Feb
08

Read all the emails Jeff Bezos says the National Enquirer sent to 'blackmail' him (AMZN)

On Thursday, Amazon CEO Jeff Bezos wrote a Medium blog post revealing the emails that he alleges were sent to blackmail him.

In the email, AMI, the publisher of the National Enquirer, threatened to publish personal photos of Bezos and former news anchor Lauren Sanchez, including a naked selfie of Bezos.

In January, the National Enquirer, a long-time ally of President Donald Trump, had published an exposé on the affair between Bezos and Sanchez. After that, Bezos hired investigators to look into who leaked his personal photos and texts.

AMI threatened to publish these photos unless Bezos and Gavin De Becker, Bezos' security boss leading that investigation into the exposé, make a public statement that they "have no knowledge or basis for suggesting that AMI's coverage was politically motivated or influenced by political forces." AMI also said it would keep those photos.

"Of course I don't want personal photos published, but I also won't participate in their well-known practice of blackmail, political favors, political attacks, and corruption. I prefer to stand up, roll this log over, and see what crawls out," Bezos wrote.

Here is the email that Bezos says he received from AMI, describing the photos it had obtained.

From:Howard, Dylan [This email address is being protected from spambots. You need JavaScript enabled to view it.] (Chief Content Officer, AMI)Sent:Tuesday, February 5, 2019 3:33 PMTo:Martin Singer (litigation counsel for Mr. de Becker)Subject:. Jeff Bezos & Ms. Lauren Sanchez Photos

CONFIDENTIAL & NOT FOR DISTRIBIUTION

Marty:

I am leaving the office for the night. I will be available on my cell — 917 XXX-XXXX.

However, in the interests of expediating this situation, and with The Washington Post poised to publish unsubstantiated rumors of The National Enquirer's initial report, I wanted to describe to you the photos obtained during our newsgathering.

In addition to the "below the belt selfie — otherwise colloquially known as a 'd*ck pick'" — The Enquirer obtained a further nine images. These include:

· Mr. Bezos face selfie at what appears to be a business meeting.

· Ms. Sanchez response — a photograph of her smoking a cigar in what appears to be a simulated oral sex scene.

· A shirtless Mr. Bezos holding his phone in his left hand — while wearing his wedding ring. He's wearing either tight black cargo pants or shorts — and his semi-erect manhood is penetrating the zipper of said garment.

· A full-length body selfie of Mr. Bezos wearing just a pair of tight black boxer-briefs or trunks, with his phone in his left hand — while wearing his wedding ring.

· A selfie of Mr. Bezos fully clothed.

· A full-length scantily-clad body shot with short trunks.

· A naked selfie in a bathroom — while wearing his wedding ring. Mr. Bezos is wearing nothing but a white towel — and the top of his pubic region can be seen.

· Ms. Sanchez wearing a plunging red neckline dress revealing her cleavage and a glimpse of her nether region.

· Ms. Sanchez wearing a two-piece red bikini with gold detail dress revealing her cleavage.

It would give no editor pleasure to send this email. I hope common sense can prevail — and quickly.

Dylan.

And here are emails Bezos says he received from the National Enquirer publisher, laying out the terms for witholding publication of the photos:

From:Fine, Jon [This email address is being protected from spambots. You need JavaScript enabled to view it.] (Deputy General Counsel, AMI)Sent:Wednesday, February 6, 2019 5:57 PMTo:Martin Singer (Mr de Becker's attorney)Subject:Re: EXTERNAL* RE: Bezos et al / American Media et al

Marty -

Here are our proposed terms:

1. A full and complete mutual release of all claims that American Media, on the one hand, and Jeff Bezos and Gavin de Becker (the "Bezos Parties"), on the other, may have against each other.

2. A public, mutually-agreed upon acknowledgment from the Bezos Parties, released through a mutually-agreeable news outlet, affirming that they have no knowledge or basis for suggesting that AM's coverage was politically motivated or influenced by political forces, and an agreement that they will cease referring to such a possibility.

3. AM agrees not to publish, distribute, share, or describe unpublished texts and photos (the "Unpublished Materials").

4. AM affirms that it undertook no electronic eavesdropping in connection with its reporting and has no knowledge of such conduct.

5. The agreement is completely confidential.

6. In the case of a breach of the agreement by one or more of the Bezos Parties, AM is released from its obligations under the agreement, and may publish the Unpublished Materials.

7. Any other disputes arising out of this agreement shall first be submitted to JAMS mediation in California

Thank you,

Jon

Deputy General Counsel, Media

American Media, LLC

Jon P. Fine

Deputy General Counsel, Media

O: (212) 743-6513 C: (347) 920-6541

This email address is being protected from spambots. You need JavaScript enabled to view it.

February 5, 2019

Via email:

This email address is being protected from spambots. You need JavaScript enabled to view it.

Martin D. Singer

Laveley & Singer

Re: Jeff Bezos / American Media, LLC, et al.

Dear Mr. Singer:

I write in response to your February 4, 2019, letter to Dylan Howard, and to address serious concerns we have regarding the continuing defamatory activities of your client and his representatives regarding American Media's motivations in its recent reporting about your client.

As a primary matter, please be advised that our newsgathering and reporting on matters involving your client, including any use of your client's "private photographs," has been, and will continue to be, consistent with applicable laws. As you know, "the fair use of a copyrighted work, including such use by reproduction in copies . . . for purposes such as criticism, comment, news reporting . . . is not an infringement of copyright." 17 USC Sec. 107. With millions of Americans having a vested interest in the success of Amazon, of which your client remains founder, chairman, CEO, and president, an exploration of Mr. Bezos' judgment as reflected by his texts and photos is indeed newsworthy and in the public interest.

Beyond the copyright issues you raise, we also find it necessary to address various unsubstantiated defamatory statements and scurrilous rumors attributed to your client's representatives in the press suggesting that "strong leads point to political motives"1 in the publication of The National Enquirer story. Indeed, you yourself declared the "politically motivated underpinnings" of our reporting to be "self-evident" in your correspondence on Mr. de Becker's behalf to Mr. Howard dated January 31, 2019.

Once again, as I advised you in my February 1 response to your January 31 correspondence,American Media emphatically rejects any assertion that its reporting was instigated, dictated or influenced in any manner by external forces, political or otherwise.Simply put, this was and is a news story.

Yet, it is our understanding that your client's representatives, including the Washington Post, continue to pursue and to disseminate these false and spurious allegations in a manner that is injurious to American Media and its executives.

Accordingly, we hereby demand that you cease and desist such defamatory conduct immediately. Any further dissemination of these false, vicious, speculative and unsubstantiated statements is done at your client's peril.Absent the immediate cessation of the defamatory conduct, we will have no choice but to pursue all remedies available under applicable law.

