Aug
03

Personio, a HR startup in Munich, closes $12M Series A

Will Robbins Contributor
Will Robbins is an early-stage investor at Contrary.

Americans are rapidly becoming less religious. Weekly church attendance is falling, congregations are getting smaller or even closing and the percentage of Americans identifying as “religiously unaffiliated” has spiked.

Despite all this, now might be the perfect time for church tech companies to thrive.

A combination of COVID-19-induced adoption, underrated demographic trends and pressure to innovate is setting the stage for new successes in the previously sleepy church tech space. Venture dollars are flowing in, and Silicon Valley is slowly showing serious interest in the sector. Hot new startups are finding creative growth hacks to penetrate a difficult market. Major challenges remain for companies in this space, but their odds seem better than ever.

Less religion, more spirituality

Yes, Americans are going to church less often, but that doesn’t mean they’re not staying spiritual. In fact, the percentage of Americans identifying as “spiritual but not religious” has grown faster than any other group in this Pew survey on religiosity. This fact is reflected in other data. For example, the percentage of Americans that pray daily or weekly has stayed fairly flat even as overall religiosity declined. This opens up two distinct opportunities, as well as two challenges.

Opportunities:

What tools do the growing “spiritual but not religious” crowd need?Churches are realizing they need to innovate or die. What tools do they need to reach out to their members and gain new congregants?

Challenges:

Two demographics: young, tech-savvy and more willing to try a new product, but less involved in church tradition versus older, not as tech-savvy and harder to reach.Very byzantine market: as documented in part one of this series, the market is dominated by small companies waging a turf war with one another. In addition, because churches are so local and hard to sell to, all of the companies to date have been smaller land-grabs rather than anything with scale or accumulating advantage.

Rapidly growing startups in the space are deftly navigating this landscape and taking advantage of these trends.

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Aug
03

YC-backed Muzmatch definitely doesn’t want to be Tinder for Muslims

It’s officially now o’clock, startup fans. All good things come to an end, and today’s the last day you can score an early-bird pass to Disrupt 2020. Don’t miss your chance to save up to $300 and get busy building your business at our global Disrupt event. Buy your pass before the deal — and the savings — expires at exactly 11:59 p.m. (PT) tonight.

Disrupt 2020 takes place September 14-18. It’s packed with non-stop programming and gives you five full days to explore — expand your knowledge, your network, your opportunities and your business.

We’ve added a new event this year: The Pitch Deck Teardown. Expert VCs and entrepreneurs will assess pitch decks submitted by registered Disrupt attendees, note red flags and offer constructive advice on how to improve this essential startup tool. We’ll hold multiple sessions over the course of Disrupt, so if you’re a registered Disrupt attendee, submit your pitch deck for consideration.

That’s just one of many exciting ways attending Disrupt can help your early-stage startup survive and thrive. Exploring the hundreds of early-stage startups exhibiting in Digital Startup Alley is a great place to start. Connect with founders around the world, increase your brand recognition, discover people and technologies that can augment your business.

“The top three benefits of going to Disrupt were introducing my product to people who would not have seen it otherwise; networking with investors, mentors, advisors and potential customers and, finally, talking to other entrepreneurs and founders and learning what it took to get their companies off the ground.” — Felicia Jackson, inventor and founder of CPRWrap.

Remember, you have five days to experience Disrupt, so don’t miss the impressive lineup of speakers who span the startup universe. You’ll hear the latest thinking from top tech, investment and business icons, leaders, movers, shakers and makers. We’ve also announced the agenda here and we’re adding more to the roster every week.

Okay, let’s review. What time is it? It’s NOW o’clock — time to register for Disrupt 2020, save up to $300 and do whatever it takes to drive your business forward. Buy your pass before the early-bird deal expires at 11:59 p.m. (PT) tonight!

Is your company interested in sponsoring or exhibiting at Disrupt 2020? Time is running out to save up to $300 on Disrupt 2020 passes. Get yours now! Contact our sponsorship sales team by filling out this form.

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Aug
02

DJI Spark update introduces 180-degree selfie mode

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast (now on Twitter!), where we unpack the numbers behind the headlines.

We had the full team this week: Myself, Danny and Natasha on the mics, with Chris running skipper as always.

Sadly this week we had to kick off with a correction as I am 1) dumb, and, 2) see point one. But after we got past SPAC nuances (shout-out to David Ethridge), we had a full show of good stuff, including:

Y Combinator Demo Day is going virtual, as before, and its coming iteration will also be live. The Equity crew all agree that this is the right thing to do, and probably more fun, to boot. And now the founders can sweat a live event, too! What fun.Speaking of live events going digital, Disrupt is coming up. And it is going to be great. Read more here.A group of Stanford business school students are putting together an investment vehicle to invest money into themselves, which is a good idea and something that is highly risible. Luckily, Danny and Natasha had good things to say about the effort.Ro raised $200 million, and any jokes that were inappropriate are Danny’s fault. The company’s reported $1.5 billion valuation makes the news that its competitor Hims could go public via a SPAC all the more exciting.I covered a neat round: $20 million for Instrumental, a super neat startup that has me hyped.Facebook is still hunting up ways to get a better look into growing startups — this time via investments in venture capital funds.And, finally, there were some hearings this week, you might have heard. We’re working on something neat that you are going to love on just that topic, so stay tuned.

And that’s Equity for this week. We are back Monday morning early, so make sure you are keeping tabs on our socials. Hugs, talk soon!

Equity drops every Monday at 7:00 a.m. PT and Friday at 6:00 a.m. PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

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Aug
03

‘Paranormal Activity’ director Oren Peli launches a new social app

Earlier this week, ServiceNow reported its quarterly results that surpassed market expectations. Despite the COVID-19 crisis, it crossed a milestone of $4 billion ARR for subscriptions in the...

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Original author: MitraSramana

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Aug
03

Online learning startup Codecademy launches paid Pro courses

Sramana Mitra: Talk to me a little bit about the go-to market strategy. It’s all user-generated content. You have a great coverage of high school, college students, and post-academic learning. What...

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Original author: Sramana Mitra

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Sep
15

Google spent at least $1.1 billion on self-driving cars before it became Waymo (GOOGL)

The COVID-19 pandemic has prompted a fresh wave of online conspiracy theories around fears of a future 'cashless society'. Cashless payments more than tripled in the US between March and April – accounting for 8% to 31% of all transactions. It fell to account for 20% of transactions in June. One social media post claiming the decline in cash payments has "nothing to do with the virus" has been repeatedly shared on Facebook and Twitter, potentially reaching millions of users. Social media expert Tristan Hotham told Business Insider such conspiracies consist in a "grey area [that risks] sending users down the rabbit hole". Visit Business Insider's homepage for more stories.

The COVID-19 pandemic has prompted a fresh wave of online conspiracy theories around fears of a future "cashless society."

Cashless transactions have spiked amid the pandemic, according to research from payments firm Square, more than tripling between March and April in the US – from 8% to 31% of all payments – before leveling off at 20% in June. 

Earlier in July, Mississippi resident Wendy Singleton shared a lengthy post on Facebook, claiming to outline what "NO CASH ACTUALLY MEANS" for wider society. 

The 700-word post – which has so far been shared 344,000 times – claims there will be "no more money in birthday cards ... no more charity collections ... banks [will] have full control of every single penny you own [and] the government will decide what you can and cannot purchase". 

Prior to Singleton's own version of the post, it had previously been reposted on Twitter by a user named Louise Fallon, where it received 18,000 retweets and 56,000 likes, and before that by Colorado resident David Tweedy, again on Facebook, where it received 219,000 shares. 

It reads: "If you are a customer, pay with cash. If you are a shop owner, remove those ridiculous signs that ask people to pay by card ... Banks are making it increasingly difficult to lodge cash [and] that has nothing to do with a virus...

"Politics [and] greed is what is wrong with the world, not those who are trying to alert you to the reality in which you are blindly floating along whilst being immobilised by irrational fear."

