Samsung is ditching plastic packaging

Samsung Electronics said Sunday it will replace plastic packaging used for its bevy of products from mobile phones and tablets to home appliances and wearables with paper and other environmentally sustainable materials like recycled/bio-based plastics.

Samsung will start making the switch in the first half of the year. The company aims to only use paper packaging materials certified by forestry initiatives by next year. By 2030, Samsung says it plans to use 500,000 tons of recycled plastics and collect 7.5 million tons of discarded products (both cumulative from 2009).

The company said it’s formed an internal task force to come up with innovative packaging ideas that avoid plastic.

For instance, the plastic trays used to hold mobile phones and tablets will be replaced with ones made from pulp. Samsung said it will also alter the phone charger design, swapping the glossy exterior with a matte finish and eliminating plastic protection films, reducing the use of plastics.

Plastic bags used to protect the surface of home appliances such as TVs, refrigerators, air conditioners and washing machines as well as other kitchen appliances will also be replaced with bags containing recycled materials and bioplastics. Bioplastics are made from plastic wastes and non-fossil fuel materials like starch or sugar cane.

The company also committed to only using fiber materials certified by global environmental organizations like the Forest Stewardship Council, Programme for the Endorsement of Forest Certification Scheme and the Sustainable Forestry Initiative for packaging and manuals by 2020.

The company will adopt more environmentally sustainable materials even if it means an increase in cost,” Gyeong-bin Jeon, head of Samsung’s Global Customer Satisfaction Center, said in a statement.


Source: Tech Crunch

BMW, Porsche, Jaguar Land Rover invest in roadside assistance startup Urgently

Urgently, the roadside assistance startup that connects car owners who need help with tow truck and other services, has raised $21 million in a Series B round that includes the venture arms of BMW, Porsche and Jaguar Land Rover.

BMW has also signed Urgently as a vendor partner for its own roadside assistance platform (known as BMW Assist) to provide roadside assistance and extended mobility services to owners of all four of its brands in the U.S, including BMW, BMW Motorrad, MINI and Rolls-Royce Motor Cars.

Urgently, founded by Chris Spanos, Surendra Goel, and Luke Kathol, doesn’t charge annual membership fees like AAA or other auto clubs. Instead, the app works a lot like Uber of Lyft . Users can request help like getting a jump start, a tow or tire change via the app, which connects them with available services nearby. At that time, the user is shown what the towing or other service fee will be. Payments are handled within the app.

The potential for Urgently goes beyond connecting with traditional car owners. The platform is scalable, making it attractive for companies that have large fleets too. And as more electric vehicles come to market, there may be more demand for roadside assistance services like mobile charging.

“The old model of roadside assistance must make way for a modern, more digital approach,” Kasper Sage, a partner at BMW i Ventures said. “Urgent.ly will allow OEMs around the world to provide their customers the kind of real-time and connected digital experience they now expect in everything from food delivery to ride-sharing.”


Source: Tech Crunch

Too few cybersecurity professionals is a gigantic problem for 2019

As the new year begins gaining steam, there is ostensibly a piece of good news on the cyber front. Major cyber attacks have been in a lull in recent months and still are.

The good tidings are fleeting, however. Attacks typically come in waves. The next one is due, and 2019 will be the worst year yet — a sad reality as companies increasingly pursue digitization to drive efficiency and simultaneously move into the “target zone” of cyberattacks.

This bad news is compounded by the harsh reality that there are not nearly enough cybersecurity pros to properly respond to all the threats.

The technology industry has never seen anything quite like it. Seasoned cyber pros typically earn $95,000 a year, often markedly more, and yet job openings can linger almost indefinitely. The ever-leaner cybersecurity workforce makes many companies desperate for help.

Between September 2017 and August 2018, U.S. employers posted nearly 314,000 jobs for cybersecurity pros. If they could be filled, that would boost the country’s current cyber workforce of 714,000 by more than 40%, according to the National Initiative for Cybersecurity Education. In light of the need, this is still the equivalent of pocket change.

Towfiqu Photography via Getty Images

Global Gap of Nearly 3 Million Cybersecurity Positions

In a recent study, (ISC)2 – the world’s largest nonprofit association of certified cybersecurity pros – said there is now a gap of almost 3 million cybersecurity jobs globally – substantially more than other experts said might be the case years into the future.

Companies are trying to cope in part by relying more aggressively on artificial intelligence and machine learning, but this is still at a relatively nascent stage and can never do more than mitigate the problem. Big companies have their hands full, and it’s even worse for smaller enterprises. They’re attacked more — sometimes as a conduit to their larger business partners – because their defenses are weaker.

So what kind of cyber talent are companies and government entities looking for?

Preferably, they want people with a bachelor’s degree in programming, computer science or computer engineering. They also warm up to an academic background replete with courses in statistics and math. They want cybersecurity certifications as well, and, of course, experience in specialties plagued by staffing shortages, such as intrusion detection, secure software development and network monitoring.

These are ideal candidates, but, in fact, the backgrounds of budding cyber pros need not be nearly this good.

Only Recently Has Formal Training Existed

Cybersecurity has long been a field that has embraced people with nontraditional backgrounds. Almost no cybersecurity pro over 30 today has a degree in cybersecurity and many don’t even have degrees in computer science. Professionals need some training to become familiar with select tools and technologies – usually at a community college or boot camp — but even more they need curiosity, knowledge of the current threat landscape and a strong passion for learning and research. Particularly strong candidates have backgrounds as programmers, systems administrators and network engineers.

Asking too much from prospective pros isn’t the only reason behind the severe cyber manpower shortage. In general, corporations do too little to help their cyber staffs stay technically current and even less when it comes to helping their IT staffs  pitch in.

(ISC) 2 formalized a study of more than 3,300 IT professionals less than 18 months ago and learned that organizations aren’t doing enough to properly equip and power their IT staffs with the education and authority to bolster their implementation of security technologies.

Inadequate Corporate Cyber Training

One key finding was that 43% of those polled said their organization provides inadequate security training resources, heightening the possibility of a breach.

Universities suffer shortcoming as well. Roughly 85 of them offer undergraduate and/or graduate degrees in cybersecurity. There is a big catch, however.  Far more diversified computer science programs, which attract substantially more students, don’t mandate even one cybersecurity course.

Fortunately, positive developments are popping up on other fronts. Select states have begun taking steps to help organizations and individuals alleviate a talent shortage by building information sharing hubs for local businesses, government and academia — all revolving around workforce development.

Georgia recently invested more than $100 million in a new cybersecurity center. A similar facility in Colorado, among other things, is working with area colleges and universities on educational programs for using the next generation of technology. Other states have begun following in their wake.

On another front, there is discussion about a Cybersecurity Peace Corps. The model would be similar to the original Peace Corps but specific to nascent cybersecurity jobs. The proposed program — which would require an act of Congress and does not yet exist — would place interested workers with nonprofits and other organizations that could not otherwise afford them and pay for their salaries and training.

Cyber Boot Camps and Community College Programs

Much further along are cyber boot camps and community college cybersecurity programs. The boot camps accept non-programmers, train them in key skills and help them land jobs. Established boot camps that have placed graduates in cyber jobs include Securest Academy in Denver, Open Cloud Academy in San Antonio and Evolve Security Academy in Chicago.

There are also more than a dozen two-year college cybersecurity programs scattered across the country. A hybrid between a boot camp and community college program is the City Colleges of Chicago (CCC), which partners with the Department of Defense on a free cybersecurity training program for active military service members.

A small handful of technology giants have also stepped into the fray. IBM, for example, creates what it calls “new collar” jobs, which prioritize skills, knowledge and willingness to learn over degrees. Workers pick up their skills through on-the-job training, industry certifications and community college courses and represent 20% of Big Blue cybersecurity hires since 2015.

