Mar
20

Zoom warns investors that the app's huge boom in popularity is making it more expensive for the company to do business (ZM)

Zoom has experienced a huge increase in usage over the past few weeks — consumers and businesses alike are turning to the red-hot video chat app to stay connected amid the spread of coronavirus.Zoom executives said earlier this month that much of that new usage is for its free product, so its too early to tell how it will translate into more business. However, the increased usage puts more pressure on Zoom to keep up the quality of its product and forces the company to invest in growing its infrastructure, according to a new company filing.  Zoom also worries that if it can't grow its infrastructure fast enough, people might start to see its product as unreliable, which will only give rivals like Microsoft, Google, and Cisco opportunity to pounce.Click here for more BI Prime stories.

Zoom has had explosive growth over the past few weeks, as businesses and schools around the world turn to operating remotely to try and slow the spread of COVID-19, the coronavirus disease. 

However, in a new securities filing from the company on Friday, Zoom warns investors that this may prove to be a double-edged sword: The flood of new users, both consumer and business, will force the company to invest in building out its infrastructure while also maintaining the reliability that helped make it such a hit in the first place. 

"We expect our cost of revenue to increase for the foreseeable future, both in absolute dollars and as a percentage of total revenue, as we expand our data center capacity and third party cloud hosting due to increased usage stemming from the recent outbreak of the COVID-19 virus," Zoom writes in the filing. 

The "third party" referenced by Zoom is likely Amazon Web Services, the online retail giant's massively profitable cloud computing arm, and which is known to host at least some of the company's IT infrastructure. 

And if it can't keep up, Zoom warns, it'll have a harder time competing with its numerous video-chatting rivals, which include Microsoft Teams, Google Hangouts, and Cisco WebEx.  

"Any unfavorable publicity or perception of our platform, including any delays or interruptions in service due to capacity constraints stemming from increased usage due to the recent outbreak of the COVID-19 virus, or of the providers of communication and collaboration technologies generally could adversely affect our reputation and our ability to attract and retain hosts," Zoom writes. 

Not clear how many users Zoom has added

That increased cost of revenue — a key measure of the cost of doing business — becomes a problem when it's unclear how many new Zoom users will eventually turn into paid customers. 

"While we have seen increased usage of our service globally, there are no assurances that we will also experience an increase in paying customers or that new or existing users will continue to utilize our services at the same levels after the outbreak has tempered," Zoom said in the filing. 

Zoom hasn't said exactly how many new users it's gotten amid the current crisis, but has hinted that the number is substantial. However, executives on the company's earnings call at the beginning of March said that it was too early to tell how it would impact the business. On the call, CEO Eric Yuan said at the moment he is just focused on providing the best product to customers and helping those impacted by the pandemic. 

In China, where the outbreak started, Zoom removed the 40-minute time limit for its free product for the foreseeable future. It's also done the same for the educational industry in several countries, and Yuan has reportedly personally taken time to sign up colleges and schools on Zoom.

Keeping up a reputation for reliability 

Zoom worries that if it can't grow its infrastructure fast enough, people may start to see its product as unreliable. That type of reputational harm is hard to come back from, especially as the market for video conferencing and collaboration tools is "increasingly competitive," the company writes. 

Already there have been some reports showing the impact of Zoom's increased usage. In at least one instance, internet trolls entered a Zoom video call and started sharing graphic, sexual videos. Meanwhile, students frustrated with having to use Zoom to attend school remotely have been leaving bad reviews on the mobile app in a bid to get it removed from the App Store.  

These type of incidents could make it harder or more expensive for Zoom to maintain its brand and reputation. That could open the door to competitors like Microsoft Teams, Cisco's WebEx and even Slack to win over Zoom's customers. 

"Furthermore, as the rate of adoption of new technologies increases, the networks our platform relies on may not be able to sufficiently adapt to the increased demand for these services, including ours. Frequent or persistent interruptions could cause current or potential users to believe that our systems or platform are unreliable, leading them to switch to our competitors or to avoid our platform, and could permanently harm our business," Zoom writes. 

Got a tip? Contact this reporter via email at This email address is being protected from spambots. You need JavaScript enabled to view it. or Signal at 925-364-4258. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop.