The World Health Organization was forced to clarify its position on cash payments in March, claiming British media reports had misrepresented its position on the issue. The Daily Telegraph, a British broadsheet, previously cited the WHO in an article suggesting dirty bank notes could be spreading the coronavirus.  

But a WHO spokesperson told MarketWatch the organization's guidance had been "misrepresented" in news articles suggesting bank notes could spread COVID-19, adding: "We said you should wash your hands after handling money, especially if handling or eating food." 

The idea of a "cashless society" has been in circulation for decades, with Sweden among those regularly touted as most likely the first nation to do away with bank notes altogether. 

Even so, there remains a host of pros (speedy transactions, better economic data, reduced business risks) and cons (limited privacy, centralized control, digital fraud) which remain hotly debated. 

Tristan Hotham, founder of the Social Media Research Centre, told Business Insider conspiracies such as these "thrive" through their combination of truth and fake information. 

"We have known for a long time that society as a whole could eventually operate without physical cash," he said. "But these kinds of conspiracies gain traction by mixing that with total nonsense." 

As the pandemic swept the planet, social media platforms have taken steps to counter misinformation around COVID-19, fearing the immediate consequences of letting conspiracies circulate unchallenged. 

Hotham said: "It's interesting because, while this does make reference to the pandemic, it's sort of in that grey area, where it might not immediately put anyone in danger, in the way that anti-mask posts do.

"But it could certainly send someone down the rabbit hole." 

Original author: Martin Coulter

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Sep
15

September 21 – 368th 1Mby1M Mentoring Roundtable for Entrepreneurs - Sramana Mitra

Earlier in July, US-based dental tech startup OrthoFX raised a $13 million Series A led by new investor SignalFire.OrthoFX uses a combination of dentral brace, or clear aligner, technology and online consultation and tracking to enable dentists to treat patients remotely.We got an exclusive look at the pitch deck OrthoFX used to bring investors on board.Visit Business Insider's homepage for more stories.

US-based dental tech startup OrthoFX raised a $13 million Series A led by VC firm SignalFire in July.

This bring total funding for the startup, which says it has been called the "Tesla for teeth" by some practitioners, to $17 million.

OrthoFX offers what it bills as state-of-the-art dental aligners, the clear, plastic teeth straighteners that fit tightly over a patient's teeth. Patients are offered a suite of extras, including a connected case, teeth scans, and direct and digital support from doctors and the OrthoFX team. Its services start at $2,950, but can drop to $950 with insurance.

As part of its orthodontic treatment the startup says it offers a bluetooth-connected case that monitors how long the patient wears it, algorithm-driven smile tracking, and rescue aligners that can correct a month's worth of missed treatment. 

"We are rethinking this category and not just as a dumb plastic delivery mechanism but as a smart connected device that takes into account all the health and wellness of the patient and putting the doctors and dentists ... in power," said cofounder Ren Menon.

In 2019 the startup received approval from the US Food and Drug Administration, and recently got clearance to sell in Canada and Europe, where it hopes to launch in the next few months. 

Menon said OrthoFX has a waiting list of over 700 doctors across the US and has treated "well over 1,000" patients so far. Over the past few months, interest has picked up as lockdown has made in-person dental treatment more problematic. 

The raise will be used to scale OrthoFX's existing tech infrastructure, create a new sales team, and expand its network of doctors. It also wants to continue R&D investment into its polymer innovations and remote care platform, which Menon says is what sets it apart from its competitors. 

"We are just scratching the surface when it comes to the possibilities of this category," he says. "We are developing so much more into the clear aligner platform than just straightening teeth."

Check out the pitch deck OrthoFX used to bring investors on board below:

Original author: Amy Borrett

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Aug
11

Nvidia and AMD have very different views on cryptocurrencies (NVDA, AMD)

Good morning! This is the tech news you need to know this Friday. Sign up here to get this email in your inbox every morning.

Amazon reported a record quarterly profit and 40% sales growth backed by strong COVID-related demand. Amazon had $5.2 billion in net profit, after having warned it would spend all of the $4 billion it was expecting to make for the quarter on COVID-related initiatives.Facebook shrugged off the pandemic to beat expectations for revenue, profits, and user growth, sending stock jumping 8%. It also indicated that an ongoing advertiser boycott is not badly hurting it.Apple blew past Wall Street's expectations for its fiscal third-quarter earnings, reporting revenue of $59.7 billion. Apple reported growth across all of its product lines for Q3, from the iPhone, which has seen slowed growth in recent years, to its booming wearables and services businesses. Alphabet announced its second-quarter earnings for 2020, slightly beating Wall Street expectations. But it wasn't enough to save the company from its first-ever revenue decline, as the coronavirus crisis continues to pummel the advertising industry.Apple said it expects supply of its next iPhone to be available "a few weeks later" compared to last year's iPhone launch. The comments come as reports have suggested the next-generation iPhone may be delayed because of supply chain issues stemming from the coronavirus pandemic.Subscription newsletter platform Substack has doubled its users as COVID-19 jeopardizes the ad-based media model. The company has more than 100,000 paying users, and says it saw revenue grow 60% over the first three months of the pandemic.Google will face a full EU inquisition over its $2.1 billion purchase of fitness wearables maker Fitbit. Regulators in Europe worry that Google will use its acquisition to hoover up even more personal data on users and use it to inform targeted ads.Amazon has won FCC approval to launch 3,236 Kuiper internet satellites — a $10 billion project competes with SpaceX's emerging Starlink network. Despite heated competition, Amazon managed to trounce the opposition of its competitors and win US Federal Communications Commission approval to deploy Kuiper in space.Short-form video app Triller sued TikTok for patent infringement, alleging the platform is copying its editing feature. In the lawsuit, Triller alleges TikTok is infringing on its patent, approved in 2017, for the video-editing, soundtrack-adding software made notable by TikTok.Huawei shipped more smartphones than any other company last quarter — making it the first to dethrone Apple and Samsung in 9 years. Huawei's dominance was largely fueled by its growth in China, which has seen better recovery from the COVID-19 pandemic than other markets like the US'. 

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

Original author: Shona Ghosh

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Aug
23

Thought Leaders in Artificial Intelligence: John Price, CEO of Vast (Part 7) - Sramana Mitra

Amazon wants to launch 3,236 internet-beaming satellites in an effort called Project Kuiper, which would directly compete with SpaceX's growing fleet of Starlink spacecraft.Despite heated competition, Amazon managed to trounce the opposition of its competitors and win US Federal Communications Commission approval to deploy Kuiper in space.SpaceX's Starlink project appears to be years ahead of Amazon's Kuiper, having already launched hundreds of satellites and started a beta test program for consumers.However, Amazon has committed to invest "more than $10 billion" to realize Kuiper and blanket Earth with affordable web access.Visit Business Insider's homepage for more stories.

Amazon, founded by Jeff Bezos in 1995, just claimed a major victory by getting regulatory approval to create Kuiper, a planned fleet or constellation of 3,236 of internet-beaming satellites.

If realized, Kuiper would compete with Starlink, a similar yet potentially much larger fleet of 12,000 to 42,000 satellites — many times the number of spacecraft humanity has ever launched — being formed by SpaceX, the aerospace company founded by Elon Musk.

On Wednesday, the FCC's five commissioners unanimously voted to permit Amazon to launch its Kuiper fleet into space and communicate with Earth-based antennas, giving the project the paperwork it needs to get off the ground.

"We conclude that grant of Kuiper's application would advance the public interest by authorizing a system designed to increase the availability of high-speed broadband service to consumers, government, and businesses," the FCC wrote in its order, released on July 30.

In a subsequent announcement by Amazon on Thursday, the company pledged to invest "more than $10 billion" in its effort to provide "reliable, affordable broadband service to unserved and underserved communities around the world."

"A project of this scale requires significant effort and resources, and, due to the nature of [low-Earth orbit] constellations, it is not the kind of initiative that can start small. You have to commit," Amazon said.

