Twitter’s POTUS account will reportedly be reset to zero followers when Biden takes over

In this country, we have a longstanding peaceful transfer of power for the executive office, even in the wake of the hardest-fought elections. Certain circumstances have led many to question whether the tradition will continue come January 20. Despite his very vocal protestations, however, the current president has agreed to step aside, should all of his legal maneuvers fall short (something that seems all but a certainty at this point).

There is, of course, nothing in the Constitution that offers guidance the peaceful transition of passwords — strangely, the forefathers of this country didn’t possess the foresight to predict Twitter . The service has already outlined what happens to Trump’s account when he leaves office. Namely, he loses the protections that come with being a political figure.

CEO Jack Dorsey noted this at last month’s congressional hearings, stating, “If an account suddenly is not a world leader anymore, that particular policy goes away.” But what of the incoming president? What will the transition look like for Biden? And what happens if Trump doesn’t willingly give up the official @Potus account as has also been suggested?

He hasn’t exactly been eager to accept the results of this election and he’s not the sort to willingly give up a platform — particularly one with 33 million followers (admittedly a fraction of Trump’s main account).

Nick Pacilio, of Twitter’s Communications, Government & News team, offered TechCrunch the following statement, on the matter: “Twitter has been in ongoing discussions with the Biden transition team on a number of aspects related to White House account transfers.”

The company, perhaps understandably, didn’t answer the question directly, but working with the incoming team is a simple enough way to circumvent any issues transferring more than one dozen accounts, as The Wall Street Journal notes. As has been reported, existing tweets will be deleted and the incoming administration will start from scratch — a net positive for the Biden team, given the…polarizing nature of the previous president’s feed.

According to Biden’s digital director, the POTUS and White House accounts will also reset to zero followers, marking a change over the Obama to Trump transition. Donald Trump’s personal Twitter account has already lost one prominent follower. Earlier this week, CEO Jack Dorsey unfollowed the president, along with other prominent politicians, including Biden and Vice President-elect Kamala Harris.


Source: Tech Crunch

Remembering the startups we lost in 2020

Even in a non-hell year, running a successful startup is a tremendous lift. After the events of 2020, however, no doubt many already lean businesses are hanging on by the skin of their teeth. For every company that saw increased interest in their offerings during the pandemic, there were several that simply couldn’t make it through the finish line.

We’ve put this list together for several years now. It’s not a fun task, but it seems worthwhile to commemorate the startups that have closed up shop over the past 12 months. (Some of them were acquired by larger companies before shutting down, but all of them began their life as startups, and it still felt worthwhile to mark the end of their stories.) It also offers an opportunity to examine those issues from a bit of distance to see if there are any broader takeaways for the community at large.

This year’s list is among the most diverse we’ve done, ranging from standard smaller-name closures to big blockbuster crashes like Quibi and Essential . For some, the pandemic was the final nail in the coffin, but in many cases, cracks in business models were already starting to surface well before COVID-19 ground the global economy to a screeching halt.

Atrium (2017-2020)

Total Raised: $75 million

Atrium, a 100-person legal tech startup founded by Justin Kan, shut down in March after failing to find an efficient way to replace the arduous systems of law firms. The startup even returned some of its $75.5 million in funding to its investors, including Andreessen Horowitz.

The shutdown comes after the platform had pivoted just months earlier, laying off in-house lawyers and turning into a clearer SaaS play. Ultimately, Atrium’s failure shows how difficult and unprofitable it could be to disrupt a traditional and complicated system.

The closure came just three years after it launched with the goal to build software for startups to navigate fundraising, hiring, acquisition deals and collaboration with their legal team.

Essential (2017-2020)

Total Raised: $330 million

Image Credits: Darrell Etherington

Big plans, big names and a boatload of money should have been enough to buy Essential a lengthy runway. Sure, Essential was entering a mature and oversaturated market, but the Playground-backed startup was doing so with $330 million in funding, a team of top industry executives and some genuinely innovative ideas.

When I spoke to the company at launch, an executive outlined a 10-year plan to become a major player in both the mobile and smart home categories. Ultimately, the company was able to eke out just under three years of life after coming out of stealth. And while it did give the world a promising handset, its connected home hub never arrived.

Timing, broader marketing issues and troubling allegations of sexual misconduct were all contributing factors that stopped Essential’s big plans dead in their tracks.

HubHaus (2016-2020)

Total Raised: $11.4 million

Image Credits: HubHaus

HubHaus, founded by Shruti Merchant, was a long-term housing rental platform rooted in the belief that adult dormitories would take off. The startup targeted working professionals in cities, and raised only around $11 million in known venture capital. When it came to raising a Series B, Merchant says the company struggled to close and lost investor interest due to WeWork’s failed IPO.

After then pivoting to a self-funded company, HubHaus was just finding footing when the coronavirus pandemic arrived in the United States, drastically hurting the rental market (as shown by Airbnb’s public struggles, as well). The housing company eventually decided to close down in September, leaving landlords, members and vendors in limbo and bringing on a fresh sweep of critique and controversy.

Affordable housing continues to be an issue in the Bay Area, and HubHaus’s departure from the scene underscores this truth.

Hipmunk (2010-2020)

Total Raised: $55 million

Image Credits: Hipmunk

Hipmunk, founded by Adam J. Goldstein and Reddit co-founder Steve Huffman, was one of the first travel aggregation platforms on the market. The company put together information on flights, hotels and car rental all into one place so consumers could compare and contrast prices with ease.

The focus was enough for the platform to get acquired by Concur, but now after four years, the travel startup shut down. Notably, the travel startup’s closure wasn’t necessarily tied to the coronavirus pandemic. The site officially went dark on January 23, months before lockdowns came to the United States.

IfOnly (2012-2020)

Total Raised: $51.4 million

Photo: Thomas Barwick/Getty Images

IfOnly had created a marketplaces of exclusive events — such as “goat yoga” — a business that faced obvious challenges during the pandemic. The startup was actually acquired by one of its investors, Mastercard, late last year, but the acquisition wasn’t announced until IfOnly revealed over the summer that it was shutting down.

Mastercard also said IfOnly’s team and technology are still part of its Priceless experience marketplace: “The IfOnly platform will continue to help advance our Priceless strategy and our combined team will be even better positioned and equipped to deliver exclusive experiences for cardholders globally.”

Mixer/Beam Interactive (2014-2020)

Total Raised: $520,000

Image Credits: Microsoft

Microsoft shut down its Twitch competitor Mixer this year, handing off its partnerships to Facebook Gaming. The service had its roots in the software giant’s acquisition of Beam Interactive shortly after the startup won TechCrunch’s Startup Battlefield in 2016.

Before giving up, Microsoft made some big investments in Mixer’s success, most notably signing streaming superstars Ninja and Shroud to exclusive deals. (They became free agents after the shutdown.) However, Microsoft’s gaming chief Phil Spencer said the company suffered from starting out “pretty far behind” the biggest players in the streaming market.

The Outline (2016-2020)

Total Raised: $10.2 million

Image Credits: The Outline

Despite a busy year of innovation and venture for news media platforms, The Outline, which branded itself as “the next generation version of the New Yorker” was shut down. The media site was started by Josh Topolsky and had an explicit focus on serving millennials with a digital-first news media brand.

The shutdown was part of a broader layoffs at Bustle Digital Group, which acquired the publication in 2019. Pre-acquisition, The Outline had already scaled back its editorial staff and refocused on freelance articles. (Input — a tech site that Topolsky founded for BDG — continues to publish.)

