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Munich-based Lilium, the super-ambitious company developing an electric vertical take-off and landing (VTOL) jet and accompanying “air taxi” service, continues to hire top talent to make its vision a reality. The latest new recruitment is car design veteran Frank Stephenson, who has previously worked for Ferrari, Maserati and Mini, to name but a few.
Considered one of the world’s most renowned and influential car designers in recent times, 58-year-old Stephenson’s portfolio includes iconic designs such as the BMW X5, New MINI, Ferrari F430, Maserati MC12 and McLaren P1. Now he’s embarking on adding the Lilium jet to that list.
Officially starting next month, he’ll be tasked with recruiting an entirely new design team to shape both the interior and exterior of the jet itself, as well as a design language for the company’s wider infrastructure, including landing pads and departure lounges.
In a call with Stephenson yesterday morning, I got to ask him why he’s ditched Ferraris for flying taxis, what his new role will entail more specifically and to dig a little deeper into how he thinks about design and why good design really matters. A lightly edited transcript of the full Q&A follows.
TC: I don’t know a huge amount about designing cars, let alone designing cars that can fly. Designing a modern-day car involves a heck of a lot of people and designing something like the Lilium jet again involves a whole team of people. As head of design, how does your role fit into the larger machine of building a vehicle or “flying car?”
So if you have a Michelin-rated restaurant and you’ve got to feed 100 people, you’re going to have quite a few cooks in there and the waiters and everybody else to run the machine. But the chef, the guy that’s got the Michelin stars… gets all the credit for it. But it’s all the other guys doing the work for him and he’s basically overseeing it and he’s trying to keep everything moving along the right track. That’s kind of what it’s like. I mean, I’m not probably your standard type of design director because I like to get in and cook and mix up the stuff too. I just have never been able to stop getting my hands dirty. I guess in that respect, the design directors come across often as prima donnas almost and sit back and watch the guys work and every now and then say he likes it or he doesn’t like it. But I am more of a hands-on type of director.
I like to build small teams. I don’t like huge teams because it takes a lot longer to get things done and the energy sometimes isn’t as strong with a big team as it is with a smaller team. You’ve got to work faster and much more focused and much more efficiently to get the amount of work done. So that sort of builds the steam up in the pressure cooker, but if you love design it’s absolutely the right temperature to be working at. You want to be under pressure to deliver great design. And typically if you think about a design too long, it gets watered down and loses that character, that pureness that you had at the beginning. So smaller teams tend to come up with better ideas I think, or more dramatic ideas, than huge companies with huge design teams.
I don’t set the brief because that comes from marketing, what product segment or what market segment the product should fit. So if they’re telling us to design a two-seater vehicle or a five-seater vehicle or whatever then that becomes the target of the design team to deliver in a certain time span. What I do is I meet with the marketing guys, I meet with engineering guys.
The engineering guys will lay out what we call a package, where all the critical components are for the vehicle. With a car it is typically “Where does the passenger and the driver sit? Where are the wheels and where is the engine and how much trunk or boot space are we going to have?” Things like that. And then I work around all those components with the aerodynamic engineers, suspension and everything.
What I have to do basically is get the team going with theme ideas and really innovative breakthrough ideas, because that’s what designers do. They don’t repeat stuff, they have to come up with stuff that basically moves the game forward. You’ve got to create within this design team a kind of awesome childlike creativity and emotion feeling. It takes a lot of brainstorming and inspiration. You sort of set the tone of that kind of atmosphere within design to get the designers going and then the mood gains momentum.
I’m very advanced in the way I think — I have to be because of the way design is geared, you do a lot of computer work — but I typically make sure that we all start pen on paper sketching, because that is really the only way to get a design or a spark out of your mind. If you go through a computer it loses the human… So I pretty much try to keep the design team on paper as long as possible.
The moment we come up with great ideas, we work with engineers. Typically I try to get engineers and designers working together in the same studio or very tightly together so there’s no loss of traction, and to make sure that what we’re doing can be made. We typically create scale models out of clay. We maybe do two, maybe three, different designs, and as those designs evolve one will get chosen as the favorite theme. That goes to full-scale. And then when this clay model is finally approved by engineering, and approved by finance, and approved by marketing, and approved by design, we will recommend that to the CEO and he’ll have a look at it if he hasn’t followed throughout the process, and then that product will become the model for prototyping and we’ll take molds off of it and create the real panels for the car and then it goes into production. Pretty much that’s it in a nutshell.
