Hear from Postmates, Refraction AI and FedEx about autonomous delivery at TC Sessions: Mobility 2020

Small startups and logistics giants alike are working on how to use automated vehicle technology and robotics for delivery. Some have even accelerated their efforts, with mixed results, as the COVID-19 pandemic drove up demand for delivery.

But is the world — or the tech — ready for the mainstream?

TechCrunch has tapped three experts from FedEx, Refraction AI and Postmates to join our virtual stage at TC Sessions: Mobility 2020 to talk about the challenges and opportunities of using robots for delivery. TC Sessions: Mobility is a two-day conference scheduled for October 6 and October 7 that aims to bring together the best and brightest minds working on the future of transportation.

Matthew Johnson-Roberson, co-founder of Refraction AI, Ali Kashani, the VP of Special Projects at Postmates and Rebecca Yeung, vice president of Advanced Technology & Innovation at FedEx will discuss the changing face of delivery, what it will take to make this technology commercially viable and whether the the COVID-19 pandemic has changed their strategy.

Johnson-Roberson’s company Refraction AI came out of stealth on our stage last year. The Midwest-based startup, which developed a delivery robot that uses the bike lane, and has been ramping up testing and operations in its home state of Michigan. Johnson-Roberson, has worked in robotic perception since the first DARPA grand challenge, is also associate professor of robotics at the University of Michigan College of Engineering.

Kashani has co-founded several startups, including Lox, which was acquired by Postmates in 2017. When Kashani joined the company he launched Postmates X, which aimed to solve the economic and environmental dilemma of using vehicles to deliver food. His team came up with Serve, the robot that is now used to deliver food in Los Angeles and San Francisco.

Yeung’s primary responsibility as VP of advanced technology is to accelerate innovation in the autonomous vehicles and robotics space and use it to improve FedEx’s operations and customer experience. Yeung has more than 20 years of experience in emerging technology, strategy, marketing, and business development. She is the lead officer for FedEx’s same-day robot known as Roxo. She also oversees key autonomous vehicle and robotics initiatives at the enterprise level, evaluating emerging technologies to inform R&D investments.

In case you hadn’t heard, TC Sessions: Mobility 2020 is virtual this year. The virtual version of TC Sessions: Mobility will bring all of what you’d expect from our in-person events, from the informative panels and provocative one-on-one interviews to the networking and this year, even a pitch-off session. This year, we’re also holding Q&A sessions following several of the panels, allowing ticketholders to submit questions to the panelists.

We want TC Sessions: Mobility to be accessible to as many people as possible and so we’ve created a range of pass levels to fit just about every budget. Prices start at $25 for the Expo ticket and students can attend for $50. We also have discounts for groups. Or buy an Early-Stage Startup Exhibitor Package to claim a spot in our expo before we run out of space!

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Source: Tech Crunch

Cannabis vape companies are experiencing a sales boom during the pandemic

The global pandemic is driving interest toward cannabis, and device makers are recording record sales. From startups to major players, several leading manufacturers told TechCrunch that their companies are seeing a boom in sales since the start of the crisis. Coupled with supply constraints, consumers are now seeing limited supply on some top models as makers try to keep up.

Some company CEOs see the pandemic driving consumer acceptance and pushing legalization at the national level. With legalization, new consumers enter the market, and companies such as Canopy Growth, PAX and Grenco Science look to benefit as makers of some of the best vaporizers on the market — that is if consumers can find them in stock.

Supply chain issues are partly to blame, and cannabis products are not alone in facing short supply. For the U.S.-market, many products, from bicycles to kayaks, are hard to find right now. And like those products, increased demand is straining the already stressed supply. 

Grenco Science was founded in 2012 and was an early mover in the dry herb vaporizer market. In 2019, the company raised a Series A for an undisclosed amount to develop and release innovative products. And in early 2020, the company was ready to launch the inexpensive Dash and the Roam, a portable water-filtered concentrate vaporizer. 

Then COVID-19 hit.

CEO and co-founder Chris Folkerts says product launches were pushed back, yet the company was still able to launch the Roam and Dash. 

“We’ve still been able to see growth and expand the product pipeline significantly,” Folkerts said. “There are still releases slated for later this year and we’ll be able to launch the redesigned Stundenglass after the company’s acquisition.”

Indeed, Grenco had a busy pandemic, launching two new products and acquiring the maker of another. And they’re not done. Folkerts says interest in dry herb vaporizers is spiking and could be due to the Dash vape launch. Grenco has three more new dry herb vaporizers in its release pipeline.

Folkerts admits that there were troubles along the way, primarily around customer support and shipping products. The company saw an influx of orders through online sales and distributors that the company was not prepared to handle. He says the company had to repurpose “a decent portion” of its staff to speak directly to online consumers to address product and shipping concerns. 

Canopy Growth’s marquee vaporizer company Storz & Bickel is also experiencing increased customer support issues. Browse any user forum and it’s clear the company cannot keep up with customer relations. Buyers are reporting delayed shipping and inconsistent customer support. Most items on storz-bickel.com carry a “low inventory” warning, though most are available through official distributors.

Andy Lytwynec, VP, Global Vape Business at Canopy Growth, says Storz & Bickel’s sudden growth is outpacing forecasts, and the company accelerated production expansion. Thirty new employees were added to its German factory through a heightened sense of urgency, he said.

In 2000, Storz & Bickel released the Volcano, arguable the first worthwhile desktop dry herb vaporizer. The company now sells two versions of the Volcano and a handful of handheld devices that use the same underlying technology, all of which are certified for medical use. In 2018, Canopy Growth acquired Storz & Bickel, where it joined the conglomerate’s other vaporizer brands.

