R&D Roundup: ‘Twisted light’ lasers, prosthetic vision advances and robot-trained dogs

I see far more research articles than I could possibly write up. This column collects the most interesting of those papers and advances, along with notes on why they may prove important in the world of tech and startups.

In this edition: a new type of laser emitter that uses metamaterials, robot-trained dogs, a breakthrough in neurological research that may advance prosthetic vision and other cutting-edge technology.

Twisted laser-starters

We think of lasers as going “straight” because that’s simpler than understanding their nature as groups of like-minded photons. But there are more exotic qualities for lasers beyond wavelengths and intensity, ones scientists have been trying to exploit for years. One such quality is… well, there are a couple names for it: Chirality, vorticality, spirality and so on — the quality of a beam having a corkscrew motion to it. Applying this quality effectively could improve optical data throughput speeds by an order of magnitude.

The trouble with such “twisted light” is that it’s very difficult to control and detect. Researchers have been making progress on this for a couple of years, but the last couple weeks brought some new advances.

First, from the University of the Witwatersrand, is a laser emitter that can produce twisted light of record purity and angular momentum — a measure of just how twisted it is. It’s also compact and uses metamaterials — always a plus.

The second is a pair of matched (and very multi-institutional) experiments that yielded both a transmitter that can send vortex lasers and, crucially, a receiver that can detect and classify them. It’s remarkably hard to determine the orbital angular momentum of an incoming photon, and hardware to do so is clumsy. The new detector is chip-scale and together they can use five pre-set vortex modes, potentially increasing the width of a laser-based data channel by a corresponding factor. Vorticality is definitely on the roadmap for next-generation network infrastructure, so you can expect startups in this space soon as universities spin out these projects.

Tracing letters on the brain-palm


Source: Tech Crunch

China Roundup: A blow to US-listed Chinese firms and TikTok’s new global face

Hello and welcome back to TechCrunch’s China Roundup, a digest of recent events shaping the Chinese tech landscape and what they mean to people in the rest of the world. It’s been a tumultuous week for Chinese tech firms abroad: Huawei’s mounting pressure from the U.S., a big blow to U.S.-listed Chinese firms, and TikTok’s high-profile new boss.

China tech abroad

Further decoupling

Over the years, American investors have been pumping billions of dollars into Chinese firms listed in the U.S., from giants like Alibaba and Baidu to emerging players like Pinduoduo and Bilibili. That could change soon with the Holding Foreign Companies Accountable Act, a new bill passed this week with bipartisan support to tighten accounting standards on foreign companies, with the obvious target being China.

“For too long, Chinese companies have disregarded U.S. reporting standards, misleading our investors. Publicly listed companies should all be held to the same standards, and this bill makes commonsense changes to level the playing field and give investors the transparency they need to make informed decisions,” said Senator Chris Van Hollen who introduced the legislation.

Here’s what the legislation is about:

1) Foreign companies that are out of compliance with the Public Company Accounting Oversight Board for three years in a row will be delisted from U.S. stock exchanges.

PCAOB, which was set up in 2002 as a private-sector nonprofit corporation overseen by the SEC, is meant to inspect audits of foreign firms listed in the U.S. to prevent fraud and wrongdoing.

The rule has not sat well with foreign accounting firms and their local regulators, so over time PCAOB has negotiated multiple agreements with foreign counterparts that allowed it to perform audit inspections. China is one of the few countries that has not been cooperating with the PCAOB.

2) The bill will also require public companies in the U.S. to disclose whether they are owned or controlled by a foreign government, including China’s communist government.

The question now is whether we will see Chinese companies give in to the new rules or relocate to bourses outside the U.S.

The Chinese firms still have a three-year window to figure things out, but they are getting more scrutiny already. Most recently, Nasdaq announced to delist Luckin, the Chinese coffee challenger that admitted to fabricating $310 million in sales.

Those that do choose to leave the U.S. will probably find a warmer welcome in Hong Kong, attracting investors closer to home who are more acquainted with their businesses. Alibaba, for instance, already completed a secondary listing in Hong Kong last year as the city began letting investors buy dual-class shares, a condition that initially prompted many Chinese internet firms to go public in the U.S.

TikTok gets a talent boost 

The long-awaited announcement is here: TikTok has picked its new chief executive, and taking the helm is Disney’s former head of video streaming, Kevin Mayer.