Original author: Paayal Zaveri

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Dec
03

Let’s meet in Poland this month

Instagram cofounder Mike Krieger has come up with a way to help San Francisco's restaurants stay afloat through the city's 'shelter in place' period.Krieger and his wife built a directory of San Francisco restaurants and cafes with links allowing city residents to buy gift cards, allowing these businesses to continue to get enough income to pay rent and take care of fixed costs. "It's a seemingly small gesture, but it means that the business gets income today to stay afloat through the crisis," Krieger wrote in a Medium post. Visit Business Insider's homepage for more stories.

San Francisco's sweeping directive instructing local residents to "shelter in place" is threatening the future of many of the city's restaurants and cafes. 

And when one Pacific Heights neighborhood restaurant was forced to close shop last weekend, one of Instagram's cofounders, Mike Krieger, sprung into action and built a directory of restaurants offering gift cards in order for San Franciscans to support their city's most beloved eating spots. 

 

—Mike Krieger (@mikeyk) March 17, 2020

In a blog post, Krieger urged local residents to consider buying gift cards for their most cherished eating spots. Gift cards would go a long way to helping support the 12,000+ small businesses that may be forced to permanently close as a consequence of measures to contain the coronavirus outbreak, he said. 

"It's a seemingly small gesture, but it means that the business gets income today to stay afloat through the crisis. You'll get repaid in burgers/lattes/negronis (and gratitude) when they're back on their feet," Krieger wrote. 

And Krieger is hoping that the directory he built, dubbed SaveOurFaves, will help make the process easier for San Franciscans - and help save the city's restaurants. 

"We hope SaveOurFaves will help "flatten the curve" of lost income for restaurants — giving them the resources to make ends meet and preserve the livelihood of wage earners during this difficult time," he wrote.  

Original author: Bani Sapra

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Dec
03

Thought Leaders in Internet of Things: Flavio Gomes, CEO of LogiSense (Part 3) - Sramana Mitra

YouTube's Partner Program allows influencers to earn money off their YouTube channels by placing ads within videos. Google places these ads and pays a creator based on factors like a video's watch time, length, and viewer demographic.Business Insider spoke with eight YouTube creators about how much each of them earn on average for every 1,000 views. Click here for more BI Prime stories.

Creators on YouTube earn a certain amount of money for every 1,000 views they get on a single video.  

How much money YouTube pays a creator for every 1,000 views is called the CPM rate, which stands for cost per mille (Latin for 1,000). CPM rates vary between creators, and no creator consistently has the same rate.

This number can vary based on a variety of factors, like the type of viewers the video attracts, how long the video is, and the content. Some videos that contain swearing or copyrighted music can be flagged by YouTube and demonetized, earning hardly any money for the creator (or none at all).

Creators with at least 1,000 subscribers and 4,000 public watch hours in the past year are eligible to apply for YouTube's Partner Program, which lets them put ads in videos. These ads are filtered and placed by Google (called AdSense).

Advertisers usually pay more for an informative, business-related video than a vlog-style video. The rate also depends on seasonality, with lower CPM rates at the start of the year and higher ones toward the end.

Some subjects, like talking about money on YouTube, often can boost a creator's CPM rate by attracting a lucrative audience. For instance, personal-finance creator Marko Zlatic told Business Insider that his audience is valuable to advertisers because they usually are in a high income bracket and care about finance. 

Business Insider spoke with eight YouTube creators about how much each of them earn on average for every 1,000 views. 

Here's what they said:

Sign up for Business Insider's influencer newsletter, Influencer Dashboard, to get more stories like this in your inbox.

Original author: Amanda Perelli

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Dec
03

1Mby1M Virtual Accelerator Investor Forum: With Shuly Galili of UpWest Labs (Part 3) - Sramana Mitra

Cisco and F5 Networks, which make networking gear and software, have seen their shares take a hit in the coronavirus-driven market downturn.But the two tech companies are getting a lift from the sudden shift to a remote workforce amid the crisis, according to a Wall Street analyst.Businesses are "fully focused on getting workers set up to work remotely," and Cisco and F5 are "best positioned" to take advantage of this trend because of their huge customer bases, Morgan Stanley analyst Meta Marshall told analysts in a note. Click here for more BI Prime stories.

Cisco and F5 Networks have seen their stocks tumble as the coronavirus crisis sparked fears of another recession. But a Wall Street analyst said the two tech companies, which provide enterprise tech equipment to businesses, are getting a lift from a consequence of the pandemic: the sudden rise of a remote workforce.