As a design director I have to control everything from the look to the color to the ergonomics to the feasibility of it. And then with Lilium the requirements will probably branch out over into what the Lilium port will look like that you access to get into your jet. So the whole kind of environment from an aesthetic or emotional point of view.
TC: Give me more of a sense of the relationship between design and engineering (or form and function)… Aren’t you somewhat constrained in your imagination by the science of flying?
No, that’s what a bad designer would tell you, “I’m constrained, that’s why the vehicle doesn’t look as good as it should.” But the fact is he’s getting paid the big bucks to make that thing look good and if he can’t make it look good he’s just not good enough. So there’s no excuse in my book for bad design or anything that looks bad. Absolutely no excuse. Anything can be made beautiful and should be made desirable, obviously.
We have to have constraints because safety and engineering require that. If we don’t have constraints then designers aren’t designers they’re just artists and they’re not doing the job. You can make a pretty picture but if it doesn’t work at the end of the day then you haven’t really designed anything, you’ve just drawn a pretty picture.
So in terms of constraints, yeah, but that is what makes the game so fun for a designer, that you’re working within rules and legislation and restrictions which make it a challenge. That’s why you get good-looking cars and other cars that don’t look as good. Like I said, if there is a beautiful small car, why aren’t all small cars beautiful? It’s a taste thing obviously. Some people like some designs, a lot of people like other designs. But good design is absolutely not subjective. There’s good design and bad design, and there are a lot of bad designs out there — not to knock them or criticize — but there are principles for good design that designers typically learn when they’re being educated. If you don’t apply those laws of good design then you’re not going to have a good design.
Inspiration for good design comes from a lot of different sources, but if you’re looking at inspiration from trendy sources like fashion or other types of design that are in one day and out the next then you’re not gonna have a timeless design or an iconic design. Iconic designs are typically timeless designs, they last forever. Anything that was designed iconically 40 years ago will still look great 40 years in the future. The design is so good that it just lasts and lasts and lasts. It is hard to achieve that, but if you use the right type of mental design approach then it’s achievable.
I think designing cars is not harder or easier than designing an aircraft, it’s just making the absolutely best product you can make that works well. Typically if you design something that works very, very well it looks fantastic. If you design something that doesn’t work very well then the design doesn’t matter at the end of the day. One of the interesting things is people always say that form follows function. I’ve never heard anything more ridiculous in my life because for me form equals function. If the product works well, it looks great. There’s nothing in the world that works fantastically well and looks awful, that combination doesn’t exist. Especially in nature. You look at all these beautiful animals and organisms in nature that work incredibly well, and therein lies the beauty of nature. Horses and cheetahs and all these amazing animals, nobody sat down and designed this amazing-looking animal. Evolution caused it to be absolutely fantastic at what it does, and through being fantastic at what it does, the result is the look, and that look is awesome. That same principle is how I feel about design. If you work very good with the engineers and you create optimized solutions, it’s very easy to make them look good, it’s almost inherent in that way.
TC: Regarding the Lilium jet… what is the main challenge in your mind of designing what is a new type of transportation?
My challenge — simply put — is to make the person who gets into the jet not want to get out of it. You know. Although he’s reached his destination he’ll want to do it again and again and again. The reason behind that is because all the new generations coming along after the old farts like us are basically looking for experiences. They’re not so much geared towards buying materialistic things. They love experiences. And that’s what Lilium is going to be offering, an experience and a service. And I see that as the future. For me it’s an amazing opportunity to be able to take something from scratch and develop it into a reality.
It’s always been a sort of science fiction, when you see The Jetsons, the cartoons and things… it’s like, one day, but not in my lifetime. Well, here’s news for the world, it’s coming before they know it and it’s going to be here very, very soon. And these things have to look as amazing as the technology that they’re bringing with them.
What I need to do is not just make it an incredible aesthetic joy to be in, but when you get inside one of these things you don’t want to get out of it. It’s going to be the experiences that you have when you’re inside this transportation device. If you could just take that situation of being inside a capsule, what would you want to occur there? You want to relax, you want to socialize, you want to work, you want to be entertained. All that is now incredibly possible.