As I advised previously, we stand by the legality of our newsgathering and reporting on this matter of public interest and concern. Moreover, American Media is undeterred from continuing its reporting on a story that is unambiguously in the public interest — a position Mr. Bezos clearly appreciates as reflected in Boies Schiller January 9 letter to American Media stating that your client "does not intend to discourage reporting about him" and "supports journalistic efforts."

That said, if your client agrees to cease and desist such defamatory behavior, we are willing to engage in constructive conversations regarding the texts and photos which we have in our possession. Dylan Howard stands ready to discuss the matter at your convenience.

All other rights, claims, counterclaims and defenses are specifically reserved and not waived.

Sincerely,

Original author: Rosalie Chan

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Feb
14

386th Roundtable For Entrepreneurs Starting NOW: Live Tweeting By @1Mby1M - Sramana Mitra

Automakers like GM and Ford are banking on the the assumption that if they can lower the cost per mile of self-driving taxis to $1 or less, demand will skyrocket. But a new analysis in the Harvard Business Review suggests their model may be flawed.

Why it matters: Carmakers are tearing apart their traditional businesses— exiting underperforming markets, closing factories and laying off workers — while diverting investment into future mobility technologies. But if self-driving taxi fleets don't take off as expected, their financial plans could be at risk.

What they're saying: Ride-hailing costs around $3 per mile today, according to GM, but only accounts for 1% of miles traveled. The driver represents most of that cost.

Without a driver, the cost per mile falls to around $1 per mile. At that point, robotaxis will be so cheap everyone will travel that way — or so the theory goes. It's all about deploying at scale, as GM Cruise CEO Dan Ammann likes to say.

Yes, but: Authors Ashley Nunes and Kristen Hernandez see it differently.

They found the estimated cost per mile of a robotaxi in San Francisco was 3 times higher than the cost of owning an older vehicle. The gap was due to lower utilization rates than carmakers assume. (Current taxis are in use about 50% of the time.) Even if robotaxis had substantially higher utilization rates, the cost of providing remote oversight by humans must be factored in. The only way for robotaxis to be cost competitive with older cars is if the remote operators are paid well below minimum wage, the authors said.

Consumer subsidies will be needed to realize the life-saving benefits of AVs, they conclude.

The bottom line: Self-driving cars need to be affordable to serve those who need them most, and to keep carmakers' strategies afloat.

Go deeper: Here come the robotaxis

Original author: Joann Muller, Axios

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Feb
07

Amazon CEO Jeff Bezos accuses National Enquirer publisher of 'extortion' over naked photos in extraordinary blog post (AMZN)

Amazon CEO Jeff Bezos has accused American Media Inc. (AMI), the publisher of the National Enquirer, of attempting to extort him over leaked naked photos.

In January 2019, the National Enquirer published an exposé into an affair between the billionaire tech exec and the former news anchor and helicopter pilot Lauren Sanchez, and said that it had seen explicit photos of him.

In an extraordinary blog post published on Medium on Thursday, Bezos said AMI subsequently attempted to extort him over these photos. He said the publisher threatened to publish the photos unless he stopped an investigation into the leaks. And it also demanded that he disavow the idea that AMI's investigation into his personal life might have been politically motivated, Bezos said.

"Rather than capitulate to extortion and blackmail, I've decided to publish exactly what they sent me, despite the personal cost and embarrassment they threaten," Bezos wrote.

Spokespeople for AMI and Amazon did not immediately respond to Business Insider's requests for comment.

See also: Read all the emails Jeff Bezos says the National Enquirer sent to 'blackmail' him

Bezos insinuates the National Enquirer may have been politically motivated

AMI has long been accused of having political motives for its news coverage.

Its owner, David Pecker, is an ally of President Donald Trump and has previously engaged in buying negative stories about Trump in order to bury them (a process called "catch and kill"). As such, there has been some speculation that the National Enquirer exposé on Bezos was at least partially motivated by the long-running feud between Trump and Bezos, who owns The Washington Post.

Gavin de Becker, Bezos' security boss who is leading the investigation into the exposé, had previously said "strong leads point to political motives." De Becker has "whatever budget he needed" to carry out this investigation, Bezos wrote.

Bezos doesn't outright say he believes the National Enquirer exposé was politically motivated. But he hints at it, beginning his blog post by recapping AMI's "catch and kill" practices and saying his ownership of The Washington Post means "powerful people who experience ... news coverage will wrongly conclude I am their enemy."

He also hints at a potential Saudi Arabian connection to his investigation into AMI, writing: "Several days ago, an AMI leader advised us that Mr. Pecker is 'apoplectic' about our investigation. For reasons still to be better understood, the Saudi angle seems to hit a particularly sensitive nerve."

"A few days after hearing about Mr. Pecker's apoplexy, we were approached, verbally at first, with an offer. They said they had more of my text messages and photos that they would publish if we didn't stop our investigation," he added.

AMI's alleged emails have been published

Bezos' comments represent an extraordinary intervention from the 55-year-old CEO into the tabloid scandal. Bezos had so far refrained from commenting, even as de Becker gave media interviews, and he rarely talks to the press.

Bezos' post also contains what he said are copies of the emails sent by AMI, which include explicit descriptions of the intimate photos.

"In the AMI letters I'm making public, you will see the precise details of their extortionate proposal: They will publish the personal photos unless Gavin de Becker and I make the specific false public statement to the press that we 'have no knowledge or basis for suggesting that AMI's coverage was politically motivated or influenced by political forces,'" Bezos wrote.

"If we do not agree to affirmatively publicize that specific lie, they say they'll publish the photos, and quickly. And there's an associated threat: They'll keep the photos on hand and publish them in the future if we ever deviate from that lie."

These are, Bezos said, some of the terms AMI tried to get him to agree to in return for not publishing the photos:

"1. A full and complete mutual release of all claims that American Media, on the one hand, and Jeff Bezos and Gavin de Becker (the "Bezos Parties"), on the other, may have against each other.

"2. A public, mutually-agreed upon acknowledgment from the Bezos Parties, released through a mutually-agreeable news outlet, affirming that they have no knowledge or basis for suggesting that AM's coverage was politically motivated or influenced by political forces, and an agreement that they will cease referring to such a possibility.

"3. AM agrees not to publish, distribute, share, or describe unpublished texts and photos (the "Unpublished Materials")."

Bezos added that his lawyers believe AMI has no right to publish the photos in any case because he took the original photos in question, giving him the claim to ownership.

Original author: Rob Price

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May
22

Researchers recreate a brain, piece by piece

China's Online Games Ethics Committee has approved a pair of mobile games published by Tencent, meaning the the world's largest video game publisher will finally be able to release new games in its home country for the first time since March of last year.

China spent much of 2018 reorganizing its approval process for new media coming into the country, leading to an extended freeze on new releases. China established a new regulatory body, the Online Games Ethics Committee, in response to concerns from Chinese officials who feared that video games were sparking addiction and impacting the productivity of the country's youth.

