Jun
29

Personal Capital sells to Empower Retirement in deal worth up to $1B

Fintech startup N26 is growing quite rapidly. Building a startup is hard, but building a startup that manages your bank account is even harder given the increased scrutiny. German weekly magazine Wirtschaftswoche published an article that questioned N26’s identification processes. According to Wirtschaftswoche, it’s quite easy to create an account with a fake ID document.

“One or two people got through with a fake ID document. And we detected that afterward. Unfortunately, we didn't detect it in real time,” co-founder and CEO Valentin Stalf told me. “Unfortunately, it can happen.”

But Stalf also insisted that it’s not a widespread problem and that all banks face the same issue. According to him, N26 complies with all regulations when it comes to onboarding.

Currently, N26 has three different procedures depending on the country and works with a third-party company called SafeNed for some of the verification procedures.

In many countries, you can initiate a video call with someone so that they can check your ID and compare it with your face. In Germany, you can also print a document, go to the post office with an ID document and make a post employee check that you are actually you.

In some countries, you can open an N26 account by uploading a photo of your ID document and a selfie. Other banks also take advantage of this procedure. For instance, it’s a common process in the U.K.

More generally, other banks also have to deal with fake ID documents. But security is never perfect. That’s why you can’t simply eradicate the issue. You can try to keep the fake ID rate as low as possible.

“Security is our top priority at N26, which is why secure identification processes and constant review of our security and monitoring mechanisms to prevent identity theft are of great importance to the company,” the company told me in a statement.

In other words, N26 monitors this fake ID rate. And N26 also has ongoing transaction monitoring for those who have already opened a bank account. The company tries to detect fraudulent activity as quickly as possible.

You might think that uploading a photo of your ID document leads to more fraudulent activity. But N26 has noticed that there’s a higher fraud rate for customers who go to the post office to check their ID document.

So fraud is nothing new in the banking industry. Nobody has eradicated fraud, and nobody will. In fact, many startups (such as DreamQuark) are working on improving fraud detection using machine learning and more sophisticated processes. But even artificial intelligence won’t solve this problem altogether.

All eyes are on N26 because it’s the hot new thing. But if you look at what’s happening, it’s a pretty boring story. “In one of the articles they said we used weaker method to grow faster. This is complete bullshit,” Stalf told me.

This story is a great example that it can be tough to manage your startup’s reputation. Building trust takes a long time. But it can go away much more quickly. That might be why N26 debunked the issue so intensely.

Here’s N26’s full statement:

Security is our top priority at N26, which is why secure identification processes and constant review of our security and monitoring mechanisms to prevent identity theft are of great importance to the company.

After the customer’s identity is verified, we carry out ongoing transaction monitoring along with numerous other security measures, in a bid to prevent criminal activity such as money laundering and terrorist financing.

We therefore take the findings put forward by Wirtschaftswoche very seriously, will analyse the facts and take appropriate measures if necessary.

Contrary to the statement in Wirtschaftswoche, the use of photo verification by N26 is legally compliant. N26 works with a regulated payment service provider, SafeNed, in this regard. SafeNed is a UK business which is authorised and regulated by the UK Financial Conduct Authority (FCA) with regards to the prevention of money laundering and terrorist financing. SafeNed verifies its customers using the Photo Ident process, which is compliant with UK law.

According to the German Money Laundering Act, N26 is allowed to use a third party regulated in the EU, in this case a payment service provider in the UK, for the verification of customers (Section 17 (1) GwG). The respective verification procedure is then determined by the law applicable to the third party (in the above example, therefore, by UK law). This understanding is also confirmed by BaFin in its interpretation and application notes on the German Money Laundering Act (p. 67 et seq.) for customers not resident in Germany.

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Oct
17

Crypto Quantique unveils its ‘quantum driven secure chip’ for IoT devices

With Gartner estimating that there will be 150 billion connected devices by 2030 — many of them mission critical, such as powering major national infrastructure — the risk and realisation that these devices aren’t secured properly is leading some cyber security experts to predict that there is a large-scale disaster waiting to happen. And the problem is only getting worse. By some estimates, on average there are 127 new devices connected to the internet every second.

Enter: Crypto Quantique, a startup out of company builder Entrepreneur First that has been patiently toiling away for the last couple of years trying to solve the IoT security problem. Specifically, the company has developed what it claims is “the world’s first quantum driven secure chip (QDSC)” on silicon, which, when combined with cryptographic APIs, it says is capable of providing any connected device with a scalable and easy to implement “end-to-end” security solution.

Moreover, by employing advanced techniques in cryptography and quantum physics, its makers say the Crypto Quantique QDSC is unique to every device and entirely unclonable, which makes it almost impossible to hack. That’s quite a claim.

“There are security complexities in IoT, many stakeholders, including OEMs, manufacturers, integrators and designers are involved in developing and implementing the IoT,” Shahram Mossayebi, co-founder of Crypto Quantique, told me over email. “Each stakeholder is faced with different threat vectors and thus has different security requirements and produces devices based on very different architectures. Currently there is no clear approach to securing the IoT, which is also impacted by the lack of basic security tools that would allow stakeholders to build their own security solutions”.

To that end, he explained that security must start from the device, then travel through the network and finally reach the IoT device’s backend services. In other words, proper end-to-end security is required to protect IoT devices and infrastructure.

At the heart of this is “root of trust” — the ability for a device to authenticate itself and be a trusted member of a network — which, conversely, is also the weakest link. Data traveling throughout the network also needs strong encryption, of course. Finally, with IoT devices being in the billions, there’s an issue of cost: any secure solution can’t be prohibitively expensive to implement on a per device basis or be fragmented across multiple third-party providers.

