Month: December 2019

New Orleans declared a state of emergency and shut down its computers after a cyber security event, the latest in a string of city and state governments to be attacked by hackers.

Suspicious activity was spotted around 5 a.m. Friday morning. By 8 a.m., there was an uptick in that activity, which included evidence of phishing attempts and ransomware, Kim LaGrue, the city’s head of IT said in a press conference. Once the city confirmed it was under attack, servers and computers were shut down.

While ransomware was detected there are no requests made to the city of New Orleans at this time, but that is very much a part of our investigation, New Orleans Mayor LaToya Cantrell said during a press conference.

Numerous local and state governments have been plagued by ransomware, a file-encrypting malware that demands money for the decryption key. Pensacola, Florida and Jackson County, Georgia are just a few examples of the near-constant stream of ransomeware attacks over the past year. Louisiana state government was attacked in November, prompting officials to deactivate government websites and other digital services and causing the governor to declare a state of emergency. It was the state’s second declaration related to a ransomware attack in less than six months.

Governments and local authorities are particularly vulnerable as they’re often underfunded and unresourced, and unable to protect their systems from some of the major threats.

New Orleans, it appears was somewhat prepared, which officials said was the result of training and its ability to operate without internet. The investigation is in its early stages, but for now it appears that city employees didn’t interact with or provide credentials or any information to possible attackers, according to officials.

“If there is a positive about being a city that has been touched by disasters and essentially been brought down to zero in the past, is that our plans and activity from a public safety perspective reflect the fact that we can operate with internet, without city networking,” said Collin Arnold, director of Homeland Security, adding that they’ve gone back to pen and paper for now.

Police, fire and EMS are prepared to work outside of the city’s internet network. Emergency communications are not affected by the cybersecurity incident, according to city officials. However, other services such as scheduling building inspections are being handled manually.

New Orleans’s Real-Time Crime Center does work off the city network, however the cameras throughout the city record independently, so right now all of those cameras are still recording regardless of connectivity to the city’s network, Arnold added. 

Federal, state and local officials are now involved in an investigation into the security incident.

Source: Tech Crunch

Welcome to TechCrunch’s 2019 Holiday Gift Guide! Need help with gift ideas? We’re here to help! We’ll be rolling out gift guides from now through the end of December. You can find our other guides right here.

Remote working has become a new normal in the life of an employee. Spurred by ubiquitous broadband and mobile connectivity, lighter and smaller computers, and everything you need in the cloud, a lot of people have felt a lot less of a need to be in the same physical space as everyone else, day in day out, to get things done.

And yet, there remains a critical mass of people in and near big towns and cities who continue to commute.

For this guide, we’re focusing on commuters who eschew cars for all the obvious reasons — traffic, parking, gas costs, and more traffic — and instead opt for buses, trains, subways and bikes to travel to their “offices” — be they actual offices, or cafes or other workspaces — on a regular or semi-regular basis.

Daily commutes around most of the world’s metro areas can stretch into more than an hour per day on average, according to research from Moovit. In other words, these are presents that go to the heart of how your special people spend significant chunks of their days, weeks, months and years.

This gift guide is to help make that time more well spent. 

These products are the epitome of the genre-crossing, “prosumer” lives many of us seem to live today: they straddle the worlds of practicality and of fun, presents that might help them work during their commute, or get their minds off work, or to make their work trip a little safer or easier. Happy shopping (and hopefully, happier commuting).

This article contains links to affiliate partners where available. When you buy through these links, TechCrunch may earn an affiliate commission.

Smart bike lights

There’s been a big shift in these over the last decade or so. The bike lights of yesterday were barely-visible front and rear lights, semi-permanently attached to your handlebars and backseat, powered by batteries that always seemed to run out. Today, you can buy much brighter LED-based lights, which work on USB chargers to keep doing their job and easily attach and detach wherever you choose to buckle them.

Smart lights are the next gear up on that trajectory, with app-based controls and so.much.more. UK company See.Sense’s version packs a strong punch: on top of the being brighter, easier to remove and recharge, the lights link up with an app to alert you when someone appears to be stealing your bike, and they sense when you are cycling faster and slower and blink more rapidly when there’s more traffic to make sure the cyclist is better seen. The downside is that hills won’t be the only steep thing on your horizon.

Price: $120 on Amazon for a Front/Rear set

Bike-mounted speaker

A worrying number of cyclists get around the streets with headphones in their ears to pick up navigation instructions, listen to music or podcasts, or talk on the phone. This is not ideal, though, as it means they cannot fully hear the noise of traffic in their midst. A bike-mounted speaker is a way to let the rider continue to listen to their audio, but not at the detriment of hearing other important traffic noises.