Lytwynec points to Storz & Bickle as a barometer of sorts in judging the impact of COVID-19. The German-based vaporizer company saw an uptick in sales, as reported in Canopy Growth’s latest quarterly report. The company reported a 71% increase during the first quarter ending on June 30. The financial report pointed to Storz & Bickel’s increased sales and distribution expansion as a primary reason for the increase. 

During the pandemic, consumers are not just turning to dry herbs. Makers of concentrate vaporizers also see an increase in sales.

Puffco, maker of the fantastic Puffco Peak e-rig, tells TechCrunch it has also seen an explosion in sales. Puffco founder Roger Volodarsky says, “Since the pandemic hit, it seems like many new users have joined the cannabis space. Puffco has seen historic sales during this time. We’re thankful to see our growth continue despite the challenges that we’ve been faced with.”

Instead of using ground flower, Puffco’s products are designed to be used with concentrates, which many see as the next big cannabis inhalation market. It sits between dried flower and portable so-called vape pens.

Jupiter Research is the largest distributor of CCELL vaporization hardware and sells into all regulated cannabis markets globally, including across the United States. For this market, namely the pre-packaged, self-contained THC cartridges, Jupiter Research has seen little effect from COVID-19.

“There hasn’t been a material increase or decrease in the vape market as a whole due to COVID-19,” Tim Conder, COO and president said, adding, “at least from what our data tells us. In fact, Jupiter has continued to gain market share in the vape category as a whole. Vape remains the second largest category in cannabis henna flour. The third is edibles.”

Conder sees COVID-19 potentially changing the government’s stance on cannabis. As he told TechCrunch, it feels like cannabis legalization is gaining more traction at a federal level. He hopes state and federal governments are looking at the fiscal benefits of a nationwide legal cannabis market.

Other cannabis hardware manufacturers agree COVID-19 is pushing the United States government to look at cannabis through a different light.

DynaVap, a Wisconsin-based manufacturer, says the public perception of cannabis has remained consistent with continual movement into positive public acceptance. Eric Olson, founder, and CFO of DynaVap, notes that he feels the cannabis plant has even had positive effects and eases the impact from COVID-19.

“The post-pandemic outlook for the cannabis plant will be an impactful positive public movement assuming the industry can continue the legalization momentum on the federal and state levels in the U.S.,” Olson told TechCrunch.

DyanVap, which employs 50 people in Wisconsin, says it started increasing staffing in May and recently launched several new products, including a portable induction heater called “the Orion.”

Now, six months out from the start of the global crisis, the cannabis market seems to have gained significant traction as such manufacturers have ramped up production and increased staffing to keep up with demand.

Canopy Growth’s Lytwynec sees the past few months as a turning point around cannabis. And not just for the economic impact for legalization (and taxing) cannabis. He says he sees consumers waking up to the level of sophistication around cannabis. 

“People are spending their dollars, not on baggies of illicit weed, but they’re spending their money on higher-end products, and it’s nice to see the category mature in the middle of a pandemic. We see people investing in [devices] and the quality of consumables. It speaks to the health of the category, and I’m hopeful the industry picks up tailwinds, and we exit this dystopian period sooner than later.”


Source: Tech Crunch

Deep Science: Robot perception, acoustic monitoring, using ML to detect arthritis

Research papers come out far too rapidly for anyone to read them all, especially in the field of machine learning, which now affects (and produces papers in) practically every industry and company. This column aims to collect the most relevant recent discoveries and papers — particularly in but not limited to artificial intelligence — and explain why they matter.

The topics in this week’s Deep Science column are a real grab bag that range from planetary science to whale tracking. There are also some interesting insights from tracking how social media is used and some work that attempts to shift computer vision systems closer to human perception (good luck with that).

ML model detects arthritis early

Image Credits: UC San Diego

One of machine learning’s most reliable use cases is training a model on a target pattern, say a particular shape or radio signal, and setting it loose on a huge body of noisy data to find possible hits that humans might struggle to perceive. This has proven useful in the medical field, where early indications of serious conditions can be spotted with enough confidence to recommend further testing.

This arthritis detection model looks at X-rays, same as doctors who do that kind of work. But by the time it’s visible to human perception, the damage is already done. A long-running project tracking thousands of people for seven years made for a great training set, making the nearly imperceptible early signs of osteoarthritis visible to the AI model, which predicted it with 78% accuracy three years out.

The bad news is that knowing early doesn’t necessarily mean it can be avoided, as there’s no effective treatment. But that knowledge can be put to other uses — for example, much more effective testing of potential treatments. “Instead of recruiting 10,000 people and following them for 10 years, we can just enroll 50 people who we know are going to be getting osteoarthritis … Then we can give them the experimental drug and see whether it stops the disease from developing,” said co-author Kenneth Urish. The study appeared in PNAS.

Using acoustic monitoring to preemptively save the whales

It’s amazing to think that ships still collide with and kill large whales on a regular basis, but it’s true. Voluntary speed reductions haven’t been much help, but a smart, multisource system called Whale Safe is being put in play in the Santa Barbara channel that could hopefully give everyone a better idea of where the creatures are in real-time.

Image Credits: UW/UC Santa Barbara

The system uses underwater acoustic monitoring, near-real-time forecasting of likely feeding areas, actual sightings and a dash of machine learning (to identify whale calls quickly) to produce a prediction for whale presence along a given course. Large container ships can then make small adjustments well-ahead of time instead of trying to avoid a pod at the last minute.

“Predictive models like this give us a clue for what lies ahead, much like a daily weather forecast,” said Briana Abrahms, who led the effort from the University of Washington. “We’re harnessing the best and most current data to understand what habitats whales use in the ocean, and therefore where whales are most likely to be as their habitats shift on a daily basis.”