“We have created a root-of-trust by harnessing quantum processes in semiconductors to generate unique, unclonable and tamper evident cryptographic keys,” says Mossayebi. “We call it quantum driven secure chip (QDSC) and it is the first ever of its kind in the world. Because of the uniqueness and way in which the keys are generated there is no requirement to store the keys on the device because the keys can be retrieved on demand. This eliminates secure storage requirements and leakage of sensitive information.

“In addition to building the QDSC, we also provide the cryptographic APIs and manage the end to end security to remove the multiple parties involved in the security chain and provide an all-in-one solution. This means there are no ‘open windows’ in connectivity when it comes to security. Once a QDSC is placed in a device it links directly to the owner system (i.e. public or private cloud) through CQ’s cryptographic APIs, where it is managed automatically and remotely while the device is in the field. This is the most advanced security product for the IoT, enabling new industrial revolutions such as Industry 4.0”.

As I said, big (and very interesting) claims, indeed.

On that note, Mossayebi says Crypto Quantique is aimed at any connected device that needs to stay secure, from traffic lights to a SCADA machine used in critical infrastructure. “Currently, we are working with leaders in different fields such as defence, aerospace, energy, industrial IoT manufacturers and enterprise hardware appliance manufacturers. The applications vary from securing satellites and drones to securing energy grids, sensors in critical infrastructure and data centres,” he says.

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Oct
16

1Mby1M Virtual Accelerator Investor Forum: With Utah Somani of AngelList India (Part 2) - Sramana Mitra

Sramana Mitra: I’m going to double-click down on a bunch of points you made. You said the angel networks like Mumbai Angels work like glorified VC funds versus AngelList. Elaborate and contrast the...

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Original author: Sramana Mitra

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Oct
16

Thought Leaders in Big Data: Marc Alacqua CEO and Steve Davis CTO of Signafire (Part 2) - Sramana Mitra

Sramana Mitra: Let’s start with a little bit of an ecosystem map of your space. What is your worldview in terms of who are the players, what are the issues? What does the world around you look like?...

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Original author: Sramana Mitra

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Oct
16

Billion Dollar Unicorns: DocuSign Growing Through Acquisitions - Sramana Mitra

After a long wait, Billion Dollar Unicorn  DocuSign (Nasdaq: DOCU), went public early this year. It recently announced its second quarter results that beat market expectations. But despite the upbeat...

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Original author: MitraSramana

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Oct
16

Wednesday, October 17 – 419th 1Mby1M Mentoring Roundtable for Entrepreneurs - Sramana Mitra

Entrepreneurs are invited to the 419th FREE online 1Mby1M mentoring roundtable on Wednesday, October 17, 2018, at 8 a.m. PDT/11 a.m. EDT/8:30 p.m. India IST. If you are a serious entrepreneur,...

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Original author: Maureen Kelly

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Oct
16

Building a VC-Funded B2C CRM Company From Virginia: Zaius CEO Spencer Pingry (Part 2) - Sramana Mitra

Sramana Mitra: Let’s go back to the beginning and tell me how you got the platform built and how you got to the 10 to 15 customers. That is one of the most important parts of the story. Spencer...

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Original author: Sramana Mitra

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Oct
16

Announcing the Disrupt Berlin Agenda

TechCrunch Disrupt is the world’s biggest and most impactful tech startup conference, and we can’t wait to bring the hype to Berlin.

We’re very proud of the show we’ve put together and are thrilled to give you a look at what’s in store.

Editor’s Note: Not all of our speakers are included on this agenda as we like to keep a couple tricks up our sleeves. ;)

THURSDAY, NOVEMBER 29

Morning

Racing to the Future with Lucas Di Grassi (Roborace)

Hear from Roborace’s new CEO and former F1 driver Lucas Di Grassi on how Roborace is merging human driving and artificial intelligence to build a better racing series. Including a sneak peak at their latest vehicle! Main Stage @ 9:05AM

A New Start with Anne Kjaer-Riechert (ReDI School of Digital Integration), Aline Sara (NaTakallam)

The world has been shocked by the plight of refugees from both war zones and natural disasters in the last few years. But the tech world has stepped up to the plate to assist refugees and NGOs, in this case with ReDI School’s hugely successful code school for refugees and NaTakallam’s global platform for refugees to teach languages. Main Stage @ 9:25AM

In The Money with Pieter van der Does (Adyen)

Payments company Adyen has achieved that rare thing all startups hope for but many do not achieve: it went public as a profitable company with a huge IPO pop. Hear how a startup quietly built up a payments empire under the radar, out of Amsterdam. Main Stage @ 9:45AM

Regaining Momentum in Europe with Saul Klein (LocalGlobe)

Saul Klein has long had an outsized imprint on Europe’s tech scene, as an operator, founder and investor, as well as the mastermind behind the global meet up concept OpenCoffee and the “YC of Europe,” Seedcamp. We’ll talk with Klein about creating a sustainable ecosystem, as well as how Europe now competes against faster-growing markets, including in China. Main Stage @ 10:05AM

STARTUP BATTLEFIELD

The hottest startups compete for the Disrupt Cup, $50,000 USD, and eternal glory. Main Stage @ 10:50AM

Bootstrapping Your Way To The Top with Denys Zhadanov (Readdle)

Readdle, a strartup out of Ukraine, has racked up 100 million downloads of its popular PDF app, and is now making a bold move into other productivity tools, all without a single dime of funding. It can be done! Hear Denys Zhadanov tell his startup’s story. Main Stage @ 11:55AM

STARTUP BATTLEFIELD

The hottest startups compete for the Disrupt Cup, $50,000 USD, and eternal glory. Main Stage @ 1:15PM

Afternoon

Sharing the Ride-Sharing Industry with Daniel Ramot (Via), and other speakers to be announced