Technology companies still must work much harder to broaden their range of potential candidates, seeking smart, motivated and dedicated individuals who would be good teammates. They can learn on the job, without degrees or certificates, and eventually fit in well. You can quibble with how much time, energy and work this might take. It’s clear, however, that there is no truly viable alternative.


Source: Tech Crunch

A simple data analysis disproves the argument for building a border wall

Sometimes the end justifies the means. Other times it clearly doesn’t. But in the new bizarro world that is the modern day U.S. political climate, increasingly the means has become the new end itself.

Currently taking center stage for this phenomenon is the now notorious border wall. President Trump is insisting we need a border wall; Democrats of course insisting we don’t.

The better question here might be a border wall for what end goal exactly? What problem is the wall supposed to solve and would it actually do the job? If you wade through the president’s soundbites and campaign rally chants around illegal immigration, the answer would seem to be we should erect a wall to deal with the growing crime and drug issues flooding into our nation at the hands of malicious illegal immigrants. The bad hombres if you will.

In fact, we’re told by the president that the invasion on our border has become such a dire issue that it’s a crisis worth shutting down the government over, leaving a trail of 800,000 American families as political pawns along the path of this game of chicken. But is there really a historic attack on our borders of would-be criminals looking to raid America?

During a recent trip to Rio Grande, Texas, which sits at the border of Mexico, the president remarked that we have never seen so many Border Patrol apprehensions “ever in our history.” Fortunately, for our dedicated border patrol agents, who incidentally under the shutdown are no longer getting paid, that statement is not at all true.

A look at the actual apprehension data from the Department of Homeland Security tells us just how rudely inaccurate the comment was. Turns out border apprehensions have fallen by a pretty staggering 76% from their peak of 1.67M back in 2000. In fact, the last several years have seen apprehension figures drop so significantly they now match levels not seen in nearly 50 years.

Driving the massive reduction in apprehensions back to early 1970’s levels were a few key changes: (1) A tripling of border patrol agents from around 6,000/7,000 levels in the late 90’s to north of 19,000, (2) investment in a “virtual fence” of mobile and fixed surveillance technologies (radar, drones, sensors, mobile and fixed cameras, night-vision goggles, etc.), which agents have called a “game changer,” and (3) some targeted fencing courtesy of the Secure Fence Act. These investments (along with an improving Mexican economy) seemed to have had the desired effect, driving down border apprehensions dramatically from their chaotic peak.

But, wouldn’t fewer apprehensions mean more illegal immigrants must be getting through the border? Why would lower apprehensions also mean lower “invasions” of illegal immigrants? Well, because intuition and the U.S. Customs and Border Protection (CBP) tells us so. According to the CBP website (which is a division of the Department of Homeland Security): “It may seem counterintuitive, but high apprehension numbers are evidence of a border out of control, where there are few barriers, real or perceived, to entry into the U.S. High apprehensions are seen as evidence of low deterrents to violate U.S. law.”

Further validation of this comes when you examine annual apprehensions per Border Patrol agent, per year. If we had just doubled or tripled agents and they were still being overwhelmed at the same rate they were in the 1990’s or early 2000’s, we might have a true national crisis on our hands. On the contrary, in 1993, Border Patrol agents averaged 313 apprehensions per agent during the year, but in 2017 that figure had plummeted to just 16 border apprehensions per agent. A 95% reduction we’ve likely never taken a moment to either recognize, or tie back to the previous border security investments that were made.

If apprehension data can be taken as a reasonable barometer for illegal immigration activity, and illegal immigration activity has dropped significantly over the last several years, then you might even expect to see a leveling off of the growth of undocumented immigrants already residing within the U.S. The most recent data from Pew Research (generally recognized as the best at tracking this) confirms just that, suggesting that the number of undocumented immigrants in the U.S. not only peaked around 2007, but seems to be in a gradual decline since then, dropping from 12.2M to 10.7M. This makes sense given the apprehension data above.

But even if illegal immigration is in significant decline, and the total number of undocumented immigrants living in the U.S. is also declining, then the goal of the wall must presumably be to keep out the abundance of murderers, rapists, and drug smugglers that the president has frequently reminded us are pouring across the border and committing crimes at alarming rates. The challenge here is that appears to also not be the case. Though the majority of heroin and other opioids abused by Americans do originate in Mexico, the president’s own Department of Justice confirmed in 2018 in a 164-page report that only a small percentage of these drugs are seized outside of legal Ports of Entry (e.g. via illegal immigrants), and that the majority comes into the country through legal Ports of Entry either in privately owned vehicles or on tractor trailers, where it’s typically mixed in with legal goods being trucked into the U.S.

Meanwhile, a 2018 study by the Cato Institute – not particularly known for being a bastion of Democratic party stances – examined criminal activity in the state of Texas based on immigration status. Turns out, not only are illegal immigrant arrest and conviction rates not higher than native-born Americans, they are appreciably lower. The below chart shows that conviction rates for crimes (includes homicides, sex crimes, and larceny) committed by illegal immigrants was about 50% lower than those of native-born Americans (as a % of their respective populations).

Looking at arrests instead of convictions yields a similar outcome, where total arrests of illegal immigrants for those same crimes were 40% lower than those native to the U.S.

In our current meme-driven culture, where many conservatives are quick to remind everyone that all lives matter, the irony should not be lost that that principle seems to step aside here for a disturbing fixation on anecdotal headline crimes from a group that actually looks to be a dramatically safer member of the community.

A couple decades ago we clearly had a border crisis. Illegal immigrants were pouring into the border and border patrol was overwhelmed trying to control the hemorrhaging. But the sustained reduction since then to early 1970’s levels is perhaps the rare example of the public sector actually helping address a problem.

Now if the stated goal was, for example, to get illegal immigration to as close to zero as possible because it otherwise (1) creates an undue economic burden on the country and/or (2) is an unfair jumping the line over those trying to enter legally, those are reasonable assertions that would potentially win over voters beyond the campaign choir. But that’s not the conversation coming out of the White House, probably because it’s difficult to build fiery bite-size campaign slogans and chants around “BUILD THE WALL TO FURTHER REDUCE ANNUAL AGENT APPREHENSIONS FROM 16 TO 0!” No doubt it’s a bit messy, and not nearly as frothy.

So if we don’t have a border invasion crisis…and existing undocumented immigrants seem to be both declining in numbers and a much safer part of the population…is the purpose of building a wall then really just to fulfill a campaign rally promise? It feels like the answer to that is yes.

Consequently, we end up left with a situation where we’ve actually done an encouraging about face on border security from the legitimate crisis of 18+ years ago – yet the repeatedly peddled need is to “build-the-wall.” But building the wall is undoubtedly not a well-reasoned means to some clear end, but rather the end goal itself, perpetually requiring the salesman to navigate the thin ridge between ignorant and dishonest cliffs.


Source: Tech Crunch

The new Two Minutes Hate

You see it first on Facebook or Twitter. Something contemptible: an image, or a video, or a tweet. One accompanied by a furious, snarky caption, highlighting just how awful and unacceptable it is, a dunk fueled by rage. The outrage rises within you. How can it not? You’re primed for outrage. We all are, now. Outrage grenades just waiting for our pins to be pulled.

Usually, if you dig down behind the outrage to its fuel, it’s because our most cherished beliefs, the ones with which we most strongly identify, are – maybe implicitly, maybe implicitly – being attacked.

