GGV’s Jeff Richards: ‘There is a level of resiliency in Silicon Valley that we did not have 10 years ago’

Earlier this week, GGV Capital’s Jeff Richards and Hans Tung joined TechCrunch for an Extra Crunch Live session. During our hour-long chat, we touched on startup profitability, the global venture capital scene, why GGV doesn’t have an office in Europe, how the venture industry is responding to its stark lack of diversity and other issues.

When it comes to useful bits of information, this was perhaps the most useful Extra Crunch Live discussion in which I’ve participated. One moment that stood out came early in the chat when we were talking about COVID-19-driven headwinds and tailwinds and how many startups might be in trouble. Richards said the following (emphasis via TechCrunch):

“You know, the one thing that’s been remarkable for me — I was in Silicon Valley as an entrepreneur in the ’99, 2000 dot-com bubble, and 9/11. I was here in ’08, ’09 — I think there is a level of resiliency in Silicon Valley that we did not have 10 years ago and 20 years ago. I don’t have data to point to that. But we have been saying now for a few months that we’ve been blown away at the level of maturity, calmness, perseverance [and] resiliency that our companies and the founders and management teams have. On an emotional level, it’s been very heartwarming, because you hope to back the kind of people that are building real companies that can withstand challenges.

I think the corollary to that is you’ve seen companies that raised a ton of money and were burning a ton of cash and weren’t building very good businesses, a lot of those frankly went under in Q1 or are going under now. They haven’t been able to raise more cash and they’re just kind of dead.”

Both Richards and Tung were positive about their own portfolio companies’ recent performance and financial health (cash position, really). But it appears that not only are their portfolios doing well, but other startups are a bit more solid than in previous downturns.

On the flip side, however, there is a separate cohort of startups that were running inefficiently before and are now perhaps unfundable. Reading both points in unison, it appears that the startup market is bifurcating between the companies that will come out of the COVID-19 era unwounded, and those that are suffering. And the companies that weren’t the most cash hungry probably have the highest chance of being in the first bucket.

There’s a lot more to get to. So hit the jump for the full video and audio, and a few more of the best bits from the transcript. (You can snag a cheap Extra Crunch trial here if you need one.)

Oh, and don’t forget to stay up to date on coming chats. There’s still a lot to do.

The full chat

Here’s the full video rewind. Our favorite bits of the transcript follow:


Source: Tech Crunch

As Q3 kicks off, four more companies join the $100M ARR club

Welcome back to our $100 million annual recurring revenue (ARR) series, in which we take irregular looks at companies that have reached material scale while still private. The goal of our project is simple: uncovering companies of real worth beyond how they are valued by private investors.


The Exchange is a daily look at startups and the private markets for Extra Crunch subscribers; use code EXCHANGE to get full access and take 25% off your subscription.


It’s all well and good to get a $1 billion valuation, call yourself a unicorn and march around like you invented the internet. But reaching material revenue scale means that, unlike some highly valued companies, you’re actually hard to kill. (And more valuable, and more likely to go public, we reckon.)

Before we dive into today’s new companies, keep in mind that we’ve expanded the type of company that can make it into the $100M ARR club to include companies that reach a $100 million annual run rate pace. Why? Because we don’t only want to collect SaaS companies, and if we could go back in time we’d probably draw a different box around the companies we are tracking.

$100M ARR or bust

If you need to catch up, you can find the two most recent entries in the series here and here. For everyone who’s current, today we are adding Snow Software, A Cloud Guru, Zeta Global and Upgrade to the club. Let’s go!

Snow Software

Just this week, Snow Software announced that it has crossed the $100 million ARR mark, according to a release shared with TechCrunch. The Swedish software asset management company has raised a few private rounds, including a $120 million private equity round in 2017. But, unlike many American companies that make this list, we don’t have a historical record of needing extensive private capital to scale.


Source: Tech Crunch

How Have I Been Pwned became the keeper of the internet’s biggest data breaches

When Troy Hunt launched Have I Been Pwned in late 2013, he wanted it to answer a simple question: Have you fallen victim to a data breach?

Seven years later, the data-breach notification service processes thousands of requests each day from users who check to see if their data was compromised — or pwned with a hard ‘p’ — by the hundreds of data breaches in its database, including some of the largest breaches in history. As it’s grown, now sitting just below the 10 billion breached-records mark, the answer to Hunt’s original question is more clear.

“Empirically, it’s very likely,” Hunt told me from his home on Australia’s Gold Coast. “For those of us that have been on the internet for a while it’s almost a certainty.”

What started out as Hunt’s pet project to learn the basics of Microsoft’s cloud, Have I Been Pwned quickly exploded in popularity, driven in part by its simplicity to use, but largely by individuals’ curiosity.

