U.S. government appeals the injunction against its TikTok ban

The U.S. government is appealing the ruling that blocked the Trump administration’s TikTok ban, according to a new court filing. On December 7, 2020, U.S. District Court Judge Carl Nichols in Washington became the second U.S. judge to block the Commerce Department’s attempt to stop the TikTok app from being downloaded from U.S. app stores, citing threats to national security.

The Trump administration had raised concerns over the video-sharing app due to its Chinese ownership by way of parent company ByteDance, and the potential risk of TikTok’s U.S. user data being accessed by the Chinese government. This ultimately resulted in President Trump’s decision to use his executive order power to ban TikTok from the U.S. market.

TikTok, in response, had vowed to fight the order in court while it also entered negotiations with American companies over the potential sell-off of its U.S. operations, in case the order was upheld.

However, prior to the Dec. 7 ruling on the matter, a group of TikTok creators successfully challenged the ban, when U.S. Judge Wendy Beetlestone in Pennsylvania issued an injunction that blocked the restrictions that would have otherwise stopped TikTok from operating in the U.S. The creators said the ban would have caused them to lose their income by way of their brand sponsorships and other opportunities afforded by the platform.

Following that order, Judge Nichols in the separate case led by TikTok ruled that Trump overstepped his authority in trying to ban the app from the U.S., referring to the agency’s action as “arbitrary and capricious.”

The U.S. Commerce Dept. spokesperson said at the time of the ruling it would continue to comply with the injunctions but intended to “vigorously defend the [executive order] and the Secretary’s implementation efforts from legal challenges.”

Today, it has followed through on that statement with its appeal.

Of course, the decision as to whether the U.S. will continue its attempt to ban TikTok will ultimately reside with the incoming Biden administration.

The news of today’s filing was first reported by Reuters.

TikTok declined to comment on the appeal.

A Commerce Dept. spokesperson issued the following statement (12/28/20, 1:14 PM ET):

On December 7, 2020, the United States District Court for the District of Columbia granted a nationwide preliminary injunction against the enforcement of Executive Order (E.O.) 13942, limited to the Secretary of Commerce’s Identification of Prohibited Transactions with TikTok/ByteDance. The court’s ruling is consistent with the nationwide preliminary injunction granted by the United States District Court for the Eastern District of Pennsylvania on October 30, 2020. The Department maintains that the E.O. is fully consistent with law and promotes legitimate national security interests. The Government will continue to comply with the injunctions and has taken immediate steps to do so, but intends to vigorously defend the E.O. and the Secretary’s implementation efforts from legal challenges.

US government appeals TikTok injunction by TechCrunch on Scribd


Source: Tech Crunch

Tappity raises $1.3M for its interactive and educational video library for kids

When kids today want to learn about a new topic they’re interested in, they’ll often turn to YouTube. But the quality of the educational content on the platform can be hit or miss, depending on what specific videos kids happen to come across. Tappity, a digital educational startup now backed by $1.3 million in seed funding, aims to offer an alternative. Its video library offers entertaining and interactive live-action videos kids enjoy, while also ensuring the content itself is aligned with current educational standards.

The two-year old startup was co-founded by CEO Chad Swenson, his brother and CTO Tanner Swenson, and CPO Lawrence Tran.

Image Credits: Tappity founders

As Chad explains, the idea for Tappity emerged from his interest in designing interactive learning experiences, which resulted in a senior project eight years ago where he created an interactive experience to help students learn about evolution. Over the years that followed, he began to experiment with different concepts in this area, but never planned for anything of venture scale.

However, Chad says he later realized there could be an opportunity to develop content based around the Next Generation Science Standards (NGSS) — the set of K-12 science content standards that were developed by a consortium of multiple U.S. states — whose adoption across the U.S. is now growing.

“A lot of parents were looking for healthier alternatives to YouTube,” Chad says. “And I really started to believe this is something that could be much bigger.”

He found also that the science-based topics kids are generally interested in are often those that are aligned with what the NGSS aims to teach — like space, dinosaurs, geology and others.

“A big inspiration was just looking at the most popular books on Amazon for kids,” Chad adds, noting that a large number of these books are focused on STEM-related subjects.

Chad met his co-founder Lawrence Tran when consulting for fintech startup Bill.com, and convinced him and his brother Tanner to work on the startup.

Over the course of a couple of years, Tappity has developed tools that make it easier and efficient to produce interactive, educational video content. Today, the library includes over 200 science lessons for kids ages 4 to 10, across thousands of videos.