Chinese regulators maintain strict standards when judging whether games, films, and other media are too violent or offensive for release within the country. The Online Games Ethics Committe approved 80 games in its first round of reviews in late December 2018, and after four rounds of approvals, a total of 352 games have been cleared for release. The South China Morning Post reports that Chinese regulators hope to get back to their standard rate of between 2,000 and 3,000 annual approvals.

Some of Tencent's most successful games released worldwide during 2018 still remain barred from release in China. Regulators have also prevented Tencent from monetizing popular games that were already tested in the Chinese market, including "Fortnite: Battle Royale" and "PlayerUnknown's Battlegrounds," both of which have millions of players on a monthly basis. The freeze on popular new releases has hit Tencent's bottom line hard too; the company's share price dropped nearly 30% during the freeze.

Read more:Video game addiction has sparked a culture war in China — and it's having huge repercussions for the world's biggest video game maker

In a proactive response to criticism in China, Tencent began using facial recognition software to verify player identities in September 2018. Tencent's age-verification process uses an official government database to confirm player identities with their photo and personal information. Players under the age of 18 are limited to playing just two hours a day, while those under the age of 12 are limited to one hour a day.

Despite restrictions from the government, China remains the largest video game market on the planet. Chinese gamers spent more than $34 billion on video games in the past year, according to New Zoo.

Original author: Kevin Webb

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Jul
12

Apple is creating a $300 million fund to build solar power in China (AAPL, DB)

During a routine sweep of the outer solar system, the Hubble Space Telescope caught a new and mysterious "dark vortex" in the clouds of Neptune, according to NASA.

The space agency jointly announced the storm's discovery on Thursday with the Space Telescope Science Institute (STScI), which picks targets for the telescope to study based on submissions by scientists around the world.

The new storm shown in the image below is enormous. Measuring about 6,800 miles across, it could stretch from New York City to the tip of South America and swallow perhaps 20% of Earth's surface area.

The Hubble Space Telescope photographed a "dark tempest" storm on Neptune in September 2018.NASA/ESA/A. Simon (GSFC)/M.H. Wong and A. Hsu (UC Berkeley); Business Insider

The storm appears to be confined to Neptune's northern hemisphere, near a patch of bright-white "companion" clouds, according to a press release from STScI. Such clouds form because the storm plows through surrounding air high above the storm, cooling it off and causing it to freeze. In this cause, that frozen material is almost certainly methane.

"These clouds are similar to clouds that appear as pancake-shaped features when air is pushed over mountains on Earth (though Neptune has no solid surface)," the STScI said.

This marks the fourth such dark storm ever discovered on Neptune. Whereas Earth's worst storms typically last no more than days or weeks, Neptune's newest dark vortex is expected to last years. (Jupiter's Great Red Spot is the current record-holder for longest-lived gigantic storm, having existed for at least 400 years, but it's shrinking.)

Neptune is known for its dark storms.

The first two were spotted when NASA's nuclear-powered Voyager 2 probe sailed past the gassy planet in 1989 — the first and so far only flyby of the world. The tempests that Voyager spotted are seen in the image at the top of this post.

Read more: The coolest feats of space exploration since NASA's Apollo 8 moon mission

Since 1993, Hubble has detected four more of the storms, including the latest one, which appeared in a routine image sweep in September 2018. (The finding was just announced this week.)

Most recently, Hubble helped find a dark storm in 2015 and study it through 2017. Results of that research suggest the clouds are made of deadly (and stinky) hydrogen sulfide.

This series of Hubble Space Telescope images taken over 2 years tracks the demise of a giant dark vortex on the planet Neptune. The oval-shaped spot has shrunk from 3,100 miles across its long axis to 2,300 miles across over the Hubble observation period. Credits: NASA, ESA, and M.H. Wong and A.I. Hsu (UC Berkeley)

That storm was expected to drift north toward Neptune's equator and break up. But its actual behavior floored scientists: It instead moved in the opposite direction, toward the South Pole, then slowly faded away.

"We have no evidence of how these vortices are formed or how fast they rotate," Agustín Sánchez-Lavega, a scientist at the University of the Basque Country in Spain who worked on the project, said in a February 2018 release.

By comparing the images used for that study to the latest NASA images, scientists gleaned new clues that may help solve the mystery. In the older images, "increased cloud activity" came years before the sixth and most recent dark storm appeared and was detected.

"The images indicate that the vortices probably develop deeper in Neptune's atmosphere, becoming visible only when the top of the storm reaches higher altitudes," NASA and STScI said in their releases.

Planet Uranus with a giant polar cap of seasonal weather.NASA/ESA/A. Simon (GSFC)/M.H. Wong and A. Hsu (UC Berkeley); Business Insider

In its latest round of deep-space observations of planets, Hubble also spied a "giant polar cap" or "hood" on Uranus. . Scientists think the feature may be caused by seasonal changes in weather on the planet.

"These images are part of a scrapbook of Hubble snapshots of Neptune and Uranus that track the weather patterns over time on these distant, cold planets," NASA said.

The agency added: "Just as meteorologists cannot predict the weather on Earth by studying a few snapshots, astronomers cannot track atmospheric trends on solar system planets without regularly repeated observations. Astronomers hope that Hubble's long-term monitoring of the outer planets will help them unravel the mysteries that still persist about these faraway worlds."

Original author: Dave Mosher

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Dec
03

The RetroBeat: Super Smash Bros. Melee is still special 20 years later

For a few moments last week it might have looked like the tech industry's very own World War III was breaking out, as Apple briefly kicked iPhone users who work at Facebook and Google off much of their own software as part of a privacy dispute.

Why it matters: Hostilities ended as quickly as they began — but the flareup reminded the world of just how completely, and complexly, the technologies and businesses of these giants are connected.

The most valuable companies in the world — Apple, Google, Facebook, Amazon — mostly stayed in their own lanes as they grew into giants. But now they're increasingly clashing as their growing ambitions bump into one another.

If you understand where these giants clash and where they find common ground, you can begin to grasp how they are shaping our world.

Driving the news: Apple was furious when it learned Facebook was abusing rules governing internal apps and quickly kicked the company out of the program, breaking Facebook's ability to test new apps and use internal iPhone apps.

When it became clear Google was doing the same thing, Apple was in a bind. Facebook and Apple have few business ties. But Apple gets billions of dollars per year from Google in exchange for making it the default search engine on iPhones and Mac — an arrangement that Apple CEO Tim Cook has had to defend while promoting the company's strong pro-privacy stance. In the end, Apple briefly banned Google, too — then quickly lifted both sentences. It's not clear how long Facebook's ban might have lasted if Google hadn't joined it in the penalty box.

The big picture: Once upon a time, Amazon was largely a retail store, Apple sold hardware, Google was a search engine, and Facebook was an online social network.