That amount, incidentally, is precisely what SpaceX COO Gwynne Shotwell estimated in May 2018 as the cash it may take to complete Starlink.

In his descriptions of Starlink to reporters in May 2019, Elon Musk has said SpaceX is attempting to claim just 1-3% of a roughly trillion-dollar-a-year global telecommunications business. He also said the project could net SpaceX between $30 billion to $50 billion a year — about 10 times what it takes in for launching rockets. (This has prompted some analysts to value the company upwards of $100 billion.)

The same market access and capture is likely true of Amazon, which has prompted heated regulatory battles with SpaceX and other companies, at one point even prompting Musk to call Bezos a copycat. However, with Amazon's growing and lucrative digital entertainment divisions, bringing affordable high-speed internet to populated and remote areas alike stands to expand its customer base and bottom line.

Like SpaceX, though, Amazon had to go through the FCC first.

The federal regulator is in charge of divvying up the wireless spectrum and assigning permission to use certain frequencies for specific purposes — in the case of Kuiper, Starlink, OneWeb, and other planned providers, shuttling web data to and from space to blanket America (and other parts of the world) in high-speed, low-lag broadband. Amazon asked for the FCC's permission in 2019, engaging the company in a heated competition with similar providers.

Now, with the FCC's authorization, Amazon can launch its planned satellites, which would circle the planet at altitudes ranging from about 367 miles (590 kilometers) to 391 miles (630 kilometers), a region called low-Earth orbit (LEO) or even very low-Earth orbit (VLEO). Such distances are more than 50 times closer than traditional geostationary internet satellites, enabling them to shuttle data at fiber-optic-like spaces.

The FCC order states that Amazon plans to launch Kuiper in five phases and that its not-yet-existent internet service is supposed to come online after 578 satellites.

How big those satellites will be, what they will look like, and which rocket or rockets will launch them into orbit is not yet clear. But Bezos in 2000 founded an aerospace company called Blue Origin that is working to — as SpaceX has successfully done — develop reusable rockets. Blue Origin's forthcoming planned heavy-lift rocket is called New Glenn, and it may have the potential to deploy dozens or hundreds of satellites at once.

SpaceX, for its part, seems potentially years ahead of Amazon, having already deployed more than 500 Starlink satellites, built user terminal and ground stations, and even launched a private beta that could lead to the first public service later this year.

An illustration of Blue Origin's reusable New Glenn rocket launching toward space. Blue Origin

The FCC's order didn't grant everything Amazon wanted, but the company nevertheless emphasized its importance by announcing its massive planned investment in the scheme.

"We have heard so many stories lately about people who are unable to do their job or complete schoolwork because they don't have reliable internet at home," Dave Limp, a senior vice president at Amazon who previously developed its Kindle product and is now overseeing Kuiper. "There are still too many places where broadband access is unreliable or where it doesn't exist at all. Kuiper will change that. Our $10 billion investment will create jobs and infrastructure around the United States that will help us close this gap."

In addition to its goals of serving up internet to home consumers, schools, businesses, emergency responders, medical establishments, Amazon said it also plans to "provide backhaul solutions for wireless carriers extending LTE and 5G service to new regions" to bring internet to hard-to-reach areas by other means.

Late last year, Amazon unveiled plans to open a giant factory to develop, test, and build Kuiper satellites in Redmond, Washington.

The clock is ticking for Amazon to execute. The FCC requires 50% of its satellites to be operational by July 30, 2026, and the rest of its fleet to launch before July 30, 2029, or the company could lose its permission to operate the network.

The government's decision only obliquely addressed the threat and growing impact of low-flying fleets of satellites to astronomy, and especially to radio astronomers. In its decision, the FCC noted avoiding such disruption is "not a condition" for its authorization, but that Amazon "should be aware of these facts" and work with the National Science Foundation to mitigate the problems.

Original author: Dave Mosher

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Jul
31

Thought Leaders in Artificial Intelligence: Gurjeet Singh, Co-Founder and Chairman of Ayasdi (Part 1) - Sramana Mitra

During this week’s roundtable, we had as our guest Julianne Zimmerman, Managing Director at Reinventure Capital, a firm focused on minority founders. Scribando As for entrepreneur pitches, this week...

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Original author: Sramana Mitra

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Sep
01

Investment in one area of fintech is up more than 2500% year-on-year

In the congressional hearing Wednesday into antitrust concerns in the tech industry, the four CEOs who testified all touted their companies American roots, and Facebook's Mark Zuckerberg warned of competition from China.The appeal to patriotism and nationalistic sentiments is a familiar tactic; the tech companies have used it repeatedly in recent years as they've come under increasing scrutiny.But it also has a long history — giant companies routinely tout their all-American roots and the threat of foreign competitors when their market power gets questioned.Policymakers should ignore such appeals, because they're meant to distract from the real harms the companies are causing, and the best way to compete with foreign rivals is through innovation, which monopolies throttle.Visit Business Insider's homepage for more stories.

Patriotism, as Samuel Johnson observed some 245 years ago, is the last refuge of the scoundrel.

Making an appeal to national sentiments — or, relatedly, warning about the dire threat from foreign competitors — is also a time-worn tactic of corporate leaders who seek to evade scrutiny of their companies' behavior or shed what they see as onerous regulations.

And so, on Wednesday, with Big Tech under the harsh glare of a Congressional antitrust investigation, the CEOs were quick to dust off the old playbook. 

The success of Facebook, Google, Apple and Amazon — four companies with a combined market value of roughly $5 trillion — is the epitome of the American Dream, their CEOs told lawmakers at the House of Representatives antitrust hearing.

The success of these four tech giants is something to be cheered; the result of the American system, not any nefarious actions or problems in the market's rules, they insisted.

Apple, CEO Tim Cook said, is "a uniquely American company whose success is only possible in this country." 

Amazon's Jeff Bezos discussed the lessons in self-reliance and ingenuity that he learned being the son of a high-school aged single mother and the adopted son of an immigrant father. And on it went.

Most importantly, the CEOs implied or said directly, the US needs national champions like their companies to lead the internet age, because without them, foreign competitors — most worryingly, Chinese ones — will take over.

"China is building its own version of the internet focused on very different ideas, and they are exporting their vision to other countries," warned Mark Zuckerberg, the CEO of "proud American company" Facebook.

"We believe in values — democracy, competition, inclusion and free expression — that the American economy was built on," he said.

If it sounds familiar...

These types of arguments aren't new. Sheryl Sandberg, Facebook's chief operating officer, deflected questions about her company's power by pointing at the threat from Chinese competitors in an interview with CNBC last year.

In fact, these types of arguments long predate the scrutiny of the tech giants. They've been used for decades by all stripes of American corporations to evade concerns about their power.

China's national flag is raised during the opening ceremony of the Beijing 2008 Olympic Games at the National Stadium, August 8, 2008. The stadium is also known as the Bird's Nest. Jerry Lampe/Reuters

Financial services companies made similar arguments in the 1980s when they sought the repeal of regulations that limited their size and ability to operate across states lines, arguing that they needed to grow large to be able to compete against giant foreign banks. IBM and AT&T made such appeals when they faced antitrust scrutiny in the 1970s and 1980s, arguing that they were needed to help defend the US from the rising threat of competition from Japanese tech companies.

Indeed, such patriotic or nationalist arguments go back as far as the 1910s, during some of the first efforts in the US at breaking up monopolies, said Matt Stoller, the author of "Goliath: The 100-Year War Between Monopoly Power and Democracy."

"This is a long-standing trend," he said. He continued: "It's always, 'give us more power, we'll defend you.'"

Every US company has an all-American story

The problem with such arguments is they're banal, irrelevant, and misleading.

Pretty much any US company big or small has an all-American story to tell. At a basic level, the success of Amazon or Apple is no more or less impressive than that of the corner grocery that was founded by immigrants fleeing war or oppression. Nearly all founders and entrepreneurs have to overcome challenges and hardships, and the American system has led to outsized success for lots of companies past and present. Amazon, Apple, Alphabet, and Facebook weren't the first, and they won't be the last, regardless of whether regulators seek to limit their power.