Businesses, including major corporations, are "fully focused on getting workers set up to work remotely," a trend in which Cisco and F5 are "best positioned" given their huge customer bases, Morgan Stanley analyst Meta Marshall told analysts in a note. 

Cisco, which is based in San Jose, is the leading provider of networking hardware and software, including security, used for private data centers and cloud platforms. Seattle-based F5 makes equipment and software used to monitor business networks, to make sure they are working properly and securely.

These products are key to setting up remote access for employees which has become a critical need for many businesses. Despite the downturn, companies in the financial services industry "have spared no expense on incremental purchases to get a workforce set up for remote working."

On the other hand, demand for networking systems in key markets has taken a hit. One example is the government sector. Marshall said government budgets are "beginning to dry up," especially as the federal government has focused its resources to fighting COVID-19.

F5 shares have shed about 25%, while Cisco's stock has dropped about 23% in the past month.

Got a tip about Cisco, F5 or another tech company? Contact this reporter via email at This email address is being protected from spambots. You need JavaScript enabled to view it., message him on Twitter @benpimentel or send him a secure message through Signal at (510) 731-8429. You can also contact Business Insider securely via SecureDrop.

Original author: Benjamin Pimentel

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Sep
17

The RetroBeat — Diablo II: Resurrected readies for launch during a dark time at Blizzard

Netflix recently introduced daily top 10 lists of its most popular movies and TV shows.

Every week, the streaming search engine Reelgood compiles for Business Insider a list of which movies have been most prominent on the streamer's daily lists over the previous week.

This week, they include the Netflix original "Lost Girls" and the 1995 movie "Outbreak," which is among the titles about disasters or deadly viruses that have surged in popularity on Netflix amid the coronavirus pandemic.

Below are Netflix's 7 most popular movies of the week in the US:

Original author: Travis Clark

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Dec
04

Bootstrapping with Services from Michigan: Amjad Hussain, CEO of Algo.ai (Part 1) - Sramana Mitra

The World Health Organisation has launched a chatbot to provide people with information about the novel coronavirus as the pandemic continues to spread across the globe.

Announced on Friday, the service lets users of the Facebook-owned messaging app learn more about current infection rates, how to protect themselves, and get answers to frequently asked questions about the disease.

It's one of a number of steps Facebook is taking to try and promote reliable information about COVID-19, the disease caused by the coronavirus, that has now infected more than 265,000 people and killed more than 11,000 globally. The Silicon Valley-based tech giant has launched a Coronavirus Information Center that provides info and is prominently placed in its main app, and is deleting dangerous misinformation about the disease.

The WHO's bot is relatively simple, and doesn't respond to natural language or questions from users. Instead, users can send numbers (or emojis) to get more info on corresponding topics — like "mythbusters," "travel advice," or how to donate to aid efforts. (People can access it by following this link on their phones.)

WhatsApp has faced repeated criticism in the past for its role in spreading hoaxes and misinformation. Unlike Facebook's namesake messaging app or its Instagram app, WhatsApp uses end-to-end encryption, meaning Facebook cannot actively moderate content that users send one another on ther service.

How is the coronavirus impacting your workplace? You can contact this reporter via encrypted messaging app Signal (+1 650-636-6268), encrypted email (This email address is being protected from spambots. You need JavaScript enabled to view it.), standard email (This email address is being protected from spambots. You need JavaScript enabled to view it.), Telegram/Wickr/WeChat (robaeprice), or Twitter DM (@robaeprice).

Original author: Rob Price

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Dec
04

Freeletics raises $45M for its AI-powered mobile fitness coach

When you buy through our links, we may earn money from our affiliate partners. Learn more.

Alyssa Powell/Business Insider Amazon Prime offers a lot of features with a membership, including Amazon music, free shipping, and access to the Prime Video streaming service.I like to use movies as a bonding experience for my family, and Prime Video has a lot of new and old options for us to choose from.From simple songs and cartoons for toddlers to feature films for the whole family, we've compiled a list of some of the best kids' movies on Prime Video.

 

My favorite use of screen time for my daughter is to make some snacks, gather in the living room, and have family movie night. My husband and I like to introduce her to some of our old favorites, and we also love experiencing new movies as a family. Amazon Prime Video has plenty of movie options for us to do just that. Prime Video also has a wide selection of hour-long "movie" episodes of kids TV shows — the perfect length to hold a preschooler's attention. 

