May
21

CREXi raises $11 million to bring commercial real estate out of the Dark Ages

Managing, buying and selling commercial real estate is a fairly primitive process. CREXi founder Mike DeGiorgio remembers one experience in 2014 when he was required to fax and mail details about an urgent transaction to the leasing office, a move that made him think he was back in the era of Pogs and MTV’s Real World Season 1.

“There simply was no great industry solution for researching markets, finding comps, transacting, connecting with key stakeholders, purchasing or investing in properties, renting or leasing space, getting a loan, finding partners to purchase properties with, marketing yourself or the properties you own, sell or lease etc.,” he said. “I started thinking about technology solutions for the commercial real estate industry to solve many of these inefficiencies in the CRE space. I could not figure out why it hadn’t been done and set out to build CREXi to help industry stakeholders be more efficient and to make the industry more liquid, transparent and easier to access.”

CREXi — the CRE stands for “commercial real estate” — has been around since 2015, but recently announced an $11 million Series A as well as some interesting user numbers. Key investors include Jackson Square Ventures, Manifest Investment Partners, Lerer Hippeau, Freestyle Capital, TenOneTen Ventures and Founder Collective. The company has managed more than 100,000 “properties brought to market” on its platform and they have 200,000 users per month. They see more than 6,000 properties listed on the site each month.

The service is a suite of tools that streamlines the entire CRE processing.

“We give brokers the ability to find, manage and qualify leads, market their properties with customizable emails, and communicate with interested parties through in-app messaging. Additionally, our features help brokers interact with the industry and its stakeholders; solicit, make, accept, counter and negotiate offers; run competitive bidding processes; run escrow and closing processes; research markets and sold properties etc.,” said DeGiorgio.

While CRE isn’t very sexy, it’s clear that the industry can use all the help it can get. Considering CREXi manages $450 billion in property value, it’s also clear that this is a lucrative market ripe for disruption.

“We are the first platform to take the entire commercial real estate transaction process online with a simple to use and intuitive interface,” said DeGiorgio. “We collaborate with brokers and principals to blend technology with the fundamentals of CRE transactions, addressing the shifting needs of industry professionals to maximize revenue and minimize time spent on administrative tasks.”

Now he just has to get everyone to throw away their postal scales and fax machines and help CRE enter the era of Honey Boo Boo and leave the era of the Olsen Twins.

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May
21

The BCT terminal brings crypto to Wall Street

The last revolution in front end trading technology – essentially the tools traders use to interact with the markets – came when Bloomberg released their primitive but surprisingly resilient terminals. Now that new systems are hitting the Street, new tools are necessary to help traders make better decisions. That’s why BCT made their interesting new Terminal.

The tool is essentially a double-screened PC with a great deal of proprietary software installed. It looks at multiple exchanges at once and lets you read news, prices, and market changes in one easy-to-understand package. I sat down with the BCT team to look at their product more closely and despite some early marketing hiccups the team seems to have a cool – if complex – product for those more familiar with the Bourse than Binance.

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May
21

1Mby1M Virtual Accelerator Investor Forum: With Charlie O’Donnell of Brooklyn Bridge 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 Charlie O’Donnell, Brooklyn Bridge Ventures was...

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Original author: Sramana Mitra

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May
21

How does the Flipkart-Walmart Deal Impact Indian E-Commerce Startups? - Sramana Mitra

The Indian online marketplace is marked by a keenly contested battle between Flipkart and Amazon. According to RedSeer, Flipkart, including its online fashion acquisitions Myntra and Jabong, had a...

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Original author: Sramana_Mitra

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May
21

One of Google’s biggest spenders says there's a hole in Amazon’s ad business (AMZN, GOOGL)

Despite their huge rivalry, Amazon typically buys lots of ads on Google. But lately something fishy's been going on.

Last month, ad agency Merkle, which handles $900 million in annual US search spend for advertisers, noticed that Amazon suddenly stopped buying advertisements in Google Shopping results, a coveted section at the top of the page where brands battle to outbid each other on queries such as "office supplies" and "home decor."

Google's ad auction prioritizes and places images of products that users can click on to buy products. Thus, Amazon often competes against retailers like Target and Walmart to be featured most prominently. According to Merkle's estimates, Amazon spent $50 million on product listing ads (PLAs) in 2017.

So when links for the e-commerce juggernaut that is Amazon abruptly disappeared, Merkle wondered whether Amazon was beefing up its own copycat version of Google's ad format to compete for search budgets.

"It's hard to guess at why Amazon changed course," wrote Andy Taylor, associate director of research at Merkle, in a blog post. "The wide breadth of its product offering, competitive pricing and ever expanding group of Prime members make it a formidable competitor."

Amazon did not respond to a request for comment.

Then last Wednesday, Merkle reported that Amazon's ads were suddenly back for a handful of product queries.

Regardless of the reason for Amazon's switch off and on, media buyers see Amazon as a threat to the duopoly of Google and Facebook that controls the bulk of digital advertising spend. "They are coming, and they are coming big time," former WPP CEO Sir Martin Sorrell told attendees just this week at the Digital Media Summit in New York.

Business Insider caught up with Taylor at Merkle to discuss the Amazon hype, and why the company still has a long way to go to compete against Facebook and Google.

Lauren Johnson: What happened? Did Amazon pull the ad spend themselves or was Google involved, too?

Andy Taylor: I think this is an Amazon-driven decision to pause their ads. It's hard to say why—it could have been an incremental test, which a lot of advertisers go through from time to time to get a sense for how many orders they would be getting otherwise. That gives you a better sense on how valuable the ads are to your business. It's possible they were doing something like that.