Incidentally, Salesforce founder Marc Benioff and his wife Lynne helped establish the UC Santa Barbara center that made this possible.


Source: Tech Crunch

N26 hires Adrienne Gormley as its new chief operating officer

Fintech startup N26 is announcing some changes in the leadership team with two new C-Level hires. First, Adrienne Gormley, pictured above, is joining the company as chief operating officer, replacing Martin Schilling who left the company in March 2020. Second, Diana Styles, pictured below, will become N26’s chief people officer.

Gormley has spent the last six years working for Dropbox in Dublin. She was the VP of Global Customer Experience as well as the head of EMEA for Dropbox. Previously, she’s worked at Google and Transware.

At N26, she will be in charge of a large chunk of the company, from customer service, to business operations, service experience and workplace division.

Styles has many years of human resources experience. She was the senior vice president of Human Resources, Global Sales and Brands at Adidas. Similarly, as chief people officer, she will oversee important aspects of the company, such as employee retention, leadership development, talent acquisition and more.

Both will be based in Berlin and report to the company’s co-founder and chief financial officer Maximilian Tayenthal. N26 has grown quite a lot over the past few years as there are now 1,500 employees working for the company.

Image Credits: N26


Source: Tech Crunch

Google to better enforce Play Store in-app purchase policies, ease use of third-party app stores

Under threat of regulation, Google announced today it’s updating its Google Play billing policies to better clarify which types of transactions will be subject to Google’s commissions on in-app purchases. While the more detailed language doesn’t actually change the earlier policy’s intention, it will impact a percentage of developers who don’t currently use Google Play’s billing system when selling digital goods in their app. In addition, the company announced it will make changes in Android 12 that will make it easier for users to install and use third-party app stores as an alternative to Google Play.

The company says that its current billing policies only apply to less than 3% of apps on Google Play. Of those apps, 97% already use Google Play’s billing library. That means there’s only a small percentage of apps that will need to come into compliance under the clarified terms.

To make the transition easier, app developers will be given an extended 1-year grace period to introduce Google Play’s billing library into their apps, had they previously skirted Google’s policies around digital purchases.

Google will also give some businesses impacted by the pandemic the ability to opt-out of its payment policies for the next 12 months. This could apply to those businesses that had to move their previously physical services online — such as live events.

Apple recently did the same for Facebook’s paid events business on the iOS App Store.

Like Apple, Google collects a 30% commission on in-app purchases.

Google also said it won’t limit developers’ ability to communicate with customers, including about alternative ways to pay — in stark contrast with Apple.

“To clarify, Google Play does not have any limitations here on this kind of communication outside of a developer’s app. For example, they might have an offering on another Android app store or through their website at a lower cost than on Google Play,” the company noted. “We understand the importance of maintaining the customer relationship. As such, we have also always allowed developers to issue refunds to their customers and provide other customer support directly,” it said.

Bloomberg had previously reported Google was planning to increase its push for a cut of Play Store apps’ in-app purchases.

The policy updates indicate how Google is responding to the increased regulatory scrutiny of its Android mobile platform and how it operates its app store, Google Play. These matters have recently been the subject of antitrust investigations in the U.S. and other markets, where governments are attempting to determine if the current crop of tech giants have been abusing their power by way of anti-competitive business practices.

At issue is the fact that app stores have become the default way — and in some cases, the only possible way — for developers to distribute apps to mobile consumers. But these app stores also commission many of the apps they distribute, even when the platform maker itself offers a competing product. For example, the stores distribute alternative music streaming services, like Spotify, and take a cut of its subscription revenues. At the same time, they also offer their own music streaming service, like Apple Music or Google’s YouTube Music.

In other cases, larger app publishers like Epic Games don’t want to pay app stores for distribution and billing services, as they’re capable of providing the platform and tools for distribution and can bill their customers directly. In Apple’s case, Epic has engaged in a lawsuit over the matter which is still ongoing. A group of developers, including Epic, also last week launched a coalition to demand more “fairness” in the app industry and to fight back against what they perceive to be app stores’ overreach.

Google’s app store business hasn’t received quite the same level of attention as Apple’s because it already offers users the ability to sideload apps. That means users can toggle a setting to install apps hosted outside of the Google Play Store.

In an announcement today, Google also says it will make changes in next year’s release of Android 12 that will make it easier for consumers to use other app stores on Android devices, without compromising Android’s existing safety measures. Google hasn’t said what these changes may include, but one area of concern has been how the Android OS approaches the messaging around sideloading apps.

Today, it presents the option as only a serious security risk that users must manually enable. More recently, it limited sideloading in its Advanced Protection Program, which is designed for high-profile Google users, like politicians or public figures, or those whose accounts could be targeted by hackers, like journalists or political dissidents.

That means reasonably safe alternatives to Google Play have more difficulty acquiring users.

The company said the changes related to third-party app stores were directed by developer feedback.

Google stressed, too, that its policies are applied universally, even to its own apps.

“Our policies apply equally to all apps distributed on Google Play, including Google’s own apps. We use the same standards to decide which apps to promote on Google Play, whether they’re third-party apps or our own apps,” the company said, in an announcement. “In fact, we regularly promote apps by Google’s competitors in our Editors’ Choice picks when they provide a great user experience. Similarly, our algorithms rank third-party apps and games using the same criteria as for ranking Google’s own apps,” it added.

 


Source: Tech Crunch

This is how police request customer data from Amazon

Anyone can access portions of a web portal, used by law enforcement to request customer data from Amazon, even though the portal is supposed to require a verified email address and password.

