Joseph Lubin, Amanda Gutterman and Sam Cassatt from Consensys to speak at Disrupt SF

There is perhaps no firm that has done as much to promote the adoption of Ethereum as the dominant cryptocurrency platform for actual product development as Consensys.

Founded by Ethereum Foundation co-founder Joe Lubin, Consensys has emerged as an investor, accelerator, educator and product developer in its own right in little more than three years that it has been in existence.

A Princeton-educated roboticist and autonomous vehicle researcher, Lubin has become a billionaire through his bet on Ethereum as the cryptocurrency that would win the hearts and minds of developers.

And with Consensys he’s built an empire that spans the globe. From its headquarters in Brooklyn, Consensys now has operations, offices and partnerships in Ireland, Israel, and Singapore, and the global expansion shows no sign of slowing down.

That’s why we’re absolutely thrilled to have Joe Lubin, Chief Marketing Officer Amanda Gutterman, and Chief Strategy Officer Sam Cassatt join us on the Disrupt SF stage.

Nothing summarizes Lubin’s ambitions for Ethereum better than this comment on the transformative power that he sees in the cryptocurrency.

Lubin, Gutterman and Cassatt join a world-class agenda, with speakers like Brian Armstrong, Kirsten Green, Reid Hoffman, and Marty Chavez. Tickets to the show, which runs September 5-7, are available here.


Source: Tech Crunch

MoviePass subscribers will now pay surcharges for popular showtimes

MoviePass subscribers were just greeted with a special Fourth of July surprise from the company, but it’s not good news. Surprise!

The company’s plan to introduce summer surge pricing goes into effect today. In an email to subscribers introducing “peak pricing,” MoviePass tried to spin this like a new feature introduction rather than a notification that its monthly service had again worsened.

In an FAQ on its site, MoviePass explains its new dynamic pricing plan and the accompanying surcharges in more detail, but not a lot of detail. The company fails to really explain what exactly will determine price fluctuations beyond stating that “movies that are high in demand for title, date, or time of day will be impacted.” It doesn’t provide guidelines for what those surcharges will look like, though a screenshot it provides suggests we might pay $3.43 more to see Avengers: Infinity War at 7:00 PM.

Now, movies in the app will display a red lightning icon when they are in peak pricing and a gray icon when they are approaching peak pricing status. Subscribers will be able to waive one peak pricing fee per month, which is some relief for the thing you paid for now providing less value and convenience but also just makes the whole system more complicated.

Peak pricing will gradually roll out across geographic areas starting on July 5. If it hasn’t hit your local screen yet, rest assured that no MoviePass subscribers will escape the company’s latest effort to bend its unsustainable business model toward realism.


Source: Tech Crunch

Zebra Technologies is buying rugged tablet maker Xplore for around $90M in cash

Some more consolidation is afoot in the world of enterprise mobility. Today, Zebra Technologies — a company that makes handheld scanners, printers and other portable hardware, and develops the technology to tag things to be read by them — is acquiring Xplore Technologies, one of the older and bigger makers of ruggedised tablets and other hard-wearing hardware. Both companies are publicly listed and Zebra says it will be paying $6 per share in cash for Xplore, which works out to about $90 million — a premium on the company’s current market cap of about $65 million.

Zebra’s market cap is just under $8 billion.

The deal will give Zebra deeper inroads into the retail, manufacturing, transportation, logistics and healthcare verticals and also give the company avenues to sell into further markets where Xplore already has customers such as the energy sector, government and public safety, Zebra said. Xplore booked $87 million in revenue in the 12 months that ended March 31.

Xplore generated revenue of $87 million in the 12-month period ended March 31, 2018, but it’s never been massively profitable. In the fourth quarter, which the company reported earlier today, Xplore scraped out a net profit of $300,000 (compared to a loss of $2.6 million a year ago).

As with a lot of enterprise consolidation, which sees smaller companies coming together or bigger fish gobbling up smaller but promising fish, the idea will be to bring together its hardware business into a wider operation to create more manufacturing efficiencies and to sell more services to Xplore customers to improve margins on those deals, which Zebra says is in line with how businesses are looking to operate today anyway.

“In today’s on-demand economy, investments to digitize operations are central to our customers’ strategies. The acquisition of Xplore enhances our product lineup and gives Zebra a complete rugged tablet portfolio that enables our customers to gain a performance edge,” said Anders Gustafsson, chief executive officer of Zebra Technologies, in a statement. “We’d previously outlined potential areas of expansion that are a natural fit for Zebra and its Enterprise Asset Intelligence vision, and this acquisition is aligned with that strategy. The addition of Xplore provides access to a great team and great products in an attractive market and should enable us to grow the category double digits going forward.”