It was a noise that set one’s teeth on edge and bristled the hair at the back of one’s neck. The Hate had started […] delivering his usual venomous attack upon the doctrines of the Party — an attack so exaggerated and perverse that a child should have been able to see through it, and yet just plausible enough to fill one with an alarmed feeling that other people, less level-headed than oneself, might be taken in by it.

It’s important to point out that this outrage is not caused by fake news. Sometimes, maybe, but not usually. The assholes out there are very real, and often their behavior is indeed hateful. Maybe they’re teenagers; maybe they’re politicians; maybe they’re celebrities; maybe they’re just randos catapulted into notoriety by today’s algorithmic tsunami.

Sure, you don’t have all the context. You never have all the context. But sometimes you don’t need all the context, and sometimes even when you have it, it only reinforces the cries of outrage and hate you see flying in from all sides, from your friends, from your acquaintances, endlessly retweeted and shared.

Before the Hate had proceeded for thirty seconds, uncontrollable exclamations of rage were breaking out from half the people in the room […] In its second minute the Hate rose to a frenzy. People were leaping up and down in their places and shouting at the tops of their voices in an effort to drown the maddening bleating voice […] The dark-haired girl behind Winston had begun crying out ‘Swine! Swine! Swine!’ and suddenly she picked up a heavy Newspeak dictionary and flung it at the screen.

Are these ephemerally prominent assholes truly the worst people on earth? Of course not. The worst people on earth tend to do their work quietly, or in remote corners of the planet, away from cameras. What matters about these assholes is that they’re emblematic. They become convenient representations of everything we despise. And because emblems aren’t human, they’re just 2-D cardboard cutouts, there’s no risk of any compassion undercutting our hate.

I’m not saying sympathy. Of course you shouldn’t sympathize with assholes. But sympathy and compassion are two very different things. Compassion is the aching recognition that everyone is as human as you, including people who do awful, hateful things, and that their lives too were dictated mostly by forces beyond their control.

But the dark magic of social media is that it strips all compassion from our outrage, as casually and automatically as it strips videos of context or images of EXIF data.

The horrible thing about the Two Minutes Hate was not that one was obliged to act a part, but, on the contrary, that it was impossible to avoid joining in. Within thirty seconds any pretense was always unnecessary. A hideous ecstasy of fear and vindictiveness, a desire to kill, to torture, to smash faces in with a sledge-hammer, seemed to flow through the whole group of people like an electric current, turning one even against one’s will into a grimacing, screaming lunatic. And yet the rage that one felt was an abstract, undirected emotion which could be switched from one object to another like the flame of a blowlamp.

Each wave of outrage is a little easier than the last, as the pathways of hate in our brain become greased, become smoothed, become automatic like muscle memory. Soon the assholes become unpersons, axiomatically and automatically unworthy of compassion. When you participate in the hate, you become a more hateful person yourself. Of course you don’t intend to. Of course you think yourself better than that, more righteous.

But there’s no disjoint between being more righteous and more hateful. On the contrary. Those two things are very closely correlated. In fact they feed back on one another in a virtuous cycle that grows into a tornado.

On the sixth day of Hate Week, after the processions, the speeches, the shouting, the singing, the banners, the posters, the films, the waxworks, the rolling of drums and squealing of trumpets, the tramp of marching feet, the grinding of the caterpillars of tanks, the roar of massed planes, the booming of guns–after six days of this, when the great orgasm was quivering to its climax […] at just this moment it had been announced that Oceania was not after all at war with Eurasia. Oceania was at war with Eastasia. Eurasia was an ally.

There was, of course, no admission that any change had taken place. Merely it became known, with extreme suddenness and everywhere at once, that Eastasia and not Eurasia was the enemy. […] At every few moments the fury of the crowd boiled over and the voice of the speaker was drowned by a wild beast-like roaring that rose uncontrollably from thousands of throats. The most savage yells of all came from the schoolchildren. […] The Hate continued exactly as before, except that the target had been changed.

I’m not suggesting that these tsunamis of online outrage are bad because their targets are invalid. Sometimes they are, but that’s not my point. My point is that participation in them is harmful — to you, and to us all — even though, maybe even especially when, its targets are completely valid.

It’s a weird and crazy and utopian notion, I know, but here’s an odd proposal. Maybe it’s too much to ask that you stop tweeting snd sharing your outrage and hate. But how about this: if you do participate, then for every ejaculation of fury, add another one, a balancing tweet, a quick thoughtful Facebook post, wherein you express some compassion — again, not sympathy, not agreement, but compassion — for someone with whom you bitterly disagree. You never know. It might become a habit.


Source: Tech Crunch

One-quarter of jobs are at ‘high-risk’ of being automated

No one will be entirely safe from automation in the future, but according to a new study out of the Brookings Institute, around 25 percent of U.S. jobs are at “high risk.” It’s a stark bit of foreshadowing in a job market that has yet to fully rebound.

Roles in transportation, food prep, production and office admin are among those at highest risk, with robotics and artificial intelligence threatening to automate in the neighborhood of 70 percent of tasks, according to the study. Activities involving processing, data collection and physical labor are, unsurprisingly, most at risk here.

Automation is expected to have an outsized impact in certain regions in the country, and among less well educated workers. Likewise, it’s expect to impact different segments of the population in different ways.

“Youth, and less educated workers, along with underrepresented groups all appear likely to face significantly more acute challenges from automation in the coming years,” according to the study. “Young workers and Hispanics will be especially exposed.”

There does seem to be a certain inevitability in all of this. And certainly we’ve seen versions of this scenario played out, decade after after. But local governments and industries can help brace for impact, by educating and developing skills among existing workers, says Brookings.


Source: Tech Crunch

The facts about Facebook

This is a critical reading of Facebook founder Mark Zuckerberg’s article in the WSJ on Thursday, also entitled The Facts About Facebook

Yes Mark, you’re right; Facebook turns 15 next month. What a long time you’ve been in the social media business! We’re curious as to whether you’ve also been keeping count of how many times you’ve been forced to apologize for breaching people’s trust or, well, otherwise royally messing up over the years.

It’s also true you weren’t setting out to build “a global company”. The predecessor to Facebook was a ‘hot or not’ game called ‘FaceMash’ that you hacked together while drinking beer in your Harvard dormroom. Your late night brainwave was to get fellow students to rate each others’ attractiveness — and you weren’t at all put off by not being in possession of the necessary photo data to do this. You just took it; hacking into the college’s online facebooks and grabbing people’s selfies without permission.

Blogging about what you were doing as you did it, you wrote: “I almost want to put some of these faces next to pictures of some farm animals and have people vote on which is more attractive.” Just in case there was any doubt as to the ugly nature of your intention. 

The seeds of Facebook’s global business were thus sewn in a crude and consentless game of clickbait whose idea titillated you so much you thought nothing of breaching security, privacy, copyright and decency norms just to grab a few eyeballs.

So while you may not have instantly understood how potent this ‘outrageous and divisive’ eyeball-grabbing content tactic would turn out to be — oh hai future global scale! — the core DNA of Facebook’s business sits in that frat boy discovery where your eureka Internet moment was finding you could win the attention jackpot by pitting people against each other.

Pretty quickly you also realized you could exploit and commercialize human one-upmanship — gotta catch em all friend lists! popularity poke wars! — and stick a badge on the resulting activity, dubbing it ‘social’.

FaceMash was antisocial, though. And the unpleasant flipside that can clearly flow from ‘social’ platforms is something you continue not being nearly honest nor open enough about. Whether it’s political disinformation, hate speech or bullying, the individual and societal impacts of maliciously minded content shared and amplified using massively mainstream tools you control is now impossible to ignore.

Yet you prefer to play down these human impacts; as a “crazy idea”, or by implying that ‘a little’ amplified human nastiness is the necessary cost of being in the big multinational business of connecting everyone and ‘socializing’ everything.