Amazon’s law enforcement request portal allows police and federal agents to submit formal requests for customer data along with a legal order, like a subpoena, a search warrant, or a court order. The portal is publicly accessible from the internet, but law enforcement must register an account with the site in order to allow Amazon to “authenticate” the requesting officer’s credentials before they can make requests.

Only time sensitive emergency requests can be submitted without an account, but this requires the user to “declare and acknowledge” that they are an authorized law enforcement officer before they can submit a request.

The portal does not display customer data or allow access to existing law enforcement requests. But parts of the website still load without needing to log in, including its dashboard and the “standard” request form used by law enforcement to request customer data.

The portal provides a rare glimpse into how Amazon handles law enforcement requests.

This form allows law enforcement to request customer data using a wide variety of data points, including Amazon order numbers, serial numbers of Amazon Echo and Fire devices, credit cards details and bank account numbers, gift cards, delivery and shipping numbers, and even the Social Security number of delivery drivers.

It also allows law enforcement to obtain records related to Amazon Web Services accounts by submitting domain names or IP addresses related to the request.

Assuming this was a bug, we sent Amazon several emails prior to publication but did not hear back.

Amazon is not the only tech company with a portal for law enforcement requests. Many of the bigger tech companies with millions or even billions of users around the world, like Google and Twitter, have built portals to allow law enforcement to request customer and user data.

Motherboard reported a similar issue earlier this month that allowed anyone with an email address to access law enforcement portals set up by Facebook and WhatsApp.


Source: Tech Crunch

Is your startup the next TikTok?

Editor’s note: Get this free weekly recap of TechCrunch news that any startup can use by email every Saturday morning (7 a.m. PT). Subscribe here.

And I don’t mean building an app that gets the world addicted to short-form videos. I mean, where you build a huge company that spans the world and then get turned into a political football.

The Bytedance-owned app developer still appears headed for a shutdown in the US, after the already convoluted talks stalled out this past week. Each national government appears to require local ownership of a new entity, as Catherine Shu details, and the business partners are each claiming ownership. It’s a zero sum global game now for control of data and algorithms.

On the other side of the world, Facebook was quick to state that it would not be pulling out of the European Union this week even if it is forced to keep EU user data local, as Natasha Lomas covered. The company was clarifying a recent filing it had made that seemed to threaten otherwise — it doesn’t want to get TikTok’d.

For startups with physical supply chains, existing tensions are squeezing business activity from Chimerica out into other parts of the world, as Brian Heater wrote about the topic for Extra Crunch this week. Here’s what one founder told him:

Many [companies] are considering manufacturing in areas like Southeast Asia and India. Vietnam, in particular, has offered an appealing proposition for a labor pool, notes Ho Chi Minh City-based Sonny Vu, CEO of carbon-fiber products manufacturer Arevo and founder of deep tech VC fund Alabaster. “We’re friendly [with] the Americans and the West in general. Vietnam, they’ve got 100 million people, they can make stuff,” Vu explains. “The supply chains are getting more and more sophisticated. One of the issues has been the subpar supply chain … it’s not as deep and broad as as other places like China. That’s changing really fast and people are willing to do manufacturing. I’ve heard from my friends trying to make stuff in China, labor’s always this chronic issue.”

Danny Crichton blamed nationalistic US policies for undermining the country’s long-term commitment to leading global free trade and threatening its competitive future, in a provocative rant last weekend. There’s truth to that, but the underlying truth is that globalization worked, it just hasn’t work as well as hoped for a lot of people in the US and some other parts of the world. In addition to phenomenon like China’s industrial engine, for example, those cross-border flows of money and technology have helped nurture the startup ecosystem in Europe.

Mike Butcher, who has been covering startups for TechCrunch from London since last decade, writes about a new report from Index Ventures about this trend.

It used to be the case that in order to scale globally, European companies needed to spend big on launching in the U.S. to achieve the kind of growth they wanted. That usually meant relocating large swathes of the team to the San Francisco Bay Area, or New York. New research suggests that is no longer the case, as the U.S. has become more expensive, and as the opportunity in Europe has improved. This means European startups are committing much less of their team and resources to a U.S. launch, but still getting decent results…. Between 2008-2014, almost two-thirds (59%) of European startups expanded, or moved entirely, to the U.S. ahead of Series A funding rounds. However, between 2015-2019, this number decreased to a third (33%).

The report also highlights the economic problem of dividing up markets into political blocks. “European corporates invest three-quarters (76%) less than their U.S. counterparts on software,” Butcher adds about the report. “And this is normally on compliance rather than innovation. This means European startups are likely to continue to look to the U.S. for exits to corporates.”

The pain from failing to trade will come home sooner or later to each government, as Danny observes. But that could be longer than your current company exists. Instead, now is the time to pick the markets you can win, and plan for a world where success has a lower ceiling. And hey, if you’re lucky, your national government could pick you as its winner!

Want $100m ARR? Fix your churn

We’ve been recapping key moments from the Extra Crunch Stage at Disrupt this week, here’s a key segment from a panel Alex Wilhelm hosted about how to achieve the $100m ARR dream, featuring Egnyte CEO Vineet Jain:

After explaining that in the early stages of building a SaaS company it’s common to focus more on adding new revenue than “plugging the holes at the bottom,” [Jain] added that as a company matures and grows, more focus has to be paid to managing churn and retention. He said that dollar-based retention is a key metric in the SaaS world that startups are valued by, meaning that after securing a customer, your ability to upsell that same account over a “defined window of time” really matters.

Noting the impacts of the COVID-19 pandemic and the fact that bonuses at Egnyte are tied to retention, “I say, managing churn is the new revenue,” he added. “Focus on that disproportionately more than you would focus on just top-line growth” … . Egnyte, Jain added, drives to just one or two metrics (net new MRR, or gross MRR adds and churn). “Everything that we’re doing, all of us [at Egnyte] have to be measured with that number to say, ‘How are we doing as a company?’” So if your startup is post-Series A, listen to what Jain says on managing churn. After all his company reached $100 million ARR, has a few dozen million in the bank, grew 22% in Q2 and is EBITDA positive.