This Celtic Blu speaker is one of the more fancy of the dozens of bike speakers that are on the market today. Alongside the basics of offering a Bluetooth connection to play music or other media from your phone and being waterproof, it doubles as a charging bank for other devices, can work as a microphone to take calls, and has an additional set of controls that you access from the handlebars to adjust sound, answer calls and other actions more safely. The downside is that it’s one of the bigger of the speakers,  potentially taking up space you migh have mounted a water bottle.

Price: $80 on Amazon

Streaming, podcast or audiobook gift cards

Streaming services from Spotify, Apple, Amazon and others have been growing in ubiquity by leaps and bounds, but if your commuter isn’t already subscribing to one of these, or if they’re only using the free tier, giving them a chance to test out the premium service with a giftcard could be a welcome present. It can also be one to personalise: find a mix of podcast programs you think your commuter might like to hear, or pick out a selection of books for the listening, to give alongside the card. (See some book recommendations here and here.)

Price: Audible starts at $15/month; Spotify Gift Cards are widely available from retailers including Amazon.

Wireless ear buds and headphones

I personally worry about how safe these are for cycling, so I won’t endorse them for bike usage. But they have quickly become one of the must-haves for commuters on other transportation modes who are mad as hell about tangled cords and not going to take it anymore. Apple’s Air Pods Pro, at $249, are a noticeable improvement on the previous generation of their wireless buds, and the world has noticed: they have been a huge sell-out success, with orders now only shipping in January. There are dozens of others now on the market if you don’t want to wait, or pay the premium to own an Apple product.

Price: Airpods Pro, $249 on Amazon | For a more classic (and cheaper) headphone style, try these from Sony.

E-Reader

No, not everyone has one of these. Yes, they are still a huge seller for Amazon, underscoring their enduring popularity. We like the Kindle Paperwhite (pictured above) or the Kindle Oasis, the latter of which is around $145 more but brings in a bigger screen, an adjustable-warmth backlight, and physical page turning buttons.

Read some of our book recommendations here.

Price: Kindle Paperwhite, $105 on Amazon | Kindle Oasis, $250 on Amazon

Panniers

I’m a bike commuter myself and have been toughing it out (literally and figuratively) with a pair of Ortlieb Back-Roller Classics for years. These monsters are so durable that the set I have now are as old as my oldest child (14) and they still look nearly new.

But I’m going to be honest. They’re not beautiful, and even with two inside pockets, they can be hard to peer inside when you’re looking for something smallish. (The blood has rushed out of my hands more than once thinking I’d somehow lost my wallet or phone, only to find them deep down inside the bag.)

The cool thing is that there is now a huge range of options on the market for new bags, whether you want them for leisurely use, for work commuting, for a fashion statement, to make them easier to carry when you’re off your bike, or all of the above.

Arkel’s bag is laptop-focused (but sells as a single); Timbuk2 (pictured above) if you’re after a “tandem” style; and if you are looking for a stylish pannier to replace purely functional ones used by your commuter, you can consider the Norfolk model from Brooks or the Sac from Linus.

Price: Arkel Commuter bag, $189 | Timbuk2 Tandem bag, $129 on Amazon | Brooks Norfolk, $120 on Amazon | Linus Sac, $70

Activity tracker

These are not just for the people who cycle, run or walk to work. While a lot of a commuter’s journey might take place sitting or standing on public transportation, there is actually quite a bit of walking that comes at the start and finish of the route. A good activity tracker can help a person track how they rack up the miles and feel a little better about all the hours they subsequently spend sitting at a desk.

You can go for a premium Apple Watch starting at around $400, or you can opt for a basic Fitbit at under $100.

Price: Apple Watch, from $384 on Amazon | Fitbit Inspire, $80 on Amazon

Privacy Screen

Borrowing one from Zack, who has a much more extensive list of privacy-related gifts, to draw one out for those who pull out their laptops during their morning commutes, whether it’s to work or do something else. Whatever it is: wandering eyes sitting nearby can see what you’re doing. A special screen that blocks all angular views except straight on in front on the machine is a good way to keep the nosey parkers out of your business.

Price: Around $17 on Amazon.

Touchscreen gloves

Not strictly (nor even loosely) a gadget, but something that will help you keep using your screen-based companions as the weather turns cooler. You can buy beautiful leather, cashmere-lined versions of these; or you can buy them in acrylic. You can go colourful or stay basic in black. People lose or rip gloves all the time, so even having an extra pair is not a bad thing.

Price: Downholme Leather/cashmere gloves, $60 on Amazon here | knit gloves (a little more modest but still perfectly good),  $8 on Amazon.