Andy Taylor is associate director of research at Merkle. Merkle

Johnson: And now they're back to running ads?

Taylor: We only just started noticing them [Wednesday] morning pop up in shopping results—it seems like they're present for a number of different products at this point. It's too early for us to quantify it because our competitive insight reports that we download from Google AdWords takes a couple of days to populate with data.

We've seen them pop up for office supply queries. If you navigate to Google Shopping and start doing different searches and start filtering for Amazon.com, you can see a number of home goods-related products.

We had been seeing them decline in how prevalent they were in shopping results even at the end of the first quarter. Their impression share started to fall so it will be interesting to see if they'll [get] back to the end of first-quarter level or if they've completely reversed it and have the same presence that they had prior to that, which was strong.

Johnson: How significantly was Amazon promoted within Google shopping ads before you noticed the drop-off in the first quarter?

Taylor: Against home-goods advertisers, they were showing up for as many as 40% to 45% of impressions for relevant auctions. In mid-2017, we started seeing them spill over into related categories like office-supply advertisers and novelty gifts.

Johnson: How aggressive is Amazon developing its own version of product listing ads for marketers to buy?

Taylor: We've seen meaningful growth for our advertisers on Amazon. In the first quarter, Amazon spend increased 96% year-over-year, and that's just on sponsored product ads, which are most similar to Google shopping listings. Amazon also has another ad product called headline search ads, which are carousel banner ads that are shown at the very top of Amazon—those increased 90% year-over-year in ad spend during Q1.

Pricing is what's driven a lot of the growth over the past year. It's gotten a lot more competitive. Certainly we see Amazon putting some effort into driving up that ad spend. At this point their platform is still pretty early going so there are a lot of things that they could add to help advertisers spend even more: Geographic targeting isn't currently available on Amazon, which is available through Google AdWords. But in terms of early-adopter growth, it's been very strong so far.

Johnson: What does Amazon offer targeting wise?

Taylor: Honestly, with search products it's pretty limited. One advantage that it has on Google is that these ads are keyword-targeted. On Google, you're using product bids where you bid for a particular product and Google decides which queries that product is relevant to. With Amazon, you can specify that a product be shown for a specific keyword.

But at this time, we don't have any device-bidding controls or any way to incorporate remarketing with or target different geographies with different products and keywords [on Amazon]. All of that stuff is available on Google but not on Amazon.

Johnson: What's the biggest misconception about Amazon from an advertising perspective?

Taylor: It might boil down to the targeting options. Because Amazon has so much information about the users that are searching on their website, the natural assumption would be that the targeting options would be very granular and tightly tied to the identities of these users. But really that's just not the case in terms of the targeting options that are available.

Original author: Lauren Johnson

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May
21

Whisk, the smart food platform that makes recipes shoppable, acquires competitor Avocando

Whisk, the U.K. startup that has built a B2B data platform to power various food apps, including making online recipes “shoppable,” has acquired Avocando, a competitor based in Germany.

The exact financial terms of the deal remain undisclosed, although TechCrunch understands it was all-cash and that Whisk is acquiring the tech, customer base, integrations and team. Related to this, Avocando’s founders are joining Whisk.

“The team is joining Whisk to help scale a joint global vision to help leading businesses create integrated and meaningful digital food experiences using cutting-edge technology,” says Whisk in a statement.

To that end, Whisk’s “smart food platform” enables app developers, publishers and online supermarkets/grocery stores to do a number of interesting things.

The first relates to making recipes shoppable, i.e. making it incredibly easy to order the ingredients needed to cook a recipe listed online or in an app. Specifically, Whisk’s platform parses ingredients in a recipe, and matches it to products at local grocery stores based on user preferences (e.g. “50g of butter, cubed” matched to “250g Tesco Salted Butter”). It then interfaces with the store to fill the user’s basket with the needed items.

The second is recipe personalization. Based on user preferences (e.g. disliked ingredients, diet, previous behavior, deals at a favorite store and trending recipes based on location), Whisk is able to create personalized recipe feeds, search results and meal plans.

The third aspect is an Internet-of-Things play. This is seeing Whisk’s data power experiences that connect IoT devices with different parts of a user’s journey. Think: smart fridges connected to recipes.

“As the e-commerce grocery market quickly accelerates across Europe, players are increasingly looking for ways to connect recipe content to grocery retailers and provide consumers with personalized nutrition, planning and purchase options right from the comfort of their kitchen,” says the startup.

Whisk says its platform powers experiences for more than 100,000,000 monthly users through the applications of its clients. They include retailers like Walmart, Amazon, Instacart and Tesco, which use Whisk to enable online grocery shopping via recipes. On the IoT front, Samsung is using Whisk to build smart food applications that take user preferences, what’s in their fridge, what offers are in the supermarket, and recommends recipes. Other customers include publishers, such as the BBC, and food brands like McCormick, Nestle, Unilever and General Mills.

Meanwhile, Whisk says it is currently focused on the U.S., U.K. and Australia, and with today’s acquisition will expand services across Europe. “Together, Germany, France and Spain represent a larger e-commerce grocery market than both the U.S. and U.K. individually, with the largest online recipe usage per capita figures in the world,” adds the company.

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May
21

Microsoft has acquired a veteran AI team, including the ex-chief speech scientist for Siri (MSFT)

Microsoft's Cortana assistant. Microsoft

Microsoft has acquired an artificial intelligence startup, Semantic Machines, to bolster its efforts in "conversational AI" and potentially make its Cortana virtual assistant better at understanding natural language enquiries.

Microsoft didn't disclose how much it paid for Semantic Machines, but said it would open a new AI research centre in Semantic Machines' hometown of Berkeley.