It’s understandable that TikTok would want a global face for its fast-growing global app, which has come under scrutiny from foreign governments over concerns of its data practices and Beijing’s possible influence.

Curiously, Mayer will also take on the role of the chief operating officer of parent company ByteDance . A closer look at the company announcement reveals nuances in the appointment: Kelly Zhang and Lidong Zhang will continue to lead ByteDance China as its chief executive officer and chairman respectively, reporting directly to ByteDance’s founder and global CEO Yiming Zhang, as industry analyst Matthew Brennan acutely pointed out. That means ByteDance’s China businesses Douyin and Today’s Headlines, the cash cows of the firm, will remain within the purview of the two Chinese executives, not Mayer.

Huawei in limbo following more chip curbs

Huawei is in limbo after the U.S. slapped more curbs on the Chinese telecoms equipment giant, restricting its ability to procure chips from foreign foundries that use American technologies. The company called the rule “arbitrary and pernicious,” while it admitted that the attack would impact its business.

Vodafone to help Oppo expand in Europe 

As Huawei faces pressure abroad due to the Android ban, other Chinese phone makers have been steadily making headway across the world. One of them is Oppo, which just announced a partnership with Vodafone to bring its smartphones to the mobile carrier’s European markets.

All of China’s top AI firms now on U.S. entity list 

The U.S. has extended sanctions to more Chinese tech firms to include CloudWalk, which focuses on developing facial recognition technology. This means all of the “four dragons of computer vision” in China, as the local tech circle collectively calls CloudWalk, SenseTime, Megvii and Yitu, have landed on the U.S. entity list.

China tech back home

China’s new trillion-dollar plan to seize the tech crown (Bloomberg)

China has a new master plan to invest $1.4 trillion in everything from AI to 5G in what it dubs the “new infrastructure” initiative.

Fitbit rival Amazfit works on a reusable mask

The smartwatch maker is eyeing a transparent, self-disinfecting mask, becoming the latest Chinese tech firm to jump on the bandwagon to develop virus-fighting tech.

ByteDance moves into venture capital investment

The TikTok parent bankrolled financial AI startup Lingxi with $6.2 million, marking one of its first investments for purely monetary returns rather than for an immediate strategic purpose.

Bilibili is the new Youtube of China

The once-obscure video site for anime fans is now in the mainstream with a whopping 172 million monthly user base.

Xiaomi’s investment powerhouse reaches 300 companies 

It’s part of the smartphone giant’s plan to conquer the world of smart home devices and wearables.

Alibaba pumps $1.4 billion into content and services for IoT

Like Amazon, Alibaba has a big ambition in the internet of things.


Source: Tech Crunch

Living and working in a worsening world

Not long ago we lived in a world which kept getting better. Oh, there were tragedies and catastrophes, and there was profound inequality, but still, on a global scale, over the span of years, from before the fall of the Berlin wall until quite recently, most things were getting better for most people.

Reasonable people can disagree about when “quite recently was.” Personally, I put it the turning point at circa 2015, after which refugee counts swelled, talk of the “precariat” grew, xenophobia which often more-than-verged on neo-fascism began to rise around the world, and the growing threat of global warming became inescapable.

Others, more optimistic, would say the world kept getting better until this year. But I think few would dispute that we’re backsliding now, in the face of the pandemic. It’s not just its direct mortality, and its morbidity; it’s the skyrocketing unemployment rates — absolutely necessary lest the mortality multiply many-fold, to be clear — from which we won’t recover as soon as we hope, and the consequent global recession. Worst, it’s the projected massive rise in global extreme poverty.

We live in a world that’s getting worse, at least this year, likely next, and maybe even beyond. That’s awfully hard to get used to when you’re accustomed to justified faith that things are getting better. It’s been a long time — probably not since the mid-70s and early 80s, as I understand it — since we’ve collectively hit a ditch like this.

What changes in a world getting worse? Well, you have to be more careful about consequences, for one. During boom times there’s an unfortunate tendency write off any unpleasant side effects of a company’s success — or failure — as temporary friction, soon resolved, when a rising tide is lifting us all up, and those affected can (at least theoretically) easily find a new job. You can indeed make a case for that doing boom times. But it’s very different during an ebb tide with sharp rocks below, and people should adjust accordingly.

