Feb
02

Everything you need to know about Gavin de Becker, the security expert leading Jeff Bezos' investigation into his leaked text messages (AMZN)

In January, the National Enquirer published leaked text messages between Amazon CEO Jeff Bezos and former TV anchor Lauren Sanchez, as part of its investigation of their alleged affair.

Now, Bezos has tasked his personal chief of security, Gavin de Becker, with tracking down the party (or parties) responsible for the leak, reports the Daily Beast. In particular, he's said to be investigating the possibility that Michael Sanchez, Lauren's brother, was involved.

The 64-year-old de Becker is an established security expert, who founded a private security firm used by federal agencies to protect government officials and public figures. He's also something of a celebrity in his own right: De Becker consulted in the criminal prosecution of OJ Simpson, wrote a New York Times-bestselling book, assisted President Ronald Reagan with security, and made two appearances on "Oprah" to discuss his work.

Here's everything you need to know about Gavin de Becker, and his investigation into the leaked texts:

Original author: Paige Leskin

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Feb
02

February 14 – 431st 1Mby1M Mentoring Roundtable for Entrepreneurs - Sramana Mitra

Entrepreneurs are invited to the 431st FREE online 1Mby1M mentoring roundtable on Thursday, February 14, 2019, at 8 a.m. PST/11 a.m. EST/5 p.m. CET/9:30 p.m. India IST. If you are a serious...

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Original author: Maureen Kelly

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Feb
02

Nintendo just revealed its top 10 best-selling Nintendo Switch games, and you'll never guess what's in first place

Nintendo's Switch console is less than two years old, yet it's already moved over 32 million units as of December 31, 2018. For some quick context, it took Sony two full years for the PlayStation 4 to top 30 million units sold.

Even crazier: The company has a staggering five games with over 10 million copies sold.

In the latest financial filing from Nintendo, we got a closer look at the 10 best-selling games Nintendo has already released on the Nintendo Switch.

Here's the rundown:

Original author: Ben Gilbert

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Nov
27

You can save $60 on an Amazon Echo bundle that comes with a pair of smart light bulbs today

In 2016, something roughly the size of a skyscraper emerged from deep space and careened toward the inner solar system.

The mysterious object flew within about 15 million miles of our planet on October 14.

But it wasn't until four days later that humanity finally spotted it in telescope data. By then, it was moving away from the sun at a speed of more than 110,000 mph. It took days for astronomers around the globe to point every tool they could in its direction.

Astronomers initially called their unprecedented catch "1I/2017 U1," with "I" standing for interstellar — or from another star system. The object was later dubbed 'Oumuamua, a Hawaiian name that's pronounced "oo moo-uh moo-uh" and means "a messenger from afar, arriving first."

'Oumuamua remains one of the most significant, confounding, and at times contentious astronomical discoveries in recent memory. Little is definitively known about its composition, mass, shape, or dimensions — it may be a 3,300-foot-long cigar, a city-block-size pancake, or something in-between.

"This one's gone forever. We have all the data we're ever going to have about 'Oumuamua," David Trilling, an astronomer at Northern Arizona University who led Spitzer Space Telescope observations of the object, told Business Insider. "Now it's trying to understand if we can tell a story. Do we know what's going on?"

Read more: Smart aliens might live within 33,000 light-years of Earth. A new study explains why we haven't found them yet.

Enough doubt surrounds 'Oumuamua that at least one reputable astronomer and a few of his colleagues continue to speculate about potential alien origins. But nearly all other experts who have studied 'Oumuamua say the aliens hypothesis is extraordinarily unlikely.

Here's what we know about 'Oumuamua, why it probably isn't alien, and how astronomers are preparing for another interstellar object to unexpectedly sail through our solar system.

How astronomers found and measured 'Oumuamua

A view of the Pan-STARRS observatory in Hawaii.University of Hawaiʻi at Mānoa (via YouTube)

Researchers in 1976 predicted that other star systems were likely ejecting big asteroids and comets and flinging them toward our solar system, suggesting we could perhaps spot some in the future.

But the most recent estimate of how often such interstellar vagabonds would pay us a visit (and be detectable) was "bleak," according to the authors of a study published just months before 'Oumuamua was discovered. The odds, in fact, were low enough that practically no one was overtly looking for these space objects.

Then on October 19, 2017, Robert Weryk, a postdoctoral student at the University of Hawaii, discovered 'Oumuamua somewhat by accident.

Weryk was perusing a batch of data collected by an observatory called Pan-STARRS (Panoramic Survey Telescope and Rapid Response System) that sits atop a mountain in Maui. The observatory scans the entire sky each night, allowing astronomers to compare fresh data to the previous evening's. Anything that's bright enough to detect and moving will thus stand out.

As Weryk told The Atlantic in November 2017, he initially thought the object was a typical asteroid. But after a glance at the previous evening's data, he realized it was unusual.

"I'd never expected to find something like this," he said.

Calculating the exact path of 'Oumuamua took about a week. The math showed it was an object from beyond — way, way beyond. Its orbit was "unbound" or loop-less, and it was making a checkmark-shaped trip through the solar system. It had entered from above the plane of the solar system, dipped close to and below the sun, and was exiting out the top.

This realization prompted Weryk, fellow astronomer Karen Meech, and others to launch a global effort to observe 'Oumuamua with as many powerful telescopes as possible before it vanished. More astronomers eventually followed suit, though with some delay.

"I was caught off-guard, and I think a lot of astronomers were, too," Trilling said. "It took a while for many of us to think, 'I should go look at it.' The delay was people thinking, 'Naw, it couldn't be from another solar system.'"

Because of this element of surprise, and the fact that world-class observatories are scheduled months or years ahead, it took a week or more for powerful telescopes to start looking at 'Oumuamua. Hubble didn't observe it until November 2018, then again before the object vanished from sight in January 2018.

No telescope resolved its shape in any discernible detail, though. One observatory was equipped to do so — the Arecibo Radio Telescope in Puerto Rico — but nature had other plans.

"Unfortunately, the Arecibo Observatory missed the opportunity to determine the actual shape of 'Oumuamua due to Hurricane Maria, really bad timing," Abel Méndez, an astrobiologist at the University of Puerto Rico, told Business Insider.

Is it a comet, asteroid, or something else?