Periscope (2015-2020)

Periscope went out with more of a whimper than a bang. The startup was acquired by Twitter before it had even launched a product. With Meerkat bursting on the scene that year at SXSW, Twitter went on the offensive, buying the startup to build out its own live video offering.

Periscope’s run was decent as far as these things go, and its technology will live on as part of Twitter’s video offerings, even after the app is officially discontinued next March. But in the end, Periscope was a shell of its former self. In fact, this is a rare instance where the pandemic may have actually delayed its shutdown.

The company notes, “We probably would have made this decision sooner if it weren’t for all of the projects we reprioritized due to the events of 2020.”

PicoBrew (2010-2020)

Total Raised: $15.1 million

Image Credits: PicoBrew

The company made beer-brewing machines that used coffee pod-style PicoPaks, then expanded into other categories like coffee and tea, but never quite attracted enough customers to make the business viable. It sold its assets earlier this year to PB Funding Group — a group of lenders recruited by then-CEO Bill Mitchell in 2018 to keep it afloat.

It’s possible that PicoBrew will live on in some form, as PB Funding Group says it’s seeking buyers for the company’s patents and other intellectual property, and that it will keep the website running in the short term so that the machines don’t stop working.

Quibi (2018-2020)

Total Raised: $1.75 billion

Quibi CEO Meg Whitman speaks about the short-form video streaming service for mobile Quibi

Quibi CEO Meg Whitman speaks about the short-form video streaming service for mobile Quibi during a keynote address January 8, 2020 at the 2020 Consumer Electronics Show (CES) in Las Vegas, Nevada. (Photo by ROBYN BECK/AFP via Getty Images)

More so than any tech company in recent memory (with the possible exception of Theranos), Quibi’s existence feels like a fever dream. $1.75 billion in funding later and what do we have to show for it? “Fierce Queens,” a nature documentary about female animals. The HGTV-style program, “Murder House Flip.” And, of course, “The Shape of Pasta.” A show about pasta.

Early reports of the service’s demise seemed premature — if only because there was seemingly no way a company could burn through that much capital that quickly. By late-October, however, it was over. “All that is left now is to offer a profound apology for disappointing you and, ultimately, for letting you down,” founders Jeffrey Katzenberg and Meg Whitman wrote in an open letter.

Sometimes startup failures are bad timing. Sometimes it’s just plain bad luck. With Quibi, the diagnoses of what went wrong can be summed up in one word: everything.

Rubica (2016-2020)

Total Raised: $15 million

Rubica

Image Credits: Rubica

Rubica spun out of security company Concentric Advisors with the aim of offering tools that were more advanced than antivirus software, while still remaining accessible to individuals and small businesses. CEO and co-founder Frances Dewing said that when customers cut back on spending during the pandemic, the company tried to shift its focus to larger enterprise, but it failed to convince investors there was a business there.

“We were all really surprised given how relevant and needed this is right now,” she said. “Investors didn’t agree with that or see it in the same way.”

ScaleFactor (2014-2020)

Total Raised: $104 million

Businessman’s hands with calculator and cost at the office and Financial data analyzing counting on wood desk. Image Credits: Sarinya Pinngam/EyeEm / Getty Images

ScaleFactor was a startup claiming to offer artificial intelligence tools that could replace accountants for small businesses; it blamed the pandemic for cutting its revenue in half and forcing the company to shut down. However, former employees and customers told Forbes a different story — that ScaleFactor actually relied on human accountants (including an outsourced team in the Philippines) to do the work.

While it’s hardly unprecedented for a startup to fudge the truth about their level of automation versus human labor, this reportedly resulted in error-filled accounting for ScaleFactor clients. (Responding to a fact-checking email, former CEO Kurt Rathmann said the email was “filled with numerous factual inaccuracies and misrepresentation” and declined to comment further.)

Starsky Robotics (2015-2020)

Total Raised: $20 million

Self-driving trucks startup Starksy Robotics began with this first, and problematic truck. Image Credits: Starsky Robotics

“In 2019, our truck became the first fully-unmanned truck to drive on a live highway,” Starsky Robotics co-founder and CEO Stefan Seltz-Axmacher wrote in a Medium post in March. “And in 2020, we’re shutting down.” After five years and $20 million in funding, the autonomous trucking company shut its doors that month. It wasn’t for lack of ambition or demand — it seems safe to assume there’s still a bright future for self-driving trucks.

Ultimately, however, Starsky won’t be along for that ride — a fact Seltz-Axmacher blames largely on timing. A crowded market is certainly at play, as well, with countless companies currently pushing to bring autonomous technology to the road.

Stockwell/Bodega (2018-2020)

Total Raised: $10 million

stockwell bodega

Image Credits: Bryce Durbin

Founded in 2018 by ex-Googlers, Stockwell AI shut down after being unable to find business for its in-building smart vending machines that stocked everything from condoms to La Croix. The company blamed the “current landscape” (also known as the global pandemic we are experiencing) for its closure.

Stockwell AI, formerly known as Bodega, was well-funded and well-known, with more than $45 million in funding from investors that included NEA, GV, DCM Ventures, Forerunner, First Round and Homebrew. Still, even venture capital couldn’t make vending machines work well enough.

Trover (2011-2020)

Total Raised: $2.5 million

Image Credits: Trover

Another travel-focused startup bites the dust as the coronavirus limits the chance to safely explore the world (let alone your neighborhood). Trover, a photo-sharing hub for travelers acquired by Expedia, shut down in August. The startup was founded by Rich Barton and Jason Karas and was meant to connect people travelling to the same places. The startup had quite the life: it began out of the remains of TravelPost, a travel review site, and got scooped up by its parent company when it only had $2.5 million in funding. Unfortunately, its nine-year journey is over for now.


Source: Tech Crunch

MIT Media Lab names Dava Newman as new director

MIT’s famous Media Lab, the multidisciplinary idea factory that produces many a fascinating invention and influential thinker, has found a new director in its backyard after scouring the globe for candidates. Dava Newman, MIT professor of aeronautics and astronautics and former deputy administrator of NASA under Obama, will helm the intellectual hub.

The Media Lab is famed for its freewheeling techno-intellectual prowess, but for more than a year has been leaderless following the resignation of former head Joi Ito. Ito resigned when it was discovered that billionaire and alleged child sex trafficker Jeffrey Epstein had given funding and reportedly received special treatment and access to the Media Lab under his leadership.

The ensuing leadership search no doubt looked for, if not exactly new blood (Newman has been involved with MIT for decades) then certainly a break from the past. Out of 60 candidates, they interviewed 13 and ended up picking Newman for a variety of reasons.

“In a field of outstanding candidates, Professor Newman stood out for her pioneering research, wide range of multidisciplinary engagements, and exemplary leadership. She is a designer, a thinker, a maker, an engineer, an educator, a mentor, a convener, a communicator, a futurist, a humanist and, importantly, an optimist,” wrote Dean Hashim Sarkis in a letter announcing the appointment.

Coincidentally (or is it?), Newman just last week was a speaker at TC Sessions: Space, where she seemed to give a preview of her new responsibilities talking about the importance of inclusion in major efforts like NASA’s Artemis.

“It’s going to bring the scientists and engineers together, but we need the artists, we need the designers, they’re the visionaries,” she said. (If you missed the event, you can watch this and all our other panels on Extra Crunch.)

Newman seems to be starting off the job by emphasizing one of the best qualities a leader should have: listening to the people she’ll be leading.

