May
02

'It was a little Wild West early on': SpaceX's president says the rocket company's failures have prepared it to launch its first NASA astronauts

NASA's is preparing to launch astronauts from American soil, with an American rocket and spaceship, for the first time in nearly a decade.SpaceX plans to launch the astronauts, Bob Behnken and Doug Hurley, on May 27 through a Commercial Crew Program mission called Demo-2.Gwynne Shotwell, the president and COO of SpaceX, told Business Insider the company has "grown up" enough to handle the task by learning from its failures throughout its 18-year history."I will start sleeping again when they when they're back safely on the planet," Shotwell said of the two veteran astronauts, whom she called "badass" pilots and dads.Visit Business Insider's homepage for more stories.

SpaceX, for the first time in the company's 18-year history, is poised to rocket humans into space.

But the company wouldn't have grown enough to be ready for the feat if not for its many failures, Gwynne Shotwell, president and chief operating officer, said Friday during a series of NASA press briefings.

"We've grown up," Shotwell told Business Insider. "It was a little Wild West early on, but candidly I think that those beginnings and those roots are critically important to our success."

The company joined pre-mission briefings to answer questions about Demo-2, SpaceX's upcoming mission to launch NASA astronauts Bob Behnken and Doug Hurley toward the International Space Station (ISS). The flight will be SpaceX's first with passengers, who will pilot the company's new Crew Dragon spaceship after launching atop a 23-story Falcon 9 rocket.

Demo-2 is currently planned for May 27 at 4:32 p.m. ET. On Friday, NASA officials said the backup launch day is May 30, and that the astronaut's stay at the ISS may last for more than six months.

Shotwell joined the first virtual press conference with NASA administrator Jim Bridenstine and top members of the Commercial Crew Program Friday. The roughly $8 billion public-private partnership began in 2010 to eventually replace NASA's space shuttle fleet, which was retired in July 2011. SpaceX won its first contract through the program in September 2014, though the company has officially worked with NASA since 2006.

"Hopefully, NASA has enjoyed the relationship as much as we have. We've learned from them. We've obviously been pleased by their financial support, their technical support, wisdom, and knowledge and helping us get to this day," Shotwell told Ars Technica's Eric Berger during the briefing. 

Shotwell said she joined SpaceX in 2002 as its chief salesperson, and always worked to keep a close relationship with NASA.

"I knew when I joined the team that NASA wanted to build a space transportation system that was reliable enough and low-cost enough for people to be able to go to other planets. That sounded very kind of outer-worldly to me at that time in 2002," she said. "But I certainly understood that if we were to achieve that, we would certainly do that hand-in-hand with NASA. So I've seen this company grow from roughly 10 employees to the thousands that we have now."

Yet along with that growth, Shotwell added, came a lot of failures, which the company has seen its fair share of primarily during tests but also operational missions.

'The aerospace industry shies away from failure'

A SpaceX Falcon 9 rocket with the company’s Crew Dragon attached, rolls out of the company’s hangar at NASA Kennedy Space Center’s Launch Complex 39A on January 3, 2019. SpaceX

In 2015, SpaceX's seventh space-station cargo resupply mission for NASA disintegrated late in its launch. The company also lost a commercial telecommunications satellite to a flawed pressure tank design when a Falcon 9 exploded during a launchpad test in September 2016.

Over the past two years, SpaceX also saw parachute issues and an explosive escape engine test on the ground, problems which both the company and NASA say they've resolved and closed.

"Even today, when we're talking about flying people and flying other precious cargo as well, you have to learn those hard lessons," Shotwell said. "I think sometimes the aerospace industry shies away from failure in the development phase. It looks bad, politically. It's tough, and the media certainly makes a lot out of failures."

But, she added, "the best way to learn is to push your systems to their limit, which includes your people, systems, and your processes, and learn where you're weak and make things better."

Kathy Lueders, who manages the Commercial Crew Program for NASA, said such lessons have not only been transferred from SpaceX but also learned in partnership with the company — and through disagreements with it.

"The best way to learn technically is to have a healthy tension and dynamic and be able to have to defend technical positions. And SpaceX makes us defend technical positions, as we make SpaceX technical positions," Lueders said. "What that does is creates a body of work that I think we, as an agency, have really been able to build and I can tell you are building on [for] our future programs. So I think this has been a great relationship for the both of us over the last 13 years."

'I will start sleeping again when they when they're back safely on the planet'

Gwynne Shotwell, the president and chief operating officer, says during a briefing on May 1, 2020, that her "heart will be up to here" until NASA's Demo-2 mission astronauts are back on Earth. NASA TV Personally, Shotwell said, she will not rest until Behnken and Hurley safely complete their mission.

"My heart is sitting right here, and I think it's going to stay there until we get Bob and Doug safely back from the International Space Station," She said, holding her finger up to her throat. "But between now and then, there's still work to do. I've got thousands of SpaceX employees who are focused on this mission."

Shotwell described Behnken and Hurley as "badass" test pilots and astronauts, but also dads and people. She noted that SpaceX employees put photos of the crew on electronic work orders for Crew Dragon to keep the stakes of their task front-and-center.

"I will start sleeping again when they when they're back safely on the planet," Shotwell told Marcia Dunn of the Associated Press. "I don't think I need to remind my employees how important this is. They remind themselves, and they are helpful in reminding me."