I mean all the advances … where everything coming now is digital and so real that you can actually imagine something on the inside being the new wave of entertainment. So basically you’re in your private space, you get to turn it into a virtual world where you’re being transported from A to B or wherever your destination is. And within that space in time you’re in the ideal atmosphere. You’re not really sitting in a plane and just going along for the ride, which is what you do pretty much in a taxi. All the new materials that are coming about at the moment in terms of seats, flooring, lighting, buttons, displays, image projection, sounds and temperature control. You know all the things that we try to shoot into new cars as a next step for luxury, those are just going to become everyday things that are making the whole ride an incredible experience.
Regretfully they’ll be a lot shorter in duration because of the nature of the jet being you know very high-speed and all that. But it’s kind of like if you can imagine somebody who loves roller coasters they’re always at the end thinking “oh my gosh that was too quick, I want to do this thing again.” That is the kind of positive feeling you should have when you get out of the vehicle.
TC: I saw this documentary a while back that made the point that the world we live in is predominately designed by humans and therefore design can make or break our everyday experiences. As a designer, is it really difficult for you living in a world where, let’s face it, a lot of design is awful?
Some designers take it as a job. Other people just live it. And design is all about making the world a better place not a prettier place. That’s [just] a consequence of making it a better place, but making it a better place is what the end goal should be. It’s a shame that there aren’t more designers in the world thinking about making the world a better place.
TC: How did you get this job ? Did they come to you? Were you just like, “I’ve done cars, I want to do something new”?
It was fate, that thing when two separate paths suddenly collide. I think it was more like that. I’d left McLaren in November 2017, not because I was frustrated or anything like that but because I thought there was something bigger than just designing products that nobody really needs, they just desired and want. What was I doing, I was just clogging up the road networks even more and not making the world a better place, probably a more exciting place, but not socially better. And so I left with my ideas of starting my own design studio, which I’ve been sort of kicking off, in terms of how to improve the world, and then I heard about Lilium and Lilium contacted me.
It was just a match made in heaven. It met all my principles of working for an exciting and incredibly innovative company from the very beginning. To be able to establish a design department for them with a design DNA, a design language, the design team, the studio. Doing something for the future of humanity. Staying with transportation, but making it even better than it ever was. Making something science fiction reality.
TC: Are there any particular designers or designs that you can point to and say that designer or product has stood the test of time?
That’s really, really tough. I can tell you specific products for their aesthetic value but I think I have to go deeper than that because you know everybody admires different designers for different reasons. If you could put two guys together that would be da Vinci and Einstein. I mean da Vinci was probably the guy because he not only could paint and draw and all that but he was also an incredible engineer and he figured out how to make these things work and he wanted things to look great too. So if I could say one person for me it would be da Vinci more than anybody else just because the guy could paint, the guy could engineer. Anything he ever touched was absolutely amazing. He was doing flying machines way back too. I like his natural approach. I like people who are really in tune with nature because for me that’s the best inspiration we have. He came up with things that never existed before for the benefit of humanity. Pretty much. If he would have been that kind of guy today he would be the absolutely most awesome human being on earth. I’ve got tons of books on his works and him, and everything like that, just because he’s so inspiring to me.
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Twitch’s Bits, a virtual good that allows fans to cheer on their favorite streamers, have been one of the ways Twitch creators could make money from their channels while also recognizing and rewarding their top fans. Today, the game streaming site is expanding the power of those Bits by allowing them to now be used with Twitch’s Extensions.
Extensions, launched in August 2017, let streamers customize their channel with add-ons like polls, leaderboards, tickers, game history and more. There are now more than 150 of these add-ons — some of which are mobile-friendly — and more than 2,000 developers signed up to create them.
Starting today, developers can customize their Extensions with interactive experiences they can charge for, using Bits. That is, viewers will be able to pay to take advantage of these new experiences, with a portion of the revenue being returned to the Extension’s developer.
At launch, Twitch says 80 percent of the revenue share associated with Bits in Extensions will go to the creator — as they’re the ones driving traffic to the Extension through their channel. The remaining 20 percent of the revenue will then go to the Extension developer.
Extensions with Bits will be available to every Twitch Affiliate and Partner with a Bits-enabled channel.
Several Extensions have already enabled Bits, Twitch says.
In Tilted Trivia by Sliver.tv, viewers can test their video game knowledge across a number of top titles, like Fortnite, League of Legends, Counter-Strike: Global Offensive, PlayerUnknown’s Battlegrounds, Overwatch, Grand Theft Auto V and Hearthstone.