Summer of tech IPOs continues with Root, Corsair Gaming and of course, Palantir

While public markets have waffled on tech stocks lately, the overall momentum of unicorn IPOs has continued.

Except, Danny may have slowed things down a bit for Palantir? Here are the key headlines from the week:

As tech stocks dip, is insurtech startup Root targeting an IPO? (EC)

Chamath launches SPAC, SPAC and SPAC as he SPACs the world with SPACs

Palantir publishes 2020 revenue guidance of $1.05B, will trade starting Sept 30th

Following TechCrunch reporting, Palantir rapidly removes language allowing founders to ‘unilaterally adjust their total voting power’

In its 5th filing with the SEC, Palantir finally admits it is not a democracy

How has Corsair Gaming posted such impressive pre-IPO numbers? (EC)

Even more info about the best investors for you

We’re making another big update to The TechCrunch List of startup investors who write the first checks and lead the scary rounds, based on thousands of recommendations that we’ve been receiving from founders. Here’s more, from Danny:

Since the launch of the List, we’ve seen great engagement: tens of thousands of founders have each come back multiple times to use the List to scout out their next fundraising moves and understand the ever-changing landscape of venture investing.

We last revised The TechCrunch List at the end of July 30 with 116 new VCs based on founder recommendations, but as with all things venture capital, the investing world moves quickly. That means it’s already time to begin another update.

To make sure we have the best information, we need founders — from new founders who might have just raised their VC rounds to experienced founders adding another round to their cap tables — to submit recommendations. Thankfully, our survey is pretty short (about two minutes), and the help you can give other founders fundraising is invaluable. Please submit your recommendation soon.

Since our last update in July, we have already had 840 founders submit new recommendations, and we are now sitting at about 3,500 recommendations in total now. Every recommendation helps us identify promising and thoughtful VCs, helping founders globally cut through the noise of the industry and find the leads for their next checks.

Around TechCrunch

Extra Crunch Live: Join Index Ventures VCs Nina Achadjian and Sarah Cannon Sept 29 at 2 pm EDT/11 am PDT on the future of startup investing

TC Sessions Mobility 2020 kicks off in two weeks

Announcing the final agenda for TC Sessions: Mobility 2020

Explore the global markets of micromobility at TC Sessions: Mobility

Don’t miss the Q&A sessions at TC Sessions: Mobility 2020

Across the week

TechCrunch

Calling Helsinki VCs: Be featured in The Great TechCrunch Survey of European VC

The highest valued company in Bessemer’s annual cloud report has defied convention by staying private

Human Capital: The Black founder’s burden

Thanks to Google, app store monopoly concerns have now reached India

Free VPNs are bad for your privacy

Extra Crunch

The Peloton effect

Edtech investors are panning for gold

3 founders on why they pursued alternative startup ownership structures

How Robinhood and Chime raised $2B+ in the last year

Dear Sophie: Possible to still get through I-751 and citizenship after divorce?

Equity: Why isn’t Robinhood a verb yet?

From Alex Wilhelm:

Hello and welcome back to Equity, TechCrunch’s VC-focused podcast (now on Twitter!), where we unpack the numbers behind the headlines.

This week Natasha MascarenhasDanny Crichton and your humble servant gathered to chat through a host of rounds and venture capital news for your enjoyment. As a programming note, I am off next week effectively, so look for Natasha to lead on Equity Monday and then both her and Danny to rock the Thursday show. I will miss everyone.

But onto the show itself, here’s what we got into:

Bon voyage for a week, please stay safe and don’t forget to register to vote.

Equity drops every Monday at 7:00 a.m. PDT and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.


Source: Tech Crunch

This Week in Apps: Redesigning the iOS 14 home screen, app makers form ‘fairness’ coalition, latest on TikTok ban

Welcome back to This Week in Apps, the TechCrunch series that recaps the latest OS news, the applications they support and the money that flows through it all.

The app industry is as hot as ever, with a record 204 billion downloads and $120 billion in consumer spending in 2019. People are now spending three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.

In this series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.

Top Stories

iOS 14 Home screen Customization Craze

The release of iOS 14 included one of the biggest updates to the iPhone’s user interface in years. Apps can now be stored off screen in the new App Library where they’re organized for you, as opposed to you being forced to categorize apps yourself into various folders. And Apple finally allows for home screen widgets — a development that left Android users snickering about how “behind” their iPhone-using counterparts have been all this time.

But as with iOS apps, Apple’s design constraints and rules around widgets mean there’s a standard that all widgets have to meet to be approved. As a result, widgets have a consistent look-and-feel, thanks to things like size limitations and other design guidelines. They can’t be stretched out indefinitely or moved all over the screen, either.

Apple may have originally envisioned widgets as a way for existing iOS apps to gain a larger presence on users’ home screens, while delivering key information like news, weather or stock updates, for example. But a handful of iOS developers instead built apps that allowed users to design widgets themselves — by selecting colors, fonts, sizes, backgrounds and what information the widget would display.

Meanwhile, TikTok users and other Gen Z’ers began teaching each other how to create custom icons for their apps using Apple’s Shortcuts app. These tutorials were starting to trend even before iOS 14’s release, but the addition of the App Library and widgets meant users could now finally customize their entire home screen. That prompted a more enthusiastic adoption of the icon customization technique.

On the Twitter hashtag #iOS14homescreen, users shared their creations — a showcase of creativity where home screens looked fully themed at last, with custom icons, widgets, decorative photos, matching wallpapers and more. The results have been fantastic.