Behnken said during another press briefing that SpaceX's agility has impressed him most about Crew Dragon's development. He also indicated that the ability to work quickly gives him more confidence going into his historic flight — the first debut of a new human-rated spaceship since 1981.

"Doug and I flew on shuttle missions separated by a couple of years," Behnken told Business Insider on Friday. "We [didn't] get, probably, the same level of change that we can get in a month from the SpaceX team during the couple of years that was between our shuttle flights."

He added: "I hope I don't have to see it: That agility in response to an issue during our mission. But we've seen it during the development process, and I know they could execute it if we needed them to while we are in orbit."

Original author: Dave Mosher

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May
02

Colors: Basque Hermitage, Cliff II - Sramana Mitra

I’m publishing this series on LinkedIn called Colors to explore a topic that I care deeply about: the Renaissance Mind. I am just as passionate about entrepreneurship, technology, and business, as I...

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Original author: Sramana Mitra

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May
02

Here are 9 companies IBM could buy given that new CEO Arvind Krishna said that it will get back to its 'acquisitive strategy' in a few months, according to experts (IBM)

IBM had expected to slow down its M&A since buying Red Hat last year for $34 billion. But new CEO Arvind Krishna said on his first earnings call last month that the company plans to resume its "acquisitive strategy" in several months. He's focused on boosting IBM's position in AI and hybrid cloud, he said. Here are 9 companies experts say IBM could seek to buy, including Snowflake, Automation Anywhere, and Datarobot. Click here for more BI Prime stories.

IBM is known as one of the most acquisitive companies in the world. But the tech giant was expected to go slow on the M&A front after buying Red Hat for $34 billion last year, the biggest acquisition in IBM's history.

"We've focused all of our M&A effort on Red Hat in the last 18 months," IBM senior executive Rob Thomas told Business Insider in February when the company unveiled a new AI imitative. "$34 billion consumes a lot of time and energy."

Shortly after the interview, the coronavirus crisis pandemic led to global economic downturn. Suddenly, the tech landscape has changed. The economic slump has disrupted the sector, crushing valuations to the point that experts expect a rash of M&A activity.

In fact, when IBM reported first quarter results last week, new CEO Arvind Krishna indicated that Big Blue was prepared to begin buying again.

"You should expect that over time — over time meaning just that as it gets past the next few months — we will get back to an acquisitive strategy," he told analysts on the company's first quarter earnings call. "We've been clear that we will acquire when we find properties that are both attractive or that fit our strategy and hybrid cloud and AI are the focus of our business going forward."

With that in mind, here are 9 companies that experts say IBM could try to buy:

Original author: Benjamin Pimentel

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May
02

Rendezvous Online Recording from April 28, 2020 - Sramana Mitra

Some audience questions answered by Sramana: – What would be some of the challenges in post Covid-19 quarantine, and what businesses would most likely succeed in that altered environment?...

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Original author: Maureen Kelly

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May
02

The top 9 shows on Netflix and other streaming services this week

Every week, Parrot Analytics provides Business Insider with a list of the nine most in-demand original TV shows on streaming services in the US.This week includes newcomers to the list: Hulu's "Little Fires Everywhere" and Apple TV Plus' "Defending Jacob."Visit Business Insider's homepage for more stories.

Disney Plus' "Star Wars: The Clone Wars" dethroned "Tiger King" as the most in-demand TV series in the US this week. Meanwhile, Hulu's "Little Fires Everywhere" has gained momentum with audiences after its finale last week. 

Every week, Parrot Analytics provides Business Insider with a list of the nine most in-demand TV shows on streaming services in the US.

The data is based on "demand expressions," Parrot Analytics' globally standardized TV-demand measurement unit. Audience demand reflects the desire, engagement, and viewership weighted by importance, so a stream or a download is a higher expression of demand than a "like" or a comment on social media, for instance.

There was also a rare Apple TV Plus sighting on this week's list with the Chris Evans-starring "Defending Jacob."

Below are this week's nine most popular original shows on Netflix and other streaming services:

Original author: Travis Clark

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May
02

483rd Roundtable Recording on April 30, 2020: With Nick Adams, Differential Ventures - Sramana Mitra

In case you missed it, you can listen to the recording here: 483rd 1Mby1M Roundtable April 30, 2020: With Nick Adams, Differential Ventures

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Original author: Maureen Kelly

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May
02

As WeWork and flex-space rivals stumble, 18 million square feet of space in NYC is at risk. Here's what that means for the real-estate market.

In recent years, flexible-workspace firms grew dramatically in New York, amassing a nearly 20-million-square-foot portfolio of space that could now result in vacancies.Flexible-space firms have had layoffs, sought to restructure and terminate leases, and face an uncertain future as a result of the coronavirus pandemic.That could prompt millions of square feet to be cast off into the office market at a time when tenants are already pulling back because of an expected recession touched off by the lockdown.In the last recession, office vacancies surged and rents plummeted over 30% - a scenario some market observers worry could again unfold, this time with the help of floundering flex-space firms.   Still, some experts believe the current crisis could actually help workspace firms as tenants gravitate to short-term, flexible deals.Click here for more BI Prime stories.

To dominate the flexible-workspace industry, WeWork snapped up over 9 million square feet of space in New York City in recent years, vaulting past tech giants, big banks, and white-shoe law firms to become the city's single largest office occupier.

