries.
The COVID-19 pandemic meant there was less demand for Lanturn’s services this year than the company had expected, but on the other hand, “the pandemic has highlighted to clients that because Lanturn has its own cloud-based corporate services platform, we can serve them as well today as we could before the pandemic,” Kattoulas said. “That’s helped us maintain momentum, and it’s one reason we’ll grow more this year than almost any cloud-based or traditional corporate services firm.”
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While Southeast Asia’s startup ecosystems are still young compared to those in China or India, it has matured over the last five years. Unicorns like Grab, Gojek and Garena are continuing to grow, and more competitive startups are emerging in sectors like fintech, e-commerce and logistics. That leads to the question: Will consolidation start to pick up?
The consensus by investors interviewed by Extra Crunch is: Yes, but slowly at first. In the meantime, there are still roadblocks to mergers and acquisitions, including few buyers and the size of markets like Indonesia, which means startups there have a lot of room to grow on their own, even alongside competitors. But many Southeast Asian startup ecosystems are rapidly evolving, and consolidations may speed up in the next few years.
During a Disrupt session, East Ventures partner Melisa Irene spoke about consolidation as a strategy, especially when larger companies, like Grab, decide to expand into new services by acquiring smaller players. In an interview with Extra Crunch, Irene elaborated on the idea.
“Companies that want to get more value out of their customers by expanding into other services can do it internally by developing it, or do it externally by buying existing companies that have been operating in the same or adjacent sectors,” she said.
For many years, companies opted not to do that because of the cost, she added, but that mindset started to shift a few years ago.
In 2018, Grab acquired Uber’s Southeast Asia operations, still one of the highest-profile examples of consolidation in the region. The “superapp” also built out its financial services business by acquiring fintech startups Kudo, iKaaz, Bento and OVO.
Grab rival Gojek has been an even busier buyer, acquiring 13 startups so far according to Crunchbase, including Vietnamese payments startup WePay and Indonesian point-of-sale platform Moka earlier this year.
Meanwhile, Traveloka acquired three competing online travel agencies in 2018, while e-commerce platform Tokopedia bought Bridestory, its first publicly known acquisition, last year to expand into the Indonesian bridal industry.
Golden Gate Ventures partner Justin Hall said he has seen attitudes toward consolidation in Southeast Asia gradually shift since the investment firm was founded in 2011.
“I would say over the next two to three years, we’re definitely going to start seeing much more M&A occurring than versus the last eight to 10 years. It’s the confluence of different factors. One, I think corporate VC is starting to pour a little bit more money into the space. You have a lot of international tech companies, e.g., from China, or regional unicorns that are being much more acquisitive in their strategy,” Hall said.
He added that an often overlooked factor is that a lot of regional early-stage and institutional funds launched about a decade ago, building a foundation for Southeast Asia’s startup ecosystems. Many of these funds started out with a 10-year mandate and as a result, general partners may start examining how they can orchestrate sales, for example by talking to corporate acquirers, financiers or other sources of capital for an exit.
“A lot of activity that you’re starting to see right now is under the table. We have funds coming up on that 10-year mark, saying, ‘Let’s see where we can derive value within our portfolio, within specific companies that we can sell.’ That is going to start happening en masse over the next two years once we hit that 10-year mark for a lot of these funds.”
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Marco Financial, a new Miami-based startup, is looking to take a piece of the roughly $350 billion trade finance market for Latin American exporters with its novel factoring services business.
Small and medium-sized businesses in Latin America can have trouble getting the financing they need to launch export operations to the U.S. and Marco said it aims to bridge that gap with new risk modeling and management tools that can make better decisions on who should receive loans.
“For smaller businesses in Latin America, accessing trade finance to export their goods is a major concern and a top reason why many don’t succeed,” said Javier Urrutia, director of Foreign Investments at PROCOLOMBIA, an organization that promotes foreign investment and non-traditional exports in Colombia, in a statement from the company. “In Colombia alone, a 1% increase in exporter productivity in our textile industry would result in 500,000 new jobs for the country.”
The company is backed by a small seed round from Struck Capital and Antler and over $20 million in a credit facility underwritten by Arcadia Funds.