While the video clips themselves are pre-recorded, they give the kids the feeling of having a one-on-one interaction with the character on the screen. For example, if the teacher is building something and needs a screwdriver, the kids can pass it to her in the app when she asks. But they’ll also have a lot of other fun options they can do instead, like passing her tape or even throwing pizza at her — and she’ll react. The teacher may also engage with kids in other ways, too, like responding to what they drew in the app, among other things.

Image Credits: Tappity

Currently, Tappity’s teacher Haley the Science Gal (Haley McHugh), a childhood entertainment expert with over 10 years of experience, is leading the lessons which span topics like space, life science, earth science and physical science.

In addition to the video lessons, kids are engaged with an in-app points system for completing activities. The app also offers follow-up emails for parents so they can track what kids are learning and further engage them.

Due to the COVID pandemic, and the resulting screen fatigue that comes from virtual schooling, Tappity adapted some lessons to include offline activities — like drawing with paper and pens, for instance. And on Sundays, Tappity offers more involved activities parents and kids can do together — like baking cookies that you turn into Pangea or making a volcano.

Tappity expects to have over 1,000 hours of video content by the end of next year, and over 4,000 hours by the year after, Chad notes.

When the team of three applied to startup accelerator Y Combinator, Tappity was small but profitable, thanks to its in-app subscription tiers that average around $9 per month. Today, the company has over 5,000 paying customers and over 20,000 weekly active users who have collectively completed 30 million lessons to date.

The company has now raised a seed round of $1.3 million from Y Combinator, Mystery Science founder Keith Schacht, Toca Boca founder Björn Jeffery, Brighter Capital (Yun-Fang Juan), former Spotify CTO Andreas Ehn, Fairchild Fund, 18 Ventures, and AltaIR.

In the near-term, Tappity is working to expand its team and bring its lessons — that today are only available on iOS — to the web. Over time, the company’s goal is to create a large library of interactive educational content.

While the COVID pandemic has inspired VCs to invest in more edtech startups, the longevity of some of these businesses in the post-COVID world remains to be seen. Where Tappity is different from many of these remote learning startups or those designed for the classroom, is that its focus is not on selling into the school system.

“Teachers have picked it up organically — we give it away free to schools right now,” Chad explains. “But we’re not dedicating any resources to it because we’re focused on the parents’ and kids’ needs, which are quite a bit different,” he says.

Tappity’s app is available iOS, and includes some free content outside of the subscription.


Source: Tech Crunch

Gillmor Gang: Get Back

Today we sat on the deck with our daughter Ella and her boyfriend Nick. Knowing of my fascination with all things Beatles, Nick gave me a Japanese 45 of Get Back flipped with Don’t Let Me Down. His gift coincided with a 5 minute cut of material from a newly authorized production of a new version of Get Back, the film. A short history follows.

In the waning days of The Beatles’ partnership, the band decided to return to a more slimmed down production style, minus overdubs and plus a live feel. After original sessions in Twickenham Studios, the group decamped to the basement of their Apple headquarters and a hastily rebuilt studio courtesy of their usual producer, George Martin and loaned equipment from EMI Studios.

In the years since Sgt. Pepper, Beatles records had begun to retreat from their highly produced studio experiments. The most recent double album, The Beatles (commonly known as the White Album) was largely recorded in single takes, driving a wedge between the group and their producer that fostered a two week holiday where Martin turned the production over to his assistant.

The multiple takes also exacerbated growing tensions between the band members, as hundreds of attempts to perfect Paul McCartney songs like Ob-La-Di, Ob-La-Da drove Lennon further into his heroin experiments with Yoko Ono. Bickering drove Ringo Starr to quit for two weeks before being lured back with flowers draping his drum kit; George Harrison invited Eric Clapton in to a session in a successful attempt to put the rest on their best behavior. This gambit worked again with Billy Preston in the Get Back sessions four months later in January 1969.

It may be hard to understand the context of these tensions in a world beset with a global pandemic and the worst president in the history of the free world, but this was the middle of the Vietnam War and the first term of Richard Nixon. His landslide reelection in 1972 would preclude the voters turning him out of office, and the Watergate scandal that drove him to resign was only just beginning to unfold. Compare the emotional turmoil of four rock musicians to today’s terror at the actions of an unhinged autocrat being removed from office in what seems like an endless thirty days. But it really sucked then as now.

Part of the problem was the disquieting anxiety on the part of the postwar boomer generation that we didn’t really deserve the respect we weren’t getting from straight society. The silent majority of our parents and peers sneered at our experiments of free love and drug-induced “insights.” The counter culture we labeled ourselves was as lonely a place to be as the Deplorables of 2016. We had no power, no real leaders, and nowhere to go but down when Woodstock collapsed into Altamont, assassination, and addiction.