What's more, many of the companies that are being quashed by the tech giants have American stories too. We shouldn't ignore, for example, how Amazon used underhanded tactics to undermine Quidsi, the owner of Diapers.com, or how it allegedly throttled the business of a small company that sold books through its site just because Amazon has lots of American workers and Jeff Bezos was born to a single mother. While Americans may benefit from the services Amazon offers and the jobs it fills, they're hurt when it throttles competition. Prices can go up and employees of the competitors Amazon has stymied lose their jobs.

A woman shops for bargains at a Shoe Pavilion store that is going out of business in the Financial District in San Francisco Thomson Reuters

There's little doubt that China and Chinese companies have a different vision for the internet than US companies. There are legitimate concerns about Chinese companies spreading the kind of surveillance and censorship that are endemic in China to other countries. But the best way to meet such international challenges is through encouraging innovation and competition here at home — not by giving the US tech giants a free pass to trample on their smaller domestic rivals.

Giant monopolies tend to stop innovating. They become sclerotic and have trouble adapting as markets and fashions change. But breaking up said monopolies can spur innovation and the creation of whole new markets.

Concentrated power destroys companies

History bears this out, repeatedly. The worldwide dominance of the Big Three automakers in the 1950s and 1960s left them wholly unprepared for the oil shocks of the 1970s and the onset of competition from more nimble Japanese companies. Likewise, Boeing's troubles in recent years are attributable to its ability to wipe out all US competitors in the commercial airline market, said Stoller.

"When you concentrate power, you destroy companies," he said.

On the flip side, the antitrust actions against IBM and AT&T opened up the tech industry for Microsoft, Apple, and Intel and for the internet itself. And the later antitrust case against Microsoft allowed Google, Facebook, Netflix, and other companies to emerge.

"It's pretty obvious that those companies wouldn't exist" if the Microsoft antitrust case hadn't happened," Stoller said.

So ignore the patriotic appeals and the grim warnings about Chinese competition from the desperate CEOs. We'll all be better off if we break up Big Tech.

Got a tip about Big Tech? Contact Troy Wolverton via email at This email address is being protected from spambots. You need JavaScript enabled to view it., message him on Twitter @troywolv, or send him a secure message through Signal at 415.515.5594. You can also contact Business Insider securely via SecureDrop.

Original author: Troy Wolverton

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Sep
01

'I stand with the Dreamers': Mark Zuckerberg and dozens of tech giants are urging Trump to protect immigrants covered by Obama-era policy

Amazon doubled its profit to a record $5.2 billion in the second quarter.Amazon CFO Brian Olsavsky shared a few reasons that may have contributed to the increased profits during his call with analysts on Thursday.Amazon saw huge lockdown-driven sales, but also scaled back its marketing and video production spend, while improving the profitability of its international business.Visit Business Insider's homepage for more stories.

Amazon surprised investors on Thursday when it reported record profits for the second quarter, which exceeded Wall Street expectations by almost 600%.

The $5.2 billion in net profit, which doubled from last year, was all the more impressive because Amazon had previously warned it would spend all of the $4 billion it was projected to make in quarterly profits on COVID-related responses, including wage increases for warehouse workers and the development of an in-house testing lab.

Amazon

Calling it a "highly unusual quarter," Amazon CFO Brian Olsavsky shared a few factors that may have contributed to the improved bottom line during his call with Wall Street analysts on Thursday, according to a transcript provided by Sentieo:

Lockdown driven sales: The significant increase in customer demand that started in early March remained high throughout the quarter, Olsavsky said. As a result, Amazon reported a whopping 40% sales growth to $88.9 billion for the quarter. He said Prime members led the growth, spending more and buying more frequently on Amazon. Online groceries tripled in sales, he said.Sold more profitable products: Due to the pandemic, Amazon had expected the bulk of its sales to come from essential products, like face masks, which have slim margins. But the mix of products sold started shifting in early May to include more non-essential — and profitable — products, Olsavsky said. At the same time, demand remained "super high," leading to higher-than-expected profits.Scaled-back spending: Amazon cut its marketing spend by a third during the quarter to reduce the demand it was seeing, Olsavsky said. It also slowed its investments in its Studios business, delaying productions of some shows to protect the actors and filming crew amid COVID-19. In fact, Amazon's sales and marketing spend was roughly flat from last year at $4.3 billion, while its total operating expense of $30 billion grew just 29%, much slower than the 40% sales growth rate.International growth: Amazon's international business, whose growth rate had slowed to the lower teen numbers in recent years, bounced back to 38% in the second quarter for $22.7 billion in revenue. Most important, it eked out $345 million in operating profits, recording a rare profit for the first time in years. Olsavsky said that's a "great sign," and credited the rate of Prime adoption in some of the more "established" overseas markets, like the UK, Germany, and Japan.Higher-margin businesses: Amazon's higher margin businesses, like its cloud and advertising units, continued to show growth. Although Amazon's cloud business reported its slowest growth ever, at 29%, it still had a profit of $3.3 billion on $10.8 billion of revenue. Advertising growth remained over 40%, while Amazon's third-party seller service, which includes the high margin fees it collects for providing shipping and storage services, also grew 53% (it's hovered around a 30% quarterly growth rate in the previous year).
Original author: Eugene Kim

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03

Sony announces investment and partnership with Discord to bring the chat app to PlayStation

Hi! July has been a busy month for Business Insider's advertising and media team with lots of deep reporting on a wide breadth of companies. As we hit the middle of the summer slump, today's Insider Advertising newsletter highlights our most popular stories from the past month.

These stories are part of Business Insider's subscription service that helps fund our reporting. If you'd like to subscribe to Business Insider, here is a 20% discount code for an annual subscription. There is also a one-month trial for $1. And to get this newsletter in your inbox daily, sign up here.

Here are the can't-miss stories that our readers loved in July:

Red Bull global CEO Dietrich Mateschitz. David Geieregger/SEPA.Media/Getty Images

Red Bull fires top North American executives following internal controversy over Black Lives Matter and the leak of an offensive presentation slide

Patrick Coffee broke the news about Red Bull firing North American CEO Stefan Kozak and president and chief marketing officer Amy Taylor. The fires happened after employees leaked a letter to leadership criticizing Red Bull's response to Black Lives Matter and an offensive slide from a company presentation. 

Samantha Lee/Business Insider

Insiders at Complex Networks said the company was built on Black culture but that the sales team 'whitewashed' advertising deals for brands, replacing Black people with white people in pitch decks

Ashley Rodriguez and I dug into Complex Networks after former employees said ad-sales team at times downplayed the company's Black audience in sales pitches.

Brian Gabay/Brian Simon Associates; Nikita Davis/PR Talent; Tammy Phan/Berlin Rosen; Larry Brantley/Chaloner; Samantha Lee/Business Insider

Meet 12 top public relations recruiters to know right now

Contributor Michael Kaminer identified the top PR headhunters that help link job candidates with employers. With the recent slew of layoffs created by the coronavirus, the recruiters said that there are still opportunities in areas like pharma, tech and healthcare communications.

Next10; Human Ventures; MacVenture Capital; Lightspeed Ventures; Yuqing Liu/Business Insider 19 media startups that top VCs say are poised to take off in 2020, as the pandemic reshapes the industry

With the media and advertising industries taking a hit during the pandemic, Ashley Rodriguez and Dan Whateley asked 11 venture-capital investors which companies are poised to take off this year. Their picks include esports company PlayVS and food media company Food52.

Shelby Church

As part of an ongoing series where creators break down how much money they make, Amanda Perelli talked with Shelby Church about how she monetizes 1.5 million YouTube subscribers. Her videos with about 1 million views make between $2,000 to $5,000.