“As a former owner of a small business in Latin America, I saw firsthand how difficult it is for SMEs in this region to access trade financing that will let them export their goods while retaining enough capital to keep their business running,” said Peter D. Spradling, COO and co-founder of Marco, in a statement. “Access to trade finance is one of the greatest hurdles in business operations and the traditional system dominated by banks is simply not working anymore, disproportionately hurting SMEs and further restricting economic mobility and job creation in emerging markets. Equity funding and a material credit facility let us serve this underserved market in Latin America and help build a healthier, more equitable trade ecosystem reflective of an increasingly borderless global economy.”
Spradling met his co-founder Jacob Shoihet through the Antler accelerator, a Singapore and New York-based early-stage investment and advisory services program that connects entrepreneurs and tech operators to launch new businesses.
Shoihet, a classically trained musician who fell in with the startup scene in New York through work at Yelp, was eager to launch his own company and connected with Spradling over shared interests in intermittent fasting and sports.
Small and medium businesses have a hard time receiving loans from traditional lenders thanks to tighter regulations and capital controls dating back to the 2008 financial crisis, according to Marco’s founders. And the long periods that companies have to wait between when goods are shipped and orders are payed can put undue pressure on business operations. Factoring solves the gap by lending to merchants based on their receivables.
Marco said that it can reduce the length of the loan origination process from over two months to one week and provide funding to approved exporters within 24 hours.
The company is initially focused on Mexico, Uruguay, Chile, Colombia and Peru, and chose those markets because of Spradling’s previous experience as an importer and exporter across the region.
“We look for companies that not only target massive, sleepy industries but also for ones that are led by management teams with fresh perspectives and asymmetric information that position them to upend incumbents,” said Yida Gao, partner at Struck Capital, in a statement. “In short order, Marco has assembled a world-class team to tackle the multi trillion-dollar trade finance market in a post-Covid time when SMEs around the world need, more than ever, reliable capital to fund operations and growth. We are excited to be part of Marco’s journey to support the suppliers that are the backbone of global trade.”
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Imagine buying a dress online because a piece of code sold you on its ‘flattering, feminine flair’ — or convinced you ‘romantic floral details’ would outline your figure with ‘timeless style’. The very same day your friend buy the same dress from the same website but she’s sold on a description of ‘vibrant tones’, ‘fresh cotton feel’ and ‘statement sleeves’.
This is not a detail from a sci-fi short story but the reality and big picture vision of Hypotenuse AI, a YC-backed startup that’s using computer vision and machine learning to automate product descriptions for e-commerce.
One of the two product descriptions shown below is written by a human copywriter. The other flowed from the virtual pen of the startup’s AI, per an example on its website.
Can you guess which is which?* And if you think you can — well, does it matter?
Screengrab: Hypotenuse AI’s website
Discussing his startup on the phone from Singapore, Hypotenuse AI’s founder Joshua Wong tells us he came up with the idea to use AI to automate copywriting after helping a friend set up a website selling vegan soap.
“It took forever to write effective copy. We were extremely frustrated with the process when all we wanted to do was to sell products,” he explains. “But we knew how much description and copy affect conversions and SEO so we couldn’t abandon it.”
Wong had been working for Amazon, as an applied machine learning scientist for its Alexa AI assistant. So he had the technical smarts to tackle the problem himself. “I decided to use my background in machine learning to kind of automate this process. And I wanted to make sure I could help other e-commerce stores do the same as well,” he says, going on to leave his job at Amazon in June to go full time on Hypotenuse.
The core tech here — computer vision and natural language generation — is extremely cutting edge, per Wong.
“What the technology looks like in the back end is that a lot of it is proprietary,” he says. “We use computer vision to understand product images really well. And we use this together with any metadata that the product already has to generate a very ‘human fluent’ type of description. We can do this really quickly — we can generate thousands of them within seconds.”
“A lot of the work went into making sure we had machine learning models or neural network models that could speak very fluently in a very human-like manner. For that we have models that have kind of learnt how to understand and to write English really, really well. They’ve been trained on the Internet and all over the web so they understand language very well. “Then we combine that together with our vision models so that we can generate very fluent description,” he adds.
Image credit: Hypotenuse
Wong says the startup is building its own proprietary data-set to further help with training language models — with the aim of being able to generate something that’s “very specific to the image” but also “specific to the company’s brand and writing style” so the output can be hyper tailored to the customer’s needs.
“We also have defaults of style — if they want text to be more narrative, or poetic, or luxurious — but the more interesting one is when companies want it to be tailored to their own type of branding of writing and style,” he adds. “They usually provide us with some examples of descriptions that they already have… and we used that and get our models to learn that type of language so it can write in that manner.”