Source: Tech Crunch

Recently released documents revealed the FBI has for years secretly demanded vast amounts of Americans’ consumer and financial information from the largest U.S. credit agencies.

The FBI regularly uses these legal powers — known as national security letters — to compel credit giants to turn over non-content information, such as records of purchases and locations, that the agency deems necessary in national security investigations. But these letters have no judicial oversight and are typically filed with a gag order, preventing the recipient from disclosing the demand to anyone else — including the target of the letter.

Only a few tech companies, including Facebook, Google, and Microsoft, have disclosed that they have ever received one or more national security letters. Since the law changed in 2015 in the wake of the Edward Snowden disclosures that revealed the scope of the U.S. government’s surveillance operations, recipients have been allowed to petition the FBI to be cut loose from the gag provisions and publish the letters with redactions.

Tech companies have used “transparency reports” to inform their users of government demands for their data. But other major data collectors, like credit agencies, have failed to publish their figures altogether.

Three lawmakers — Democratic senators Ron Wyden and Elizabeth Warren, and Republican senator Rand Paul — have sent letters to Equifax, Experian, and TransUnion, expressing their “alarm” as to why the credit giants have failed to disclose the number of government demands for consumer data they receive.

“Because your company holds so much potentially sensitive data on so many Americans and collects this information without obtaining consent from these individuals, you have a responsibility to be transparent about how you handle that data,” the letters said. “Unfortunately, your company has not provided information to policymakers or the public about the type or the number of disclosures that you have made to the FBI.”

Spokespeople for Equifax, Experian, and TransUnion did not respond to a request for comment outside business hours.

It’s not known how many national security letters were issued to the credit agencies since the legal powers were signed into law in 2001. The New York Times said the national security letters to credit agencies were a “small but telling fraction” of the overall half-million FBI-issued demands made to date.

Other banks and financial institutions, as well as universities, cell service and internet providers, were targets of national security letters, the documents revealed.

The senators have given the agencies until December 27 to disclose the number of demands each has received.

Source: Tech Crunch

Welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I wrote about U.S. VC activity in Europe. Before that, I noted Chinese investor activity in Africa.

Remember, you can send me tips, suggestions and feedback to kate.clark@techcrunch.com or on Twitter @KateClarkTweets. If you’re new, you can subscribe to Startups Weekly here.

Hello from Berlin, where we’ve just wrapped our annual conference, TechCrunch Disrupt Berlin. Top investors shared insight into European venture capital, well-known individuals and firms made announcements (large and small), and entrepreneurs pontificated about the future of startups in their respective regions.

As I spoke with various early-stage startup founders presenting at the event, chatted with U.S. and European venture capitalists and brain-stormed with my colleagues, I reflected on my last 12 months inside the tech bubble. Soon, I’ll be publishing an extended look at what I see as the 10 biggest themes in startups and VC in 2019. But for now, here’s a sneak peek at my top picks.

1. SoftBank screw ups. From WeWork to Wag to Fair.com, SoftBank made headlines over and over again this year—for all the wrong reasons.
2. WeWork woes. SoftBank’s star portfolio company struggled the most. This was the biggest story of the year and its complete with drugs, private jets, burned cash and upset employees.
3. CEO exodus. From Away co-founder Steph Korey to WeWork’s Adam Neumann, a whole lot of executives exited their posts this year.
4. Unicorn IPO struggles. Uber, Lyft, Pinterest, Zoom and more unicorns went public this year. Some fared better than others.
5. The fight for seed. There was more competition than ever at the earliest stage of venture capital. As a result, investors got creative, hired fresh faces, raised new funds and even gave founders lavish gifts.
6. Y Combinator growth. Everyone’s favorite accelerator got a whole lot bigger this year. Not only did its cohorts swell, but its president, Sam Altman, stepped down and the firm cemented changes to its investment process.
7. VCs + direct listings = <3. When venture capitalist weren’t busy gossiping about WeWork and SoftBank, they were debating a new and innovative path to the public markets: direct listings.
8. Every startup is a bank. Brex raised hundreds of millions, Stripe launched a corporate card, credit card startup Deserve nabbed $50 million. 2019 was the year that consumer banking upstarts became the new e-scooter businesses.
9. VC isn’t the only option. While VCs were going crazy for consumer financial services, companies like Clearbanc and Capital expanded to give founders alternatives to venture capital, like revenue-based financing and venture debt.
10.   The diversity disaster persists. Women still only raise 2.8% of venture capital in the U.S., up from 2.2%. Enough said.