Walmart CEO Doug McMillon Danny Johnston / AP Images

Walmart is pushing harder into advertising with a new tool that shows if people buy a product after seeing an ad for it

Walmart has steadily been building up its advertising business to compete for e-commerce ad dollars that primarily go towards Amazon. In Walmart's latest move, it created a measurement tool to show advertisers how many people buy a product in-store or online after viewing an ad. Walmart tested the feature with big packaged goods companies like Procter & Gamble and Nestle.

Havas CEO and chairman Yannick Bollore Eric Piermont/AFP via Getty Images

Fewer than 3% of US executives at ad giant Havas are Black. Read the deck outlining its ambitious plan to increase diversity.

Ad holding companies that have long been criticized for their diversity efforts are starting to shine light on their practices. Patrick Coffee reported that Havas Group's data shows that 2.67% of its US executives are Black and that the company has a new seven-step plan to increase diversity.

Mastercard; Rachel Murray/Getty Images for MAKERS; Unilever; Dentsu Aegis Network; Samantha Lee/Business Insider

The 19 advertising execs who wield the most power and sway over Facebook

Tanya Dua has been covering this month's Facebook boycott that hundreds of brands are participating in. She identified the marketers who are part of Facebook's invitation-only global client council that wield the most influence, including Anheuser-Busch InBev's global marketing chief Pedro Earp and Steve King, chief operating officer at Publicis Groupe.

U.S. Democratic presidential candidate and former Vice President Joe Biden poses for a picture with Pastor of the Bethel AME Church, Rev. Dr. Silvester S. Beaman and attendees during a visit to the Bethel AME Church in Wilmington, Delaware, U.S. June 1, 2020. REUTERS/Jim Bourg

GMMB insiders say the top progressive ad and PR agency has a problem with microaggressions

Sean Czarnecki dug into Omnicom Group's  advertising and PR firm GMMB. The firm is known for its progressive work, but some former and current employees said microaggressions against people of color were commonplace.

Original author: Lauren Johnson

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May
18

Techstars Accelerating Black ParentPreneurs

During the company's Q2 earnings call, Google said it was "reimagining the optimal work environment," days after it told employees they could work from home for another year. As the pandemic shows no sign of relenting, Google is faced with a new challenge: How to make the company a great place to work when it can no longer rely on its famously lavish office perks. That will be especially challenging as Google plans to grow its headcount, particularly through new graduates who will have no sense of the old culture. Visit Business Insider's homepage for more stories.

Google's second-quarter earnings on Thursday revealed a historic year-on-year revenue decline for the tech giant as the coronavirus crisis pummeled the advertising industry. But while executives were "cautiously encouraged" that the ad outlook was improving, there's another major pandemic-related challenge ahead for the search giant. 

CEO Sundar Pichai told employees this week that they would be able to work from home for another year, until summer 2021. Now — as executives hinted in the Q2 earnings call — Google must sort through the reality of what extended remote work means for the company and its culture.

Google's chief financial officer Ruth Porat said that Google expects a "modest decrease" in how much it spends on office and data centers through the rest of 2020, compared to the year before.

"This is particularly due to our decision to slow the pace at which we acquire office buildings in the near term as we focus on reimagining the optimal work environment," she added.

The "optimal work environment" for Google has historically been one of free food, live company-wide "TGIF" meetings with top executives, and more perks than you can throw a Google bike at.

But with most of its workforce operating remote for up to another year, Google is faced with rethinking the way it operates and how to make an office-less Google a great place to work – especially as employees already see Google moving moving away from its culture of old. As the many perks that were touchstones of what made Google such a sought-after employer disappear, it will need to adjust its philosophies and benefits accordingly. 

On the earnings call, Porat said that while Google still expected the pace of headcount growth to decelerate "somewhat" in 2020, the company will continue to hire "aggressively" in priority areas, such as Cloud. Plus, it plans to bring on a new class of younger workers, too. 

"We still expect that headcount additions will be seasonally higher in Q3 as we bring on new graduates," Porat added.

Bringing on a fresh spate of new employees without any sense of the old Google culture to attune themselves to presents its own bucket of challenges for Google as it tries to reimagine what a more flexible future for the company looks like.

There are issues beyond the cultural aspects, too.

In an interview with The Verge back in May, Pichai said that "productivity is down in certain parts" of Google during remote work. While companies such as Twitter were announcing their employees could work from home forever, Pichai seemed hesitant to suggest a fully-remote solution would work for Google.

"Let's say you're designing next year's products, and you're in a brainstorming phase, and things are more unstructured," he said. "How does that collaboration actually work?"

As the timeline for coming back into an office keeps moving back, Google will have to figure that out.

Get the latest Google stock price here.

Original author: Hugh Langley

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May
18

BukuKas gets $50M from investors including DoorDash’s Gokul Rajaram and TransferWise founder Taavet Hinrikus

Alphabet reported earnings on Thursday, disclosing that Google Cloud generated over $3 billion in revenue — up 43% from the same period of last year.Last quarter, Google Cloud saw a 52% year-over-year increase, showing that revenue growth in the unit is slowing down.On a call with investors, Google CFO Ruth Porat attributed the slowdown to price changes at G Suite, its productivity software suite. Google Cloud was still a bright spot on Alphabet's earnings report, which saw Google report its first quarterly revenue decline since going public.Visit Business Insider's homepage for more stories.

Google Cloud's revenue growth is showing signs of slowing down, but Google is still investing aggressively in the unit by spending big on hiring and building new data centers.

On Thursday, Alphabet announced that Google Cloud generated over $3 billion in revenue this past quarter. That's a 43% increase from the $2.1 billion it posted over the same period last year. Still, that rate of growth is down from the previous quarter, when Google Cloud saw a 52% revenue increase, year-over-year.

Ultimately, Google Cloud was one of the bright spots for Alphabet on this earnings report. While its earnings report slightly beat Wall Street expectations overall, Google saw its first quarterly revenue decline since going public, as Alphabet reported overall revenue of $31.6 billion — down from $31.7 billion over the same period last year. 

Google Cloud is still putting a big focus on hiring and building new data centers. Since Google Cloud CEO Thomas Kurian joined early last year, the company has gone on a leadership hiring spree, winning over talent from enterprise stalwarts like Oracle and SAP. 

It also saw strength in selling its infrastructure and data and analytics offerings, the company said on Thursday. Earlier this month, Google Cloud announced a new product that allows customers to run its flagship data warehouse product BigQuery on multiple clouds, even those of rivals like Amazon Web Services and Microsoft.

"GCP maintained a strong level of revenue growth it delivered in the first quarter and its revenue growth was again meaningfully above cloud overall," Google CFO Ruth Porat said on the earnings call with investors.

Porat attributed the lower Google Cloud revenue growth compared to last quarter to G Suite, its productivity software, and specifically a "lapsed" price increase that went into effect last April and that is now accounted for as part of its normal revenue. Still, she says, G Suite maintained "healthy growth," especially amid the ongoing remote work boom. 

"G Suite products and in particular Google Meet have been absolutely critical," Alphabet CEO Sundar Pichai said on the earnings call. "We quickly re-engineered it and made it available widely to help millions of businesses and other organizations connect and collaborate."

Read more: Google Cloud did some 'myth busting' about data privacy and winning large customers this week as it tries to win the war against Amazon and Microsoft, analysts say

Currently, Google Cloud still trails behind cloud rivals AWS and Microsoft. However, it has been working on building itself to become stronger in attracting enterprise customers by investing in data privacy and security, and it even announced some new customers this past quarter like Goldman Sachs, Deutsche Bank, Verizon, Fox Sports, and the French auto company Renault.

Do you work at Google Cloud? Got a tip? Contact this reporter via email at This email address is being protected from spambots. You need JavaScript enabled to view it., Signal at 646.376.6106, Telegram at @rosaliechan, or Twitter DM at @rosaliechan17. (PR pitches by email only, please.) Other types of secure messaging available upon request.