Once the lynchpin of the brand's effort to become a $50 billion public company, that sprawling footprint is now a growing cause of concern among real-estate executives.

WeWork and its peers in the fast-growing flexible workspace sector have slashed their workforces, entered into talks to renegotiate or exit leases, and are bracing for an uncertain future in a post-coronavirus world. The tumult in the sector could cast millions of square feet onto the market at a time when tenant appetite for new space has been diminished by the crisis and the economic damage the pandemic has inflicted on commerce.

Altogether, flexible-workspace firms occupy about 18 million square feet in the city, according to data from the real-estate brokerage and services firm Newmark Knight Frank, a block of space equivalent in size to about six Empire State Buildings.

That square footage accounts for roughly 4% of the office market's inventory of space in Manhattan, according to Newmark. While that may not like sound like much, office experts say vacancy increases of just a few percentage points can send office rents tumbling and trigger a downturn in the market.

What happens to NYC real estate in a recession 

If flexible workspace firms begin casting off space, it could become a compounding factor in a wave of availabilities that many experts anticipate will result from an expected recession touched off by the crisis — which may prompt tenants across the city to shed space or put offices they occupy up for sublease.

"If we were just talking pre-Covid, I would say that the impact of coworking vacancies on the market would be huge," said Jeffrey Peck, a vice chairman at the real-estate services firm Savills. "Post-Covid, it could be percentage points on top of what we already believe is going to be an even bigger number."

The workspace sector's ongoing problems were on display this week, with WeWork initiating another round of layoffs to cut costs. The virus crisis has raised questions about the viability of flexible-workspace firms, whose clients generally occupy spaces on short-term contracts they may seek to now cancel because of the upheaval.

Another industry player, Knotel, which has about 2.5 million square feet in the city, has stated it will slash its portfolio of space by 20% and has laid off workers.

"What we're hearing is that every major coworking firm is approaching their landlords to evaluate their remaining obligation and either reduce their rent or negotiate a termination," said Jared Horowitz, a vice chairman at Newmark. "The business model can't survive right now. These are firms that leased space at the tippy top of the market and how do you convince tenants to pay a premium on top of those rents when the market is falling now? It's a huge challenge."

Read More: Airbnb and RXR Realty are scrapping a partnership at Rockefeller Center that the home-sharing giant's CEO touted as a '21st-century hospitality model'

The availability rate in Manhattan, a calculation that includes present vacancy and spaces that are expected to become empty in the coming months, was 11.8% at the end of the first quarter, according to Newmark data. Average asking rents were a record $81.71 per square foot, the firm reported, a factor of both years of solid leasing that have absorbed space and newly built spaces in markets such as Hudson Yards that are more expensive than existing office space and whose entry to the market pushes average prices up.

During the last recession, average office asking rents in Manhattan fell from just over $70 per square foot to about $48 per square foot in the trough of the downturn in 2010, a decline of about 33%.

WeWork has been vague about what steps it is taking to rightsize its portfolio and hasn't named specific locations where it is seeking rent reductions or to potentially exit space.

"As part of our plan to seek profitable growth, we are conducting an in-depth review of operations and assets globally in order to rightsize the business and optimize our real estate portfolio," a WeWork spokeswoman, Nicole Sizemore, said in a statement. "As we work through this process, we are working with industry partners where appropriate."

Read More: Mandatory temperature-taking is largely seen as a critical way to return workers to offices. But some big NYC landlords are worried about its effectiveness.

WeWork and rivals helped tighten the market 

WeWork and its peers played a large role in pushing up the office market in recent years.

"They helped tighten the market," Savills executive Jeffrey Peck said. "If you were with a tenant looking for 100,000 square feet, you knew you had a coworking company behind you that was willing to bid up pricing for the space and compete. Not having that alone now has hurt landlords."

Flexible-workspace firms also often vacuumed up spaces that landlords had difficulty leasing.

"They would take lower floors in a building with less light and views and they were sucking up a lot of the hard-to-use spaces," Peck said. "If these spaces are handed back to landlords they are especially problematic to refill."

Some observers forecast that the aftereffects of the pandemic could actually bolster flexible workspace firms, rather than unravel them. Uncertain of how office space occupancy may have to evolve as a result of the crisis, tenants may opt to take short term, flexible deals with workspace providers rather than commit to longer term conventional leases for the time being.

"You might actually want to take some coworking space right now because of this crisis," said Mary Ann Tighe, the New York area CEO of CBRE. "I would not for one minute want to make a long-term commitment until we have had time to absorb what's going on and what the implications will be."

Have a tip? Contact Daniel Geiger at This email address is being protected from spambots. You need JavaScript enabled to view it. or via encrypted messaging app Signal at +1 (646) 352-2884, or Twitter DM at @dangeiger79.

Original author: Daniel Geiger

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Aug
02

Roundtable Recap: August 2 – Conversation with a Successful Woman Venture Capitalist - Sramana Mitra

Six current and former Tesla sales employees told Business Insider the advice they would give someone applying to work at the electric-car maker.They said to project positive personality traits and do research on the company and its CEO, Elon Musk.Tesla did not respond to a request for comment on this story.Are you a current or former Tesla employee? Do you have an opinion about what it's like to work there? Contact this reporter at This email address is being protected from spambots. You need JavaScript enabled to view it.. You can also reach out on Signal at 646-768-4712 or email this reporter's encrypted address at This email address is being protected from spambots. You need JavaScript enabled to view it..Visit Business Insider's homepage for more stories.