But did you ask the father of 14-year-old Molly Russell, a British schoolgirl who took her own life in 2017, whether he’s okay with your growth vs controls trade-off? “I have no doubt that Instagram helped kill my daughter,” said Russell in an interview with the BBC this week.

After her death, Molly’s parents found she had been following accounts on Instagram that were sharing graphic material related to self-harming and suicide, including some accounts that actively encourage people to cut themselves. “We didn’t know that anything like that could possibly exist on a platform like Instagram,” said Russell.

Without a human editor in the mix, your algorithmic recommendations are blind to risk and suffering. Built for global scale, they get on with the expansionist goal of maximizing clicks and views by serving more of the same sticky stuff. And more extreme versions of things users show an interest in to keep the eyeballs engaged.

So when you write about making services that “billions” of “people around the world love and use” forgive us for thinking that sounds horribly glib. The scales of suffering don’t sum like that. If your entertainment product has whipped up genocide anywhere in the world — as the UN said Facebook did in Myanmar — it’s failing regardless of the proportion of users who are having their time pleasantly wasted on and by Facebook.

And if your algorithms can’t incorporate basic checks and safeguards so they don’t accidentally encourage vulnerable teens to commit suicide you really don’t deserve to be in any consumer-facing business at all.

Yet your article shows no sign you’ve been reflecting on the kinds of human tragedies that don’t just play out on your platform but can be an emergent property of your targeting algorithms.

You focus instead on what you call “clear benefits to this business model”.

The benefits to Facebook’s business are certainly clear. You have the billions in quarterly revenue to stand that up. But what about the costs to the rest of us? Human costs are harder to quantify but you don’t even sound like you’re trying.

You do write that you’ve heard “many questions” about Facebook’s business model. Which is most certainly true but once again you’re playing down the level of political and societal concern about how your platform operates (and how you operate your platform) — deflecting and reframing what Facebook is to cast your ad business a form of quasi philanthropy; a comfortable discussion topic and self-serving idea you’d much prefer we were all sold on.

It’s also hard to shake the feeling that your phrasing at this point is intended as a bit of an in-joke for Facebook staffers — to smirk at the ‘dumb politicians’ who don’t even know how Facebook makes money.

Y’know, like you smirked…

Then you write that you want to explain how Facebook operates. But, thing is, you don’t explain — you distract, deflect, equivocate and mislead, which has been your business’ strategy through many months of scandal (that and worst tactics — such as paying a PR firm that used oppo research tactics to discredit Facebook critics with smears).

Dodging is another special power; such as how you dodged repeat requests from international parliamentarians to be held accountable for major data misuse and security breaches.

The Zuckerberg ‘open letter’ mansplain, which typically runs to thousands of blame-shifting words, is another standard issue production from the Facebook reputation crisis management toolbox.

And here you are again, ironically enough, mansplaining in a newspaper; an industry that your platform has worked keenly to gut and usurp, hungry to supplant editorially guided journalism with the moral vacuum of algorithmically geared space-filler which, left unchecked, has been shown, time and again, lifting divisive and damaging content into public view.

The latest Zuckerberg screed has nothing new to say. It’s pure spin. We’ve read scores of self-serving Facebook apologias over the years and can confirm Facebook’s founder has made a very tedious art of selling abject failure as some kind of heroic lack of perfection.

But the spin has been going on for far, far too long. Fifteen years, as you remind us. Yet given that hefty record it’s little wonder you’re moved to pen again — imagining that another word blast is all it’ll take for the silly politicians to fall in line.

Thing is, no one is asking Facebook for perfection, Mark. We’re looking for signs that you and your company have a moral compass. Because the opposite appears to be true. (Or as one UK parliamentarian put it to your CTO last year: “I remain to be convinced that your company has integrity”.)

Facebook has scaled to such an unprecedented, global size exactly because it has no editorial values. And you say again now you want to be all things to all men. Put another way that means there’s a moral vacuum sucking away at your platform’s core; a supermassive ethical blackhole that scales ad dollars by the billions because you won’t tie the kind of process knots necessary to treat humans like people, not pairs of eyeballs.

You don’t design against negative consequences or to pro-actively avoid terrible impacts — you let stuff happen and then send in the ‘trust & safety’ team once the damage has been done.

You might call designing against negative consequences a ‘growth bottleneck’; others would say it’s having a conscience.

Everything standing in the way of scaling Facebook’s usage is, under the Zuckerberg regime, collateral damage — hence the old mantra of ‘move fast and break things’ — whether it’s social cohesion, civic values or vulnerable individuals.

This is why it takes a celebrity defamation lawsuit to force your company to dribble a little more resource into doing something about scores of professional scammers paying you to pop their fraudulent schemes in a Facebook “ads” wrapper. (Albeit, you’re only taking some action in the UK in this particular case.)

Funnily enough — though it’s not at all funny and it doesn’t surprise us — Facebook is far slower and patchier when it comes to fixing things it broke.

Of course there will always be people who thrive with a digital megaphone like Facebook thrust in their hand. Scammers being a pertinent example. But the measure of a civilized society is how it protects those who can’t defend themselves from targeted attacks or scams because they lack the protective wrap of privilege. Which means people who aren’t famous. Not public figures like Martin Lewis, the consumer champion who has his own platform and enough financial resources to file a lawsuit to try to make Facebook do something about how its platform supercharges scammers.

Zuckerberg’s slippery call to ‘fight bad content with more content’ — or to fight Facebook-fuelled societal division by shifting even more of the apparatus of civic society onto Facebook — fails entirely to recognize this asymmetry.

And even in the Lewis case, Facebook remains a winner; Lewis dropped his suit and Facebook got to make a big show of signing over £500k worth of ad credit coupons to a consumer charity that will end up giving them right back to Facebook.

The company’s response to problems its platform creates is to look the other way until a trigger point of enough bad publicity gets reached. At which critical point it flips the usual crisis PR switch and sends in a few token clean up teams — who scrub a tiny proportion of terrible content; or take down a tiny number of fake accounts; or indeed make a few token and heavily publicized gestures — before leaning heavily on civil society (and on users) to take the real strain.

You might think Facebook reaching out to respected external institutions is a positive step. A sign of a maturing mindset and a shift towards taking greater responsibility for platform impacts. (And in the case of scam ads in the UK it’s donating £3M in cash and ad credits to a bona fide consumer advice charity.)

But this is still Facebook dumping problems of its making on an already under-resourced and over-worked civic sector at the same time as its platform supersizes their workload.

In recent years the company has also made a big show of getting involved with third party fact checking organizations across various markets — using these independents to stencil in a PR strategy for ‘fighting fake news’ that also entails Facebook offloading the lion’s share of the work. (It’s not paying fact checkers anything, given the clear conflict that would represent it obviously can’t).

So again external organizations are being looped into Facebook’s mess — in this case to try to drain the swamp of fakes being fenced and amplified on its platform — even as the scale of the task remains hopeless, and all sorts of junk continues to flood into and pollute the public sphere.

What’s clear is that none of these organizations has the scale or the resources to fix problems Facebook’s platform creates. Yet it serves Facebook’s purposes to be able to point to them trying.

And all the while Zuckerberg is hard at work fighting to fend off regulation that could force his company to take far more care and spend far more of its own resources (and profits) monitoring the content it monetizes by putting it in front of eyeballs.

The Facebook founder is fighting because he knows his platform is a targeted attack; On individual attention, via privacy-hostile behaviorally targeted ads (his euphemism for this is “relevant ads”); on social cohesion, via divisive algorithms that drive outrage in order to maximize platform engagement; and on democratic institutions and norms, by systematically eroding consensus and the potential for compromise between the different groups that every society is comprised of.