If you like this newsletter, you will definitely enjoy Equity, which brings the content of this newsletter to life — in podcast form! Join myself and Equity co-host Alex Wilhelm every Friday for a quick breakdown of the week’s biggest news in venture capital and startups.

This week, I sat down with Chris Mayo, head of primary markets at the London Stock Exchange, to discuss the rise of direct listings.

Source: Tech Crunch

Founded in 2012, Nomiku became a plucky Silicon Valley darling by bringing affordable sous vide cooking to home kitchens. A Kickstarter project that same year generated $750,000, several times its $200,000 goal. The company scored a glowing TechCrunch profile the following year, as well, thanks in part to a great backstory.

Today, however, the company noted on its site and various social media channels that it is winding down operations:

Well, I am sorry to say that we have reached the end of the road. It is with a heavy heart (and deep-felt gratitude for your patronage) that we are writing to let you know that we are discontinuing the Nomiku Smart Cooker and Nomiku Meals effective immediately, and suspending operations. While we still believe in the concept, we simply were not able to get to a place of sustainability to keep the business going. Thank you very much for your support, it has meant a lot to myself and everyone here at Nomiku.

“The total climate for food tech is different than it used to be,” Lisa Fetterman said in a call to TechCrunch. “There was a time when food tech and hardware were much more hot and viable. I think a company can survive a few hurdles, and a few challenges [ …] For me, it was the perfect storm of all these things.”

In total, the company raised more than $1.3 million over two Kickstarter campaigns, putting it in the upper echelons of food crowdfunding. In 2015, the startup joined Y Combinator and launched a cooking app called Tender, featuring recipes from prominent chefs.

In some ways, Nomiku appears to be a victim of its own popularity. The company was able to bring a cost-prohibitive cooking technology down to an affordable price point, only to see the market flooded by competitors. Fetterman highlighted some of those issues in a recent Extra Crunch interview.

In 2017, Samsung Ventures invested in the company, with plans to integrate it into its SmartThings connected platform. That same year, Nomiku began to pivot into subscription meal plans, but had difficulty getting the word out. Fetterman says the company was seeking funding toward the end, but ultimately couldn’t make things work.

Even with a buzzy company and a great product, the startup world can still be unforgiving. 

Source: Tech Crunch

Yesterday, Adobe submitted its quarterly earnings report and the results were quite good. The company generated a tad under $3 billion for the quarter at $2.99 billion, and reported that revenue exceeded $11 billion for FY 2019, its highest ever mark.

“Fiscal 2019 was a phenomenal year for Adobe as we exceeded $11 billion in revenue, a significant milestone for the company. Our record revenue and EPS performance in 2019 makes us one of the largest, most diversified, and profitable software companies in the world. Total Adobe revenue was $11.17 billion in FY 2019, which represents 24% annual growth,” Adobe CEO Shantanu Narayen told analysts and reporters in his company’s post-earnings call.

Adobe made a couple of key M&A moves this year that appear to be paying off, including nabbing Magento in May for $1.7 billion and Marketo in September for $4.75 billion. Both companies fit inside its “Digital Experience” revenue bucket. In its most recent quarter, Adobe’s Digital Experience segment generated $859 million in revenue, compared with $821 million in the sequentially previous quarter.

Obviously buying two significant companies this year helped push those numbers, something CFO John Murphy acknowledged in the call:

“Key Q4 highlights include strong year-over-year growth in our Content and Commerce solutions led by Adobe Experience Manager and success with cross-selling and up-selling Magento; Adoption of Adobe Experience Platform, Audience Manager and Real-Time CDP in our Data & Insights solutions; and momentum in our Marketo business, including in the mid-market segment, which helped fuel growth in our Customer Journey Management solutions.”

All of that added up to growth across the Digital Experience category.

But Adobe didn’t simply buy its way to new market share. The company also continued to build a suite of products in-house to help grow new revenue from the enterprise side of its business.

“We’re rapidly evolving our CXM product strategy to deliver generational technology platforms, launch innovative new services and introduce enhancements to our market-leading applications. Adobe Experience Platform is the industry’s first purpose-built CXM platform. With real-time customer profiles, continuous intelligence, and an open and extensible architecture, Adobe Experience Platform makes delivering personalized customer experiences at scale a reality,” Narayan said.

Of course, the enterprise is just part of it. Adobe’s creative tools remain its bread and butter with the Creative tools accounting for $1.74 billion in revenue and Document Cloud adding another $339 million this quarter.

The company is talking confidently about 2020, as its recent acquisitions mature and become a bigger part of the company’s digital experience offerings. But Narayan feels good about the performance this year in digital experience: “When I take a step back and look at what’s happened during the year, I feel really good about the amount of innovation that’s happening. And the second thing I feel really good about is the alignment across Magento, Marketo and just call it, the core DX business in terms of having a more unified and aligned go-to-market, which has not only helped our results, but it’s also helped the operating expense associated with that business,” he said.