Semantic Machines is made up of a number if AI veterans, and gives Microsoft access to some formidable talent. Larry Gillick is Semantic's chief technology officer and a former chief speech scientist for Apple's Siri. Microsoft also namechecked UC Berkeley professor Dan Klein and Stanford University professor Percy Liang.

Several Semantic staffers also worked at Nuance, the voice recognition company once powered Siri. Semantic's chief executive, Dan Roth, was cofounder of Voice Signal Technologies, which was acquired by Nuance in 2007.

Microsoft explained that most AI doesn't really understand much human communication, something that anyone who's put anything more than the simplest question to Siri will already know. "Most of today's bots and intelligent assistants respond to simple commands and queries, such as giving a weather report, playing a song or sharing a reminder, but aren't able to understand meaning or carry on conversations," Microsoft wrote in a company blog announcing the acquisition.

Semantic Machines' team and technology might fix that, by helping digital assistants like Cortana have a "natural dialogue."

"We call this 'conversational AI,'" Microsoft added.

Microsoft has been experimenting for some time in this space. Aside from Cortana, the company has dabbled in chatbots, though not always with great success. Its Chinese chatbot Xiaoice has millions of loyal followers who talk to it. But earlier chatbot experiments, such as Tay and Zo, spouted racist and anti-Microsoft messaging and had to be shut down.

Original author: Shona Ghosh

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Nov
23

Indian home healthcare platform Portea Medical raises $26M Series C

YouTuber Logan Paul stoked controversy for filming a dead body in a Japanese forest known for suicides. YouTube/Logan Paul

A striking league table has shown that Facebook and YouTube are the worst offenders when it comes to exposing children to some of the darkest and most adult themes on the internet.

Britain's highest-profile children's charity, the NSPCC, produced the league table after gathering reviews from more than 4,000 parents and young people. It features the "riskiest sites" when it comes to content involving suicide, violence, bullying, sex, and other adult themes.

You can see the table below. Facebook and YouTube posed a "high" risk to kids across all the categories examined, with a one in four chance of young people encountering adult content. They were therefore slapped with a red warning light. Business Insider has contacted both companies for comment.

NSPCC

Game "Grand Theft Auto: San Andreas" was ranked as being just as bad as Facebook and YouTube, while at the other end of the table were Tumblr and social media app Yellow. Another interesting result showed that Instagram, usually lauded as a positive place, was rated high for bullying and sexual content.

A 16-year-old girl told the NSPCC: "When you're watching a video of something like a makeup artist, a video can be at the side of something completely different that could be sexual/hurtful or anything else. It's easy to get yourself into a bad video." A 13-year-old Facebook user added: "I don't like that just random people can send you a friend request."

The NSPCC and other charities wrote to the British government with its findings and marked Facebook and YouTube out for particular criticism. John Carr, secretary of the UK Children's Charities' Coalition on Internet Safety, said:

"Facebook and YouTube still do not provide any meaningful information on the volume of reports relating to children, and the outcomes of such reports. These are woeful examples of the transparency that we can expect if we continue with self-regulation.

"The effect of this lack of transparency is that social networks are not being held to account for the measures they take to protect children, nor are they held to account for whether these measures are effective."

British Culture Secretary Matt Hancock.Parliamentlive.tv

The findings were published a day after the British government announced that it would introduce laws to rein in social media companies over the next two years. Culture Secretary Matt Hancock said he wants to fine the likes of Facebook and Snapchat for allowing children under the age of 13 to sign up for accounts.

Hancock told the BBC's "The Andrew Marr Show" on Sunday that the government invited 14 companies to discuss better protections for children, and only four showed up. According to a green paper published by the government, those who did turn up appear to include Facebook, Google, and Twitter.

"The fact that only four turned up gave me a big impetus to drive this legislation through," Hancock said. "Until now there's been this argument: Work with the companies, do it on a voluntary basis, you'll do more that way because the lawyers won't be involved."

Original author: Jake Kanter

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May
21

10 things in tech you need to know today

Original author: Shona Ghosh

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May
21

Catching Up On Readings: Valuation of Doctor-Patient Relationships - Sramana Mitra

This feature from The New York Times examines how the doctor-patient relationship saves lives as well as money and makes a case for reinventing the primary care delivery. For this week’s posts, click...

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Original author: jyotsna popuri

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Oct
05

1Mby1M Virtual Accelerator Investor Forum: With Deb Kemper of Golden Seeds (Part 2) - Sramana Mitra

Microsoft announced today that it has acquired Semantic Machines, a Berkeley-based startup that wants to solve one of the biggest challenges in conversational AI: making chatbots sound more human and less like, well, bots.

In a blog post, Microsoft AI & Research chief technology officer David Ku wrote that “with the acquisition of Semantic Machines, we will establish a conversational AI center of excellence in Berkeley to push forward the boundaries of what is possible in language interfaces.”

According to Crunchbase, Semantic Machines was founded in 2014 and raised about $20.9 million in funding from investors, including General Catalyst and Bain Capital Ventures.

In a 2016 profile, co-founder and chief scientist Dan Klein told TechCrunch that “today’s dialog technology is mostly orthogonal. You want a conversational system to be contextual so when you interpret a sentence things don’t stand in isolation.” By focusing on memory, Semantic Machines claims its AI can produce conversations that not only answer or predict questions more accurately, but also flow naturally, something that Siri, Google Assistant, Alexa, Microsoft’s own Cortana and other virtual assistants still struggle to accomplish.