It’s time to say it: there won’t be a single global leader in the ride-sharing industry. Many companies will survive and compete in dozens of countries with different offerings. But how do you beat Uber at its own game? Main Stage @ 2:40PM

Pioneering Crypto with Jamie Burke (Outlier Ventures), Vinay Gupta (Mattereum), and other speakers to be announced

Investing in Crypto and Blockchain startups has never been hotter. We’ll hear from these key pioneers in the field who are feeling their way in this brand new arena. Main Stage @ 3:45PM

Making Everyone A Secondary VC with Kaidi Ruusalepp (Funderbeam)

As startups stay private longer and more people want to gamble on them, CEO Kaidi Ruusalepp will discuss the risks and rewards of would-be investors turning to Funderbeam’s secondary market. Main Stage @ 4:10PM

STARTUP BATTLEFIELD

The hottest startups compete for the Disrupt Cup, $50,000 USD, and eternal glory. Main Stage @ 4:30PM


FRIDAY, NOVEMBER 30TH

Morning

Going Global with Brynne Kennedy (Topia)

Topia’s Brynne Kennedy will discuss building the tools that enable companies to manage the 21st century mobile workforce. Main Stage @ 9:25AM

The European Fintech Fever with Ricky Knox (Tandem) and other speakers to be announced

Thanks to a unified market, fintech startups have boomed in Europe. And yet, with so many megarounds and startups doing the same thing, are we experiencing a fintech fever? Main Stage @ 9:45AM

Learning Languages and Building a Startup with Julie Hansen and Markus Witte (Babbel)

Babbel is now managing the top-grossing language learning app in the world. It’s a European success story. The company is now facing a new challenge: conquering the U.S. Main Stage @ 10:10AM

Building Your Next Car, Today with Laurin Hahn (Sono Motors), Ole Harms (MOIA)

The car industry has never been so exciting. Everybody is working on the car of the future, which will represent the perfect combination of automation, connectivity, electric motors and mobility services. But who will do it better: Startups or car giants trying to reinvent themselves? Including a sneak peak of Sono’s new vehicle. Main Stage @ 11:05AM

Becoming a “Unicorn Factory” with Philipe Botteri, Sonali De Rycker, Luciana Lixandru, and Harry Nelis (Accel)

Accel London has built a very strong brand in Europe over the past 18 years, with bets that include Deliveroo and Supercell. Yet staying relevant means continuing to bet on winners. How does Accel think about its heritage and its future, and what does that mean for the startups looking to work with the firm? Main Stage @ 11:30AM

Afternoon

European Space Tech Comes of Age with Mike Collett (Promus Ventures), Rafal Modrzewski (ICEYE)

Mike Collett has built a reputation as a savvy investor in deep-technology software and is now an investor in one of Europe’s hottest space-tech startups, ICEYE, which ICEYE recently became the first company to launch a Synthetic-Aperture Radar satellite under 100 kilograms which can scan the globe in 3D. Where does space technology go from here? Main Stage @ 1:00PM

STARTUP BATTLEFIELD FINALS

The hottest startups compete for the Disrupt Cup, $50,000 USD, and eternal glory. Main Stage @ 1:45PM

Emerging Market Tech is About to Explode with Lizzie Chapman (Zestmoney) and Alan Mamedi (Truecaller)

With a $100M warchest, Truecaller has gone from a simple anti-spam service to a payments and chat service for huge new markets like India. Meanwhile, Zest is India’s first completely automated consumer digital lending platform which is giving consumers there new options in financing. We’ll get into how these two pioneers are expanding. Main Stage @ 3:30PM

Selling Fashion in a Post-Web World with Sophie Hill (Threads)

Threads, a startup out of London, has found the perfect way to sell to its target millennial customer: forget the web and focus on messaging apps instead. That bold choice has helped the company land tons of clients and millions in backing from VCs who want in on the action. Hear from founder Sophie Hills about how she got here, and what will come next. Main Stage @ 4:20PM

Can Starling Become the Next HSBC with Anne Boden (Starling Bank)

Starling has now convinced hundreds of thousands of people, but it is still far behind the biggest consumer banks. Anne Boden has worked in the banking industry for decades, so she knows what’s missing to jump from a small competitor to a dominant player. Main Stage @ 4:40PM

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Jun
26

Commenting platform Spot.IM becomes OpenWeb

JobUFO, the Berlin-based startup that has built a video focussed app to help facilitate better job applications, has raised €2 million in seed funding. Leading the round is IBB and Hevella Capital, with the investment to be used for growth.

Claiming to re-invent the way companies handle the application process, JobUFO has developed an online/mobile application form that focuses on the personality of the candidate. This includes being asked to created a CV in a specific format and the ability to record or upload a personal application video. The JobUFO application form can be embedded anywhere online, such as a company’s career page or job ad, so that it becomes the preferred way to receive applications.

“The HR market is overloaded with too many information and recruiting tools,” JobUFO co-founder and CEO Thomas Paucker tells me when asked to describe the problem being tackled. “This makes it very hard to find the best process of applying to a job. That’s why everybody is writing the same motivational letters. You still need a laptop and there is no real first impression of yourself when you apply. Recruiters do not read motivational letters because someone else could have written it. The longer a recruiting process is, the higher the average dropout rate of an applicant”.

To remedy this, the JobUFO mobile app or web-version enables applicants to quickly create a “DIN-correct” CV in combination with a guided video of up to thirty seconds. Paucker says the idea is to be able to give a good first impression at the very moment the application is received. JobUFO powered applications are pushed directly into a company’s application tracking system via the JobUFO API.