In his WSJ post Zuckerberg can only claim Facebook doesn’t “leave harmful or divisive content up”. He has no defence against Facebook having put it up and enabled it to spread in the first place.

Sociopaths relish having a soapbox so unsurprisingly these people find a wonderful home on Facebook. But where does empathy fit into the antisocial media equation?

As for Facebook being a ‘free’ service — a point Zuckerberg is most keen to impress in his WSJ post — it’s of course a cliché to point out that ‘if it’s free you’re the product’. (Or as the even older saying goes: ‘There’s no such thing as a free lunch’).

But for the avoidance of doubt, “free” access does not mean cost-free access. And in Facebook’s case the cost is both individual (to your attention and your privacy); and collective (to the public’s attention and to social cohesion).

The much bigger question is who actually benefits if “everyone” is on Facebook, as Zuckerberg would prefer. Facebook isn’t the Internet. Facebook doesn’t offer the sole means of communication, digital or otherwise. People can, and do, ‘connect’ (if you want to use such a transactional word for human relations) just fine without Facebook.

So beware the hard and self-serving sell in which Facebook’s 15-year founder seeks yet again to recast privacy as an unaffordable luxury.

Actually, Mark, it’s a fundamental human right.

The best argument Zuckerberg can muster for his goal of universal Facebook usage being good for anything other than his own business’ bottom line is to suggest small businesses could use that kind of absolute reach to drive extra growth of their own.

Though he only provides a few general data-points to support the claim; saying there are “more than 90M small businesses on Facebook” which “make up a large part of our business” (how large?) — and claiming “most” (51%?) couldn’t afford TV ads or billboards (might they be able to afford other online or newspaper ads though?); he also cites a “global survey” (how many businesses surveyed?), presumably run by Facebook itself, which he says found “half the businesses on Facebook say they’ve hired more people since they joined” (but how did you ask the question, Mark?; we’re concerned it might have been rather leading), and from there he leaps to the implied conclusion that “millions” of jobs have essentially been created by Facebook.

But did you control for common causes Mark? Or are you just trying to take credit for others’ hard work because, well, it’s politically advantageous for you to do so?

Whether Facebook’s claims about being great for small business stand up to scrutiny or not, if people’s fundamental rights are being wholesale flipped for SMEs to make a few extra bucks that’s an unacceptable trade off.

“Millions” of jobs suggestively linked to Facebook sure sounds great — but you can’t and shouldn’t overlook disproportionate individual and societal costs, as Zuckerberg is urging policymakers to here.

Let’s also not forget that some of the small business ‘jobs’ that Facebook’s platform can take definitive and major credit for creating include the Macedonia teens who became hyper-adept at seeding Facebook with fake U.S. political news, around the 2016 presidential election. But presumably those aren’t the kind of jobs Zuckerberg is advocating for.

He also repeats the spurious claim that Facebook gives users “complete control” over what it does with personal information collected for advertising.

We’ve heard this time and time again from Zuckerberg and yet it remains pure BS.

WASHINGTON, DC – APRIL 10: Facebook co-founder, Chairman and CEO Mark Zuckerberg concludes his testimony before a combined Senate Judiciary and Commerce committee hearing in the Hart Senate Office Building on Capitol Hill April 10, 2018 in Washington, DC. Zuckerberg, 33, was called to testify after it was reported that 87 million Facebook users had their personal information harvested by Cambridge Analytica, a British political consulting firm linked to the Trump campaign. (Photo by Win McNamee/Getty Images)

Yo Mark! First up we’re still waiting for your much trumpeted ‘Clear History’ tool. You know, the one you claimed you thought of under questioning in Congress last year (and later used to fend off follow up questions in the European Parliament).

Reportedly the tool is due this Spring. But even when it does finally drop it represents another classic piece of gaslighting by Facebook, given how it seeks to normalize (and so enable) the platform’s pervasive abuse of its users’ data.

Truth is, there is no master ‘off’ switch for Facebook’s ongoing surveillance. Such a switch — were it to exist — would represent a genuine control for users. But Zuckerberg isn’t offering it.

Instead his company continues to groom users into accepting being creeped on by offering pantomime settings that boil down to little more than privacy theatre — if they even realize they’re there.

‘Hit the button! Reset cookies! Delete browsing history! Keep playing Facebook!’

An interstitial reset is clearly also a dilute decoy. It’s not the same as being able to erase all extracted insights Facebook’s infrastructure continuously mines from users, using these derivatives to target people with behavioral ads; tracking and profiling on an ongoing basis by creeping on browsing activity (on and off Facebook), and also by buying third party data on its users from brokers.

Multiple signals and inferences are used to flesh out individual ad profiles on an ongoing basis, meaning the files are never static. And there’s simply no way to tell Facebook to burn your digital ad mannequin. Not even if you delete your Facebook account.

Nor, indeed, is there a way to get a complete read out from Facebook on all the data it’s attached to your identity. Even in Europe, where companies are subject to strict privacy laws that place a legal requirement on data controllers to disclose all personal data they hold on a person on request, as well as who they’re sharing it with, for what purposes, under what legal grounds.

Last year Paul-Olivier Dehaye, the founder of PersonalData.IO, a startup that aims to help people control how their personal data is accessed by companies, recounted in the UK parliament how he’d spent years trying to obtain all his personal information from Facebook — with the company resorting to legal arguments to block his subject access request.

Dehaye said he had succeeded in extracting a bit more of his data from Facebook than it initially handed over. But it was still just a “snapshot”, not an exhaustive list, of all the advertisers who Facebook had shared his data with. This glimpsed tip implies a staggeringly massive personal data iceberg lurking beneath the surface of each and every one of the 2.2BN+ Facebook users. (Though the figure is likely even more massive because it tracks non-users too.)

Zuckerberg’s “complete control” wording is therefore at best self-serving and at worst an outright lie. Facebook’s business has complete control of users by offering only a superficial layer of confusing and fiddly, ever-shifting controls that demand continued presence on the platform to use them, and ongoing effort to keep on top of settings changes (which are always, to a fault, privacy hostile), making managing your personal data a life-long chore.

Facebook’s power dynamic puts the onus squarely on the user to keep finding and hitting reset button.

But this too is a distraction. Resetting anything on its platform is largely futile, given Facebook retains whatever behavioral insights it already stripped off of your data (and fed to its profiling machinery). And its omnipresent background snooping carries on unchecked, amassing fresh insights you also can’t clear.

Nor does Clear History offer any control for the non-users Facebook tracks via the pixels and social plug-ins it’s larded around the mainstream web. Zuckerberg was asked about so-called shadow profiles in Congress last year — which led to this awkward exchange where he claimed not to know what the phrase refers to.

EU MEPs also seized on the issue, pushing him to respond. He did so by attempting to conflate surveillance and security — by claiming it’s necessary for Facebook to hold this data to keep “bad content out”. Which seems a bit of an ill-advised argument to make given how badly that mission is generally going for Facebook.

Still, Zuckerberg repeats the claim in the WSJ post, saying information collected for ads is “generally important for security and operating our services” — using this to address what he couches as “the important question of whether the advertising model encourages companies like ours to use and store more information than we otherwise would”.

So, essentially, Facebook’s founder is saying that the price for Facebook’s existence is pervasive surveillance of everyone, everywhere, with or without your permission.

Though he doesn’t express that ‘fact’ as a cost of his “free” platform. RIP privacy indeed.

