Jun
11

Uber applies for patent that would detect drunk passengers

While Uber has changed the way that many think about transportation, it’s also changed the way that many drunk people find their way home at night. Rather than haphazardly hailing a cab or driving home under the influence, Uber provides a relatively safer way to get from point A to B on an indulgent evening.

The company has been curious about its drunk users, applying for a patent with the United States Patent and Trademark Office for a system that would use machine learning to determine the ‘state’ of a passenger.

While the patent limits itself to a dry discussion of ‘user state,’ it seems that what Uber is really interested in is detecting the difference between users of sound mind and users who are under the influence.

CNN first spotted the patent, which describes a method of measuring the user’s behavior on their phone against their usual behavior, using information like location, data input accuracy, data input speed, interface interaction behavior, the angle at which the user is holding their device, or even the speed at which they’re walking.

The patent also describes a system that would notify drivers of the passenger’s ‘state’, theoretically letting them prepare for the adventure ahead.

The patent says that riders in a particularly unusual state may be matched with drivers who have special training or expertise, or may not be provided service at all.

In the vast majority of cases, hailing an Uber is one of the safest ways for a drunk person to get home. On the other hand, Uber has run into issues with drivers who have sexually assaulted passengers. CNN reports that at least 103 Uber drivers in the US have been accused of sexually assaulting or abusing passengers in the last four years, with many of the police reports noting that the passengers were inebriated or had been drinking before getting into the car.

Notifying drivers when a passenger is drunk could save those drivers the headache of hauling around an out-of-control passenger, or prevent drivers from dealing with passengers who puke in their car, which may lead to disputed charges. But the system described in this patent could also allow for predatory behavior by malicious drivers.

There is also the broader implications of Uber knowing when you’re drunk. The company has not been a beacon of trust with regards to user data, having to pay $20,000 for using “God View” to spy on users and reportedly paying to cover up a massive data breach.

Of course, only a fraction of a company’s patents ever make it into the final product. Only time will tell if Uber’s idea to monitor the state of passengers will end up in the app.

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Dec
21

Startup incubator Nailab invests $25K in East African startups

While not a comfortable thing to talk about on Monday morning – or any morning for that matter – the suicides of Kate Spade and Anthony Bourdain last week generated much public discussion. And, while the suicides were tragic, some of what people said and wrote were powerful and helpful to me.

I’ve talked openly about my struggles over the years with depression. I’ve been fortunate that suicidal ideation has not been a part of this for me. I’m also fortunate that I have a partner – in Amy – who I have a set of rules with if I ever start to go down that path. Basically, I feel safe, even in my worst distress, that someone is watching and is there for me, even in my darkest moments.

The stigma around depression in our society continues to be a huge burden for people suffering from it. This is especially true for high profile and successful people. In addition to the internal loops that get created by depression, there is external judgment, as in “You are successful – what business do you have being depressed – just shake it off!” that weighs on the depressed person. And, anyone who has ever been depressed knows that when the black dog is barking at you, it’s hard to hear anyone, or anything, else.

Several people I know wrote great posts worth reading to get more context. Each post touches on a different aspect of depression, against the backdrop of the suicides, in a very personal way.

Christopher Schroeder – Anthony Bourdain and the “Impossible” Suicide

Laura Rich – Kate Spade and Depression After Business Exit

Mike Porath – The First Person I Thought of When I Heard of Anthony Bourdain’s Suicide

If you, like me, were rattled by the suicide of either Kate Spade or Anthony Bourdain, I encourage you to let yourself feel the emotions you are feeling. It’s a line Amy uses with me all the time: “Brad, feel your emotions.” Don’t suppress them. Just feel them. Process them. And then reflect on what you are feeling. Any, more importantly, explore why you felt them.

It’s probably uncomfortable. But it’s part of being human. And, while tragic, we can learn from it to help ourselves, and help others.

It’s a sunny morning in Toronto, so it’s time for a run. That always helps me clear my mind.

Also published on Medium.

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Original author: Brad Feld

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Jun
11

Thought Leaders in Financial Technology: Luvleen Sidhu, President of BankMobile (Part 1) - Sramana Mitra

This interview is an interesting window into how financial technology is addressing specific niches within the banking sector. Sramana Mitra: Let’s start by introducing our audience to yourself and...

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Original author: Sramana Mitra

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Dec
21

Oscar Health expects to generate $1 billion in revenue and sign up 250,000 members in 2018

Jake Bright Contributor
Jake Bright is a writer and author in New York City. He is co-author of The Next Africa.

Forty-seven and a half million dollars is a big commitment to African technology companies — even with the recent uptick in VC investment on the continent.

