Apr
08

Inside the most expensive part of the world's most expensive city, the Hong Kong billionaire enclave where Alibaba founder Jack Ma may have bought a $191 million mansion

Google CEO Sundar Pichai. Beck Diefenbach/Reuters

Google wants you to stop using the term FOMO.

Instead of complaining about your fear of missing out, the search engine giant would like you to celebrate — "JOMO," the joy of missing out. And it hopes a bunch of new features geared at preventing you from feeling addicted to your devices will help.

It's all part of an initiative that Google unveiled at this week's Google I/O developer conference called "Digital Wellbeing."

Intended to free Android users from the tether of their smartphones, the strategy includes features that allow users to do things like track the time they spend on social media, block distracting notifications, and make their screens less vibrant around bedtime.

But it's a big question whether the strategy will actually do any good. The features don't have much basis in science.

Dashboard tells you how often you check your phone

Google Wellbeing One of the primary new features in the Digital Wellbeing initiative is called Dashboard.

Dashboard shows you how frequently you check your phone or tablet, how much time you spend overall on your devices, and even how much time you spend within individual apps such as Facebook, YouTube, or Instagram.

Dashboard appears to be a reaction to the spate of recent stories that suggest that spending time on social media is universally bad for us. Some of those reports have claimed that Facebook and Instagram in particular are making us depressed and even "eroding" our brains.

While such claims make for good headlines, there's little-to-no good research to back them up. Most of the studies that have been done so far suffer from significant shortcomings.

Some are looking at too few people to reach conclusions that are statistically significant, while others were conducted by the very companies they're studying or by researchers with clear agendas, which represent conflicts of interest that can cast doubts on results. Some other studies suggest use of devices may be contributing to an existing problem but don't establish that they're causing a problem by themselves.

Andrew Przybylski, a senior research fellow at the Oxford Internet Institute, has attempted to replicate some of the studies that suggest a strong tie between social-media use and depression. However, when he used larger sets of people in well-controlled environments, he failed to duplicate their results. Instead, he found either no link or one that was so small, he found it laughable.

"It is literally the lowest quality of evidence that you could give that people wouldn't laugh you out of the room," Przybylski told Business Insider in March.

Last year, Przybylski co-authored a study published in the journal Psychological Science in which he examined the effect of screen-time on a sample of more than 120,000 British teens who used their devices for social media, streaming, and playing games. The data suggested a shocking conclusion: screen-time isn't harmful for the vast majority of teens. In fact, it's sometimes helpful — especially when teens are using it for two to four hours per day.

"Overall, the evidence indicated that moderate use of digital technology is not intrinsically harmful and may be advantageous," Przybylski wrote in the paper.

For Dashboard to actually be beneficial, Google or someone else would first need to demonstrate that there's some type of relationship between our overall wellbeing and how we're using our devices and apps.

Simply showing which apps we're using and for how long likely isn't going to do us a lot of good on its own.

Placing your phone face-down will quiet notifications

Flickr/danielavladimirova Another big Digital Wellbeing feature offers an easy way to block notifications.

When you place your phone face-down on a surface, it will automatically go into its "do not disturb" mode. The idea behind the new feature is that fewer alerts will mean less anxiety and more tranquility.

There is a growing amount of research that hints that getting constantly flooded with a barrage of beeps and flashes reduces our productivity and increases anxiety. No surprise there.

But there aren't any studies that indicate snoozing our devices' notifications will help us feel better. When researchers have attempted to solve the anxiety problem by muting notifications, it didn't seem to work. In fact, some people actually felt worse.

In a study presented last month at the annual conference of the American Psychological Association, researchers including Duke University behavioral economist Dan Ariely found that people who had the notifications from their devices sent in clusters of several at a time said they felt less stressed and happier than people who received them in the usual way, where they arrive sporadically throughout the day. But the people who got their alerts in clusters also felt less stressed and happier than people who didn't get any notifications at all.

"Participants who did not receive notifications experienced higher levels of anxiety and fears of missing out," the researchers wrote. "These findings highlight mental costs inherent in today's notification systems (or of abandoning them)."

Wind Down puts your phone in grayscale

YouTube/Google

Google designed its other big Digital Wellbeing feature to be used at bedtime.

Wind Down drains the color from your Android device's screen, so that it displays everything as a shade of gray. The rational behind the feature is similar to that behind Apple's Night Shift feature, which changes an iPhone's color scheme from one tinged with bright blue light to one imbued with orange light.

Night Shift is actually based on some scientific research. Blue light, which is also given off by the sun, is nearly the brightest light in the visible spectrum. In humans, blue light depresses the production of melatonin, a key hormone our brains use to tell our bodies to start preparing for sleep. That's something you don't want to be doing at night, especially as you're heading to bed.

Unlike Night Shift, though, Wind Down doesn't have much research behind it. No one has really scientifically studied how removing color from a display affects users' attention, productivity, sleep, or mood. All we have are anecdotal reports from a couple of users who've willingly experimented on themselves with the feature and claimed it helped them.

So feel free to try to find joy in missing out, but don't rely on a host of new Google apps to do it.

Original author: Erin Brodwin

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Aug
11

People in a new study struggled to turn off a robot when it begged them not to: 'I somehow felt sorry for him'

During this week’s roundtable, we had as our guest Steve Beck, Managing Partner at Serra Ventures. Steve discussed his firm’s non-Unicorn investment thesis. Refreshing to hear. Isha Pay As for...

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Original author: Sramana Mitra

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Apr
08

A $675 million deal to buy New York City’s legendary Plaza Hotel using cryptocurrency is falling apart

Dropbox is on a quest to grow its paying users — but don't expect the company to start building out its sales team.