An artist's depiction of interstellar object 'Oumuamua.ESA/Hubble; NASA; ESO; M. Kornmesser

The observations that were made suggest 'Oumuamua has a fairly uniform surface, is relatively dark, and has a reddish color (which is not unusual for deep-space objects).

Lacking any detailed photograph of 'Oumuamua, astronomers resorted to studying its brightness as the next-best method to deduce its shape. This is because any side of an object that faces the sun will reflect light; a longer side tends to reflect more light than a shorter side because it has a greater area. Repeating changes in brightness can also betray the rough dimensions and 3D-motion of a space object.

Early calculations suggest 'Oumuamua tumbles about once every eight hours and has a cigar-shape, with a large-to-small-dimension size ratio of roughly ten to one. That is abnormal.

"The most extreme bodies we know of in the solar system are three-to-one," Trilling said.

Another peculiarity is that in January 2018, on its way toward interstellar space, 'Oumuamua deviated from its predicted path by about 25,000 miles.

If 'Oumuamua were a typical comet, this might explain its change of direction: Comets that drift close to the sun warm up, which causes internal gases to evaporate. The shooting jets of these gases can act like small rocket engines, altering the path an object travels and the way it tumbles.

In such cases, the evaporating gases form a tail behind the rock. They can also cause big chunks of a comet to break off. But no tail or break-up of 'Oumuamua was definitively seen.

There was also another surprise from the Spitzer Space Telescope: It did not detect a heat signature. The fact that Spitzer was unable to detect that heat suggests 'Oumuamua is somewhat shinier than a normal object, since less warmth being absorbed means more sunlight is getting bounced away.

Trilling said "shiny" is relative, though —'Oumuamua could be as dark as "dirty slush" in a gutter, and that would be shinier than expected.

"We're not talking about a ball of tin foil flying through space," he said.

However, an extraordinary possibility — an unnatural object — did occur to some researchers, a few of whom chose to test the idea against the limited observations.

Why it's probably not aliens — just a 'slightly weird' rock

Comet 67P/Churyumov–Gerasimenko as seen by the Rosetta spacecraft on October 9, 2015.ESA/Rosetta/MPS for OSIRIS Team MPS/UPD/LAM/IAA/SSO/INTA/UPM/DASP/IDA

Avi Loeb, the chair of Harvard University's astronomy department, took the peculiarities of 'Oumuamua as reason to pursue the remote possibility that 'Oumuamua might be alien in origin.

In December 2017, Loeb directed Breakthrough Listen (an effort to listen for alien signals that Loeb helps run) to point radio antennas toward 'Oumuamua. No alien communications were detected.

In October 2018, Loeb and a colleague wondered in a study whether the object might have a more extreme pancake-like shape. Based on mathematical analysis, they suggested it could perhaps be as thin as a sail that could be pushed by light (also called a lightsail), which might also explain the 0.1% change in direction found by Hubble.

Read more: A startup is developing a 100-gigawatt laser to propel a probe to another star system. That may be powerful enough to 'ignite an entire city.'

Most recently, Loeb and an undergraduate student published a brief study suggesting 'Oumuamua might actually have a 50-to-1 size ratio if it's cigar-shaped, or a 20-to-1 ratio if it's more of a pancake.

Loeb defends his pursuit of the idea as a valid scientific argument, given the data available. In a blog post at Scientific American, he wrote that humans spotting alien technology "might resemble an imaginary encounter of ancient cave people with a modern cell phone," at first interpreting it as "shiny rock" and not a "communication device."

However, Olivier Hainaut, an astronomer with the European Southern Observatory, told Business Insider that Loeb's latest paper is based on a misunderstanding of brightness data from a study that Hainaut co-authored. Hainaut added that Loeb's conclusions "collapse" when the uncertainty of the data is taken into account. Loeb and a co-author disputed this, claiming the uncertainty is not as great as Hainaut said.

Many researchers interviewed by Business Insider also noted that because the observations of 'Oumuamua were relatively distant, limited, and filled with gaps, there's not nearly enough data to reasonably make extraordinary claims (which, as Carl Sagan once quipped, require extraordinary evidence).

Hainaut thinks the object is most likely a "slightly weird" space rock, as does Trilling.

"All of the evidence is consistent with a rock," Trilling said. "We've never seen an alien spaceship — we have no idea what that evidence would look like. So I think it's just a rock."

Trilling said he accepts the possibility, however remote, that Loeb and his colleagues' "extreme" ideas could eventually be borne out.

"I don't have any direct evidence that says it has to be a rock and it cannot an alien spacecraft," he said. "The only way to do that is to go visit it."

But for now, Trilling explained that it's most logical to side with hundreds of years of astronomical research.

How to catch the next 'Oumuamua

A Falcon 9 rocket built by SpaceX launching a satellite into space.SpaceX/Flickr (public domain)

Since 'Oumuamua, astronomers have made adjustments at major observatories to allow for more rapid-turnaround observations of the next rare interstellar object that comes to town.

"With this one, we were taken fairly by surprise," Hainaut said, adding for the next one: "We are ready."

The research community has also reconsidered how often things like 'Oumuamua might visit the solar system. Trilling and others published a study suggesting that current observatories may see an interstellar interloper about once every five years. By the mid-2020s — after new telescopes come online that are designed to look for Earth-threatening asteroids— they might be spotted at a rate of once per year.

This, in turn, has led multiple groups of researchers to wonder if a small spacecraft could be readied to chase down another interstellar visitor like 'Oumuamua and study it up-close. Hainaut is part of one of the groups researching that idea.

"We had a workshop on this in October, and at the beginning of the workshop we said, 'This is impossible.' But after one week of hard work, we realized it's not impossible anymore, it's just difficult," Hainaut said. "Impossible? That's a problem. Difficult? As a first approximation, that just means expensive."

There's also a chance that, decades from now, a project called Breakthrough Starshot that Loeb is part of might resolve the question of what 'Oumuamua is and is not.

Starshot aims to propel tiny spacecraft to another star system with powerful lasers, perhaps at around 20% the speed of light. Such robots could also hypothetically be sent to catch up to 'Oumuamua in deep space.

"The Breakthrough Starshot is extremely interesting. The problem is that the laser technology that is required is far from being ready," Hainaut said. "I hope it will be one day."