Prime Video is currently available as part of an Amazon Prime membership for $12.99 per month or $119 per year. Other perks offered with a Prime membership include free two-day shipping on a large selection of eligible items, Prime Music streaming, and more. You can also subscribe to Prime Video as a standalone service for $8.99 per month.

Scrolling through the seemingly endless options on streaming services can often make the act of choosing a movie take more time than actually watching it. When you have a young kid with a short attention span, you don't have that kind of time. To speed along the process, we put together a list of options for you. 

Our picks feature a mix of animated and live-action titles selected from the Prime Video app's Kids and Family content sections. All of our recommended kids' movies are rated G or PG, and the ratings are listed for each title under their descriptions.

Updated on 03/20/2020 by Steven Cohen: Removed films no longer available on Prime Video and added new picks available to stream right now. Updated formatting and details about the selection process.

Check out our list of the top 15 kids' movies on Amazon Prime Video: 

*Series descriptions are provided by Amazon and lightly edited for length.

Original author: Alicia Betz

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Sep
20

SEC has started its own investigation into Activision Blizzard’s workplace practices

Amazon sellers are reeling from unexpected spikes and declines in sales as consumers stock up on items like food, toys, and fitness items while sales for non-essential items slow down.Laura Meyer, the founder and CEO of Amazon-focused ad agency Envision Horizons, hosted a webinar on March 19 about the steps that sellers can take as sales spike or die down.For sellers that are seeing spikes in sales, Meyer said she recommends buying Amazon ad formats like mobile video and sponsored brands that run in search results.Amazon is also halting third-party shipments of non-essential items through April 5. For sellers that move to fulfilling their own orders in the interim, Meyers suggested pulling back ad spend because items will not be eligible for Prime shipments.Click here for more BI Prime stories.

The past few weeks have been rocky for Amazon sellers.

As coronavirus spreads across the US and orders for items like food, hand sanitizer, and toilet paper rise, some sellers are struggling to keep up with demand while other sellers are struggling to sell less-essential products like clothing.

Laura Meyer, the founder and CEO of the Amazon-focused ad agency Envision Horizons, recommends sellers that are seeing extreme growth spend more on ads that zero in on keywords that are driving traffic to a page. But she warned sellers against placing higher bids for ads because it can hurt performance.

"Open the budgets for what's working, don't limit them and be on top of any well-performing campaign that seems to go out of budget mid-day," Meyer said during a webinar with sellers on March 19.

She said she's advising clients to use Amazon's mobile ad formats that show more creative than Amazon's core text ad formats. Meyer recommended clients buy Amazon's mobile video ads and sponsored brand formats that appear in search results.

For sellers like grocers and food brands that are rapidly moving through inventory, Meyer recommended pulling back on ad spend to better manage demand.

In addition to sales of household items, she said that products like toys, fitness equipment, and beauty products including hair, skin and nail are increasing from people who are bored and stuck in their house.

"It's really varying across categories," she said.

Meyer quickly polled webinar attendees about their sales during the webinar. 33% of attendees said that they have seen a significant increase in sales over the past week while 15% said that they have seen a significant decrease.

Meyer's clients include Stomp Rocket, a STEM toy for kids, and Oxygen Plus, a wellness product that helps with breathing after workouts.

On March 17, Amazon said that it would stop accepting third-party shipments of nonessential items to prioritize items like health and household products and baby products for sellers that used the Fulfillment by Amazon program. Amazon also plans to hire 100,000 warehouse workers to help get with the ordering surge.

In the interim, Meyer said that non-essential sellers should consider Amazon's fulfillment by merchant program where sellers ship their own products, but said that pricing can be more expensive than the logistics contracts that sellers get from shipping items to Amazon's warehouses. Sellers that ship products on their own are also not eligible for Amazon Prime. Sellers like Amazon Prime because it helps promote products to a wide audience and offers consumers free shipping.

Meyer said that conversion rates for ads that promote non-Prime items are typically lower than ads that promote Prime items and suggested that sellers who have to sell their own items in the coming weeks pull back on advertising.

She also said that Envision Horizons is working with sellers to ship inventory through Amazon's small parcel program once the ban ends on April 5, which helps speed up how fast Amazon checks in products. Meyers said that she expects that check-in times for inventory will be long once Amazon starts accepting non-essential items again, similar to the check-in times for big shopping days like Prime Day and the holidays.

"This is the plan B that we recommend for the time being," she said.