What Hypotenuse’s AI is able to do — generate thousands of specifically detailed, appropriately styled product descriptions within “seconds” — has only been possible in very recent years, per Wong. Though he won’t be drawn into laying out more architectural details, beyond saying the tech is “completely neural network-based, natural language generation model”.
“The product descriptions that we are doing now — the techniques, the data and the way that we’re doing it — these techniques were not around just like over a year ago,” he claims. “A lot of the companies that tried to do this over a year ago always used pre-written templates. Because, back then, when we tried to use neural network models or purely machine learning models they can go off course very quickly or they’re not very good at producing language which is almost indistinguishable from human.
“Whereas now… we see that people cannot even tell which was written by AI and which by human. And that wouldn’t have been the case a year ago.”
(See the above example again. Is A or B the robotic pen? The Answer is at the foot of this post)
Asked about competitors, Wong again draws a distinction between Hypotenuse’s ‘pure’ machine learning approach and others who relied on using templates “to tackle this problem of copywriting or product descriptions”.
“They’ve always used some form of templates or just joining together synonyms. And the problem is it’s still very tedious to write templates. It makes the descriptions sound very unnatural or repetitive. And instead of helping conversions that actually hurts conversions and SEO,” he argues. “Whereas for us we use a completely machine learning based model which has learnt how to understand language and produce text very fluently, to a human level.”
There are now some pretty high profile applications of AI that enable you to generate similar text to your input data — but Wong contends they’re just not specific enough for a copywriting business purpose to represent a competitive threat to what he’s building with Hypotenuse.
“A lot of these are still very generalized,” he argues. “They’re really great at doing a lot of things okay but for copywriting it’s actually quite a nuanced space in that people want very specific things — it has to be specific to the brand, it has to be specific to the style of writing. Otherwise it doesn’t make sense. It hurts conversions. It hurts SEO. So… we don’t worry much about competitors. We spent a lot of time and research into getting these nuances and details right so we’re able to produce things that are exactly what customers want.”
So what types of products doesn’t Hypotenuse’s AI work well for? Wong says it’s a bit less relevant for certain product categories — such as electronics. This is because the marketing focus there is on specs, rather than trying to evoke a mood or feeling to seal a sale. Beyond that he argues the tool has broad relevance for e-commerce. “What we’re targeting it more at is things like furniture, things like fashion, apparel, things where you want to create a feeling in a user so they are convinced of why this product can help them,” he adds.
The startup’s SaaS offering as it is now — targeted at automating product description for e-commerce sites and for copywriting shops — is actually a reconfiguration itself.
The initial idea was to build a “digital personal shopper” to personalize the e-commerce experence. But the team realized they were getting ahead of themselves. “We only started focusing on this two weeks ago — but we’ve already started working with a number of e-commerce companies as well as piloting with a few copywriting companies,” says Wong, discussing this initial pivot.
Building a digital personal shopper is still on the roadmap but he says they realized that a subset of creating all the necessary AI/CV components for the more complex ‘digital shopper’ proposition was solving the copywriting issue. Hence dialing back to focus in on that.
“We realized that this alone was really such a huge pain-point that we really just wanted to focus on it and make sure we solve it really well for our customers,” he adds.
For early adopter customers the process right now involves a little light onboarding — typically a call to chat through their workflow is like and writing style so Hypotenuse can prep its models. Wong says the training process then takes “a few days”. After which they plug in to it as software as a service.
Customers upload product images to Hypotenuse’s platform or send metadata of existing products — getting corresponding descriptions back for download. The plan is to offer a more polished pipeline process for this in the future — such as by integrating with e-commerce platforms like Shopify .
Given the chaotic sprawl of Amazon’s marketplace, where product descriptions can vary wildly from extensively detailed screeds to the hyper sparse and/or cryptic, there could be a sizeable opportunity to sell automated product descriptions back to Wong’s former employer. And maybe even bag some strategic investment before then… However Wong won’t be drawn on whether or not Hypotenuse is fundraising right now.
On the possibility of bagging Amazon as a future customer he’ll only say “potentially in the long run that’s possible”.
Joshua Wong (Photo credit: Hypotenuse AI)
The more immediate priorities for the startup are expanding the range of copywriting its AI can offer — to include additional formats such as advertising copy and even some ‘listicle’ style blog posts which can stand in as content marketing (unsophisticated stuff, along the lines of ’10 things you can do at the beach’, per Wong, or ’10 great dresses for summer’ etc).