Instead of building its own consumer products, Semantic Machines focused on enterprise customers. This means it will fit in well with Microsoft’s conversational AI-based products. These include Microsoft Cognitive Services and Azure Bot Service, which the company says are used by one million and 300,000 developers, respectively, and its virtual assistants Cortana and Xiaolce.

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Oct
07

Why building the metaverse is going to be a ‘thrilling ride’

Visitors look at a display of electronic facial-recognition technology that claims to be able to detect when students are talking or looking at their cellphones at the 21st China Beijing International High-tech Expo in Beijing, China. AP Photo/Mark Schiefelbein

A Chinese high school is using facial recognition technology to monitor and analyze students' behaviour.

The technology scans classrooms at Hangzhou No. 11 High School every 30 seconds and records students' facial expressions, categorizing them into happy, angry, fearful, confused or upset. The system also records student actions such as writing, reading, raising a hand, and sleeping at a desk.

The "intelligent classroom behavior management system," according to Global Times, also records students' attendance immediately, and students' faces are used to pay for canteen lunches and borrow items from the library.

The school's vice principal said students' privacy is protected because the technology doesn't save actual images from the classroom and stores data on a local server rather than the cloud.

Last year Chinese company Qihoo 360 shut down hundreds of its surveillance livestreaming channels after an uptick in privacy concerns. The channels streamed camera footage from several public locations including swimming pools, restaurants, and classrooms — the latter protected only by a password.

But security systems are rising in popularity after an increase in violence and questionable practices at Chinese kindergartens. In Beijing, all kindergartens are now required to have surveillance systems, some of which are even connected to local police monitoring systems.

The use of facial-recognition technology is soaring in China, where it is being used to increase efficiency and improve policing. Cameras are used to catch jaywalkers, find fugitives, track people's regular hangouts, and even predict crime before it happens.

But China isn't the only country introducing surveillance in schools. Earlier this year, India's capital territory Delhi said it would implement surveillance cameras at all governments schools, allowing parents to stream classroom footage in real time.

Original author: Tara Francis Chan

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Oct
06

AI-powered supply chain visibility boosted as Altana raises $100M

Harry Kargman is the CEO of Kargo. newyorkfestivals.com

The mobile-ad company Kargo closed out 2015 crossing the $100 million revenue threshold. A few years later, the company decided to blow everything up.

Kargo made its name building an ad network that sold a variety of custom mobile banners for publishers such as CNN, but over the past six months it's deliberately ripped up its business model. Instead of selling ads on a deal-by-deal basis, it has raced to morph into a software-driven ad platform.

That's meant turning over a significant portion of staff — less than 15%, according to CEO Harry Kargman — to replace traditional ad-sales executives and operators with engineering and data-oriented talent.

Indeed, Kargo has essentially endured what many digital publishers have gone through: It's had to ditch old-fashioned people-centric ad selling for building technology that allows marketers to plug in and buy ads as needed.

"We had a great high-end business, and in 2017 the market basically flipped on us in a six-month period," Kargman told Business Insider.

Kargman said he'd braced for programmatic advertising to affect his company for a few years. But given its mobile-ad focus, where ads and data and targeting don't operate mechanically the same way they do in the desktop world, things moved slower than expected.

Then things changed fast last year, and Kargo had to go through this reinvention in a truncated period, he said.

"We've been ready and waiting for this day," Kargman said. "Because there is this massive transformation taking place [in digital media]." Then mobile-ad-buying tech suddenly caught up. "It slammed us."

Kargman said Kargo's ad revenue was still 90% directly sold a year ago. Today, it's 50-50, programmatic versus direct, thanks to the company building its own custom supply-side platform, or SSP.

Among the brands that have been tapping into the Kargo SSP are Target, Microsoft, Verizon, Discover, and Unilever.

"After testing the approach, we've been able to scale our investment over the past few years due to strong results," Luis Di Como, senior vice president of global media at Unilever, said.

Last year, Kargo saw a just over double-digit decrease in its traditional ad-network business, while its automated ad demand tripled, despite having to work through a "whole host of plumbing problems."

Kargo has been pivoting its business while trying to move past legal headaches

Looming over Kargo's business shift has been an ugly lawsuit. A former Kargo sales executive was awarded $40 million last year after alleging that she faced wage discrimination at the company.

Kargo executives have contended that the employee in questions had faced performance issues.

Kargman lamented that the lawsuit happened, but said the company was not in the wrong and that the recent layoffs had nothing to do with the payout.

"Any time that you're in a lawsuit it is tough," he said. "It's sad, and we're glad it's behind us. We legally don't believe we did anything wrong. But I personally take responsibility."

Kargman said that in hindsight he wished the situation could have been handled without human resources and lawyers. "We could have had better bedside manners."

Becoming an engineering company

Even though Kargo has had to let go of staff — and reduce its footprint in Europe, thanks to GDPR, according to The Drum— the company has 15 jobs open, mostly in the data and analytics realm, Kargman said. The company is closing in on 250 staffers, including 70 in its engineering and product team, up from 30 a few years ago.

"We had to change up the constitution of the people here," he said. That has included hiring Edric Chan, who just joined Kargo as its head of programmatic, after a similar role at the ad-tech firm The Trade Desk.

"We just had our largest-ever fourth quarter last year," said Kargman, adding that Kargo's revenue is now significantly north of $100 million. "This move says that we're committed to figuring out to best serve our customers, and how to scale this business. Edric can actually take it and run with it."

Original author: Mike Shields

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May
20

Icy moons in the solar system hide so much liquid water, they make Earth look like a desert planet

Earth from space looks blue thanks to all of its water. NASA

Earth seems drenched with water from mountaintop to ocean bottom.