None of the companies is confined by those definitions any more. They spill over into one another's territory even as they depend on each other to greater and lesser degrees. Facebook and Amazon, for example, both distribute their consumer apps through the Google Play and Apple app stores. Google, Facebook and Apple all rely to some degree on their products being sold through Amazon, despite each also having tensions with the retail giant.

Google and Amazon had vastly different origins but are increasingly rivals.

They compete in cloud computing, advertising and other areas. Amazon is also one of the few companies, outside of China, that has been able to release Android-based devices using its own, rather than Google's, app store. The two companies are now warring in the automated assistant/smart speaker arena. The tension led Google to pull YouTube support from some Amazon devices and sparked a fierce battle over which Google devices get sold on Amazon's virtual shelves.

Amazon and Apple have fought but are finding more common ground.

Like Google, Apple has squabbled with Amazon over access to digital and physical retail space. Today, however, Amazon's Prime Video is showing up on Apple TV. Meanwhile, Amazon is stocking more of Apple's products again.

Google and Facebook together control the lion's share of the online ad business.

Their competition has long been masked by the scale of the market's growth. As Facebook faces scandal after privacy scandal, Google has tried, with some success, to keep its head down, although critics point out it has even more data on consumers than Facebook.

Facebook and Amazon have the least interplay among the tech giants.

The social network and retail giant have relatively few obvious business ties and competitive conflicts. Facebook apps are available for Amazon devices, and Amazon sells the Oculus VR headset.

History lesson: These relationships have never stood still.

Apple and Google, for example, were once so close that Google CEO Eric Schmidt was on Apple's board of directors. Then, after Google introduced Android, the relationship chilled dramatically: Schmidt left the board and a patent war broke out. At one time Apple built a connection to Facebook directly into the iPhone operating system. These days, the companies' CEOs are more likely to trade pot shots over privacy and business models than to work together. Google tried several times to challenge Facebook's dominance of social networking head on, but even its biggest effort, Google Plus, was a flop.

The bottom line: Tension is likely to outweigh cooperation, especially as each of the four companies seeks to convince regulators that the others are the ones in need of reining in.

The interdependencies won't vanish, though — so expect more skirmishes like the one Apple fought with Google and Facebook last week.
Original author: Ina Fried, Axios

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Feb
07

This phone's pop-up selfie camera has more megapixels than the main cameras on most smartphones

Vivo India's Twitter account announced the Chinese phonemaker's new Vivo V15 Pro smartphone, which comes with a pop-up selfie camera.

That pop-up camera itself has more megapixels than most rear smartphone cameras, clocking in at 32 megapixels. Indeed, most smartphone cameras these days only offer about 12 megapixels, which is less than half than that of the V15 Pro's selfie camera.

On the back of the phone, the V15 Pro's triple-lens rear camera has a huge 48 megapixel count for its main lens, 8 megapixels for its secondary lens, and a 5-megapixel depth sensor for enhancing portrait mode shots.

While the megapixel count is impressive, it doesn't necessarily translate to good photos. There are several other factors like software and the quality of the camera components that make the biggest difference in photo quality. But it certainly doesn't hurt.

Vivo will be announcing the V15 Pro officially with more details about the phone on February 20. That's the same day as Samsung's Unpacked event, where the Galaxy S10 is expected to be announced.

You can check out a short video of the Vivo V15 Pro below:

Original author: Antonio Villas-Boas

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Dec
03

Report: Ransomware victims increase security budgets due to surge in attacks

Ticketing app Gametime is taking its last-minute approach about as far as it can go, with the launch of a new feature called LastCall. This allows users to purchase tickets through Gametime until 90 minutes after an event has started.

Why would you want to do that? Well, prices usually drop precipitously after the event starts — for example, Gametime said that 48 hours before a game, the median price for a Major League Baseball is (coincidentally?) $48, but it’s dropped to $13 by 90 minutes after the first pitch.

Founder and CEO Brad Griffith acknowledged that most fans probably aren’t interested in just showing up for the fourth quarter or ninth inning of a game, or for the last song in a concert. On the other hand, if you could get a big discount and still catch most of the event, then it might be worth it.

Meanwhile, if you’re a team or a venue with empty seats, or if you’re a ticket-holder who realizes at the last minute that you can’t attend, then it’s good to have one last shot at selling those tickets.

In fact, it sounds like this is one of those “announcements” that’s partly acknowledging what’s already happening, both in the Gametime app and elsewhere. Griffith said the company is “doubling down” on this last-last-minute category of tickets, adding that it’s “constantly working through” what it’s actually including under the LastCall umbrella.

“The key element is the research that we’ve done, how it relates to the growth of this phenomenon” he said.

That research includes a survey of 287 event attendees, some who use Gametime and some who don’t. Apparently 27 percent said they’ve already purchased tickets after an event’s start time, and 62 percent of those late buyers were either Generation Z or millennials.

And while Gametime started out with a focus on sports, LastCall will include tickets from a variety of live events. In fact, Griffith said concerts are now the app’s fastest-growing category, and he suggested that this approach could help with the declining number of total concert tickets sold.

“We’re starting to see a bifurcation of windows, where the on-sale is still healthy, is strong, and the middle is maybe cratering in terms of transaction volume,” he said. “And then last-minute is vibrant and growing fast. That is where we aim to do our best work.”

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Dec
01

This $30,000 rig is the craziest gaming setup we've ever seen

To better measure aptitude of applicants, online career marketplace Hired has acquired Py, which helps companies like Opendoor and Niantic identify talent with app-based interactive courses on Python, iOS development and more.

As part of the deal, Hired will launch a new feature called Hired Assessments, leveraging tools from the Py platform, as well as a tiered subscription model. The base-level package, called Hired Essential, will provide enhanced search functionality, tools to help candidates arrive to interviews as prepared as possible and more. A spokesperson for Py declined to disclose terms of the deal but did say that Py counts 500,000 users who’ve completed 2 million coding assignments. They also offered this little anecdote:

Py’s co-founder, Derek Lo had initial conversations with Hired’s VP of Strategic Development, Andre Charoo back in October of 2018. But it wasn’t until Lo randomly met one of Hired’s co-founders at a Y Combinator networking event that the partnership started to come into fruition. The Hired co-founder that Lo met was Allan Grant — also a part of the Y Combinator community — and he wasn’t aware of the initial conversations but agreed to have Lo over to his house the next day to share advice about running an early-stage startup. Over coffee at Grant’s house, Lo learned a lot about the purpose of Hired and began to understand why Hired would be a great fit for his product and team. From there, the rest was history. 

Derek Lo, founder and chief executive officer of Py, first began building the mobile app in May 2016 before completing Y Combinator’s accelerator program in summer 2017. Lo started the company in his dorm room after becoming frustrated with Yale’s computer sciences courses, which he felt were useless when it came to real business applications.