As the service grew, Have I Been Pwned took on a more proactive security role by allowing browsers and password managers to bake in a backchannel to Have I Been Pwned to warn against using previously breached passwords in its database. It was a move that also served as a critical revenue stream to keep down the site’s running costs.

But Have I Been Pwned’s success should be attributed almost entirely to Hunt, both as its founder and its only employee, a one-man band running an unconventional startup, which, despite its size and limited resources, turns a profit.

As the workload needed to support Have I Been Pwned ballooned, Hunt said the strain of running the service without outside help began to take its toll. There was an escape plan: Hunt put the site up for sale. But, after a tumultuous year, he is back where he started.

Ahead of its next big 10-billion milestone mark, Have I Been Pwned shows no signs of slowing down.

‘Mother of all breaches’

Even long before Have I Been Pwned, Hunt was no stranger to data breaches.

By 2011, he had cultivated a reputation for collecting and dissecting small — for the time — data breaches and blogging about his findings. His detailed and methodical analyses showed time and again that internet users were using the same passwords from one site to another. So when one site was breached, hackers already had the same password to a user’s other online accounts.

Then came the Adobe breach, the “mother of all breaches” as Hunt described it at the time: Over 150 million user accounts had been stolen and were floating around the web.

Hunt obtained a copy of the data and, with a handful of other breaches he had already collected, loaded them into a database searchable by a person’s email address, which Hunt saw as the most common denominator across all the sets of breached data.

And Have I Been Pwned was born.

It didn’t take long for its database to swell. Breached data from Sony, Snapchat and Yahoo soon followed, racking up millions more records in its database. Have I Been Pwned soon became the go-to site to check if you had been breached. Morning news shows would blast out its web address, resulting in a huge spike in users — enough at times to briefly knock the site offline. Hunt has since added some of the biggest breaches in the internet’s history: MySpace, Zynga, Adult Friend Finder, and several huge spam lists.

As Have I Been Pwned grew in size and recognition, Hunt remained its sole proprietor, responsible for everything from organizing and loading the data into the database to deciding how the site should operate, including its ethics.

Hunt takes a “what do I think makes sense” approach to handling other people’s breached personal data. With nothing to compare Have I Been Pwned to, Hunt had to write the rules for how he handles and processes so much breach data, much of it highly sensitive. He does not claim to have all of the answers, but relies on transparency to explain his rationale, detailing his decisions in lengthy blog posts.

His decision to only let users search for their email address makes logical sense, driven by the site’s only mission, at the time, to tell a user if they had been breached. But it was also a decision centered around user privacy that helped to future-proof the service against some of the most sensitive and damaging data he would go on to receive.

In 2015, Hunt obtained the Ashley Madison breach. Millions of people had accounts on the site, which encourages users to have an affair. The breach made headlines, first for the breach, and again when several users died by suicide in its wake.

The hack of Ashley Madison was one of the most sensitive entered into Have I Been Pwned, and ultimately changed how Hunt approached data breaches that involved people’s sexual preferences and other personal data. (AP Photo/Lee Jin-man, File)

Hunt diverged from his usual approach, acutely aware of its sensitivities. The breach was undeniably different. He recounted a story of one person who told him how their local church posted a list of the names of everyone in the town who was in the data breach.

“It’s clearly casting a moral judgment,” he said, referring to the breach. “I don’t want Have I Been Pwned to enable that.”

Unlike earlier, less sensitive breaches, Hunt decided that he would not allow anyone to search for the data. Instead, he purpose-built a new feature allowing users who had verified their email addresses to see if they were in more sensitive breaches.

“The purposes for people being in that data breach were so much more nuanced than what anyone ever thought,” Hunt said. One user told him he was in there after a painful break-up and had since remarried but was labeled later as an adulterer. Another said she created an account to catch her husband, suspected of cheating, in the act.

“There is a point at which being publicly searchable poses an unreasonable risk to people, and I make a judgment call on that,” he explained.

The Ashely Madison breach reinforced his view on keeping as little data as possible. Hunt frequently fields emails from data breach victims asking for their data, but he declines every time.

“It really would not have served my purpose to load all of the personal data into Have I Been Pwned and let people look up their phone numbers, their sexualities, or whatever was exposed in various data breaches,” said Hunt.

“If Have I Been Pwned gets pwned, it’s just email addresses,” he said. “I don’t want that to happen, but it’s a very different situation if, say, there were passwords.”

But those remaining passwords haven’t gone to waste. Hunt also lets users search more than half a billion standalone passwords, allowing users to search to see if any of their passwords have also landed in Have I Been Pwned.

Anyone — even tech companies — can access that trove of Pwned Passwords, he calls it. Browser makers and password managers, like Mozilla and 1Password, have baked-in access to Pwned Passwords to help prevent users from using a previously breached and vulnerable password. Western governments, including the U.K. and Australia, also rely on Have I Been Pwned to monitor for breached government credentials, which Hunt also offers for free.