“I plan to start by doing a lot of listening and learning,” she said in the MIT announcement. “I like to meet people where they are, and to encourage them to put all their great ideas on the table. I think that’s the best way to go forward, working with the whole community — faculty, students and staff — to tap into everyone’s creativity. I can’t wait to get started.”


Source: Tech Crunch

Gift Guide: TechCrunch’s Favorite Things of 2020

It goes without saying, but 2020 was a bad year for a lot of people.

For many, it was a year of stress, of sadness, and anxiety. It was a year of missing friends and family; of just getting to the next day, even as each day seemed to blur into the last.

As we’ve done at the end of each of the past few years, we invited our team to look back and highlight some of their “favorite things” — the things that, as we look back from the depths of December, put smiles on our faces, or helped us pass the time, or taught us some new skill. Most years this question feels like “What made your year better?” This year it felt more like “… What made your year suck less?”

Our definition of “things” on this list has always been incredibly fuzzy by design. “Things” can be whatever makes sense to the writer. “Things” can be podcasts, or songs, or movies, or people, or concepts. Some of these things are new to the world in 2020. Others are things that have been around for years (decades, even!), but popped back up in our lives this year. Whatever the case, we hope you find some inspiration; some new thread to pull, some new song to sing, or some new thing to love.


Zack Whittaker, Security Editor

WBGO 88.3FM

As a kid I used to fall asleep listening to the late-night talk show radio shows from my bedroom in England. These days I’m all about WBGO, a New Jersey public radio station broadcast from Times Square. It plays jazz all day, every day, and that’s about it. Jazz doesn’t want to talk about politics around the dinner table or post anti-vax conspiracy theories to Facebook. It’s perfect escapism from the news firehose. We have WBGO playing quietly on the radio in the kitchen throughout the day. And since it’s an easy listen, I often put it on as I work from my desk. I even bought a HomePod mini as an early Christmas treat so I can listen all day long.

Cross-stitching

Image Credits: Zack Whittaker

The TV dried up pretty early on and there wasn’t much else to do, so I took up cross-stitching. It’s easy to learn — similar to a Paint by Numbers but with sewing — and requires little skill so it’s ideal for me. It’s a fantastic way to wind down and forget about the actual dumpster fire of a year it’s been.


Natasha Mascarenhas, Reporter

Call Your Girlfriend (Podcast)

Image Credits: Call Your Girlfriend

In a year where every relationship is a long distance relationship, Call Your Girlfriend has been a must-listen podcast. It’s been running since 2014, but I only picked it up this year because I was looking for ways to think about adult friendships that are platonic. I think the topics put a lot of coronavirus fatigue into eloquent context, such as consent conversations when people have different risk tolerances, how to find joy in this time, the science behind friendship. The show, co-hosted by Aminatou Sow and Ann Friedman, describes itself as a “podcast for long-distance besties everywhere.” I’d add that it’s an exhale during a time where all of us are very, sometimes subconsciously, tense.

Graffeo coffee

San Francisco’s Graffeo Coffee is one of North Beach’s remaining treasures. The little coffee roaster was my bi-weekly stop during my quarantine sanity walks all throughout this year. And I still order the beans even though I’m not in SF anymore! Good people, small business, and get the beans whole and dark roasted.


Brian Heater, Hardware Editor

Waxahatchee Saint Cloud

Image Credits: Waxahatchee

Not to put too fine a point on it, but music might have saved my life this year. And thankfully there were some terrific albums this year — Lomelda, Thundercat, Denzel Curry, Open Mike Eagle and Death Valley Girls to name a few. But Waxahatchee’s latest was just a huge ray of country twang-infused pop-indie folk. Start with “Fire” and go from there.

Moby Dick by Herman Melville

Some things are worth revisiting throughout life. They’ll never change, but the lives we’ve led can’t help but profoundly impact our relationship to them. It’s been said that Moby Dick holds the secrets to the universe within its 135 chapters. But while Melville may have laid the groundwork for such revelation, it’s clear he couldn’t make heads or tails of the results. Moby Dick is a singular work in American literature. It’s profoundly strange and funny and disjoined and beautiful and sad. It’s also wildly, wildly weird. It’s a perfect quarantine companion.

Orba by Ariphon

Image Credits: Brian Heater

I’d been waiting to play with Artiphon’s Orba since meeting with the company back at CES 2020 (those weird and wild days when we used to jam humans into a room to look at products). The $99 gadget is probably the closest I’ve come so far to a device that can foster music creation among the non-musical. It’s also a terrific little time killer and great for blowing off a bit of steam between meetings.

Lodge 49

Maybe Lodge 49 is an uncynical critique of a deeply cynical time. It’s a goddamn ray of sunshine in a dark moment that was, naturally, too beautiful to live. Perhaps the (cancelled) AMC show is an inadvertent object lesson in appreciating what we had, rather than lamenting what we lost. Maybe some day it will return as a one-off Netflix season or a Kickstarter movie when everyone is on-board with the show three years from now and we’ll all be excited while bemoaning the fact that it just couldn’t capture the magic of the original.


Neesha A. Tambe, Startup Battlefield Editor and Head of Community

1-min dance parties

With very high risk parents and a doctor brother the COVID fear starts to settle in your bones. To keep the sad panda at bay, I started to do one minute dance parties in the morning. Just me and Spotify on random – no judgement, no expectations, just movement. If it feels hard to get started, start with your big toe and watch the good vibes start to flow 🙂 A little free and crazy dancing to start the day makes for a bright and beautiful day.

Baking

With the privilege of working from home, I’ve gotten very much into baking and cooking. I love love gifting cooked and baked goods – fresh bread, brownies, pumpkin tarts, sauces, soups etc. to my friends. It’s amazing how a little gift of food always brings an immediate smile to the faces of the people we care about! (Esp. if they are vegan lol)

Digital Phone Banking

It’s clear that we need to remain actively engaged to keep our democracy strong. I’m extremely grateful for digital autodialers that allow me to advocate for those that most need the support without actually having to be in specific place or outside. Not only is it our duty, but it makes me feel good to know that I am making a difference in my small way helping folks make it to the polls. It’s so fun to talk to people all across the country and connect with them on the humanitarian issues that matter most. Yay democracy!


Devin Coldewey, Writer

Picross/Nonograms

In a year when seemingly nothing was as it should be, I discovered the puzzle genre that I’ve been looking for all my life — and apparently it has been around just as long. Filling in the rows and columns according to the provided numbers is simple and peaceful, yet occupies my mind almost completely, allowing a safe, mobile dissociation from the perils of real life. The best one I’ve found is Konami’s Pixel Puzzle collection, which is free, easy to use, and has fun pixel art from retro games.

Tenet

Image Credits: Warner Bros.

Christopher Nolan’s latest isn’t the best movie I saw this year, but as with Inception, no one even tries to make movies like this except him, and I marvel at the pure plate-spinning audacity of his filmmaking. Maybe you think it’s pseudo-intellectual wankery, but… well, perhaps it is. But it’s a prime example of the species.

Hyori’s Bed & Breakfast

Image Credits: Netflix

After the heartbreak and disillusionment of Terrace House’s tragic end, we needed another gentle reality show showcasing the ordinary (yet still strange to me) everday lives of people in another country. I found Hyori’s Bed & Breakfast very late and it has filled the gap (though another Korean entry, Three Meals a Day, is also worthy). Featuring a retired pop star and her husband as they attempt to convert their home to a B&B, it’s funny, weird, and full of dogs and genuine human moments.