Lo has joined Hired as its head of product.

In a conversation with TechCrunch while Py was still completing the accelerator, Lo said the company had decided to turn down a $1 million investment offer because it was unnecessary for such an early-stage startup. At the time, the Py team had brought in $20,000 in pre-seed funding from Dorm Room Fund, plus another $100,000 from the Yale Venture Creation Program. In total, Py has raised $615,000.

“With Py founder Derek Lo, we saw a shared vision for making hiring easier for everyone,” Hired’s vice president of strategic development Andre Charoo said in a statement. “For companies, this means helping them hire in-demand talent quickly and predictably, and for job seekers, it is about empowering them to land their dream job. By combining Py’s technical assessment expertise with Hired’s dependable pipeline of first-rate talent, we’re ready to transform today’s hiring standards.”

Hired Assessments will include online coding quizzes, standardized testing, projects and a “live code” environment where hiring managers can “view, rewind, fast forward and save live candidate challenges.” The features are customizable so companies can tweak assessments based on their hiring needs.

Hired Essential will use machine learning to curate lists of candidates for available roles, as well as help candidates arrive at interviews prepared with a clear outline of hiring steps, expectations and tips.

Founded in 2012, San Francisco-based Hired is backed by venture capital firms including Comcast Ventures, Sherpa Capital, Lumia Ventures and Uncork Capital. To date, the business has raised $133 million, most recently at a post-valuation of $550 million, according to PitchBook.

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Jul
12

The PC industry just showed its first signs of growth in 6 years — but don't expect this rebound to last (HPQ, AAPL)

Foot Locker, the mostly mall-bound retailer of mass market sneakers, has invested $100 million in the sneaker marketplace and retailer of primarily rare and exclusive high-end athletic and lifestyle shoes, GOAT Group.

The companies said that the investment would eventually lead to Foot Locker and Goat Group combining their efforts across their digital and physical retail platforms.

GOAT said in a statement that the company would use the investment to accelerate its global operations and expand its omnichannel experience and its technologies.

IT Manager Clint Arndt, CEO Eddy Lu

In an interview, the GOAT co-founder and chief product officer declined to disclose the company’s valuation, its revenues, how sales break down across geographic regions or how it will work with Foot Locker going forward.

In 2018, several top sellers on GOAT sold more than $10 million worth of sneakers, up from $2 million in 2017, according to the company. GOAT Group now counts more than 600 employees, up from 200 a year ago, with 12 million users currently active on the platform. That figure is up massively from last year, when 2.5 million folks were on the platform.

Over the same period, GOAT boosted its sneaker listings to 750,000 from 200,000, and now has 150,000 vendors selling to more than 12 million customers. With growth like that, it’s no wonder Foot Locker wants a sip of that GOAT stew.

“At Foot Locker we are constantly looking at new ways to elevate our customer experience and bring sneaker and youth culture to people around the world,” said Richard Johnson, Foot Locker, Inc.’s chairman and chief executive officer, in a statement. “We are excited to leverage GOAT Group’s technology to further innovate the sneaker buying experience and utilize their best-in-class online marketplace to help meet the ever-growing global demand for the latest product. Together, Foot Locker and GOAT Group’s shared commitment to trust and authenticity in the sneaker industry will provide consumers with unparalleled experiences and diversified offerings.”

One savvy online observer commented that the deal was the equivalent of Blockbuster investing in Netflix back when that now-defunct video rental service was still in its waning days, before it became obsolete.

#1. Foot Locker is still around?
#2. Smart move.

— SpikeballChris (@spikeballchris) February 7, 2019

“In 2015, we pioneered the ship-to-verify model with a mission to bring a seamless and safe customer experience to the secondary sneaker market,” said Eddy Lu, co-founder and chief executive officer of GOAT Group. “With over 3,000 retail locations, Foot Locker will support our primarily digital presence with physical access points worldwide, bringing more value to our community of buyers and sellers. Having Foot Locker as a strategic partner will also expand our business as we continue to scale our operations both domestically and internationally.”

Last year, GOAT raised $60 million as it announced its largest strategic move to date — acquiring the physical retailer Flight Club to begin pushing into real-world in-store experiences.

Scott Martin is joining the GOAT Group’s board of directors and extends Foot Locker’s investments in startup companies and brands, which already included the women’s luxury activewear brand Carbon38; tactical play and children’s lifestyle brand Super Heroic; and footwear design academy PENSOLE.

GOAT has raised $197.6 million since it was launched it 2015. The company competes with other vendors like Stock X.

In an interview with Highsnobiety, NPD Group senior sports industry advisor Matt Powell said, “The sneaker resale market has been disruptive to the primary market. Foot Locker is investing in that disruption and believes that the resale market will continue to grow and its wants a piece of that growth.”

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Oct
20

Thought Leaders in Online Education: Paul Kellenberger, CEO of zSpace (Part 2) - Sramana Mitra

Airbnb made it easier for travelers to find a place to crash. Now it wants to make it easier for them to get around.

The $31 billion home-sharing giant has hired Fred Reid as its first-ever global head of transportation. Reid served as the founding chief executive officer of Virgin America from 2004 to 2007 after a three-year stint as the president of Delta Airlines. Most recently, Reid was president of the Cora Aircraft Program, a division of Kitty Hawk focused on the development of an autonomous electric vertical takeoff and landing aircraft.

The hire suggests Airbnb has broad ambitions to further disrupt the travel and hospitality industry. Given the 500 million guest arrivals to Airbnb listings the company says it will have recorded by the first quarter of 2019, integrating transportation services to better serve customers is a no-brainer.

“We’re going to explore a broad range of ideas and partnerships that can make transportation better,” Airbnb co-founder and CEO Brian Chesky said in a statement. “We haven’t settled on exactly what those will look like. I’m not interested in building our own airline or creating just another place on the Internet where you can buy a plane ticket, but there is a tremendous opportunity to improve the transportation experience for everyone.”

Founded in 2008, Airbnb has raised a total of $4.4 billion in venture capital funding from investors, including Sequoia and Andreessen Horowitz.

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Feb
07

Segmented security startup Illumio raises $65M in Series E round

Illumio has raised $65 million in its latest round of funding, the security startup has confirmed.

The news comes just weeks after the company was expected to announce a $50 million Series E round, but was delayed after a late addition pushed the figure up.

In just six years, the company has exploded in growth, running through several rounds of funding accumulating more than $330 million to date, amassing clients like BNP Paribas, Morgan Stanley, Oracle NetSuite and Salesforce. And, the funding lands just a few months after the company obtained FIPS 140-2 certification, allowing it to run on federal government networks of low classification, opening the company up to another burgeoning market.

“With this latest round of funding, we’re investing more in all parts of the business to meet market demand and continue to enable our customers to prevent the spread of breaches in their global infrastructures,” said Andrew Rubin, Illumio’s chief executive.