But for the Kenyan-based fintech firm Cellulant, whose digital payments platform processed 7 million transactions worth $350 million across 33 African countries in the last month alone, raising that amount in a series C round led by TPG Growth’s Rise Fund just makes sense.

In 2017, the company processed $2.7 billion in payments, said chief executive, Ken Njoroge.

Clients include the continent’s largest banks: Barclays Bank, Standard Chartered, Standard Bank, and Ecobank. Cellulant also has multiple revenue streams and is EBITDA positive, according to its CEO.

So what does an African technology company do with $47.5 million? “The round is to accelerate our growth of around 20 percent…north of 50 percent,” said Njoroge. “Most of the investment is to scale out our existing platform in Africa and build usage on our existing network.”

Founded in 2004, Cellulant offers Person-to-Business, B2B, and P2B services on its Mula and Tingg products. It’s also developing a blockchain based Agrikore product for agriculture related market activity.

On Africa’s digital payments potential, “We’ve built internal value models that estimate the size of the market at somewhere between $25BN and $40BN,” said Njoroge.

He differentiates Cellulant’s focus from Safaricom’s M-Pesa –one of Africa most recognized payment products — by transaction type and scope. “Kenya’s M-Pesa is optimized as a P2P platform in a few African countries. We’re optimized as a P2B platform and single pipe into multiple countries across Africa,” he said.

One of those countries is economic and population powerhouse Nigeria — where Cellulant offers both its Ting and Agrikore apps. Nigeria is also home to notable digital payment companies Paga and Interswitch, the latter of which has expanded across Africa and is considered a candidate for a public offering.

On a future Cellulant initial public offering, “it’s too early,” said Njoroge. But he doesn’t rule it out. “When you look at the size of the payments business, you could say we have fairly strong prospects to go in that direction.”

TONY KARUMBA/AFP/Getty Images

Meanwhile, the Nigerian investment startup Piggybank.ng closed $1.1M in seed funding and announced a new product — Smart Target, which offers a more secure and higher return option for Esusu or Ajo group savings clubs common across West Africa.

The financing was led by a $1 million commitment from LeadPath Nigeria, with Village Capital and Ventures Platform joining the round.

Founded in 2016, Piggybank.ng offers online savings plans — primarily to low and middle-income Nigerians — for deposits of small amounts on a daily, weekly, monthly, or annual basis. There are no upfront fees.

Savers earn interest rates of between 6 to 10 percent, depending on the type and duration of investment, Piggybank.ng’s Somto Ifezue explained in this TechCrunch exclusive.

The startup generates returns for small-scale savers (primarily) through investment in Nigerian government securities, such as bonds and treasury bills.

Piggybank.ng generates revenue through asset management and from the float its balances generate at partner banks.

The Lagos based startup will use its $1.1M in new seed funding for “license acquisition and product development,” according to company COO Odunayo Eweniyi.

Piggybank.ng looks to grow clients across younger Nigerians and the country’s informal saving groups and has taken preliminary steps to launch in other African countries.

Lead investor and LeadPath Nigeria founder Olumide Soyombo was attracted to Piggybank.ng as an acquisition target.

“The banks have been slow to try new things in this savings space. Piggybank is coming in…and filling a particular need, so they are in a very acquisitive space.”

PIUS UTOMI EKPEI/AFP/Getty Images

More Africa Related Stories @TechCrunch

Ethereum wallet imToken raises $10M Series A from IDG to expand in the US, Asia and Africa

African Tech Around the Net

French President Emmanuel Macron Launches a USD$76M Africa Startup FundUber Eats launches in KenyaSeedstars launches call for African tech startups to enter pitching competitionAfrica’s most tech friendly governments

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Oct
15

Decentralization and KYC compliance: Critical concepts in sovereign policy

This feature from Mashable covers the highlights of the recent 2018 Apple Worldwide Developers Conference held in San Jose last week. For this week’s posts, click on the paragraph links. Tech...

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Original author: jyotsna popuri

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Jun
10

1Mby1M Virtual Accelerator Investor Forum: With Anand Daniel of Accel Partners (Part 1) - Sramana Mitra

Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Anand Daniel of Accel Partners was recorded in May...

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Original author: Sramana Mitra

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Jun
10

1Mby1M Virtual Accelerator Investor Forum: With Aniruddha Malpani of Malpani Ventures (Part 2) - Sramana Mitra

Sramana Mitra: To net it out, you are agnostic to B2B or B2C. You are really interested in learning about something new. That’s your primary motivator. Aniruddha Malpani: I’ve been doing this for 30...