Henry Pickavet, Editorial Director

GT’s Strawberry Serenity Kombucha

Image Credits: GT’s Kombucha

I cannot leave a grocery store without scouring the beverage section for kombucha. And not just any kombucha. The sweet red label of a GT’s Strawbery Serenity kombucha must be in stock and ready for pillaging or it would have been a wasted trip. I have a problem. Signed, The Kombucha Bandit of Sacramento.

Willow.tv

Image Credits: Robert Cianflone / Getty Images

When I left Australia in 2010 after having lived there for three years, I brought back with me a love of cricket. Time zones, as well as virtually no one in the States to discuss it with, made it hard for me to keep track of what was happening on pitches all over the world. My subscription to Willow.tv almost fixes all of that. I’m still facing some sleepless nights as Australia takes on India in the summer tour Down Under, but at least I can watch it live.


Natasha Lomas, Senior Reporter

Fitness Blender

Image Credits: Fitness Blender

With many months of 2020 spent confined almost entirely to a one-bed apartment, with all gyms closed and a total ban on going outdoors for exercise, staying fit has required some changing up of the usual routines. To wit: I’ve found Fitness Blender’s gimmick-free training videos a total god-send. Now I almost look forward to HIIT! Thanks so much guys. Plus one more (related) positive vibe this year: My favorite yoga teacher, who lives in another city, started doing Zoom classes remotely — truly a silver lining to 2020’s virtual everything. Thx Chloe!

UberTape

Image Credits: Natasha Lomas

No, not a surveillance camera for safely riding in Ubers — UberTape is a brand of kinesiology tape that’s been another saving grace in an injury-prone year when I also discovered some new and unfun skin sensitivities (happily this tape is “hypoallergenic and latex free”).

What actually is kinesiology tape? It’s support tape for joints and muscle. I was introduced to it by my physiotherapist and can confirm it has made the difference between being able to train pain-free or not. It’s miraculous stuff — so long as you position it correctly (with the right amount of stretching). So whether 2020 has hit you with achilles tendonitis, shin splints, plantar fasciitis, tennis elbow or runners knee — and this year has surely hit most of us with some new and unusual injury (and plenty more besides) — I’m happy to report a little stretchy tape goes a long way. So thanks, UberTape, for helping make 2020 a little less painful.

The Wire (again)

I first watched The Wire about ten years ago when it was first screened on UK terrestrial TV. I remember taking a while to sink into it at first — Baltimore gang slang was pretty exotic (to a Brit) back then — but after a few episodes we were hooked on McNulty, D’Angelo, Omar & crew just like McNulty is hooked on Jameson and cheap bar thrills. The full five seasons were duly consumed and judged an incomparable master work.

A decade on and our 24/7 connected world is now one gigantic phone-enabled wiretap. (Nor do any of the mega corporations surveilling our every blink have a proper legal base, much like Lester didn’t for that last wiretap. Tsk.) The show was also prescient in pointing out the fragile business of reporting truth vs the tacky lure of fake news. Truly ahead of its time — before you even start in on the marvelous cast of characters and intricate societal portrait, showing how corrupt, stupid, vindictive, self-interested decisions by a handful of people in positions of power trickle down, again and again, wreaking misery on the next generation and condemning the already vulnerable to yet more suffering.

Rewatching The Wire at the end of 2020 has, fittingly enough, kept me sane through a second lockdown and Europe’s second (or third) waves of COVID-19, now

Image Credits: Natasha Lomas

with an unfestive holiday season fast approaching. I’m just sad they only made five seasons. Can someone please call David Simon?

My DIY training wall (and other projects)

Staying sane in lockdown has definitely meant keeping busy. So when not hard at work reporting for TechCrunch (or training for climbing), I’ve made sure to have a few creative projects on the go — including a fun collaborative writing gig with my friend (and former TCer, John Biggs). But the project that’s delivered the most tangible results (so far) is my DIY training wall — which is part training tool, part artwork (I can’t take art credit but painting the wall was my idea). Planning and making the board kept me busy through the first lockdown. Being able to use it for training circuits has kept me going through the second wave of gym closures, so I think that’s a good result.


Greg Kumparak, Editor

Hunt for the Wilderpeople

Image Credits: Madman films

This one was released in 2016, but somehow flew under my radar until it was added to Netflix in late 2020. Directed by the WAY TOO DAMNED TALENTED Taika Waititi (who also directed What We Do In The Shadows, JoJo Rabbit, and the best episode of The Mandalorian), it tells the tale of Ricky Baker, a defiant teen who reluctantly finds himself under the guardianship of new foster parents in the New Zealand bush. I can’t say much more without spoiling it, but Waititi managed to cram a whole lot of movie (and emotional ups and downs) into an hour and forty minutes. Skip the trailer and just dive in.

Jackbox Party Pack Series

Image Credits: Jackbox Games

I miss friends. I miss board games. I miss board games with friends. The Jackbox series, streamed over Zoom, brings back a little bit of that energy without requiring too much setup or explanation. Pick a game, fire up a zoom screen share, play. Each “box” has a handful of different games, and everyone plays using the phones they already have as controllers. There are 7 different boxes, and you can often find the older ones on sale. My favorite boxes are the ones that include Quiplash, Drawful, Fibbage, and, with the right group of trivia loving weirdos, Trivia Murder Party.


Darrell Etherington, Science Editor

Beer delivery

Image Credits: People’s Pint Brewery

Once a week, I get beer delivered to my home and it’s great. I rotate between a few local breweries, including Bandit Brewery, Halo Brewery, Left Field Brewery and People’s Pint Brewing Company. If you’re located in Toronto or the surrounding area, look them up and enjoy.

Brilliant Smart Home Control

Image Credits: Brilliant

These panels that replace either one switch or a bank of switches are fantastic for any smart home using most of the popular products, including Ecobee, Hue and Switch. They also act as video intercoms, and can automatically provide live feeds from your Ring doorbell when someone’s at the door.

Freewrite Traveler

Image Credits: Darrell Etherington

Astrohaus’ second device is a travel-friendly version of their e-ink typewriter. It’s great even if you’re only traveling as far as the backyard, as a lap-friendly focused writing device that has no real competition anywhere. It’s the cure for doomscrolling.

Twelve South HiRise

Image Credits: TwelveSouth

If you’re used to working from a notebook computer at an office, you probably had some kind of rise or monitor. At home, a stand like the adjustable Twelve South HiRise is clutch for comfort and ergonomics.


Romain Dillet, Writer

Thelma & Louise

The best way to escape from COVID reality and fight patriarchal societal structure at the same time. A masterpiece that will leave you speechless and push you to blaze your own trail across the desert.


Megan Rose Dickey, Senior Reporter

Tony’s Chocolonely Milk Chocolate Caramel Sea Salt

Image Credits: Tony’s Chocolonely

Tony’s Chocolonely has been my saving grace this year, and last year. And the year before that.

I’ve been a chocolate addict since I was a wee one — back when a Hershey’s chocolate bar only cost $0.35 at my local corner store. Tony’s Chocolonely costs a pricey $5.95 per bar, but it is so worth it.


Alex Wilhelm, Senior Editor

Reading books in the bath

This isn’t something that you can buy, but it’s something I have spent inordinate amounts of time doing this year. Reading is good, baths are good, and together they provide the perfect place to read lots in a one sitting without winding up on Twitter by accident.