Zebra has carved out a place for itself as a buyer of operations that need more scale to see their potential realised, making around 14 since 1998. Perhaps most notably, it acquired the enterprise business of Motorola Solutions for $3.5 billion in a big Internet of Things play. Xplore’s emphasis on devices complements that with a set of hardware for when machine-to-machine communications may not be enough.

“We are excited to join Zebra, the worldwide leader in enterprise mobility and visibility. This acquisition validates the incredible work our team does every day to develop innovative solutions and serve our customers,” said Tom Wilkinson, chief executive officer of Xplore Technologies, in his statement. “Our products are a natural fit for Zebra, creating a comprehensive rugged mobility portfolio that stands against any competitor.”

The companies say the deal is expected to close in Q3 2018.


Source: Tech Crunch

ZTE replaces its CEO and other top execs

A number of top executives are out at ZTE as the phone maker works to fulfill the requirements of U.S.-imposed restrictions. Among the big changes up top is new CEO Xu Ziyang, who formerly headed up the company’s operations in Germany. A new CFO, CTO and head of HR have been named, as well, according to The Wall Street Journal.

The move comes a few days after company slowly began to resume some business operations on a one-month waver, following a seemingly D.O.A. seven-year export ban. The ban was announced back in April, after the company failed to appropriately punish top employees over Iran/North Korean trade violations.

Trump, however, was quick to toss the company a lifeline, citing potential job loss in China. The President’s willingness to bail out ZTE has been met with staunch criticism by many, including members of his own party. A bipartisan push in Congress to reinstitute the ban began in Congress last month. Many of the issues appear to stem from ties to the Chinese government that also put Huawei in hot water with U.S. security orgs.

For now, however, the company appears to be springing back to life, as it rushes to comply with the most recent laundry list of restrictions. The moves come in the wake of a $1 billion fine and the effective freeze on operations as the company mulled a way forward without relying on products from U.S. businesses like Google and Qualcomm.

In that time, ZTE has lost billions, and grappled with other…inconveniences. Of course, even with these changes, the company isn’t out of the woods just yet. In addition to on-going financial issues, security and other concerns could be enough to put consumers in the U.S. and other countries off the company altogether.


Source: Tech Crunch

VW plans to launch an all-electric car sharing service next year

Volkswagen Group is launching a car-sharing service called WE that only uses electric vehicles, following the lead of rivals such as Daimler and BMW that have operated their own on-demand car rental services for years.

VW’s car-sharing service will launch in Germany next year and then expand to major cities in Europe, North America and Asia beginning in 2020. The entire fleet will be electric vehicles, VW Group said Wednesday.

“We are convinced that the car sharing market still has potential,” Jürgen Stackmann, Volkswagen’s board member for sales said in a statement. “That is why we are entering this market with a holistic single-source concept covering all mobility needs from the short journey that takes just a few minutes to the long vacation trip.”

The German automaker’s WE business is designed to do more than car-sharing. The WE vehicle-on-demand platform will initially focus on car sharing. But eventually it will include other modes of transportation such as scooters.

Volkswagen showed off two electric concepts in March, an e-scooter it calls the Streetmate and Cityskater, which the company describes as a “last-mile electric street surfer.” Volkswagen sees the WE platform helping connect customers to car-sharing service, rent one of these micro-mobility vehicles, or even pay for parking.

Volkswagen introduced these mobility concepts in March 2018. The Streetmate, on the left, and Cityskater.

The automaker also sees the WE platform connecting to MOIA, the automaker’s mobility company that has launched a ride-sharing service with an all-electric shuttle vehicle. The all-electric car, which made its debut at TechCrunch Disrupt Berlin in December, is designed to provide space for up to six passengers.

The vehicle-on-demand services available on the Volkswagen WE platform will be managed by UMI Urban Mobility International, a subsidiary of Volkswagen AG that began operating in 2018.


Source: Tech Crunch

Deliveroo opens its first shared kitchen in Paris

Food delivery startup Deliveroo opened its first shared kitchen in Paris earlier today. Deliveroo first launched this concept of shared kitchens called Deliveroo Editions in London last year.

As the AFP reports, the company is starting with 12 kitchens in a warehouse in Saint-Ouen, right next to the north-western part of Paris. So far, 8 restaurants have agreed to make a deal with Deliveroo.

You’ll find top restaurants on Deliveroo, such as Blend, Petit Cambodge, Tripletta and Santosha. Restaurants can choose to pay a rent or get started for free and pay higher fees.