OneView by Esports One will let viewers predict when things will happen in League of Legends; Bit Arcade will offer arcade classics that can be played while watching a game; Poll by iPowow lets viewers guide what the streamer does next; and Rock Paper Bits by Maestro lets streamers start an impromptu Rock Paper Scissors tournament.
Other Bits-enabled Extensions will include those offering a priority queue for joining a creator’s game, virtual throwable items, plus the ability to post on-screen messages, take part in special polls or trigger sound alerts, among other things.
Dozens of Extensions will be available from developers including Altoar, Casperr, CygnusCross, Daniil Kubatko, Doborog Games, Evolution Gaming, gnatbuoy, Hellcat, Inthegame, Martin Beierling, End Game, Meastoso, Mobalytics, MoneyMatches, Porcupine, Pretzel Tech, Purity Dev, Run It Up, Seravy, Stream Decker, Streamlabs, tallcode, tetsuo286, vAudience, VoidTeam Studios and Zippers & Henry Liao.
Twitch had promised at last year’s developer conference TwitchCon, that Extensions would soon be able to be monetized. But it’s taken a little longer to deliver than it had said.
Still, the addition is notable because it opens up another revenue stream for creators and developers alike, which could attract more game streamers to its site, thus boosting its own bottom line. Twitch’s revenue has been growing year-over-year, with payouts to Partners more than doubling in 2017. Cheering with Bits has also proved popular since its introduction, generating more than $12 million in its first 10 months.
The hope is that Bits for Extensions will now follow that same path.
“Our mission at Twitch is to help our community make a living on our service doing what they love, and that includes both content creators and developers,” said Jeffrey Chow, product manager of Extensions at Twitch, in a statement about the launch. “We built Extensions to best serve what Twitch is best known for: community interactions. By enabling revenue generation from Extensions, developers can make more of them, which ultimately opens up more interactive possibilities and monetization methods for content creators.”
Bits in Extensions are live now from the Extensions Manager dashboard, where they’ll be labeled with the “In-Extensions Bits” tag.
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A Midwestern university wants to recruit the nation’s best Fortnite players for its varsity esports team, and it’s throwing out the dough to bring on some quality talent.
Ashland University in Ohio will embrace the feverishly popular battle royale title into its competitive esports program, which it will officially launch this fall. Fortnite will join the team’s current competitive-title teams League of Legends, Overwatch, Counter-Strike: Global Offensive and Rocket League. Interested gamers can hit up this form to apply to the program.
“Fortnite appeals to both the core and casual gaming audience,” the school’s esports head coach Josh Buchanan said in a release. “We’re excited to provide this platform for gamers who want to showcase their skills in a more competitive space. Fortnite facilitates an environment that allows players to get creative, innovate and show off their mastery of their skills.”
Admission in the school’s undergraduate program with room and board on the Ashland campus goes for $31,284 full-price, so the $4,000 scholarship offers a nice incentive, but this is probably best for people who have other reasons to go to Ashland University in Ohio, as well.
The embrace the title has already received from the gaming community is pretty notable. It’s one of the most-streamed titles on gaming sites and there are millions of people playing concurrently.
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Capital Float, the fintech startup that says it is India’s largest online lender, announced today that it has raised $22 million in new funding from Amazon. At the end of last year, reports surfaced that Amazon was considering an investment in Capital Float as an extension of its $45 million Series C, which was announced last August. The Bangalore-based startup confirmed to TechCrunch that Amazon’s investment is indeed an extension of that round and brings the total equity it has raised over the past 12 months to $67 million.
Over the same period, Capital Float also raised $80 million of debt from banks and other financial companies, which it combines with its own balance sheet to finance loans to small businesses and other borrowers. Amazon India is among several e-commerce platforms that the company has partnered with to provide loans to sellers, including Snapdeal and Shopclues.
Since its inception in 2013 by co-founders Sashank Rishyasringa and Gaurav Hinduja, Capital Float has raised a total of about $110 million in equity funding from investors, including Ribbit Capital, SAIF Partners, Sequoia India, Creation Investments and Aspada, as well as total debt lines of $130 million.
During the last six months, Capital Float added 50,000 new customers, bringing its total customer base to more than 80,000 people in more than 300 cities. The startup says it currently disburses more than 10,000 loans each month and now has an outstanding loan portfolio of more than $170 million, with a default rate of about 2 percent. About 70 percent of its loans are microloans ranging from 25,000 rupees to 500,000 rupees (about $376 to $7,530).