Applying for a job at Tesla is a competitive process. The electric-car maker said in 2018 that it had received almost 500,000 applications for around 2,500 open positions in the past year, and last year, Tesla ranked 16th on LinkedIn's list of the companies people most want to work for.

Despite the company's decision to furlough many of its salespeople in response to the disruptions caused by the spread of the novel coronavirus, Tesla is still hiring salespeople in the US.

Six current and former sales employees told Business Insider their advice on how to maximize your chances of getting a job in Tesla's sales division. Each of the current and former employees asked for anonymity due to a fear of reprisal from Tesla, but their identities are known for Business Insider.

Tesla did not respond to a request for comment.

Are you a current or former Tesla employee? Do you have an opinion about what it's like to work there? Contact this reporter at This email address is being protected from spambots. You need JavaScript enabled to view it.. You can also reach out on Signal at 646-768-4712 or email this reporter's encrypted address at This email address is being protected from spambots. You need JavaScript enabled to view it..

Original author: Mark Matousek

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Sep
07

5 factors that can make or break a startup’s growth journey

Heather MacDougall, the vice president of worldwide workplace health and safety for Amazon, gave us an inside look at Amazon's response to the coronavirus pandemic. "I've learned in my first year with Amazon that there's speed in business, there's Amazon speed, and now there's pandemic speed," she said. "We've had to think fast and move quicker."Read the full interview with MacDougall here. Visit Business Insider's homepage for more stories.

The health and safety of Amazon's massive global workforce is the key responsibility of one top executive: Heather MacDougall.

In an exclusive and wide-ranging interview with Business Insider, MacDougall described how she spends her days in the midst of the pandemic, talked about when she realized coronavirus would be more serious than previous crises, and revealed what could change permanently about how Amazon operates as a result of the pandemic.

"I've learned in my first year with Amazon that there's speed in business, there's Amazon speed, and now there's pandemic speed," she said. "We've had to think fast and move quicker."

She said Amazon is tracking confirmed and suspected cases among employees and third-party workers, in addition to tracking the rate of employees going into quarantine due to close contact exposure. 

"We have seen the quarantine rate fall dramatically," she said. "We aren't done though, we're continuing to innovate, exploring technology, such as through an app, to assist in reminding our people of the importance of social distancing — and providing reminders when they get too close."

MacDougall said she spends her days in internal meetings assessing the company's new and existing protective measures, such as temperature checks and disinfectant spraying in buildings. As she helps manage the company's response internally, she has also been reaching out to "peer companies" to discuss issues impacting the global supply chain, she said.

"Like so many people, my days are long and blur one into the other," she said. "I have two teenage daughters, one home from college, and I try to take a break for dinner with them or to get outside to go for a walk or run but each day is consumed with planning and assessing Amazon's COVID-19 response. We can't rest."

MacDougall also addressed recent employee walkouts concerning safety issues and discussed the challenges of making decisions in an environment where information is rapidly changing, such as guidance on the efficacy of face masks.

"There are times when you don't know what you don't know; so we are at the tip of the spear in this," she said. "We faced a global lack of masks or knowledge as to the value of masks to slowing transmission of the virus. Guidance from various sources — whether that's WHO, CDC or OSHA — either initially hadn't been formed or continually evolves.

"This is one of the few times that I think employers are asking the government to issue guidance!" she continued.

Before joining Amazon, MacDougall was an attorney and served as a commissioner and chairman on the Occupational Safety and Health Review Commission, an independent federal agency that reviews citations and penalties resulting from workplace inspections.

Original author: Hayley Peterson

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Sep
06

Open source can boost EU economy and digital autonomy, study finds

Google's YouTube is the world's biggest online video company, and it's making a bigger push into TV and streaming.Business Insider identified the people at the company who are leading its businesses.These 33 insiders, from policy, engineering, content, and advertising wield the most power at YouTube and are working to rival TV networks and streaming giants including Netflix and Amazon.Visit Business Insider's homepage for more stories.

Google acquired YouTube for $1.65 billion in 2006, and it's turned into the world's biggest and most powerful online video company and an advertising juggernaut.

With original programming and user-generated content that reaches more than two billion people each month, YouTube rivals streaming giants including Netflix and Amazon.

It pulled in $15 billion in advertising revenue in 2019, more than TV networks ABC, NBC, and Fox combined. Another $3 billion came from non-ad revenue in products like YouTube Music and YouTube TV, though YouTube pays a portion of that money back to networks and publishers in distribution rights. And YouTube is making a bigger push into TV and streaming as more people shift from watching linear TV.

Business Insider identified the 33 executives there with the most power, from policy, engineering, content, and advertising, these insiders are leading all of YouTube's businesses.

The platform has turned content creators, from MrBeast to Emma Chamberlain, into stars with multi-platform businesses and major brand partnerships. With the help of partner managers, top YouTube creators are establishing new business models for Hollywood.

YouTube has also drawn regulators' antitrust and privacy questions. In September, YouTube got hit with a $170 million fee for reportedly violating the Child Online Privacy Protection Act. The company has struggled to keep out extremist content and ads that break its rules against misinformation.