But our home planet is a desert compared to some places the solar system, both in terms of its total water volume and the amount of liquid on Earth relative to its size.

Consider Jupiter's ice-encrusted moon Europa, which is smaller than Earth's moon. Scientists recently used 20-year-old Voyager data to find even more evidence that Europa has twice as much water as our planet. Even tiny Pluto may have an ocean nearly as large as Earth's.

Steve Vance, a planetary scientist at NASA's Jet Propulsion Laboratory, has kept a close eye on research about ocean worlds over the years. He has rounded up estimates of ice thickness and ocean depth throughout the solar system to calculate roughly how much water may exist.

The graphic below uses Vance's data and other sources to show the probable volume of liquid water on nine known ocean worlds, including Earth:

Earth dwarfs other ocean worlds in the solar system, but several Europa, Pluto, and others have bigger oceans of liquid water. Jenny Cheng/Business Insider

Amounts of water are shown in zettaliters (ZL), a unit that's equal to 1,000,000,000,000,000,000,000 liters or 1 billion cubic kilometers. Earth harbors about 1.335 ZL of water, according to the National Oceanic and Atmospheric Administration.

In order of how much liquid water each world is estimated to have (from least to most), the ranking is: Enceladus, Triton, Dione, Pluto, Earth, Europa, Callisto, Titan, and Ganymede.

Ganymede, the largest moon of Jupiter, is the wettest world in the solar system for another big reason: A staggering 69% of its total volume may be liquid water, which is more than any other on the list.

Mimas, a moon of Saturn, and Ceres, the largest asteroid in the solar system, might also have oceans. But scientists aren't yet sure how big each one might be, if they exist at all. More space missions are required to find out.

NASA is currently planning a mission to Europa to map the icy moon in unprecedented detail. The Europa Clipper is expected to launch between 2022 and 2025. The probe will hopefully give us a better estimate of the size of Europa's ocean, and repeatedly "taste and sniff" water plumes spraying from its surface.

The European Space Agency is planning a similar mission called the Jupiter Icy Moons Explorer, which may launch in 2022 and reach Jupiter in 2030. That mission calls for two flybys of Europa and an 8-month orbit of Ganymede.

One of these robots could discover the first signs of alien life hundreds of millions of miles from Earth.

Original author: Dave Mosher and Jenny Cheng

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May
13

Thought Leaders in Artificial Intelligence: Samir Addamine, CEO of FollowAnalytics (Part 5) - Sramana Mitra

Amazon Prime offers more than just two-day shipping, including its two-hour delivery service, Prime Now. AP/Mark Lennihan

Prime is Amazon's crown jewel.

The membership is one of the most important parts of the company's offerings, and Amazon takes great care to keep it competitive.

Prime customers are Amazon's most frequent and valuable customers. CEO Jeff Bezos recently revealed that there are now more than 100 million people around the world paying for the service.

Prime members got some bad news when Amazon announced in April that it would raise the annual price of membership by $20 a year, from $99 to $119. Amazon previously announced it would increase the price of monthly Prime memberships from $10.99 to $12.99.

There has been some speculation that the higher price of Prime might make some reconsider paying for another year of membership, but most experts don't think a drop in subscriptions would actually happen based on how many people have reported having positive experiences with the service.

While many might associate Prime solely with its two-day-shipping guarantee, it also entails other benefits like video and music streaming, and there are some items that are available only to Prime members, which creates value.

Just last week Prime members were given another perk: big discounts at Whole Foods to be rolled out at stores this summer. Amazon keeps adding perks just when customers might quit over rising prices.

The value of Prime has risen steadily as Amazon has added more benefits to the program over the years. A recent JP Morgan analysis estimated that the service is actually worth $785 a year when everything it offers is counted together. That's six and a half times the actual cost of an annual Prime subscription, even with the price increase. It's also an increase of about 12% from what JP Morgan estimated Prime to be worth last year, when its analysts said membership was worth $700 a year.

"Prime delivers such massive scale and features that we believe it would be very difficult for any company to replicate and compete against, and Amazon continues to expand and add more value to Prime by adding new benefits and growing existing offerings," the analysts wrote.

That means that even if a customer does not take advantage of everything Prime membership has to offer, there's still the perception that they're getting a good value for their money.

"People are sensitive to losses, and price increases count as losses psychologically," Ryan Hamilton, a professor of marketing at Emory University, told the Washington Post. "The broader perspective, though, is that people tend to be willing to pay for what they perceive as value."

As Amazon adds services, it wants to make sure that when customers take a second look at whether they're really getting value for their money after the price increase, they're satisfied with their membership and will renew another year.

New products and services are one way Amazon does this, but it must take care that its current service standards don't slip in the meantime. Business Insider has spoken to and heard from many customers who claim that Prime shipping standards have slipped. It may all be a misunderstanding, however.

Original author: Dennis Green

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Nov
08

Revolut is applying for a European banking license to become a true bank

(L-R) Jason Statham and Dwayne Johnson in "The Fate of the Furious." YouTube/Universal

David Leitch may only have two feature films under his belt, but he's quickly becoming one of the most sought-after directors of action movies working today.

With the release of the highly anticipated "Deadpool 2," coming Friday, Leitch has proven with movie number three that he's not scared of the big stage — as it's destined to dethrone box-office champ "Avengers: Infinity War" and score a huge box-office opening weekend.

But he's not ready to sit back and take in his good fortune. He's gearing up for his next movie.

Leitch has signed on to direct the first spin-off of Universal's popular "Fast and the Furious" franchise, "Hobbs and Shaw," which will put the spotlight on Dwayne "The Rock" Johnson's Luke Hobbs and Jason Statham's Deckard Shaw.