In call with investors on Thursday, the $12 billion company doubled down on the "freemium" model that made it a viral sensation, and made clear that it doesn't intend on shaking things up any time soon.

"Success for us is not just about hiring a huge salesforce," Dropbox CEO Drew Houston told investors.

This is because around 90% of Dropbox's revenue comes from what it calls "self-serve users" — customers who decide to pay for Dropbox without the help of an outbound sales team.

Many of those users start out as free subscribers to Dropbox's introductory service, according to the company. So why bother hiring sales people to do what Dropbox already gets done for free?

"Our sales and marketing efficiency is considerably higher than many of our peers in SaaS," Chief Operating Officer Dennis Woodside said on the call.

Dropbox had 1,858 employees at the end of last year, but the company does not disclose the size of its sales team.

Paid user growth was a huge metric of concern for analysts going into Dropbox's first ever earnings. The 11-year-old company still isn't profitable, but investors are banking on the promise that it can reverse that trend by building out its paid products and services.

Dropbox now has a total of 11.5 million paying users, compared to 9.3 million for the same period last year, the company revealed in its Q1 2018 earnings report. So whatever Dropbox is doing is working — at least for the time being.

"Organizations will self serve up to 100 seats before we have a sales person call into the account," Woodside said, adding that any outbound sales efforts it makes are based on leads from the self-serve business.

This means that the customers they do reach out to are already interested in paying for Dropbox's services, and are more willing to scale.

"We have accounts that have gone from 20 seats to 30,000 seats over a couple of months," Woodside said.

"They start that enterprise sales cycle marathon on mile 20," Houston added.

Original author: Becky Peterson

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May
10

Nvidia's bitcoin boom is over, but this investor says the bigger opportunity is just starting (NVDA)

Nvidia CEO Jensen Huang shows off the company's Drive Pegasus robotaxi AI computer. Rick Wilking/Reuters

Graphics chipmaker Nvidia pulled the curtain back on its bitcoin mining-related business for the first time on Thursday. But the real game-changing opportunity for Nvidia is not inside the crowded cryptocurrency mines — it's in the wide open field of artificial intelligence.

So says Benjamin Lau, the chief investment officer of Apriem Advisors, a firm with $650 million under management that's betting big on Nvidia.

Nvidia's business designing chips for AI uses, which could upend industries from healthcare to transportation, and chips for computer data centers are the future, said Lau.

"They have a great platform and not a lot of really meaningful competition in that space," said Lau, whose firm is long Nvidia's stock.

Nvidia is already seeing significant success in those areas. In the first quarter, its data center business brought in $701 million in revenue, which was up 71% from the year-ago period. Sales of its latest Tesla chips — which the company designed for AI processing — helped boost the data center business, the company said.

Data center sales were reportedly below analysts' estimates, which may have explained the sell-off in Nvidia's stock in after-hours trading following its report. In recent trading, Nvidia's shares were down $8.53, or 3%, to $251.60.

Still, Lau was impressed with the business' performance in the period and sees it continuing to drive Nvidia's overall results."The AI stuff and the data center stuff is going to be the short-term boost" for Nvidia, Lau said.

The investor is also optimistic about the company's automotive efforts, although those have been mired in controversy of late. Nvidia has been developing chips and other technology for use in self-driving cars.

After an Uber autonomous car killed a pedestrian in Arizona, Nvidia announced that it would suspend its own autonomous vehicle tests. Uber's self-driving cars use Nvidia graphics processors, but not its autonomous vehicle system.

Nvidia's automotive business totaled $145 million in sales in the first quarter, up just 4% from the year-ago period.Benjamin Lau, chief investment officer of Apriem Advisors Apriem Adviors But it's still early days in the development of self-driving cars, Lau said.

"The auto stuff is going to be the future for them," he said. But he acknowledged that "there will be speed bumps with autonomous driving."

One area Lau isn't counting much on is cryptocurrency mining. For the first time ever, Nvidia disclosed in its earnings report its cryptocurrency-related sales, saying they hit $289 million in its first quarter.

Nvidia and rival AMD have been boosted in recent years by the growing popularity of cryptocurrencies. So-called miners have bought up their graphics processors to help solve the complex mathematical problems involved in creating new cybercoins.

But that business appears to be waning as prices of bitcoin and other cybercurrencies have slumped, the cost involved in mining them have risen, and as miners rely increasingly on application-specific integrated circuits, or ASICS, which are chips designed for particular purposes. Nvidia itself predicted sales would slump in its second quarter, something that jibes with Lau's expectations.

"It's not going to be a driver going forward," he said. "It was a nice boost while they had it."

Nvidia's stock has soared over the last two years amid burgeoning sales and earnings. But the company's sales are still relatively small compared with other big chipmakers, such as Qualcomm and Broadcom, Lau noted.

"They have a lot of room to grow in this area," he said.

Original author: Troy Wolverton

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May
10

SpaceX is about to launch the final version of its Falcon 9 rocket for the first time — here's what makes Block 5 so impressive

SpaceX — the rocket company founded by Elon Musk — is about to launch Bangabandhu-1, which is slated to be Bangladesh's first geostationary communications satellite.

But spaceflight aficionados will mostly be gawking at a brand-new rocket carrying the payload: SpaceX's most powerful, most reusable, and possibly most affordable version of its Falcon 9 rocket to date, called Block 5 "full thrust."