“Even as we want to go into blog posts we’re still completely focused on the e-commerce space,” he adds. “We won’t go out to news articles or anything like that. We think that that is still something that cannot be fully automated yet.”
Looking further ahead he dangles the possibility of the AI enabling infinitely customizable marketing copy — meaning a website could parse a visitor’s data footprint and generate dynamic product descriptions intended to appeal to that particular individual.
Crunch enough user data and maybe it could spot that a site visitor has a preference for vivid colors and like to wear large hats — ergo, it could dial up relevant elements in product descriptions to better mesh with that person’s tastes.
“We want to make the whole process of starting an e-commerce website super simple. So it’s not just copywriting as well — but all the difference aspects of it,” Wong goes on. “The key thing is we want to go towards personalization. Right now e-commerce customers are all seeing the same standard written content. One of the challenges there it’s hard because humans are writing it right now and you can only produce one type of copy — and if you want to test it for other kinds of users you need to write another one.
“Whereas for us if we can do this process really well, and we are automating it, we can produce thousands of different kinds of description and copy for a website and every customer could see something different.”
It’s a disruptive vision for e-commerce (call it ‘A/B testing’ on steroids) that is likely to either delight or terrify — depending on your view of current levels of platform personalization around content. That process can wrap users in particular bubbles of perspective — and some argue such filtering has impacted culture and politics by having a corrosive impact on the communal experiences and consensus which underpins the social contract. But the stakes with e-commerce copy aren’t likely to be so high.
Still, once marketing text/copy no longer has a unit-specific production cost attached to it — and assuming e-commerce sites have access to enough user data in order to program tailored product descriptions — there’s no real limit to the ways in which robotically generated words could be reconfigured in the pursuit of a quick sale.
“Even within a brand there is actually a factor we can tweak which is how creative our model is,” says Wong, when asked if there’s any risk of the robot’s copy ending up feeling formulaic. “Some of our brands have like 50 polo shirts and all of them are almost exactly the same, other than maybe slight differences in the color. We are able to produce very unique and very different types of descriptions for each of them when we cue up the creativity of our model.”
“In a way it’s sometimes even better than a human because humans tends to fall into very, very similar ways of writing. Whereas this — because it’s learnt so much language over the web — it has a much wider range of tones and types of language that it can run through,” he adds.
What about copywriting and ad creative jobs? Isn’t Hypotenuse taking an axe to the very copywriting agencies his startup is hoping to woo as customers? Not so, argues Wong. “At the end of the day there are still editors. The AI helps them get to 95% of the way there. It helps them spark creativity when you produce the description but that last step of making sure it is something that exactly the customer wants — that’s usually still a final editor check,” he says, advocating for the human in the AI loop. “It only helps to make things much faster for them. But we still make sure there’s that last step of a human checking before they send it off.”
“Seeing the way NLP [natural language processing] research has changed over the past few years it feels like we’re really at an inception point,” Wong adds. “One year ago a lot of the things that we are doing now was not even possible. And some of the things that we see are becoming possible today — we didn’t expect it for one or two years’ time. So I think it could be, within the next few years, where we have models that are not just able to write language very well but you can almost speak to it and give it some information and it can generate these things on the go.”
*Per Wong, Hypotenuse’s robot is responsible for generating description ‘A’. Full marks if you could spot the AI’s tonal pitfalls
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Singapore-based fintech startup GoBear has raised $17 million from returning investors Walvis Participaties, a Dutch venture capital firm, and Aegon N.V., a life insurance and asset management provider. The funding brings GoBear’s total funding so far to $97 million, and will be used to expand its consumer financial services platform, which is available in seven Asian markets: Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Founder and CEO Adrian Chng told TechCrunch that GoBear will focus on what it calls its “three growth pillars”: an online financial supermarket that evolved from the company’s financial products aggregator/comparison service; an online insurance brokerage; and its digital lending business, which it recently expanded by acquiring consumer lending platform AsiaKredit.
The company has also added three new executives over the past few months: chief information technology officer Valeriy Gasratov; chief strategy officer Jinnee Lim as Chief Strategy Officer; and Mike Singh from AsiaKredit as its new chief lending officer.
GoBear originally launched in 2015 as a metasearch engine, before transitioning into financial services. The company now works with over 100 financial partners, including banks and insurance providers, and says its platform has been used by over 55 million people to search for more than 2,000 personal financial products.