Business Insider identified the top people behind YouTube's growing ad business. They include Kevin Allocca, who leads the global culture and trends team focused on analyzing and tracking trending content at YouTube. It also includes leaders like Neal Mohan, who reports directly to CEO Susan Wojcicki and oversees all of the products on the viewer and creator side.

Click to read the full list below:

Original author: Amanda Perelli

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Sep
06

Eager for AI? First you have to train it

Finland's annual May Day celebration in the capital of Helsinki was cancelled because of coronavirus.Virtual reality company Zoan created a virtual version of Helsinki that anyone can access.The city hosted a virtual gathering and concert to celebrate May Day, and more than 10% of Finland's population tuned in.Visit Business Insider's homepage for more stories.

Finland turned to virtual reality to compensate for some of the lost celebrations due to the coronavirus.

May Day is a major holiday in Finland, when people gather outside for parties and concerts. While a mass gathering isn't safe right now because of COVID-19, the city of Helsinki came up with a way to move the celebration online.

The country hasn't been hit especially hard by the coronavirus, but a city-wide party could be a big setback. Traditionlly, as many as a hundred thousand people gather in only a few parks. The city of Helsinki formed a partnership with VR company Zoan, which had already been working on virtual Helsinki, host a concert.

Finland has a population of around six million, and 700,000 viewers tuned into the virtual concert, according to the city of Helsinki, meaning that nearly 12% of the country watched the event. Of those attendees, 150,000 went beyond just watching and created avatars to participate. 

Here's what the first virtual May Day was like. 

Original author: Mary Meisenzahl

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May
02

The CEO of Specialized Bicycle vowed to use his Asian manufacturing contacts to import 1 million masks. He almost couldn't make it happen.

Mike Sinyard, CEO of Specialized Bicycle, one of the world's biggest manufacturers of high-end bicycles, is paying for 1 million masks to be manufactured out of his own pocket.But, he tells Business Insider, what he thought would be an easy task turned into an almost impossible one between regulations preventing countries from exporting masks and price-gouging.So far, he's obtained 40,000 masks, and he finally found a contract manufacturer to make the rest, which will be delivered within a few months.Sinyard says its become the responsibility of business leaders to take on a social role, especially when government efforts are falling short, and people's lives are at stake.Visit Business Insider's homepage for more stories.

It was the pictures of nurses coming to work wearing trash bags for protection against COVID-19 that riled up Mike Sinyard into doing something. 

Sinyard is founder and CEO of Specialized Bicycle, one of the world's largest high-end bicycle manufacturers. Its bikes can be seen all over the roads and trails among those who are willing to spend big bucks on their sport. The flagship S-Works bike frequently graces the podiums at mountain biking world cups and pro WorldTour races.

The private company, with an estimated $500 million in sales back in 2011 — the most recently published data — was founded by Sinyard in 1976 in the sleepy little town of Morgan Hill, California, the southern outpost of Silicon Valley. It now employs about 600 people worldwide, including the impacts from a layoff of 46 people (about 7% of its workforce) last week, mostly in Europe, where COVID-19 has been raging in bike-loving places like Italy. As part of that layoff, Sinyard is forgoing his salary and his top management is taking pay cuts, reports Bicycle Retailer's Marc Sani.

About a month ago, Sinyard heard the tales of hospital staff struggling to get enough protective gear and vowed to do something.

He looked to his own network of Asian manufacturers that produce all sorts of products for his company, from complicated bike parts to clothing. 

"Initially, we were stunned at the significance of this. We have a lot of colleagues in Europe and Italy," he said. After reading the story of the nurses wearing trash bags. "All the sudden I became obsessed with this thing."

At first, he thought his team could manufacturer face shields, as they love engineering and building stuff, he said. But then he realized that spinning that up would take too long. The immediate need was (and still is) professionally manufactured face masks, both N95 and surgical masks.

So he vowed to buy 1 million face masks and have them imported to the US. He also needed to procure masks to protect his employees. Bike shops are essential businesses in the US and have remained open.

"So I thought, 'Oh this easy. No problem,'" he says.  But it wasn't. With the whole world trying to buy masks, Sinyard ran into one road block after another. "Asia, Oh my God. Trying to get those face masks."

Although Sinyard says he's paying for the masks out of his own pocket, he turned to his right-hand man, Specialized's executive vice president Bob Margevicius, who spent days working with the company's Asian and worldwide manufacturing contacts. Sinyard and Margevicius didn't ask their existing manufacturers to retool into sewing masks. Instead, they wanted their contacts to introduce them to companies that were already capable of pumping out a million masks.

"We would go to certain countries and they'd say, 'We can't. The government won't allow us to export anything," he says. A few of his contacts were longtime friends in the manufacturing world. Even they refused to sell him masks, citing legal restrictions.

When he did locate some suppliers able to make the masks, he dealt with price-gouging. Prices were 10 times higher than normal circumstances. He wasn't having any of that. He told them, "Look, this is a humanitarian effort. This is not about business."

So far, Sinyard has managed to procure 40,000 masks, he said, and he's sent a batch of them to New York. But he's still determined to get a million. "We went through probably 20 or 30 different different suppliers and we finally ended up on a couple that we work with. So we're working with a couple right now," he said. He thinks he'll have the full million in less than 90 days.

In the meantime, Specialized donated 400 electric bicycles to medical staff to help them commute to work so they don't have to worry about exposure using public transit.