Another pertinent example of Zuckerberg simply not telling the truth when he wrongly claims Facebook users can control their information vis-a-vis his ad business — an example which also happens to underline how pernicious his attempts to use “security” to justify eroding privacy really are — bubbled into view last fall, when Facebook finally confessed that mobile phone numbers users had provided for the specific purpose of enabling two-factor authentication (2FA) to increase the security of their accounts were also used by Facebook for ad targeting.

A company spokesperson told us that if a user wanted to opt out of the ad-based repurposing of their mobile phone data they could use non-phone number based 2FA — though Facebook only added the ability to use an app for 2FA in May last year.

What Facebook is doing on the security front is especially disingenuous BS in that it risks undermining security practice by bundling a respected tool (2FA) with ads that creep on people.

And there’s plenty more of this kind of disingenuous nonsense in Zuckerberg’s WSJ post — where he repeats a claim we first heard him utter last May, at a conference in Paris, when he suggested that following changes made to Facebook’s consent flow, ahead of updated privacy rules coming into force in Europe, the fact European users had (mostly) swallowed the new terms, rather than deleting their accounts en masse, was a sign people were majority approving of “more relevant” (i.e more creepy) Facebook ads.

Au contraire, it shows nothing of the sort. It simply underlines the fact Facebook still does not offer users a free and fair choice when it comes to consenting to their personal data being processed for behaviorally targeted ads — despite free choice being a requirement under Europe’s General Data Protection Regulation (GDPR).

If Facebook users are forced to ‘choose’ between being creeped on or deleting their account on the dominant social service where all their friends are it’s hardly a free choice. (And GDPR complaints have been filed over this exact issue of ‘forced consent‘.)

Add to that, as we said at the time, Facebook’s GDPR tweaks were lousy with manipulative, dark pattern design. So again the company is leaning on users to get the outcomes it wants.

It’s not a fair fight, any which way you look at it. But here we have Zuckerberg, the BS salesman, trying to claim his platform’s ongoing manipulation of people already enmeshed in the network is evidence for people wanting creepy ads.

darkened facebook logo

The truth is that most Facebook users remain unaware of how extensively the company creeps on them (per this recent Pew research). And fiddly controls are of course even harder to get a handle on if you’re sitting in the dark.

Zuckerberg appears to concede a little ground on the transparency and control point when he writes that: “Ultimately, I believe the most important principles around data are transparency, choice and control.” But all the privacy-hostile choices he’s made; and the faux controls he’s offered; and the data mountain he simply won’t ‘fess up to sitting on shows, beyond reasonable doubt, the company cannot and will not self-regulate.

If Facebook is allowed to continue setting its own parameters and choosing its own definitions (for “transparency, choice and control”) users won’t have even one of the three principles, let alone the full house, as well they should. Facebook will just keep moving the goalposts and marking its own homework.

You can see this in the way Zuckerberg fuzzes and elides what his company really does with people’s data; and how he muddies and muddles uses for the data — such as by saying he doesn’t know what shadow profiles are; or claiming users can download ‘all their data’; or that ad profiles are somehow essential for security; or by repurposing 2FA digits to personalize ads too.

How do you try to prevent the purpose limitation principle being applied to regulate your surveillance-reliant big data ad business? Why by mixing the data streams of course! And then trying to sew confusion among regulators and policymakers by forcing them to unpick your mess.

Much like Facebook is forcing civic society to clean up its messy antisocial impacts.

Europe’s GDPR is focusing the conversation, though, and targeted complaints filed under the bloc’s new privacy regime have shown they can have teeth and so bite back against rights incursions.

But before we put another self-serving Zuckerberg screed to rest, let’s take a final look at his description of how Facebook’s ad business works. Because this is also seriously misleading. And cuts to the very heart of the “transparency, choice and control” issue he’s quite right is central to the personal data debate. (He just wants to get to define what each of those words means.)

In the article, Zuckerberg claims “people consistently tell us that if they’re going to see ads, they want them to be relevant”. But who are these “people” of which he speaks? If he’s referring to the aforementioned European Facebook users, who accepted updated terms with the same horribly creepy ads because he didn’t offer them any alternative, we would suggest that’s not a very affirmative signal.

Now if it were true that a generic group of ‘Internet people’ were consistently saying anything about online ads the loudest message would most likely be that they don’t like them. Click through rates are fantastically small. And hence also lots of people using ad blocking tools. (Growth in usage of ad blockers has also occurred in parallel with the increasing incursions of the adtech industrial surveillance complex.)

So Zuckerberg’s logical leap to claim users of free services want to be shown only the most creepy ads is really a very odd one.

Let’s now turn to Zuckerberg’s use of the word “relevant”. As we noted above, this is a euphemism. It conflates many concepts but principally it’s used by Facebook as a cloak to shield and obscure the reality of what it’s actually doing (i.e. privacy-hostile people profiling to power intrusive, behaviourally microtargeted ads) in order to avoid scrutiny of exactly those creepy and intrusive Facebook practices.

Yet the real sleight of hand is how Zuckerberg glosses over the fact that ads can be relevant without being creepy. Because ads can be contextual. They don’t have to be behaviorally targeted.

Ads can be based on — for example — a real-time search/action plus a user’s general location. Without needing to operate a vast, all-pervasive privacy-busting tracking infrastructure to feed open-ended surveillance dossiers on what everyone does online, as Facebook chooses to.

And here Zuckerberg gets really disingenuous because he uses a benign-sounding example of a contextual ad (the example he chooses contains an interest and a general location) to gloss over a detail-light explanation of how Facebook’s people tracking and profiling apparatus works.

“Based on what pages people like, what they click on, and other signals, we create categories — for example, people who like pages about gardening and live in Spain — and then charge advertisers to show ads to that category,” he writes, with that slipped in reference to “other signals” doing some careful shielding work there.

Other categories that Facebook’s algorithms have been found ready and willing to accept payment to run ads against in recent years include “jew-hater”, “How to burn Jews” and “Hitler did nothing wrong”.

Funnily enough Zuckerberg doesn’t mention those actual Facebook microtargeting categories in his glossy explainer of how its “relevant” ads business works. But they offer a far truer glimpse of the kinds of labels Facebook’s business sticks on people.

As we wrote last week, the case against behavioral ads is stacking up. Zuckerberg’s attempt to spin the same self-serving lines should really fool no one at this point.

Nor should regulators be derailed by the lie that Facebook’s creepy business model is the only version of adtech possible. It’s not even the only version of profitable adtech currently available. (Contextual ads have made Google alternative search engine DuckDuckGo profitable since 2014, for example.)

Simply put, adtech doesn’t have to be creepy to work. And ads that don’t creep on people would give publishers greater ammunition to sell ad block using readers on whitelisting their websites. A new generation of people-sensitive startups are also busy working on new forms of ad targeting that bake in privacy by design.

And with legal and regulatory risk rising, intrusive and creepy adtech that demands the equivalent of ongoing strip searches of every Internet user on the planet really look to be on borrowed time.

Facebook’s problem is it scrambled for big data and, finding it easy to suck up tonnes of the personal stuff on the unregulated Internet, built an antisocial surveillance business that needs to capture both sides of its market — eyeballs and advertisers — and keep them buying to an exploitative and even abusive relationship for its business to keep minting money.

Pivoting that tanker would certainly be tough, and in any case who’d trust a Zuckerberg who suddenly proclaimed himself the privacy messiah?

But it sure is a long way from ‘move fast and break things’ to trying to claim there’s only one business model to rule them all.


Source: Tech Crunch

Where seed and early-stage funding is growing, contracting or holding steady

In startup circles, it’s trendy to talk about how entrepreneurs are leaving high-tax, high cost-of-living metros for cheaper locales. While Silicon Valley remains ground central for hobnobbing with investors, the common wisdom goes, early-stage funding stretches much further elsewhere.