So we didn’t know what we were talking about and yet here we were owning the ceramics we broke. Our heroes in London were on top of the world, and they couldn’t stand each other. What to do? Let’s make a movie of how we really are. On the plus side, there was real alchemy between these four young men. Even though sick of each other, they loved the results of what they found together. Lennon was haughty but funny, McCartney pleasant but coiled like a big cat. Ringo was Everyman, with an actor’s surprise at his luck and proud of his true role of ignition switch.

Harrison is the crucible, where the steel is forged. In interviews after the breakup and narrating during, George seems to be the one who realizes the true value of the partnership even as he explodes it with solo success. The backlog of his material spilled out in his first album, so successful that its chart topping drove McCartney and Lennon to try and keep up for the next 8 years until Lennon’s death.

Yet of all the others, he was the one to recognize the value, the responsibility, of keeping the door open for what they had together. When Lennon recorded his vicious assault on McCartney, How Do You Sleep, George not only played on the record but provided the emotional power with a surging slide guitar lead he’d only developed when the group was done. During the White Album sessions that produced some of Lennon’s best work, he suggested Lennon change the title from Maharishi to Sexy Sadie to lose the personal attack on the guru for what may have turned out to be a jealous setup by another of the group’s coterie.

In the film fragment released for Christmas 2020, Harrison is seen kicking off Get Back, the first time you can really see the role George played in the propulsion of the track. As with many players, you can best understand this when he drops out for a retake or a tempo adjustment led by Paul; the absence of the guitarist shows how central he is to the mix. In the only footage released prior to this new material, Harrison seemed subdued on the roof concert version of the track. He reportedly was opposed to doing a live concert in general, and only agreed to go out on the roof when Lennon finally committed.

It’s this context that is so striking in the new material. The tensions within the group can be seen not only for the inevitability of their collapse but also their courage to be filmed and displayed for all to consume. As a persistent fan of the band and all of its dynamics at the core of the century, the new footage comes across like The Godfather and its sequels. Like Godfather II, the Beatles studio phase once they abandoned live performance in 1966 transcended their initial success in a way that essentially invented the modern Hollywood business of sequels.

The return to live phase that began with the White Album and continued through the Get Back sessions resolved itself with the last Beatles recording of Abbey Road. In this way the Get Back film apparently includes early recordings of material from Abbey Road as well as Harrison and McCartney tracks never finished by the group. Unlike the Let It Be film that emerged as a director’s cut of the breakdown of the group pre-Abbey Road, this new Get Back film will likely serve as a document of the final phase of the group in both defeat and resolution.

The last Beatles recording of all four plus Billy Preston produced I Want You (She’s So Heavy), the long bluesy track that ends side one of Abbey Road. It’s a tantalizing glimpse into the future that never was of the greatest group there ever was. Like Francis Ford Coppola’s reimagining of the the last Godfather sequel, Get Back is a coda to the tragic highs and lows of the time that was the Sixties. At the time, it was impossible to imagine where we could go from there. Today, we share that same feeling of despair, but perhaps, the hope of what the future could bring.

from the Gillmor Gang Newsletter

__________________

The Gillmor Gang — Frank Radice, Michael Markman, Keith Teare, Denis Pombriant, Brent Leary, and Steve Gillmor . Recorded live Friday, December 18, 2020.

Produced and directed by Tina Chase Gillmor @tinagillmor

@fradice, @mickeleh, @denispombriant, @kteare, @brentleary, @stevegillmor, @gillmorgang

Subscribe to the Gillmor Gang Newsletter and join the backchannel here on Telegram.

The Gillmor Gang on Facebook … and here’s our sister show G3 on Facebook.


Source: Tech Crunch

What startups can learn from this dumpster fire year

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Remember when it was news that venture capitalists were open for business? Or when Zoom investing was only done by that one guy in Ann Arbor (ha, I kid!)? These past few months have felt busier than ever, with no holiday slowdown in sight when it comes to startup growth, hot IPOs and new financings.

Even with a distracting bull market, I wanted to reflect and see how the youngest startups are faring. Alex Wilhem and I dove into data, provided by Pitchbook, to see if the next DoorDashes and Airbnbs are getting their first financings.

The answer is that seed investing flourished but in a complicated way. COVID-19 shook up which startups were considered attractive by private investors. And that changeup came at risk to certain sectors and people.

