Nov
22

Best of Bootstrapping: From a Small Town to $12 Million - Sramana Mitra

Hot on the heels of raising $114 million in Series D funding, Raisin, the pan-European fintech marketplace for savings and investment products, has acquired MHB Bank of Frankfurt, its main provider of banking services in Germany. Terms of the acquisition remain undisclosed and the deal is still subject to regulatory approval. However, the move signals a stepping on the gas for Raisin’s geographical and product expansion ambitions.

In a call, Raisin CEO and founder Tamaz Georgadze explained that MHB Bank provides Raisin’s banking services in Germany, the fintech’s largest market. This sees the bank provide Raisin with account management and customer identification, as well as powering transactions — services that require an underlying bank license.

By purchasing MHB Bank, Raisin can bring a key part of its infrastructure in-house and also utilise the full bank license to “passport” its various financial services, including its deposits marketplace and ETF-based investment product, to other European Economic Area (EEA) countries, faster.

Georgadze says that not having a banking license has been a bottleneck to Raisin launching in more countries across Europe. Although available to customers across the EU from the get-go, Raisin has dedicated local market offerings in the Netherlands, U.K. and, of course, Germany.

In addition, Georgadze says the acquisition will enable Raisin to streamline the on-boarding process for deposit banks as well as distribution partnerships, such as the ones it has with O2 Banking of Telefónica Germany and challenger bank N26.

“With the changes this takeover makes possible, we will be able to offer better services more sustainably to our customers and partners,” says Georgadze. “We want to grow ‘deposits as a service’ into a widely accepted market standard for banks across Europe.” As part of this, Raisin will invest heavily in the underlying technology powering MHB Bank’s banking service, which should also benefit the bank’s other customers, which includes CreditShelf and Exporo.

Originally founded in 2013, Raisin set out to open up the savings deposit market in Europe by taking advantage of EU-wide banking regulation, which goes some way to creating a financial services single market. Specifically, the problem the startup solves is that saving deposit rates differ not only from one local bank offer to another but more noticeably across Europe as a whole.

The Raisin marketplace lets you shop around and compare different rates European-wide. However, the key difference to a comparison site is that, via its own bank partner, the company offers consumers a single interface that includes account opening and anti-money laundering checks, making it easy to switch and continually ensure you get a competitive interest rate.

For the banks that integrate with the Raisin marketplace, especially smaller and midsize banks, including challengers, they get exposure to customers across Europe that might otherwise never be reached. It also gives them potential access to many more deposits, which helps with their own balance sheet lending and scale.

Notably — and relevant to the announced acquisition of MHB Bank — Georgadze tells me Raisin intends to continue using Starling Bank in the U.K. for its banking services, especially in light of Brexit. MHB Bank will be used to service Raisin accounts in Germany and elsewhere in the EAA.

Meanwhile, Raisin is disclosing that it currently has more than 165,000 customers, who can choose from more than 250 products offered by nearly 70 European banks. These are accessible via the fintech’s seven “platforms,” including via Raisin’s direct-to-consumer sites and within the offerings of its distribution partners. The fintech’s investors include Index Ventures, PayPal, Ribbit Capital and Thrive Capital.

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Feb
23

Tesla wants to install chargers at the office

Tesla unveiled a next-generation Supercharger that it says will recharge its vehicles faster than ever.

The new V3 unit can charge at a maximum rate of 250kW, according to a press release posted on Tesla's website Wednesday night.

The V3 charger was designed with the Tesla Model 3 sedan in mind. Its newer battery composition can accommodate the newer charger right away, while Model S and Model X vehicles will remain limited to 120kW charging for the time being, The Verge reported. A planned software update will raise that cap to 145kW, Tesla said.

According to Tesla, the new V3 chargers can add up to 75 miles of range to a Model 3 Long Range sedan in just five minutes.

"Combined with other improvements we're announcing today, V3 Supercharging will ultimately cut the amount of time customers spend charging by an average of 50%, as modeled on our fleet data," Tesla said in its statement Wednesday night.

Read more: 2019 was supposed to be easy for Tesla, but now it's a circus

The electric-car company has been keenly focused on developing its charging infrastructure — an effort that's been kicked into high gear since the Model 3 sedan, its first mass-market vehicle, went on sale.

Echoing its previous remarks on the matter, the company said "charging needs to be even faster, and the number of vehicles able to charge at a location in a day needs to be significantly higher."

To that end, Tesla says its new V3 chargers will also be able to charge vehicles at optimal rates, even at Supercharger stations where multiple vehicles are charging at once.

"With thousands of new Superchargers coming online in 2019, the launch of V3, and other changes we're making to improve throughput, the Supercharger network will be able to serve more than 2x more vehicles per day at the end of 2019 compared with today," Tesla said.

Original author: Bryan Logan

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Jul
15

Thought Leaders in Cloud Computing: Fred Voccola, CEO of Kaseya (Part 7) - Sramana Mitra

Tax season is upon us with some people getting a break from the Republicans' new tax reforms, others paying more and corporations paying at a much lower base rate.

Former President Barack Obama says he knows how painful a big tax bill can be. But he's also learned to have appreciation for what his taxes do thanks to a career in politics and eight years as President No. 44. Lately he's been talking to companies trying to get them to understand this point of view on taxes. So he told a crowd of 11,000 people speaking at the Qualtrics tech conference in Salt Lake City, Utah on Wednesday.

Read: Obama warns that if the world isn't careful, democracy could be in danger: 'Democracy is a garden that has to be tended'

"I always used to laugh when people would say about my tax policies, oh, he just wants to tax you to death. First of all, I'm the guy who pays the max tax," Obama told the crowd.

That's because, since the early 1970's, presidents and presidential hopefuls have routinely released their tax returns for public scrutiny. (Donald Trump is an exception. He has not shared his tax returns.)

"Everybody's looking at my taxes so I could never take a deduction. I couldn't exercise any loopholes. Whatever the maximum rate is, I'm paying," he said.

Barack Obama (left) with Qualtrics CEO Ryan Smith Qualtrics Now that he's a private citizen again, he doesn't share his tax returns. But in 2015, the last year he released them, he paid over $81,000 in taxes on nearly 448,000 in income.