The launch was scheduled for Thursday evening, but flight computers automatically triggered an abort sequence with less than a minute left on the countdown clock, preventing a launch. SpaceX said during a live webcast that it was looking for the source of the problem and will likely try again to launch the new Falcon 9 on Friday.

Falcon 9 is the rocket SpaceX launches most often; in fact, more than 50 of the workhorse rockets have lifted off in eight years. They've ferried thousands of pounds of cargo to and from the International Space Station, put dozens of commercial satellites into orbit, launched classified military payloads, and raked in billions of dollars.

Yet SpaceX engineers have constantly tinkered with the rocket over the past decade, adding new features, increasing efficiency, and boosting power. But Musk has said Falcon 9 Block 5 will be the "final version" before SpaceX moves on to bigger, badder Mars rockets.

The company hasn't publicly released any official specifications for the new rocket, and SpaceX representatives did not respond to Business Insider's request for them. Yet over the past year or so, Musk and Gwynne Shotwell, SpaceX's president and chief operating officer, have described many of the changes.

Below is a summary of what to expect from the latest and last iteration of Falcon 9, based on our previous reporting, a list of changes compiled by Reddit's r/SpaceX community (which we first heard about from Eric Berger at Ars Technica), and other sources.

This story has been updated.

Original author: Dave Mosher

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May
10

Laurene Powell Jobs just bought a stunning $16.5 million dollar San Francisco home with some of the best views of the city — take a look inside

Redfin

Laurene Powell Jobs has a new addition to her collection of San Francisco Bay Area homes.

According to The Mercury News, Powell Jobs, who was married to the late Apple CEO Steve Jobs, purchased a stunning house in San Francisco's Russian Hill neighborhood for $16.5 million.

The 6,000-square foot charmer boasts a contemporary design, lush outdoor space and breathtaking views of the city.

Take a look inside the 54-year-old's newly-acquired abode.

Original author: Katie Canales

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Nov
22

Snips lets you build your own voice assistant to embed into your devices

SpaceX, the rocket company founded by Elon Musk, tried to launch the first-ever high-orbit communications satellite for Bangladesh on Thursday evening.

But with less than a minute remaining on the countdown clock, flight computers automatically aborted the launch sequence.

The mission is slated to use the company's latest version of its workhorse rocket, called the Falcon 9 Block 5, for the first time.

"We're still looking for the cause of the abort," Michael Hammersley, a SpaceX materials engineer, said during a live webcast of the launch attempt.

Sensors on the launchpad and throughout the rocket can throw an abort to prevent any problems, Hammersley said, adding that "these aborts are part of the standard process to make sure everything is working correctly" and that "it's better to have them on the ground than during a flight."

Flight controllers said both the new rocket and satellite, called Bangabandhu-1, were safe. However, they couldn't resolve the problem before the roughly two-hour window for launch ran out of time — so they scrubbed Thursday's attempt.

"We'll be aiming to launch tomorrow during our backup window," Hammersley said.

The soonest that SpaceX can try to launch the mission is at 4:14 p.m. ET on Friday.

Before the launch, Musk told reporters that Falcon 9 Block 5 is designed to be "the most reliable rocket ever built." He added: "I hope fate does not punish me for these words, but that is unequivocally the intent, and I think our most conservative customers would agree that is an accurate statement. Please, fate, do not punish me for this — the intentions are good."

Why the Bangabandhu-1 mission is so important for SpaceX

Bangabandhu Satellite-1, the first high-orbit communications satellite for Bangladesh.Thales Alenia Space

Thales Alenia Space, the company that designed and built Bangabandhu-1, said in a statement that the spacecraft is a "historical first satellite" for Bangladesh.

If successfully deployed, Bangabandhu-1 will bring state-of-the-art phone, radio, TV, and internet service to the nation of more than 160 million people, as well as surrounding countries like Nepal, Myanmar, and Bhutan.

But the 23-story rocket carrying the satellite is the real star of the mission: the Falcon 9 Block 5 is the most powerful, most reusable, and most likely last version of SpaceX's workhorse orbital launcher.

"The Bangabandhu Satellite-1 mission will be the first to utilize Falcon 9 Block 5, the final substantial upgrade to SpaceX's Falcon 9 launch vehicle," SpaceX said in a press release.

SpaceX's first Falcon 9 Block 5 rocket rolling out to a launchpad in Cape Canaveral, Florida.Elon Musk/SpaceX via Instagram

SpaceX has launched more than 50 missions on a Falcon 9 rocket since its debut in June 2010.

Engineers have steadily improved the rocket over time, making it taller, shaving unnecessary weight, and giving the engines more power. SpaceX has also added features to enable the rocket's 16-story booster — the largest and most expensive part, as it makes up about 60% of marginal costs— to launch, land, and be reused.

That's a stark distinction from all other orbital rockets in use today, which are used once and then discarded in the ocean.

SpaceX has twice reused a Falcon 9 booster. With Falcon 9 Block 5, however, Musk hopes to expand that to 10 times with only light inspections, and perhaps 100 or more reuses if worn parts get refurbished.

"I think the F9 boosters could be used almost indefinitely, so long as there is scheduled maintenance and careful inspections," Musk said on Reddit in October 2016. "Falcon 9 Block 5 — the final version in the series — is the one that has the most performance and is designed for easy reuse."

The reason Musk calls Falcon 9 Block 5 the "final version" is that SpaceX's 6,000 employees are shifting nearly all of their engineering efforts to focus on the company's Big Falcon Rocket.

The two-stage BFR system is expected to be taller than the Statue of Liberty, deliver a 16-story spaceship into orbit, be fully reusable, and ferry 100 people and 150 tons of cargo to Mars. It will ultimately replace all other SpaceX rockets, as it will be relatively inexpensive to launch and reuse — at least in theory.