The startup serves consumers who don’t have credit cards or other access to traditional credit building tools. Similar to other fintech companies that focus on underbanked populations, GoBear aggregates and analyzes alternative sources of data to judge lending risk, including patterns in consumer behavior. For example, Chng said if a loan application is filled out in less than a minute, it is more likely to be fraudulent, and applications made between 8:30PM and midnight are less risky than ones made between 2AM to 5AM.
Data points from smartphones is also used to assess creditworthiness in markets like the Philippines, where the credit card penetration rate is less than 10%, but more than 40% of the population uses a smartphone.
Despite the COVID-19 pandemic, Chng said GoBear has been gross margin positive since the end of 2019. Interest in travel insurance has declined, but the company has continued to see demand for other insurance products and lending. Its online insurance brokerage has grown its average order by 52% over the last three months, and the company has seen 50% year-over-year growth from its loan products.
There are other fintech companies in Asia that overlap with some of the services that GoBear offers, like comparison platform MoneySmart, CompareAsiaGroup and Grab Financial Group. In terms of competition, Chng told TechCrunch that not only is the market opportunity in Asia huge (he said there are 400 million underbanked people across GoBear’s seven markets), but the company also differentiates with its three core services, which are all interconnected and draw on the same data sources to score credit.
Chng anticipates that the pandemic will spur more financial institutions to begin digitizing their products and looking for partners like GoBear to help them manage risk. In turn, that will make more financial institutions open to using non-traditional data to score credit, enabling underbanked markets to have increased access to financial products.
“The momentum is here. I think now is the time for tech and data to transform financial services,” he said. “As a platform, we are really looking for partners to come with us for the next phase of growth and investment. I feel positive even with COVID-19, because I think that we will have more acceleration, and the opportunity to change people’s lives and benefit them and investors by solving tough problems will only increase.”
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The UK may be rethinking its decision to shun Apple and Google’s API for its national coronavirus contacts tracing app, according to the Financial Times, which reported yesterday that the government is paying an IT supplier to investigate whether it can integrate the tech giants’ approach after all.
As we’ve reported before coronavirus contacts tracing apps are a new technology which aims to repurpose smartphones’ Bluetooth signals and device proximity to try to estimate individuals’ infection risk.
The UK’s forthcoming app, called NHS COVID-19, has faced controversy because it’s being designed to use a centralized app architecture. This means developers are having to come up with workarounds for platform limitations on background access to Bluetooth as the Apple-Google cross-platform API only works with decentralized systems.
The choice of a centralized app architecture has also raised concerns about the impact of such an unprecedented state data grab on citizens’ privacy and human rights, and the risk of state ‘mission creep‘.
The UK also looks increasingly isolated in its choice in Europe after the German government opted to switch to a decentralized model, joining several other European countries that have said they will opt for a p2p approach, including Estonia, Ireland and Switzerland.
In the region, France remains the other major backer of a centralized system for its forthcoming coronavirus contacts tracing app, StopCovid.
Apple and Google, meanwhile, are collaborating on a so-called “exposure notification” API for national coronavirus contacts tracing apps. The API is slated to launch this month and is designed to remove restrictions that could interfere with how contact events are logged. However it’s only available for apps that don’t hold users’ personal data on central servers and prohibits location tracking, with the pair emphasizing that their system is designed to put privacy at the core.
Yesterday the FT reported that NHSX, the digital transformation branch of UK’s National Health Service, has awarded a £3.8M contract to the London office of Zuhlke Engineering, a Switzerland-based IT development firm which was involved in developing the initial version of the NHS COVID-19 app.
The contract includes a requirement to “investigate the complexity, performance and feasibility of implementing native Apple and Google contact tracing APIs within the existing proximity mobile application and platform”, per the newspaper’s report.
The work is also described as a “two week timeboxed technical spike”, which the FT suggests means it’s still at a preliminary phase — thought it also notes the contract includes a deadline of mid-May.
The contracted work was due to begin yesterday, per the report.
We’ve reached out to Zuhlke for comment. Its website describes the company as “a strong solutions partner” that’s focused on projects related to digital product delivery; cloud migration; scaling digital platforms; and the Internet of Things.
We also put questions arising from the FT report to NHSX.
At the time of writing the unit had not responded but yesterday a spokesperson told the newspaper: “We’ve been working with Apple and Google throughout the app’s development and it’s quite right and normal to continue to refine the app.”
The specific technical issue that appears to be causing concern relates to a workaround the developers have devised to try to circumvent platform limitations on Bluetooth that’s intended to wake up phones when the app itself is not being actively used in order that the proximity handshakes can still be carried out (and contacts events properly logged).