"I don't enjoy writing big checks to the Treasury Department any more than you do. But I have been so blessed by this country," he said.

"For me to be able to pay my fair share of sustaining this amazing nation so kids coming up behind me are going to have the same opportunities that I do, is something that I insist upon," he said.

He said his attitude toward paying taxes can be summed up from a quote by Olive Wendell Holmes, former Chief Justice of the Supreme Court in the early 1900's, who said, "Taxes are the price we pay for a civilized society."

Read: Bill Gates says he's paid $10 billion in taxes and he thinks rich people like himself should pay more

While everyone wants great government services, no one wants to pay for it, he lamented and this attitude has real-world impacts.

"Teachers are so grossly underpaid in this country," he said. "If you live in San Francisco on a teacher's salary, you literally have no place to live. And part of that is we don't want to pay enough taxes to make sure those teachers can support their families."

He'd particularly like to see businesses change their point of view. Thanks to the wide variety of tax breaks in the tax code, some of the richest corporations in the land pay the lowest effective tax rates. Amazon, for instance, is said to have paid little to no federal taxes for years.

Companies used to feel that being good to their communities was good for their business because everyone lived in the areas where they worked. But companies are global today and are under pressure from shareholders to exploit every loophole and to offshore their cash, Obama said.

"This is something we have to have a public conversation on," he said because everyone depends on taxes to pay for schools, mend our interstate roads and so on. And "I love to pay high taxes," said no one, ever, not even Obama when he pays his.

Original author: Julie Bort

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Mar
07

Obama warns that if the world isn't careful, democracy could be in danger: 'Democracy is a garden that has to be tended'

Former US President Barack Obama considers himself a diehard optimist but he couldn't help but vent some frustrations over the current political climate when he spoke to a crowd of 11,000 on Wednesday at a tech conference put on by Qualtrics, a software company in Salt Lake City, Utah.

Obama never mentioned the Trump Administration by name but he occasionally expressed his disapproval through quips and jokes.

"I like the rule of law, democracy, competency and facts. Those things aren't partisan but they also don't happen automatically," Obama warned in a rare moment of seriousness. "Democracy is a garden that has to be tended."

When asked by his interviewer, Qualtrics CEO Ryan Smith, about leadership during difficult times, Obama threw another gentle jab: "I'm old fashioned and believe in values like facts and reason and logic," which got a big cheer from the crowd.

He said there are several keys to good leadership and, doubling down on his theme of competency, he said one of the big ones was hiring.

When running a large and complicated organization, leaders need to surround themselves with people who are more knowledgeable than themselves, he said.

On top of that, good leaders then have to actually listen to those experts. "Have confidence that you can understand what they are saying and if not, you'll keep on asking questions until you do," he said.

Sometimes the people who rise to become the big boss "start feeling, 'I have every answer.' When in fact, most of the time you have not," he warned.

Barack Obama (left) with Qualtrics CEO Ryan Smith Qualtrics He told the story of what it was like for him during the Deep Water Horizon oil spill crises in the spring of 2010.

An oil drilling rig owned by British Petroleum and built by Halliburton exploded in such a way, and in such deep water, that engineers from those companies could not easily fix it. Oil flowed for 87 days, dumping massive amounts of oil into the Gulf of Mexico.

Obama described it on Wednesday as "the largest environmental crisis to happen in our lifetimes, in terms of an oil spill."

"Fortunately I had recruited as my Secretary of Energy Steven Chu, who was a Nobel Prize winning physicist," he said.

As the weeks went by, his daughters started asking him about it, concerned about the people and wildlife being harmed. They asked him, "Daddy when are you going to shut down the hole?" he said and then laughed. "Now I"m feeling bad because my daughters think I'm not handling this well."

About three weeks into the crises Chu came in with a sketch on a napkin. "It looked like a little hat. There were some numbers next to it." They sent it off to BP who fleshed out the idea and it worked. The engineers capped the oil spill with a literal cap.

"My role as the leader in the organization was not to come up with the little hat because I wouldn't have thought of that. I would have thought, 'that doesn't look complicated enough to stop this hole in the ground,'" he joked.

"My job was to have Steven Chu there, who has a Nobel Prize in physics and that's who should be in charge of the Department of Energy."

The audience gave Obama another big round of applause in response. (The current Secretary of Energy is former Texas governor Rick Perry.)

The upside for Obama as a leader who hired such experts is that it "gave me a lot of confidence. I had confidence in the talent I had around me."

He said it's not just about someone's resume either. Motivations also play a role.

"I was good at making sure the people working with me were there for the right reasons, that there was a core integrity to what they were doing," he said. He wanted people who believed in the mission of using government to support citizens and solve problems.

Everyone from his volunteers to staff members to campaign donors were clear on that, he said. "This is not about us, you or me, it's not about you getting an appointment or a contract or a position, it's about the mission," he said. "So by the time we got to the White House, we had weeded out the mercenaries."

That set up the culture and "it also means you don't have big scandals and indictments. That's a bonus," he joked to another round of applause. Although it was only a passing reference, he was clearing referring to the growing list of people involved in Donald Trump's presidential campaign to be indicted, charged or to have pleaded guilty of crimes.

Original author: Julie Bort

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Mar
06

President Trump just referred to Apple's CEO as 'Tim Apple' (AAPL)

There's Michael Dell, Adolph Coors, and Tim Apple.

Well, almost.

President Donald Trump seems to have gotten a bit confused about the name of Apple's CEO on Wednesday.

During a meeting with the Apple CEO and other members of his American Workforce Policy Advisory Board, Trump referred to Tim Cook as "Tim Apple" while praising him for investing in the US.

"We appreciate it very much, Tim Apple," Trump said.

You can watch the gaffe in the video clip embedded in this tweet:

Here's a longer version of Trump's remarks (emphasis added):

"We're going to open up the labor forces because we have to. We have so many companies coming in people like Tim, you're expanding all over and doing things that I really wanted you to right from the beginning.

"I used to say, 'Tim you've got to start doing it over here.' And you really have.

"I mean you've really put a big investment in our country, we appreciate it very much, Tim Apple. But we're opening it up. We have to bring people in. We want them to be people based on merit. And we want them to come in legally."