SpaceX recently got a permit to begin constructing the first BFR spaceships in the Port of Los Angeles, about a dozen miles south of the company's headquarters. Musk hopes to begin test-launching the first BFR spaceships at SpaceX's Texas facilities early next year.

How to watch the first Falcon 9 Block 5 launch live

The earliest Bangabandhu-1 may launch from Cape Canaveral, Florida, is at 4:14 p.m. on Friday — a delay of 24 hours from its original target.

Current weather reports suggest the mission has an 60% chance of lifting off on Friday, and SpaceX has until 6:24 p.m. ET to launch. If there's another delay, the company may try again on Saturday.

You can watch SpaceX's live broadcast of today's attempted launch on YouTube. A new livestream should begin about 20 minutes before launch tomorrow, and will be embedded below once it's available.

Once the new Falcon 9 Block 5 rocket does launch, its booster is expected to careen back to Earth a few minutes after the launch and land on a droneship named "Of Course I Still Love You" in the Atlantic Ocean.

About 33 minutes into the launch, the upper stage of the rocket should deploy the Bangabandhu-1 satellite into orbit roughly 22,230 miles above Earth.

This story has been updated to include new details about the Falcon 9 launch. It was originally published at 11:59 a.m. EDT on May 10, 2018.

Original author: Dave Mosher

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May
10

'He was like a hyena going after her:' Theranos investor Tim Draper blames the company's downfall on an investigative journalist

Wearing a loud, bitcoin-decorated tie, influential cryptocurrency billionaire and Silicon Valley venture capitalist Tim Draper appeared on CNBC's Closing Bell on Thursday.

But Draper's colorful cravat was almost instantly upstaged by his truculent comments about another one of his investments.

What began as a standard interview quickly turned into an argument between Closing Bell's Kelly Evans and Draper. Draper defended both his investment in the controversial healthcare company Theranos and the intentions of its founder and CEO Elizabeth Holmes. Draper said that he stood by a statement he made early last year in which he claimed that Holmes, a longtime friend, was the victim of a media-instigated witchhunt.

"I feel that we've taken down another great icon," said Draper. "This woman [Holmes] came to me when she was 19 years old and said, 'I'm going to transform healthcare as we know it,' and she got bullied into submission."

When Evans interjected that Theranos's investors have lost a staggering $900 million on their initial investments, Draper asked, "Are you talking at the same time I'm talking?"

Draper went on to say that Holmes had created a company that was "an amazing opportunity." Now, said Draper, the company is deemed worthless because she was browbeat by not only leading drug companies, but the media as well.

There's one member of the media in particular who has sparked Draper's ire: John Carreyrou, a veteran Wall Street Journal reporter who investigated Theranos's technology early on and subsequently published a book on the subject, is largely responsible for what Draper deems the company's unjust demise.

While Draper didn't mention Carreyrou by name, there's little doubt that he was referring to any other journalist; Carreyrou is so widely recognized as Theranos's foe, that the company's employees created a video game to shoot him virtually.

"Wait, why is [Theranos] worthless?" Draper asked, rhetorically. "It's worthless because this writer was like a badger going after her, like a hyena going after her."

Draper went on to say that Holmes' attempt to transform the healthcare industry was met with discrimination.

Whatever the merits of Draper's claims, there's no denying the impact of Carreyrou's investigation on Theranos: The company is in reported shambles with a recent report revealing that it laid off close to 100 of its remaining employees.

Watch the full interview on CNBC here.

Original author: Zoë Bernard

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Nov
22

VCs Share Views of the Indian Startup Scene in Podcasts - Sramana Mitra

The NTSB said the investigation will focus on the emergency response related to the battery fire that followed the crash. Bryan Logan/Business Insider

The National Transportation Safety Board (NTSB) announced on Wednesday that it will investigate Tuesday's Tesla Model S crash that killed two teenagers in Fort Lauderdale, Florida.

The agency said in a press release that the investigation will focus on the emergency response related to the battery fire that followed the crash, "including fire department activities and towing operations." The agency said it does not expect Tesla's semi-autonomous Autopilot technology to be a part of the investigation.

"NTSB has a long history of investigating emerging transportation technologies, such as lithium ion battery fires in commercial aviation, as well as a fire involving the lithium ion battery in a Chevrolet Volt in collaboration with the National Highway Traffic Safety Administration," NTSB chairman Robert S. Sumwalt said in a press release. "The goal of these investigations is to understand the impact of these emerging transportation technologies when they are part of a transportation accident."

The NTSB didn't give a specific timeline for the investigation, but said investigations that involve fatalities tend to take 12-24 months.

The fire reportedly prevented people from helping the victims

The crash occurred on Tuesday after the vehicle hit a concrete wall at around 6:46 p.m. and caught fire, killing the driver, Barrett Riley, and front-seat passenger, Edgar Martinez, who were both 18-years-old. The backseat passenger, 18-year-old Alexander Berry, was thrown out of the vehicle after the crash and taken to a nearby hospital. Berry's condition has not been reported.

The vehicle's speed is believed to be a factor in the accident.

A local resident told CBS affiliate WFOR that the fire made it difficult for observers to help the car's occupants.

"Two people trapped in the front seats," the person, who was not identified by name, said. "Nobody could help because the car was on fire. The fire was so intense that nobody could reach them. There were people trying to get there but it wasn't happening."

A Tesla representative told Business Insider that the company is "working to establish the facts of the incident" and will cooperate with local authorities. You can read the company's full statement below.