This story has been updated.

Original author: Dave Mosher

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Feb
02

Check out the $600 million Alabama factory where Airbus builds jets for American, Delta, and JetBlue

Over the last five decades, Airbus has developed into a global aviation giant. The European consortium and Boeing now make up the duopoly that dominates the global commercial aircraft industry.

But most people are not aware of the substantial manufacturing footprint Toulouse, France-based Airbus has in the US. This includes helicopters in Mississippi and satellites in Florida.

And then there's the crown jewel, the commercial aircraft final assembly line in Mobile, Alabama.

This is where the company produces Airbus A320-family jets for US customers such as American, Delta, Jetblue, Frontier, Spirit, Allegiant, and Hawaiian Airlines.

The Airbus A320-family of jets, which includes the A319, A320, and A321, is also assembled in Toulouse, France; Hamburg, Germany; and Tianjin, China.

Read more: The amazing story of how the Airbus A320 became the Boeing 737's greatest rival.

The European aviation giant first made its presence felt in Mobile with the establishment of the Airbus Engineering Center in January 2007 that has since helped develop systems for the Airbus A330, A350, and A380 airliners.

Back then, there were quite a few people within the company that questioned whether a Mobile campus was really needed, Airbus Group CEO Tom Enders recounted to reporters in January. There are "no longer" any doubters, Enders added.

In January, Airbus broke ground on a second final assembly line at its Mobile complex to build the new A220 airliner. The A220, previously known as the Bombardier C Series, is currently assembled exclusively in Mirabel, Quebec, Canada.

Read more: Boeing started a trade dispute with Canada, but Airbus and Alabama ended up being the winners.

The new Mobile A220 plant is expected to produce four planes a month, Airbus Americas CEO Jeff Knittel told reporters.

Shortly, after the groundbreaking ceremony, Business Insider got the chance to step inside the A320 plant.

Here's a closer look at the Airbus A320-family production facility in Mobile, Alabama.

Original author: Benjamin Zhang

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Feb
02

Amazon's earnings included a negative number, but the company said it doesn't matter (AMZN)

One stat in Amazon's fourth-quarter earnings reported raised some eyebrows.

It reported a 3% decrease in sales from physical stores compared to the same quarter a year prior. That appears significant, as this was the first year-over-year comparison Amazon had reported for Whole Foods since it acquired the grocery chain in 2017.

Amazon executives threw cold water on any speculation about a decline in sales at Whole Foods during the earnings call with analysts, however.

CFO Brian Olsavsky said the decline was mostly due to an accounting change. In the fourth quarter of last year, Amazon lined up Whole Foods' fiscal calendar with its own, resulting in five extra days of revenue in the fourth quarter of 2017.

Read more: Amazon tops Wall Street's holiday expectations, but offers weak sales guidance

Amazon also launched its Whole Foods grocery pickup and delivery services — which it offers through Prime Now — to cities across the country throughout 2018. Those sales are counted in Amazon's online revenue instead of with its physical store sales.

Adjusting for those two factors, Whole Foods sales are up 6% year over year, Olsavsky said during the call with investors.

That does leave the rest of Amazon's physical store initiatives, including Amazon Books, without any reliable way to discern sales growth or lack thereof. It'll be a while before we get any hard data on Amazon's fleet of Go or 4-star stores, both of which rapidly expanded in 2018 and are poised to grow further in 2019.

It also means that online sales at Whole Foods have likely boosted online sales, contributing to a rosier outlook than otherwise would have been reported. Analysts from Nomura Instinet wrote in a note to investors on Friday that Whole Foods sales contributed an estimated 1% of the 12.5% online stores sales growth.

Original author: Dennis Green

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Feb
15

386th Roundtable Recording On February 14, 2018: With Daniel Cohen, Viola Ventures - Sramana Mitra

As Apple plunged 30% late last year against a slew of bad headlines about China and iPhone demand, some of Jon Porter's clients had concerns.

Porter is the CEO of Three Bell Capital, a Los Altos, California firm that manages more than $1 billion for clients, mostly people in San Francisco, and that means people who work in technology.

Some of his clients were heavily invested in Apple, either from equity grants from years of working there, or as technology-focused investors looking for blue-chip stocks. Porter is a former Apple employee too, and based on his experience inside the company and following the stock, he sent an email to his clients.

The message? Relax. "The punchline is: don't lose sleep over this. Wait it out, and over time, Apple will be just fine," read the email.

"One reason I'm bullish on Apple is because Tim [Cook] is a very capable CEO. And he's one of the few people on the planet who I think is going to excel in an environment that has so many different business lines," Porter said in an interview with Business Insider. "He is surrounded by field generals and an executive team that are very very seasoned, many of them overlapping with Steve [Jobs'] tenure."

Turns out, many of the reasons Porter described in his email to clients echoes what Apple's leadership said on its earnings call on Tuesday. Since that call, Apple is up more than 7%.

Here's why Porter doesn't think you should freak out about Apple's recent slump:

Apple spends a lot on R&D and is poised to create new revenue streams

MacCallister HigginsPorter doesn't buy into the narrative that Apple's days of innovation are behind it.

"I would submit to you for their Apple's track record for coming up with the next new thing, to quote Steve Jobs, 'seeing around the corner' and understanding what consumers want, their track record for doing that is like 100%," Porter said. "They have a demonstrated track record of doing that, and they have a ton of talent and they invest, reinvest a ton of their profits back into R&D."

Some product lines that Porter sees Apple capitalizing on in the near future includes a streaming service to take on Netflix.

"Apple is gearing up to go head to head with Netflix and Amazon in content production. You see snippets in the news — so and so director was hired by Apple," Porter said. "But what you don't necessarily hear people talking about is what happens when Apple enters content production. That's an entirely new revenue stream."

He continued: "Yes, it's going to have a cost associated with it. But HBO, Amazon, Netflix have all made a ton of money essentially creating their own content. Once Apple enters that market, they have a lot of money they can spend to create high-quality content."

Another area where Porter sees Apple expanding and eventually making money from is Apple Pay.

"I can easily see a combination of Apple Pay that has an underwriting component to it whereby Apple's deploying its own cash in the form of a loan to buy its own products," Porter said. "What happens when those 900 million [iPhone users] start using Apple Pay and Apple starts tacking on a service fee like Venmo or PayPal? Now you've got a brand new revenue stream that didn't previously exist."