There’s another, more interesting and counterintuitive, lesson to be learned from the mid-70s through early 80s. That’s the era the birthed punk rock and hip-hop, both of which sounded almost indescribably strange by the aesthetic standards of the time. Those were Hollywood golden years, because, famously, “nobody knew anything.” And that was when Apple and Microsoft were formed, when personal computers were a weird curiosity whose very existence was somewhat obscure.

Maybe the lesson here is that this is the time to strive to do something weird — genuinely weird, not path-following, different-version-of-conformist weird. Maybe this is time to found your weird startup; or maybe startups are the mainstream engine of change now, and the truly weird thing is to forge something entirely different from a startup. Maybe it’s time not just to create art, but to invent your own art form. It’s an optimistic take on a worsening world, I know; but even a pandemic needs optimists.


Source: Tech Crunch

The Station: Hertz files for bankruptcy, hailing “self-driving” scooters, Memorial Day travel

The Station is a weekly newsletter dedicated to all things transportation. Sign up here — just click The Station — to receive it every Saturday in your inbox.

Hi and welcome back to The Station. Memorial Day is this coming Monday, a holiday meant to honor military personnel who died while serving in the U.S. Armed Forces. Over the years, it has evolved for many Americans who use the three-day weekend to fire up the grill, go camping, head to the beach, local amusement park or take a road trip. It’s become the unofficial kickoff to the summer season — even though we still have more than three weeks of spring.

Every year around this time, AAA provides an estimate for travel over the weekend. For the first time in 20 years, AAA said it would not issue a Memorial Day travel forecast, as the accuracy of the economic data used to create the forecast has been undermined by COVID-19.

The travel forecast often reflects the state of the economy or at least certain aspects of it. For instance, Memorial Day 2009 holds the record for the lowest travel volume at nearly 31 million travelers. Last year, 43 million Americans traveled for Memorial Day Weekend, the second-highest travel volume on record since 2000, when the organization began tracking this data.

I will put my prognosticator hat on for a moment knowing I might very well be wrong (I’m sure ya’ll will remind me later). I expect this weekend to be a low travel holiday, but I fully anticipate this summer will mark the return of the road trip. And that’s not just my forecast for the U.S. I expect Europeans will stick closer to home and opt for road and possibly train travel over long haul flights for their summer holidays. That has all kinds of implications, positive and negative. And it’s why I’m going to spend some time in the coming weeks driving a variety of new SUV models in search of road trip worthy vehicles.

This past week I drove the 2020 VW Atlas Cross Sport V6 SEL (premium trim), a more smaller and approachable version of the massive three-row Atlas. I will share a few thoughts about it next week. After that, I will be driving the 2020 Land Cruiser standard trim. Have a vehicle suggestion? Reach out and I’ll try to put it in my queue.

Reach out and email me at kirsten.korosec@techcrunch.com to share thoughts, criticisms, offer up opinions or tips. You can also send a direct message to me at Twitter — @kirstenkorosec.

Shall we get down to it? Vamos.

Micromobbin’

the station scooter1a

Micromobility had some good action this week so let’s dive on in. Here in San Francisco, Bird’s Scoot redeployed 300 electric kick scooters. By Memorial Day weekend, Scoot will have 500 electric scooters available. Additionally, Scoot expanded its scooter service area to serve more parts of San Francisco.

Over in Atlanta, GoX and Tortoise teamed up to deploy teleoperated electric scooters. In Peachtree Corners, GoX riders can hail a scooter equipped with tech from Tortoise. As Keaks, aka Kirsten Korosec, explained earlier this week, riders can request a scooter to come to them and once they’re done, the scooter will drive itself back to a parking spot.

Meanwhile, in Europe, Tier brought integrated helmets to its electric scooters. The foldable helmets fit inside a box attached to the scooter below the handlebars. This month, Tier plans to deploy 200 scooters equipped with helmets in Paris and Berlin. Over the summer, Tier will deploy an additional 5,000 helmet-equipped scooters. Additionally, given concerns about COVID-19, Tier is experimenting with an antibacterial, self-disinfecting handlebar technology from Protexus. Tier is testing these handlebars in Paris and Bordeaux.

Also, don’t miss my analysis of why micromobility may come back stronger after the pandemic.

Megan Rose Dickey

Deal of the week

money the station

Vroom, the online used car marketplace that has raised some $700 million since 2013, filed for an IPO this week. (Yes, IPOs qualify as deals in my book). It plans to trade on the Nasdaq under VRM with Goldman Sachs as lead underwriter.