"Our thoughts are with the families and friends affected by this tragedy. The family who owned the car has been a close friend of Tesla for many years, and this hits us particularly hard. We are working to establish the facts of the incident and offer our full cooperation to the local authorities. We have not yet been able to retrieve the logs from the vehicle, but everything we have seen thus far indicates a very high-speed collision and that Autopilot was not engaged. Serious high-speed collisions can result in a fire, regardless of the type of car. Tesla's billions of miles of actual driving data shows that a gas car in the United States is five times more likely to experience a fire than a Tesla vehicle. This doesn't change how devastating an event like this is for our customer's family and friends, and our hearts are with them."

Tesla and the NTSB argued after an accident in March

After a fatal Model X accident in March that involved the vehicle's battery catching fire, Tesla said the batteries in its vehicles are designed to decrease the rate at which a fire can spread.

"Tesla battery packs are designed so that in the rare circumstance a fire occurs, it spreads slowly so that occupants have plenty of time to get out of the car," the company wrote on its website.

In the aftermath of the March accident, Tesla helped the agency retrieve and interpret data from the vehicle's logs, but Tesla clashed with the agency over the company's decision to disclose information about the crash on its blog.

As a result, Tesla is no longer a party to the agency's investigation, though it said it would continue to assist the agency. Each side disagreed over who ended Tesla's party status. The NTSB said it revoked it, while Tesla said it voluntarily chose to remove itself from the party agreement.

Original author: Mark Matousek

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May
10

All the TV shows that have been canceled in 2018

FOXAs the year flies by, the list of canceled TV shows is piles up.

Networks are starting to make announcements in May, including Fox which just canceled comedies "The Mick," "Brooklyn Nine Nine," and "The Last Man on Earth."

Amazon kicked off the year with a slew of cancellations, announcing the end of three quirky comedies, including the Golden Globe nominee "I Love Dick" and the comedian Tig Notaro's semi-autobiographical show, "One Mississippi." It canceled Golden Globe nominee "Mozart in the Jungle" in April, after four seasons, and recently canceled "Transparent," which will end after the upcoming fifth season.

Also in April, Netflix canceled the 90s coming-of-age comedy, "Everything Sucks," which came to the streaming service in February.

There are many more cancellations to come, especially since networks haven't announced the fate of all their fall shows.

We'll update this list as more are announced.

Here are all the shows that have been canceled this year, including those from networks and Netflix:

Original author: Carrie Wittmer

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May
10

Thought Leaders in Artificial Intelligence: Samir Addamine, CEO of FollowAnalytics (Part 2) - Sramana Mitra

Samir Addamine: We are the biggest player in Europe in this area. We don’t have the same kind of visibility yet in the US, but we’ve been accelerating. Last year was an amazing year for us in terms...

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Original author: Sramana Mitra

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Nov
22

Minted rolls out an on-demand photography service for around $100 per session

If you live in a city, you’re probably deciding between a handful of major broadband or wireless carriers — maybe something like Comcast or AT&T. But there’s a good chance that there are a bunch of local carriers that are looking to get off the ground, and Benjamin Huang wants to help make sure there are even more options/.

That’s the idea behind Necto, a startup looking to create a sort of ISP school to help people get started with their own internet service provider founded by Huang and Adam Montgomery. Typically that’s a pretty tall order, but Necto works with individuals to learn how to build a network, get the right equipment, and deploy it in order to get consumers access to a new internet service provider that’s an alternative to the larger carriers. There are already emerging providers like Sonic in San Francisco, which aims to offer quick internet for a cheaper price, but there’s a whole group of individuals waiting in the wings that are trying to build their own ISP and the associated business behind it, Huang said. Necto is launching out of Y Combinator’s winter 2018 class.

“Ultimately, we want to see so many ISPs that net neutrality isn’t an issue,” Montgomery said. “It’s cheaper than ever and easier to start an internet service provider. People didn’t know they could do this, and networking engineering is the highest cost. You have to have a lot of stuff to build out. We remove that and bundle it as an ISP starter kit service. We give guidance to the operators, these are the customers you have, this is the equipment you need buy, here’s how to construct them. It’s more like constructing Ikea furniture. The hard part we remove which is automatically configuring these routers.”

Necto started off as its own attempt at an internet service provider, but Huang and Montgomery found that trying to get wholesale fiber was a high barrier to entry. The pair started looking into wholesale wireless, and Huang said that technology is getting to the point where it’s just as fast as typical broadband and an option for resale. The challenge then is getting the equipment into the hands of individuals that want to ramp up their own ISP and showing them how to get started. Then, they’re off to the races and work to build a business around that, including customer service and other facets of it.

Necto essentially charges for the guidance of how to start an ISP, including a class that individuals go through in order to get one off the ground. Then the company continues to ship software to ensure that it’s not as difficult to keep the equipment up and running, as well as provide ongoing support for those individuals. The equipment is all off the shelf, Huang said, in order to lower the barrier to entry for these providers.

The challenge here, however, will be ensuring that not only individuals know they can get an ISP off the ground, but getting their — and consumers’ — attention in the first place. Necto hopes to take a hyper-local strategy, Montgomery said, like traveling to farmers’ markets and working with local operators to ensure they can track down the right people that are looking to build a business around ISPs. There are still going to be plenty of challenges as it continues to work with wholesale wireless providers in order to get these businesses off the ground.

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May
10

Free stock trading app Robinhood rockets to a $5.6B valuation with new funding round

Robinhood started off as a dead-simple stock trading application that had no transaction fees — but since it’s continued to grow, and especially as it starts to dive into cryptocurrency, investors are getting pretty excited about its prospects and are pouring a ton of new funding into it.