Sinyard says that in these difficult times, when the federal government has essentially left the states to fend for themselves, wealthy business leaders like himself have a social responsibility to help.

"I think business has to take on the social roles going forward and I think we already see that," he said.

Although "the sadness hasn't ended yet," he's optimistic about the post-coronavirus future. His company has learned that it can work remotely and he thinks the bicycle business will boom when the economy recovers, as people look for ways to keep fit that don't involve going to the gym. "I think it's kind of like a reset. "

As to advice to any other wealthy business leaders wanting to buy and donate masks or other medical grade protective equipment, he says, "Good luck!"

Original author: Julie Bort

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May
02

Otonomo raises $46 million to expand its automotive data marketplace

New vehicles today can produce a treasure trove of data. Without the proper tools, that data will sit undisturbed, rendering it worthless.

A number of companies have sprung up to help automakers manage and use data generated from connected cars. Israeli startup Otonomo is one such player that jumped on the scene in 2015 with a cloud-based software platform that captures and anonymizes vehicle data so it can then be used to create apps to provide services such as electric vehicle management, subscription-based fueling, parking, mapping, usage-based insurance and emergency service.

The startup announced this week it has raised $46 million to take its automotive data platform further. The capital was raised in a Series C funding round that included investments from SK Holdings, Avis Budget Group and Alliance Ventures. Existing investors Bessemer Venture Partners also participated. Otonomo has raised $82 million, to date.

The funds will be used to help Otonomo scale its business, improve its products and help it remain competitive, according to the company. Otonomo is also aiming to expand into new markets, particularly South Korea and Japan.

“We now have the expanded resources needed to deliver on our vision of making car data as valuable as possible for the entire transportation ecosystem, while adhering to the strictest privacy and security standards,” Otonomo CEO and founder Ben Volkow said in a statement.

Otonomo’s pitch focuses on creating opportunities to monetize connected car data while keeping it safe from the moment it is captured. Once the data is securely collected, the platform modifies it so companies can use it to develop apps and services for fleets, smart cities and individual customers. The platform also enables GDPR, CCPA and other privacy regulation-compliant solutions using both personal and aggregate data.

Today, Otonomo’s platform takes in 2.6 billion data points a day from more than 20 million vehicles through partnerships with more than automakers, fleets and farm and construction manufacturers. Otonomo has more than 25 partnerships, a list that includes Daimler, BMW, Mitsubishi Motor Company and Avis Budget Group. The company said it’s preparing to bring on seven more customers.

That opportunity for Otonomo is growing based on forecasts, including one from SBD Automotive that predicts connected cars will account for more than 70% of cars sold in North American and European markets in 2020.

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May
01

Introducing the term-sheet grader

Jamie Goldstein Contributor
Jamie is the founding partner of Pillar VC, a Boston-based seed-stage venture capital firm. He has spent the last 22 years investing in early-stage startups.

When we launched in 2016, we took the unusual approach of saying we’d buy common stock in startups. We believed then, and still do, that alignment with founders was more important than covering our downside in investments that didn’t work as planned. Said differently, we wanted to enhance our upside through alignment, rather than maximizing our downside through terms.

The world has changed a lot since that time. While we are actively making investments, and still buying common stock, we know that many entrepreneurs may be trying to raise money now — and it is very hard.

Fred Destin wrote a great piece about the ugly terms that can creep into term sheets during difficult times. If you have a choice between a good term sheet and a bad one, of course, you’ll take the good one. But what if you have no choice? And how can you compare term sheets in the first place?

To this end, we developed the term-sheet grader, a simple way to compare different term sheets or help characterize whether a term sheet is good or evil.

Let me first point out that none of this has anything to do with the valuation of the round (share price), the amount of capital, the likelihood of reaching a closing, the quality of the firm or the trust you have with the individual leading the investment, all absolutely critical pieces of the puzzle. Here, we are just looking at the terms and conditions, the legal structure of the investment.

We’ve listed nine key terms below — five that have to do with economics and four that relate to control and decision-making:

Each key term can earn +1 for being friendly and -1 for being tough.There are a few really friendly terms that have a score of +2 each.Likewise, there are a few really tough ones that earn a -2.The best a term sheet could score is a +11, the worst is a -11.The “Industry Standard” deal scores a 0.

FWIW, the Pillar common stock standard deal earns a +8 (shown below).

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May
01

Indian education startup Byju’s is fundraising at a $10B valuation

Byju’s, an education learning startup in India that has seen a surge in its popularity in recent weeks amid the coronavirus outbreak, is in talks to raise as much as $400 million in fresh capital at a $10 billion valuation, said three people familiar with the matter.

The additional capital would be part of the Bangalore-based startup’s ongoing financing round that has already seen Tiger Global and General Atlantic invest between $300 million to $350 million into the nine-year-old startup.

That investment by the two firms, though, was at an $8 billion valuation, said people familiar with the matter. Byju’s was valued at $5.75 billion in July last year, when it raised $150 million from Qatar Investment Authority and Owl Ventures.

If the deal goes through at this new term, Byju’s would become the second most valuable startup in India, joining budget lodging startup Oyo, which is also valued at $10 billion, and following financial services firm Paytm that raised $1 billion at $16 billion valuation late last year.