David Leitch (R) on the set of "Deadpool 2." 20th Century Fox Both have been in multiple movies in the "Fast" franchise, but the two characters shined as an unlikely tandem in "The Fate of the Furious," and now they are getting their own movie.

"Dwayne and Jason's chemistry in that movie were some of my favorite stuff out of it," Leitch told Business Insider while doing press for "Deadpool 2" on Tuesday. "So to be able to spin something off and make it my own imprint in that universe, that's exciting."

Cameras don't begin running until September, but Leitch said there's a working draft of the script and is excited about the process right now of crafting the story — especially with the screenwriter the movie brought on.

"Chris Morgan is the writer and one of the producers. He's written a majority of the ['Fast and Furious'] movies," Letich said. "So we're having fun with that process right now."

Recently Johnson posted a picture on Instagram of him with Leitch and Statham, and wrote in the caption: "Been wanting to work with David for years now. Very talented and knows how to create and shoot bad ass, cool and FUN characters."

When asked if working with someone as social-media savvy as Johnson would take some getting used to, Leitch said the experience of working with Ryan Reynolds on "Deadpool 2" was a good primer.

"I think when you look at how Ryan and Dwayne handle social media and use it as a promotion of their art, they're both really great at it," Leitch said, who admitted that Reynolds' intimate involvement in the marketing strategy of "Deadpool 2" was something he'd never experienced on a movie before. "So there are a lot of lessons learned from Ryan in this experience that hopefully I can take that on to the experience I'm going to have with Dwayne and Jason."

"Hobbs and Shaw" is slated for release in July 2019.

Original author: Jason Guerrasio

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May
20

Reddit's Alexis Ohanian was the one big tech mogul spotted at the royal wedding, and he documented the whole thing on Twitter

Reddit's Alexis Ohanian was looking fly for a tech guy at the royal wedding of Prince Harry and Meghan Markle. Shaun Botterill/Getty

Thanks to wife Serena Williams, Reddit cofounder Alexis Ohanian scored an invite to the royal wedding of Prince Harry and Meghan Markle at England's St. George's Chapel on Saturday.

"In London for my wife's friend's wedding," Ohanian shared to Twitter on Saturday.

So casual.

Celebrities, including Oprah, Amal and George Clooney, Elton John, David and Victoria Beckham, and many of Markle's "Suits" costars descended on Windsor Castle for the royal nuptials.

Ohanian, who is best known as one of the cofounders of Reddit, where he is still executive chairman, was the only tech industry A-lister spotted at the wedding event of the year.

His public profile has risen significantly since marrying tennis great Williams in 2017. The unlikely couple welcomed a baby girl, Alexis Olympia Ohanian Jr., in September.

Ohanian had fun on Saturday sharing behind-the-scenes photos from the royal wedding.

Original author: Melia Robinson

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May
20

1Mby1M Virtual Accelerator Investor Forum: With Darshan Vyas of LOUD Capital (Part 3) - Sramana Mitra

Sramana Mitra: The issue that we are seeing is that a lot of companies are not ready for a $5 million to $10 million Series A. We need funds that can do $1 million to $3 million Series A. That’s only...

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Original author: Sramana Mitra

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Nov
07

What happens when you sell your startup?

On any given day in the United States, more than 450,000 people are behind bars awaiting their constitutionally mandated fair trial. None of them have been convicted of a crime — they’ve been accused of committing a crime, but no formal ruling of guilt or innocence has been made. That means these hundreds of thousands of people are incarcerated simply because they don’t have the financial means to post bail. 

Bail was originally designed to incentivize people to show up for their court dates, but it has since evolved into a system that separates the financially well-off from the poor. It requires arrested individuals to pay money in order to get out of jail while they await trial. For those who can’t afford bail, they wind up having to sit in jail, which means they may be at risk of missing rent payments, losing their jobs and failing to meet other responsibilities. 

Money bail is all too often a common condition to secure release from jail while a case is in progress. Cash bail systems result in leaving many people incarcerated, even though they haven’t been convicted of a crime. 

The cash bail system in the United States is one of the greatest injustices in the criminal justice system, ACLU Deputy National Political Director Udi Ofer tells TechCrunch. Bail reform, Ofer says, is a “key way to achieve” the goals of challenging racial disparities in the criminal justice system and ending mass incarceration. 

As we explored in “The other pipeline,” the criminal justice system in the United States is deeply rooted in racism and a history of oppression. Black and Latino people comprise about 1.5 million of the total 2.2 million people incarcerated in the U.S. adult correctional system, or 67 percent of the prison population, while making up just 37 percent of the total U.S. population, according to the Sentencing Project.

With a criminal justice system that disproportionately affects people of color, it’s no wonder the cash bail system does the same. For one, people of color are 25 percent more likely than white people to be denied the option of bail, according to a pre-trial study by Dr. Traci Schlesinger. And for the black people who are given the option to pay bail, the amount is 35 percent higher on average than bail for white men, according to a 2010 study.

The national felony bail median is $10,000. For those who can’t afford it, they have to rely on bail bond agencies, which charge a non-refundable fee to pay the required bail amount on the person’s behalf. The bail bond companies, which are backed by insurance companies, collect between $1.4 billion and $2.4 billion a year, according to the ACLU and Color of Change.

And if bail bond companies are out of reach, those who are sitting in jail awaiting trial are more likely to be convicted of the crime they were charged with. The non-felony conviction rate rose from 50 percent to 92 percent for those jailed pre-trial, according to a study by the New York City Criminal Justice Agency. Along the way, leading up to the trial, some prosecutors incentivize people to plead guilty to the charges even if they’re innocent.