“Recruiters get more and reliable applications without changing their daily routine,” he says. “Applicants get recommendations based on big data and are guided nearly fully automatically during their whole work life. Additionally we automate the communication between those two groups to focus on the main goal: filling the vacancy with someone who fits and likes the job”.

To that end, in two years since being founded, JobUFO has grown its customer base to over 30 well-known companies operating in Germany. They include Deutsche Bahn, Edeka, Evonik, Hertz, and Ikea. In 2018 alone, over 60,000 applications have been generated.

“Digitalisation is changing the recruiting sector,” adds Paucker, noting that younger applicants have no prior knowledge of a more traditional application process and are much more akin to using consumer apps such as Instagram and YouTube. “Since we guide the applicants directly through the application process, JobUFO is particularly popular with this younger target group,” he says.

In addition, the “talking application photos” concept is resonating with recruiters and HR managers since the last mile to the applicant is often the most time-consuming and least scalable. “The company sees the video as well as the checked data of the applicant directly in its own applicant management system. For both sides, this is an uncomplicated process that continues to spur us on to expand,” says the JobUFO CEO.

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Oct
16

Bill Gates says he's 'heartbroken' by the death of his Microsoft cofounder in an emotional statement

Bill Gates has said he is "heartbroken" by the death of his childhood friend and Microsoft cofounder Paul Allen.

Allen, who also owned the NFL Seattle Seahawks and the NBA Portland Trail Blazers, died on Monday afternoon after a battle with non-Hodgkin's lymphoma, his family confirmed to Business Insider. He was 65.

Gates said Allen helped change the world with the creation of the personal computer. He added that his life was marked by a "second act" in which he attempted to improve the lives of people in Seattle, where he was from, and others around the globe.

Gates' statement, which was carried by CNBC and The Washington Post among others, is copied below in full:

"I am heartbroken by the passing of one of my oldest and dearest friends, Paul Allen. From our early days together at Lakeside School, through our partnership in the creation of Microsoft, to some of our joint philanthropic projects over the years, Paul was a true partner and dear friend. Personal computing would not have existed without him.

"But Paul wasn't content with starting one company. He channeled his intellect and compassion into a second act focused on improving people's lives and strengthening communities in Seattle and around the world. He was fond of saying, 'If it has the potential to do good, then we should do it.' That's the kind of person he was.

"Paul loved life and those around him, and we all cherished him in return. He deserved much more time, but his contributions to the world of technology and philanthropy will live on for generations to come. I will miss him tremendously."

READ: Business Insider's Paul Allen obituary»

Original author: Jake Kanter

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Oct
16

10 things in tech you need to know today

Microsoft cofounder Paul Allen has died at 65. Stephen Lovekin / Getty Images

Good morning! This is the tech news you need to know this Tuesday.

Microsoft cofounder Paul Allen has died at 65 after a battle with cancer. A childhood friend of Bill Gates, it was actually Allen who came up with the name "Micro-Soft." Jeff Bezos said that today's internet is a "confirmation bias machine" that could help autocratic regimes. The Amazon CEO weighed in on the current state of social media at the Wired 25 conference on Monday. Facebook is banning any kind of hoaxes about voting, like false reports of violence or fake photos of long lines. The move is intended to address hoaxes like telling certain users they could vote by text, a method that has been used to reduce voter turnout in the past. "Fortnite" is getting a new mode for the most competitive players, as it builds towards a $1.1 million showdown. "Fortnite: Battle Royale" is adding tournaments to its roster of in-game events, which will have different formats spanning several days. The cofounder of Instagram said "No one ever leaves a job because everything's awesome" about his departure from Facebook. Instagram cofounder Kevin Systrom spoke out about why he left the company in September at a conference on Monday. Thread, the fashion startup that helps lazy guys buy clothes, has raised $22 million. Thread uses a mix of machine learning and real-life stylists to learn about its customers' fashion tastes, and recommend stylish clothing accordingly. Jeff Bezos defended Amazon taking defense contracts, even as Google and others shy away. The Amazon CEO said, "this is a great country and it does need to be defended" at a conference on Monday. Apple hired the founders of a music startup that says it can find 'the next Justin Bieber' — and it may give Apple Music an edge against Spotify. Apple has bought music analytics firm Asaii for under $100 million, Axios reports. People are questioning the story that missing journalist Jamal Khashoggi's Apple Watch recorded him being killed. With Khashoggi still missing, security and technical commentators have cast doubt on reports from the Turkish media that his Apple Watch recorded him being tortured and killed inside the Saudi consulate in Istanbul. Facebook will now show who exactly is paying to swing people's votes through online political advertising. The company will both label ads as they appear in its News Feed, and archive all political ads in a searchable library which will retain ads for seven years.

Have an Amazon Alexa device? Now you can hear 10 Things in Tech each morning. Just search for "Business Insider" in your Alexa's flash briefing settings.

Original author: Isobel Asher Hamilton

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Oct
16

Leaders in Silicon Valley, entertainment, and professional sports are remembering Microsoft cofounder Paul Allen, who died after a battle with cancer at 65

Paul Allen, the cofounder of Microsoft and billionaire philanthropist, died Monday afternoon after battling non-Hodgkin's lymphoma.

The 65-year-old Seattle native is best-known for having launched Microsoft with Bill Gates, but he also operated the venture-capital firm Vulcan Ventures, and staked his claim on sports franchises as the owner of the Seattle Seahawks and Portland Trail Blazers.

Allen previously overcame a bout of Hodgkin's lymphoma in the 1980s, but he was later diagnosed with cancer in 2009, which returned after a period of remission.

As a titan in the tech industry and the world of sports, Allen influenced his colleagues to inspire millions of others through their work.

Here's how Allen's friends and associates are responding to his death.