In the long run, Apple could be a big player in self-driving cars. It wouldn't be investing in "Project Titan" if it wasn't serious about making money from it, Porter says.

"Not much is public knowledge, but Apple didn't kill the autonomous vehicle program, and that means that they're actively working on something in that space. They'll eventually bring that to market — and that will have nothing to do with iPhone or iPads declining by one percent. These are complimentary revenue streams that are going to come in and add to the bottom line over time," he said.

Don't underestimate the dividend

Getty Another part of Porter's long case for Apple involves how much money it returns to investors.

"One of the reasons why I'm long-term bullish on the stock is because if you look at what Apple's done with their dividend, since they started paying dividends, they've increased it by 93 percent," Porter said. "And there is a lot more room to grow."

This makes Apple attractive to income investors or people who want to have the upside of a stable company like Apple — and then they get a 4% annual dividend on top of that.

"Apple has also gone in and initiated the mother of all share buybacks," Porter said. "In a lot of ways, Apple can and actually has influenced its own stock price by saying look, we're going to buy share back."

He continued: "A company that doesn't have a fundamental conviction that its shares are going to be worth more tomorrow than they are today doesn't back its own shares."

Would you rather have the S&P at 20 or AAPL at 13?

Markets InsiderUltimately, though, Porter believes that Apple is undervalued — especially compared to the rest of the market.

His general argument revolves around what's called a "PE ratio." If you're not familiar with it, the PE ratio is simply the market price of the stock divided by the last four quarters of income. The higher the price-earnings ratio, the more expensive the stock.

Apple's PE is far lower than the rest of the market.

"If you look at where the market is trading, the S&P 500, it's still hovering around 20, in terms of its PE ratio," Porter said. "If you look at Apple given the recent pullback it's hovering right around 13, which is exceedingly low for a company that has demonstrated the type of growth that Apple has over the last two decades."

That's not to say that Porter recommends having his clients put all their eggs into the Apple basket. His firm consistently recommends that his clients diversify out of heavily concentrated positions, but he believes that investors should do so intelligently, especially when it comes to stocks like Apple's, which have been on long, positive runs.

"I will take Apple against the S&P 500 every day of the week and twice on Sunday," he said. "Right now my message to everybody that's in our stable of clients, is sit this [pullback] out, because there's a lot of great stuff on the horizon, and the numbers support holding on to Apple versus the rest of the market."

Original author: Kif Leswing

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Feb
02

Tesla has booked two straight quarters of profits — here are the 5 biggest takeaways from that achievement (TSLA)

For years, Tesla patiently explained that it wasn't "demand constrained." Rather, it was "production constrained." This led the company to do stuff like down-sell the Model X SUV before it launched in 2015. The concern was that Tesla would stoke demand that it couldn't satisfy.

Demand actually became a serious potential problem when the Model 3 was unveiled in 2016 and promptly racked up over 400,000 pre-orders. That problem has only recently moderated, as Tesla has discovered that that pre-orders and actual orders are different things — and true, configured vehicle order means that Tesla has to build the customer's car.

By the numbers, Tesla now has neither a demand nor production problem. It sold almost 250,000 vehicles in 2018 — 150,000 more than in 2017. Its production capacity is now more or less aligned with what everyone always figured it could produce at its California factory, something like 400,000-500,000 vehicles annually.

What is now happening is Tesla watchers are fretting about ongoing demand. Some bears think it could be tapped out for the Model 3. Musk disagrees. He thinks Tesla can sustainably sell over 700,000 a year, with a dip to 500,000 in the event of a recession.

Tesla believes it has solid demands moving forward. What the company doesn't want is crazy demand. And this is where the confusion comes in.

In the car business, demands is great, but demand in excess of what you can reliably satisfy is bad. Lacking any sort of steady market-share situation — Ford, Chevy, and RAM can expect to sell around three million pickups every year in the US, while the electric-car market is still forming — Tesla doesn't want to confront demands that overwhelms its production footprint.

Excess demand, without historic precedent, would be unstable. It could bring weak competitors into the space and cause an electric-car market crash in the future. What Tesla really wants is demand that can be met by its two existing production frameworks. That would be 100,000 units annually for Models S and X and in the near term 300,000-400,000 on Model 3.

Original author: Matthew DeBord

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Feb
12

Axel Springer is investing in Magic Leap for some reason

I spent the week in Malibu attending Upfront Ventures’ annual Upfront Summit, which brings together the likes of Hollywood, Silicon Valley and Washington, DC’s elite for a two-day networking session of sorts. Cameron Diaz was there for some reason, and Natalie Portman made an appearance. Stacey Abrams had a powerful Q&A session with Lisa Borders, the president and CEO of Time’s Up. Of course, Gwyneth Paltrow was there to talk up Goop, her venture-funded commerce and content engine.

“I had no idea what I was getting into but I am so fulfilled and on fire from this job,” Paltrow said onstage at the summit… “It’s a very different life than I used to have but I feel very lucky that I made this leap.” Speaking with Frederic Court, the founder of Felix Capital, Paltrow shed light on her fundraising process.

“When I set out to raise my Series A, it was very difficult,” she said. “It’s great to be Gwyneth Paltrow when you’re raising money because people take the meeting, but then you get a lot more rejections than you would if they didn’t want to take a selfie … People, understandably, were dubious about [this business]. It becomes easier when you have a thriving business and your unit economics looks good.”

In other news…

Joseph Gordon-Levitt is an entrepreneur, too

The actor stopped by the summit to promote his startup, HitRecord . I talked to him about his $6.4 million round and grand plans for the artist-collaboration platform.

Deals of the week

Backed by GV, Sequoia, Floodgate and more, Clover Health confirmed to TechCrunch this week that it’s brought in another round of capital led by Greenoaks. The $500 million round is a vote of confidence for the business, which has experienced its fair share of well-publicized hiccups. More on that here. Plus, Clutter, the startup that provides on-demand moving and storage services, is raising at least $200 million from SoftBank, sources tell TechCrunch. The round is a big deal for the LA tech ecosystem, which, aside from Snap and Bird, has birthed few venture-backed unicorns.