As memes go, it makes sense. But does the data bear this out? Is Texas turning into the new California? Is Salt Lake City edging out Seattle? Are the largest U.S. startup hubs losing their edge in luring promising early-stage startups?

In a somewhat eccentric data crunch, Crunchbase News set out to see the extent to which certain regions are gaining in early-stage and seed activity. We also attempted to see whether any of the big, established startup ecosystems are showing obvious signs of decline.

To lay out our case, we looked at four metrics. First, we measured total reported annual seed funding and round counts by state for the 18 largest venture capital ecosystems. Next, we looked at seed through early-stage investment and deal counts across three size ranges. They include moderately sized rounds of $1 million to $5 million, larger ones of more than $5 million and less than $50 million and really big early-stage investments of $50 million and up.

The idea with the size-range data sets was to see how tech hubs stack up in terms of launching well-funded startups. It’s one thing to have a lot of seed-funded startups. It’s quite another to see them go on to close follow-on rounds in the millions or tens of millions. We also wanted to see whether the top startup hubs are retaining their dominance in launching companies that go on to secure the biggest early-stage rounds.

(If the round sizes seem overly large for seed or early-stage investments, keep in mind that in 2018 and the current boom, traditional buckets for rounds have been breached; so what was once a Series D in terms of dollars, can now in fact be an early-stage round in some contexts.)

Here are some of the broad findings:

  • Top hubs hold pretty steady. The largest venture ecosystems aren’t showing signs of significant contraction this past year at seed and early-stage. Across the metrics we measured, the three largest (California, New York and Massachusetts) are hanging on to similar shares of funding as prior years.
  • Utah and Pennsylvania outperforms. Two states stood out in terms of posting gains across several seed and early-stage funding metrics: Pennsylvania and Utah. Pennsylvania benefited from heightened investment in biotech, transportation and robotics, areas in which it has large talent pools. Utah, meanwhile, prevailed in enterprise software.
  • Texas sees big gains in larger rounds. Texas didn’t see an annual rise in total reported seed funding, moderate-size deals or really big early rounds. However, the state was red-hot in producing startups that secured rounds of more than $5 million and less than $50 million.

Below, we’ll flesh out these findings, as well as take a look at the overall breakdown of seed and early-stage funding.

Here’s how the top states for venture funding stack up

To begin, let’s take a look at the breakdown for seed-stage funding and rounds among the 18 states that account for the overwhelming majority of investments:

As you can see, the top six states take in the lion’s share of seed funding, with California the leader of the pack by several multiples.

Moderately sized rounds by state

Next, let’s look at how the top states rank by another metric: Moderately sized seed and early-stage rounds of between $1 million and $5 million.

The reason we included this metric is because it includes very early-stage companies that have a lot of runway ahead, but have already attracted some serious investor interest. We also provided a year-over-year comparison, as it may be an early indicator of a state’s venture ecosystem gaining or losing traction.

Without further ado, here’s the chart:

As you can see above, the top five states for venture investment didn’t see big gains or losses in their share of investment at the $1 million to $5 million round size. Where we did see big increases was in two aforementioned states: Pennsylvania and Utah.

Early-stage rounds between $5M and $50M

Another metric to gauge a tech hub’s momentum is its ability to produce startups that raise pretty big seed and early-stage rounds.

With this in mind, we summed up deal counts and total investment by state for rounds of more than $5 million but less than $50 million for companies founded in the past four years. The results are charted below:

 

For mid-sized tech hubs, we see a good amount of year-over-year fluctuation in share of total investment for this category. A single big round or two can really move the needle, so it’s probably wise not to make to much of a single year’s fluctuation.

Texas, however, really is showing momentum: The Lone Star State is the largest tech ecosystem where we saw a really big year-over-year increase in rounds over $5 million and under $50 million. In 2018, Texas had 30 rounds in this category (see list), bringing in a total of $366 million. That’s up from just 13 funding rounds in the category bringing in $138 million in 2017. While we can’t point to clear-cut causes for the increase without deeper analysis, it’s apparent this is a bullish indicator for the Texan startup scene.

Early-stage rounds of $50M and up

Last, we looked at really big seed and early-stage rounds of $50 million and up for companies founded in the prior four years.

This is a funding category that barely existed several years ago. However, giant early-stage rounds have really mushroomed in recent quarters with the emergence of super-sized venture funds like the SoftBank Vision Fund and a greater willingness among investors to throw hundreds of millions at nascent sectors like scooter sharing.

The data indicates that really big early-stage rounds still primarily occur in the biggest startup hubs. The San Francisco Bay Area, New York and Boston were home to more than 85 percent of companies in the 2018 list for the category. No other state brought in more than one deal.

We have more details on how the numbers stack up in the chart below:

 

More power to Pennsylvania and Utah

In conclusion, we’d have to say that rumors of the slow death of California’s startup scene have been greatly exaggerated. Although all three of the top states for startup funding are high-tax, high cost-of-living locales, they’re also continuing to hit high marks in launching entrepreneurial companies and raising capital for them to grow.

Nonetheless, the data does reveal some apparent up-and-comers among startup hubs. Two that we notice are Pennsylvania and Utah.

Pennsylvania outperforms: I grew up in the Philadelphia area, so naturally I’m pleased to see the state ranking deservedly higher across our seed and early-stage metrics.

However, Philly can’t get all the credit for the rise. Pennsylvania has the good fortune of housing two startup hubs: Philly and Pittsburgh. Traditionally, Philadelphia has been a strong contender in biotech, with strength also in fintech, media and other sectors. Pittsburgh, as we’ve reported previously, is emerging as a hotbed for robotics, AI and transport.

Between those metro hubs, Pennsylvania saw a big rise year-over-year in round counts across all the categories we tracked (except for $50-plus million rounds, which were tied with 2017). Investment totals were also up markedly.

And don’t forget Utah: Utah has also been moving up in the ranks, delivering a particularly impressive performance given its population of just 3 million. By our estimates, Utah is the least-populated state to rank as a major startup hub.

Enterprise software is the dominant sector among sizably funded Utah companies. However, we also see a lot of non-SaaS business models pop up, in areas including fintech, audio devices and even peer-to-peer storage.

The takeaway: It looks like emerging early-stage startup hubs don’t need to siphon talent from the largest tech ecosystems to thrive. California, New York and Boston don’t appear to be losing their dominance. But that isn’t stopping smaller startup hubs from thriving too.

Methodology

The data set looks at funding levels by state. In most states, the vast majority of venture activity is in a single metro area. Exceptions are California, with the San Francisco Bay Area, Los Angeles and San Diego, as well as Pennsylvania, with both Pittsburgh and Philadelphia. For rounds above $5 million, we limited the data set to startups founded after January 1, 2015.

We did not compare 2018 seed funding totals to prior years due to the fact that a sizable portion of seed rounds are reported and recorded in the Crunchbase data set months after they close. As a result, reported figures for recent months undercount total funding activity.


Source: Tech Crunch

The state of the foldable

You’d be forgiven for being cynical. I’ve been seeing foldable display concepts for as long as I’ve been attending tech trade shows (which, quite frankly, is longer than I care to mention). Big names like Samsung and LG have been pumping countless R&D dollars into the technology in hopes of being first to next step in the evolution of the smart phone form factor.

The concept is nothing new, of course. The flip phone pre-dates the ubiquitous smartphone slab by decades. And a number of companies have tried to cheat the system. 2017’s Axon M was one of the more memorable attempts in recent memory — though that device amounted to little more than two screens jammed together on a hinge.