And at the top of the App Store, there now sit a trio of must-have tools for this new era: Widgetsmith, Color Widgets and Photo Widget today continue to claim the top three spots on the free apps chart.

Users are also now demanding Apple to change how app shortcuts open. Currently, an app shortcut first launches Apple’s Shortcuts app, which then opens the target app. With the popularity of custom icons, users want that intermediate step cut out.

Apple is aware of the customization craze as it has in the days since iOS 14’s release run App Store editorial features about iOS 14’s design changes, suggested widgets to try, creative tools and more. It also featured apps at the top of the App Store, which are benefiting from the trend, like apps offering great widgets, like Fantastical, or those that are booming, like Pinterest — which recently broke its daily download record.

App makers team up to take on Apple and Google

A number of top app makers have banded together to fight against Apple’s control of its App Store and, to a lesser extent, Google’s control of the Play Store — a topic of increased regulatory scrutiny in recent months. Today, 13 app publishers, including Epic Games, Deezer, Basecamp, Tile, Spotify and others, have launched the Coalition for App Fairness.

The new organization formalizes efforts the companies already have underway that focus on either forcing app store providers to change their policies, or ultimately pushing the app stores into regulation.

On the coalition’s website, the group details its key issues, which include anti-competitive practices, like the app stores’ 30% commission structure, and the inability to distribute software to billions of Apple devices through any other means but the App Store, which the group sees as an affront to personal freedom.

Google allows apps to be side-loaded, so it’s not as much of a target on this front. In fact, much of the focus of the coalition’s efforts have to do with Apple’s business, given its stricter guidelines.

The group has also published a list of 10 “App Store Principles” it would like to see enacted industry-wide. These include the ability to distribute apps outside of app stores, protections from having their own data used against them to compete, timely access to developer documentation, the right to communicate with users through its app for legitimate business purposes, no requirements to use the app store’s payment systems, no requirements to pay unfair fees and more.

The website is also aiming to recruit new members to join the coalition. App makers who feel similarly oppressed by Apple’s practices are able to fill out a form to request to join.

Apple responded to the hardball tactics with a barrage of new material and data meant to highlight the benefits of its App Store platform. The company on Thursday revealed the number of rejections it enforces is quite low compared to the number of submissions. It said it rejected 150,000 apps in 2020 but sees 100,000 submissions per week. It also has removed more than 60 million user reviews it believed to be spam.

The company noted its Developer program has over 28 million developers worldwide, whose apps have seen over 50 billion promotions — meaning when a user sees an app Apple has promoted on the App Store, in emails, on social media or in other general advertising.

However, the backlash has also forced Apple to be more transparent about some of its until-now fairly secretive programs. For example, Apple has now published a page that clarifies how its Video Partner program works — a program that had before only been detailed via background conversations with reporters who then relayed the information to readers. The page reveals the program’s requirements and that over 130 premium subscription video entertainment providers have since joined. If the guidelines are followed, these providers can pay only a 15% commission to Apple instead of 20%.

Current members include Amazon Prime Video, Binge, Canadian Broadcasting Corporation (CBC), Claro, C More, DAZN, Disney+, Globo, HBO Max, Joyn, Molotov, MUBI, myCanal, STARZ and Viaplay, the website said.

TikTok deal chaos continues

No, seriously, what is going on with the TikTok deal? (We feel you, Walmart.)

The deal that Trump was poised to approve solved some but not all concerns by making Oracle a trusted technology partner responsible for hosting U.S. user data and ensuring other security requirements were in place. But issues around how the TikTok algorithm could be used to influence U.S. users or censor content were not addressed.

The ban got a week’s extension as a result of promising progress and the announcements that seemed to indicate the parties were in agreement on terms.

But this week, China jumped in to say it won’t approve a TikTok sale. In China Daily, an official English-language newspaper of the Chinese Communist Party, an editorial slammed the deal that would see Oracle and Walmart effectively taking over TikTok in the U.S. as one based on “bullying and extortion.”

At the same time, TikTok is chasing a legal means of preventing its ban in the U.S.

TikTok filed a motion to stop the Commerce Department from enforcing the Trump administration’s ban that would otherwise be set to start this weekend. The move came shortly after WeChat users were granted an injunction in a federal court last week that blocked the app from being banned. TikTok’s filing asks the court to set a hearing before the rules take effect at 11:59 PM on September 27, 2020. But unlike the WeChat case, TikTok is the one asking the court to stop the ban, not its users.

A federal judge said Thursday that the Trump administration must either delay the ban on U.S. app stores or file its legal response to defend the decision by 2:30 PM Friday. The Justice Department filed its opposition Friday, saying that U.S. user data being stored outside the country is a “significant” risk.  The judge will still need to rule on the injunction — that is, whether the ban should go into effect Sunday, as planned.

Stay tuned to TechCrunch for the latest on this never-ending saga.