With the investment from Amazon, the startup has set an ambitious goal of adding 300,000 new customers and originating more than $800 million in loans this year.
In a press statement, Amazon India’s country manager Amit Agarwal said, “We’re excited to work with Capital Float and invest alongside other investors. We are highly impressed with what Gaurav and Sashank have built and we back missionary entrepreneurs and management teams. Credit in India is highly under-penetrated and Capital Float is bringing the right kind of credit solutions to the underserved and informally served segments of SMEs to help realize their full potential.”
Over the last year, Capital Float expanded into more verticals, including products for small- to mid-sized manufacturers, point-of-sale financing for retailers and loans for school construction and self-employed professionals like doctors. It also added new online payment gateways to make it easier for borrowers to repay loans and began piloting deep learning-based underwriting models that use data points like image processing, geotags and new policies such as the Goods and Service Tax (GST), an indirect tax launched last year that is levied at every step of the production chain and the banknote demonetization started by Prime Minister Narendra Modi’s government in 2016.
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Heptio is one of the more interesting companies in the container ecosystem. In part, that’s due to the simple fact that it was founded by Craig McLuckie and Joe Beda, two of the three engineers behind the original Kubernetes project, but also because of the technology it’s developing and the large amount of funding it has raised to date.
As the company announced today, it saw its revenue grow 140 percent from the last quarter of 2017 to the first quarter of 2018. In addition, Heptio says its headcount quadrupled since the beginning of 2017. Without any actual numbers, that kind of data doesn’t mean all that much. It’s easy to achieve high-growth numbers if you’re starting out from zero, after all. But it looks like things are going well at the company and that the team is finding its place in the fast-growing Kubernetes ecosystem.
In addition to announcing these numbers, the team also today launched a new open-source project that will join the company’s existing stable of tools, like the cluster-recovery tool Ark and the Kubernetes cluster-monitoring tool Sonobuoy.
This new tool, Heptio Gimbal, has a very specific use case that is probably only of interest to a relatively small number of users — but for them, it’ll be a lifeline. Gimbal, which Heptio developed together with Yahoo Japan subsidiary Actapio, helps enterprises route traffic into both Kubernetes clusters and OpenStack deployments. Many enterprises now run these technologies in parallel, and while some are now moving beyond OpenStack and toward a more Kubernetes -centric architecture, they aren’t likely to do away with their OpenStack investments anytime soon.
“We approached Heptio to help us modernize our infrastructure with Kubernetes without ripping out legacy investments in OpenStack and other back-end systems,” said Norifumi Matsuya, CEO and president at Actapio. “Application delivery at scale is key to our business. We needed faster service discovery and canary deployment capability that provides instant rollback and performance measurement. Gimbal enables our developers to address these challenges, which at the macro-level helps them increase their productivity and optimize system performance.”
Gimbal uses many of Heptio’s existing open-source tools, as well as the Envoy proxy, which is part of the Cloud Native Computing Foundation’s stable of cloud-native projects. For now, Gimbal only supports one specific OpenStack release (the “Mitaka” release from 2016), but the team is looking at adding support for VMware and EC2 in the future.
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The first thing to understand about media-sharing app Rapchat is that co-founder Seth Miller is not a rapper and his other co-founder, Pat Gibson, is. Together they created Rapchat, a service for making and sharing raps, and the conjunction of rapper and nerd seems to be really taking off.
Since we last looked at the app in 2016 (you can see Tito’s review below), a lot has changed. The team has raised $1.6 million in funding from investors out of Oakland and the Midwest. Their app, which is sort of a musical.ly for rap, is a top 50 music app on iOS and Android and hit 100 million listens since launch. In short, their little social network/sharing platform is a “millionaire in the making, boss of [its] team, bringin home the bacon.”
The pair’s rap bona fides are genuine. Gibson has opened or performed with Big Sean, Wiz Khalifa and Machine Gun Kelly, and he’s sold beats to MTV. “My music has garnered over 20M+ plays across YouTube, SoundCloud and more,” he wrote me, boasting in the semi-churlish manner of a rapper with a “beef.” Miller, on the other hand, likes to freestyle.