“It’s enormously validating,” he said. “Governments, for the most part, are trying to do things to keep countries and individuals safe — working under extreme duress and they don’t get paid much,” he said.

“There have been similar services that have popped up. They’ve been for-profit — and they’ve been indicted.”
Troy Hunt

Hunt recognizes that Have I Been Pwned, as much as openness and transparency is core to its operation, lives in an online purgatory under which any other circumstances — especially in a commercial enterprise — he would be drowning in regulatory hurdles and red tape. And while the companies whose data Hunt loads into his database would probably prefer otherwise, Hunt told me he has never received a legal threat for running the service.

“I’d like to think that Have I Been Pwned is at the far-legitimate side of things,” he said.

Others who have tried to replicate the success of Have I Been Pwned haven’t been as lucky.

“There have been similar services that have popped up,” said Hunt. “They’ve been for-profit — and they’ve been indicted,” he said.

LeakedSource was, for a time, one of the largest sellers of breach data on the web. I know, because my reporting broke some of their biggest gets: music streaming service Last.fm, adult dating site AdultFriendFinder, and Russian internet giant Rambler.ru to name a few. But what caught the attention of federal authorities was that LeakedSource, whose operator later pleaded guilty to charges related to trafficking identity theft information, indiscriminately sold access to anyone else’s breach data.

“There is a very legitimate case to be made for a service to give people access to their data at a price.”

Hunt said he would “sleep perfectly fine” charging users a fee to access their data. “I just wouldn’t want to be accountable for it if it goes wrong,” he said.

Project Svalbard

Five years into Have I Been Pwned, Hunt could feel the burnout coming.

“I could see a point where I would be if I didn’t change something,” he told me. “It really felt like for the sustainability of the project, something had to change.”

He said he went from spending a fraction of his time on the project to well over half. Aside from juggling the day-to-day — collecting, organizing, deduplicating and uploading vast troves of breached data — Hunt was responsible for the entirety of the site’s back office upkeep — its billing and taxes — on top of his own.

The plan to sell Have I Been Pwned was codenamed Project Svalbard, named after the Norweigian seed vault that Hunt likened Have I Been Pwned to, a massive stockpile of “something valuable for the betterment of humanity,” he wrote announcing the sale in June 2019. It would be no easy task.

Hunt said the sale was to secure the future of the service. It was also a decision that would have to secure his own. “They’re not buying Have I Been Pwned, they’re buying me,” said Hunt. “Without me, there’s just no deal.” In his blog post, Hunt spoke of his wish to build out the service and reach a larger audience. But, he told me, it was not about the money

As its sole custodian, Hunt said that as long as someone kept paying the bills, Have I Been Pwned would live on. “But there was no survivorship model to it,” he admitted. “I’m just one person doing this.”

By selling Have I Been Pwned, the goal was a more sustainable model that took the pressure off him, and, he joked, the site wouldn’t collapse if he got eaten by a shark, an occupational hazard for living in Australia.

But chief above all, the buyer had to be the perfect fit.

Hunt met with dozens of potential buyers, and many in Silicon Valley. He knew what the buyer would look like, but he didn’t yet have a name. Hunt wanted to ensure that whomever bought Have I Been Pwned upheld its reputation.

“Imagine a company that had no respect for personal data and was just going to abuse the crap out of it,” he said. “What does that do for me?” Some potential buyers were driven by profits. Hunt said any profits were “ancillary.” Buyers were only interested in a deal that would tie Hunt to their brand for years, buying the exclusivity to his own recognition and future work — that’s where the value in Have I Been Pwned is.

Hunt was looking for a buyer with whom he knew Have I Been Pwned would be safe if he were no longer involved. “It was always about a multiyear plan to try and transfer the confidence and trust people have in me to some other organizations,” he said.

Hunt testifies to the House Energy Subcommittee on Capitol Hill in Washington, Thursday, Nov. 30, 2017. (AP Photo/Carolyn Kaster)

The vetting process and due diligence was “insane,” said Hunt. “Things just drew out and drew out,” he said. The process went on for months. Hunt spoke candidly about the stress of the year. “I separated from my wife early last year around about the same time as the [sale process],” he said. They later divorced. “You can imagine going through this at the same time as the separation,” he said. “It was enormously stressful.”

Then, almost a year later, Hunt announced the sale was off. Barred from discussing specifics thanks to non-disclosure agreements, Hunt wrote in a blog post that the buyer, whom he was set on signing with, made an unexpected change to their business model that “made the deal infeasible.”

“It came as a surprise to everyone when it didn’t go through,” he told me. It was the end of the road.

Looking back, Hunt maintains it was “the right thing” to walk away. But the process left him back at square one without a buyer and personally down hundreds of thousands in legal fees.

After a bruising year for his future and his personal life, Hunt took time to recoup, clambering for a normal schedule after an exhausting year. Then the coronavirus hit. Australia fared lightly in the pandemic by international standards, lifting its lockdown after a brief quarantine.