It's possible that the apparent gaffe could actually be a case of awkward phrasing. Under this interpretation, Trump may have intended the words "Tim" and "Apple" to be separated by a comma, such that his comments were meant to express gratitude to both Tim Cook and Apple, in sequence.

Still, this wouldn't be the first time Trump has gotten confused about an executive's name. Last March, he flubbed the name of Lockheed Martin CEO Marillyn Hewson, referring to her as "Marillyn Lockheed."

Read more: Trump flubbed the name of Lockheed Martin's CEO, calling her 'Marillyn Lockheed'

And of course, Trump is a longtime enthusiast of turning people's names into taunts, as he did in a January tweet referring to Amazon's Jeff Bezos as "Jeff Bozo."

Cook used his time at the meeting to tout the importance of learning how to code software and Apple's efforts to help train students and other people on how to do that.

"We believe strongly that it should be a requirement in the United States for every kid to have coding before they graduate from K-12 and become somewhat proficient at it," Cook said.

Cook has had a mixed relationship with the White House, participating in other meetings with Trump but also criticizing the president's immigration policies.

Original author: Troy Wolverton

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Jul
15

The crypto boom has faded but this charting company is still basking in its glow

At age 87, Japanese architect Arata Isozaki has left an indelible imprint on the world's cities.

His recognizable designs include a 700-foot skyscraper in Milan, a contemporary art museum in Los Angeles, and an Olympic sports venue in Barcelona. The buildings span continents, genres, and time periods.

Now, that work has earned Isozaki the highest honor in his field: the 2019 Pritzker Architecture Prize.

Isozaki was awarded the prize on March 5 for buildings that, in the words of the jury, "are constantly evolving, and always fresh in their approach."

Read more: 30 architectural masterpieces everyone should see in their lifetime

Take a look at some of the most remarkable structures from his decades-long career.

Original author: Aria Bendix

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Feb
22

Robinhood rolls out zero-fee crypto trading as it hits 4M users

Three miles from Seattle’s South Lake Union neighborhood — better known as Amazonia to locals — sits Pioneer Square. The original heart of the city, the area has managed to hold on to its decades-old charm as other parts of town are besieged by Amazon-contracted architects.

On a mission to champion Seattle’s unique entrepreneurial DNA, startup studio Pioneer Square Labs has not only adopted the neighborhood’s moniker but established its fast-growing HQ at its center.

Pioneer Square Labs, or PSL, cropped up in 2015 to create, launch and fund technology companies headquartered in the Pacific Northwest. Operating under the startup studio model, PSL’s team of former founders and venture capitalists, including Rover and Mighty AI founder Greg Gottesman, collaborate to craft and incubate startup ideas, then recruit a founding CEO from their network of entrepreneurs to lead the business. The team uses an innovative method of rapidly ideating, testing and, if necessary, scrapping ideas, dubbed its “validation engine.”

The model differs from an accelerator or incubator. Y Combinator, for example, admits existing business into its months-long program, deploying its expertise and capital to bolster early-stage startups. PSL, on the other hand, creates startups and provides would-be founders with a derisked platform for company building.

“It’s a dream job,” PSL co-founder Greg Gottesman told TechCrunch. “If someone would say to you ‘hey, you can come into work every day, think about all the problems that are interesting to solve, all the tech that’s available and you have the resources to build companies,’ that’s just a dream come true … It’s just been a very fun ride.”

Xiao Wang, the CEO of Pioneer Square Labs spin-out Boundless, pitching at TechCrunch Disrupt SF 2017

The startup studio model is working for PSL. To date, it has raised $27.5 million in equity funding to build out its platform, in addition to an $80 million fundraise for its debut venture fund, which invests in PSL companies and other Pacific Northwest businesses. Of the 13 companies to emerge from PSL in the last three years, all have raised follow-on rounds from venture capital firms at an aggregate valuation of $200 million. According to PitchBook, PSL companies comprised 14.3 percent of all early-stage VC deals in Washington state in 2018.

Among PSL’s portfolio companies are cloud security compliance platform Shujinko, which closed a $2.8 million seed round from Unusual Ventures, Defy Ventures, Vulcan Capital and more last year. Plus, Boundless, a platform that facilitates the process of applying for immigrant status in the U.S., and Tally, a sports-prediction app spearheaded by football star Russell Wilson. Other recent spin-outs include Remarkably, a marketing and analytics software provider, and Attunely, a debt-collection-tech platform.

Meet the team

Pioneer Square Labs’ growing team of former operators, VCs, data scientists, engineers and more

Greg Gottesman, a former managing director at Seattle VC fund Madrona Venture Group, and the founder of its startup studio Madrona Venture Labs, leads PSL alongside a team of seasoned Pacific Northwest investors and entrepreneurs.

Rounding out PSL’s team of managing directors is Julie Sandler, a former investor at Madrona; Geoff Entress, a former venture partner with Voyager Capital and Madrona; Mike Galgon, the founder of the Microsoft-acquired digital agency aQuantive; and T.A. McCann, a serial entrepreneur behind Google-acquired Senosis and BlackBerry-acquired Gist. Benjamin Gilbert, who runs product at PSL, is another Madrona alum.

After nearly two decades investing in early-stage startups at Madrona, Gottesman made a peaceful exit with ambitions to launch a scalable startup studio independent of any existing VC firm. Madrona, alongside an additional 13 venture firms and Seattle angel investors, like Jeff Bezos and Zillow -founder Rich Barton, bolstered PSL with seed capital right off the bat.

The validation engine

Pioneer Square Labs’ network of entrepreneurs

To differentiate itself from competing company builders and maintain a high level of efficiency, PSL uses a proprietary strategy of rapidly testing and validating business ideas dubbed its “validation engine.” Its special sauce, PSL leverages digital marketing to validate customer demand before they begin real work on any of their ideas.

Long-time marketer Peter Denton leads the effort. Denton, who joined PSL in early 2017, manages day-to-day market validation, growth strategies and market research for the firm’s portfolio companies.

“We joke in some ways [Denton] is the grim reaper,” PSL’s Ben Gilbert told TechCrunch. “He’s responsible for much more kills than anyone else.”