Stacey Cohen, Strategic Sales and Partnerships

Zoom Yoga

The number one way I stayed sane this year was with the amazing opportunities to practice yoga with my favorite SF teachers, like Janet Stone, Rusty Wells, Jeremy Falk, Peter Walters, and Melody Pfeiffer just to to name a few. This gave me something to focus on (especially during these winter months of lockdown). Janet Stone in particular created a platform that basically became group therapy and such an amazing support system. Outdooryogasf saved my life while living alone during a pandemic! The innovation around yoga and creating zoom classes, integrating music, creating community was bar none the best experience for me in 2020.

Friday night zoom movie nights

I can’t believe I am still doing this a year later. Every Friday, my friends log in to watch movies together. Most of the time I fall asleep, but we’ve watched so many movies and it’s a great way to stay connected.

Image Credits: Tony Sala


Tony Sala, Director of Sales

New Family

While it was difficult to be separated from friends and family, the smile from a little one can melt your heart. Aria Bella born in the middle of the pandemic, May 2020.

The Great Outdoors

No, not the movie. The actual physical real world outdoors. For me in 2020, the great outdoors was a great escape (no, not another movie reference). A good ol breath of fresh air goes a long way towards positive mental health.


Bryce Durbin, Illustrator

Duolingo

Image Credits: Duolingo

I started using this app on a whim in January and kept going after I realized it was free (albeit ad-supported). The courses, built around sample sentences that test reading, speaking and hearing, introduce vocabulary and grammar with fun animated characters. Nothing can take the place of practicing the language with native speakers, but this is a good place to start.

What Had Happened Was (Podcast)

Image Credits: What Had Happened Was

The best new podcast of the year is two dudes talking, but not just any dudes: polymath Open Mike Eagle interviews legendary producer Prince Paul over the course of 12 episodes about the many varied projects of his 30-plus-year career. Whether you are deeply familiar with groups such as De La Soul and Handsome Boy Modeling School or are ready to dive in, these stories are fascinating.

Local pub trivia (Online)

A pub in my town would host trivia every Thursday, pre-pandemic. The same week things shut down, clever organizers cobbled together an online version using a YouTube stream and Google forms, attracting dozens more teams than could ever attend in person. The pub has recently shut down but the game goes on, now in its fortieth week. (My small team has yet to win.)


Safa Aliabadi, Events Partnerships

Peloton

Image Credits: Peloton

Since all the fitness classes that I used to take are no longer availabe (OrangeTheory, Barry’s, SoulCycle), the Peloton has kept me active and sane. I love the variety of classes it offers, from yoga to bootcamp. Also, being able to take a class at my schedule and convenience makes it even more convenient. It’s going to be hard to go back to a studio once (if ever) we’re back to normal.


Catherine Shu, Writer

Audiobooks read by Juliet Stevenson

I’ve depended on audiobooks for a lot of my reading over the past months and realized how rare a narrator like Juliet Stevenson is. She subtly uncovers depths of meaning in sentences, especially dialogue, without overpowering them with her own intepretation. Each phrase feels like it’s been lit from within.

I’m not the only one person who relied on Stevenson’s narration to mentally escape this year. In a Lithub article, Scott Spencer, who has spent more than 300 hours listening to Stevenson reading, wrote, “Even a fatuous idea becomes interesting as she has enlarges and illuminates it with her voice—that voice which is the audible expression of her profundity and humanity.” Fortunately for Stevenson’s fans, she is a prolific narrator, with over 180 titles listed on Audible. Her work spans many genres, so if you’re looking for somewhere to start, I highly recommend “The Paying Guests” by Sarah Waters.

Lovecraft Country

Lovecraft Country

Image Credits: HBO

“Lovecraft Country” is a show that stays with you for a long time after you watch it. Honestly, I kind of regret binge watching it, because in hindsight it would have been better to let each episode marinate in my head for a couple days before plowing back into the narrative.

If you’re in the same place, I highly recommend reading Kinitra Brooks’ reviews on The Root to help you unpack the show. Dr. Brooks is a literary scholar who focuses on Black women and genre fiction, and her essays explore each episode’s treatment of horror themes and historical context (though “historical” feels like the wrong word to use here because even though the show takes place in 1955, all of its commentary on racism is still highly relevant today). HBO’s official podcast, hosted by Ashley C. Ford and “Lovecraft Country” writer Shannon Houston, is also wonderful.

Warrior

Andrew Koji in "Warrior"

Image Credits: David Bloomer / HBO (opens in a new window)

Now that Cinemax has stopped producing original content, the future of “Warrior,” based on a concept developed by Bruce Lee, is unclear. I’m really hoping that it gains enough new viewers on HBO Max to warrant another season and tie up loose ends, because I’ve become emotionally invested in many of the characters.

There’s Ah Sahm (the lead, played by Andrew Koji), of course, but I also want to see how Young Jun (Jason Tobin) copes with finally gaining real power, and learn more about the women characters, especially Mai Ling (Dianne Doan) and Ah Toy (Olivia Cheng), whose motivations were really only hinted at in the first two seasons. As someone who grew up when yellowface was still routinely broadcast on TV, it’s extremely meaningful to see a show where the majority of the cast is Asian. I love how the show plays with language and accents to depict how the Chinese characters appear to one another, versus how to appear to white characters, and also how it deftly switches between honoring and subverting martial arts movie tropes.


Steve O’hear, Writer

Virtual events

I actually feel slightly guilty about this one — hey, I’m British, it’s what we do best — but the move away from in-person to virtual events has been an amazing leveler for me and net positive overall.

I use a wheelchair and have other physical challenges that make traveling for work more difficult and energy-sapping, so historically I’d only get to do one or two events per year as a moderator or speaker. That all changed in 2020 and by my count I’ve done well over 10 events, including high profile conferences like our own Disrupt, CogX and Slush. Ceilings are often broken when and in ways you least expect them to be.

Endlesss

Image Credits: Endlesss

Launched on March 31st, just as the U.K. and many other countries around the world first entered lockdown, Endlesss is a collaborative music making app (iOS and Mac) that combines software recreations of drum machines, samplers, synths and FX, with a “tap to loop” workflow that should be familiar to anyone who has used a looper pedal or loop-based sequencer.

What makes Endlesss different and exciting is the way these loops or riffs can be shared or remixed by others participating in your jam — essentially sending musical messages back and forth as if it were a chatroom. Unsurprisingly, for many (myself included), the app has been a creative, and dare I say, therapeutic outlet during the pandemic.


Anthony Ha, Senior Writer

Beyond a Steel Sky

As someone who grew up loving classic adventure games, I found this Apple Arcade title to be a near-perfect update of the old-school formula.

You play as Robert Foster, a man whose search for a missing child draws him back to a seemingly utopian city after years in the wilderness. The game is filled with colorful characters and locations (designed by “Watchmen” artist Dave Gibbons), with puzzles that rely less on ridiculous combinations of inventory items and more on conversation and hacking the various bits of technology around the city. The game is a sequel to the 25-year-old “Beneath a Steel Sky,” but I didn’t have a problem jumping in fresh, and although it’s a bit prone to crashing on my iPad, I’ve happy to endure a few bugs while exploring the fascinating world.

Geek’s Guide to the Galaxy

David Barr Kirtley’s science fiction-focused podcast has been around for more than a decade, and it’s been my favorite podcast for most of that time. My appreciation only increased this year, when I frequently found myself desperate to think about things other than the pandemic and the election.

The show’s in-depth author interviews and panel discussions allowed me to lose myself in hours of conversation about bad video game movies, or “book club” discussions of science fiction classics like “Dune.” (Dave was kind enough to ask me to join for an episode about one of my favorite books, “Foundation,” and that conversation was one of the highlights of my year. But now I can’t listen to the episode without hearing my dumb voice!)