Hunt said he will keep running Have I Been Pwned. It wasn’t the outcome he wanted or expected, but Hunt said he has no immediate plans for another sale. For now it’s “business as usual,” he said.

In June alone, Hunt loaded over 102 million records into Have I Been Pwned’s database. Relatively speaking, it was a quiet month.

“We’ve lost control of our data as individuals,” he said. But not even Hunt is immune. At close to 10 billion records, Hunt has been ‘pwned’ more than 20 times, he said.

Earlier this year Hunt loaded a massive trove of email addresses from a marketing database — dubbed ‘Lead Hunter’ — some 68 million records fed into Have I Been Pwned. Hunt said someone had scraped a ton of publicly available web domain record data and repurposed it as a massive spam database. But someone left that spam database on a public server, without a password, for anyone to find. Someone did, and passed the data to Hunt. Like any other breach, he took the data, loaded it in Have I Been Pwned, and sent out email notifications to the millions who have subscribed.

“Job done,” he said. “And then I got an email from Have I Been Pwned saying I’d been pwned.”

He laughed. “It still surprises me the places that I turn up.”

Related stories:


Source: Tech Crunch

Velodyne becomes latest tech company to go public using a SPAC, eschewing the traditional IPO path

Velodyne Lidar, the leading supplier of a sensor widely considered critical to the commercial deployment of autonomous vehicles, said Thursday it has struck a deal to merge with special-purpose acquisition company Graf Industrial Corp., with a market value of $1.8 billion.

The company said it was able to raise $150 million in private investment in public equity, or PIPE, from new institutional investors as well as existing shareholders of Graf Industrial. Through the transaction, Velodyne will have about $192 million in cash on its balance sheet.

Velodyne’s founder David Hall along with backers Ford, Chinese search engine Baidu, Hyundai Mobis and Nikon Corp. will keep an 80% stake in the combined company. Hall will become executive chairman and Anand Gopalan will keep his CEO position.

The merger is expected to close in the third quarter of 2020. The combined company will remain on the NYSE and trade under a new ticker symbol VLDR following the close of the business combination, Velodyne said.

The agreement marks the latest company to turn to SPACs in lieu of a traditional IPO process. Earlier this week, online used car marketplace startup Shift Technologies announced an agreement to merge with SPAC Insurance Acquisition Corp. The newly combined company will be listed on NASDAQ under a new ticker symbol. Nikola Motor also went public via a SPAC earlier this year.

Velodyne will become a publicly traded company amid a period of consolidation in the broader autonomous vehicle industry. Startups, automakers and tech giants have extended their timelines in the capitally intensive pursuit of developing and deploying AVs. Some startups have been swallowed up by larger companies, while others have become defunct. It has also prompted automakers in the past 18 months to shift more resources and attention toward advanced driver assistance systems in passenger cars, trucks and SUVs.

Lidar is perhaps one of the most crowded sub categories in the autonomous vehicle industry. Lidar is a sensor that measures distance using laser light to generate highly accurate 3D maps of the world around the car. The sensor is considered by most in the self-driving car industry a key piece of technology required to safely deploy robotaxis and other autonomous vehicles.

Velodyne is best known for its “KFC bucket” spinning-laser lidar. The design was inspired by sensor failures in vehicles competing in the DARPA Grand Challenge in 2004. Hall developed the spinning laser lidar and sold the sensors to teams competing in a future autonomous vehicle DARPA competition. The KFC buckets were the go-to lidar sensors for companies working on autonomous vehicles. Waymo, back when it was just the Google self-driving project, even used Velodyne LiDAR sensors until 2012.

However, Spinning lidar units are expensive and mechanically complex. It spurred a new generation of lidar startups to try new approaches. Today, there are dozens of lidar companies — some counts track upwards of 70 — trying to convince automakers and AV developers to use their sensors. And they’re all aiming for Velodyne.

This new generation of companies has prompted Velodyne to evolve, as well. The company announced at CES 2020 in January new sensors, including a tiny $100 lidar unit called Velabit, as well the VelaDome and a software product called Vella.

“There’s no argument about the market opportunity for lidar,” Gopalan told TechCrunch reporter Devin Coldewey back in January. “I think the right conversation is about what you want to do with it. Others are focused on level 2+ or 3 [autonomy, i.e. above simple driver assistance] — what we want to do is short-circuit that approach. The only reason it’s not being adopted at lower levels is price. If I say you can have lidar for a hundred dollars, of course you’re going to use it. Under a hundred dollars, you can’t even imagine the applications you open up: drones, home robotics, sidewalk robots.”

The company has spent the past several years focused on reducing the cost of its lidar, as well as diversifying its portfolio. The Velabit is just one example of the company’s efforts to lock in customers outside of the AV industry. The small sensor doesn’t have the capabilities needed for autonomous vehicles. Instead, Velodyne sees an application for the sensor to be used on smaller industrial robots.