Among the validation engine’s strategies is to build a website for a “company” to test demand for a potential product. Denton and his team market the website to target customer segments through a variety of digital channels, then measure customer resonance with the messaging. They ask potential customers if they are interested in learning more about a new concept or product when it “becomes available” to help understand how much interest a potential business might have before PSL allocates additional time and resources to a project.

To date, PSL has killed more than 100 ideas.

“A lot of studios ultimately won’t be successful because they don’t kill things fast enough,” Gottesman explained. “We kill nine out of 10 of the companies we start. Most of our ideas don’t make it to the promised land.”

In a sense, they are catfishing potential customers, luring them in with a new idea that more than likely will never come to fruition. But the strategy saves PSL the heartache that comes with investing a lot of time into a business idea that never finds its market.

This way, when an idea does pass the tests posed by the validation engine, PSL and its team of engineers and data scientists are ready to build with knowledge of market demand in tow.

By the numbers

A glimpse of Seattle’s Pioneer Square neighborhood where Pioneer Square Labs is headquartered

In three years, PSL has spun-out 13 companies, ideas for six of which came from the PSL team and seven originated from founders in the PSL network. All of those companies have secured venture funding — $71 million in total for an aggregate valuation of $200 million.

“The most important lesson we learned is it’s all about the people and the talent,” Gottesman said. “If we have an A-plus idea and partner with a B team, the company isn’t going to be successful. On the other hand, if we partner with the best talent, we are likely to be successful even if we fail on other dimensions.”

PSL’s goal is to invigorate the Seattle tech ecosystem and given the aforementioned stats (PSL companies comprised 14.3 percent of all early-stage VC deals in Washington state in 2018) they are well on their way. In 2019, PSL hopes to spin out between six and nine additional businesses.

“We believe we are building the center for early-stage tech innovation in the Pacific Northwest,” PSL’s Julie Sandler told TechCrunch.

Seattle, home to two of the most valuable businesses in the world, has not created as many founders as anticipated. Amazon’s entrepreneurial culture has succeeded in keeping top talent from pursuing their own businesses. PSL’s derisked platform, the firm hopes, will entice those founders, like Boundless CEO Xiao Wang, a former senior product manager at Amazon.

“The studio model lends itself really well to people who are 99 percent there, thinking ‘damn, I want to start a company,'” Gilbert said. “These are people that are incredible entrepreneurs but if not for the studio as a catalyst, they may not have [left].”

Venture capital investment in Washington state is increasing year-over-year, reaching a high of nearly $3 billion in 2018 across roughly 400 deals, per PitchBook. The Seattle tech scene, given its proximity to tech heavyweights and a growing number of satellite engineering offices, only has room to grow.

“We do think Seattle is the most exciting market in the country because of the amount of technical talent you have,” Gottesman said. “You have to believe that if engineering is at the heart of these startups then Seattle will ultimately be a key city in the world in terms of creating great technology startups.”

“We think part of the issue is a lack of capital and a lack of help,” Gottesman added. “If we can provide a little bit of both of those things, we can really put Seattle where it deserves to be, should be and will be.”

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Nov
25

Report: Cybersecurity recruitment, training misses the mark

A new study from the Georgia Institute of Technology suggests autonomous driving systems may have more difficulty detecting pedestrians with dark skin than those with light skin.

The researchers responsible for the study had eight image-detection systems analyze images of pedestrians. The people in the photos were separated into two groups based on how their skin tones aligned with the Fitzpatrick skin type scale, which divides skin tones into six categories. One group consisted of pedestrians who fell into one of the three lightest categories on the Fitzpatrick scale, while the other group consisted of pedestrians who fell into one of the three darkest categories on the Fitzpatrick scale.

Read more: How dummy pedestrians help test car safety systems

The image-detection systems then attempted to identify all of the pedestrians in the images, and the researchers compared the systems' abilities to detect light-skinned pedestrians versus dark-skinned pedestrians. On average, the image-detection systems were 5% less accurate at detecting dark-skinned pedestrians, even when the researchers controlled for variables that may have been able to explain the disparity, like pedestrians who were partially blocked from view or the time of day the photo was taken.

The researchers suggested that the differences in pedestrian-detection accuracy could result from not having enough dark-skinned pedestrians in the images used to train the systems, as well as the systems' insufficient emphasis on learning from the smaller population of dark-skinned pedestrians.

While Vox notes that the study has not been peer-reviewed and did not use the same image-detection systems or image sets featured in current self-driving vehicles, the study suggests that companies developing autonomous-driving technology should be attentive to the methods they use to train vehicles to identify pedestrians.

Original author: Mark Matousek

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Mar
06

Mark Zuckerberg says that Facebook is refocusing itself around privacy. People on the internet say they're not so sure. (FB)

On Tuesday, Mark Zuckerberg published a long Facebook post explaining his intentions to make the social network more "privacy-focused."

To do so, Zuckerberg said Facebook would begin by making messages encrypted by default, and automatically deleting them after a period of time. No definite timeline was provided, as the chief exec said these changes would come "over the next few years."

The announcement is a major change in direction for a company that's mission statement as recently as 2017 was to "make the world more open and connected." And given Facebook's history of security and privacy blunders — including, but not limited to, the Cambridge Analytica scandal — many people expressed their skepticism.

Here are some of the top reactions to Facebook's proposed new focus on privacy:

There was some praise for Zuckerberg's statement on Tuesday.

But given the company's history of security issues, Zuckerberg's comments were met with plenty of skepticism.

Some pointed to the difficulties that encryption introduces.

Others wondered how a more private social network would be feasible from a business perspective, given Facebook's revenues depend almost entirely on ads displayed in the News Feed.

Many were left to question the timing of it all.

Got a tip? Contact this reporter via Signal or WhatsApp at +1 (209) 730-3387 using a non-work phone, email atThis email address is being protected from spambots. You need JavaScript enabled to view it., Telegram at nickbastone, or Twitter DM at@nickbastone.

Original author: Nick Bastone

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Mar
06

Facebook's messaging shift could have an 'enormous' impact on advertisers, and could trigger a shift towards bots and Stories

Mark Zuckerberg just announced in a blog post that Facebook would shift its focus from public posts to private, ephemeral communication on its messaging apps.

The 3,200-word post mainly talks about protecting people's privacy when they use Facebook properties, after the company has come under fire for permitting the misuse of users' data. But it also has potential big implications for its lifeblood, advertising, and the marketers that use the social network to reach its 2 billion users.