Thing is, if any of the devices fail to wake up and emit their identifiers so other nearby devices can log their presence there will be gaps in the data. Which, in plainer language, means the app might miss some close encounters between users — and therefore fail to notify some people of potential infection risk.
Recent reports have suggested the NHSX workaround has a particular problem with iPhones not being able to wake up other iPhones. And while Google’s Android OS is the more dominant platform in the UK (running on circa ~60% of smartphones, per Kantar) there will still be plenty of instances of two or more iPhone users passing near each other. So if their apps fail to wake up they won’t exchange data and those encounters won’t be logged.
On this, the FT quotes one person familiar with the NHS testing process who told it the app was able to work in the background in most cases, except when two iPhones were locked and left unused for around 30 minutes, and without any Android devices coming within 60m of the devices. The source also told it that bringing an Android device running the app close to the iPhone would “wake up” its Bluetooth connection.
Clearly, the government having to tell everyone in the UK to use an Android smartphone not an iPhone wouldn’t be a particularly palatable political message.
This is effectively a form of Android Herd Immunity: for the good of Britain, vaccinate your friends by giving them Androids!
— Michael Veale (@mikarv) May 5, 2020
One source with information about the NHSX testing process told us the unit has this week been asking IT suppliers for facilities or input on testing environments with “50-100 Bluetooth devices of mixed origin”, to help with challenges in testing the Bluetooth exchanges — which raises questions about how extensively this core functionality has been tested up to now. (Again, we’ve put questions to the NHSX about testing and will update this report with any response.)
Work on planning and developing the NHS COVID-19 app began March 7, according to evidence given to a UK parliamentary committee by the NHSX CEO’s, Matthew Gould, last month.
Gould has also previously suggested that the app could be “technically” ready to launch in as little as two or three weeks time from now. While a limited geographical trial of the app kicked off this week in the Isle of Wight. Prior to that, an alpha version of the app was tested at an RAF base involving staff carrying out simulations of people going shopping, per a BBC report last month.
Gould faced questions over the choice of centralized vs decentralized app architecture from the human rights committee earlier this week. He suggested then that the government is not “locked” to the choice — telling the committee: “We are constantly reassessing which approach is the right one — and if it becomes clear that the balance of advantage lies in a different approach then we will take that different approach. We’re not irredeemably wedded to one approach; if we need to shift then we will… It’s a very pragmatic decision about what approach is likely to get the results that we need to get.”
However it’s unclear how quickly such a major change to app architecture could be implemented, given centralized vs decentralized systems work in very different ways.
Additionally, such a big shift — more than two months into the NHSX’s project — seems, at such a late stage, as if it would be more closely characterized as a rebuild, rather than a little finessing (as suggested by the NHSX spokesperson’s remark to the FT vis-a-vis ‘refining’ the app).
In related news today, Reuters reports that Colombia has pulled its own coronavirus contacts tracing app after experiencing glitches and inaccuracies. The app had used alternative technology to power contacts logging via Bluetooth and wi-fi. A government official told the news agency it aims to rebuild the system and may now use the Apple-Google API.
Australia has also reported Bluetooth related problems with its national coronavirus app. And has also been reported to be moving towards adopting the Apple-Google API.
While, Singapore, the first country to launch a Bluetooth app for coronavirus contacts tracing, was also the first to run into technical hitches related to platform limits on background access — likely contributing to low download rates for the app (reportedly below 20%).
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A European coalition of techies and scientists drawn from at least eight countries, and led by Germany’s Fraunhofer Heinrich Hertz Institute for telecoms (HHI), is working on contacts-tracing proximity technology for COVID-19 that’s designed to comply with the region’s strict privacy rules — officially unveiling the effort today.
China-style individual-level location-tracking of people by states via their smartphones even for a public health purpose is hard to imagine in Europe — which has a long history of legal protection for individual privacy. However the coronavirus pandemic is applying pressure to the region’s data protection model, as governments turn to data and mobile technologies to seek help with tracking the spread of the virus, supporting their public health response and mitigating wider social and economic impacts.
Scores of apps are popping up across Europe aimed at attacking coronavirus from different angles. European privacy not-for-profit, noyb, is keeping an updated list of approaches, both led by governments and private sector projects, to use personal data to combat SARS-CoV-2 — with examples so far including contacts tracing, lockdown or quarantine enforcement and COVID-19 self-assessment.