Source: Tech Crunch

Project M acquires punk rock satire site The Hard Times

Matt Saincome knows that compared to many of the startup acquisitions that we write about on TechCrunch, selling a website for a little over $1 million (mostly cash, with a little stock) isn’t a huge deal.

“But in the world of punk comedy media? Whoo boy!” he said.

Saincome is happy to poke fun at himself — he is the co-founder and CEO of a satirical punk news website, after all — but he also sounded genuinely proud of what he’s built with The Hard Times. He never raised outside funding, and while there have been acquisition offers in the past, he was always afraid that they might threaten the site’s voice.

“I had always been the financial backstop,” Saincome told me. Still, at a certain point, “That started to become irresponsible.”

So he’s happy that there will be a bit of a financial windfall (not to mention health care and benefits) for himself, his co-founder and editor in chief Bill Conway and their editorial staff, plus a pay bump for freelancers. He also suggested that the acquisition will allow The Hard Times to invest more seriously in its editorial strategy, for example by building out its podcast network.

“If you like The Hard Times, it’s just going to be The Hard Times on steroids,” he said. “It’s very much the same direction, but better and secured.”

The acquiring company is Project M Group, a digital media and e-commerce company founded in 2016 that has also acquired Revolver Magazine and Inked Magazine.

Here’s how founder and CEO Enrique Abeyta laid out the Project M model: “We go out and acquire existing media properties with an audience, and we reinvigorate or relaunch or put some capital behind them to grow those audiences. Then we tie that into a vertically integrated e-commerce platform.”

After all, it’s no secret that many online publishers have struggled to make the digital advertising model work. And given Revolver’s focus on heavy metal and rock, and Inked’s focus on tattoos, there are some natural commerce opportunities — for example, if you’re reading an article about Metallica, you might also want to buy a Metallica T-shirt.

At the same time, Abeyta emphasized the importance of authenticity in the publications that Project M acquires, and he said that post-acquisition, they don’t become any more corporate.

“I’m a tattooed, mohawked guy running this company out of my house in Cave Creek, Arizona,” he said. “We’re the least corporate thing on Planet Earth … Our whole vibe when we partner with these entrepreneurs is, we want to work with the entrepreneur and the brand.”

So the entire Hard Times team, including Saincome, will remain involved. At the same time, the site’s old parent company will continue to own and operate the related gaming and technology site Hard Drive.

Saincome said he’ll also continue running OutVoice, a separate startup building freelancer payment tools. In fact, one of the results of the deal is that all of Project M’s publications will be using OutVoice.

“My role at Hard Times is going to be the visionary, brand-builder sort of guy,” he said. That should free up a lot of his time and energy from worrying about day-to-day business concerns, and he promised, “I’m going to take that energy and pump it back right into OutVoice .”


Source: Tech Crunch

Extra Crunch Live: Join Jason Green of Emergence Capital for a live Q&A on July 9 at 2pmET/11amPT

2020 may feel so far like the year of living dangerously, but for many of us it has also been the year of working remotely. Led by the stick of COVID-19 rather than the carrot of the benefits of more flexible work life, a lot of organizations, and the people who power them, have only relatively recently started to get to grips with this concept. But some have had their finger on the pulse of cloud computing and how that relates to enterprise productivity for years.

Come join us on Thursday, July 9, at Extra Crunch Live to hear from Jason Green of Emergence Capital, one of the leading investors (and VC firms) promoting and funding some of the biggest startups in this space.

Extra Crunch Live is open exclusively to Extra Crunch subscribers. If you’re not already an Extra Crunch member, you can join here.

For the uninitiated, the EC Live format is at once direct and wide-ranging, an hour-long conversation that not only covers some of the biggest issues in tech, building startups and investing today — and boy do we have a lot of issues right now — but gets to the heart of them, in a lighter format that’s actually fun to watch — as you can see from past talks with Sequoia’s Roelof Botha and Homebrew’s Hunter Walk.  (See the whole schedule of Extra Crunch Live talks here.)

July 9 should be an especially good one because, well, Green is full of beans.

That is to say, he’s been very outspoken in the last few months, leading the (reassuring? alarming?) charge for startups to just write off the last quarter and focus on the future.

Sounds flippant? Not really. Green has years of experience to draw on — a long track record backing some of the most game-changing and successful startups of the last decade+ in the areas of cloud computing, enterprise and enterprise productivity, and specifically in how they cross over. They include Box, SalesLoft, ServiceMax, SteelBrick, SuccessFactors, Gusto (formerly ZenPayroll) and Yammer, with Emergence itself also an early backer of Zoom, Salesforce, Crunchbase and Clearbanc.