Read more: Instagram is already running out of room for ads, and that's a threat to Facebook as it looks for new avenues to keep revenue growing

The move could have an "enormous" impact on Facebook's advertising business, said Debra Aho Williamson, principal analyst at eMarketer. "Facebook so far has not gained much traction with advertising in Messenger, and advertising in WhatsApp still hasn't emerged. That creates huge unknowns about how Facebook will generate significant ad revenue while users are engaged in private communications."

Facebook's evolving to keep up with how people are using its products

Of particular note to marketers was Zuckerberg saying in the post that "We plan to build this the way we've developed WhatsApp: focus on the most fundamental and private use case — messaging — make it as secure as possible, and then build more ways for people to interact on top of that, including calls, video chats, groups, stories, businesses, payments, commerce, and ultimately a platform for many other kinds of private services."

Facebook's message shows that it's evolving to keep up with how people are using its products, shifting from the public feed to one-to-one communications, said Nick Cicero, VP of strategy for Conviva, an online video analytics company. He added that marketers should be thinking about how they can tailor their communications strategies accordingly.

"Right now, marketers can get up messenger bots, and what they should start doing today is think of the touchpoints of personalization that can occur after someone consumes some content on Instagram," he said.

Cicero said that questions for marketers to ask are: "How can we interact with customers in a more one-to-one or small-group way? How can they make it inspire more conversation instead of just consumption? How do we create content that sparks a dialogue?"

Facebook watchers see opportunity in Stories ads and chat bots

Two ways marketers have dipped a toe into messaging apps are with utility-based messaging bots and Stories, Facebook's two-year-old ad format that runs across its properties and which Facebook has been pushing hard as its news feed reaches its saturation point with ads.

"Stories ads have just started to blossom and you'll see more shift to that format. That's going to mean strategies will have to evolve," Cicero said.

Anita Walsh, VP, social strategy & marketplace buying at Horizon Media, said this is a good time for marketers to double down on Stories and messenger bots, which some brands have mastered for utility-based transactions like doing returns and making reservations.

"If people are moving to and get more used to using bots, it creates a way to move past utility and more into informational ones," she said. "It's not right for every brand; it costs to create and maintain a bot."

Walsh also took talk about making commerce and payments part of messenger apps as another positive for advertisers. It means that Facebook is trying to figure out how to make those apps stickier with, and trusted by, users, which in turn will make those apps good places for advertisers to reach potential customers.

The shift in focus could also create more data

As for whether advertisers should worry about the future of data targeting on Facebook, Facebook watchers weren't concerned. The social network is still spending heavily on features like its Watch video section to keep people using its public social feed, and that usage throws off a lot of user consumption data that advertisers depend on, Walsh said.

"Facebook is investing heavily in content partnerships so that level of consumption seems to be also on the roadmap and that will help with any concerns about rich targeting," she said.

In another possible plus for advertisers, Facebook's move towards encryption could open up new data opportunities for marketers in SMS data, said Rosenblatt Securities analyst Mark Zgutowicz. In theory, Facebook wants its messenger apps to integrate with SMS data from phone messages.

"The benefit of connecting all these messaging devices is more data linkage across devices," Zgutowicz said. "If you're able to connect WhatsApp as well as Messenger communication with somebody who's communicating with them on Instagram, you can potentially link what those two individuals have in common. As you connect more messaging together, you're theoretically creating a bigger data graph with information that you can then sell to advertisers."

To be sure, there are still plenty of unanswered questions raised by the post, which makes the advertising implications hard to evaluate.

The Media Kitchen CEO Barry Lowenthal wondered if Facebook would still collect data on people while they're using messaging apps and if that could be used for advertising purposes.

And as Facebook makes its messenger apps more utility-based, will it open up ways for it to make money from transactions, making advertising less important to its business?

In any case, it's clear Facebook had to make big changes to its business.

"They realize Facebook can't keep going down the same path with fake news and trust. Unless they're willing to blow up the business model to solve for that, they'll go away," Lowenthal said.

Lauren Johnson contributed to this story.

Original author: Lucia Moses

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Feb
24

A Conversation About Sexual Harassment with Janine Yancey, CEO of Emtrain (Part 6) - Sramana Mitra

Mark Zuckerberg's vow to overhaul Facebook with new privacy rules is likely to spell the end of its years-long campaign to enter China.

Facebook's CEO said in a blog post on Wednesday that the social network will not build data centers in countries that have a record of violating privacy and freedom of expression.

That moral stance would likely make it impossible for Facebook to offer its service in China, where recent data localization laws require that internet service providers keep all personal data produced by its citizens — from emails to selfies — on computers within the country's borders.

"As we build our infrastructure around the world, we've chosen not to build data centers in countries that have a track record of violating human rights like privacy or freedom of expression," Zuckerberg wrote. Facebook decided not to build data centers in those countries because it can make it easier for governments to access people's sensitive data, he said.

To many observers, the implication was obvious.

"In other news, Zuck has clearly given up on entering China, as these changes makes that impossible. Good," Alex Stamos, adjunct professor at Stanford and Facebook's former chief security officer, tweeted after Zuckerberg published his comments.

A senior source inside Facebook told Buzzfeed News on Wednesday that the company "does not see a path forward in China" and has given up efforts to enter the world's largest internet market by users.

Read more:China has withdrawn approval for Facebook's new venture in the country, where it remains banned

Facebook's service is currently blocked in China, but the company has long said that entering the market is crucial to its mission of connecting the world. As Facebook's growth slows, China's 800 million internet users represent an attractive untapped market for Facebook, which generates almost all of its revenue by showing ads to users.

Facebook had previously confirmed that it had at least four data sharing partnerships with Chinese companies, including smartphone company Huawei, which is under scrutiny from the U.S. government. Facebook had said it would end those partnerships.

Facebook would almost certainly have run into compliance issues if it built a data center in China.

Chinese President Xi Jinping, left, talks with Facebook Chief Executive Mark Zuckerberg Ted S. Warren-Pool/Getty Images For example, data that's collected in China must be stored in that country, and companies must comply with strict rules like undergoing a security assessment if they want to send or move the data outside of China. China also requires companies to assist authorities when they conduct security investigations.