The efficacy of such apps is unclear — but the demand for tech and data to fuel such efforts is coming from all over the place.
In the UK the government has been quick to call in tech giants, including Google, Microsoft and Palantir, to help the National Health Service determine where resources need to be sent during the pandemic. While the European Commission has been leaning on regional telcos to hand over user location data to carry out coronavirus tracking — albeit in aggregated and anonymized form.
The newly unveiled Pan-European Privacy-Preserving Proximity Tracing (PEPP-PT) project is a response to the coronavirus pandemic generating a huge spike in demand for citizens’ data that’s intended to offer not just an another app — but what’s described as “a fully privacy-preserving approach” to COVID-19 contacts tracing.
The core idea is to leverage smartphone technology to help disrupt the next wave of infections by notifying individuals who have come into close contact with an infected person — via the proxy of their smartphones having been near enough to carry out a Bluetooth handshake. So far so standard. But the coalition behind the effort wants to steer developments in such a way that the EU response to COVID-19 doesn’t drift towards China-style state surveillance of citizens.
While, for the moment, strict quarantine measures remain in place across much of Europe there may be less imperative for governments to rip up the best practice rulebook to intrude on citizens’ privacy, given the majority of people are locked down at home. But the looming question is what happens when restrictions on daily life are lifted?
Contacts tracing — as a way to offer a chance for interventions that can break any new infection chains — is being touted as a key component of preventing a second wave of coronavirus infections by some, with examples such as Singapore’s TraceTogether app being eyed up by regional lawmakers.
Singapore does appear to have had some success in keeping a second wave of infections from turning into a major outbreak, via an aggressive testing and contacts-tracing regime. But what a small island city-state with a population of less than 6M can do vs a trading bloc of 27 different nations whose collective population exceeds 500M doesn’t necessarily seem immediately comparable.
Europe isn’t going to have a single coronavirus tracing app. It’s already got a patchwork. Hence the people behind PEPP-PT offering a set of “standards, technology, and services” to countries and developers to plug into to get a standardized COVID-19 contacts-tracing approach up and running across the bloc.
The other very European flavored piece here is privacy — and privacy law. “Enforcement of data protection, anonymization, GDPR [the EU’s General Data Protection Regulation] compliance, and security” are baked in, is the top-line claim.
“PEPP-PR was explicitly created to adhere to strong European privacy and data protection laws and principles,” the group writes in an online manifesto. “The idea is to make the technology available to as many countries, managers of infectious disease responses, and developers as quickly and as easily as possible.
“The technical mechanisms and standards provided by PEPP-PT fully protect privacy and leverage the possibilities and features of digital technology to maximize speed and real-time capability of any national pandemic response.”
Hans-Christian Boos, one of the project’s co-initiators — and the founder of an AI company called Arago –discussed the initiative with German newspaper Der Spiegel, telling it: “We collect no location data, no movement profiles, no contact information and no identifiable features of the end devices.”
The newspaper reports PEPP-PT’s approach means apps aligning to this standard would generate only temporary IDs — to avoid individuals being identified. Two or more smartphones running an app that uses the tech and has Bluetooth enabled when they come into proximity would exchange their respective IDs — saving them locally on the device in an encrypted form, according to the report.
Der Spiegel writes that should a user of the app subsequently be diagnosed with coronavirus their doctor would be able to ask them to transfer the contact list to a central server. The doctor would then be able to use the system to warn affected IDs they have had contact with a person who has since been diagnosed with the virus — meaning those at risk individuals could be proactively tested and/or self-isolate.
On its website PEPP-PT explains the approach thus:
Mode 1
If a user is not tested or has tested negative, the anonymous proximity history remains encrypted on the user’s phone and cannot be viewed or transmitted by anybody. At any point in time, only the proximity history that could be relevant for virus transmission is saved, and earlier history is continuously deleted.Mode 2
If the user of phone A has been confirmed to be SARS-CoV-2 positive, the health authorities will contact user A and provide a TAN code to the user that ensures potential malware cannot inject incorrect infection information into the PEPP-PT system. The user uses this TAN code to voluntarily provide information to the national trust service that permits the notification of PEPP-PT apps recorded in the proximity history and hence potentially infected. Since this history contains anonymous identifiers, neither person can be aware of the other’s identity.
Providing further detail of what it envisages as “Country-dependent trust service operation”, it writes: “The anonymous IDs contain encrypted mechanisms to identify the country of each app that uses PEPP-PT. Using that information, anonymous IDs are handled in a country-specific manner.”