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Original author: Sramana Mitra

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Jun
09

Thought Leaders in Cyber Security: Jeff Swearingen, CEO of SecureLink (Part 3) - Sramana Mitra

Jeff Swearingen: From an entrepreneur’s perspective, there’s always opportunity. The technology market is so saturated with companies and yet the market is moving so quickly. A young and agile...

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Original author: Sramana Mitra

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Jun
09

1Mby1M Virtual Accelerator Investor Forum: With Aniruddha Malpani of Malpani Ventures (Part 1) - Sramana Mitra

Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Aniruddha Malpani of Malpani Ventures was recorded...

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Original author: Sramana Mitra

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Jun
09

June 14 – 402nd 1Mby1M Mentoring Roundtable for Entrepreneurs - Sramana Mitra

Entrepreneurs are invited to the 402nd FREE online 1Mby1M mentoring roundtable on Thursday, June 14, 2018, at 8 a.m. PDT/11 a.m. EDT/8:30 p.m. India IST. If you are a serious entrepreneur, register...

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Original author: Maureen Kelly

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Jun
09

June 13 – Rendezvous with Sramana Mitra in Menlo Park, CA - Sramana Mitra

For entrepreneurs interested to meet and chat with Sramana Mitra in person, please join us for our weekly and informal group meetups. If you are living in the San Francisco Bay Area or are just in...

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Original author: Maureen Kelly

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Jun
09

Thought Leaders in Artificial Intelligence: Paul Daugherty, CTO and Chief Innovation Officer of Accenture (Part 6) - Sramana Mitra

Sramana Mitra: If you were starting a company today with AI, what kinds of open problems would you want to solve? Paul Daugherty: There’s a lot of areas that I’m actually really interested in. One of...

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Original author: Sramana Mitra

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Jun
08

Thought Leaders in Cyber Security: Jeff Swearingen, CEO of SecureLink (Part 2) - Sramana Mitra

Sramana Mitra: What is the competitive landscape around you? We do a lot of discussions in the cyber security space. Cyber security has always been one of the most active areas of innovation and...

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Original author: Sramana Mitra

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Jun
08

Workday acquires Rallyteam to fuel machine learning efforts

Sometimes you acquire a company for the assets and sometimes you do it for the talent. Today Workday announced it was buying Rallyteam, a San Francisco startup that helps companies keep talented employees by matching them with more challenging opportunities in-house.

The companies did not share the purchase price or the number of Rallyteam employees who would be joining Workday .

In this case, Workday appears to be acquiring the talent. It wants to take the Rallyteam team and incorporate it into the company’s engineering unit to beef up its machine learning efforts, while taking advantage of the expertise it has built up over the years connecting employees with interesting internal projects.

“With Rallyteam, we gain incredible team members who created a talent mobility platform that uses machine learning to help companies better understand and optimize their workforces by matching a worker’s interests, skills and connections with relevant jobs, projects, tasks and people,” Workday’s Cristina Goldt wrote in a blog post announcing the acquisition.

Rallyteam, which was founded in 2013, and launched at TechCrunch Disrupt San Francisco in September 2014, helps employees find interesting internal projects that might otherwise get outsourced. “I knew there were opportunities that existed [internally] because as a manager, I was constantly outsourcing projects even though I knew there had to be people in the company that could solve this problem,” Rallyteam’s Huan Ho told TechCrunch’s Frederic Lardinois at the launch. Rallyteam was a service designed to solve this issue.

[gallery ids="1055100,1053586,1053580,1053581"]

Last fall the company raised $8.6 million led by Norwest Ventures with participation from Storm Ventures, Cornerstone OnDemand and Wilson Sonsini.

Workday provides a SaaS platform for human resources and finance, so the Rallyteam approach fits nicely within the scope of the Workday business. This is the 10th acquisition for Workday and the second this year.

Chart: Crunchbase

Workday raised over $230 million before going public in 2012.

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Jun
08

1Mby1M Virtual Accelerator Investor Forum: With Ann Winblad of Hummer Winblad (Part 4) - Sramana Mitra

Sramana Mitra: I’m glad you segued us in here. I’m a little bit uncomfortable with the level of sensationalization that goes on on this issue. The issue is a lot more complex and somewhat scientific...

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Original author: Sramana Mitra

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Jun
08

Ray Dalio’s Principles of Success

June 8, 2018

I became a Ray Dalio fan earlier this year when I read his book Principles. I went on my Ray Dalio journey, read a bunch about him on the web, and watched some of his videos and interviews.

While on vacation last week, I watched his new 30-minute cartoon adventure Principles for Success. It’s spectacular and worth 30 minutes of your life to watch and ponder.

His Episode 4: The Abyss, made me think “just another one of those” (a Dalio construct that I’ve come to love.) My abyss happened between 2001 and 2003 and, while I wasn’t alone in my mistakes as Dalio was in his, I related deeply to it.