Vroom is an interesting company that I’ve been writing about for years now. And there have been times that I wondered if it would fold altogether. The company managed to keep raising funds though, most recently $254 million in December 2019 in a Series H round that valued the company at around $1.5 billion.

A look at the S-1 shows modest growth, rising losses and slim gross margins. Eck!

Here’s a quick breakdown:

  • Vroom’s revenue grew 39.3% in 2019 compared to 2018. During that same period, its gross margin fell from 7.1% to 4.9%. The company’s net losses as a percent of revenue rose from 10% in 2018 to 12% in 2019. (That doesn’t include costs relating to “accretion of redeemable convertible preferred stock.” By counting the non-cash cost, add $13 million to Vroom’s 2018 net loss and $132.8 million to its 2019 figure.)
  • In the first quarter of 2020, Vroom generated revenue of $375.8 million, leading to gross profit of $18.4 million, or about 4.9% of revenue. It also reported a net loss of $41.1 million in the first quarter, putting it on a run-rate to lose even more money in 2020 than it did in 2019.

TechCrunch’s Alex Wilhelm takes a look under Vroom’s hood and digs into why the company is heading to the public markets during this volatile time. Check it out.

Other deals:

Missfresh, a Chinese grocery delivery company backed by Tencent, is closing in on $500 million in new funding.

Autonomous aviation startup Xwing locked in a $10 million funding round before COVID-19 hit. Now the San Francisco-based startup is using the capital to hire talent and scale the development of its software stack as it aims for commercial operations later this year — pending FAA approvals. The Series A funding round was led by R7 Partners, with participation from early-stage VC Alven, Eniac Ventures and Thales Corporate Ventures.

Fly Now Pay Later, a London-based fintech startup focused on travel, raised £5 million in Series A equity funding and another £30 million in debt funding.

French startup Angell has signed a wide-ranging partnership with SEB, the French industrial company behind All-Clad, Krups, Moulinex, Rowenta, Tefal and others. As part of the deal, SEB will manufacture Angell’s electric bikes in a factory near Dijon, France. SEB’s investment arm, SEB Alliance, is also investing in Angell. The terms of the deal are undisclosed, but Angell says it plans to raise between $7.6 and $21.7 million with a group of investors that include SEB.

Layoffs, business disruptions and people

Signage is displayed at the Hertz Global Holdings Inc. rental counter at San Francisco International Airport in San Francisco, California, U.S., on Tuesday, May 5, 2020. Photo: Getty Images

Hertz filed for Chapter 11 bankruptcy protection on Friday, a move we’ve been anticipating for awhile now. The bankruptcy protection stems from the COVID-19 pandemic.

Here’s why.

Once business trips and other travel was halted, Hertz was suddenly sitting on an unused asset — lots and lots of cars. It wasn’t just that the revenue spigot was turned off. Used car prices have dropped, further devaluing its fleet.

The company said that it has more than $1 billion in cash on hand, which it will use to keep the business operating through the bankruptcy process. Hertz also said its principal international operating regions, including Europe, Australia and New Zealand are not included in the U.S. Chapter 11 proceedings, nor are franchised locations.

Other layoffs:

Indian ride-hailing firm Ola has seen revenue drop by 95% in the last two months as India enforced a stay-at-home order for its 1.3 billion citizens in late March. You can guess what has happened as a result. Ola co-founder and CEO Bhavish Aggarwal said in an internal email the company is cutting 1,400 jobs in India, or 35% of its workforce in the home market.

India’s top food delivery startup Swiggy is cutting 1,100 jobs and scaling down some adjacent businesses as it looks to reduce costs to survive the coronavirus pandemic.

Here’s something on the “new” job front

There’s been a lot of attention on autonomous delivery robots. These companies will most certainly struggle to become profitable. On-demand delivery is a tricky business. But COVID-19 might have inadvertently expanded the labor pool for these companies.

On-demand delivery startup Postmates has seen an increase in demand for its autonomous delivery robots known as Serve, which operate in Los Angeles and San Francisco. The company uses teleoperators, humans who remotely monitor and guide the autonomous robots. COVID-19 prompted Postmates to set up teleoperations centers within each employee’s home. Postmates sees potential to reach a new group of workers.