Here’s how two investors explained the dynamics:

Freestyle’s Jenny Lefcourt:

I think seed prices are being driven up by the larger [venture] firms playing earlier and feeling like they cannot afford to miss the next DoorDash. I think the larger firms have so much capital to put to work and feel they are better off burning some [cash] at seed for the upside of being in the right [startups] where they can double, triple, 10x down on their winners.

Eniac Ventures’ Nihal Mehta:

Because you can’t meet in person, investors felt way more comfortable investing in ‘proven’ entrepreneurs that had pre-existing connections to their social circle.

The long-term ramifications of this tunnel vision means that female founders lost out during this time, since social circles in venture capital are largely white and male. From a sector perspective, e-commerce and edtech have had an easy time raising, but at the cost of travel and hospitality.

The data brings a sort of dissonance to startup-land: Even though seed investing has never looked more busy and fruitful, this is good news for some, and bad news for others. It’s a healthy reminder that a boom and bust can be true at the same time.

How’s that for a 2020 sign-off? We’ll be off next week but in the meantime, two bits of homework: take advantage of this Extra Crunch holiday sale and send me tips and thoughts to natasha.mascarenhas@techcrunch.com or tweet me @nmasc_ in between your holiday treats.

I’ll chat with you all in the New Year.

Waves of sheets of paper that mimic fire

Image Credits: Getty Images

Edtech’s biggest challenge in 2021

No sector has had a year quite like edtech. The sector attracted $10 billion in funding globally, and remote learning went from a tool to a necessity.

Here are my favorite edtech stories I wrote this year:

Finally, in my end of year op-ed for TechCrunch, I propose that the ubiquity of remote learning surely brought a boom to new users, but it may have in fact limited the sector’s ability to innovate in lieu of fast, easy scale.

Here’s my biggest tip for the year ahead:

For edtech in 2020, flexible and scrappy was a survival tactic that led to profits, growth and most of all, aha moments that technology was needed in the way we learn. Now, as we enter the rest of the decade, the sector will have to shake off its short-term-fix mentality to evolve from tunnel vision to wide-pan ambition.

 

light bulb flickering on and off

Image: Bryce Durbin / TechCrunch

A $16B checkbook for space startups

Funding for space startups is defying odds – which is the poetic flair we need once in a while. As part of our TC Sessions: Space 2020 event, a number of TechCrunch reporters dove deep into what kind of money is going into … the space.

Chris Boshuizen of the venture firm DCVC and a co-founder of Planet Labs notably said:

We don’t yet live in the sci-fi future, where you can just fly up, grab a piece of debris and bring it back. That’s really, really hard — I think probably five years away — but something we want to support and see happen.

Image of Uncle Sam floating in space with the Space Force logo above his left shoulder.

Image of Uncle Sam floating in space with the Space Force logo above his left shoulder.

Remembering the startups we lost in 2020 

Building a startup is always difficult, but the pandemic was a plot twist that led to a not-so-happy ending for many companies this year. So, as part of an annual TechCrunch tradition, we paid homage to the startups we lost in 2020. 

Here are my takeaways:

  • This is not a fun list. Failure is hard, but you can learn a thing or two when you sort through the ashes. For example? Big names, big plans, and a boatload of money isn’t a replacement for actually making money.
  • List includes short-form video app Quibi, to lawyer tech startup Atrium, to a slew of travel startups which fell apart as the virus dragged on. 
  • While some businesses chalked up failure to COVID-19, the cracks and fundamental business flaws were often peeking through far before the pandemic began.

Around TechCrunch

TechCrunch’s Favorite Things of 2020

Gift Guide: Last-minute subscriptions to keep the gifts going all year

Video: TechCrunch editors choose their top stories of 2020

Across the week

Seen on TechCrunch

Snoop Dogg’s Casa Verde Capital closes on $100 million as the cannabis industry bounces back

Activism platform actionable helps users be proactive about the causes they love

Letterhead wants to be the Shopify of email newsletters

Telegram, nearing 500 million users, to begin monetizing the app

The Biden administration can change the world with new crypto regulations

Seen on Extra Crunch

With a $50B run rate, can anyone stop AWS?

Looking ahead after 2020s epic M&A spree

Dear Sophie: What’s ahead for US immigration in 2021?

The built environment will be one of tech’s next big platforms

@EquityPod

Finally, Equity is ending the year with two holiday episodes. This week, we’ve got reflections on this dumpster fire year. I teamed up with Danny, Chris and Alex to just sit back and think about this eventful year. We also got five venture capitalists who we got to leave us their notes as well.