Original author: Rosalie Chan

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May
18

Building Startup Sales Teams: Tips For Founders

Documents made public Wednesday as part of a Congressional antitrust hearing give insight into the concerns of tech's most powerful CEOs leading up to game-changing acquisitions.Amazon, Facebook and Google all made big purchases of startups whose technology, the documents reveal, their teams found to be lacking.Instead, the deals got done because the companies feared losing market share or wanted a leg up in a new sector. Visit Business Insider's homepage for more stories.

If you're looking to sell your tech startups to one of the big tech giants, an intimidating reputation will take you further than good technology. 

Market position, "land grabs," and winning were all top considerations for the CEOs at Amazon, Facebook and Google ahead of major acquisitions, according to emails and instant messages made public on Wednesday as part of Congressional hearing over possible anticompetitive practices in tech.

The documents give unique insight into the thought processes of these powerful (and often rash) men on the eve of big purchases, which over time have proven to completely rewrite the technology landscape. Ultimately, the messages show, none of these companies made their most high-profile acquisitions because of the quality of the technology.

Google, which acquired YouTube for $1.65 billion in October 2006, considered the video streaming website a threat because it meant people were searching for things away from Google.com, the documents show.

Ultimately, its product was less important to Google than its position as a top video startup. In one email, Peter Chane, who founded and oversaw Google Video, said that YouTube's "systems wouldn't be valuable to us" and described its content quality as "worse than ours." But Google's Jeff Huber defended the talks and wrote that at the very least, opening M&A talks would raise the price tag for Google's competitor Yahoo if it wanted to acquire YouTube itself.

Plus, Huber said, YouTube was located a quick drive away from Google in Palo Alto. It might seem like an arbitrary advantage, but it sure worked out for YouTube. 

Perhaps the most insecure emailer was Amazon, which spent months trying to "undercut" Diapers.com before acquiring its parent company Quidsi for $545 million in November 2010. Emails show extensive deliberations, referred to as the "Plan to Win," which addressed Amazon's internal strategy to price match and "meet or beat" Diapers.com's order time cut off of 6 p.m. (The plan also required Amazon to fix a bug on its website: a widget that gave shoppers to option to browse "used" diapers.)  

In 2017, Amazon shuttered its Quidsi properties altogether. In other words, its plan was a success.

Bezos was absent from the Diapers.com emails, but played a more active role fretting over market dominance in documents surrounding Amazon's acquisition of doorbell camera startup Ring for $1 billion in March 2018. 

"To be clear, my view here is that we're buying market position — not technology. And that market position and momentum is highly valuable," Bezos wrote to Amazon Vice President Dave Limp on December 15, 2017, according to the documents.

Documents from the Hearing on “Online Platforms and Market Power: Examining the Dominance of Amazon, Apple, Facebook and Google"

Others on Bezos's team made clear that Ring didn't have much to offer that Amazon couldn't build itself.

"They don't have any interesting hardware secret sauce either in IP, manufacturing process, or people," vice president Robert Stites wrote to Limp on November 1, 2017, in an email arguing against the deal. "I'm not inclined unless our intent is to just benchmark pricing." 

Documents from the Hearing on “Online Platforms and Market Power: Examining the Dominance of Amazon, Apple, Facebook and Google"

Facebook CEO Mark Zuckerberg took a similar attitude leading up to its acquisition of Instagram for $1 billion in April 2012. Instagram, then a small but growing photo-sharing app, came into Zuckerberg's line of sight as he fretted over how long users spent on Facebook's mobile app, according to the documents. Every second spent on Instagram's app was a second not spent looking at Facebook.

"Instagram is eating our lunch. We should have owned this space but we're losing quite badly," an unnamed Facebooker wrote in a redacted IM transcript from January 2012.

"Not losing strategic position in photos is worth a lot of money," Mike Shroepfer, Facebook's technology chief, wrote to Zuckerberg on March 9, 2012, ahead of the deal.

Documents from the Hearing on “Online Platforms and Market Power: Examining the Dominance of Amazon, Apple, Facebook and Google"

Once the acquisition went through, Zuckerberg was more direct about his reason for buying Instagram: it was stiff competition. "One thing about startups though is you can often acquire them," Zuckerberg wrote on April 9, 2012

One email of particular interest during the hearing on Wednesday came from Facebook's chief financial officer, David Wehner, in a February 2014 thread about Facebook's $19 billion WhatsApp acquisition earlier that month. 

"A big concern expressed it that we're going to spend 5-10% of our market cap every couple of years to shore up our position," Wehner wrote in defense of the deal. "I hate the word 'land grab' but I think that is the best convincing argument and we should own that. ... We are being aggressive about seizing that opportunity as it is transforming the communications landscape."

Documents from the Hearing on “Online Platforms and Market Power: Examining the Dominance of Amazon, Apple, Facebook and Google"

(Apple CEO Tim Cook was also part of the hearing, though the company's M&A history was not a big concern for lawmakers.)

Consolidation is nothing new in the land of tech, and in many cases strategic acquirers get lauded for the wisdom behind deals that increase their power and eliminate risk. But not every acquisition is about dominance or eliminating obstacles. 

When the $194 billion enterprise tech giant SAP acquired Qualtrics for $8 million in 2018, SAP added a top-of-the-line market research and data analysis product to its offerings.

If SAP saw market research as its only growth opportunity, that would be one thing. But the point of the acquisition wasn't to make SAP the market leader in that sector. It was to give SAP more ground in its competition against Oracle and Microsoft to dominate in cloud software more broadly.

Then there are deals like Cisco's May acquisition of ThousandEyes, a network security startup whose technology Cisco plans to tie into its existing products. Cisco bought the company because it made more sense than developing its own tool that could do the same thing.

This is all to say: it's possible for a large tech company to acquire a startup for reasons other than fear of the underdog. But if these messages from executives at Facebook, Amazon, and Google show anything, it's that making tech's mega giants feel insecure is a great way to go from startup founder to multi-millionaire. 

Original author: Becky Peterson

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May
05

Password Insanity

Facebook CEO Mark Zuckerberg was among the powerful tech executives who testified Wednesday in front of lawmakers regarding their companies' potential antitrust violations.During the hearing, never-before-seen messages were made public detailing why the cofounders of Instagram, Kevin Systrom and Mike Krieger, felt compelled to sell their app to Facebook in 2012. Systrom and early Instagram investor Matt Cohler discussed what to tell Zuckerberg about the photo app's future plans.In the text exchange, Systrom expresses concern about sending Zuckerberg into "destroy mode" if he turned down an acquisition offer, and being unable to "escape the wrath of Mark."Visit Business Insider's homepage for more stories.

Never-before-seen text messages from 2012 show just how careful Instagram cofounders felt they needed to be in dealing with the "wrath" of Mark Zuckerberg in the months before Facebook acquired the photo-sharing app for $1 billion.

A text exchange between Instagram cofounder Kevin Systrom and early investor Matt Cohler, then a partner at Benchmark, show the two strategizing how much to disclose to Zuckerberg about the photo-sharing app's future plans, and the cofounders' decision whether to get acquired or continue on independently. In the text conversation, Systrom voices his concerns to Cohler about possibly sending Zuckerberg into "destroy mode" or encountering "the wrath of Mark" if the Instagram cofounders were to rebuff Facebook's interest in buying the app.

The text messages were made public Wednesday as Zuckerberg — as well as the CEOs of Apple, Google, and Amazon — appeared in front of the House Judiciary's antitrust subcommittee to answer lawmakers' questions about any potential violations of antitrust regulations. The exchange between Systrom and Cohler was just one of a trove of documents the House subcommittee made public during Wednesday's hearing to demonstrate possible anticompetitive practices by the four big US tech companies.

Although Facebook's purchases of Instagram in 2012 and WhatsApp in 2014 weren't challenged at the time, lawmakers at Wednesday's hearing heavily scrutinized the acquisitions. Some representatives argued that Facebook's app acquisitions and clones of other platforms' features — like Snapchat's Stories and, most recently, TikTok — were evidence of monopolistic or anticompetitive behavior.