It bold and brash, but more than anything it was completely silly with an execution that left a lot to be desired. In my review, I called it “a fascinating mess.” But hey, ZTE deserves at least some credit for a run of products that attempted — with varying degrees of success — to buck the trend of samey smartphones.

There are plenty of reasons to be pessimistic about the state of technology in 2019, but I humbly offer you a beacon of light. This is the year smartphones become fun again. With their back to the corner, facing flagging sales, smartphone makers are taking leaps. Hell, it’s still January, and we’ve already caught a glimpse of what’s to compete.

At the front of the charger are foldables. That seems to be the term we’ve settled on for now — and it suits the category just fine. What convertibles were to the laptop category, foldables are to phones. True foldables require the display itself to do the folding, so devices can ostensibly transform from a one-handed smartphone to a larger tablet.

The Axon M didn’t fit the description for a number of reason, not the least of which was the gap between the two displays, which, quite frankly, made for a pretty crappy movie viewing experience, among others.

The first real foldable we’ve seen was a surprise contender. If the name “Royole” meant anything to you, prior to the Flex Pai, it was probably followed by the phrase “with cheese.” From the moment we first saw grainy footage of the handset, it was clear that being first and being best are rarely one and the same. “Folding screens are here,” I wrote at the time, “and they look crappy.”

I got some time with an updated version of the handset about a month later in China, and reappraised my initial impressions a bit. Even still, the Flex Pai didn’t and doesn’t strike me as much more than a little known company’s push bid to make a name for itself simply by being first.

Romain spent a bit more time with the device at CES, and appears to have come to similar conclusions. Royole does get credit for actually making the device a reality — even if it’s one that’s more developer focused than consumer. That does, of course, speak to a broader issue around usability.

It was a cause Google was happy to take up in November, when the company announced Android support for foldable displays. Like the notch before it, Google was attempting to get out ahead of the looming trend.

Here’s how Android VP Dave Burke described the category at the time, “You can think of the device as both a phone and a tablet, Broadly, there are two variants — two-screen devices and one-screen devices. When folded, it looks like a phone, fitting in your pocket or purse. The defining feature for this form factor is something we call screen continuity.”

It’s going to be fascinating to see if the industry coalesces around a single form factor here. The Flex Pai is one of the simpler ones — essentially operating like a sheet of paper that (somewhat awkwardly) folds in half so you can slip it in your pocket.

The same day that Google announced Android support, Samsung (briefly) showed off its own version of the technology. In the whooping 45 seconds the company devoted to it during a its two-hour keynote, we caught a glimpse of what looks to be an early prototype. Here, the device sports a display on the outside and unfolds to reveal a larger display within.

The “Infinity Flex Display” appeared at first glance to be more sophisticated than Royole’s — but “glance” is really the operative word here. It was a big, blocky prototype that we’ll be hearing more about at Unpacked next month.

Earlier this week, meanwhile, Xiaomi debuted what’s since come to be regarded as the most advanced of the bunch, but like Samsung, we only got a glimpse. And here it was in a much more controlled environment of a short, pre-recorded clip and extremely low resolution. That said, “the world’s first ever double folding phone” looks like a thing out of a sci-fi film.

The company, telling, tossed around the word “prototype” quite liberally there.

And then there’s Huawei. Mobile Chief Richard Yu highlight plans to announce a 5G folding phone at Mobile World Congress next month. As ever, details are scarce. Same goes for Motorola’s Razer, a $1,500 folding throwback, which is firmly in the rumor stages.

If that price point gives you pause, well, get used to it. The Flex Pai is already available at $1,300, and most other handsets are appear on track to hit roughly the same price point, making the latest iPhone and Samsung Galaxy devices look like a downright bargain.


Source: Tech Crunch

Startups Weekly: Is Munchery the Fyre Festival of startups?

It was a tough week. Journalists around the U.S. were hit hard by layoffs, from HuffPost to BuzzFeed News to Verizon Media Group, which owns this very site. The government entered day 35 of the shutdown before President Donald Trump agreed to a short-term deal to reopen it for three weeks. And in the startup world, a once high-flying, venture-subsidized food delivery startup crashed and burned, leaving a cluster of small businesses in its wreckage.

Some good things happened too — we’ll get to those.

  1. Munchery fails to pay its debts

In an email to customers on Monday, Munchery announced it would cease operations, effective immediately. It, however, failed to notify any of its vendors, small businesses in San Francisco that had supplied baked goods to the startup for years. I talked to several of those business owners about what they’re owed and what the sudden disappearance of Munchery means for them.

  1. #Theranos #Content

If you haven’t read John Carreyrou’s “Bad Blood,” stop reading this newsletter right now and go get yourself a copy. If you love to read, watch and listen to the Theranos saga as much as I do, you’ll be glad to hear there’s some fresh Theranos content released to the world this week. Called “The Dropout,” a new ABC documentary and an accompanying podcast about Theranos features never-before-aired depositions. Plus, TechCrunch’s Josh Constine reviews the Theranos documentary, “The Inventor,” which premiered at the Sundance Film Festival this week.

  1. Deal of the week

Confluent, the developer of a streaming data technology that processes massive amounts of information in real time, announced a $125 million Series D round on an enormous $2.5 billion valuation (up 5x from its Series C valuation). The round was led by existing investor Sequoia Capital, with participation from other top-tier VCs Index Ventures and Benchmark.

  1. Wag founders ditch dogs for bikes

Jonathan and Joshua Viner, the founders of the SoftBank-backed dog walking startup Wag, launched Wheels this week, an electric bike-share startup with a $37 million funding from Tenaya Capital, Bullpen Capital, Naval Ravikant and others.

  1. Go-Jek makes progress on a $2B round

Indonesia-headquartered Go-Jek has closed an initial chunk of what it hopes will be a $2 billion round after a collection of existing investors, including Google, Tencent and JD.com, agreed to put around $920 million toward it, according to TechCrunch’s Southeast Asia reporter Jon Russell. The deal, which we understand could be announced as soon as next week, will value Go-Jek’s business at around $9.5 billion.

  1. Knowledge center

There’s been a lot of chatter around direct listings since Spotify opted to go public via the untraditional route in 2018, but what exactly is a direct listing… We asked a panel of six experts: “What are the implications of direct listing tech IPOs for financial services, regulation, venture capital and capital markets activity?” 

Here’s your weekly reminder to send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets

  1. Contraceptive deserts

Through telemedicine and direct-to-consumer sales platforms, startups are streamlining the historically arduous process of accessing contraception. The latest effort to secure a significant financing round is The Pill Club, an online birth control prescription and delivery service. This week, the consumer-focused investor VMG Partners led its $51 million Series B. 

  1. More startup cash
  1. Fundraising activity

Sunil Nagaraj spent years investing in startups at Bessemer Venture Partners, but he was itching to meet with younger companies and strike out on his own. So in the summer of 2017, he did, and now, Nagaraj said he’s closed Ubiquity Ventures’ debut fund with $30 million. March Capital Partners, the Los Angeles-based venture capital firm, raised $300 million for its latest fund. Plus, Zynga founder Mark Pincus is reportedly raising up to $700 million for a new investment fund, called Reinvent Capital, that will focus on publicly traded tech companies in need of strategic restructuring.

  1. Finally, meet the startups in Alchemist’s 20th cohort

A mental health startup, a construction tech business and a fintech company, among others. Take a quick look at the startups that just completed Alchemist’s six-month accelerator program.

  1. Listen to me talk

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase editor-in-chief Alex Wilhelm, TechCrunch’s Silicon Valley editor Connie Loizos and I chatted about Munchery’s downfall, The Pill Club’s mission to make birth control more accessible and the VC slowdown in China.

 


Source: Tech Crunch