Original author: David Choi

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Jun
26

TuSimple seeking $250 million in new funding to scale self-driving trucks

Thousands of Google employees participated in an internal protest against the company's participation in a high-tech military project earlier this year, but the unprecedented revolt at the company had little influence on management's decision-making, according to CEO Sundar Pichai.

At a gathering to celebrate Wired magazine's 25th anniversary, Pichai was asked whether Google's employees had anything to do with the company's announcement last week that it will not compete for a much sought-after $10 billion cloud-computing contract offered by the Pentagon.

"Throughout Google's history we've given our employees a lot of voice and say in it, but we don't run the company by holding referendums," Pichai said. "It's an important input. We take it seriously. But even on this particular issue it's not just what the employees said. It's also about the debate within the AI community."

In March, when word leaked that Google had quietly contributed to Project Maven, a Pentagon effort to use artificial intelligence to analyze drone video footage, more than 4,000 Google employees signed a petition demanding the company stop the work. Some employees leaked documents to journalists and about a dozen resigned.

In June, Google's leadership appeared to respond to the protest by releasing a set of AI principles designed to govern the company's ethical use of the technology. They included a promise never to build AI weapons. Back then, it sure seemed like the opposition within Google to Project Maven had forced the company's hand.

But on stage at Wired25, Pichai said that Google plans to work with the US Department of Defense in the future, perhaps in such areas as cyber-security or transportation planning. He said Google very much supports the US armed forces.

"We deeply respect what they do to protect our country," he said.

He made it clear, however, Google will not work on autonomous weaponry or anything that violates the company's AI principles.

Pichai was also asked about Google's possible plan to once again offer a search engine in China. This summer, The Intercept broke the news that Google had built a search engine that would censor information. Google search pulled out of China in 2010, claiming it could no longer comply with the government's demands that the company filter information.

To return to China, Google would again have to filter information that authorities find objectionable. Some groups argue that censoring information is a violation of human rights.

Pichai said the offering search in China, home to 20-percent of the world's population, is important to the company. As for a censored search engine, Pichai said the company wanted to see what a Google search engine that complied with Chinese law would look like. He gave no timetable for a return to China.

Original author: Greg Sandoval

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Jun
24

Lightrun raises $4M for its continuous debugging and observability platform

Google is the latest in a still growing number of US businesses to distance themselves from Saudi Arabia following accusations that the government there is behind the disappearance of a dissident journalist.

Google Cloud CEO Diane Greene was scheduled to speak at an investment event called the Future Investment Initiative, a conference sponsored by Saudi government, but has now dropped out.

"We can confirm Diane Greene will not be attending the FII Summit," said a Google spokesperson in a written statement.

A cloud of suspicion has hung over the Saudi government ever since Jamal Khashoggi, a Washington Post columnist, a Saudi citizen, and a well-known critic of the government there, went missing on Oct. 2. The government of Turkey alleges it has proof that Khashoggi was killed inside the Saudi embassy in Turkey. Saudi officials have denied it had anything to do with Khashoggi's disappearance.

In response to the accusations, several high-profile tech leaders announced last week they had pulled out of the conference dubbed the "Davos in the Desert." Included among them are Dara Khosrowshahi, Uber's CEO, Steve Case, an AOL cofounder and venture capitalist, Arianna Huffington, founder of the Huffington Post, and Andy Rubin, cofounder of Android and former Google executive.

Greg Sandoval/Business Insider

The controversy comes at an awkward time for Google. The past year, the company has tried to strengthen ties with the Saudis. In April, Google's leaders met with Saudi Arabia's Crown Prince Mohammad bin Salman. According to reports, they discussed cooperating on cloud computing services and the possibility of building a digital hub in Saudi Arabia.

Later that month, after the company reported earnings, Google CEO Sundar Pichai announced that Google would roll out cloud services in Saudi Arabia.

"Our global infrastructure continues to expand to support demand," Pichai told analysts on the call. "We commissioned three new sub sea cables and announced new regions in Canada, Japan, Netherlands and Saudi Arabia, bringing our total of recently launched and upcoming regions to 20."

Pulling out of the conference could conceivably harm Google's relationship with the crown prince, though had Greene attended, critics would have likely claimed that Google was once again at odds with the company's values.

The situation shows just how hard it can be for Greene to build Google's cloud business, and make up ground on two much larger rivals, Amazon AWS and Microsoft's Azure, while not running afoul of the company's moral codes.

Earlier this year, after thousands of the company's employees rose up in protest, Google stopped working on a military program called Project Maven, an effort that used artificial intelligence to analyze drone surveillance footage.

The company also published a list of principles that would direct its use of AI in the future. Those principles appear to demand some sacrifice from the company. Last week, Google said it would not bid on a $10 billion Pentagon contract due to potential conflicts with the AI principles.

Amazon is currently the favorite to win the contract. And Amazon CEO Jeff Bezos took a veiled shot at Google at a conference in San Francisco on Monday: "If big tech companies are going to turn their back on the US Department of Defense, this country is going to be in trouble," he said.

Original author: Greg Sandoval

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Jun
24

UK’s CMA clears Amazon’s 16% Deliveroo stake, says COVID-19 impact less severe than initially thought

With a library full of Marvel, Star Wars, and other beloved franchises, Disney is expected to be a major force in the streaming wars when it launches its own service late next year.

A new report from analysts at Morgan Stanley, led by Benjamin Swinburne, estimated the service will gain around 23 million subscribers by 2024, and between 40-45 million by 2028. Based on an expected monthly subscription price of $9 at launch, which could increase to $13 by 2028, the analysts predicted the service will be profitable in 2026.

The analysts wrote that they saw the Disney service becoming a $6-billion-plus business, "with stand-alone EBIT profitability achieved in 2026E."