Weekly News Round-up

Platforms

  • Google will increase its push for apps to give it a cut of in-app purchases. Following Apple’s lead, Google will begin to push harder to demand a cut of transactions on Android by enforcing a requirement for apps to use Google’s billing service, Bloomberg reports.
  • New Google Play Console arrives on November 2, 2020. Over 350K developers now use the new Play Console today. On November 2, it exits beta — meaning you’ll be redirected to the updated experience when you log in. The console features reorganized navigation, speed and performance improvements, personalized messaging, a new Publishing overview page, acquisition reports and more.
  • Apple temporarily waived App Store fees for Facebook’s online events. Facebook last month launched paid online events to help businesses impacted by the pandemic. But at the time, Apple wouldn’t waive its own fees. The company has now changed its mind, and will waive fees until December 31, but says this won’t apply to gaming creators.
  • Apple and Facebook fight over messaging. But all is not well between the two tech giants on other fronts. Now that Apple has lifted its rules over default apps for email and web browsing, Facebook is pushing the company to allow Messenger to become a default messaging app too.
  • iOS 14.0.1 and iPadOS 14.0.1 released. The update patches the bug that reset web browser and email apps back to Apple’s defaults after a restart, and other fixes.
  • iOS 14 adoption surpasses 25% in five days after release. According to data from Mixpanel, iOS 14 (including iPadOS 14) reached 25% of active devices by Monday, September 21. As of the time of writing, it has reached 30.7%.
  • Apple’s Swift comes to Windows. The programming language is available on Windows for the first time, six years after its debut on Apple platforms.
  • Schoolwork 2.1 beta released. The updated iPad app for teachers and students is now in beta. Apps that use the latest ClassKit will be more discoverable by teachers in Schoolwork.

Services

  • Amazon announces a gaming streaming service, Luna. A competitor to Microsoft xCloud and Google Stadia, Luna will allow gamers to stream titles to play across PC, Mac and iOS mobile web. Over 50 titles will be included at launch, including a Sonic game and Remedy Entertainment’s Control. Ubisoft titles will be available on subscription. Twitch integration will be a key selling point.
  • Microsoft launches Xbox remote play streaming on Android. This is not xCloud, but rather a rebrand of the service previously called Console Streaming. The games stream directly from your Xbox One console to your Android courtesy of Microsoft’s new Xbox app for Android.
  • UK launches a COVID-19 exposure notification app for England and Wales. Northern Ireland and Scotland had already launched official apps. All apps use smartphones’ Bluetooth radios to generate alerts of potential exposure to COVID-19.
  • Samsung TV+ comes to phones. Free, ad-supporting streaming service makes the leap to Samsung devices.
  • Adobe rolls out new ‘Liquid Mode’ in Adobe’s Acrobat Reader app for iOS and Android. The feature uses Adobe’s AI engine, Sensei, to analyze a PDF and automatically rebuild it for mobile devices. Adobe says it’s working on an API that will allow similar functionality for non-Adobe apps in the future.

Trends

  • Fintech apps top 1.2B installs worldwide in Q2 (report).
  • Time spent in education apps was up 90% year-over-year during the week of September 6, 2020, compared to last year, on a global basis. The numbers, via App Annie, were calculated on Android devices online. In the U.S., time spent was up 30%.
  • Home screen customization apps top the App Store. Top 20 iOS home screen customization apps reached at least 13.7 million installs and more than $1 million in consumer spending in the seven days following the iOS 14 release. Pinterest also broke its daily download record as users sought new inspiration.

Other News

  • Telepath launches a “kinder” social networking app. It aims to promote quality conversation and ban harassment and fake news. Easier said than done on today’s internet.
  • Child tips off security researchers about scam apps with 2.4 million downloads. The scam involved apps posing as entertainment, wallpaper images or music download apps targeting young users. Some served intrusive ads even when the app wasn’t active. Others charged users, gaining revenues of over $500K. The apps were available across iOS and Android.
  • Epic rejects Apple’s attempts to disparage its business. Apple tried to claim that interest in Fortnite declined 70% from October 2019 to July 2020. Epic said, no actually, daily active players grew 39% during those dates. The two sides are fighting over Apple’s right to commission Epic’s business in a continuing legal battle.

Funding and M&A (and IPOs)

  • Apple acquires Scout FM. Apple bought a startup called Scout FM that turns podcast listening into more of a traditional radio-like experience by leveraging the user’s listening history to know what sort of programming they like. Deal terms are unknown.
  • Epic Games acquires SuperAwesome. Epic acquired the kidtech pioneer whose digital engagement tools are used by 500 million kids per month across thousands of apps, including those from Lego, NBCU and Hasbro. Deal terms were not disclosed.
  • IRL app raises $16 million. Event discovery network IRL raised $16 million in Series B funding after refocusing its social calendar on virtual events during the pandemic. The move made the app, now with 5.5 million MAUs, accessible by a wider audience.
  • GoodRx IPO raises $1 billion+. GoodRx, an app that helps users comparison shop prices for prescription drugs, sold roughly 34.6 million shares at its IPO price to raise $1.14 billion at a valuation of $12.67 billion, sending its stock up 50%.
  • Robinhood raises $660 million. Stock trading app Robinhood raised $660 million in an extension of its Series G round announced last month when D1 Capital Partners invested $200 million. Robinhood is now valued at $11.7 billion.
  • Class for Zoom raises $16 million. Class for Zoom from ClassEDU is designed to make online teaching more engaging. The company was founded by former Blackboard CEO and former PrecisionHawk CEO Michael Chasen.
  • Mobile Premier League raises $90 million. Indian mobile gaming platform Mobile Premier League (MPL) raised $90 million as the company looks to expand its esports and gaming platform outside India.
  • Rappi raises over $300 million. Colombian delivery app Rappi raised over $300 million in a round from T. Rowe Price Associates and others.