“It’s time to end our nation’s system of cash bail that lets the size of your wallet determine whether you are granted freedom or stay locked up in jail,” Ofer says. “Money should never decide a person’s freedom yet that’s exactly what happens every day in the United States.”

Pre-trial detention is also costly to local cities, counties and taxpayers. It costs about $38 million a day to keep these largely nonviolent people behind bars, according to the Pretrial Justice Institute. Annually, that comes out to about $14 billion to jail unconvicted people.

“The only people benefiting from bail is the for-profit bail industry,” Ofer said. “If we’re ever going to end mass incarceration in the United States, then we need to end cash bail.”

Bail reform is coming

Across the nation, bail reform has made its way into a handful of states. New Jersey’s bail reform law took effect last January; since then, its daily jail population has dropped 17.2 percent, and courts have imposed cash bail on just 33 defendants out of 33,400, according to the ACLU.

The ACLU itself is working on bail reform in 38 states, including California, where Ofer says he is optimistic reform will happen this year. Right now, a pre-trial release bill, Senate Bill 10, is up for consideration in the Assembly. The bill argues California should ensure people awaiting trial are not incarcerated simply because they can’t afford to pay bail. The bill also advocates for counties to establish pre-trial services agencies to better determine if people are fit to be released.

The bill, introduced by Senators Bob Hertzberg and others, is backed by the ACLU and Essie Justice Group, an Oakland-based organization that advocates for actual justice in the criminal justice system.

“Today we have a system that allows for people to be released pre-trial if they have enough money to afford their bail,” Essie Justice Group founder Gina Clayton tells TechCrunch. “Everyone else is required to sit inside of a cage without any way out.”

Essie Justice Group works mostly with and for women who have incarcerated loved ones. Often, the only way out for people is help from family or a plea deal, Clayton says.

“When we see people making the bail, we see that women are going into tremendous debt and are also beholden to an industry that has time and time again been cited and known to practice in quite an incredibly despicable way in terms of coercing and harassing their customers,” Clayton says. “When we think about who are the people who know about what’s going on with bail, it’s black and brown women in this country.”

For the past two years, Essie Justice Group held an action around Mother’s Day, with the goal of bailing moms out of jail or immigration detention. Last year’s action led to the release of 30 women.

Photo via Essie Justice Group

Can tech help?

The short the answer is maybe. Earlier this month, Google banned ads for bail bond services, which Clayton says is the largest step any corporation has taken on behalf of people who have loved ones in jail. But while tech can help in some ways, Clayton has some concerns with additional for-profit entities entering the criminal justice system.

“There are definitely tech solutions that I’m very against,” Clayton said, but declined to comment on which ones in particular. “I will say that my energy around this doesn’t come from an imagined place. I’m seeing it happen. One of the things we’re seeing is companies who are interested in bail reform because they see another opportunity to make money off of families. Like, ‘let this person out, but have them, at a cost, check in with people I hire to do this fancy but expensive drug testing three times a week, pay for an ankle shackle or bracelet and GPS monitoring.’ I think the companies that are making money off of those types of things are the ones we need to be wary of.”

There is, however, one for-profit company that immediately jumped to Clayton’s mind as being one doing actual good in the criminal justice space. That company is Uptrust, which provides text message reminders to people regarding court dates.

“I think that is a really great addition to the landscape,” Clayton says. “The reason I’m a proponent of theirs is because I understand their politics and I know what they won’t do, which is take it a step further or get involved with getting incentivized to add on bells and whistles that look less like freedom for people but more revenue for them.”

Uptrust, founded by Jacob Sills and Elijah Gwynn, aims to help people make their court dates. While the movies like to depict flight risks and people skipping town ahead of their court dates, failure to appear in court often comes down to a lack of transportation, work conflicts, not receiving a reminder, childcare or poor time management, Sills tells TechCrunch.

That’s where the idea came to humanize the system a bit more, by enabling public defenders to more easily connect with their clients. Uptrust is two-way in nature and reminds people on behalf of the public defender about court dates. Clients can also communicate any issues they may have about making it to court.

“If the public defender knows the client has an issue, they can usually get court moved,” Sills says. “But if they don’t have the information, they’re not going to lie on behalf of clients.”

Because public defenders don’t have much budget, Uptrust doesn’t charge very much, Sills says.

“But they really care about the client and one of the things we saw with this was we needed to change the whole front end of the system to be less adversarial and more human,” Sills says.

In addition to text reminders, Uptrust enables public defenders to assist with other needs clients may have.

“A lot of stuff around bail reform is around risk assessment rather than need assessment,” Sills tells me. “But we saw a lot of these individuals have needs, like help with rides, child care or reminders.”

Public defenders who are invested in the care of their clients can remind them via Uptrust to do things like ask for time off work or schedule child care.

For the end-user, the client, Uptrust is all text-based. For the public defenders, Uptrust offers a software solution that integrates into their case management systems.

Since launching in the summer of 2016 in California’s Contra Costa County, the court appearance rate improved from 80 percent to 95 percent, Sills says. To date, Uptrust has supported 20,000 people with a five percent FTA rate.

“As we improve product, if we can get [the FTA rate] down to 3 percent, you really can start taking that data and pushing forth major policy change,” Sills says.

Uptrust’s goal is to shift from risk assessment to needs assessment and ensure people are supported throughout their interactions with the criminal justice system.

“Our view is in terms of bail reform, we need to make sure there’s not a proliferation of things like ankle monitors and whatnot,” Sills says. “For us, success is really being a subcontractor to the community as well as working with the government. I think there’s a huge risk in bail reform as it relates to technology because people see it as a big business opportunity. If a company replaces the government, they may not have the community’s best interest in mind. So it’s important to keep in mind they have the community’s best interest in mind.”