The Pinterest IPO is really, actually happening

Pinterest, the nine-year-old visual search engine, has hired Goldman Sachs and JPMorgan Chase as lead underwriters for an IPO that’s planned for later this year. With $700 million in 2018 revenue, the company has raised some $1.5 billion at a $12 billion valuation from Goldman Sachs Investment Partners, Valiant Capital Partners, Wellington Management, Andreessen Horowitz, Bessemer Venture Partners and more.

Fundraising efforts

Kleiner Perkins went “back to the future” this week with the announcement of a $600 million fund. The firm’s 18th fund, it will invest at the seed, Series A and Series B stages. TCV, a backer of Peloton and Airbnb, closed a whopping $3 billion vehicle to invest in consumer internet, IT infrastructure and services startups. Partech has doubled its Africa VC fund to $143 million and opened a Nairobi office to complement its Dakar practice. And Sapphire Ventures has set aside $115 million for sports and entertainment bets.

Sam Altman has a new idea

The co-founder of Y Combinator will throw a sort of annual weekend getaway for nerds in picturesque Boulder, Colo. Called the YC 120, it will bring toget her 120 people for a couple of days in April to create connections. Read TechCrunch’s Connie Loizos’ interview with Altman here.

Hims gets unicorn status

Consumer wellness business Hims has raised $100 million in an ongoing round at a $1 billion pre-money valuation. A growth-stage investor has led the round, with participation from existing investors (which include Forerunner Ventures, Founders Fund, Redpoint Ventures, SV Angel, 8VC and Maverick Capital) . Our sources declined to name the lead investor but said it was a “super big fund” that isn’t SoftBank and that hasn’t previously invested in Hims.

a16z bets on VR — again

Five years after Andreessen Horowitz backed Oculus, it’s leading a $68 million Series A funding in Sandbox VR. TechCrunch’s Lucas Matney talked to a16z’s Andrew Chen and Floodgate’s Mike Maples about what sets Sandbox apart.

Here’s your weekly reminder to send me tips, suggestions and more to This email address is being protected from spambots. You need JavaScript enabled to view it. or @KateClarkTweets

More startup cash:Data governance platform Collibra raises $100M at a $1B valuationFabFitFun raises $80M for its growing lifestyle brandContentSquare, the digital experience insights platform, raises $60MPetal raises $30M from Valar to bank the unbanked with credit cardsVerbit raises $23M for its transcription service Dadi brings in $2M to democratize sperm storage An update on the Munchery fiasco

In a new class-action lawsuit, a former Munchery facilities worker is claiming the startup owes him and 250 other employees 60 days’ wages. On top of that, another former employee says the CEO, James Beriker, was largely absent and is to blame for Munchery’s downfall. If you haven’t been keeping up on Munchery’s abrupt shutdown, here’s some good background.

Scooter consolidation

Consolidation in the micromobility space has arrived — in Brazil, at least. Not long after Y Combinator-backed Grin merged its electric scooter business with Brazil-based Ride, it’s completing another merger, this time with Yellow, the bike-share startup based in Brazil that has also expressed its ambitions to get into electric scooters.

Listen to me talk

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase editor-in-chief Alex Wilhelm, TechCrunch’s Silicon Valley editor Connie Loizos and Jeff Clavier of Uncork Capital chat about $100 million rounds, Stripe’s mega valuation and Pinterest’s highly anticipated IPO.

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Feb
15

Lydia raises $16.1 million to become the PayPal of mobile payments

Former Uber CEO Travis Kalanick may have been nudged out of one of the world’s most highly valuable private companies by investors frustrated over its troubled culture, but his moves remain of great interest given how far he’d driven the rideshare giant.

One such move, according to a new report in the South China Morning Post, looks to be to help foster the growing concept of cloud kitchens in China.

We’ve reached out to Kalanick for more information, but per the SCMP’s report, Kalanick is partnering with the former COO of the bike-sharing startup Ofo, Yanqi Zhang. Their apparent project involves Kalanick’s L.A.-based company, CloudKitchens, which enables restaurants to set up kitchens for the purposes of catering exclusively to customers ordering in, as that’s how many people are consuming restaurant food in increasing numbers. (More on the movement here and here.) The kitchens are established in underutilized real estate that Kalanick is snapping up through a holding company called City Storage Systems.

According to The Spoon, a food industry blog, the trend is beginning to gain momentum in particular regions, including India, where it says many restaurants struggle to afford the traditional restaurant model, which often involves paying top dollar for rent, as well covering wages for employees, from dishwashers to cooks to servers. Using so-called cloud kitchens enables these restaurateurs to share facilities with others, and to do away with much of their other overhead.

Some are even being promised more affordable equipment. For example, according to The Spoon, the restaurant review site Zomato, through its now two-year-old service called Zomato Infrastructure Services, aims to create kitchen “pods” that restaurants can rent, and it’s using data to identify recently closed restaurants that may be looking to offload their kitchen equipment for whatever they can get for it.

Shared kitchens have also been taking off in China, as notes the SCMP, which cites Beijing-based Panda Selected and Shanghai-based Jike Alliance as just two companies that Kalanick would be bumping up against.

Kalanick wasn’t the first here in the U.S. to spy the trend bubbling up, but he seems to be taking it as seriously as any entrepreneur. Last year, he spent $150 million to buy a controlling stake in City Storage Systems, the holding company of CloudKitchens, through a fund that he established around the same time, called the 10100 fund. The money was used to buy out most of the company’s earlier backers, including venture capitalist Chamath Palihapitiya, according to a report last year by Recode.

That same report said that Kalanick now has a controlling interest in City Storage Systems. It also said that serial entrepreneur Sky Dayton — who previously founded EarthLink, co-founded eCompanies and founded Boingo — is a co-founder.

City Storage Systems isn’t interested in on-demand kitchens alone, reportedly. The idea behind it is to buy distressed real estate, including parking lots, and repurpose it for a number of online-focused ventures.

While the China twist looks like a new development, it wouldn’t be a wholly surprising move. Having had to back out of China with Uber in 2016, Kalanick may be of a mind to jump into the country faster this time around, and with a local partner with whom he has a relationship. Indeed, Zhang spent two years as a regional manager for Uber in China before co-founding Ofo, which has since run into problems of its own.

We’ve also reached to Zhang for this story and hope to update it when we learn more.