Original author: Lauren Johnson

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Mar
20

This startup is tracking the coronavirus through sewers and using AI to predict its spread in a new project with MIT

New studies show that the coronavirus is shed in stool, meaning that it's collecting in city sewers around the country. Biobot Analytics aims to take advantage of this distinctive data resource by testing samples from wastewater treatment plants and tracking the results on a real-time map.The map, as well as AI-powered predictions on the virus' spread, could provide valuable information to city officials. Visit Business Insider's homepage for more stories.

One of the great vulnerabilities America faces in fighting COVID-19 is a lack of tests, so researchers are working around that shortage by harnessing a resource that never runs out: Poop.

A Massachusetts AI startup called Biobot Analytics launched a pro bono project with MIT and Harvard University on Friday to try to track the virus across America by testing wastewater. 

New studies show that the virus causing COVID-19 is shed in stool, which means that it's collecting in city sewers. Biobot plans to use samples from wastewater treatment plants across the US to test for the virus and then track the results on a real-time map, applying predictive analytics to try to anticipate its spread. 

The system allows cities to track the scope of the outbreak without depending on individual patient testing or hospital reporting, organizers say. 

There is precedent for the project. In 2013, researchers in Israel detected an outbreak of poliovirus through a wastewater epidemiology program before local clinics reported symptoms. Biobot has also previously applied its methods of combining wastewater testing and AI-powered mapping to another major US health threat: opioid addiction.  

"There is an untapped resource in wastewater that can teach us about public health to someday stop global epidemics," says Biobot Analytics cofounder Mariana Matus, who started researching these topics eight years ago as a first-year PhD student at MIT. The research grew into the MIT Underworlds Project in 2015, and became a fully-fledged company, Biobot, in 2017.

"When the COVID-19 outbreak started accelerating around the world, we realized this was exactly why we started the company," says cofounder Newsha Ghaeli, who previously studied urban planning and architecture.

Here's how the project works: 

After city health officials sign up for the service, Biobot will ship a sampling kit to their local wastewater treatment plant. Wastewater facilities will collect 24-hour composite samples and then ship the samples back to Biobot. Biobot will process the sewage samples in its lab to concentrate and inactivate viruses, removing key proteins so that they're no longer contagious. MIT will apply a test to detect the virus and relay results to Biobot. Biobot will map test results for all participating communities and use AI-powered analytics to predict where the virus could spread.

Right now, teams at Biobot, Harvard, and MIT are doing the work pro bono, asking only that communities cover the costs of the sampling kit and shipping. Interested cities can fill out this form.

And if something about this distinctive resource being harnessed for research smells a little funny to you, the company has a simple message: "Sewage contains valuable information."  

Original author: Jeff Elder

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Mar
20

Hospital droid Diligent Robotics raises $10M to assist nurses

Twenty-eight percent of a nurse’s time is wasted on low-skilled tasks like fetching medical tools. We need them focused on the complex and compassionate work of treating patients, especially amid the coronavirus outbreak. Diligent Robotics wants to give them a helper droid that can run errands for them around the hospital. The startup’s bot Moxi is equipped with a flexible arm, gripper hand and full mobility so it can hunt down lightweight medical resources, navigate a clinic’s hallways and drop them off for the nurse.

With the world facing a critical shortage of medical care professionals, Moxi could help healthcare centers use their staffs as efficiently as possible. And because robots can’t be infected by COVID-19, they’re one less potential carrier interacting with vulnerable populations.

Today, Diligent Robotics announces its $10 million Series A that will help it scale up to deliver “more robots to more hospitals,” CEO Andrea Thomaz tells me. “We’ve been designing our product, Moxi, side by side with hospital customers because we don’t just want to give them an automation solution for their materials management problems. We want to give them a robot that frontline staff are delighted to work with and feels like a part of the team.”

The round, led by DNX Ventures, brings Diligent Robotics to $15.75 million in total funding that’s propelled it to the fifth generation of its Moxi robot. It currently has two deployed in Dallas, Texas, but is already working with two of the three top hospital networks in the U.S. “As the current pandemic and circumstance has shown, the real heroes are our healthcare providers,” says Q Motiwala, partner at DNX Ventures. The new cash from DNX, True Ventures, Ubiquity Ventures, Next Coast Ventures, Grit Ventures, E14 Fund and Promus Ventures will help Diligent Robotics expand Moxi’s use cases and seamlessly complement nurses’ workflows to help alleviate the talent crunch.