For founders, other investors and anyone involved in any aspect of deal-making, especially for enterprise startups, it’s a must-watch.

Join Jason and me next week. We’re looking forward to it.

Extra Crunch Live is open exclusively to Extra Crunch subscribers, and so if you want to watch, join here. You can find the full details of the call below the jump!

Details:


Source: Tech Crunch

Let’s stop COVID-19 from undoing diversity gains

Any disaster will have its harshest repercussions on people who were already marginalized. It’s unsurprising, then, that when it comes to jobs and businesses, the COVID-19 lockdown is impacting women and ethnic minorities more than anyone else.

In April, unemployment shot up to 15.5% among women, 2.5% higher than for men. The rate was also higher among African Americans and Latinx people than for white people, with Latinx reaching a record 18.9% unemployment.

Women, especially from more disadvantaged backgrounds, are going to be taking the lion’s share of caregiving responsibilities at home during the pandemic, making them more vulnerable to job cuts. At the same time, underrepresented employees in general may feel more marginalized than ever as job security is put on the line.

It’s been hard to get to where we are on diversity and inclusion. Slowly but surely, diversity and inclusion have become a highly visible element of any company. But as COVID-19 turned up the pressure for businesses around the world, that progress came under threat as D&I initiatives took a back seat. The killing of George Floyd and the subsequent protests reignited D&I efforts in magnitude, but how can we ensure that, as time passes, those efforts are maintained with energy and determination?

This may be the shock to the system that will make business leaders realize that diversity is not an accessory or PR stunt — it is an integral part of the daily lives of each and every member of your team. Today’s consumers and your co-workers demand socially conscious companies, which is why D&I is vital to making any startup a well-rounded business. It’s also imperative for supporting economic recovery on a larger scale. Forgetting to preserve and improve D&I as we battle through COVID-19 will not only set us back years in terms of equality, it will worsen our collective chances of getting through this turbulence unscathed.

D&I matters to your business’ survival

It’s understandable that most startups today will be in survival mode. But D&I cannot be cast aside as a nonessential part of your business. It’s quite the opposite. More diversity is a known indicator for better economic performance and improves a business’ chances of thriving through a recession.

We often hear about how diversity means more innovation in a company. Consider just how important this is today. Facing a crisis with no precedent, weighing up a variety of insights and solutions is vital to finding an intelligent lockdown strategy. As business leaders, we need to know what the world around us looks like right now, and that means knowing what people of all backgrounds are experiencing.

We also can’t afford to not take into consideration the long-term effects of today’s actions. Survival can’t mean usurping what your company stands for. If you sacrifice diversity now, you might retain employees for the time being, because they’re scared of being jobless. But you will have undermined the trust that your workers place in you and you will be sure to lose them far more easily once the situation eases. This is very true for customers too — the crisis is driving the public to support purpose-driven and diverse businesses more than ever, and you will be left out if you don’t meet those values.

Even if you’re not hiring, work on diversity and inclusion

So how can a startup keep diversity a priority in this strange new world? Sure, you may not be hiring, but that’s not the only way to improve diversity. Take this time to revisit your internal culture. The virus is forcing us to see our business from different angles — we’re looking into the homes of our co-workers, hearing about the personal issues affecting their work lives and about the work issues affecting their personal lives. Let’s make sure your company culture is not part of the problem.

You need to be accessible. Are some of your employees scared to speak up about their issues? Is there a big morale problem that you haven’t been able to alleviate? If so, then you need to work on making your workspace more inclusive, open and friendly. This is more than building up team spirit with morning coffee Zoom get-togethers and after-work networking. It’s about weeding out any systems that bring repercussions to people who voice their concerns; it’s about encouraging them to do so; it’s about recognizing every member of a team and every person in a meeting, not just the executives present.

The lockdown has shown that many people can work remotely, effectively. Can you use this in future to give employees a greater chance of success — perhaps those who live far from the office, or who have children or elderly relatives to care for? Many HR departments are probably focusing efforts away from hiring at the moment and could instead be put in charge of employee success, which means identifying and addressing the unique concerns of each of your staff (you might even consider assigning a full-time staff member to this role).

This is key to making your company a welcoming place for underrepresented employees who are often more wary of their circumstances than their co-workers, both now and in the future. It will help them grow and want to stay in the company, as well as attract a more diverse employee pool in the future.

In case you are hiring, there are innovative solutions to help you attract more diverse applicants to your company. Joonko’s technology integrates to your applicant tracking system to boost the visibility of underrepresented potential hires. Pitch.Me aims to tackle bias by presenting candidate profiles anonymously, including only relevant information about experience and skills but with no information regarding gender, age or ethnic background. Services like DiTal help tech businesses connect with potential employees from diverse backgrounds.