The goal for this episode was to sit down and think a year that no one could have ever predicted, but with a specific angle, as always, on venture capital and startups.

We asked about the biggest surprise, non-portfolio companies to watch, and trends they got wrong and right. There was also banter on Zoom investing (Alex came up with Zesting, not me) and startup pricing.

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

 

 


Source: Tech Crunch

Original Content podcast: ‘The Mandalorian’ season two goes deep into Star Wars mythology

“The Mandalorian” just wrapped up its second season on Disney+, with an action-packed and surprise-filled finale.

In many ways, it feels like a seamless continuation of the first season’s storylines, with the titular bounty hunter searching for a Jedi who can take responsibility for the alien moppet known to the internet as Baby Yoda, while the pair is pursued by the sinister Moff Gideon.

But as we explain on the latest episode of the Original Content podcast, where the first season of “The Mandalorian” felt accessible to anyone, regardless of their level of Star Wars fandom, season two deepens its ties to the rest of the fictional universe.

That includes bringing in live action versions of characters from the animated “Clone Wars” series, as well as setting up the many other Star Wars shows that are in the works for Disney+. This approach prompted very different responses from your podcast hosts — Darrell was delighted since he understood all the Ester Eggs, Jordan was exhausted trying to keep up and Anthony was happy to let many of the references go over his head.

At least the show’s other virtues remain intact, with enjoyably grungy and tactile space opera settings, spectacular big budget battles and an adorable baby Jedi.

In addition to reviewing “The Mandalorian,” we also discuss HBO Max’s arrival on Roku (which somehow prompts Anthony to explain his disappointment in the new Christopher Nolan movie “Tenet”), and Darrell and Jordan offer their latest thoughts on “The Bachelorette.”

You can listen to our review in the player below, subscribe using Apple Podcasts or find us in your podcast player of choice. If you like the show, please let us know by leaving a review on Apple. You can also follow us on Twitter or send us feedback directly. (Or suggest shows and movies for us to review!)

And if you’d like to skip ahead, here’s how the episode breaks down:
0:00 Intro
4:14 HBO Max/”Tenet” discussion
13:35 “The Bachelorette” discussion
28:42 “The Mandalorian” Season 2 review
50:40 “The Mandalorian” spoiler discussion


Source: Tech Crunch

Music made 2020 better, but we failed to make 2020 better for musicians

“Are you okay?”

I don’t have a good answer to the question. Knowing full well that I’m talking back to an algorithm — even one asking the same question of everyone with a different band mad-libbed in — doesn’t soften the blow. Am I? Are we? Is anyone, really?

In this case, it’s referring to Waxahatchee. I mean, yeah, I totally listened to a lot of Waxahatchee this year. Waxahatchee is good. Saint Cloud was one of my favorite albums of the year. Katie Crutchfield’s music doesn’t exist in the Elliott Smith, Leonard Cohen bin for me. It’s not time to send up the signal flares when you see the band all over my Spotify social feed.

The Spotify roasting AI that’s been making the rounds this week is a fun exercise in music snobbery. It also may be brushing against some larger truth here. Something I think we all considered at least in passing this year when Spotify offered its annual “Wrapped” year in review.

What’s the soundtrack to the worst year, ever? What do we listen to while the world burns? In 2009, a former CNN intern stumbled across a video tape in the archives labeled with the title, “Turner Doomsday Video.” The minute-long video features a band playing, “Nearer My God To Thee,” believed to be the final song played by the band on the Titanic. It carried the explicit instructions, “HFR [Hold for Release] till end of the world confirmed.”

Barring any sort of last-minute surprise, it seems likely we’ll make it through 2020 shy of a full-on apocalypse (in spite of, perhaps, the best efforts of some). But for me, Spotify’s year in review was a testament to hell year, just as my Apple Watch exercise bars saw a zeroing out in late-March and April, as the pandemic bore down on my home of Queens, New York and I dealt with some personal health issues.

What was pitched as a celebratory aggregation of my listening habits over the previous 12 months exited the machine as a testament to the long stretches of time where engaging with music felt like an impossibility. Ambient music and post-rock got me listening again when lyrics seemed like too much to process. And I’m sure I’m not alone in having listened to some comfort tracks with an alarming frequency.

Looking back is a useful reminder of the role music played in what undoubtedly qualifies as the worst year to date for many. It would be an overstatement to suggest that music saved my life in 2020, but it certainly cushioned the blow of one too many emotional gut punches.