And it’s that tantalizing prospect of creating a next generation way of trading assets and cryptocurrency that is now sending Robinhood to a $5.6 billion valuation in a new financing round that the company is announcing today. Robinhood says it’s closed a $363 million Series D financing round; DST Global led this new round and Iconiq, Kleiner Perkins, Sequoia and Capital G participated. Robinhood had a $1.3 billion valuation last year when it had around 2 million users, and the company says it now has 4 million users and has passed $150 billion in transaction volume.

“It’s the only place right now where you can trade crypto, stocks, and options all in one place,” CEO Vlad Tenev said. “For us to construct an experience that feels seamless and natural for customers, that for example want to sell an equity and use the proceeds to buy crypto, seamlessly, that’s been challenging not just from a product and design standpoint, but also infrastructure standpoint. There’s complexity under the hood, and our goal is to make it as seamless as possible in the process and make that complexity go away.”

Those 4 million users — and that valuation — indicates that Robinhood has clearly exposed a lot of demand for an easier way for users to dip their toes into financial services without having to work with firms that have trading fees like Scottrade or E*Trade. And while there are a lot of services that offer robo-advisory services like Betterment and Wealthront, which make it easier to start investing small amounts of money, Robinhood offers users the opportunity to do these things at a more granular level.

And, of course, there’s the cryptocurrency aspect that is clearly spurring a lot of interest in the company. At the time, 1 million users waitlisted for access in just the five days after Robinhood Crypto was announced. Robinhood has premium services like Robinhood Gold, where the company can find additional ways to generate revenue that offset the requirements of running a system that allows users to trade stocks for free. Robinhood has raised $539 million to date, as diving into financial services can be an expensive prospect, as well as getting enough users on board to the point that it can scale to a level that the business starts to increasingly make sense.

Robinhood’s crypto trading service came out in February and by today, the company says it’s available in 10 states. The company also rolled out a web version and stock option trading, trying to become a more robust financial services company that’s still tuned to a younger generation that wants an easier way to get into investing without needing a big balance to invest. Most of Robinhood’s users, too, aren’t so-called “day traders” and are instead holding stocks for a while after they buy them.

“If you look at the data and the statistics, people that are active day traders are actually a very small percentage of our space,” Tenev said. “People that are actually transacting on that cadence are the minority of our customers. Most of our customers engage in more of these buy and hold accumulation strategies. We really see a lot of unique things because we don’t charge trading commissions. There are customers that deposit money regularly twice or once a month and then buy stocks as soon as those deposits come in. We don’t see a lot of customers that are doing rapid buying and selling.”

Still, as it tries to further expand — especially into products like crypto and new regions — it’s going to increasingly find itself trying to jump hurdles that financial services companies find when going abroad. And there’s always a chance that the trading platforms will try to become a little more competitive (and companies like Square are even getting into Bitcoin trading). That’s going to require a robust amount of funding to try to outmaneuver well-capitalized companies that might already have those relationships in place to more easily expand.

“The political climate is uncertain, it sort of affects everyone, it doesn’t affect us uniquely,” Tenev said. “We’re a crypto business now. Not a lot of people have a ton of clarity on what that’s gonna look like in the future, it’s a new space that’s evolving really rapidly. I think that we’re confident we can adapt and evolve, and we’re operating the business in a responsible way. There’s only so much you can do, but I feel like we’ve done a lot to address any concerns.”

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Oct
07

Mortal Kombat celebrates 30th Anniversary with new trailer

Tailor Brands, a startup that automates parts of the branding and marketing process for small businesses, announced this morning that it has raised $15.5 million in Series B funding.

CEO Yali Saar has said the company sits at the intersection of design and machine learning. The idea is to create technology that understands the best practices of logo design, copywriting and social media strategy.

It’s the automated design that’s most immediately eye-catching, and that’s the big feature highlighted on the Tailor Brands website. You’ll need to pay to get access to high-quality image files, but before that, you can actually try creating a logo for free, just by entering some basic information about your company and identifying the designs you prefer.

Related: What do you guys think of the new TechCrunch logo?

Tailor Brands, which launched at TechCrunch’s Startup Battlefield in 2014, said the technology has already been used to create 45 million logos. The company says it had 3.86 million customers last year, and is adding half a million new businesses to the platform each month.

The new funding was led by Pitango Venture Capital Growth Fund and British Armat Group, with participation from Disruptive Technologies and Mangrove Capital Partners. The company has now raised a total of $20.6 million and says it will use the money to expand globally, add more languages and introduce more tools to its full branding suite.

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Apr
04

Tech Insider is hiring a video-editing intern

There’s been another bomb at the box office, and it isn’t a movie.

MoviePass parent Helios & Matheson lost nearly half of its remaining value today as investors continued to flee the cash-burning movie service. That drop followed a 31 percent dive yesterday, after the company filed a statement with the SEC warning that it would have to sell equity in the coming weeks for it to remain solvent. Since Thursday’s opening bell last week, the stock has moved from $2.13 to $0.79, a drop of 63 percent. The company’s market cap is now $51.44 million (TechCrunch parent company Verizon owns shares of MoviePass through its sale of Moviefone).

MoviePass CEO Mitch Lowe said in a written statement that “Our burn rate has been slashed by 35-40% by the implementations and abuse prevention measures we have put in place over the last few weeks. We have always known, from when MoviePass took off in August, that it was going to be a high cash burn business model. We are not changing our guidance on 5 million subscribers by the end of this year – which should make us profitable/cash flow positive according to our business model. We have access in capital markets to over $300 million. So there is plenty of cash available to sustain the subscriber growth and movie-going habits of our users.”