Reassess what internal success looks like

Before COVID-19, the key performance indicators for your business might have been the number of sales per rep, or the number of leads generated in a week. Those quotas are now unrealistic, and more importantly, they’ll be tougher to reach for employees with less time on their hands. That means people with more caregiving responsibilities — often women — or with less disposable income, and statistics show that people from ethnic minorities are more likely to be affected by the virus.

You have to create a work environment in which people with less time and resources can still achieve their professional goals. We typically hear that 80% of the most valuable work takes up 20% of a team’s time; well, let’s make sure your staff is focusing most of their efforts on that 20% of valuable energy. Build a new business plan that reassesses what the company needs to achieve in the near future, and set new metrics that hyperfocus on that bottom line. Think about how important it is to each of your co-workers’ morale to be able to meet their goals day in day out, despite today’s challenges. Furthermore, being adaptable for the benefit of your staff is an admirable quality that will not easily be forgotten.

An important note — helping everyone reach success means giving everyone the resources to do so. No one in your company should be unequipped to this “new normal,” which means good laptops or devices and speedy internet. Don’t hesitate to invest in people who need it.

Prioritize career development

Career development is vital for underrepresented employees, for whom upward mobility is always harder. People from minority backgrounds tend to have less robust business networks, exactly because they are the minority in the business world. We can never stop fighting this vicious cycle.

So take a look at your team and think about who you can help ascend in their career. Prioritize underrepresented people now because they are more likely to get hit harder by the lockdown and have a tougher recovery. Even if you don’t see it from an altruistic perspective, including underrepresented employees in your leadership now will lead to better economic local recovery and improved outcomes for your company.

One option is sponsorship programs in which you or other senior leaders advocate on behalf of selected employees (as well as acting as their mentors). Think of it as equally distributing the networks and influence accumulated by business leaders among a more diverse pool of people.

Bring diversity into your brand

We’ve looked inward, now let’s look outward. How can you change how your industry looks, even in times of crisis. To reach the huge visible changes we’ve seen in, for example, branding in the fashion industry, took influential people making decisions at powerful tables. But it would be ironically easy to see things regress to a more heterogeneous state.

Stopping this from happening means making those big decisions yourself, and uniting others in joining you. Leverage your brand and bring your internal diversity to the forefront of everything you do — the mentors who give their time to startup organizations, the speakers you put forward for online events. Make a conscious push for your external marketing to display as much diversity as possible, especially amid fears that the advertising space will compromise its diversity standards in response to COVID-19.

Support other underrepresented founders

If you have the resources, help struggling founders get through the lockdown. There may be small or mid-sized women or minority-led companies within your community that need your support. If you’re sending employees care packages and gifts, make the extra effort to source them from underrepresented local businesses. It’s not hard to do — there are organizations that can help you connect to such companies around the United States, such as Women Owned’s business directory and Help Main Street.

Large companies can work with Hello Alice to directly fund smaller companies founded by every underrepresented group in the United States, from veterans to LGBTQ+. IFundWomen is a large network of women-founded businesses you can choose to fund — or join — and it has a wing specifically for businesses owned by women of color. As a business leader you can always be seeking out diverse founders to collaborate with; For example, check out this amazing list of Latinx founders catering to the United States’ enormous Latinx markets, as well as finding solutions to improve diversity in business.

The NAACP has fought for equal rights for people of color for over a century. You can support them and their ongoing work, which ranges from campaigning for crucial reforms to spotlighting emerging Black-owned businesses.

Now’s not the time to slack on diversity. As tempting as it might be to think of it as an accessory, it’s just as vital now for your business to get through the pandemic and to stop your entire industry from losing decades of hard-earned progress in building a more equal society.


Source: Tech Crunch

India’s richest man takes on Zoom

India’s Reliance Jio Platforms, which recently concluded a $15.2 billion fundraise run, is ready to enter a new business: Video conferencing.

On Thursday evening, the firm — backed by Mukesh Ambani, India’s richest man — formally launched JioMeet, its video-conference service that looks uncannily like Zoom.

Like Zoom and Google Meet, JioMeet offers unlimited number of free calls in high definition (720p) to users and supports as many as 100 participants on a call. But interestingly, it appears to not impose a short time limit on a call’s duration. Jio Platforms says a free call can be uninterrupted for “up to 24 hours” long. The service currently has no paid plans and it’s unclear if Jio Platforms, which has a reputation of giving away services for free for years, plans to change that.

Jio Platforms, which began beta testing JioMeet in May this year, said the video conferencing service offers “enterprise-grade” host controls. These include: password protection on each call, multi-device login support (up to five devices), and ability to share screen and collaborate.

Other features include the ability to switch “seemingly” from one device to another, and a ‘Safe Driving Mode’ for when a participant is in commute. Hosts can also enable a ‘waiting room’ to ensure participants have to ask for permission to enter a call.

The company did not provide any more details, including whether people outside of India could use the service. On its website, JioMeet claims all the meetings are “encrypted” but does not elaborate whether these calls are end-to-end encrypted.