“I grew up loving to freestyle with friends at OU and I noticed lots of other millennials did this too (even if most suck lol) … at any party at 3am – there would always be a group of people in the corner freestyling,” he said. “At the same time Snapchat was blowing up on campus and just thought you should be able to do the same exact thing for rap.”
Gibson, on the other hand, saw it as a serious tool to help him with his music.
“I spent a lot of time, energy and resources making music,” he said. “I was producing the beats, writing the songs, recording/mixing the vocals, mastering the project, then distributing & promoting the music all by myself. With Rapchat, there’s a library of 1,000+ beats from top producers, an instant recording studio in your pocket, and the network to distribute your music worldwide and be discovered…. all from a free app. Rapchat is disrupting the creation, collaboration, distribution, & discovery of music via mobile.”
“We have a much bigger but also more active community than any other music creation app,” said Miller.
While it’s clear the world needs another sharing platform like it needs a hole in the head, thanks to a rabid fan base and a great idea, the team has ensured that Rapchat is not, as they say, wicka-wicka-whack. That, in the end, is all that matters.
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Pivotal has kind of a strange role for a company. On one hand its part of the EMC federation companies that Dell acquired in 2016 for a cool $67 billion, but it’s also an independently operated entity within that broader Dell family of companies — and that has to be a fine line to walk.
Whatever the challenges, the company went public yesterday and joined VMware as a separately traded company within Dell. CEO Rob Mee says the company took the step of IPOing because it wanted additional capital.
“I think we can definitely use the capital to invest in marketing and R&D. The wider technology ecosystem is moving quickly. It does take additional investment to keep up,” Mee told TechCrunch just a few hours after his company rang the bell at the New York Stock Exchange.
As for that relationship of being a Dell company, he said that Michael Dell let him know early on after the EMC acquisition that he understood the company’s position. “From the time Dell acquired EMC, Michael was clear with me: You run the company. I’m just here to help. Dell is our largest shareholder, but we run independently. There have been opportunities to test that [since the acquisition] and it has held true,” Mee said.
Mee says that independence is essential because Pivotal has to remain technology-agnostic and it can’t favor Dell products and services over that mission. “It’s necessary because our core product is a cloud-agnostic platform. Our core value proposition is independence from any provider — and Dell and VMware are infrastructure providers,” he said.
That said, Mee also can play both sides because he can build products and services that do align with Dell and VMware offerings. “Certainly the companies inside the Dell family are customers of ours. Michael Dell has encouraged the IT group to adopt our methods and they are doing so,” he said. They have also started working more closely with VMware, announcing a container partnership last year.
Photo: Ron Miller
Overall though he sees his company’s mission in much broader terms, doing nothing less than helping the world’s largest companies transform their organizations. “Our mission is to transform how the world builds software. We are focused on the largest organizations in the world. What is a tailwind for us is that the reality is these large companies are at a tipping point of adopting how they digitize and develop software for strategic advantage,” Mee said.
The stock closed up 5 percent last night, but Mee says this isn’t about a single day. “We do very much focus on the long term. We have been executing to a quarterly cadence and have behaved like a public company inside Pivotal [even before the IPO]. We know how to do that while keeping an eye on the long term,” he said.
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While most people probably would not think of New York as a hotbed for enterprise startups of any kind, it is actually quite active. When you stop to consider that the world’s biggest banks and financial services companies are located there, it would certainly make sense for security startups to concentrate on such a huge potential market — and it turns out, that’s the case.
According to Crunchbase, there are dozens of security startups based in the city with everything from biometrics and messaging security to identity, security scoring and graph-based analysis tools. Some established companies like Symphony, which was originally launched in the city (although it is now on the west coast), has raised almost $300 million. It was actually formed by a consortium of the world’s biggest financial services companies back in 2014 to create a secure unified messaging platform.
There is a reason such a broad-based ecosystem is based in a single place. The companies who want to discuss these kinds of solutions aren’t based in Silicon Valley. This isn’t typically a case of startups selling to other startups. It’s startups who have been established in New York because that’s where their primary customers are most likely to be.
In this article, we are looking at a few promising early-stage security startups based in Manhattan
Hypr is looking at decentralizing identity with the goal of making it much more difficult to steal credentials. As company co-founder and CEO George Avetisov puts it, the idea is to get rid of that credentials honeypot sitting on the servers at most large organizations, and moving the identity processing to the device.