The talks haven’t finalized yet and terms could change, said one of the aforementioned people. This person, along with the other two, requested anonymity as the matter is private.

Spokespeople of Byju’s and Prosus Ventures, the largest external investor in the startup, declined to comment. A spokesperson for Tiger Global did not respond to a request for comment.

Byju’s, which has raised more than $1.3 billion to date, has seen a sharp surge in both its free users and paying customers in recent weeks as it looks to court students who are stuck at home because of the nationwide lockdown New Delhi ordered in late March.

The startup told TechCrunch last month that traffic on its app and website was up 150% in March and it added six million students to the platform during the month.

Other edtech startups, including Unacademy, which was recently backed by Facebook, and early-stage startups such as Sequoia Capital India-backed Classplus, and Chennai-based SKILL-LYNC, have also seen growth in recent weeks, they told TechCrunch last month.

Through its app, tutors on Byju’s help all school-going children understand complex subjects using real-life objects such as pizza and cake. The app also prepares students who are pursuing undergraduate and graduate-level courses.

Over the years, Byju’s has invested in tweaking the English accents in its app and adapted to different education systems. It had amassed more than 35 million registered users, about 2.4 million of which are paid customers as of late last year.

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May
01

As COVID-19 dries up funding, only drought-resistant cannabis startups will survive

The COVID-19 crisis is creating an untold amount of uncertainty through every business sector, but for cannabis startups, it’s exacerbating a critical market that was already in decline.

TechCrunch spoke to Schwazze CEO Justin Dye following his company’s recent rebrand. He joined the company when it was Colorado’s Medicine Man Technologies (MMT) in late 2019 and is revamping the organization, including changing its name to Schwazze and acquiring a handful of companies to create a healthier, vertically integrated cannabis company.

The cannabis market is experiencing a correction after a period of rapid expansion. Shops are feeling the pain, and public valuations are settling under IPO levels — and this was before a pandemic swept the world. Cannabis media outlet Leafly laid off 91 employees in late March, and Eaze, an early mover in on-demand pot delivery, is experiencing major trouble after raising serious cash and recently losing a top partner in Caliva. In several states, efforts are underway to prop up the cannabis market by asking for the federal government to allow these businesses to be eligible for federal financial relief.

According to Dye, there are several things CEOs of cannabis companies of every size should work toward. His advice echoes what TechCrunch has heard in other verticals, as well: During the COVID-19 crisis, cannabis companies must hunker down and lean on strong teams to weather the storm. Once the skies start to clear, capital will be available to the survivors.

One, the cannabis market is looking for financially sustainable companies, Dye said.

“This next reset in the cannabis industry will not only be aspirational, but it’s going to be coupled with a requirement for performance in terms of executing against a plan and driving profits — or driving it to create free cash flow to be reinvested in the business and product experiences.”

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May
01

KlearNow raises $16 million to bring customs clearance industry into the digital age

Customs is the sieve of international supply chains. And yet despite its critical role, clearing customs for freight brokers can be a slow and opaque process reliant on manual data entry and prone to errors.

Silicon Valley-based KlearNow has developed a platform that aims to bring customs clearance into the digital age. Now, with $16 million new funding, KlearNow aims to expand its geographic reach and improve its product to cover increasingly complex export-import verticals and time-sensitive shipments.

The company has certification to handle any import into the U.S., no matter what the commodity is. KlearNow is close to getting certified in Canada and the U.K., and plans to expand to Netherlands, Belgium, Spain and Germany. KlearNow has about two dozen customers.

The Series A funding round was led by GreatPoint Ventures, with additional participation from Autotech Ventures, Argean Capital and Monta Vista Capital . Ashok Krishnamurthi, managing partner at GreatPoint Ventures, will join KlearNow’s board. Daniel Hoffer from Autotech Ventures is joining as a board observer.

“This is a significant opportunity to transform an archaic industry that is key to global commerce,” Krishnamurthi said in a statement.

The freight ecosystem is filled with different players from the factories and port authorities to the ship liners and the last-mile delivery companies. Each of them have their own systems.

“There’s no one system that you can transmit the data to,” KlearNow founder and CEO Sam Tyagi said in a recent interview. “So everybody dumps technology down to a PDF or a PNG or some sort of format that everybody can read. The broker gets those documents, and then they print it out — so now they become non-digital.”

If you go to any customs brokers office they look like the old doctor’s office where all those folders are there with nicely arranged, really organized but very manual process,” he added. From here, Tyagi said, a broker will read off from those printed documents and type the information into another system that is communicated to Customs and Border Patrol’s system.

“It is very manual, it’s very small, and they work in a siloed system,” Tyagi said. “There is no visibility for the customer, or the importer, and it’s very costly because of the manual intervention.”

KlearNow developed a digital customs clearance platform that aims to be agnostic. This allows importers, customs brokers and freight forwarders to integrate with local customs authorities and conduct business on a single digital platform remotely and in real time. The platform automates this process to eliminate errors and reduces the time to clear customs. KlearNow says it can slash customs clearance times from hours to minutes.

The startup is also betting that its platform will find new customers in this remote work era that was caused by the COVID-19 pandemic. Custom brokers, who might normally travel into central offices and manage physical paperwork, are now faced with completing that task from home.

“Remote work is impossible for these people,” because they often need to access large-format printers, Tyagi said. 

The company said its digital platform can funnel new clients, like these newly remote workers, directly to brokers for global customs clearance.