It is no small feat for any software company to surpass $11 billion in trailing revenue. Consider that Adobe, which was founded in 1982, goes back to the earliest days of desktop PC software in the 1980s. Yet it has managed to transform into a massive cloud services company over the last five years under Narayan’s leadership and flourish there.

Source: Tech Crunch

Increasingly, startups across the spectrum are looking to artificial intelligence (AI) to help them solve business problems and drive efficiency. The numerous benefits of building AI capability in  your startup shouldn’t come as a surprise to anyone — in fact, the advantages for business are so far-reaching that PwC predicts that AI will add $15.7 trillion to the global economy by 2030.

Contrary to popular belief, successfully implementing AI to drive impactful decisions requires a diverse team with expertise in several skill sets. Launching your AI journey is no simple feat — you need to ask probing questions to ensure that the relevant data science projects are embarked upon at the right time. Plus, you need to make sure that you build out an effective team that can turn data into decisions.

When should businesses take the AI leap?

Source: Tech Crunch

Hello and welcome back to our regular morning look at private companies, public markets and the grey space in between.

Today we’re taking stock of a cohort of special companies: still-private startups that have reached $100 million in annual recurring revenue (ARR). Our goal is to understand which startup companies are actually exceptional. This late in the unicorn era, hundreds of companies around the world have reached a valuation of $1 billion, making the achievement somewhat pedestrian.

Reaching $100 million in ARR, however, still stands out.

We explored the idea earlier this week, citing Asana, Druva and WalkMe as private companies that recently reached $100 million ARR. In addition to that trio, Bill.com and Sprout Social, both of which went public this week, also crossed the nine-figure annual recurring revenue mark in 2019.

After we posted that short list, four other companies either just shy of $100 million ARR, or with a little bit more, reached out to TechCrunch, touting their own successes. Given that our point was that companies which reach the revenue threshold million are neat, it’s worth taking a moment to look at the other companies joining the $100 million ARR club.

For extra fun I got on the phone with a number of their CEOs to chat about their progress. We’ll start with a look at a company that is nearly a member of the club, and then talk about a few that recently punched their membership cards.

The $100M ARR club’s up-and-comers

GitLab: Expects to reach $100M ARR in January, 2020

To be frank, I did not know that GitLab was as large as it is. Backed by more than $400 million in private capital, GitLab competes with the now-purchased GitHub as a developer resource and service. Its backers include Goldman Sachs, ICONIQ, GV, August Capital and Khosla.

GitLab became a unicorn back in September of 2018, when it raised $100 million at a $1 billion post-money valuation. Its more recent $268 million Series E raised this September pushed that valuation to nearly $2.8 billion.

It’s a good company for us to include, as it provides a good example of how far in advance a $1 billion valuation can precede a $100 million ARR business; in GitLab’s case, provided that it grows as expected, its unicorn valuation came nearly 1.5 years before reaching nine-figure ARR.

To understand more about the company’s growth, we caught up with its CEO Sid Sijbrandij (full discussion here), learning that he views the unicorn tag as a way to help a company brand itself, but something that is outside of his company’s control. Revenue, in his view, is “much more within your control.” According to Sijbrandij, GitLab is aiming for $1 billion in revenue in 2023 and has a November, 2020 IPO targeted.

GitLab is sharing its impending ARR milestone as it runs its whole business very transparently (hence why my chat with its CEO was live-streamed, and archived on YouTube). It will be super interesting to see if the company hits the ARR target on time, and then if it can also stick the landing with a Q4 2020 IPO.

The $100 million ARR club’s newest members

Egnyte: Reached $100M ARR in November 2019

Egnyte, a player in the enterprise productivity, storage and security spaces, has kept growing since its $75 million Series E it raised last October.

The company, backed by Goldman Sachs (again), GV (again) and Kleiner Perkins, has raised just $137.5 million to date. Reaching $100 million ARR on that level of funding means that Egnyte has run efficiently as a business. In fact, as TechCrunch has reported, Egnyte has occasionally made money on its path to the public markets.

TechCrunch has spoken to Egnyte’s CEO Vineet Jain a number of times, but it seemed appropriate to get him back on the phone now that his company is nearly ready to go public (at least in terms of size). According to Jain, in fresh data released to Extra Crunch:

• Egnyte passed the $100 million ARR threshold in November
• The company grew about 30% in 2019
• Egnyte expects growth to accelerate in 2020

Source: Tech Crunch