Hypr lets organizations remove stored credentials from the logon process. Photo: Hypr
“The goal of these companies in moving to decentralized authentication is to isolate account breaches to one person,” Avetisov explained. When you get rid of that centralized store, and move identity to the devices, you no longer have to worry about an Equifax scenario because the only thing hackers can get is the credentials on a single device — and that’s not typically worth the time and effort.
At its core, Hypr is an SDK. Developers can tap into the technology in their mobile app or website to force the authorization to the device. This could be using the fingerprint sensor on a phone or a security key like a Yubikey. Secondary authentication could include taking a picture. Over time, customers can delete the centralized storage as they shift to the Hypr method.
The company has raised $15 million and has 35 employees based in New York City.
Uplevel’s founder Liz Maida began her career at Akamai where she learned about the value of large data sets and correlating that data to events to help customers understand what was going on behind the scenes. She took those lessons with her when she launched Uplevel Security in 2014. She had a vision of using a graph database to help analysts with differing skill sets understand the underlying connections between events.
“Let’s build a system that allows for correlation between machine intelligence and human intelligence,” she said. If the analyst agrees or disagrees, that information gets fed back into the graph, and the system learns over time the security events that most concern a given organization.
“What is exciting about [our approach] is you get a new alert and build a mini graph, then merge that into the historical data, and based on the network topology, you can start to decide if it’s malicious or not,” she said.
Photo: Uplevel
The company hopes that by providing a graphical view of the security data, it can help all levels of security analysts figure out the nature of the problem, select a proper course of action, and further build the understanding and connections for future similar events.
Maida said they took their time creating all aspects of the product, making the front end attractive, the underlying graph database and machine learning algorithms as useful as possible and allowing companies to get up and running quickly. Making it “self serve” was a priority, partly because they wanted customers digging in quickly and partly with only 10 people, they didn’t have the staff to do a lot of hand holding.
The founders of Security Scorecard met while working at the NYC ecommerce site, Gilt. For a time ecommerce and adtech ruled the startup scene in New York, but in recent times enterprise startups have really started to come on. Part of the reason for that is many people started at these foundational startups and when they started their own companies, they were looking to solve the kinds of enterprise problems they had encountered along the way. In the case of Security Scorecard, it was how could a CISO reasonably measure how secure a company they were buying services from was.
Photo: Security Scorecard
“Companies were doing business with third-party partners. If one of those companies gets hacked, you lose. How do you vett the security of companies you do business with” company co-founder and CEO Aleksandr Yampolskiy asked when they were forming the company.
They created a scoring system based on publicly available information, which wouldn’t require the companies being evaluated to participate. Armed with this data, they could apply a letter grade from A-F. As a former CISO at Gilt, it was certainly a paint point he felt personally. They knew some companies did undertake serious vetting, but it was usually via a questionnaire.
Security Scorecard was offering a way to capture security signals in an automated way and see at a glance just how well their vendors were doing. It doesn’t stop with the simple letter grade though, allowing you to dig into the company’s strengths and weaknesses and see how they compare to other companies in their peer groups and how they have performed over time.
It also gives customers the ability to see how they compare to peers in their own industry and use the number to brag about their security position or conversely, they could use it to ask for more budget to improve it.
The company launched in 2013 and has raised over $62 million, according to Crunchbase. Today, they have 130 employees and 400 enterprise customers.
If you’re an enterprise security startup, you need to be where the biggest companies in the world do business. That’s in New York City, and that’s precisely why these three companies, and dozens of others have chosen to call it home.
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When you think about critical infrastructure, DNS or domain naming services might not pop into your head, but what is more important than making sure your website opens quickly and efficiently for your users. NS1 is a New York City startup trying to bring software smarts and automation to the DNS space.
“We’re a DNS and [Internet] traffic management technology company. We sit in a critical path. Companies point domains at our platforms,” company CEO and co-founder Kris Beevers told TechCrunch. That means when you type in the domain name like Google.com, you go to Google and you go there fast. It’s basic internet plumbing, but it’s essential.
Beevers cut his teeth as head of engineering at Voxel, a cloud infrastructure company that was acquired by Internap in 2012 for $35 million. He and his NS1 co-founders saw an opening in the DNS space and launched the company in 2013 with a set of software-defined DNS services. The startup was able to take advantage of the New York startup ecosystem early on to drive some business, even before they went looking for funding, but one incident really helped put the company on the map and effectively double its business.