While on healthcare processing is suggests: “A process for how to inform and manage exposed contacts can be defined on a country by country basis.”
Among the other features of PEPP-PT’s mechanisms the group lists in its manifesto are:
Having a standardized approach that could be plugged into a variety of apps would allow for contacts tracing to work across borders — i.e. even if different apps are popular in different EU countries — an important consideration for the bloc, which has 27 Member States.
However there may be questions about the robustness of the privacy protection designed into the approach — if, for example, pseudonymized data is centralized on a server that doctors can access there could be a risk of it leaking and being re-identified. And identification of individual device holders would be legally risky.
Europe’s lead data regulator, the EDPS, recently made a point of tweeting to warn an MEP (and former EC digital commissioner) against the legality of applying Singapore-style Bluetooth-powered contacts tracing in the EU — writing: “Please be cautious comparing Singapore examples with European situation. Remember Singapore has a very specific legal regime on identification of device holder.”
Dear Mr. Commissioner, please be cautious comparing Singapoore examples with European situation. Remember Singapore has a very specific legal regime on identification of device holder.
— Wojtek Wiewiorowski (@W_Wiewiorowski) March 27, 2020
A spokesman for the EDPS told us it’s in contact with data protection agencies of the Member States involved in the PEPP-PT project to collect “relevant information”.
“The general principles presented by EDPB on 20 March, and by EDPS on 24 March are still relevant in that context,” the spokesman added — referring to guidance issued by the privacy regulators last month in which they encouraged anonymization and aggregation should Member States want to use mobile location data for monitoring, containing or mitigating the spread of COVID-19. At least in the first instance.
“When it is not possible to only process anonymous data, the ePrivacy Directive enables Member States to introduce legislative measures to safeguard public security (Art. 15),” the EDPB further noted.
“If measures allowing for the processing of non-anonymised location data are introduced, a Member State is obliged to put in place adequate safeguards, such as providing individuals of electronic communication services the right to a judicial remedy.”
We reached out to the HHI with questions about the PEPP-PT project and were referred to Boos — but at the time of writing had been unable to speak to him.
“The PEPP-PT system is being created by a multi-national European team,” the HHI writes in a press release about the effort. “It is an anonymous and privacy-preserving digital contact tracing approach, which is in full compliance with GDPR and can also be used when traveling between countries through an anonymous multi-country exchange mechanism. No personal data, no location, no Mac-Id of any user is stored or transmitted. PEPP-PT is designed to be incorporated in national corona mobile phone apps as a contact tracing functionality and allows for the integration into the processes of national health services. The solution is offered to be shared openly with any country, given the commitment to achieve interoperability so that the anonymous multi-country exchange mechanism remains functional.”
“PEPP-PT’s international team consists of more than 130 members working across more than seven European countries and includes scientists, technologists, and experts from well-known research institutions and companies,” it adds.
“The result of the team’s work will be owned by a non-profit organization so that the technology and standards are available to all. Our priorities are the well being of world citizens today and the development of tools to limit the impact of future pandemics — all while conforming to European norms and standards.”
The PEPP-PT says its technology-focused efforts are being financed through donations. Per its website, it says it’s adopted the WHO standards for such financing — to “avoid any external influence”.
Of course for the effort to be useful it relies on EU citizens voluntarily downloading one of the aligned contacts tracing apps — and carrying their smartphone everywhere they go, with Bluetooth enabled.
Without substantial penetration of regional smartphones it’s questionable how much of an impact this initiative, or any contacts tracing technology, could have. Although if such tech were able to break even some infection chains people might argue it’s not wasted effort.
Notably, there are signs Europeans are willing to contribute to a public healthcare cause by doing their bit digitally — such as a self-reporting COVID-19 tracking app which last week racked up 750,000 downloads in the UK in 24 hours.
But, at the same time, contacts tracing apps are facing scepticism over their ability to contribute to the fight against COVID-19. Not everyone carries a smartphone, nor knows how to download an app, for instance. There’s plenty of people who would fall outside such a digital net.
Meanwhile, while there’s clearly been a big scramble across the region, at both government and grassroots level, to mobilize digital technology for a public health emergency cause there’s arguably greater imperative to direct effort and resources at scaling up coronavirus testing programs — an area where most European countries continue to lag.
Germany — where some of the key backers of the PEPP-PT are from — being the most notable exception.
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