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Feb
01

430th Roundtable Recording on January 31, 2019: With Nandini Mansinghka, Mumbai Angels Network - Sramana Mitra

In case you missed it, you can listen to the recording here:

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Original author: Maureen Kelly

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Feb
01

1Mby1M Virtual Accelerator Investor Forum: With Jason Cahill of McCune Capital (Part 5) - Sramana Mitra

Sramana Mitra: The stratification that’s happening in the industry right now is creating a different dynamic. Earlier, a small fund would not even exist. Right now, smaller funds exist. The smaller...

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Original author: Sramana Mitra

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May
22

Uber and Lyft IPOs May Still be a While - Sramana Mitra

Juul Labs, the e-cig company under fire for its product’s popularity with young people, has brought on a new VP of Intellectual Property Protection with Adrian Punderson, formerly of PwC and Apple.

Punderson’s job is all about working alongside government agencies, as well as Juul Labs Intellectual Property VP Wayne Sobon, to combat the sale of counterfeit and infringing products. These can range from copycat vapes and pods that are actually marketed as Juul products all the way to products that are designed specifically to be Juul compatible without using the trademark.

These counterfeit and infringing products pose a serious threat to the company. Of course, no business wants its products infringed or its market share stolen.

With Juul, however, it’s far more complicated. Juul Labs is currently under heavy FDA scrutiny over the popularity of its products with minors.

“As you start to enforce generally on the sale of these types of products to youth, oftentimes they are going to look for another seller or distribution point of this product,” said Punderson. “The challenge is that oftentimes they’re going to platforms or places for this and you have no idea what the origin of the product is. A lot of it is counterfeit. So they get something they believe is Juul only to find out they have a counterfeit device or pod.”

He went on to say that, for Juul, a top priority is identifying counterfeit sellers and quickly putting that information into the hands of law enforcement. To the extent that they can’t take action, said Punderson, Juul will take civil action.

Part of the concern is that there is zero transparency into what ingredients are being used in infringing products, whereas Juul’s recipe at least meets the legal requirements for disclosure as it seeks full FDA approval.

Juul doesn’t currently have data around the scale of infringing products on the market, but counterfeit Juul products may inaccurately increase sales figures, intensifying scrutiny from the FDA.

Juul has already taken legal action against many infringing manufacturers and distributors, but Punderson aims to take Juul’s efforts against infringing products to a new level.

He sees the issue as threefold: Juul Labs must work to stop these products from being manufactured in the first place, ensure they aren’t allowed across borders into the country and take action against retailers who sell infringing products and remove them from the market.

“This isn’t a problem where there is only a production problem but there isn’t really a distribution or consumption problem,” said Punderson. “We don’t have the luxury of looking at the problem singly-faceted. From a global perspective, we want to stop the production and distribution of infringing products around the world, and we’ll work closely with government agencies attempting to stop illicit distribution of goods.”

Punderson previously served as managing director of IP Protection at PriceWaterhouse Coopers, VP of Global Anti-Counterfeiting/Anti-Diversion at Oakley and worked at Apple on the Intellectual Property Enforcement team.

Juul is currently viewed by many as a Facebook-ified, 2018 version of Marlboro. Notably, Juul Labs recently closed a $12.8 billion investment from Altria Group, the makers of Marlboro cigarettes. When asked why he chose to work for Juul, Punderson said his initial reaction was no. But after he did some research around the mission of the company, and thought of his own personal experience losing his father to emphysema, he came around quickly.

“I would do anything to get two or three more years with my dad, who was a lifelong smoker,” said Punderson. “[…] We’re trying to do good things here, move people away from tobacco and give them an alternative. To me, it’s a valuable, noble cause that’s worth being involved in and I’m proud to be here.”

It remains to be seen just how big of an issue infringing products are for Juul and other above-board e-cig makers, but Juul is ramping up its efforts to combat copycats from getting into the hands of consumers.

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Feb
01

Microsoft versus Amazon: What Acquisitions Could Move the Needle? - Sramana Mitra

Earlier this week, Microsoft (Nasdaq: MSFT) reported a mixed quarterly result. While revenues missed the market’s forecast, it managed to deliver a slight earnings beat. Its cloud business continued...

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Original author: MitraSramana

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Feb
01

Do NOT Go to VCs as Beggars – Go as Kings - Sramana Mitra

Negotiation is a straightforward game. You can only negotiate if you have options. A long time ago, when I was a young entrepreneur making my way in Silicon Valley, I found myself at the mercy of...

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Original author: Sramana Mitra

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Aug
15

Capital One breach suspect may have stolen data from at least 30 organizations — including companies and educational institutions — prosecutors say

In the early 2000s, actor Joseph Gordon-Levitt was frustrated with the roles he was being offered. Instead of starring in critically acclaimed indies, he was typecast as “the funny kid on TV” due to roles like Tommy from “3rd Rock from the Sun.”

So like anyone who matured alongside the internet, he created a website where he could ideate, produce and share his work. More than 10 years later, he wants to turn that pet project, called HitRecord, into a full-fledged technology company.

Onstage at Upfront Venture’s annual summit outside of Los Angeles, Gordon-Levitt announced a $6.4 million Series A funding to do just that. Javelin Venture Partners has led the round, with participation from Crosslink Capital, Advancit Capital, YouTube co-founder Steve Chen, Twitch co-founder Kevin Lin and MasterClass co-founder David Rogier.

Gordon-Levitt, known for starring in “Inception,” “Snowden” and, my personal favorite, “10 Things I Hate About You,” tells TechCrunch that HitRecord has a team of 24 employees, with himself at the helm as chief executive officer, co-founder Jared Geller serving as president and co-founder Marke Johnson as creative director. The trio plan to use the investment to transform HitRecord from a traditional production company to a new collaborative media platform.

The company provides an online portal for artists to work together on projects, “building off of each other’s contributions, to create things [they] couldn’t have made on [their] own.” If projects created within the HitRecord community are sold, the creators are paid based on their original contributions. Since 2010, HitRecord has paid its community roughly $3 million.

HitRecord hasn’t accepted outside capital, until now. Initially, Gordon-Levitt used his own cash to push the company forward, and for the last five years, the startup has been cash-flow positive. I sat down with Gordon-Levitt to learn more about what he’s been working on and why he decided to pursue venture capital dollars. The following conversation has been lightly edited for length.