Tyagi said the company has also added new capabilities in response to COVID-19, such as expediting their FDA module to clear much-needed medical supplies, and is temporarily offering free clearance for nonprofit organizations that are importing masks, hand sanitizers and ventilators.

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May
01

Guilded raises $7 million for its competitive gaming-focused chat app

Gaming platforms have earned serious clout with investors in recent years. Add in the VC excitement surrounding collaboration tools and it’s no surprised there’s interest in backing another gaming chat app.

Guilded is creating a chat platform designed for competitive gaming and esports that focuses heavily on keeping gamers organized and connected with their teams.

The startup’s sell is that Discord (currently valued at $2 billion) has moved too broadly in recent years and that their feature set isn’t actually focused on what competitive gamers are looking for, forcing them to turn to spreadsheets and form submissions when they’re looking to get serious about organization.

“Discord is really great for a lot of communities, but we’re building chat specifically for gamers,” Guilded CEO Eli Brown told TechCrunch.

Guilded just announced that they’ve raised $7 million in Series A funding led by Matrix Partners. Initialized Capital, Susa Ventures and Sterling.VC also participated in the deal. Guilded was in Y Combinator’s S17 class.

Guilded is a bit more tightly organized than Discord, with the focus more dialed in on teams and server-based structures. The deep integration of scheduling and calendars is perhaps the biggest differentiation of the platform.

In addition to text chat, users can create inline events, upload documents and post screen captures as well. You can fire up the app while you’re actually playing a game and use voice chat to communicate with your server. Guilded currently supports more than 400 titles.

As with any new communications tool, Guilded’s challenge will be chipping away at competing products, namely Discord, and achieving a critical mass of users and servers that can self-sustain moving forward.

Looking ahead, the platform is looking to get deeper into facilitating gameplay. Users can already browse through public servers to immediately join or apply to be accepted to a private server and these servers can be further broken down into individual groups or channels. Guilded is building out a tournaments feature to match servers with similar skill levels to each other, a feature that’s launching in the coming months.

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May
01

As lockdowns stretch on, is edtech passing or failing?

Back in January, Georgia Tech professor David Joyner got a cryptic email from a student based in Wuhan, China.

“I’m under quarantine, but my internet access is okay so I have more time to spend on classwork, I wanted to let you know,” the message read. Unsure why Wuhan would be under quarantine, Joyner did a quick Google search and saw the beginnings of the coronavirus pandemic.

“I thought, there’s something going on in Wuhan so maybe we’ll have some students affected by it,” Joyner said. Fast-forward two months and the coronavirus is a household term. All of Joyner’s students, regardless of geography, have been impacted by the pandemic.

It has been a little over a month since colleges and schools across the country started shutting down due to COVID-19. Edtech startups had a surge in usage and a demand for more resources than ever. Now that the adoption scramble has slowed, the same startups are reckoning with unprecedented use cases.

Everyone knows how they’re expected to behave in a physical classroom, but can you stop a student from cheating when taking a test in their bedroom at home? How should teachers offer 1:1 time and take questions during a lesson?

Piazza founder Pooja Sankar says teachers face more open questions: “What does it mean to record myself? What does it mean to have a camera on my face? How do I know I can hold a class with reliable internet connection?”

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May
01

Launching Energize Colorado

I’m excited to announce the launch of Energize Colorado, a new Colorado-based non-profit to help energize companies in Colorado survive the Covid crisis and then thrive as we get the crisis under control.

A month ago (which seems like a year ago), I wrote a post explaining that the Covid crisis was actually three interwoven crises: health, financial, and mental health. As I went deeper through my work on various aspects of the Covid crisis on a volunteer basis across a number of initiatives, I began forming a clear view on the importance of the private sector taking a leadership role in helping the private sector.

I was fortunate that several of people who I started working with, including Wendy Lea, Erik Mitisek, and Marc Nager, were highly motivated by the mantra “Coloradans helping Coloradans.” The group rapidly expanded through both my network and theirs and quickly shifted to a mode of actively doing things, as volunteers on the private sector side, to actively support local businesses, entrepreneurs, rural businesses, women & minority-led businesses, non-profits, and contingent workers.

On March 23rd, a founding team of 15 people, led by Wendy Lea, got together to sketch out the idea for a new Colorado non-profit called Energize Colorado. The simple notion was to rally a large group of volunteers across the state who would donate their time and talent to help Colorado businesses under 500 employees stabilize, rebuild, and grow.

Amy and I have seed-funded many non-profits and are happy to include Energize Colorado in the list of things that we were the first funders for. Five weeks later, Energize Colorado is over 200 volunteers and growing daily.

In addition to creating new initiatives, Energize Colorado is focused on amplifying many of the activities happening throughout Colorado to help small businesses. Rather than duplicate efforts, Energize Colorado is adding to the mix, amplifying things that other non-profits are doing, highlighting new initiatives, and helping business people understand and navigate the many new initiatives from our State and Federal government.

The various categories of activities and information are currently organized as:

There will be at least two major new initiatives launched next week, with a steady stream after that. Follow along by subscribing to the newsletter or following the Energize Colorado twitter feed.

If you want to get involved and help in any way, please sign up on the volunteer form.

I’m proud to be a Coloradan helping other Coloradans in this crisis.

Original author: Brad Feld

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