Specifically, the company said the $65 million will go across its entire business to grow into Europe, the Middle East and Africa — where its headcount has increased by more than fourfold; as well as Asia, and the U.S. where its headquarters is located.

Illumio neither said now nor previously what its valuation is. At its last Series D round of $125 million in mid-2017, the company was said to be worth upwards of $1 billion. For its part, Illumio self-stylizes as a startup unicorn but wouldn’t comment further when pressed.

Along with its funding news, Illumio added that it’s hired Anup Singh as chief financial officer to focus on the company’s continued growth, and it’s also appointed Jonathan Reiber, a former Pentagon chief strategy officer for cyber policy, as Illumio’s new head of cybersecurity strategy. And, angel investor John Hinshaw was appointed to the company’s board.

After five rounds of funding, Illumio is on a list of anticipated IPOs for later this year. When asked about its plans, the company didn’t comment.

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Feb
07

Subscription startup Scroll acquires news aggregator Nuzzel

Tony Haile, who previously led analytics company Chartbeat, is trying to rethink the business model for news at his new startup, Scroll. Now he’s adding aggregation and curation to the mix with the acquisition of Nuzzel.

Scroll is still an invite-only product, but Haile explained the idea succinctly: “We deliver this amazing, clean, ad-free experience, and we do it for a low monthly price.”

In other words, after you subscribe and download Scroll, anytime you load up one of its partner sites (including USA Today, BuzzFeed and Vox), you should get an ad-free experience, which should work regardless of whether you’re accessing the site directly from your desktop or mobile browser, or from social media. In exchange, the publishers share the subscription revenue.

Nuzzel, meanwhile, was founded by Jonathan Abrams (who previously founded Friendster), and its core product allows you to see the stories that are most-shared by the people you follow on social media.

Haile said that by acquiring Nuzzel, Scroll can also start experimenting with different models for news curation — which is particularly important because if “we have just two algorithms determining who gets traffic and who doesn’t, then that’s not a healthy web ecosystem.”

“It’s really hard to [build] a scalable business as an amazing curation service,” he added. With Nuzzel, he hopes to “start finding ways in which we can build in that value and drive a new model for our user experience services.”

NEW YORK, NY – OCTOBER 01: Tony Haile speaks onstage at the Buyer Beware! panel during AWXI on October 1, 2014 in New York City. (Photo by Andrew Toth/Getty Images for AWXI)

That doesn’t mean existing Nuzzel users shouldn’t expect any dramatic changes to either the app or the newsletters — Haile said they will continue to operate as separate products, and his team is taking the approach of “first do not harm.”

However, Scroll does plan to remove any advertising from the newsletters, and the engineering team behind the Nuzzel Media Intelligence product will be spinning that out as a separate company.

The financial terms of the deal were not disclosed. According to Crunchbase, Nuzzel had raised $5.1 million from investors, including Salesforce CEO Marc Benioff. Scroll, meanwhile, has raised a total of $10 million.

Haile said there won’t be anyone from the Nuzzel team joining Scroll in a full-time capacity, though some of them may remain involved as contractors. Abrams, meanwhile, told me via email that he and Nuzzel COO Kent Lindstrom are starting a new, yet-to-be-announced company.

“I think current Nuzzel users should see this as great news, since Scroll wants to make sure that Nuzzel’s services continue to operate,” Abrams said. “As you know, a lot of other news app and news aggregation startups were unfortunately shutdown between 2015 and 2018, so like I said, this is good news for Nuzzel users.”

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Nov
30

Electric-car owners in China are worried their vehicles are sending their locations to the government

Christopher Gavigan, sitting in a crisp white shirt inside a small TechCrunch conference room, radiates energy, even in a late-day interview just hours before he’s scheduled to fly home from San Francisco to L.A.

We’re meeting to talk about Prima, a new startup that Gavigan began developing seven months ago with two co-founders. One of them is a former beauty and marketing executive, Jessica Assaf, who was until recently running a company called Cannabis Feminist to sell marijuana wellness products at her L.A. home. The other is Laurel Angelica Myers, who’d spent six years working alongside Gavigan at his last startup, The Honest Company, the now eight-year-old brand that sells nontoxic personal care and household products at Target, Whole Foods, Nordstrom and many other places.

Gavigan is still Honest’s “chief purpose officer” and its most effective evangelist, one quickly gathers. But he’s gotten excited in recent months about a new opportunity that many others are beginning to chase, too: the market for products made with cannabinoids of CBD, a compound that can be derived from both cannabis and hemp plants and which has taken off since industrial hemp cultivation was made legal in the United States last year.

Prima, based in Southern California, is creating a spate of products around hemp cannabinoids that Gavigan manages to make sound magical. He talks of taking the “best organically grown hemp out of Oregon” and using a “very gentle, slow extraction process” to get it into an oil and distillate form that it will then use to create consumer products, starting with “emerging beauty and pain management” for the skin and a “luxurious facial oil,” noting that a “lot of these cannabinoids do a great job with moisture retention and irritation and redness reduction.”

Prima also plans to introduce ingestible products, including a soft gel and mix-in powdered blends that can be used to pour into coffee or tea or water. One will be focused on immunity, another on sleep, another on energy.

None of these products are available for sale today, it’s worth noting. Prima isn’t even sure yet of its packaging, though it sounds like a thicker card stock will be involved.

Still, Gavigan paints a sufficiently compelling picture that the company — which plans to sell directly to consumers via a content-rich site designed to educate while it persuades — has already raised roughly $3.3 million in seed funding. Lerer Hippeau led the round, with participation from Greycroft and other (undisclosed) private and institutional investors.

It’s easy to understand why they are already buying in. Broadly speaking, Prima has a good story as a science-driven plant wellness company that’s championing the strong therapeutic potential of hemp CBD, even if the jury is still out on whether that potential is real or imagined. Given that there is no go-to brand quite yet, its timing actually looks impeccable on this front.

Prima is also registered as a public benefit corporation, which means in addition to its corporate goal of maximizing profit for shareholders, its charter commits the company to spending some of its profits or resources (or both) in support of a specific public benefit. In Prima’s case, that will be invested in cannabis-related research initiatives. Consumers might like this, too.

Yet Gavigan himself may be the company’s best weapon. Having spent much of his career selling natural and “green” products, he understands toxic and questionable ingredients. He also says he loves “very nascent, stigmatized markets” and is well aware of the standards that users expect of them, particularly when the end product is more costly. The Honest Company has fought numerous battles over the years, owing to its marketing, getting sued over its sunscreen (which it later reformulated), its baby formula (the company fought back and a court ruled in its favor) and its laundry detergent and dish soap (it settled a class action lawsuit that claimed it misled buyers about their ingredients).