The committee also published several email threads and online chat logs showing conversations that took place among Zuckerberg and various Facebook executives and employees to demonstrate the company's mindset during Instagram's $1 billion acquisition.

By the start of 2012, Facebook was touting that its company comprised 95% of the social media market. However, Instagram was rapidly threatening that lead: In March 2012, Instagram's average daily users was growing at a rate of more than 1,700% week-over-week and 9.2 million percent month-over-month, according to documents published Wednesday.

In emails Zuckerberg sent in 2012, the CEO calls Instagram a "threat," and reasons that buying Instagram would be a way to successfully "neutralize" its success. Zuckerberg told colleagues that Instagram "can hurt us meaningfully without becoming a huge business," and that acquiring Instagram would be "buying" time for the company.

But Zuckerberg's plans to take on Instagram didn't come as a surprise to the app's cofounders, as is apparent by the text exchange between Systrom and Cohler. Systrom said he feared turning down an acquisition offer from Facebook would send Zuckerberg into "destroy mode" — a concern that Cohler affirmed.

"Mark doesn't react emotionally, he reacts based on competition," Systrom later writes to Cohler. "Bottom line I don't think we'll ever escape the wrath of [M]ark. It just depends how long we avoid it."

Just two months after this conversation took place, Facebook acquired Instagram for $1 billion in April 2012.

In response to questions from Rep. Jerry Nadler at Wednesday's hearing, Zuckerberg acknowledged the company viewed Instagram "as a competitor and a complement to our services" in 2012. The chair of the big tech hearing, Rep. David Cicilline, later told Axios that Zuckerberg's testimony proved Facebook displayed "classic monopoly behavior" and should be broke up.

However, Zuckerberg also reasoned that Facebook had simply "adapted features" from competitors in response to lawmakers' grilling about whether it cloned competitors' products in order to maintain its social media dominance. Zuckerberg also argued that Facebook still faces competition from platforms like YouTube and TikTok.

The Facebook CEO also disagreed with lawmakers' characterization that his conversations with Facebook executives regarding acquisition targets were viewed as a threat "in any way."

Original author: Paige Leskin

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May
05

Chipmaker TSMC may be planning to build more chip factories in Arizona

Despite an impressive second-quarter earnings report, Amazon's cloud business missed analyst expectations and reported slowing revenue growth.Amazon Chief Financial Officer Brian Olsavsky explained the deceleration in the company's earnings call by revealing that Amazon Web Services has been actively looking for ways to help customers scale down usage to save money during the pandemic.The move helps both parties, he reasoned: It helps clients stay afloat while also benefiting the "longterm health of our relationship with them."Are you an Amazon Web Services employee? Contact this reporter via encrypted messaging app Signal (+1-425-344-8242) or email (This email address is being protected from spambots. You need JavaScript enabled to view it.).Visit Business Insider's homepage for more stories.

Amazon blew away expectations in the company's second-quarter earnings report on Thursday, except for its Amazon Web Services cloud business. 

The business brought in $10.81 billion in Q2, falling slightly short of Wall Street's $11.01 billion expectations. Meanwhile, revenue growth for the segment slowed to just 29% year-over-year, down from 33% last quarter. 

But, according to Amazon, the deceleration was a result of its own helpfulness. In response to a question about slowing revenue on the company's earnings call, Amazon Chief Financial Officer Brian Olsavsky said that the cloud business has been actively looking for ways to help customers scale down usage so that they can save money during the pandemic. 

"What we see are companies working really hard right now to cut expenses, especially in the more challenged businesses like hospitality and travel, but pretty much across the board," Olsavsky said. "We're actively — with our sales force — looking at ways we can help them save money."

The company believes that in the long run this will help Amazon, because it will allow its customers to continue operating, thus remaining AWS clients into the future. 

Helping customers scale back is "not going to help our usage growth in the short run, but it'll help those customers save money," Olsavsky said. "We think that's the right thing to do not only for their success — so they can come out of this in better shape — but also for the longterm health of our relationship with them."

Olsavsky's comments seem to counter earlier reports that Amazon Web Services was unwilling to work with customers to cut their cloud costs amid the pandemic.

While some customers are looking at ways to reduce cloud spending, Olsavsky said, "it's a bifurcated world," and Amazon is seeing some customers accelerate their shifts to the cloud.

AWS revenue growth slowed to 29% year over year this quarter, down from 33% last quarter, 34% in Q4 2019, 35% in Q3 2019, 37% in Q2 2019, and 42% in Q1 2019.

Meanwhile, AWS operating profit jumped to 54%, up from 36% in the previous quarter, and 18% in the quarter before that. Olsavsky explained Amazon profit was up across the company because of cuts to marketing, travel, and medical expenses amid the coronavirus crisis.

Are you an Amazon Web Services employee? Contact this reporter via email at This email address is being protected from spambots. You need JavaScript enabled to view it., message her on Twitter @ashannstew, or send her a secure message through Signal at 425-344-8242.

Original author: Ashley Stewart

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04

Gameday lets you play daily fantasy sports inside Facebook Messenger

Rae Witte Contributor
Rae Witte is a New York-based freelance journalist covering music, style, sneakers, art and dating, and how they intersect with tech. You can find her writing on i-D, The Wall Street Journal, Esquire and Forbes, among others.

“What happens after a company gets called out?” he asked over the phone. “Do you know what happens to the people in-house that come forward?”

I didn’t.

A Black male engineer at a fashion tech company who wished to remain anonymous was telling me how he’d been passed over for promotions white counterparts later received after they’d pursued risky and unsuccessful projects. At one point, he said management tasked him with doing recon on a superior who made disparaging comments about women because his subordinates were uncomfortable reporting it directly to HR.

When human resources eventually took up the matter, the engineer said his participation was used against him.

More recently, his company brought furloughed employees back and managers promoted a younger, white subordinate over him. When he asked about the move, his direct supervisor said he was too aggressive and needed to be more of a role model to be considered in the future.

In the absence of industry leadership, there’s no blueprint to remedy institutional problems like these. The lack of substantial progress toward true representation, diversity and inclusion across several industries illustrates what hasn’t worked.

Audrey Gelman, former CEO of women-focused co-working/community space The Wing, stepped down in June following a virtual employee walkout. Three months earlier, a New York Times exposé interviewed 26 former and current employees there who described systemic discrimination and mistreatment. At the time, about 40% of its executive staff consisted of women of color, the article reported.

Within days, Refinery29’s EIC Christene Barberich also resigned after allegations of racism, bullying and leadership abuses surfaced with hashtag #BlackatR29.

In December 2019, The Verge reported allegations of a toxic work environment at Away under CEO Steph Korey. After a series of updates and corrections in reporting, it seemed she would be stepping away from her role or accelerating an existing plan for a new CEO to take over. But the following month, she returned to the company as co-CEO, sharing the statement: “Frankly, we let some inaccurate reporting influence the timeline of a transition plan that we had.”

Last month, after Korey posted a series of Instagram stories that negatively characterized her media coverage, the company again announced she would step down.

Bon Appétit former editor-in-chief Adam Rapaport resigned his position the same month after news broke that the cooking brand didn’t prioritize representation in its content or hiring, failed to pay women of color equally and freelance writer Tammie Teclemariam shared a 2013 photo of Rappaport in brown face.

In a public apology, staffs of Bon Appétit and Epicurious acknowledged that they had “been complicit with a culture we don’t agree with and are committed to change.”

Removing one problematic employee doesn’t upend company culture or help someone who’s been denied an opportunity. But with so much at stake when it comes to employing Instagram-ready branding, the lane is wide open for companies to meet the moment when it comes to doing the right thing.

A 2017 report by the Ascend Foundation found few Asian, Black and Latinx people were represented in leadership pipelines, and at that point, the numbers were actually getting worse. Seemingly, in an effort for transparency and accountability to do better, 17 tech companies shared diversity statistics and their plans to improve with Business Insider in June 2020. The numbers were staggering, especially for an initiative supposedly prioritized industry-wide in 2014:

Underrepresented minorities like Black and Latinx people still only make up single-digit percentages of the workforce at many major tech companies. When you look at the leadership statistics, the numbers are even bleaker.