Those are the facts as we know them, but let’s consider some of the options the company has now.

Even if you believe the market demand for Helios’ stock (I, for one, find them incredulous), there is an enormous challenge of converting that money into equity now. The envelope math looks like this: A month ago when the stock closed at $4.21, buying 20 percent of the company would have cost roughly $55 million. At the company’s current average burn rate of $21.7 million per month, that cash would have lasted approximately 2.5 months.

Now though, with the stock price so low, getting cash on the balance sheet today is a much harder proposition. That same $55 million that bought an investor a fifth of the company last month would be a complete buyout today. Buying 20 percent only costs a bit more than $10 million now, or roughly two weeks of burn.

So what’s the trick here that will save the company?

The obvious option is to radically control burn. The company could offer pricier tiers for heavy users of MoviePass, and could put a ceiling on the number of films a customer can watch per month as it did temporarily a few weeks ago. Lowe seems deeply committed to overall subscriber growth though, and that makes any sort of constraints on the product unlikely. The reason is that subscribers are the leverage Lowe needs to negotiate better partnership arrangements with theater chains, so he has to keep trying to grow users rapidly.

One theory is that the company could be negotiating equity deals with theater chains like AMC, which could be enticed by the low price of the stock to “buy in” to MoviePass’ popularity. Such media equity partnerships are not unusual — Sony, for instance, was a major shareholder in Spotify, as was Warner Music group, although both have since sold off large percentages of their holdings. Given the reliance of MoviePass on theater chains, building an equity partnership could prove to be the service’s savior.

A well-publicized partnership — including discounted movie tickets for MoviePass — could boost the stock significantly since the cost savings would improve the company’s burn rate. That could be an enticing proposition for the chains, since they could realize an almost immediate gain on their investment, plus the ongoing proceeds of a partnership going forward.

The other tactic would be to sign up more MoviePass subscribers who watch limited films. This is what might be called the “gym membership model” of trying to identify customers who want to buy a membership as an aspirational purchase, but who won’t actually use the facilities often. The challenge, beyond the incredibly short time period to try to build that marketing funnel, is that MoviePass appears to lose money on the very first ticket a customer purchases. The question isn’t how much revenue each customer generates, but how much the losses can be minimized.

The situation is a high-wire act, and the company will either hit the ground in the next few weeks, or it will right the ship, limit expenses and get enough equity investors to give it some cash to burn and keep on growing. I’d say use your MoviePass while you have it, but then again, that’s exactly why the company is faltering to begin with.

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May
09

Monzo, the U.K. challenger bank, now lets you pay ‘Nearby Friends’

Monzo, one of a plethora of U.K. fintech startups aiming to re-invent current account banking, has launched a new feature that makes it even more frictionless to transfer money to friends. Dubbed ‘Nearby Friends’, the new geolocation functionality uses Bluetooth to let you see anyone else that uses Monzo who is nearby so that you can initiate a payment without needing their phone number to be in your contact book first.

One of the ways Monzo has increased its virality from the get-go is by making friend-to-friend payments easy, either to people who already bank with the startup, or via the Monzo.me service, which gives users a payment link to share with friends. The idea, as Monzo co-founder often explains, is that unlike traditional incumbent banks that basically have zero network effects (perhaps beyond joint accounts), the challenger bank is designed to become more useful the more people who join it.

Revolut has a similar feature called ‘Near Me’

“Thanks to the magic of Bluetooth, you can see anyone else that uses Monzo nearby. To protect people’s privacy, you’ll only find people who also have the feature open at the same time. With just a couple of taps, you can send people money, without the need to swap numbers or do any other admin,” writes Andy Smart, iOS Platform Lead at Monzo, on the company’s blog.

Under the hood, Monzo’s ‘Nearby Friends’ uses Google Nearby, Google’s peer-to-peer networking API that allows apps to “easily discover, connect to, and exchange data with nearby devices in real-time, regardless of network connectivity”. Specifically, here is how Monzo says its implementation works:

When you open Nearby Friends, we send an anonymous token (a random string of text) to GoogleThat token is broadcast via Bluetooth to devices nearbyAt the same time, your Monzo app starts searching for other devices near youWhen your Monzo app discovers a device nearby, it receives the device’s token. Using the Monzo API, it exchanges that token for your friend’s name and profile pictureWe also receive an identifier which we can use to work out who to make the payment to

The token does not identify you personally outside of Monzo’s systems, which means we don’t share any of your personal information with third parties during the process. The token we send to Google expires after a short period of time, meaning your personal data is unidentifiable.

Meanwhile, competitor Revolut recently — and relatively quietly by its standards — rolled out a very similar feature, as it is wont to do. Called ‘Near Me’, I understand it will be formally unannounced in a company blog post as soon as tomorrow and is another clear sign of how fast the $1.7B valued banking startup is moving.

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May
09

Google to acquire cloud migration startup Velostrata

Google announced today it was going to acquire Israeli cloud migration startup, Velostrata. The companies did not share the purchase price.

Velostrata helps companies migrate from on-premises datacenters to the cloud, a common requirement today as companies try to shift more workloads to the cloud. It’s not always a simple matter though to transfer those legacy applications, and that’s where Velostrata could help Google Cloud customers.

As I wrote in 2014 about their debut, the startup figured out a way to decouple storage and compute and that had wide usage and appeal. “The company has a sophisticated hybrid cloud solution that decouples storage from compute resources, leaving the storage in place on-premises while running a virtual machine in the cloud,” I wrote at the time.