Thomaz came up with the idea for a hospital droid after doing her PhD in social robotics at the MIT Media lab. Her co-founder and CTO Vivian Chu had done a master’s at UPenn on how to give robots a sense of touch, and then came to work with Thomaz at Georgia Tech. They were inspired by a study revealing how nurses spent so much time acting as hospital gofers, so in 2016 they applied for and won a National Science Foundation grant of $750,000 that funded a six-month sprint to build a prototype of Moxi.

Since then, 18-person Diligent Robotics has worked with hundreds of nurses to learn about exactly what they need from an autonomous assistant.Today you will go about your day, and you probably won’t interact with any robots….we want to change that,” Thomaz tells me. “The only way you can really bring robots out of the warehouses, off of the factory floors, is to build a robot that can work in our dynamic and messy everyday human environments.” The startup’s intention isn’t to fully replace humans, which it doesn’t think is possible, but to let them focus on the most human elements of their jobs.

Moxi is about the size of a human, but designed to look like an ’80s movie robot so as not to engender an uncanny valley cyborg weirdness. Its head and eyes can move to signal intent, like which direction it’s about to move, while sounds let it communicate with nurses and acknowledge their commands. A moving pillar lets it adjust its height, while its gripper hand and arm can pick and put down smaller pieces of hospital equipment. Its round shape and courteous navigation makes sure it can politely share crowded hallways and travel via elevator.

Diligent Robotics’ solution engineers work with hospitals to teach Moxi how to get around and what they need. The company hopes to eventually build the ability to learn and adapt right into the bot so nurses can teach it new tasks on the fly. “The team continues to demonstrate unmatched robotics-specific innovation by combining social intelligence and human-guided learning capabilities,” says True Ventures partner and Diligent board member Rohit Sharma.

Hospitals pay an upfront fee to buy Moxi robots, and then there’s a monthly fee for the software, services and maintenance. Thomaz admits that “Hospitals are naturally risk-averse, and can be wary to take up new technology,” so the startup is taking a slow and steady approach to deployment so it can convince buyers that Moxi is worth the learning curve.

Diligent Robotics will be competing with companies like Aethon’s TUG bot for pulling laundry and pharmacy carts. Other players in the hospital tech space include Xenex’s machine that disinfects rooms with light, and surgical bots like those from Johnson & Johnson’s Auris and Intuitive Surgical.

Diligent Robotics hopes to differentiate itself by building social intelligence into Moxi so it feels more like an intern than a gadget. “Time and again, we hear from our hospital partners that Moxi not only returns time back to their day but also brings a smile to their face,” says Thomaz. The company wants to evolve Moxi for other dull, dirty or dangerous service jobs.

Eventually, Diligent Robotics hopes to bring Moxi into people’s homes. “While we don’t see robots replacing the companionship and the human connection, we do dream of a time that robots could make nursing homes more pleasant by offsetting the often staggering numbers of caretakers to bed ratios (as bad as 30:1),” Thomaz concludes. That way, Moxi could “help people age with dignity and hold onto their independence for as long as possible.”

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Mar
20

Crowd-lending platform October hits pause on loan repayments

French startup October wants to reduce the pressure on small and medium companies going through the coronavirus crisis. In order to give them some headroom, companies that have borrowed money on October won’t have to pay back their loans for the next three months.

October works with small companies in France, Spain, Italy, Netherlands and Germany that need a credit line. One of the company’s key advantages compared to borrowing money from a bank is that it’s much faster. You can apply to a credit line and get an answer just a few days later. Usually, companies pay back their loans over time, with monthly repayments over three months to seven years.

October evaluates risk before handing out loans. It works with many institutional partners to raise funds and deploy capital in those loans. Some retail customers also invest on October directly on a company-by-company basis.

But many small European companies that have borrowed money on October won’t generate revenue for a little while. They could face cash flow issues and they could have issues repaying those loans.

That’s why October has decided with its institutional partners that it is postponing all outstanding loans for the next three months. Companies won’t have to pay a huge sum of money after that; October is also postponing the end date of the loans by three months.

October then asked retail investors to vote whether they are in favor or against postponing loans; 99.42% of retail investors who voted followed October’s move.

October is also waving its own fees for the next three months, but companies will still have to pay interest on outstanding capital.

This way, fewer companies should go bankrupt over the next three months. It should minimize the impact of the current economic crisis on the overall default rate of October loans.