He also knows how to talk to consumers looking to make better choices on behalf of themselves.

Pictured left to right: Laurel Myers, Christopher Gavigan and Jessica Assaf

The bigger challenge right now for Prima, along with other CBD brands, might simply be convincing regulators that their products are, at a minimum, safe to use. Right now, that’s no small feat.

In New York City, health departments are stopping restaurants from serving CBD-laced foods to their customers. The L.A. County Department of Health similarly said it would ding restaurants for using CBD in their food and drink offerings. As a new story in The Atlantic notes, while CBD can be derived from both cannabis and hemp plants, the FDA has said it will treat CBD the same no matter which plant it comes from, which is to say, it considers both illegal as additives in consumer food products.

Gavigan knows well of this uphill battle, though he also is convinced of the promise of CBD, spending 20 minutes with this reporter outlining the research he has pored over and that suggests promise in numerous areas, including in treating epilepsy. (Last year, the FDA approved an oral CBD drug called Epidiolex for the treatment of seizures associated with two rare and severe forms of epilepsy.)

He points to researchers at Mount Sinai and UCLA and UC Irvine among other places who are currently studying cannabinoids for pain, inflammation, stress, anxiety and insomnia.

Without standards, it could be difficult for any brand to move forward in a meaningful way. In fact, a California-based attorney with whom The Atlantic spoke tells the outlet that the current lack of standardization is what’s making regulatory agencies so nervous about CBD. “If you go buy a CBD beverage and it’s not specially packaged—it just looks like another coffee or whatever—someone might take a sip who doesn’t intend to,” he says.

Still, creams and oils are still on the table while they figure it out. And with the CBD market expected to grow to $22 billion by 2022 — outpacing marijuana — it’s looking smart for Prima and other brands that are barreling forward, hoping theirs is the name that will stick.

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Aug
09

Trump is reportedly planning an attempt to regulate Facebook and Twitter over alleged anti-conservative bias (FB, TWTR)

Substack started out by providing individual writers and publishers with a set of tools enabling them to charge a subscription fee for their newsletters. Now it’s giving them the ability to do the same thing with podcasts.

In fact, Morgan Creek Digital Assets founder Anthony “Pomp” Pompliano is already using the platform to introduce a daily podcast to complement his existing crypto-focused Off the Chain newsletter.

“We’ve always thought the magic of what Substack is doing is the fact that we’re disintermediating the people creating stuff and the people who are consuming it — you are the brand they’re paying for,” Substack CEO Chris Best told me. “That whole model works incredibly well for newsletters, and to us, there’s no reason why it wouldn’t be a great model for podcast content.”

Substack’s podcasting capabilities will allow publishers to either offer a podcast-specific subscription — or, like Pompliano, include it as part of a broader package with their newsletter subscription. The podcast itself will be distributed through an audio player that can be embedded in both newsletters and on the web.

A web-based audio player might seem like a clunky way to listen to podcasts, but Substack’s player (which you can try out here) works pretty smoothly and includes features like the ability to jump backward and forward 30 seconds, and to play podcasts at various speeds.

Best added that he’s also open to the idea of creating a private, subscriber-only feed that can be accessed by podcast apps.

“We’re going to put it out there and see what people want,” he said. But he argued that the “existing feed-based podcast system” is “not living up to its potential” when it comes to enabling podcasters to make money from subscriptions.

We spoke shortly after Spotify announced that it was acquiring podcast companies Gimlet and Anchor, which Best said illustrates the importance of a tool like Substack, because it’s focused on “empowering individuals”: “We let people get paid directly by people, rather than aggregated into a wider system.”

I also brought up the patronage model for supporting content creators enabled by Patreon (which is currently how I support one of my favorite podcasts).

“We definitely think the world is big enough for both of those things,” Best replied. While he expressed admiration for the Patreon model, he argued, “There’s also room for another kind of thing, where you say, ‘Hey, I’m doing this professionally, it’s my job, I do a good job with it and you should pay for it.'”

And Best doesn’t intend to stop with newsletters and podcasts. There are plans to support other media formats, although the exact timing will depend on Substack’s customers.

“We are hyper-focused on serving the authors that we’re working with,” he said. “The timing tends to depend on when we find people that want to do it. Why we did the podcast thing now [comes from] Pomp wanting to do it now.”

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Dec
01

1Mby1M Virtual Accelerator Investor Forum: With Shuly Galili of UpWest Labs (Part 1) - Sramana Mitra

By now, most of us should be familiar with the concept of the tailored news feed. Right now my Facebook feed (yes, I’m still there, alas) has been messed up because I’ve clicked on too many posts about Brexit, but I digress. My point is that content has long since fallen to the tyranny of tailoring and personalization, and content marketing (that stuff that marketers like to pass off as editorial) is a big business. Making that content so enthralling as to be practically addictive is the aim of this industry, but right now all those poor copywriters have to do a lot of manual heavy lifting. Such is their burden.

This is the problem DataSine is trying to address by tailoring content to the reader’s personality. It does this by applying machine learning to behavioral data they hold about that person, whether it be customer profiles or whatever.

The idea is that marketers then make more informed decisions about what content they push out, and thus can spend more time being creative rather than spending time on writing, tweaking and A/B testing.

DataSine has now raised $5.2 million in a Series A round led by U.K.-based VC Pentech Ventures and Propel Venture Partners. Other investors include C.Entrepreneurs/Cathay Innovation, Twin Ventures and Sistema_VC. Customers include BNP Paribas and the Tinkoff bank. DataSine claims it has helped achieve uplifts of up to 80 percent in engagement and 71 percent in sales.

DataSine’s content-personalization platform is called Pomegranate. The company says it provides an AI-powered content-editing platform to guide marketers in tailoring a range of content elements, including words and images. The idea is that it will personalize everything from emails and landing pages to call center scripts. Pomegranate will launch in March, and it integrates with CRMs like HubSpot and email platforms like MailChimp .

Founder and CEO Igor Volzhanin says he launched DataSine after moving to London to do a PhD in psychology because he believed “that personality can help companies understand their customers as a whole… and move beyond the traditional focus of click optimization.”

According to Boston Consulting Group, personalization is worth an extra $800 billion in business to the 15 percent of companies that manage to get it right.

Marc Moens, a partner at Pentech, commented that “DataSine is particularly well-positioned to bring psychology and AI to address contemporary marketing challenges. The idea that digital communications can be tailored for an individual in the age of Big Data is very appealing and addresses the needs of the market.”

The company’s competitors include Meniga, The Signal Open Data Platform, Adapti, Textio, Crobox VisualDNA and Hello Soda. But Volzhanin says their approach differs from most of these in using a single customer profile, collaborative AI and a psychological approach. “We bring together AI and psychology to provide our recommendations. We do a lot of proprietary, cutting edge research to understand what kind of content different people like and use AI to power Pomegranate to provide these recommendations to marketers,” he told me.