Disney would have been a formidable player in the streaming game even without the Fox merger, but the analysis was made with the assumption that the Disney-Fox deal will be completed as planned. Last week, 21st Century Fox president Peter Rice told Variety that the deal is expected to close by January 1, at which point Disney will own Fox's film studio and other assets. That means that Disney will own Fox's Marvel superhero properties the X-Men and Fantastic Four, as well as other franchises like "Avatar" and "Alien."

The Morgan Stanley report noted that Disney's service will be "more modest" in its scope of content and spending than its primary competition, Netflix. Netflix made it a goal this year to have 1,000 original shows and movies by year's end, and spent an estimated $8 billion to do so. The analysis estimated Netflix to have 227 million subscribers by 2022 compared to the 117 million it had last year.

But that doesn't mean that Disney isn't dropping big bucks on the service. Morgan Stanley expects Disney to spend nearly $2 billion on content for the streaming service prior to its launch in 2019, and "could have 8-10 original TV series (including at least 2-3 high-profile series with larger budgets), 3-4 original films, as well as other original TV movies and short-form content ready to be released."

"The service is also expected to include library content from Disney Channel and a steady pipeline of recent theatrical releases in the US following the expiration of its Netflix pay-1 deal in calendar 2018," the analysts added.

Netflix won't be Disney's only competition, though. AT&T, which now owns Time Warner, announced last week that it will launch its own streaming service next year that will include HBO. Amazon is developing a pricey "Lord of the Rings" TV series, and Hulu should never be counted out with a wide-range of content that includes the Emmy-winning "The Handmaid's Tale."

Original author: Travis Clark

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Jun
24

Alphabet’s CapitalG leads $27.5 million round in India’s Aye Finance

On Monday, Salesforce CEO Marc Benioff had sharp words for San Francisco CEOs who aren't helping with the city's homelessness problem, just days after a heated exchange of tweets with Twitter CEO Jack Dorsey.

"I know if we're going to raise money for our schools, our hospitals, our homeless, our NGOs, there is a group of people in the city who are willing to give, and there is a group of people in the city who give nothing," Benioff said on stage at the Wired 25 conference, answering a question from interviewer Adam Rogers of Wired about his dissent from Dorsey.

"So you're in two buckets. You're either for the homeless and for the kids and for the hospitals, or you're for yourself. You can decide who you're for, and it's really that simple."

Benioff and Dorsey got into this Twitter spat last week over Proposition C, a measure on the upcoming San Francisco city ballot that would raise a certain tax on large companies to aid the city in tackling its growing homelessness problem. The two San Francisco tech giants debated the measure, with Benioff challenging Dorsey to list his charitable giving in the city, though they later spoke on the phone to patch things up, Dorsey tweeted.

When Rogers said at the conference that he loved the idea of taxing billionaires, Benioff agreed. Benioff has a net worth of $6.1 billion, according to Forbes.

Benioff said at the Wired 25 conference that he had spoken to "every high net worth individual in the city," and he knows who's willing to give money and who isn't. "I already have the lists," he said.

Not long after Benioff left the stage, Dorsey took his own turn in the spotlight at Wired 25. However, Dorsey wasn't asked about Proposition C or Benioff's comments, nor did he offer his own thoughts.

Below is the tweet that started it all.

You can watch Benioff's full interview here:

Original author: Rosalie Chan

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Jun
24

Productivity platform ClickUp raises $35 million from Craft Ventures

It's no secret that Amazon CEO Jeff Bezos has always looked to the stars — after all, Amazon's Alexa was designed with the intention of becoming like the all-knowing ship's computer from "Star Trek."

Now, a new feature from Wired sheds a lot more light on Blue Origin, the private spaceflight company that Bezos has described as his most important venture, more so than Amazon or the Washington Post. Indeed, Bezos sells $1 billion per year in Amazon stock just to fund Blue Origin's operations.

Notably, Bezos put one condition on his interview with Wired: Steven Levy, the reporter, would have to watch a black-and-white PBS program from 1975 before he would agree to discuss Blue Origin. In the special, believed lost to the ages until recently, famed science fiction author Isaac Asimov and physicist Gerard O'Neill discuss the need for humanity to spread beyond Earth — a notion that Bezos tells Wired he believes with "increasing certainty."

You can watch the thirty-minute video yourself here:

The video was apparently unearthed and uploaded to YouTube by the Space Studies Institute, which was founded by O'Neill — a highly influential voice in Bezos' life. The video, according to SSI, was "discovered in a crumpled box in the dark back of a storage locker in New Jersey" by one of its employees.

Bezos was so obsessed with O'Neill's vision of the future that Bezos' valedictorian graduation speech was about how he looked forward to seeing millions of people live among the stars. "Space, the final frontier, meet me there!" Bezos concluded, according to "The Space Barons," a book by Christian Davenport.

Meanwhile, Asimov was also an inspiration of a different sort to Elon Musk, whose SpaceX is something of a rival to Blue Origin. Musk has widely credited Asimov's classic novel "Foundation," which also deals with a humanity that has outgrown Earth, with inspiring his own efforts.

In his book "The High Frontier," O'Neill wrote about a televised interview with author Isaac Asimov. During the program, Asimov explained why sci-fi writers tend to place civilizations on the surface of a planet instead of in space itself.

"The anecdote is legendary in the Space Community. With no known copies of the show, it became almost mythical," the Space Studies Institute (SSI) wrote in a preamble to the full program. "For the first time since its original 1975 broadcast, here is the complete presentation."