“Music can lift us out of depression or move us to tears – it is a remedy, a tonic, orange juice for the ear,” the late-neurologist, Oliver Sacks wrote. “But for many of my neurological patients, music is even more – it can provide access, even when no medication can, to movement, to speech, to life. For them, music is not a luxury, but a necessity.”

Louis Armstrong put it even more succinctly: “music is life itself.”

It’s a cruel irony that, in a year when music has meant so much to so many, most musicians have struggled to make ends meet. The musical field certainly isn’t unique in that respect this year, but their struggles have been pronounced in an era when streaming revenues offer fractions of cents what musicians make in record sales, and touring has become the most important revenue stream for all but the biggest names. For the past 10 months, that all but dried up.

“The pandemic utterly decimated the live-music industry,” Wilco frontman Jeff Tweedy noted in a recent interview. “There’s been almost an entire year now of absolutely zero revenue.”

In May, a survey from the Musician’s Union noted that 19% of musicians said they might end up giving up their careers due to the impact of COVID-19. Seven months later, one wonders whether that figure might have been optimistic.

Tweedy adds, “There will be places to play. But the landscape won’t ever look the same. I imagine that a lot of the more intimate music venues will be gone, just like a lot of small businesses and restaurants.”

Bandcamp has been a beacon for many. The service’s “Bandcamp Fridays,” which waive its revenue cut, have raised $40 million to date. The site has promised to continue offering the feature at least through May of next year.

This year’s struggles have served to highlight concerns over streaming royalties. Spotify has understandably been the focal point for this conversation, all while the company has spent hundreds of millions to bolster its podcast programming. CEO Daniel Ek didn’t do himself any favors in July when he noted, “Some artists that used to do well in the past may not do well in this future landscape, where you can’t record music once every three to four years and think that’s going to be enough.”

In October, Justice at Spotify rep (and Galaxie 500 member) Damon Kurkowski told me “[R]esponse from certain corners of the industry has been as cold as we expected: ‘You’re just musicians and don’t understand business,’ is the basic gist of it. To which I would say: The problem we are calling attention to is precisely that musicians have been left out of the conversation! We always come last in payment and in consultation — even though our work is what the streaming business is built on.”

The struggle to survive on music is nothing new, of course. Jazz genius Thelonious Monk famously had a benefactor in Baroness Pannonica de Koenigswarter. But just because we’ve failed musicians in the past doesn’t mean we can’t and shouldn’t do better.

Am I okay? I’m still not sure, but listening to music seems to help.


Source: Tech Crunch

Daily Crunch: Alibaba faces antitrust probe

Chinese authorities investigate an e-commerce giant, Google may be tightening its grip on research and VCs weigh in on the year’s biggest surprises. This is your (briefer than usual) Daily Crunch for December 24, 2020.

The big story: Alibaba faces antitrust probe

China’s State Administration for Market Regulation said that it’s investigating the e-commerce giant over a policy that forces merchants to sell exclusively with Alibaba and skip rival platforms JD.com and Pinduoduo.

“Alibaba will actively cooperate with the regulators on the investigation,” the company said in a statement. “Company business operations remain normal.”

Meanwhile, Chinese authorities have already called off the initial public offering of Alibaba affiliate Ant Group, and the company has now received another “meeting notice” from regulators.

Holiday grab bag

Google reportedly tightens grip on research into ‘sensitive topics’ — Reuters, citing researchers at the company and internal documents, reports that Google has implemented new controls in the last year, including an extra round of inspection for papers on certain topics.

Five VCs discuss what surprised them the most in 2020 — The latest episode of Equity reflects on a year that no one could have predicted.

Gift Guide: Last-minute subscriptions to keep the gifts going all year — They’re easy to order at the very last minute, easy to give from afar and they’ll spread the gifting fun out over weeks and months.

Advice and analysis from Extra Crunch

The built environment will be one of tech’s next big platforms — An in-depth look at Sidewalk Labs’ abandoned Toronto waterfront project.

US seed-stage investing flourished during pandemic — According to a TechCrunch analysis of PitchBook data and a survey of venture capitalists, a few trends became clear.

Use Git data to optimize your developers’ annual reviews — Three metrics can help you understand true performance quality.

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

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


Source: Tech Crunch

Not even 5G could rescue smartphone sales in 2020

This was going to be the year of 5G. It was going to be the year the next-generation wireless technology helped reverse some troubling macro trends for the industry — or at the very least helped stem the bleeding some.