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Jul
12

Octi raises $7.5M to create augmented reality that understands human movement

It isn’t super common to find two entrepreneurs in one marriage, especially two entrepreneurs that want to work together. But married couple Rob and Monica Royer are making it happen with a new collaboration between Interior Define and Monica + Andy.

Interior Define, founded by Rob Royer, looks to offer super customizable, high-quality furniture at an affordable price point. Users can pick the style of their furniture and the materials used, and even can specify dimensions to ensure that their stuff fits perfectly in their space.

Monica + Andy, on the other hand, founded by Monica Royer and Brian Bloom, launched in 2014 to provide high-quality baby and children’s apparel, all of which is made with Global Organic Textile Standard-certified cotton. Both Interior Define and Monica + Andy are digitally native brands, but both have various physical guide shops across the country.

One of Monica + Andy’s claims to fame is the brand’s limited-edition prints. With that in mind, Monica and Rob Royer hatched a plan to collaborate on child-sized furniture using fun Monica + Andy prints. The children’s furniture is real furniture, shrunken down, according to Rob Royer. However, the slip covers are 100 percent washable to ensure that kids can still play happily without completely destroying the furniture in the play room.

“To be brutally honest, working together as married, founding CEOs is probably a really bad idea and I do not recommend trying this yourself,” said Monica Royer with a laugh. “But we stumbled into it with this idea, and we’re incredibly passionate about the brands we’ve created. And we have a unique understanding of each other, both as partners, but also as fellow founding CEOs.”

Rob and Monica said that part of the reason the collaboration made sense is because of the faith they have in their teams to execute.

“We both have fantastic teams,” said Rob Royer. “Teams are the ones that do all of the great work. We came to the table with an idea and our teams were the ones who really executed on the vision.”

The children’s furniture, which includes chairs, love seats, couches and even sectionals, will be sold through the Interior Define website, but Monica + Andy will be selling extra throw pillows through the M+A website.

“We cut our teeth on children’s apparel,” said Monica Royer. “To expand into additional product categories is a unique opportunity for us in general, but it’s made better by working with a brand that aligns from a customer experience, aesthetic and team perspective.”

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Feb
07

1Mby1M Virtual Accelerator Investor Forum: With Susan Stone of Sierra Wasatch Capital (Part 4) - Sramana Mitra

Sramana Mitra: But I think Mighty Network is not just for entrepreneurs. I’ve talked to Gina about this. It’s also about educators who want to run their own courses and they want conversations around...

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Original author: Sramana Mitra

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Jun
18

Join us for a live Q&A with Plaid CEO Zach Perret right now

This is the final post (18) of the Techstars Mentor Manifesto. As with item 17, Jay Batson, a long-time Techstars Boston mentor, nudged me several times to finish this up and wrote a draft from his perspective. Following is item #18 of the Techstars Mentor Manifesto, in Jay’s words.

During one of the Techstars Boston cohorts where I’ve been Mentor-in-Residence, I worked with a 20-something CEO founder (code named Mary) who, shortly after raising a seed round of several million dollars, hired a high-powered exec, granting a significant equity option. This new hire was a commercial hustler (code named Scott), moving quickly and broadly to try to secure customers and partners, including some of the tech industry’s largest companies.

Mary had never managed somebody a decade senior to her and was struggling to manage Scott. Further, Scott tended to work autonomously, sometimes doing things outside his remit that was not well-communicated to Mary. As a result, Mary was worried about how this looked to her board. A massive sense of imposter syndrome started creeping in, especially since Mary felt investors had bet on her, yet Scott was having a notable impact, for better and worse, on the strategy and success of the business.

Mary was concerned that the investors thought she wasn’t being effective. A fear was brewing in the pit of her stomach and she worried that everything was going to come apart.

Pause for a moment. Recall the last time you had a consuming passion. Remember how it felt. Think about that incredibly exciting idea that grabbed you and took over your mind, time, priorities, and emotions. Remember how excited you were as you imagined all the threads of what could be, and how your heart beat faster and your adrenaline surged.

And then … you had an existential crisis. A moment when you feared that this awesome future might come crashing down because of a particular situation or the actions of one person. Your heart beat faster again, but this time out of worry, anxiety, and fear.

I want you to replay your joy and fears again for a moment. Having empathy requires you to feel what the other person is going through. To put yourselves in their shoes and feel their fear. And to not immediately try to fix it. Remembering your own hopes and fears will help you have empathy. And this is critical as a mentor because startups are extremely hard.

In the situation above, I could relate to Mary feeling imposter syndrome. My first venture-backed company was not a big exit, and neither I nor my investors fared well. So I felt some imposter syndrome when founding my second venture-backed company (which, happily, has done well.)

So what Mary needed from me as a mentor was to talk to a neutral third-party who understood how technology companies worked and who had felt the expectations placed on a founding CEO. She needed to talk openly about how she was feeling to someone not on her board or exec team, and to whom she could be fully and safely transparent.

Doing that first allowed us to get around to eventually discussing ways to handle the situation. I reminded Mary that first and foremost, Techstars mentors are here to coach her on how to manage athletes like Scott, so she should relax and look for help. She had time to handle the situation if Scott was indeed a problem, as his option grants had a one-year cliff and he was only a couple of months in. So, instead of feeling anxious and pressured into reacting, I encouraged Mary to focus on helping Scott be successful and assess things again in a quarter.

Several years later, after the company, led by Mary, was acquired and had a very successful outcome, she told me that the most memorable and important thing I did for her at that moment was to simply sit, listen, and relate to the feeling she was having. I hadn’t immediately replied with a solution to her problem. Instead, I started with empathy.

As a mentor, be aware when to suspend, or defer, your advice or judgment. The entrepreneur you are mentoring may not be in a head space to hear your solution. Mentoring is often an emotional rather than a functional or intellectual role. Take a breath and be empathetic, instead than jumping in to solve the problem. And never forget that startups are hard.

Jay Batson has been the founder of four companies, including two venture-backed startups, with some big success and disappointing failure. His biggest success is as founding CEO of Acquia, now an 800+ person company with offices around the globe. In 2012, Jay invented the “Mentor-in-Residence” role at Techstars. MIR’s spend near-full-time at Techstars during each cohort to help as extensively as possible with companies and help other Mentors be good at it. Jay has embraced this responsibility for every Boston cohort since then. He’s an LP in several Techstars funds and a direct investor in a selection of Techstars companies.

Also published on Medium.

Original author: Brad Feld

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Feb
07

Google Surpasses Expectations, But Investments Hurt Profits - Sramana Mitra

Earlier this week, Google’s parent Alphabet (Nasdaq: GOOG) reported its fourth quarter performance. While the company surpassed market expectations for the quarter, rising costs and lower advertising...

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Original author: MitraSramana

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