"It's possible to have a rapid growth of wealth and productivity, and living space and comfortable living conditions for people, not on the Earth, and not on another planetary surface — the moon or Mars or anything like that — but rather in habitats which are built in free space ... at a distance from here which is similar to the distance to the moon" O'Neill said in the program. Blue Origin's New Shepard rocket.Blue Origin

"It's possible to make habitats which are relatively big — big enough to be very Earth-like — out of ordinary materials like steel and aluminum and glass. And it's possible to find those materials in very large quantities on the surface of the moon and eventually in the asteroids."

During the show, which was hosted by journalist Harold Hayes, O'Neill showed a drawing of a rotating, half-mile-long cylinder and space colony he called "Model 1" built from 98% lunar materials. But O'Neill also described much larger space colonies on the show.

"Model 4 could be something as big as perhaps five to 10 miles in diameter, perhaps as much as 20 or 30 miles long, within the limits of available materials," O'Neill said. O'Neill said he got the idea in 1969 while teaching a physics course to 320 college freshman. He pulled aside a handful of the top students in the class, then — together — they came up with the concept.

Blue Origin's New Shepard rocket.Blue Origin

After O'Neill spoke, Asimov pointed out that it's much easier to move raw building materials off of the moon than Earth, at least in theory, since the moon has a much weaker gravity field.

Hayes then asked Asimov if the author — in his then-158 works of science fiction — had ever anticipated building such colonies in space. That's when Asimov responded with his "legendary" line.

"Nobody did, really, because we've all been planet chauvinists. We've all believed people should live on the surface of a planet, of a world. I've had colonies on the moon — so have a hundred other science fiction writers," Asimov said. "The closest I came to a manufactured world in free space was to suggest that we go out to the Asteroid Belt and hollow out the asteroids, and make ships out of them. It never occurred to me to bring the material from the asteroids in towards the Earth, where conditions are pleasanter, and build the worlds there."

Original author: Matt Weinberger and Dave Mosher

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Sep
14

Aiven improves access to open source data technologies with new ClickHouse offering

Tech stocks took a beating in last week's market-wide sell off.

But one Wall Street analyst thinks a special breed of software companies are well positioned to withstand choppy stock market conditions.

In a note published Sunday, Evercore ISI analyst Kirk Materne flagged a group of software companies and compared them to February 2016 levels — that's when the stock market reached a short-lived low point amid uncertainty and fear.

"We believe that when it comes to software investing, times of macro stress and market volatility have usually ended up being good buying opportunities," Materne wrote, adding that investors who look past the "noise in prior crises have generally been rewarded," three to six months later.

The key? Many companies in the software sector have built businesses based on recurring revenue, giving the businesses a "durability" that's now well-understood by investors, Materne wrote.. The top 25 software companies today have 69% of their revenue from recurring business customers, compared to 42% 10 years ago, he said.

Materne highlighted software companies with estimated growth of more than 20% in the upcoming years. Those stocks tend to have an enterprise value of around 5x their revenue. And as their revenues grow, so will their valuations.

Here are 18 high-growth software companies to keep on your radar:

Original author: Becky Peterson

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Oct
16

The Facebook hack that exposed 30 million accounts shows we're going to be dealing with the consequences of its 'Move Fast' motto for years to come (FB, GOOGL)

It's been four years since Facebook ditched the latter part of its "Move Fast and Break Things" motto, but we're still uncovering its consequences and experiencing its aftermath.

(In case you're curious: the mantra was phased out in 2014, and semi-seriously replaced with "Move Fast with Stable Infra," as in computing infrastructure.)

The hacking attack Facebook discovered recently is only the latest outgrowth of that mantra. But you can see its lingering effects in basically all of the company's scandals and fiascos over the last two years, including the Cambridge Analytica debacle and the Russian-linked propaganda effort during the 2016 election.

But what makes it so dangerous is that you can find the effects of that motto far afield from Facebook. That's because from that company it quickly became the mantra of Silicon Valley. It's been imbued in the culture and in the way the tech industry as a whole has developed products for much of the last decade.

You can detect its influence in everything from Uber's numerous scandals to Google's r ecently acknowledged security hole in its Google+ social network. And because of its pervasiveness, we're certain to see its effects in many more fiascos to come.

The hacking incident, though, was a particularly bad manifestation of it.

Facebook has shown it doesn't care about "breaking" users' privacy

As the company revealed on Friday, in the attack, hackers gained access to the personal data of some 30 million users. For nearly of those affected, the compromised data included when they were born, where they had physically been recently, where they went to school, and whether they had worked.

Google recently revealed a major security hole in its Google+ social network. Greg Sandoval/Sundar Pichai What makes the attack worrisome is that such information is a goldmine for scammers. It can be used to steal consumer's identifies and gain access to their financial and other sensitive accounts.

The hacking attack was the result of a vulnerability that dates back more than a year. The vulnerability in turn was the outgrowth of three separate bugs that were at least that old, if not older. Facebook discovered the vulnerability — and the underlying bugs — only after hackers started exploiting it last month.

The vulnerability emerged years after Facebook dropped the "and break things" part of its famous motto. But the company's apparently unwitting creation of the hole, and its failure to detect it before the vulnerability was exploited, indicates that it was operating under the same mentality.

Facebook, after all, was founded and built — and its business model depends — on the attitude that users' private data is a commodity to be exploited. While it may worry more than in the past about "breaking things" when it moves fast, it has shown repeatedly that users' privacy is very far down the list of things it's concerned about messing up.

Even now, in the wake of the Cambridge Analytica scandal, when it's supposedly turned a new leaf on privacy, it still collects more information than it arguably needs and uses that information in ways of which users likely aren't aware. Just recently, for example, researchers discovered that the company was surreptitiously using phone numbers users gave it for security purposes to target them with ads.