TC: How do you explain HitRecord in one sentence?

JGL: It’s a collaborative media platform where people make all kinds of creative things together. I guess that’s one sentence, but if I can keep going… As opposed to places where people post things that they’ve made on their own, this is a place where people collaborate, right? So they submit their ideas onto the platform and then they find people who want to collaborate with them and then they’re able to make money if the projects [find] a buyer.

We’ve done all kinds of monetized productions, but I certainly wouldn’t include money in the third or fifth or even 10th sentence of why people come to HitRecord.

TC: HitRecord launched a decade ago… what inspired you to create it?

JGL: I started HitRecord as this little hobby message board with my brother and it grew very slowly. It came out of a time in my life when I wanted to be an actor and I wanted to be in sort of like more serious Sundance movies and everyone was like, ‘oh, but you’re the funny kid on TV’ and you know, it was really painful for me. I said, okay, you know what, I can’t just wait around for someone to give me a part. I want to make my own things. And I started making my own. I started making videos and songs and stories and stuff. And my brother helped me set up a website that we called HitRecord. We didn’t spend any money; we had no intention of making any money. It was just a fun thing we were doing.

So I’ve been working on something for years, along with everyone here @hitRECord. No joke—YEARS! Today’s the first day I’m talking about it… https://t.co/F0BYFupaor pic.twitter.com/OeCMkKhUFx

— Joseph Gordon-Levitt (@hitRECordJoe) January 31, 2019

TC: And now you want to expand it into a full-fledged tech platform. But… you’re cash-flow positive and you’ve built a solid community of avid users, why take venture money?

JGL: You know, it started as just a hobby that I was doing for fun. We launched it as a production company as a way to do more ambitious, creative things and do it with everybody. But if you talk to our users, what people really enjoy is having that experience of being creative and being creative with other people because I think honestly, being creative is really hard alone. Venture money will not only allow us to do even cooler productions, but it’ll also allow this whole other world and more people to participate.

TC: Now that you’re venture-funded, how do you plan on making money for your investors?

JGL: So historically, the way we’ve made money was as a production company, and the collaborative efforts of our community and our staff made money because we turned something into a TV show, or we licensed it to a brand or we did any number of things that generated revenue. [HitRecord partnered with Ubisoft earlier this year to allow artists and musicians to contribute their own content to be used in its game, for example.] So moving forward, as we grow into a collaborative platform, the idea is that it’s not just our staff that’s leading these projects and letting people collaboratively finish them. The idea is anybody could come to start their own thing and there will be better tools to self-organize and find your collaborators.

TC: And how do you better monetize once you’ve expanded your user base?

JGL: I think, look, we were not ready to talk about exactly how we would make money that way. I think we have a number of ideas. There are ways that the internet gets monetized these days that I think incentivize the wrong things like attention for myself and I don’t want to enter into a business model that incentivizes that kind of behavior.

Actor Joseph Gordon-Levitt attends the 2014 Creative Arts Emmy Awards at the Nokia Theatre L.A. Live on August 16, 2014 in Los Angeles, California. (Photo by Tommaso Boddi/WireImage).

TC: What was the process of raising venture capital like? Did being Joseph Gordon-Levitt make it a little less terrible?

JGL: I think, honestly, it was a double-edged sword. I think there was justified skepticism and people would assume that oh, I’m an actor so I can’t start a company and I faced a certain amount of that skepticism. I don’t blame anybody for having that. The assumption is that there’s not any substance behind the company or the idea, that it’s all sizzle and no steak.

But we’re also not really a startup, per se. It’s not like I was going into these offices and saying, like, I have an idea. It’s like, here’s what we’ve done for the last 10 years and we’ve been cash flow positive five years. We know how to run a business. It’s just we’ve been running a production company business, now we want to run something that’s more like a technology business.

TC: What’s your long-term vision for HitRecord?

JGL: My ultimate goal is for my acting career and HitRecord to kind of become one in the same thing. I would love to be, you know, developing a movie not for a Hollywood studio, but like in this new collaborative way for HitRecord. I mean, we won an Emmy for our TV show. We’re about to release this special that we’re doing with Logic, the rapper, and he used the platform to lead a collaboration and make a song and a music video and we documented the process and that special is going to come out on YouTube. What I really want is to be able to put an app in Logic’s hand where he goes like, oh, I understand this and is able to use it instantly. We don’t have that app yet. This is why we raised capital.

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Feb
01

Roundtable Recap: January 31 – Perspective From Mumbai Angels Network - Sramana Mitra

During this week’s roundtable, we had as our guest Nandini Mansinghka, CEO and Managing Director at Mumbai Angels Network, one of the oldest angel networks in India. Ownkicks For pitches, first up,...

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Original author: Sramana Mitra

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Feb
15

February 21 – Rendezvous with Sramana Mitra in Menlo Park, CA - Sramana Mitra

“KP used to be a small team doing hands-on company building. We’re moving away from being this institution with multiple products and really just focusing on early-stage venture capital,” Kleiner Perkins partner Ilya Fushman tells me. Indeed, 47 years after its founding, the storied venture fund is going “back to the future” with today’s announcement of an 18th fund — a $600 million fund for seed, Series A and Series B financings. It’s investing across consumer, enterprise, hard tech and fintech, looking for high-potential teams to help mold into unicorns.

Kleiner Perkins partner Ilya Fushman

“We went out to market to LPs. We got a lot of interest. We were significantly oversubscribed,” Fushman says of the firm’s raise.

Kleiner Perkins was recently rocked by the departure of legendary investor Mary Meeker. She took Kleiner partners Mood Rowghani, Noah Knauf and Juliet de Baubigny, and they’re reportedly raising a $1.25 billion growth fund called Bond. Fushman explained that with Kleiner refocusing on early-stage, their funds will be well-differentiated. “They’re going to focus on very late-stage growth,” while he described Kleiner fund 18 as a place where partners can “collaborate and create” alongside new startups.

Other trends Kleiner is seeking to invest in include better distributed work tools, infrastructure for technology businesses, shifts in the urban and economic landscape and security and identity tools to protect the software-enabled future. Recent early-stage investments from the firm have included tax and insurance safety net Catch and food stamps app Propel.