Reliance Jio Platforms is taking on Zoom with JioMeet, which looks a lot like Zoom

JioMeet is available for use through Chrome and Firefox browsers on desktop, as well as has standalone apps for macOS, Windows, iOS, and Android. It also has an Outlook plugin.

In a call with analysts earlier this year, Jio executives had described JioMeet as a platform that they think would some day have features to enable doctors to consult their patients, prescribe them medicine, and have a system in place to let them buy medicines online and get test results digitally. Similarly, they said JioMeet will allow teachers to host virtual classrooms for their students, with the ability to record sessions, assign and accept homework, and conduct tests digitally.

JioPlatforms, which is India’s top telecom operator with about 400 million customers, operates a number of digital services including JioMusic, a music streaming service; JioCinema, which offers thousands of TV shows and movies; and JioTV, which allows users to watch more than 500 TV channels. All of these services are available at no additional charge to Jio Platforms subscribers. It costs less than $2 a month to be a Jio subscriber.

The launch of JioMeet today comes as tens of millions of people in India are working from home and using video conferencing services for work and to stay in touch with friends.

Zoom app, currently the most popular video conference service in India, on Android had about 35 million monthly active users in the third week of July, up from about 4 million users during the same period in March, according to mobile insights firm App Annie, data of which an industry executive shared with TechCrunch. (Android powers nearly 99% of smartphones in India.)


Source: Tech Crunch

AR 1.0 is dead: Here’s what it got wrong

The first wave of AR startups offering smart glasses is now over, with a few exceptions.

Google acquired North this week for an undisclosed sum. The Canadian company had raised nearly $200 million, but the release of its Focals 2.0 smart glasses has been cancelled, a bittersweet end for its soft landing.

Many AR startups before North made huge promises and raised huge amounts of capital before flaring out in a similarly dramatic fashion.

The technology was almost there in a lot of cases, but the real issue was that the stakes to beat the major players to market were so high that many entrants pushed out boring, general consumer products. In a race to be everything for everybody, the industry relied on nascent developer platforms to do the dirty work of building their early use cases, which contributed heavily to nonexistent user adoption.

A key error of this batch was thinking that an AR glasses company was hardware-first, when the reality is that the missing value is almost entirely centered on missing first-party software experiences. To succeed, the next generation of consumer AR glasses will have to nail this.

Image Credits: ODG

App ecosystems alone don’t create product-market fit


Source: Tech Crunch

Instagram’s latest test puts all Stories on one page

Instagram Stories has grown to become one of Facebook’s best products to date. As of last year, roughly half of Instagram’s users — or 500 million people — were interacting with Stories on a daily basis. That’s nearly double the entire daily active user base of all of Snapchat, which first popularized the Stories format. Now, it appears Instagram is testing a way to expand the Stories experience, making it a more of a central focus in the Instagram app.

The company is newly testing a feature that will allow Instagram users to see more Stories at once, both on the home screen and in a new Stories-only experience.

In the test, users will initially see two rows of Stories instead of one at the top of the screen when they first open the Instagram app. A button will also appear beneath this expanded Stories area that lets you click to “See All Stories.”

This will then launch a new screen where you can view and scroll through all your available Stories in a full-screen experience.

The feature was first spotted by California-based social media manager Julian Gamboa late last week, who shared a screenshot of the new Stories interface to Twitter.

Instagram confirmed to TechCrunch this is a test with a small number of users for the time being. The company declined to provide further details, but said the test has been live for over a month.

It’s not surprising to see Facebook toying with ideas that would allow it to push more users to engage with Stories, given the product’s massive appeal, growth, and increasing importance to Facebook advertisers.

In Q3 2019, Facebook called Stories one of its biggest growth areas, noting that then 3 million of its 7 million total advertisers were now advertising across Facebook, Instagram and Messenger Stories combined. By Q4, the number of advertisers using Story Ads had grown to 4 million.

To cater to advertisers’ needs, Facebook last year introduced customizable templates where businesses can upload their photos and videos, then choose from different layouts, color and text options to make more engaging Stories. And to make it easier to participate in Stories, Facebook now allows advertisers to buy across Facebook, Messenger, and Instagram all at once.

When Facebook reported its Q1 2020 earnings, it noted the total number of ad impressions across its services had grown by 39%. It attributed the jump to both engagement increases across feed products and Stories combined.

However, Facebook has often said that Stories ads monetize at lower rates than News Feed — something the company believes will change in the long run as more advertisers migrate to Stories.

Given this context, it’s interesting to see Instagram testing a full-screen, scrollable Stories experience in the app. If Instagram decided to launch this product publicly, it could capture more daily users and then, in turn, more advertisers.

“We’re always testing new ways to improve the Instagram experience for our community,” a Facebook company spokesperson said, in reference to the test.


Source: Tech Crunch