Image Credits: Robin Roy Julius


Robin Roy Julius, Lead Software Engineer

Time

Working from home has allowed me to gain back time with my family. This was the silver lining to 2020 for me. I was able to spend more time with my family. There wasn’t time taken to travel to work and home. I was at my workplace at home. I could spend time with my wife and kids within 3 steps of my work area. It was sometimes rambunctious, noisy, loud, chaotic or all of the above, but it was well worth being able to spend more time with them.


Lucas Matney, Reporter

Future subscription

I’ve been paying for Future’s exercise plan subscription since covering the company’s Series B raise back in October. The app pairs you with a personal trainer who communicates with you over text and makes guided workout plans for you. The service’s $150/mo is certainly nothing to balk at, but during a year when gyms have shuttered and the amount of time I’ve spent inside my apartment skyrocketed, it’s grown a lot harder to draw boundaries inside my day and the app has done wonders helping me mentally carve out time to get active.

The weakness of the program is a lack of live feedback especially when it comes to safely pulling off a new lift or routine, but the key to making the most of the platform is asking more of your trainer in between sessions and getting that guidance. Paying for Future has been a luxury but it’s been a game changer these past few months and I’m hoping I can keep this quarantine habit going.

Luxury sweatpants

Image Credits: Outdoor Voices

By about early-April of this year, it was clear that comfort was king but that getting dressed up for the work day was a radical act of self care. I’ll admit, I’ve gone through ebbs and flows, but I eventually landed on a solution that skewed heavily towards comfort. I doled out some cash on some very comfy, activewear sweatpants from Outdoor Voices. I opted for the Sunday sweatpants during a sale and stocked up on a couple pairs. Spending as much on sweatpants as I would on some dress pants required some mental gymnastics to justify, but surviving 2020 is an exercise in flexibility.

Daily Latte

I got real lazy with coffee this year. Last year, I was hipstered to the nines with a great pour-over coffee setup including a gooseneck kettle and a Chemex. In early quarantine after nearly everything had shut down in SF, an afternoon trip to the coffee shop became one of the few moments in the day to clear my head and refocus my brain. That got expensive over time as my latte addiction grew, I also gained like 15 pounds which I can attribute to several bad habits. Fast forward to present and I’ve boarded the Nespresso train again after a hiatus, this time using a new machine from their Vertuo line which boasts double espresso shot pods which have been a godsend. I’ve been teaming a double shot with some oat milk frothed in one of their Aeroccino machines. Yum.

Atoms Masks

Image Credits: Atoms

I love these masks, they’re comfy, easy to clean and were a great upgrade from other face-hugging solutions. Lots of sizes and fun colors have made these a great option to inject some personality into pandemic wear.


Travis Bernard, Senior Director of Membership

Barry’s At-Home

Exercising during the pandemic hasn’t been easy. Gyms are closed, and most don’t have exercise machines at home. I’ve always been a big fan of Barry’s Bootcamp for HIIT exercise classes, and now they’ve brought the experience into your living room with Barry’s At-Home. The 45-minute virtual classes will get your heart rate up and help shed the pounds you put on in 2020. I’ve done well over 100 Barry’s At-Home classes this year, and it’s been a wonderful way to keep my mind and body optimized for performance.

National Parks Annual Pass

Digital detox was much needed in 2020. My wife and I had a chance to visit three national parks this year, and it was one of the best ways to get away from our devices. It’s amazing what a day of hiking will do for your mindfulness. The National Parks Annual Pass will run you $80 and gets you access to all the National Parks and Federal Recreational Lands.

 

 


Source: Tech Crunch

Singapore-based open finance startup Finantier gets backing from Y Combinator

Being “underbanked” doesn’t mean that someone lacks access to financial services. Instead, it often means they don’t have traditional bank accounts or credit cards. But in markets like Indonesia, many still use digital wallets or e-commerce platforms, creating alternative sources of user data that can help them secure working capital and other financial tools. Finantier, a Singapore-based open finance startup, wants to streamline that data with a single API that gives financial services access to user data, with their consent. It also includes machine-learning-based analytics to enable credit scoring and KYC verifications.

Currently in beta mode with more than 20 clients, Finantier is busy getting ready to officially launch. It announced today that it has been accepted into Y Combinator’s Winter 2021 startup batch. The startup also recently raised an undisclosed amount of pre-seed funding led by East Ventures, with participation from AC Ventures, Genesia Ventures, Two Culture Capital and other investors.

Finantier was founded earlier this year by Diego Rojas, Keng Low and Edwin Kusuma, all of whom have experience building products for fintech companies, with the mission of enabling open finance in emerging markets.

Open finance grew out of open banking, the same framework that Plaid and Tink are built on. Meant to give people more control over their financial data instead of keeping it siloed within banks and other institutions, users can decide to grant apps or websites secure access to information from their online accounts, including bank accounts, credit cards and digital wallets. Open banking refers mainly to payment accounts, while open finance, Finantier’s specialty, covers a larger gamut of services, including business lending, mortgages and insurance underwriting.

While Finantier is focusing first on Singapore and Indonesia, it plans to expand into other countries and become a global fintech company like Plaid. It’s already eyeing Vietnam and the Philippines and has established partnerships in Brussels.

Before launching Finantier, Rojas worked on products for peer-to-peer lending platforms Lending Club and Dianrong, and served as chief technology officer for several fintech startups in Southeast Asia. He realized that many companies struggled to integrate with other platforms and fetch data from banks, or purchase data from different providers.

“People are discussing open banking, embedded finance and so on,” Rojas, Finantier’s chief executive officer, told TechCrunch. “But those are the building blocks of something bigger, which is open finance. Particularly in a region like Southeast Asia, where about 60% to 70% of adults are unbanked or underbanked, we believe in helping consumers and businesses leverage the data that they have in multiple platforms. It definitely doesn’t need to be a bank account, it could be in a digital wallet, e-commerce platform or other service providers.”

What this means for consumers is that even if someone doesn’t have a credit card, they can still establish creditworthiness: For example, by sharing data from completed transactions on e-commerce platforms. Gig economy workers can access more financial services and deals by giving data about their daily rides or other types of work they do through different apps.

Building Southeast Asia’s financial infrastructure

Other open-banking startups focused on Southeast Asia include Brankas and Brick. Rojas said Finantier differentiates by specializing on open finance and creating infrastructure for financial institutions to build more services for end users.

The benefit of open finance for financial institutions is that they can create products for more consumers and find more opportunities for revenue sharing models. In Southeast Asia, this also means reaching more people who are underbanked or otherwise lack access to financial services.

While taking part in Y Combinator’s accelerator program, Finantier will also be participating in the Indonesia Financial Service Authority’s regulatory sandbox. Once it completes the program, it will be able to partner with more fintech companies in Indonesia, including bigger institutions.

There are 139 million adults in Indonesia who are underbanked or unbanked, said East Ventures co-founder and managing partner Wilson Cuaca.

The investment firm, which focuses on Indonesia, conducts an annual survey called the East Ventures Digital Competitiveness Index and found that financial exclusion was where one of the largest divides existed. There are significant gaps in between the number of financial services available in heavily populated islands like Java, where Jakarta is located, and other islands in the archipelago.

To promote financial inclusion and alleviate the economic impact of the COVID-19 pandemic, the government has set a goal for 10 million micro, small and medium-sized enterprises (MSMEs) to go digital by the end of the year. There are currently about eight million Indonesian MSMEs that sell online, representing just 13% of MSMEs in the country.