With the explosion of early-stage funds, competition for the best deals is cutthroat. Kleiner will have to trade on its reputation, the expertise of its founders and its extensive connections to lure in founders. If entrepreneurs think Kleiner can fund their mid-stage rounds like some seed funds can’t, or hook them up with potential acquirers whether things go peachy or pear-shaped, they’ll open their cap table.

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Oct
11

Roundtable Recap: October 11 – Global Startup Acceleration Networks are Growing - Sramana Mitra

Houzz, a $4 billion-valued home improvement startup that recently laid off 10 percent of its staff, has admitted a data breach.

A reader contacted TechCrunch on Thursday with a copy of an email sent by the company. It doesn’t say much — such as when the breach happened, or if a hacker is to blame or if it was a data exposure that the company could’ve prevented.

Houzz spokesperson Gabriela Hebert would not comment beyond an FAQ posted on the company’s website, citing an ongoing investigation.

In that FAQ, the company said it “recently learned that a file containing some of our user data was obtained by an unauthorized third party.” It added: “We immediately launched an investigation and engaged with a leading forensics firm to assist in our investigation, containment, and remediation efforts.”

The company said it was notifying all of its users who may have been affected.

An email from a Houzz user (Image: supplied)

Houzz said some publicly visible information from a user’s Houzz profile could be affected, such as name, city, state, country and profile description, along with internal identifiers and fields “that have no discernible meaning to anyone outside of Houzz,” such as the region and location of the user and if they have a profile image, for example, the company said.

The company also said that usernames and scrambled passwords were also taken.

Houzz said that the passwords were scrambled and salted using a one-way hashing algorithm, but did not provide specifics on what kind of hashing algorithm was used. Some algorithms, like MD5, are old and outdated but still in use, while newer hashing algorithms — like bcrypt — are stronger and can be more difficult to crack, depending on the number of rounds the passwords go through.

Regardless, the company recommended users change their passwords.

No financial information was taken, according to the FAQ.

The company last year was among many mocked for sending out emails to users alerting them of mandatory changes to their privacy policies ahead of the 2018-introduced EU General Data Protection Regulation (GDPR) law, saying it “value[s]” its customers privacy. “Their opening lines offer a glimpse of the way legal policy and user experience are colliding under the new regulations,” said Fast Company.

But it’s not clear if the company will face penalties — up to four percent of its global revenue — as a result of the regulation, only that the company “notified EU authorities within the statutory period,” said the spokesperson.

Another day, another breach.

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Aug
06

Raise, a startup building Africa’s Carta, gets backing from 500 Startups

A new mobile banking startup called Step wants to help bring teenagers and other young adults into the cashless era. Today, cash is used less often, as more consumers shop online and send money to one another through payment apps like Venmo. But teenagers in particular are still heavily burdened with cash — even though they, too, want to spend their money on things that require a payment card, like Amazon.com purchases or mobile gaming, for example.

That’s where Step comes in.

The company aims to address the needs of what it believes is an underserved market in mobile banking — the 75 million children and young adults under the age of 21 in the U.S., who are still being forced to use cash.

This market isn’t the “unbanked,” it’s the “pre-banked,” explains Step CEO CJ MacDonald, whose previous startup, mobile gift card platform Gyft, sold to First Data several years ago.

Above: Step CEO, CJ MacDonald

“We’re building an all-in-one banking solution that primarily focuses on teens and parents,” he says. “We want it to be a teen’s first bank account. We want to be a teen’s first spending card. And we want to teach financial literacy and responsibility firsthand.”

MacDonald, along with CTO Alexey Kalinichenko, previously of Square and financial services startup Token, founded Step in May 2018. The 10-person team also includes several prior Gyft employees.

Last summer, Step closed on $3.8 million in seed funding from Sesame Ventures, Crosslink Capital and Collaborative Fund. Crosslink general partner Eric Chin sits on the board.

While there are a number of mobile banking apps out there today — like Chime, Monzo, Simple, Revolut and others — Step will specifically target teens, 13 and up, and other young adults with its marketing. Teens under 18 still need parents’ approval to sign up, of course. But the goal is to encourage the teens to bring the idea to their parents — not the other way around.

Step’s focus on this younger demographic puts it in a different space, where there are fewer competitors. Its more direct rivals are not the bigger mobile banks, but rather startups like teen debit card and bank app Current, or the parent-managed debit card for kids from Greenlight.

The mobile banking service Step provides will also aim to be more comprehensive than just a debit card. It will offer a combination of checking, savings and a Visa card that works as both credit and debit.

The card includes Visa’s Zero Liability Protection on all purchases from unauthorized use, and allows parents to set spending limits.

Parents will also be able to connect their own bank accounts to Step to instantly transfer in funds, which can then be distributed to kids’ accounts for things like allowances and chores, or other everyday spending needs. Step’s bank account itself is backed by Evolve Bank, so it’s FDIC-insured up to $250,000.

Unlike Current, which charges a subscription to use its service, Step aims to be a fee-free bank for consumers. Users don’t have to pay for their account, and there are no fees for things like overdrafts. Instead, Step’s plan is to generate revenue through traditional means — like interchange fees and by way of lending practices, once it has established a deposit base.

The company pays a 2.5 percent interest rate on deposits, offers a round-up savings feature and a range of budgeting tools and supports free instant transfers between Step accounts. It also provides access to a network of 35,000 ATMs with no fees.

Beyond simply facilitating mobile banking, Step’s bigger goal is to teach teens to become financially responsible.

“Schools do not teach kids about money. A lot of families don’t talk about money. And it’s a crucial life skill that’s not really addressed properly when people are growing up,” says MacDonald, who says he was lacking in life skills in this area, even as a young college grad.

“There were ‘Money 101’ skills that I had not learned — that no one had talked to me about. Things like building credit, how many credit cards you should have, debt to income ratio,” he continues. “A lot of people get released into the real world without experience [in those areas],” he says.

Long-term, after solving the needs associated with everyday banking transactions, Step wants to layer on other products and services — like tools that allow a family to save together for college, for example.

The company is launching the banking service under an invite-only system to scale up.

Today, it’s opening a waitlist and referral program. When you invite a friend, you each receive one dollar. Access will then be rolled out on a first-come, first-serve basis this spring. Users can join Step through the website, iOS or Android application.

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