But more than that, in a hybrid world where customer applications and data can live in the public cloud or on prem (or a combination), Velostrata gives them control to move and adapt the workloads as needed and prepare it for delivery on cloud virtual machines.

“This means [customers] can easily and quickly migrate virtual machine-based workloads like large databases, enterprise applications, DevOps, and large batch processing to and from the cloud,” Eyal Manor VP of engineering at Google Cloud wrote in the blog post announcing the acquisition.

This of course takes Velostrata from being a general purpose cloud migration tool to one tuned specifically for Google Cloud in the future, but one that gives Google a valuable tool in its battle to gain cloud marketshare.

In the past, Google Cloud head Diane Greene has talked about the business opportunities they have seen in simply “lifting and shifting” data loads to the cloud. This acquisition gives them a key service to help customers who want to do that with the Google Cloud.

Velostrata was founded in 2014. It has raised over $31 million from investors including Intel Capital and Norwest Venture partners.

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May
09

Thought Leaders in Artificial Intelligence: Samir Addamine, CEO of FollowAnalytics (Part 1) - Sramana Mitra

Have you started thinking about explainable AI yet? Well, you should. Read on for more. Sramana Mitra: Let’s start by introducing our audience to yourself as well as FollowAnalytics. Samir Addamine:...

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Original author: Sramana Mitra

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May
09

Fantasmo is a decentralized map for robots and augmented reality

“Whether for AR or robots, anytime you have software interacting with the world, it needs a 3D model of the globe. We think that map will look a lot more like the decentralized internet than a version of Apple Maps or Google Maps.” That’s the idea behind new startup Fantasmo, according to co-founder Jameson Detweiler. Coming out of stealth today, Fantasmo wants to let any developer contribute to and draw from a sub-centimeter accuracy map for robot navigation or anchoring AR experiences.

Fantasmo plans to launch a free Camera Positioning Standard (CPS) that developers can use to collect and organize 3D mapping data. The startup will charge for commercial access and premium features in its TerraOS, an open-sourced operating system that helps property owners keep their maps up to date and supply them for use by robots, AR and other software equipped with Fantasmo’s SDK.

With $2 million in funding led by TenOneTen Ventures, Fantasmo is now accepting developers and property owners to its private beta.

Directly competing with Google’s own Visual Positioning System is an audacious move. Fantasmo is betting that private property owners won’t want big corporations snooping around to map their indoor spaces, and instead will want to retain control of this data so they can dictate how it’s used. With Fantasmo, they’ll be able to map spaces themselves and choose where robots can roam or if the next Pokémon GO can be played there.

“Only Apple, Google, and HERE Maps want this centralized. If this data sits on one of the big tech company’s servers, they could basically spy on anyone at any time,” says Detweiler. The prospect gets scarier when you imagine everyone wearing camera-equipped AR glasses in the future. “The AR cloud on a central server is Big Brother. It’s the end of privacy.”

Detweiler and his co-founder Dr. Ryan Measel first had the spark for Fantasmo as best friends at Drexel University. “We need to build Pokémon in real life! That was the genesis of the company,” says Detweiler. In the meantime he founded and sold LaunchRock, a 500 Startups company for creating “Coming Soon” sign-up pages for internet services.

After Measel finished his PhD, the pair started Fantasmo Studios to build augmented reality games like Trash Collectors From Space, which they took through the Techstars accelerator in 2015. “Trash Collectors was the first time we actually created a spatial map and used that to sync multiple people’s precise position up,” says Detweiler. But while building the infrastructure tools to power the game, they realized there was a much bigger opportunity to build the underlying maps for everyone’s games. Now the Santa Monica-based Fantasmo has 11 employees.

“It’s the internet of the real world,” says Detweiler. Fantasmo now collects geo-referenced photos, scans them for identifying features like walls and objects, and imports them into its point cloud model. Apps and robots equipped with the Fantasmo SDK can then pull in the spatial map for a specific location that’s more accurate than federally run GPS. That lets them peg AR objects to precise spots in your environment while making sure robots don’t run into things.

Fantasmo identifies objects in geo-referenced photos to build a 3D model of the world

“I think this is the most important piece of infrastructure to be built during the next decade,” Detweiler declares. That potential attracted funding from TenOneTen, Freestyle Capital, LDV, NoName Ventures, Locke Mountain Ventures and some angel investors. But it’s also attracted competitors like Escher Reality, which was acquired by Pokémon GO parent company Niantic, and Ubiquity6, which has investment from top-tier VCs like Kleiner Perkins and First Round.

Google is the biggest threat, though. With its industry-leading traditional Google Maps, experience with indoor mapping through Tango, new VPS initiative and near limitless resources. Just yesterday, Google showed off using an AR fox in Google Maps that you can follow for walking directions.

Fantasmo is hoping that Google’s size works against it. The startup sees a path to victory through interoperability and privacy. The big corporations want to control and preference their own platforms’ access to maps while owning the data about private property. Fantasmo wants to empower property owners to oversee that data and decide what happens to it. Measel concludes, “The world would be worse off if GPS was proprietary. The next evolution shouldn’t be any different.”

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May
09

1Mby1M Virtual Accelerator Investor Forum: With Greg Sands of Costanoa Ventures (Part 5) - Sramana Mitra

Sramana Mitra: I think this whole unicorn mania has been created by the sheer stupidity of the entrepreneurship media. They’re so driven by funding announcements. Every time somebody has a funding...

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Original author: Sramana Mitra

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