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Mar
20

Coterie raises $8.5M to build ‘commercial insurance as a service’

Ohio-based Coterie, a startup working on in the commercial insurance space, has announced today it has raised $8.5 million Series A. The company had previously raised a little over $3 million in early investments, bringing its equity capital raised to nearly $12 million to date; the firm also told TechCrunch that it has raised $2.5 million in available venture debt as part of its current round.

In an uncertain market, Coterie is better capitalized than it ever has been, thanks to Intercept, and The Hartford, and RPM Ventures , which led its latest round.

Coterie operates in insurtech, a space we’ve covered extensively in recent months. But it’s not MetroMile or Lemonade, both of which selling consumer insurance. Nor is it akin to The Zebra, Policygenius, Gabi, or Insurify, helping consumers link to third-party insurance products. It’s closest private market comp, looking at our recent coverage, is Briza, which produces APIs linking small businesses to small business insurance products.

But what Coterie does is slightly different if we’re grokking its model correctly: It offers what it calls “commercial insurance as a service,” according to an interview with TechCrunch. Let’s explore.

Model

In a call with TechCrunch about its latest funding event, Coterie explained that, using APIs, it connects “places that have some commercial insurance requirement, or service customers who need commercial insurance, and we simply pass that information into our system and we quote and bind automatically.”

While Coterie does partner with external insurance entities (more on that in a second), it handles a lot of the work in-house: “We actually have the underwriting control, so we don’t we don’t ship it off to 10 different carriers. We actually say yes, we will bind this policy, or no, we won’t,” said Coterie CEO David McFarland, adding that “most of the time we have a pretty broad appetite so we can write a good bit of business.”

Helping it in this process are some partners in the insurance market that help with “the licenses and the capital requirements,” the company said.

What makes Coterie interesting isn’t that is a digital take on a previously paper business, but that it’s product allows it to insure freelancers (Coterie partners with freelance marketplaces, allowing it access to a potential customer base and helping the marketplace itself provide insured providers) for even small increments of time; that’s something that wasn’t economically attractive under old models, if even possible.

According to the firm, it offers general and professional liability insurance, along with business owners policies. Coterie has eyes on various types of data to power its model (and make good policy pricing choices), highlighting information like business payment flows to vet company health, to pick an example.

Coterie only started selling its products in September of 2019, but noted to TechCrunch that it saw “pretty good growth” from from the jump, and “pretty steady growth” since then. But as Coterie noted in our call, insurance is a somewhat low-margin business, meaning that policy growth, while good, needs to be pretty steep for the gross margin generated to stack up too high.

But with $8.5 million in new equity capital and total access to over $10 million in funds, the startup now has more money than ever to pursue its model. And if it’s like the rest of the insurtech space, it has a good shot at quick growth.

Update: The first version of this post included an incorrect investor; it has since been corrected.

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Mar
20

Covid-19 Podcasts About Crises and Mental Health

Over the past week, I’ve done a handful of podcasts to help entrepreneurs, leaders, and employees at startups to help think through how to respond in a crisis. I’ve requested that anything I do right now on this front is made public, so if anyone is interested, they can watch them.

The first, hosted by David Cohen, is with Scott Dorsey, Paul Berberian, and Berne Strom. Scott, Paul, Berne, and I are all “older entrepreneurs and investors” who have been through multiple crises dating back to 1987.

The next was a podcast I did with Greg Keller at JumpCloud on mental health in a crisis.

Last week I did two podcasts with Howard Lindzon on his series called Panic with Friends.

As a bonus, Fred Wilson also did a Panic with Friends with Howard which was excellent.

I’ve allocated a max one hour a day during the weekday for participating in creating content like this during the week as the Covid-19 crisis unfolds, but I’ll continue doing this as long as I feel like I have fresh things to contribute.

Original author: Brad Feld

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Mar
20

1Mby1M Virtual Accelerator Investor Forum: With Ashish Jain of 3Lines Ventures (Part 3) - Sramana Mitra

Sramana Mitra: Do you want to do another example? Ashish Jain: Let’s take one from India. I would not even call it emerging anymore. India is going through Innovation 3.0. 1.0 was around business...

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Original author: Sramana Mitra

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Mar
20

Best of Bootstrapping: Scaling to Over $10M by Bootstrapping Using Services - Sramana Mitra

We’re big believers in Bootstrapping Using Services, as you know. Here’s the story of CEO James Kane who scaled RWS to over $10 million in revenue using the method. Sramana Mitra: Let’s start at the...