Apple already has a data center in China to host the local version of its iCloud online services. It complies with Chinese regulations and is operated by a Chinese company, raising concerns among privacy advocates that the Chinese government will be able to more easily access this data.

Facebook may see its stance on China as an opportunity to claim a moral high ground in an escalating war of words with tech rival Apple over consumer privacy.

"People want to know their data is stored securely in places they trust," Zuckerberg wrote. "Looking at the future of the internet and privacy, I believe one of the most important decisions we'll make is where we'll build data centers and store people's sensitive data."

That said, Facebook has already built a data center in Singapore— the company's first in Asia. Compared to China, Singapore has a more relaxed stance on data storage, but Singapore's government has also put restrictions on freedom of speech and press.

How Facebook justifies its presence in some countries versus others, already a thorny issue freighted with politics, is likely to become even more controversial under the company's new policy.

Facebook declined to comment beyond the blog post.

Original author: Rosalie Chan

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Mar
06

Workers and politicians are slamming GM for slashing 1,700 jobs at its idled Lordstown, Ohio plant (GM)

Dozens of General Motors employees surrounded a white Chevy Cruze on Wednesday. The car, the last to be produced at GM's Lordstown, Ohio facility, was draped with an American flag as the employees posed for one final photo.

In their arms, signs read "GM: We invested in you. Now it's your turn to invest in us."

Dozens of emotional photos, Facebook posts, and tweets were shared Wednesday as the Lordstown plant got ready to sit idle after more than 50 years in action. The factory's 1,700 workers, meanwhile, will be left without jobs.

The 6.2 million square foot plant will be placed into a "state of readiness," GM spokesperson Dan Flores told the Associated Press, meaning it will be heated and fully maintained to allow for a resumption of operations. The facility's future awaits upcoming contract talks between GM and the United Auto Works Union, which are set to being this summer.

Still, the pain from the job losses is rippling through Northern Ohio. As protesters gathered outside, many residents — including politicians — shared photos online:

Original author: Graham Rapier

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Mar
06

Court dismisses Paris lawsuit against Airbnb for illegal listings

A court in Paris has dismissed a case against Airbnb, as Le Monde reported. Last month, the City of Paris sued Airbnb for 1,010 illegal listings. According to the mayor’s office, Airbnb failed to comply with regulation in Paris.

Paris has been trying to limit the effect of Airbnb on the housing market in Paris. Paris is one of the top cities for Airbnb in the world. A few years ago, many people stopped renting their apartments the traditional way in favor of Airbnb. The average rental price in some areas of Paris has increased as a result.

Mayor of Paris Anne Hidalgo didn’t want to ban Airbnb altogether. Instead, the city asked hosts to get an ID number so the city can track how many nights someone is listing their apartment on Airbnb. You can’t rent an apartment more than 120 days a year.

But many listings still don’t have that ID number. The mayor’s office flagged around 1,000 apartments, saying that Airbnb was also responsible by dragging their feet.

But the court has said that screenshots are not enough to prove that these apartments without an ID number are permanently available on Airbnb. Maybe some of these apartments are available for less than 120 days a year, after all.

The case is not over, as this is just a summary judgement. But it sounds like the case is not strong enough to condemn Airbnb.

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Dec
26

Books: The Bright Hour and The Migration

Farming incubator Square Roots is announcing a new partnership today with food distribution giant Gordon Food Service.

Square Roots has built urban farming facilities in refurbished, climate-controlled shipping containers, which it uses to grow food and train farmers in a year-long program.

Until now, it has operated out of a single location in Brooklyn, which meant you could only purchase Square Roots from select locations in New York City, and it was only working with 10 farmers in each cohort. CEO Tobias Peggs (who founded Square Roots with Kimbal Musk) said this partnership changes all that.

The idea is to open Square Roots locations in or near Gordon Food Service’s distribution centers and retail stores across North America, and then to sell the resulting produce through the food distributor’s channels.

The companies aren’t revealing how many locations they’re planning to launch, or when they’ll open, but Peggs described it as “a long-term partnership,” adding, “There is a lot of potential with this partnership. They’re coast-to-coast in Canada, with big swaths in the United States.”

Peggs suggested that by working together, Square Roots and Gordon are answering a growing demand for locally grown food “at scale, across big swaths of the country.”

Gordon Food Services CEO Rich Wolowski made a similar point in the announcement, saying, “Customers want an assortment of fresh, locally grown food all year round. We are on a path to do that at scale with Square Roots and are excited to be the first in the industry to offer this unique solution to our customers.”

Why work with Square Roots? Peggs said the company’s approach requires less water and space than outdoor farms, while also requiring less investment than other indoor farming technologies, thanks to its “modular approach.”

“Certainly, it’s less of a dollar number to add a farm in a shipping container than it is to build a big plant factory,” he said. “What we’re able to do is very cost effectively, just-in-time deploy that capital expense.”

While this deal will allow Square Roots to expand, Peggs said the company will continue to operate its own facilities and handle its own sales in Brooklyn, and the company could still take a similar approach “in other markets where it just makes sense to go direct.”

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Mar
06

1Mby1M Virtual Accelerator Investor Forum: With Daniel Keiper-Knorr of Speedinvest (Part 3) - Sramana Mitra

Daniel Keiper-Knorr: We have one company in the portfolio in the Essex base. It’s an area that’s not so much in fashion with the recent VC industry, but still you can find super talented teams. The...

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Original author: Sramana Mitra

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Feb
23

1Mby1M Virtual Accelerator Investor Forum: With Todd Belfer of Canal Partners (Part 1) - Sramana Mitra

Tia, the company that launched with an app providing health advice and period tracking for women, has launched its first clinic.

From its first location in New York, the two founders of Tia hope they can build a network of care facilities that integrate all of the information their app collects with the benefits of having in-person consultations with physicians that have a holistic view of their patients’ health.

For founders Carolyn Witte and Felicity Yost, the hurdles women need to overcome to receive adequate treatment aren’t theoretical — they’ve faced them directly.

Witte and Yost met a decade ago in college and remained friends ever since. It was when Witte had to diagnose herself with polycystic ovarian syndrome (PCOS), a condition that affects nearly one in 10 women, that she first realized how broken the healthcare system was for more than half of the U.S. population.