That event occurred in almost exactly two years ago in 2016. One of NS1’s primary competitors, Dyn, a New Hampshire-based DNS company was the victim of a massive DDoS attack that took down the service for hours. When critical infrastructure like your domain name server goes away, you see the consequences pretty starkly and suddenly customers realized they didn’t just need this service, they needed redundancy in case the primary service went down — and with that attack, NS1’s business effectively doubled overnight.
Suddenly everyone who owned one, needed another for redundancy. One competitor’s misfortune turned out to be highly beneficial for NS1, who turned out to be in the right place at the right time with the right solution. Dyn was actually acquired by Oracle later that year.
“DNS had been around since 1983. The first 20 years were very boring with no commercial ecosystem,” Beevers said. Even when it went commercial in the early 2000s, nobody was looking at this as a software problem. “We saw everyone in this space was a hardware or networking vendor. Nobody was a software company. Nobody had thought about automation or how automation fit into the stack. And nobody saw the big infrastructure trends,” Beevers explained.
They got their start in the adtech startup space that was booming in NYC when they launched in 2013. These companies were willing to take a chance with an unknown startup, partly because they were looking for any edge they could get, and partly because they knew Beevers from his days at Voxall so he wasn’t a completely unknown quantity.
“Our ability around dynamic traffic management and performance reliability gave those ad companies [an advantage].They were able to take a chance on us. If we have a bad day, a customer can’t operate. We had limited infrastructure. They placed a bet on us because of the [positive] impact we had on their business.”
Today the company is growing fast, has raised close to $50 million and has close to 100 employees. While the bulk of those folks are in NYC, they have also opened offices in San Francisco, Londonderry, NH, the UK and Singapore.
Beevers says the Dyn incident in many ways brought the industry closer together. While they compete, they still need to cooperate to keep the domain system up and running. “We compete and are comrades in the internet mess. We will all fall apart if we don’t work together,” he said. As it turned out, being part of the whole New York infrastructure community didn’t hurt either.
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Every startup needs a little skill and a little luck. BigID, a NYC-based data governance solution has been blessed with both. The company, which helps customers identify sensitive data in big data stores, launched at just about the same time that the EU announced the GDPR data privacy regulations. Today, the company is having trouble keeping up with the business.
While you can’t discount that timing element, you have to have a product that actually solves a problem and BigID appears to meet that criteria. “This how the market is changing by having and demanding more technology-based controls over how data is being used,” company CEO and co-founder Dimitri Sirota told TechCrunch.
Sirota’s company enables customers to identify the most sensitive data from among vast stores of data. In fact, he says some customers have hundreds of millions of users, but their unique advantage is having built the solution more recently. That provides a modern architecture that can scale to meet these big data requirements, while identifying the data that requires your attention in a way that legacy systems just aren’t prepared to do.
“When we first started talking about this [in 2016] people didn’t grok it. They didn’t understand why you would need a privacy-centric approach. Even after 2016 when GDPR passed, most people didn’t see this. [Today] we are seeing a secular change. The assets they collect are valuable, but also incredibly toxic,” he said. It is the responsibility of the data owner to identify and protect the personal data under their purview under the GDPR rules, and that creates a data double-edged sword because you don’t want to be fined for failing to comply.
GDPR is a set of data privacy regulations that are set to take effect in the European Union at the end of May. Companies have to comply with these rules or could face stiff fines. The thing is GDPR could be just the beginning. The company is seeing similar data privacy regulations in Canada, Australia, China and Japan. Something akin go this could also be coming to the United States after Facebook CEO, Mark Zuckerberg appeared before Congress earlier this month. At the very least we could see state-level privacy laws in the US, Sirota said.
Sirota says there are challenges getting funded as a NYC startup because there hadn’t been a strong big enterprise ecosystem in place until recently, but that’s changing. “Starting an enterprise company in New York is challenging. Ed Sim from Boldstart [A New York City early stage VC firm that invests in enterprise startups] has helped educate through investment and partnerships. More challenging, but it’s reaching a new level now,” he said.
The company launched in 2016 and has raised $16.1 million to date. It scored the bulk of that in a $14 million round at the end of January. Just this week at the RSAC Sandbox competition at the RSA Conference in San Francisco, BigID was named the Most Innovative Startup in a big recognition of the work they are doing around GDPR.
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