Deliveroo customers currently pay €2.50 per order for the delivery in Paris. But the company also gets a cut of the total order amount — customers don’t realize that Deliveroo gets a cut from both sides. It can be as much as 25 or 30 percent of what you order. It’s unclear how much Deliveroo is asking for those new kitchens.

But it makes sense for restaurants that can’t expand indefinitely. Deliveroo lets you accept orders without any additional table.

Gérard Julien / AFP / Getty Images

While there are multiple Blend or Petit Cambodge restaurants in Paris, they can’t deliver everywhere around the city. But opening a new restaurant also represents a huge investment.

That’s why those Deliveroo kitchens can be a good compromise. You can hire a handful of people and see if there’s enough demand in the area. It’s also a good way to differentiate Deliveroo from UberEats and other compatitors.

This is the first site in France. Let’s see if it gets out of control like in the U.K. The Guardian reported that Deliveroo Editions are now tiny containers with no window on car parks. It gets hot in the summer, cold in the winter, and you can hear a ton of mopeds getting orders from those metal boxes.

Deliveroo first started with the idea of helping regular restaurants accept online orders — not just pizza places with existing delivery persons. But containers on a car park don’t sound as attractive.

Gérard Julien / AFP / Getty Images


Source: Tech Crunch

Draper Esprit invests in and partners with German VC Earlybird

Draper Esprit, the publicly-listed VC firm based in London, is putting down further roots across Europe in cooperation with German VC Earlybird.

The “strategic partnership” sees Draper invest an initial €18 million in the latest Earlybird Fund VI (which closed this week at €175 million, above its initial target, apparently), with a commitment to invest a further €17 million or so per annum over the next four years.

The tie up will also mean the two VCs will work together beyond Draper simply being an LP in Earlybird, such as sharing deal-flow and investment resources. In addition, Draper is taking a minority stake in the management company of Earlybird Fund VI via the issuing of new Draper Esprit shares to Earlybird partners.

By putting money into Earlybird Fund VI, Draper has also indirectly acquired a minority stake in a number of startups that have already received investment from the fund. They include Shapeshift, Everoad, Movinga, Fraugster, Medidate, Xain, and Crossengage.

However, explained Draper Esprit CEO and co-founder Simon Cook in a call this morning, the partnership is really about the two firm’s leveraging the brand recognition of their broader and respective portfolios.

In aggregate, both firms say they count 100 “high growth” companies across Europe in their respective portfolios. They include the likes of Revolut, Graze, UI Path, N26, Transferwise, Ledger, Graphcore and Peak Games.

Meanwhile, in a European VC market where almost every local early-stage VC is becoming “pan-European,” the two firms met to discuss how they might work together. As the conversation progressed, it became clear that a more formal partnership fitted the ambitions of both VCs as they both attempt to have a larger presence across the continent.

In a corresponding blog post, Draper Esprit reiterates that it invests in series A, B and beyond, whereas Earlybird is focused on seed stage to series A. So, whilst there is some overlap, it won’t be hard for the two firms to divvy up deals and Cook told me Draper Esprit will share all relevant deal-flow with Earlybird and where it makes sense a partner at either firm will take the lead.

Draper Esprit is already an investor/LP in a number of other European early-stage funds, including pre-seed and seed investor Seedcamp, and Episode 1.

“We invest from offices in the U.K., Ireland, and Paris. They, from Berlin, Munich, Istanbul. We raise money via the public markets and through our EIS and VCT funds, they from traditional private LPs,” adds the VC firm.


Source: Tech Crunch

ISAI closes new $175 million fund

French venture capital firm ISAI just raised a new $175 million fund (€150 million) called ISAI Expansion II. This fund is designed for later stage investments.

The firm says that it managed to raise this fund in less than three months. This is a growth fund and the team plans to invest between $6 million and $35 million per deal (between €5 million and €30 million).

ISAI first started with a seed fund back in 2010. The company raised a $41 million fund (€35 million) and invested in BlaBlaCar shortly after that. The firm has raised a growth fund and another seed fund since then.

If you include today’s new fund, ISAI has raised over $350 million in total (€300 million). So ISAI Expansion II is by far the biggest fund to date.

Limited partners include dozens of successful tech entrepreneurs as well as institutional partners. Many existing investors invested once again in ISAI’s new fund. Some entrepreneurs joined the list for the first time.

With the previous ISAI Expansion fund, the firm invested in nine companies over five years. And ISAI already sold its shares in two companies, Hospimedia and Labelium.

ISAI also says that it can help entrepreneurs using owner buy-out transactions. By creating a holding company, this type of operations lets entrepreneurs cash out, buy shares from existing minor investors and work with a new investor.