“It’s one of those classic issues in healthcare that’s really difficult to diagnose… I spent three years seeing gynecologists, who were treating the symptom and failing to connect the dots,” Witte recalls. “I found myself at age 25 at a fertility specialist in NYC after I diagnosed myself on the internet… and got this really unfortunate diagnosis.”

As someone who worked at Google and had access to what was supposed to be the best healthcare services in the world, Witte realized there were significant gaps between the understanding of healthcare for men and women. “Here I am feeling completely alone and confused… that was the moment for me when I said there has to be a better way.”

Witte moved back to San Francisco and moved in with Yost and began working on what would become the Tia app.

Initially the app was focused on providing advice to women around sexual health and gynecological issues, eventually expanding to include a period tracker and other tools. Now, with the expansion into the clinical space, Tia’s founders see it as the culmination of their evolution as a company.

“I wanted to build a brand company that makes women feel heard,” says Witte. “We wanted to build a one-stop-shop solution that solves the lack of soul in healthcare.”

With that mission accomplished, the next step is to grow.

Growth at the kind of scale that Witte and Yost envision requires capital, which the two women have received in the form of $6 million in capital commitments from a slew of some of venture capital’s best investors, including John Doerr, Homebrew, Combine, Compound, Torch Capital, Canaan Partners and Define Ventures (Lynne Chou O’Keefe from Kleiner Perkins).

“Tia is a revolutionary company that is changing the way women view and access healthcare. Now, with the launch of the first Tia Clinic, they’re introducing a new model of women’s care that will shift the landscape with convenience, compassion, and personalization,” said Lynne Chou O’Keefe, in a statement.

That sentiment is bound up in the branding of the business. Although neither woman is Latinx, they called their company Tia after the Spanish word for aunt — which, can be expanded to include any trusted relationship among women (whether or not they’re actually related), according to Witte.

The decision to expand from an application into physical clinics was bound up in the use cases the two women saw when they launched their service. “We found very quickly after launching the product that women were hacking Tia and bringing their phones into their gynecologist’s office,” Witte says.

At the newly launched Tia clinic, which opens today at its first location in New York near Madison Square Park, the company is providing full-stack care delivery, including gynecological exams, primary care and wellness.

The company charges a $150 membership fee, but its services are covered under insurance. Tia currently accepts Aetna, Cigna, Humana, Oscar, United Oxford/United Healthcare and Empire Blue Cross Blue Shield.

Treatment at the Tia Clinic is informed by the data that the company’s application collects on its users, both Witte and Yost say. Women can come to the clinic for services ranging from holistic annual exams to IUD insertions to treatment for chronic migraines, alongside more mundane services like flu shots and strep throat treatments.

If Tia users track their cycle and daily health and wellness through the app, that can be shared with their Tia Clinic physicians to inform care. The medical service at this point doesn’t integrate other period-tracking apps into its health data.

At the center of Tia’s clinical care is the notion that the menstrual cycle is broadly associated with physiological and emotional manifestations that can inform and effect treatment. 

Tia isn’t the only company that is trying to bring information and data specific to women’s health into a clinical setting. In Oakland, NextGen Jane is using tampons embedded with sensors to diagnose severe health problems, like endometriosis.

And investors are pouring money into period-tracking and fertility apps and services around the country and around the world.

As we wrote earlier this month:

Femtech, a term coined by Ida Tin,  the founder of another period and ovulation-tracking app Clue, is defined as any software, diagnostics, products and services that leverage technology to improve women’s health. Femtech, and more specifically the businesses in the fertility and contraception lanes, hasn’t made headlines as often as AI or blockchain technology has, for example. Probably because companies in the sector haven’t closed as many notable venture deals. That’s changing.

The global fertility services market is expected to exceed $21 billion by 2020, according to Technavio. Meanwhile, private investment in the femtech space surpassed $400 million in 2018 after reaching a high of $354 million the previous year, per data collected from PitchBook and Crunchbase. This year already several companies have inked venture deals, including men’s fertility business Dadi and Extend Fertility, which helps women freeze their eggs.

“In the last three to six months, it feels like investor interest has gone through the roof,” Jake Anderson-Bialis, co-founder of FertilityIQ and a former investor at Sequoia Capital, told TechCrunch. “It’s three to four emails a day; people are coming out of the woodwork. It feels like somebody shook the snow globe here and it just hasn’t stopped for months now.”

For Tia, the benefits of understanding menstrual health extend far beyond fertility.

“Women’s health is cyclic and changes every single day of a woman’s cycle,” says Yost. With that said, the company is only just now starting to do clinical research to test the validity of its thesis. “For us to be able to do any sort of clinical research on women is very, very challenging,” says Yost. “All of these things can take a really long time because it takes so much information to diagnose.”

For investors like Homebrew’s Hunter Walk, companies like Tia sit at the intersection of a few promising trends — but the investment was driven by the passion the founders expressed for the mission they were on.

Women and specifically millennial women and younger are increasingly becoming targeted by venture-backed companies,” says Walk. “For years and years and years that audience was unrecognized and underserved… [But with Tia] what we saw was a checkbox on the founders and their abilities. They checked the box on the audience… and because they were going not just with generic women’s health but cycle-targeted women’s care, we thought that was the right and differentiated approach thinking about healthcare for women.”

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Mar
06

Red Cat wants to track drone flight data on the blockchain

Red Cat, a startup that wants to store drone flight data on the blockchain to guarantee immutability, announced the second beta of its drone data platform today.

Jeff Thompson, CEO of Red Cat, says in 2017 he was looking at what was holding back the commercial drone business and the need for a black-box kind of system became apparent to him. The so-called black box is really a flight recorder that tracks data about a flight. He believed he could create a platform to reproduce this capability for drones and store it on the blockchain to take advantage of the immutability of blockchain data.

“People want to be able to have some accountability and trackability to be able to start utilizing our information, whether it’s regulators or insurance companies, guys that have to write checks if you do a lot of damage,” Thompson told TechCrunch.

This tool could help these interested parties should there be an investigation into a crash, a near-miss with a plane or an incident like the drone that shut down Gatwick Airport in London last year. They can check the record in Red Cat and be assured that the data they are viewing is accurate and hasn’t been tampered with in any way.