“Providing equal access to financial services will create multiplier effects to the Indonesian economy,” Cuaca told TechCrunch about East Ventures’ decision to back Finantier. “Currently, hundreds of companies work with their own unique solutions to bring financial services to more people. We believe Finantier will help them offer more products and services to this underserved section of the population.”

 


Source: Tech Crunch

Silicon Valley should reward zebras, not unicorns

Silicon Valley has a unicorn problem.

While no one is calling for startups with high valuations to go extinct, there ought to be a lot fewer of them. At least that’s what many young founders have concluded after looking at the trials and travails of billion-plus-dollar private companies.

A unicorn is a mythical animal, so investors expect magical results: Lightning growth, near-monopolies and a record-setter IPO yielding 100x or 1,000x returns. A “zebra” company is different. Zebras are real animals that have evolved to fill and thrive in a particular niche. Unlike unicorn companies, zebras are lean, efficient and consistent.

Exponential growth is neither the best nor the only way for businesses to operate.

Too often, a company’s name or perceived cachet — rather than its actual product or realistic business prospects — becomes the thing it is selling. For the most recent, and maybe most damning, example of this trend, look at WeWork .

The company’s 2019 failed IPO was the corporate debacle of the decade; few businesses since Enron have fallen so far so quickly. When the market got a chance to examine the unicorn, they discovered it was really a one-trick pony with a cardboard horn. Adam Neumann built his company for net worth, not actual value, and his employees and supporters paid the price. Then again, imagine if the IPO had been a success: How much of the company’s worth would have evaporated when COVID-19 rolled around in March?

Although most tech innovation requires venture capital in today’s economy, unicorns sometimes become case studies in taking too much of a good thing. Round after round of funding can, as in the case of WeWork, disguise rickety foundations and unsound business plans.

Earlier this month, the mobile video unicorn Quibi folded less than a year after its launch. Film and TV critics weren’t surprised, and neither were those few consumers who’d heard of the company.

Well before its ill-timed launch in early April, most observers knew it was a bad idea. So why did Quibi receive so much funding? The big names attached to the company, including Dreamworks co-founder Jeffrey Katzenberg and one-time HP CEO Meg Whitman, attracted investors who somehow didn’t realize that everything about the product, from its name to its pricing, was wrong.

What a unicorn offers isn’t as important as the fact that it’s a unicorn. The opposite of a unicorn company, to my mind, is a zebra company. They may be a little odd, they may not get the front-page headlines or breathless news coverage, but they’re built to last and built to do something.

Unicorns thrive so long as they remain in the enchanted forest of endless venture rounds; zebras tough it out in the savannas of the free market. A zebra company won’t become the next behemoth like Facebook or Amazon, but neither will it become the next Quibi or WeWork.

The emergence of zebra companies like Handshake and Turo, and to some extent corporations like Ben and Jerry’s and Patagonia, speaks to a broader change in our business and economic understanding. Even before the coronavirus shut down much of the world, endless growth was looking less and less attractive.

Instead of extracting ever more value from the economy, companies like Patreon realize that the same dollar can be earned multiple times as it circulates through the economy. One-way extraction of value is replaced with a circular flow of value. Exponential growth is neither the best nor the only way for businesses to operate.

For most of us, the new year will be a relief: 2020, over at last. But we shouldn’t neglect the opportunity to reflect on the past and plan for the future that a new year offers. The mistakes of WeWork and Quibi are all too easy to repeat; chances are that somewhere in Silicon Valley, a venture capitalist is giving too much money to a doomed business. We’ve been too focused on the unicorns. It’s time to give the zebras the attention they deserve.


Source: Tech Crunch

Fintech startups are increasingly focusing on profitability

Fintech startups have been massively successful over the past few years. The biggest consumer startups managed to attract millions — sometimes even tens of millions — of users and have raised some of the biggest funding rounds in late-stage venture capital. That’s why they’ve also reached incredible valuations.

After a few wild years of growth, fintech startups are starting to act more like traditional finance companies.

And yet, this year’s economic downturn has been a challenge for the current class of fintech startups: Some have grown nicely, while others have struggled, but the vast majority of them have changed their focus.

Instead of focusing on growth at all costs, fintech startups have been drawing a path to profitability. It doesn’t mean that they’ll have a positive bottom line at the end of 2020. But they’ve laid out the core products that will secure those startups over the long term.

Consumer fintech startups are focusing on product first, growth second

Usage of consumer products vary greatly with its users. And when you’re growing rapidly, supporting growth and opening new markets require a ton of effort. You have to onboard new employees constantly and your focus is split between product and corporate organization.

Lydia is the leading peer-to-peer payments app in France. It has four million users in Europe with most of them in its home country. For the past few years, the startup has been growing rapidly; engagement drives user signups, which drives engagement.

But what do you do when users stop using your product? “In April, the number of transactions was down 70%,” said Lydia co-founder and CEO Cyril Chiche in a phone interview.

“As for usage, it was obviously very quiet during some months and euphoric during other months,” he said. Overall, Lydia grew its user base by 50% in 2020 compared to 2019. When France wasn’t experiencing a lockdown or a curfew, the company beat its all-time high records across various metrics.

“In 2019, we grew all year long. In 2020, we’ve had very good growth numbers overall — but it should have been amazingly good during a normal year, without the month of March, April, May, November.” Chiche said.

In March and early April, Chiche didn’t know whether users would come back and send money using Lydia. Back in January, the company raised money from Tencent, the company behind WeChat Pay. “Tencent was ahead of us in China when it comes to lockdown,” Chiche said.

On April 30, during a board meeting, Tencent listed Lydia’s priorities for the rest of the year: Ship as many product updates as possible, keep an eye on their burn rate without firing people and prioritize product updates to reflect what people want.

“We’ve worked hard and shipped everything related to card payments, contactless mobile payments and virtual cards. It reflected the huge boost in contactless and e-commerce transactions,” Chiche said.

And it also repositioned the company’s trajectory to reach profitability more quickly. “The next step is bringing Lydia to profitability and it’s something that has always been important for us,” Chiche said.

Let’s list the most frequent revenue sources for consumer fintech startups such as challenger banks, peer-to-peer payment apps and stock-trading apps can be divided into three cohorts:

Debit cards

First, many companies hand customers a debit card when they create an account. Sometimes, it’s just a virtual card that they can use with Apple Pay or Google Pay. While there are some fees involved with card issuance, it also represents a revenue stream.

When people pay with their card, Visa or Mastercard takes a cut of each transaction. They return a portion to the financial company that issued the card. Those interchange fees are ridiculously small and often represent a few cents. But they can add up when you have millions of users actively using your cards to transfer money out of their accounts.

Paid financial products

Many fintech companies, such as Revolut and Ant Group’s Alipay, are developing superapps to serve as financial hubs that cover all your needs. Popular superapps include Grab, Gojek and WeChat.

In some cases, they have their own paid products. But in most cases, they partner with specialized fintech companies to provide additional services. Sometimes, they are perfectly integrated in the app. For instance, this year, PayPal has partnered with Paxos so that you can buy and sell cryptocurrencies from their apps. PayPal doesn’t run a cryptocurrency exchange, it takes a cut on fees.


Source: Tech Crunch

3 VCs discuss space junk and what else they’re betting on right now

Space may be the final frontier, but in terms of investment, VCs are just getting started. With that in mind during TC Sessions: Space 2020 last week, we spoke to three investors who’ve been actively funding what could become tomorrow’s biggest companies to learn where they might focus next.