More interestingly, ISAI doesn’t necessarily want to focus on Paris-based tech startups. The firm is also looking for investments in more traditional companies that aren’t yet taking advantage of digital opportunities.


Source: Tech Crunch

“Everyone is talking to everyone” — rideshare investor bypasses Uber-Careem rumor

Ride-hailing giant Uber is in talks over a possible merger with Middle East rival Careem, according to Bloomberg — citing three people familiar with the matter.

The report suggests various deal structures have been discussed, although it also says that no deal has been reached — nor may ever be reached, as discussions are ongoing and may not come to anything.

Bloomberg’s sources told it that Uber has said it would need to own more than half of the combined company, if not buy Careem outright.

Among the possible arrangements that have been discussed are for Careem’s current leaders to manage a new combined business, day to day, with potentially both brands being retained in local markets.

Another proposal would have Uber outright acquire Careem.

Bloomberg also reports that Dubai-based Careem is in talks with investors to raise $500 million, which it says could value the ride-hailing company at about $1.5BN. Careem is said to have held early talks with banks about a potential IPO in January.

Neither company has publicly confirmed any talks.

An Uber spokesman declined to comment when asked to confirm or deny talks with Careem.

While a Careem spokeswoman, Maha Abouelenein, told us: “We do not comment on rumors. Our focus remains to build the leading internet platform for the region, from the region. That means expanding to new markets and doubling down on our existing markets by adding new products and services to the platform. We are only getting started.”

Uber has been reconfiguring its global business for several years now, pulling out of South East Asia earlier this year after agreeing to sell its business to local rival Grab — while also taking a minority stake in the competitor.

And Uber did a similar exit deal with another rival — Didi — in China back in 2016.

Last year it also threw its lot in with Yandex.Taxi in Russia, with the pair combining efforts via a joint venture — albeit one which gave Yandex the majority share.

But Uber has been talking up its position and potential in the Middle East — with CEO Dara Khosrowshahi telling a conference in May that he believes it can be the “winning player” in the market, as well as in India and Africa, and vowing it would “control our own destiny” in those markets.

That does not necessary take a Careem-Uber deal off the table, of course, though the (public) claim from Uber is that it’s not willing to settle for a minority stake in the region, as it has elsewhere.

Responding in April to a question from CNBC about whether it might acquire Careem, Uber’s COO Barney Harford ruled out doing any more transactions for minority stakes, saying: “It would be crazy for us as a hypergrowth company to not engage in conversations about potential partnerships. But we’ve been very clear, the markets that we remain in today are core markets for us.”

Harford also claimed Uber was positioned to be able to invest in its chosen growth markets on “an indefinite basis”, thanks to having reached profitability in other markets. It’s also targeting 2019 for an IPO.

In March the Financial Times reported that Uber was in talks with Indian rival Ola over another possible merger — and the newspaper’s sources poured cold water on the notion of Uber taking a minority stake there too.

Of course Uber may not want to have to shrink its already retrenched global ambitions. But it may have to if it gets out-competed in its chosen plum markets.

Hence Careem’s chest-puffing talk about just getting started — provided it can convince its investors to screw their courage to the sticking place and stay on board for the ride.

Investors in Careem, which closed a $500M Series E round a year ago at a $1BN+ valuation, include Saudi-based VC Kingdom Holding, German automaker Daimler, and Japanese tech giant Rakuten — which reportedly led the Series E.

Oskar Mielczarek de la Miel, a managing partner at Rakuten Capital who leads on its mobility investments and is also a Careem board member, declined to comment on the rumors of Uber-Careem merger talks when we asked to chat.

But he was happy to talk up the broader opportunity that investors seen coming down the road for ridesharing, telling us: “If you look at the industry everyone is talking to everyone, and while consolidation is an obvious trend, it won’t be limited to the ridesharing players but draw other tech companies, OEMs and payment companies, to name a few.”

According to Careem’s website, the ride-hailing firm operates in 15 countries, mostly (but not only) across the Middle East, offering its services in around 80 cities in all.

While Uber’s website lists it being active in 15 cities in the Middle East and 15 in Africa.


Source: Tech Crunch

The hottest new space to disrupt is immigration

Tech CEOs and founders are disrupting everything from travel to food, to space, to sleep. Now it’s time to disrupt a process that so many of us have relied on to get where we are today: immigration. According to a study by the National Foundation for American Policy, immigrants have founded more than half of U.S. startup companies that are valued at more than one billion dollars.

With all that is happening around us, now is the time for entrepreneurs to use their playbook for disrupting markets and apply it to immigration as a space — not for a financial upside, but for a more social, human upside.