Flight logs in Red Cat / Screenshot: Red Cat

Thompson believes having a system like this in place is absolutely essential if the industry is going to mature and be able to share airspace with other types of commercial air traffic. The company wants to do more than create the data tracking system, however. It wants to give drone companies detailed insight into exactly what’s happening with their drones as they travel to different destinations.

The goal is to help companies control and monitor their drone traffic and better understand how they are being utilized. The company is still refining all of this. This is actually the second beta, with 200 people actively using it in the first round. The purpose of this new beta is to elicit additional feedback from the drone community, including companies, pilots, regulators and insurance companies that could benefit from having access to data stored in Red Cat.

The company is based in Puerto Rico and has raised $2.2 million to date.

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Nov
29

Company of Heroes 3 multiplayer pre-alpha demo will debut on Steam

I read Roger McNamee’s book Zucked: Waking Up to the Facebook Catastrophe the day it came out. While likely uncomfortable for a lot of people, it was excellent, provocative, and challenging all at the same time.

I have not, nor have I ever been, an investor in Facebook. However, I benefited indirectly from, and indirectly contributed to, the rapid rise of Facebook as an early investor in Zynga. I remember being amazed at the pace of growth of both companies and, in an effort to understand it better, went deep on how each company’s product intersected with the psychology of humans.

If you hung around me during the 2007 – 2010 time period when I was on the Zynga board, you would have heard me talk with amazement at how easy it was to manipulate people into spending huge amounts of their time tending their virtual farm on FarmVille. I spoke with pride about the data that Zynga collected on every user, much of which came directly from Facebook and had nothing to do with what Zynga was doing, but was readily accessible to them via the Facebook API. Zynga endured endless Facebook TOS rewrites as they evolved their business model and tried to capture more of the revenue from companies like Zynga, including what I have come to refer to as the Facebook-Zynga Cuban Missile Crisis which ended in detante.

All of this happened a decade ago. I left the Zynga board just before they went public at the end of 2010 (as is my, and my partners’ at Foundry Group’s approach.) I continued to be a user of Facebook, but even that drifted away from me, as I never really felt that connected to it (I was more of a Twitter person.) I wasn’t surprised when the Facebook data privacy scandals started in 2017, but I was surprised at how timid the backlash was. I stopped using Facebook in 2018 and deleted my account in August.

McNamee has a deeper relationship with Facebook, as he was a mentor for Zuckerberg early in Facebook’s life and then an investor (first personally, then via his fund Elevation Partners) while Facebook was a private company. His experience has more emotion in it than mine (both good and bad), but his journey that led to this book started just before the 2016 US Presidential Election as McNamee was concerned that “bad actors” could be using Facebook to manipulate the election.

The book is riveting. McNamee moves between Facebook, his experience as an investor, his efforts to get through to the Facebook leadership team about his concerns, and his subsequent journey to make public his views about the negative impact Facebook is having on society and democracy in general. McNamee is not taking a cynical approach, but rather takes responsibility for his own lack of foresight into the potential problem, and explains his search for understanding and solutions.

I think this book is merely a preamble for what is coming in the next twenty years. As a species, we have little understanding of the complexity that we are creating through technology. This complexity cannot be solved, as complex adaptive systems don’t have a single solution – they adapt and evolve. Instead, we can only interact with them and, when they evolve at a rate much faster than we can understand and respond to, it’s can lead to an untenable situation.

We haven’t really begun to understand the implication of what we are creating. Regardless of the long-gone “Do No Evil” slogans of progressive technology companies, profit and power motives dominate behavior. And, with profit and power comes significant defenses, including denial about second order effects that result, and then the third order effects that result from the efforts to control the profit and power.

McNamee’s book is a taste of this. Read it and start to prepare your mind for what is to come.

Original author: Brad Feld

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Mar
06

Clari platform aims to unify go-to-market operations data

Clari started as a company that wanted to give sales teams more information about their sales process than could be found in the CRM database. Today, the company announced a much broader platform, one that can provide insight across sales, marketing and customer service to give a more unified view of a company’s go-to-market operations, all enhanced by AI.

Company co-founder and CEO Andy Byrne says this involves pulling together a variety of data and giving each department the insight to improve their mission. “We are analyzing large volumes of data found in various revenue systems — sales, marketing, customer success, etc. — and we’re using that data to provide a new platform that’s connecting up all of the different revenue departments,” Byrne told TechCrunch.

For sales, that would mean driving more revenue. For marketing it would it involve more targeted plans to drive more sales. And for customer success it would be about increasing customer retention and reducing churn.

Screenshot: ClariThe company’s original idea when it launched in 2012 was looking at a range of data that touched the sales process, such as email, calendars and the CRM database, to bring together a broader view of sales than you could get by looking at the basic customer data stored in the CRM alone. The Clari data could tell the reps things like which deals would be most likely to close and which ones were at risk.

“We were taking all of these signals that had been historically disconnected from each other and we were connecting it all into a new interface for sales teams that’s very different than a CRM,” Byrne said.

Over time, that involved using AI and machine learning to make connections in the data that humans might not have been seeing. The company also found that customers were using the product to look at processes adjacent to sales, and they decided to formalize that and build connectors to relevant parts of the go-to-market system like marketing automation tools from Marketo or Eloqua and customer tools such as Dialpad, Gong.io and Salesloft.

With Clari’s approach, companies can get a unified view without manually pulling all this data together. The goal is to provide customers with a broad view of the go-to-market operation that isn’t possible looking at siloed systems.

The company has experienced tremendous growth over the last year, leaping from 80 customers to 250. These include Okta and Alteryx, two companies that went public in recent years. Clari is based in the Bay Area and has around 120 employees. It has raised more than $60 million. The most recent round was a $35 million Series C last May led by Tenaya Capital.

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Mar
05

1Mby1M Virtual Accelerator Investor Forum: With Daniel Keiper-Knorr of Speedinvest (Part 2) - Sramana Mitra

Sramana Mitra: Let’s double click down on your portfolio. In what shape did they come to you? What stage? What is it about them that attracted you enough for you to make the investment? Daniel...

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Original author: Sramana Mitra

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