Also published on Medium.

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Original author: Brad Feld

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Jun
08

Salesforce.com Resolutely Marches Towards $20 Billion Milestone - Sramana Mitra

Salesforce.com (NYSE: CRM) is a horse that just keeps giving. It recently released its first quarter results, and unsurprisingly, the results shot past market expectations. The market was pleased and...

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Original author: MitraSramana

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Jun
08

Thought Leaders in Artificial Intelligence: Paul Daugherty, CTO and Chief Innovation Officer of Accenture (Part 5) - Sramana Mitra

Sramana Mitra: Can I tell you a little bit about my interpretation of what’s happening in this realm? Paul Daugherty: Sure. Sramana Mitra: I think there’s going to be so much experimentation in this...

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Original author: Sramana Mitra

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Jun
08

Roundtable Recap: June 7 – Investor in Three SaaS Unicorns - Sramana Mitra

During this week’s roundtable, we had as our guest Ravi Mohan, Managing Director at Shasta Ventures, a firm that has invested in three SaaS Unicorns. Ravi discussed these investments: Apptio,...

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Original author: Sramana Mitra

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Apr
27

Social media stocks are sinking as GOP lawmakers consider new regulation

M17 Entertainment, a Taipei-based live streaming and dating app group, priced its IPO this morning on the NYSE and was expected to open trading today according to their final press release. But with just a little more than two hours to go before market closing, it’s still not trading, and no one seems to know why.

An interview I had scheduled with the CEO earlier this afternoon was canceled at the last minute, with the company’s representative saying that M17 couldn’t comment since its shares were not yet actively trading, and thus the company remains under an SEC-mandated quiet period.

M17 has had a rocky non-debut so far. Originally targeting a fundraise of $115 million of American Depository Receipts (shares of foreign companies listed domestically on the NYSE), the company concluded its roadshow raising less than half of its target, for a final investment of $60.1 million. The company priced its ADR shares at $8 each, with each ADR representing 8 shares of the stock’s Class A security.

My colleague Jon Russell has covered the company’s rapid growth over the past three years. It was formed from the merger of dating app company Paktor and live-streaming business 17 Media. Joseph Phua, who was CEO of Paktor, became CEO of the joint M17 company following the merger. Together, the two halves have raised tens of millions in venture capital.

M17 provides live-streaming and dating apps throughout “Developed Asia”

The company’s main product is a live-streaming product where creators can build their fan bases and brands. Fans can purchase virtual gifts to send to their favorite artists, and those points are proving to be extraordinarily lucrative for the company. The company, according to its amended F-1 statement, has seen tremendous revenue growth, netting $37.9 million of revenue in the first three months of this year. The company has also been able to attract more live-streaming talent, increasing its contracted artists from 999 at the end of December 2016 to 7,719 at the end of March this year.

That’s where the good news ends for the company. Despite that revenue growth, operating losses are torrential, with the company losing $24.8 million in the first three months of this year. The company in its statement says that it has $31.4 million in cash and cash equivalents, giving it limited runway to continue operations without a strong IPO debut.

User growth has been mostly stagnant. Active monthly users has increased from 1.5 million to 1.7 million between March 31 of 2017 and 2018. What the company has succeeded in doing is monetizing those users much better. The percentage of users paying on the platform has more than doubled over the same time period, and the value of those users has increased more than 40 percent to $355 per user per month.

The big challenge for M17 is revenue quality. Live streaming represents 91.4 percent of the company’s revenues, but those revenues are concentrated on a handful of “whales” who buy a freakishly high number of virtual gifts. The company’s top 10 users represent 11.8 percent of all revenues (that’s $447,220 per user in the first three months this year!), and its top 500 users accounted for almost a majority of total revenues. That concentration on the demand side is just as heavy on the supply side. M17’s top 100 artists accounted for more than a third of the company’s revenue.

That concentration has improved over the past few months, according to the company’s filing. But Wall Street investors have learned after Zynga and other whale-based revenue models that the sustainability of these businesses can be tough.

Finally, one complication for many investors wary of the increasing use of dual-class stock issues is the governance of the company. Phua, the CEO, will have 56.3 percent of the voting rights of the company, and M17 will be a controlled company under NYSE rules according to the company’s amended filing. Class B shares vote at a 20:1 ratio with Class A share voting rights.

All of this is to say that while the company has had some dizzying growth in its revenue numbers over the past 24 months, that success is moderated by some significant challenges in revenue concentration that will have to be a top priority for M17 going forward. Why the company priced and hasn’t traded remains a mystery, and we have reached out for more comments.

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