While tech’s shortcomings show up clearly in a longstanding lack of diversity, companies in other industries polished their brands sufficiently to skate by — until COVID-19 and the call for racial justice after George Floyd’s murder called for lasting change.

In June, Adidas employees protested outside the company’s U.S. headquarters in Portland, Oregon and shared stories about internal racism. Just a year ago, The New York Times interviewed current and former employees about “the company’s predominantly white leadership struggling with issues of race and discrimination.”

In 2000, an Adidas employee filed a federal discrimination suit alleging that his supervisor called him a “monkey” and described his output as “monkey work.” When spokesperson Kanye West said in 2018 that he believed slavery was a choice, CEO Kasper Rorsted discussed his positive financial impact on the brand and avoided commenting on West’s statement.

In response to the internal turmoil at Adidas, the brand originally pledged to invest $20 million into Black communities in the U.S. over the next four years, increasing it to $120 million and releasing an outline of what they plan to do internally, Footwear News reported.

On June 30, Karen Parkin stepped down from her role as Adidas’ global head of HR in mutual agreement with the brand. In an all-employee meeting in August 2019, she reportedly described concerns about racism as “noise” that only Americans deal with. She’d been with the brand for 23 years.

Routinely protecting employees perceived as racist, misogynistic or abusive is bad for business. According to a 2017 “tech leavers” study conducted by the Kapor Center, employee turnover and its associated costs set the tech industry back $16 billion.

POC experience-centered social and wellness club Ethel’s Club invested into its community’s well-being and has not only managed to stay open (virtually) through the COVID-19 pandemic, it has managed to grow. Meanwhile, The Wing lost 95% of its business.

So, what really happens after the companies are called out? Often, the bare minimum. While the perpetrators of the injustice may endure backlash, abusers in corporate structures are often shifted into other roles.

Tiffany Wines, a former social media and editorial staffer at media/entertainment company Complex, posted an open letter to Twitter on June 19 alleging that Black women at the outlet were mistreated, sharing a story in which she claimed to have ingested marijuana brownies left in an office that was billed as a drug-free environment. Wines said she blacked out and accused superiors of covering up the incident after she reported it.

Her decision to speak up prompted other former employees to share stories alleging misogyny, racism, sexual assault and protection of abusers. One anonymous editor said she was asked if she would be comfortable with a workplace that had a “locker room culture” during a 2010 interview. (She did not end up working there.)

Complex Media Group put out a statement four days later on its corporate Twitter account, which had approximately 100 followers — as opposed to its main account, which has 2.3 million followers.

“We believe Complex Networks is a great place to work, but it is by no means perfect,” read the statement. “It’s our passion for our brands, communities, colleagues, and the belief that a safe and inclusive workplace should be the expectation for everyone.” It went on to state that they’ve taken immediate action, but it’s unclear if anyone has been terminated. [Complex is co-owned by Verizon Media, TechCrunch’s parent company.]

Members of the fashion community have formed multiple groups to combat systemic racism, establish accountability and advance Black people in the industry.

Set to launch in July 2020, The Black In Fashion Council, founded by Teen Vogue editor-in-chief Lindsay Peoples Wagner and fashion publicist Sandrine Charles, works to advance Black individuals in fashion and beauty.

The Kelly Initiative is comprised of 250 Black fashion professionals hoping to blaze equitable inroads, and they’ve publicly addressed the Council of Fashion Designers of America in a letter accusing them of “exploitative cultures of prejudice, tokenism and employment discrimination to thrive.”

Co-founders of True To Size, Jazerai Allen-Lord and Mazin Melegy, an extension of the New York-based branding agency Crush & Lovely, started offering their Check The Fit solutions to the brands they were working with in 2019. The initiative is an audit process created to align in-house teams and ensure sufficient representation is in place for brands’ storytelling.

Check The Fit determines who the consumer is, what the internal team’s history is with that demographic and the message they’re trying to communicate to them, and how the team engage’s with that subject matter in everyday life and in the office. Melegy says, “that look inward is a step that is overlooked almost everywhere.”

“At most companies, we’ve seen a lack of coherence within the organization, because each department’s director is approaching the problem from a siloed perspective. We were able to bring 15 leaders across departments together, distill through a list of concerns, find points of leverage and agree on a common goal. It was noted that it was the first time they were able to feel unified in their mission and felt prepared to move forward,” Lord says of their work with Reebok last year.

Brooklyn-based retailer Aurora James established the 15 Percent Pledge campaign, which urges retailers to have merchandise that reflects today’s demographics: 15% of the population should represent 15% of the shelves.

During the melee that transpired largely on Twitter and Instagram only to attempt to be reconciled in boardrooms, one Condé Nast employee and ally has been suspended. On June 12, Bon Appétit video editor Matt Hunziker tweeted, “Why would we hire someone who’s not racist when we could simply [checks industry handbook] uhh hire a racist and provide them with anti-racism training…” As his colleagues shared an outpouring of support online, a Condé Nast representative said in a statement, “There have been many concerns raised about Matt that the company is obligated to investigate and he has been suspended until we reach a resolution.”

Simply reading through accusers’ first-person accounts, it often seems like these stories end up on public forums because little to nothing is done in favor of the people who step forward. The protection has consistently been of the company.

The Black engineer I spoke to escalated his concerns to his company’s CEO and said the executive was unaware of the allegations and seemed deeply concerned.

Seeing someone who seemed genuinely invested in doing the right thing “obviously, means a lot,” he said.

“But at the same time, I’m still really concerned knowing the broader environment of the company, and it’s never just one person.”

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May
05

Music mixing marketplace EngineEars raises $1M, with help from Kendrick Lamar

Apple said it expects supply of its next iPhone to be available "a few weeks later" compared to last year's iPhone launch.The comments come as reports have suggested the next-generation iPhone may be delayed because of supply chain issues stemming from the coronavirus pandemic.Apple made the comments in the context of giving investors some insight into what it expects for the next quarter since it didn't issue guidance.Apple reported growth across all product segments, including the iPhone, in its fiscal third-quarter earnings report. Visit Business Insider's homepage for more stories.

Apple said the launch of its anticipated 5G iPhone will likely be delayed a few weeks as the company's supply chain recovers from the coronavirus pandemic. 

The company did not provide revenue guidance for its fiscal fourth quarter because of uncertainty stemming from COVID-19. But during its fiscal third-quarter earnings call, the company did provide some insight into what it's expecting across its biggest product segments for the September quarter.

When discussing the iPhone, Apple said that although it started selling new iPhones in late September last year, it expects "supply to be available a few weeks later."

"This year the supply of the new product will be a few weeks later than that," Luca Maestri, Apple's senior vice president and chief financial officer, said on the company's earnings call. 

It's far from being the first indication that Apple's next iPhone could see a delayed launch. Bloomberg's Mark Gurman reported back in April that at least some versions of the new iPhone could launch a few weeks later than usual, noting that they would still likely debut in the fall time frame. Analysts from J.P. Morgan previously suggested that the next iPhone could be delayed by one or two months.

It also wouldn't be the first time that Apple launched an iPhone later than its typical September window. In 2018, for example, it began selling the iPhone XR in October, while the iPhone X launched in November 2017.

Apple's next iPhone, expected to be called the iPhone 12, is rumored to be its first 5G iPhone. Other than 5G connectivity, reports suggest it will come with a fresh design in new screen sizes. It may also come with a LiDAR sensor for enabling better augmented reality performance, much like the most recent iPad Pro.

The comments came after Apple reported a blowout earnings report that saw growth across all product segments — including the iPhone, which had suffered multiple quarters of decline. Apple attributed the iPhone's growth to the new iPhone SE it launched in April, some of the reopenings that took place in May and June, and the popularity of last year's iPhone 11. 

Original author: Lisa Eadicicco

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