But the best laid plans, and all that. With about a week left in the year, I think it’s pretty safe to say that 2020 didn’t wind up the way the vast majority of us had hoped. It’s a list that certainly includes the lion’s share of smartphone makers. Look no further than a recent report published by Gartner to answer the question of just how bad 2020 was for smartphone sales.

It was so bad that a 5.7% global decline year-over-year for the third quarter constituted good news. In a normal year, that wouldn’t qualify as good news for too many industries outside of wax cylinder and asbestos sales. But there are few standards by which 2020 was a normal year, so now we’ll take some respite in the fact that a 5.7% drop was a considerably less pronounced drop than the ~20% we saw in Qs 1 and 2.

Some context before we get into the whys here. A thing that’s important to note up front is that mobile wasn’t one of those industries where everything was smooth sailing before everything got upended by a pandemic. In 2019 I wrote a not insignificant number of stories with headlines like “Smartphone sales expected to drop 2.5% globally this year” and “Smartphone sales declined again in Q2, surprising no one.” And even those stories were a continuation of trends from a year prior.

The reasons for the decline should be pretty familiar by now. For one thing, premium handsets got expensive, routinely topping out over $1,000. Related to that, phones have gotten good. Good news for consumers doesn’t necessarily translate to good news for manufacturers here, as upgrade cycles have slowed significantly from their traditional every two years (also an artifact of the carrier subscription model). Couple that with economic hardships, and you’ve got a recipe for slowed growth.

This March, I wrote an article titled “5G devices were less than 1% of US smartphone purchases in 2019.” There was, perhaps, a certain level of cognitive dissonance there, after many years of 5G hype. There are myriad factors at play here. First, there just weren’t a ton of different 5G models available in the States by year’s end. Second, network rollout was far from complete. And, of course, there was no 5G iPhone.

I concluded that piece by noting:

Of course, it remains to be seen how COVID-19 will impact sales. It seems safe to assume that, like every aspect of our lives, there will be a notable impact on the number of people buying expensive smartphones. Certainly things like smartphone purchases tend to lessen in importance in the face of something like a global pandemic.

In hindsight, the answer is “a lot.” I’ll be the first to admit that when I wrote those words on March 12, I had absolutely no notion of how bad it was about to get and how long it would last (hello month nine of lockdown). In the earliest days, the big issue globally was on the supply side. Asia (China specifically) was the first place to get hit and the epicenter of manufacturing buckled accordingly. Both China and its manufacturing were remarkably fast to get back online.

In the intervening months, demand has taken a massive hit. Once again, there are a number of reasons for this. For starters, people aren’t leaving their homes as much — and for that reason, the money they’ve allotted to electronics purchases has gone toward things like PCs, as they’ve shifted to a remote work set-up. The other big issue here is simple economics. So many people are out of work and so much has become uncertain that smartphones have once again been elevated to a kind of luxury status.

There are, however, reasons to be hopeful. It seems likely that 5G will eventually help right things — though it’s hard to say when. Likely much of that depends on how soon we’re able to return to “normal” in 2021. But for now, there’s some positive to be seen in early iPhone sales. After Apple went all in on 5G this year, the new handset (perhaps unsurprisingly) topped sales for all other 5G handsets for the month of October, according to analysts.

The company will offer a more complete picture (including the ever-important holiday sales) as part of its earnings report next month. For now, at least, it seems that thing are finally heading in the right direction. That trend will, hopefully, continue as the new year sees a number of Android launches.

Perhaps 2021 will be the year of 5G — because 2020 sure wasn’t.


Source: Tech Crunch

Elon Musk says SpaceX to double launch pad usage for Starship tests, Super Heavy flights coming in a ‘few months’

SpaceX is set to significantly ramp up its Starship development program in the new year, in more ways than one. SpaceX CEO and founder Elon Musk noted on Twitter on Thursday that the company will seek to make use of both of its two launch pads at its development facility in Boca Chica, Texas with prototype rockets set up on each, and that it will begin flight testing its Super Heavy booster (starting with low-altitude “hops”) as quickly as “a few months” from now.

Recently, SpaceX set up its SN9 prototype of Starship (the ninth in the current series) at Pad B at its Texas testing facility, which is on the Gulf of Mexico. SN9 will be next to undergo active testing, after SpaceX successfully flew its predecessor SN8 to an altitude of around 40,000 feet, and then executed a crucial belly flop maneuver that will be used to help control the powered landing of the production version. SN8 was destroyed when it touched down harder than expected, but SpaceX still achieved all its testing goals with the flight — and more.