Downloads

How could you not be customizing your iOS 14 home screen this week? The launch of the new mobile OS has delivered an entirely new category of apps — widget design tools. And alongside these apps, there are others that can help you get started creating a whole new look for your home screen. These could be creative tools, those for sourcing inspiration or those for building custom icons. Want a weekend project? These apps below can get you going:

  • Pinterest: Search for ideas and inspiration to get your motivation. Download wallpapers and other photos you may want to use with your icons.
  • Widgetsmith: The current No. 1 app lets you build all sorts of customized widgets in a range of colors and sizes.
  • Color Widgets: The current No. 2 app offers a customizable widget that can feature the date, time, day of the week and battery percentage for the top of your home screen.
  • Photo Widget: Simple: Another top app that lets you pick a single photo for placement on your home screen.
  • Motivation – Daily Quotes: A top 30 app lets you pin some daily inspirational quotes to your home screen.
  • Launcher and Launch Center Pro: these two apps include tools for creating custom icons.
  • PicsArt: For more creative types, PicsArt is great for sourcing photos and designing backgrounds and icons either from scratch or by remixing those others have already made.
  • Canva: The DIY design tool has added a collection of iOS home screen templates.
  • TuneTrack: If you want a Spotify widget, this app is your best option for now as no official widget is available.
  • Fonts: Why stop at the home screen? customize your keyboard theme to match your new design.
  • Fantastical: Now includes a dozen widgets for date, weather, calendar, events and more.
  • Etsy: Can’t DIY? Designers are turning to Etsy to sell packs of icons and widget cover photos that will let you create a beautiful home screen without doing all the creative work yourself.

 


Source: Tech Crunch

Postmates cuts losses in Q2 as it heads towards tie-up with Uber

Popular food delivery service Postmates is in the process of merging with Uber in a blockbuster $2.65 billion deal that would see it join forces with its food delivery competitor, Uber Eats. The deal remains under antitrust scrutiny, and has not yet been approved for closing. The deal is expected to close in the first half of 2021.

However, a new SEC filing posted after hours this Friday gives us a glimpse into how Postmates is faring in the new world of global pandemics and sit-in dining closures across the United States.

Postmates posted a loss of just $32.2 million in Q2, compared to a loss of $73 million in Q1, nearly cutting its cash burning in half. That compares to Uber Eats’ results, which showed a loss of $286 million in the first quarter of 2020 and a loss of $232 million in the second quarter — an improvement of roughly 20%, according to Uber’s most recent financial reports.

Altogether, Postmates lost $105.2 million in the first half of 2020, compared to a loss of $239 million in the same period of 2019.

Uber through its filing today also disclosed the cap table for Postmates in full detail for the first time. On a fully diluted basis, the largest shareholder in Postmates is Tiger Global, which owns 27.2% of the company. Following up is Founders Fund with 11.4%, Spark Capital with 6.9% and GPI Capital with 5.3%. At Uber’s $2.65 billion all-stock deal, that nets Tiger Global roughly $720 million and Founders Fund roughly $302 million, not including some stock preferences and dividends that certain owners of the company hold.

While Postmates and Uber continue to go through the antitrust review process at the federal level, the companies also face legal pressure in their own backyards. Uber noted in its filing today that it and Postmates face headwinds due to California’s AB 5 bill, which is designed to give additional employment protections to freelance workers. However, the company notes that such litigation “may not, in and of itself, give rise to a right of either party to terminate the transaction.”


Source: Tech Crunch

Daily Crunch: Reviewing the new Apple Watch

We’ve got an in-depth review of the Apple Watch Series 6, Apple gives Facebook a temporary break on App Store fees and Alexis Ohanian is raising a new fund. This is your Daily Crunch for September 25, 2020.

The big story: Reviewing the new Apple Watch

Brian Heater has already been writing about the Apple Watch Series 6, but now he’s published his full review.

His verdict? Well, the core product hasn’t changed dramatically, but he notes that the biggest new feature, blood oxygen monitoring, requires a good fit, which makes sizing issues with the Solo Loop extra awkward. He also suggests that what we’re seeing now is just the tip of the iceberg when it comes to monitoring functionality.

The verdict:

Taken as a whole, the Series 6 isn’t a huge leap forward over the Series 5 — and not really worth the upgrade for those who already own that recent vintage. But there are nice improvements throughout, augmented by good upgrades to watchOS that make the best-selling smartwatch that much better, while clearly laying the groundwork for Apple Watches of the future.

The tech giants

Apple is (temporarily) waiving its App Store fee for Facebook’s online events — This arrangement will last until December 31 and will not apply to gaming creators.

Twitter warns developers that their private keys and account tokens may have been exposed — Twitter has emailed developers warning of a bug that may have exposed sensitive data.

Google Meet and other Google services go down — Yesterday was a rough day for Google’s engineers.

Startups, funding and venture capital

Alexis Ohanian files for a new $150M fund, with a nod to his Olympian family — According to an SEC filing, Ohanian is raising a new fund, named 776 (the first Olympics were supposedly held in 776 B.C.E.).

Indonesian cloud kitchen startup Yummy gets $12 million Series B led by SoftBank Ventures Asia — Launched in June 2019, Yummy Corporation’s network of cloud kitchens now includes more than 70 facilities in Jakarta, Bandung and Medan.

HumanForest suspends London e-bike sharing service, cuts jobs after customer accident — The service suspension comes only a few months after HumanForest started the trial in North London.

Advice and analysis from Extra Crunch

Want to hire and retain high-quality developers? Give them stimulating work — With demand for developers on the rise, companies are under pressure to do everything they can to attract and retain talent.

Privacy data management innovations reduce risk, create new revenue channels — A new generation of infosec tools is needed to address the unique risks associated with the management of privacy data.

4 things to remember when adapting AI/ML learning models during a pandemic — New machine learning and AI-powered tools highlight a few pervasive challenges faced by both machines and the humans that create them.

(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Cambridge Analytica’s former boss gets 7-year ban on being a business director — Alexander Nix signed a disqualification undertaking earlier this month, which the U.K. government said yesterday it had accepted.

NASA commissions report to show its economic impact: $64B and 312K jobs — Perhaps anticipating budget pushback from the federal government, NASA has released its first-ever agency-wide economic report.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.


Source: Tech Crunch