Similar to Uptrust, a tech organization called Appolition works by operating within the confines of the system. Appolition, founded by Dr. Kortney Ryan Ziegler, enables people to funnel their spare change into the National Bail Out fund. As of April, Appolition has facilitated more than $130,000 to go toward bail relief. Ziegler was not available for comment for this story.

Promise, on the other hand, aims to provide an alternative to the cash bail system. In March, Promise raised a $3 million round led by First Round Capital with participation from Jay-Z’s Roc Nation.

The idea is to offer counties and local governments an alternative approach to holding people behind bars simply because they can’t afford bail. With Promise, case managers can monitor compliance with court orders and better keep tabs on people via the app. GPS monitoring is also an option, albeit a controversial one.

Let’s say you get arrested and end up having a bail hearing. Instead of asking you to pay bail, the public defender could suggest a pre-trial release with Promise. From there, Promise would work with the public defender and your case manager to determine your care plan.

“It’s clear that our values are about keeping people out of jail,” Promise CEO Phaedra Ellis-Lamkins told me on an episode of CTRL+T. “Like, we’re running a company but we fundamentally believe that not just it’s more cost-effective but that it’s the right thing to do.”

Instead of a county jail paying $190 per day per person, Ellis-Lamkins said, Promise charges some counties just $17 per person per day. In some cases, Promise charges even less per person.

It’s that for-profit model that worries Clayton.

“Whenever you bring in the for-profit ethos in a criminal justice space, I think we need to be careful,” Clayton says.

She didn’t explicitly call out any companies. In fact, she said she doesn’t feel ready to make a judgment on Promise just yet. But she has a general concern of tech solutions that “dazzle and distract system actors who we really need to hold accountable and see operate in more systemic, holistic ways.”

Solutions, Clayton says, look like social safety nets like hospitals and clinics instead of jails.

“If we want to really move ourselves away from this path we’ve been on,” Clayton says, “which is towards normalizing state control of people, then we should be really careful that our system that once looked like slavery to Jim Crow to mass incarceration doesn’t then become tech surveillance of all people.”

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Nov
07

Smart trucking startup CargoX raises $20M

Amazon CEO Jeff Bezos. Drew Angerer/Getty Images

Amazon is rumoured to be getting into the robot business.

The online retail giant is quietly developing consumer robots that can help customers around the home, with a potential launch date of 2019, Bloomberg reported.

According to one former senior executive at both Facebook and Google, the news is evidence of how Amazon is a "silent assassin" — and that the retailer could one day even give Facebook a run for its money.

Richard Wooldridge is a seasoned tech executive, working as the chief operating officer (COO) at two of the highest-regarded hardware labs in tech: Facebook's secretive Building 8, and Google's famed ATAP (Advanced Technologies and Products) skunkworks.

He recently joined Israeli AI drone startup Airobotics as its new COO, and in an interview with Business Insider, he explained why he's incredibly bullish on Amazon.

Amazon is the 'silent assassin'

"Whenever I've done new innovation both at Google and Facebook, it's looking, for me, at the gap in the market and what pain point you're trying to fix [...] is there market research that say that's needed, or [...] are you disrupting a market that consumers really haven't though about," Wooldridge said.

This, he said, is what Amazon has excelled at. "Five years ago people laughed at Alexa," Amazon's AI-powered smart speaker, but it now dominates the burgeoning market.

"I think for me, people underestimate what they can be [...] Amazon is that silent assassin that keeps creating solutions."

When it comes to the robot project, the success or failure will depend on how transformative it will be to people's lives, and how autonomously it will be able to run, the exec said.

"If this requires a lot of manhandling by the consumer this is just too much work for us," said Wooldridge. However, the rumours point to success of Amazon's broader strategy.

The Amazon Echo Show: a potential first step in a move by Amazon into the social-networking space. Amazon

Amazon could threaten Facebook one day

Amazon has always played a different game than many of its fellow tech giants. It has been unusually unconcerned with turning a profit. As CNBC reported on Friday, Apple made significantly greater profits in just three months ($48 billion) than Amazon has in its entire lifespan ($9.6 billion).

"If you look at where Amazon's evolved from [...] they have more in-roads to people's homes than anybody today [...] people trust, for some reason, the Amazon brand, because they deliver them parcels, buy groceries," Wooldridge said. "They have access to human behaviour just by the way people are shopping, buying products, using products, using their platform, their marketplace," Wooldridge said.

Amazon isn't scandal-free: It has been repeatedly criticized over its working conditions, with Business Insider reporting that employees urinated in bottles because they were concerned they'd be punished if they took breaks. But the company has managed to avoid any major privacy or security concerns like those Facebook has faced in recent months — putting them in a good position as they push further into consumers' lives.

There are already signs that this is an area of interest for Amazon: The Amazon Echo now lets you voice-call other Echo-owners, and the screen-equipped Amazon Echo Show lets users make video calls.

"If they ever get through all their Prime, their network a social aspect, I think Facebook's at risk, because I think they do become the one-stop shop," the exec said. "And there's no privacy issue."

Later he added: "I think if they ever get a social platform, then [...] they have a fully rounded solution. Because I think Apple's never really pursued that path, and [...] Google Plus really didn't get to that path. But if they've got a social platform where they can interact and you can share meaningful stories with your colleagues and friends, you can purchase from the same site, you've got the Alexa platform you can communicate their video video platform, and there's that trust there, I think that'd take them to a different level."

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Original author: Rob Price

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