Sustainability is a major issue for all of their portfolio companies.

Our guests — Tess Hatch of Bessemer Venture Partners, who has long focused on the commercialization of space; Mike Collett of Promus Ventures, a venture firm that invests in deep tech software and hardware companies; and Chris Boshuizen of the venture firm DCVC and a cofounder of Planet Labs — had a lot of intriguing observations on topics, including the dangers of orbital debris, space manufacturing, and how they’d rate the U.S. government when it comes to fostering space-related innovations.

For those who missed the event, we’ve posted a video of our conversation below.

Space junk could affect long-term sustainability

Hatch, who recently co-authored an informative piece on the topic, said there’s little consensus about whether space junk is a critical matter that deserves more regulatory attention or an issue that will resolve itself through tech advancements, even while startups like Astroscale and D-Orbit are focused on the issue. The commercial industry’s expectation seems to be that space companies can regulate themselves and launch constellations without leaving pieces of launch vehicles or rocket stages in space, she said.

For her part, Hatch said it’s something to potentially invest in within a “handful of years.” At the moment, she added, “it’s not at the top of my list just due to looking for a shorter return on my investment for my LPs in the fund.”

Collett and the others stressed that in the meantime, sustainability is a major issue for all of their portfolio companies. “Everybody wants to do their job as a corporate citizen to make sure they’re not leaving anything else up there that doesn’t need to be there. Indeed, Boshuizen noted that at Planet Labs, best practices were taken very seriously.

Still, Boshuizen noted concerns about newer capital sources that might be less focused on the issue of space debris. “I don’t think everyone necessarily has the same space background,” he said, explaining that “we’re seeing a lot of outside investment from new people joining the industry, which is exciting, but also they don’t really know how important this is [and] it’s important for people to realize that they’ve got to pay attention to this.”


Source: Tech Crunch

Google expands its cloud with new regions in Chile, Germany and Saudi Arabia

It’s been a busy year of expansion for the large cloud providers, with AWS, Azure and Google aggressively expanding their data center presence around the world. To cap off the year, Google Cloud today announced a new set of cloud regions, which will go live in the coming months and years. These new regions, which will all have three availability zones, will be in Chile, Germany and Saudi Arabia. That’s on top of the regions in Indonesia, South Korea, the U.S. (Las Vegas and Salt Lake City) that went live this year — and the upcoming regions in France, Italy, Qatar and Spain the company also announced over the course of the last twelve months.

Image Credits: Google

In total, Google currently operates 24 regions with 73 availability zones, not counting those it has announced but that aren’t live yet. While Microsoft Azure is well ahead of the competition in terms of the total number of regions (though some still lack availability zones), Google is now starting to pull even with AWS, which currently offers 24 regions with a total of 77 availability zones. Indeed, with its 12 announced regions, Google Cloud may actually soon pull ahead of AWS, which is currently working on six new regions.

The battleground may soon shift away from these large data centers, though, with a new focus on edge zones close to urban centers that are smaller than the full-blown data centers the large clouds currently operate but that allow businesses to host their services even closer to their customers.

All of this is a clear sign of how much Google has invested in its cloud strategy in recent years. For the longest time, after all, Google Cloud Platform lagged well behind its competitors. Only three years ago, Google Cloud offered only 13 regions, for example. And that’s on top of the company’s heavy investment in submarine cables and edge locations.


Source: Tech Crunch

Bolt adds $75M to its Series C, as the battle to rule online checkout continues

Bolt, a startup that offers online checkout technology to retailers, announced this morning that it has added $75 million to its Series C round, bringing the financing to a total of $125 million.

WestCap and General Atlantic led the new tranche, which Bolt CEO Ryan Breslow told TechCrunch was raised at around twice its Series C valuation. PitchBook pegs the company’s Series C at a post-money valuation of $500 million, implying that the Series C1 values Bolt at around $1 billion.

The company is calling the latest check its “Series C1.” Why not just call it a Series D? According to Breslow, Bolt’s future Series D will be much larger.

While Bolt’s creatively demarcated Series C1 is interesting, the capital event is in line with how the checkout space is growing in aggregate right now. There’s a lot of money being put to work on solving a particular e-commerce pain point.

Fast, a competing online checkout software provider, raised $20 million in March. And this June, Checkout.com, which is based in England but has a global stable of offices, raised $150 million at a $5.5 billion valuation.

Bolt, meanwhile, announced the first $50 million of its Series C in July. The company’s C1 event, therefore, represents not only the fourth major investment into checkout tech this year, but it also fits into a now-regular trend of fast-growing startups raising two checks in 2020 — companies like Welcome, Skyflow, AgentSync and Bestow also completed the feat this year.

But enough talking about its market. Let’s dig into what Bolt is building and why it just took on another truckload of cash.

Series C1

Bolt offers four connected services: checkout, payments, user accounts and fraud protection.

The company’s core offering is its checkout product, which it claims is both faster than comparable industry averages and has higher conversion rates. The startup’s payments and fraud services fits into its checkout universe by ensuring that transactions are real and that payments can be accepted. Finally, Bolt’s user accounts (shoppers are prompted to save their credentials when they first execute a purchase with the startup’s tech) boost the chance that someone who has checked out online using its tech will do so again in the future, helping Bolt to sell its service and ensure customers benefit from it.

The more shoppers that Bolt can attract, the more accounts it will have in the market feeding more data into its anti-fraud tool and checkout personalization technology.

And Bolt is reaching more online buyers, with the company claiming a roughly 10x gain of the number of people who have made accounts with its service this year. According to Breslow, the number was around 450,000 last December. It’s around 4.5 million now, he said, and Bolt expects the figure to reach 30 million next year.

Given the huge scale of its expected account creation, TechCrunch asked Breslow about his confidence interval in the number. He said 90%, thanks to Authentic Brands Group (ABG) linking up with Bolt, a deal that his company announced last month. Breslow said that ABG has 50 million shoppers; perhaps the 30 million figure is possible.

(Distribution for checkout tech is like oxygen, so competing companies in the space love to chat about their availability gains. Here’s Fast talking about being supported by WooCommerce from last week, for example. Fast declined to share processing growth metrics with TechCrunch after that announcement.)

Bolt’s historical shopper growth has paid dividends for its total transaction volume. The company told TechCrunch that it processed around $1 billion in transactions this year, up around 3.5x from its 2019 gross merchandise volume (GMV). That approximate pace of growth implies a roughly $286 million GMV result for Bolt last year; how far the company can scale that figure in 2021 will be our chief measuring stick for how well its ABG deal performs.

Breslow told TechCrunch that Bolt expects to 3x its GMV in 2021, which we read as implying a roughly $3 billion number.

But don’t just take that figure, apply a payment processing percentage and walk away with a revenue guess for Bolt. The company does make money from payments, but also from charging for its other services — like fraud protection — on a SaaS basis. So Bolt is a hybrid payments-and-software company, an increasingly popular model, though one that certain categories of software are slow to pick up on.

Underpinning Bolt’s plans to treble GMV and greatly expand its shopper network is its new capital. The $75 million cache of new dollars is going into handling market demand, moving upmarket and engineering, the company said. In short there’s a lot of in-market demand for better checkout tech — hence all the venture activity — and larger customers need more customizations and sales support. Bolt is going to spend on that.

Given that Bolt just reloaded, it would not be a surprise to see Fast or Checkout.com raise more capital in Q1 or Q2 of 2021. More when that happens.


Source: Tech Crunch