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Original author: Sramana Mitra

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Mar
20

March 26 – 478th 1Mby1M Mentoring Roundtable for Entrepreneurs - Sramana Mitra

Entrepreneurs are invited to the 477th FREE online 1Mby1M mentoring roundtable on Thursday, March 19, 2020, at 8 a.m. PDT/11 a.m. EDT/4 p.m. CET/8:30 p.m. India IST. If you are a serious...

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Original author: Maureen Kelly

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Mar
20

477th Roundtable Recording on March 19, 2020: With Elly Truesdell, Almanac Insights - Sramana Mitra

In case you missed it, you can listen to the recording here: 477th 1Mby1M Roundtable March 19, 2020: With Elly Truesdell, Almanac Insights

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Original author: Maureen Kelly

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Mar
20

Scanwell aims to launch at-home 15-minute coronavirus test, but it still needs FDA approval

At-home diagnostics startup Scanwell, which produces smartphone-based testing for UTIs, is working on getting at-home testing for the novel coronavirus into the hands of U.S. residents. The technology, which was developed by Chinese diagnostic technology company INNOVITA and has already been approved by China’s equivalent of the FDA and used by “millions” in China, can be taken at home in 15 minutes with the guidance of a medical professional via telehealth, and produces results in just hours.

Scanwell’s test will require FDA clearance, but the company tells me that it’s in the process of securing approval through the FDA’s accelerated emergency certification program. The FDA guidance says that this approval process should take 6-8 weeks (though that “could be faster,” Scanwell says), and Scanwell is aiming to be ready to go with shipping these as soon as it receives that approval. While the U.S. drug regulatory agency previously had only included PCR tests in its protocols, it updated that guidance to include serological tests earlier this week. Scanwell further says they “don’t anticipate any issues with FDA approval.”

The test that Scanwell is aiming to launch uses what’s called a ‘serological’ technique, which looks for antibodies in a patient’s blood. These are only present if someone has been exposed to the SARS-CoV-2 virus, since as of right now researchers haven’t found any evidence that natural antibodies to this particular virus exist without exposure. By contrast, the types of tests that are currently in use in the U.S. are “PCR” tests, which use a molecular-based approach to determine if the virus is present genetically in a mucus sample.

The PCR type of test is technically more accurate than the serological variety, but the serological version is much easier to administer, and produces results more quickly. It’s also still very accurate on the whole, and is much cheaper to produce than the PCR version. Plus, it could help expand efforts beyond testing only the most severe cases with symptoms present, and do a much better job of illuminating the full extent of the presence of the virus, including among people with mild cases who have already recovered at home, and those who are asymptomatic but carrying the virus with the possibility of infecting others.

Other, PCR-based at-home testing options already exist, like one from Everlywell that will start going out on Monday, require round-tripping test samples, adding time, complexity and cost and relying on testing materials like swabs that are in short supply globally. Scanwell’s can be performed completely at home, reducing time for a diagnosis and lessening strain on the supply chain.

Once the test is available, people deemed eligible via Scanwell’s screening process in their Scanwell Health app will be sent the test via next-day delivery. They’ll be guided by telehealth partner Lemonaid‘s licensed doctors and nurse practitioners, and they’ll then receive results and further guidance about those results via the app within a few hours. The whole testing process will cost $70, which Scanwell says just covers its costs (it’s also looking at ways to provide free service to those who need it), and will be deployed first in Washington, California and New York, as well as other areas depending on the severity of their coronavirus situation.

That the tests will take potentially 6-8 weeks to come to market seems like a long time, given the current state of the rapidly evolving COVID-19 situation and testing. But we’ll likely still be very much in need of testing options at that time, especially ones that can serve people who aren’t necessarily meeting the criteria for other available testing resources.

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Mar
20

Roundtable Recap: March 19 – Trends in Food Related Startups - Sramana Mitra

During this week’s roundtable, we had as our guest Elly Truesdell, Partner at Almanac Insights, a fund focused on food related investments. Fascinating conversation! MarketKoin As for entrepreneur...

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Original author: Sramana Mitra

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Mar
20

Cloud Stocks: Paylocity Delivers Solid Results - Sramana Mitra

According to a Research and Markets report, the global Human Capital Management (HCM) market is estimated to grow 10% annually over the next few years to $26.5 billion industry by 2024 from $16.7...

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Original author: MitraSramana

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