SN9 will now undergo ground tests before hopefully doing its own flight test later on. That’ll provide the team with even more valuable data to carry on to further tests — with the ultimate goal of eventually achieving orbit with a Starship prototype vehicle. Musk’s tweet that two prototypes will be stood up next to each other on Pad A and Pad B at the Boca Chica site could indicate the pace of these test flights might speed up, to match the fast clip at which SpaceX is constructing new rocket iterations.

Meanwhile, news that Super Heavy could be undergoing testing soon is also reason to get excited about 2021 for SpaceX and Starship. Super Heavy is the booster that SpaceX will eventually use to fly Starship for orbital launches, and to eventually help propel it to deep space — for destinations including Mars. Super Heavy will be around 240 feet tall, and will include 28 Raptor engines to provide it with the lift capacity needed to break Earth’s gravity when it’s stacked with a Starship loaded down with cargo.


Source: Tech Crunch

Use Git data to optimize your developers’ annual reviews

The end of the year is looming and with it one of your most important tasks as a manager. Summarizing the performance of 10, 20 or 50 developers over the past 12 months, offering personalized advice and having the facts to back it up — is no small task.

We believe that the only unbiased, accurate and insightful way to understand how your developers are working, progressing and — last but definitely not least — how they’re feeling, is with data. Data can provide more objective insights into employee activity than could ever be gathered by a human.

It’s still very hard for many managers to fully understand that all employees work at different paces and levels.

Consider this: Over two-thirds of employees say they would put more effort into their work if they felt more appreciated, and 90% want a manager who’s fair to all employees.

Let’s be honest. It’s hard to judge all of your employees fairly if you’re (1) unable to work physically side-by-side with them, meaning you’ll inevitably have more contact with the some over others (e.g., those you’re more friendly with); and (2) you’re relying on manual trackers to keep on top of everyone’s work, which can get lost and take a lot of effort to process and analyze; (3) you expect engineers to self-report their progress, which is far from objective.

It’s also unlikely, especially with the quieter ones, that on top of all that you’ll have identified areas for them to expand their talents by upskilling or reskilling. But it’s that kind of personal attention that will make employees feel appreciated and able to progress professionally with you. Absent that, they’re likely to take the next best job opportunity that shows up.

So here’s a run down of why you need data to set up a fair annual review process; if not this year, then you can kick-start it for 2021.

1. Use data to set next year’s goals

The best way to track your developers’ progress automatically is by using Git Analytics tools, which track the performance of individuals by aggregating historical Git data and then feeding that information back to managers in minute detail.

This data will clearly show you if one of your engineers is over capacity or underworked and the types of projects they excel in. If you’re assessing an engineering manager and the team members they’re responsible for have been taking longer to push their code to the shared repository, causing a backlog of tasks, it may mean that they’re not delegating tasks properly. An appropriate goal here would be to track and divide their team’s responsibilities more efficiently, which can be tracked using the same metrics, or cross-training members of other teams to assist with their tasks.

Another example is that of an engineer who is dipping their toe into multiple projects. Indicators of where they’ve performed best include churn (we’ll get to that later), coworkers repeatedly asking that same employee to assist them in new tasks and of course positive feedback for senior staff, which can easily be integrated into Git analytics tools. These are clear signs that next year, your engineer could be maximizing their talents in these alternative areas, and you could diversify their tasks accordingly.

Once you know what targets to set, you can use analytics tools to create automatic targets for each engineer. That means that after you’ve set it up, it will be updated regularly on the engineer’s progress using indicators directly from the code repository. It won’t need time-consuming input from either you or your employee, allowing you both to focus on more important tasks. As a manager you’ll receive full reports once the deadline of the task is reached and get notified whenever metrics start dropping or the goal has been met.

This is important — you’ll be able to keep on top of those goals yourself, without having to delegate that responsibility or depend on self-reporting by the engineer. It will keep employee monitoring honest and transparent.

2. Three Git metrics can help you understand true performance quality

The easiest way for managers to “conclude” how an engineer has performed is by looking at superficial output: the number of completed pull requests submitted per week, the number of commits per day, etc. Especially for nontechnical managers, this is a grave but common error. When something is done, it doesn’t mean it’s been done well or that it is even productive or usable.

Instead, look at these data points to determine the actual quality of your engineer’s work:

  1. Churn is your number-one red flag, telling you how many times someone has modified their code in the first 21 days after it has been checked in. The more churn, the less of an engineer’s code is actually productive, with good longevity. Churn is a natural and healthy part of the software development process, but we’ve identified that any churn level above the normal 15%-30% indicates that an engineer is struggling with assignments.


    Source: Tech Crunch