The "Move Fast" mentality led to the Cambridge Analytica scandal

But you can find the effects of the company's "Move Fast and Break Things" motto far beyond the latest security hack. The Cambridge Analytica scandal — which compromised the data of some 87 million users — was an outgrowth of that mentality. The company shared data about its users with developers without worrying about the potential consequences or downsides of doing that and without bothering to check — until after the fiasco — if the developers' use of the data was on the up and up.

Alexander Nix was the CEO of Cambridge Analytica, which gained access to the personal details of up to 87 million Facebook users. parliamentlive.tv Amid that scandal, Facebook revealed another hack, one that affected far more people — up to half of its 2 billion user base — through which malicious actors were able to scrape user profile information via a search tool. Again, the company had introduced a new feature without thinking through how it could be used in a malign way and without taking steps to prevent that use until it was too late.

And then there's the spread of fake news and propaganda via Facebook, from the Russian-linked effort during the 2016 US presidential election to the campaign against Myanmar's Rohingya minority. As has been made clear in the wake of those and other scandals, the company built a system that could quickly and efficiently spread information among groups of like-minded people without worrying about how that system could be hijacked by people with bad intentions.

It's one thing if what gets broken when Facebook moves fast is some feature on the site. But the company is no longer a small startup with a tiny user base. When it screws something up, the effects can be deadly.

Facebook finally seems to be starting to grapple with the aftereffects of its erstwhile motto — or at least the public relations damage it's recently led to. Among other things, it's introduced new privacy controls, changed the way its News Feed works to promote posts from users' friends rather than from publishers, and started investigating what developer did with users' data.

"Move Fast and Break Things" is now the motto of Silicon Valley

But even if Facebook succeeds in heading off future harms from its service, the consequences of its motto are likely to live with us for years to come. That's because the "Move Fast and Break Things" mantra was embraced far and wide in the tech industry.

LinkedIn cofounder Reid Hoffman has a new book touting the Move Fast mentality under the title of "Blitzscaling." Drew Angerer/Getty Entrepreneurs and startups, venture capitalists and other investors, and the tech giants have all espoused it in some form or another. Tech industry trade groups such as the Consumer Technology Association and libertarian think tanks such as the Mercatus Center have touted the philosophy as part of the notion of "permissionless innovation." Even right now, when the drawbacks of the Move Fast mentality have become all too clear, LinkedIn founder Reed Hoffman is touting a new book promoting the idea, calling it "blitzscaling."

Because it's been so widely embraced, standards have arguably fallen everywhere. Those that haven't immediately adopted the Move Fast motto have been pressured to do so at the risk of being left behind by their peers. If your rivals aren't worrying about the aftereffects of the technology they create or the business methods they adopt but instead are charging ahead to seize as much of the market as quickly as they can, you're going to do the same — damn the consequences.

Just as has happened with Facebook, that mentality is starting to catch up with other tech companies and with society, particularly as the companies have become bigger. Facebook wasn't the only service that has been hijacked to spread propaganda during the 2016 election; Google and Twitter were too. And Facebook isn't the only company that recently acknowledged a privacy compromising security flaw; Google did also, with it its Google+ service.

We're seeing the consequences all over

In many cases, thanks to the Move Fast mantra, tech companies have created services that even they don't have a handle on. Take Google-owned YouTube. Numerous times last year, it was found to be distributing and promoting disturbing videos to children. YouTube repeatedly vowed to address the problem, and it repeatedly failed.

Under former CEO Travis Kalanick, Uber epitomized the "Move Fast and Break Things" mantra. Windle/Getty Images for Vanity Fair In other cases, under the Move Fast mentality, tech companies have flaunted local laws and local sensibilities in their rush to seize local markets. Uber and Lyft were notorious for this, but so too, more recently, were scooter rental companies such as Lime and Bird.

And what was broken in those cases weren't just ordinances that arguably protected the entrenched taxi industry. Uber and Lyft have contributed to increased traffic and massively depressed the wages of taxi drivers, while scooters have ended up blocking sidewalks and entryways, causing an uproar among non-scooter using citizens.

As we've seen repeatedly, when you're moving fast, you don't have any time for reflection. You don't have time to think about what, exactly, you might be breaking or the larger social consequences of what you're doing. And there's even less time for public officials or the rest of society to catch up and keep an eye on things — even though real people outside the company may and have been harmed.

"Move Fast and Break Things" has spurred innovation at Facebook and in Silicon Valley. But that consequence-free, "permissionless" innovation mindset has real costs that we'll be paying for a long time to come.

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Original author: Troy Wolverton

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Oct
16

Apple design guru Jony Ive explains why Apple is so secretive: 'It would be bizarre not to be' (AAPL)

Apple is famously, insanely secretive — and according to its head design guru, that's because it'd be weird not to be.

On Monday, Apple's chief design officer Jony Ive appeared at the Wired 25 conference in San Francisco, California, where he was interviewed by legendary fashion journalist Anna Wintour, who probed Apple's urge for secrecy.

"I actually think it would be bizarre not to be," Ive said. "I don't know many creatives who want to talk about what they're doing when they're halfway through it."

Wintour interjected: "Really? Then I obviously know very different people."

Apple jealously guards its secrets, tightly keeping its unannounced products under wraps and hiring an army of ex-NSA agents to police its workforce for leakers. Its practices have since become a model for other tech companies looking to emulate the Apple magic — to greater or lesser degrees of success.

Ive frames this urge towards confidentiality as necessary to not add "noise" to the process.

"I know lots of PR departments who want to talk about something that's been worked on," he said. "I've been doing this long enough where I actually feel a responsibility to not confuse or add more noise about what's being worked on because I know that sometimes it doesn't work out.

"I think its just in our nature when were working on a difficult problem — and so many of the problems we're working on now are so complex — it just seems rather odd to be telling everyone what you're doing."

Original author: Rob Price

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