  • Turning a Problem Into an Opportunity

One of the most important lessons you learn as an entrepreneur is outlining the problem you are trying to solve and turning it into an opportunity.

Economists generally agree that immigration has net positive effects on both the sending and receiving countries. Contrary to popular belief, immigration doesn’t increase crime rates or take jobs awayfrom native workers. In fact, according to The Silicon Valley Competitiveness and Innovation Project Report, almost every major tech hub has more foreign-born workers than domestic ones.

Before solving a problem, we have to agree on the facts. Research shows that people in many western countries greatly overestimate the number of immigrants — in this case, Muslim immigrants — coming into their country. Misinformation makes it difficult to pursue effective solutions.

Source: The Guardian

There’s an opportunity to educate ourselves and instead highlight the economic and innovation opportunity that immigration offers. Immigrants provide access to more talent, more diverse thinking, and more creativity.

Dr. Adrian Furnham, a professor of psychology at University College London who studies immigrants and entrepreneurship said, “What I’ve found is that immigrants not only have the qualities that help any entrepreneurs succeed—including aggressiveness and creative thinking—but they get a big boost because many of the skills they picked up coping with a new world are transferable to the entrepreneurial world.”

  • Rebranding the Word “Immigrant”

Another important step in an entrepreneur’s playbook relates to changing perceptions. Airbnb, for example, had to challenge people’s assumption that opening their home to strangers was a dangerous and risky endeavor. Now, facilitating these types of interactions is an act of hospitality and the beginning of a friendship.

More and more recently, the word “immigrant” has become a bad word. We have the responsibility to rebrand it to mean maker not taker. Look at Hamdi Ulukaya, the Turkish immigrant who created the Chobani yogurt empire. He employs 3,000+ people and has given them ten percent of the shares in the company.

When people research the word “immigrant” online, they need to find Ulukaya’s story. They need to find images of successful, eloquent, and positive entrepreneurs and leaders. That’s why it’s so important to speak as immigrants. To tell the story of how we came here and the challenges we’ve had to overcome. It’s tempting to try to blend in, but we have to infuse the word “immigration” with more positive visuals.

The University of North Carolina at Greensboro (UNCG) established the Center for New North Carolinians (CNNC), with the aim of supporting refugees and immigrants living in the local community. CNNC piloted a STEM club program for female refugees and immigrants using littleBits’ electronic building blocks. Photos from the CNNC STEM Club, courtesy of littleBits

  • Taking [Commercial] Risks

In January 2017 when the Trump Administration’s travel ban was first implemented, littleBits posted a billboard in Times Square that said in English and Arabic: “We Invent the World We Want to Live In.” We wanted people to associate Arabic script with a positive, inclusive message. It was the first time I decided to speak to my background as an Arab and Muslim immigrant. The public response, the impact on our team culture, and the feeling of having stood up for what’s right made me bolder about using my platform to speak out.

That’s why, when the debate around immigration rose up again in response to family separation at the border, I knew I had to say something.

At littleBits, being from “another” place is a reality; we are a company built on diversity. We have close to 20 languages in the office, a multitude of religions, and about 20 percent of us have visas or green cards or were born in other countries. I myself know firsthand the struggle that immigrants face, I’ve had to flee my country of Lebanon three times for my own safety

So, last week I joined leaders from Facebook, Twitter, AirBnB, and Microsoft and I made my voice heard. I announced a donation program and wrote a blog post which opened with: “We at littleBits strive to separate politics from our work. But when something touches human rights, it is no longer about politics. It becomes about justice.”

And you know what? Like most things in America today, the reaction we received was polarizing. Some people said that speaking out was an “admirable move” and that it was clear we were focused on “making a big difference.” On the other hand, 27% of respondents explicitly told us they would be less likely to purchase littleBits products as a result of us speaking out. One loyal customer told us they would now “actively discourage” their children from buying or using our products. Another said they would “throw [their] Bits in the trash.”

And yet, I stand by our statement.

The business risks involved with speaking out are real. But to me, putting a flag in the ground is always worth it. One email, one blog post, one donation at a time, I protect the diversity of my team, my company, and the country in which I reside. History will judge us if we quietly allow our government to strip us of the diversity and innovation that make America so amazing.

As entrepreneurs, we have a platform. Despite the potential costs, we must use this platform to put ourselves out there, to speak out the issues that matter to our country, our businesses, and ourselves. There may be financial downside and yes, it will be more difficult to quantify the human upside, but I for one am willing to take a gamble that net net, it will be a positive.


Source: Tech Crunch