Tortoise, which we mentioned earlier in Micromobbin’, sees the same potential, according to its founder and CEO Dmitry Shevelenko.

A little bird

blinky cat bird green

We hear (and see) things. But we’re not selfish. We share!

For those not familiar with “a little bird,” this is a periodic section that shares insider tips that have been vetted. This week comes out of the super-hyped world of on-demand delivery. It’s a business that might be seeing a lot of demand. But demand doesn’t always square with profitability.

Take Postmates for example. The company has raised about $900 million to date, including a $225 million round announced in October that valued the company at about $2.5 billion. But now it seems that common shares are trading at a 45% discount on the secondary market, according to our sources.

Early investors do take money off the table from time to time. But it can also indicate other troubles worth watching out for. Postmates filed confidential IPO paperwork in February 2019, but those plans have been delayed. The company is also fighting for market share against giants like Doordash. A Uber-Grubhub merger would put it even with DoorDash.

That leaves Postmates in a distant fourth. Dan Primack over at Axios noted “multiple sources” have told him the company is seeking raise around $100 million in new private-market funding.

Other notable bits

Here are a few other items that caught my eye …

Amazon is joining India’s online food delivery market just as top local players Swiggy and Zomato reduce their workforce to steer through the coronavirus pandemic and months after Uber Eats’ exit from the nation.

GM has a “big team” working on an advanced version of its hands-free driving assistance system, Super Cruise, that will expand its capability beyond highways and apply it to city streets, the automaker’s vice president of global product development Doug Parks said during a webcasted interview at Citi’s 2020 Car of the Future Symposium.

Cake, the Stockholm-based mobility startup, debuted the Kalk OR, a 150-pound, battery-powered two-wheeler engineered for agile off-road riding and available in a street-legal version.

Nauto has launched a new feature in its driver behavior learning platform that is designed to detect imminent collisions to help reduce rear-end accidents. It works by taking in driver behavior data, vehicle movement, traffic elements, and contextual data to help predict and prevent collisions.

Organizers of the New York International Auto Show, once hoping to hold the rescheduled event in August, have decided to scrap the entire year. The show has been officially canceled for 2020 due to the COVID-19 pandemic, organizers announced Friday. The next show will take place April 2 to April 11, 2021. Press days will be March 31 and April 1.

Tesla CEO Elon Musk said the company is raising the price of its “Full Self-Driving” package of its Autopilot driver assistance package by around $1,000 on July 1. This has happened before and it will, I promise happen again. The Verge has a good breakdown of why. I, of course, care about the financial reasons. Right now, Tesla can only count about half of the revenue it generates from FSD. The other half is deferred revenue — money that Tesla can recognize on its balance sheet at a later date.

Wunder Mobility, the Hamburg-based startup that provides a range of mobility services, from carpooling to electric scooter rentals, announced the launch of Wunder Vehicles and a business-to-business partnership with Chinese EV manufacturer Yadea. Wunder Vehicles is a service that gives customers a toolkit of sorts to launch a fleet-sharing company. The company provides software, a marketing plan, data, financing options and the electric vehicles, which will come from Yadea.

Rad Power Bikes unveiled the newest iteration of its electric cargo bike. The RadWagon 4 has been fully redesigned from the ground up. Trucks VC’s Reilly Brennan recently described this on Twitter as the possible F-150 of micromobility. We hope to test it soon.

Image Credits: Rad Power Bikes


Source: Tech Crunch

Hackers release a new jailbreak that unlocks every iPhone

A renowned iPhone hacking team has released a new “jailbreak” tool that unlocks every iPhone, even the most recent models running the latest iOS 13.5.

For as long as Apple has kept up its “walled garden” approach to iPhones by only allowing apps and customizations that it approves, hackers have tried to break free from what they call the “jail,” hence the name “jailbreak.” Hackers do this by finding a previously undisclosed vulnerability in iOS that break through some of the many restrictions that Apple puts in place to prevent access to the underlying software. Apple says it does this for security. But jailbreakers say breaking through those restrictions allows them to customize their iPhones more than they would otherwise, in a way that most Android users are already accustomed to.

The jailbreak, released by the unc0ver team, supports all iPhones that run iOS 11 and above, including up to iOS 13.5, which Apple released this week.

Details of the vulnerability that the hackers used to build the jailbreak aren’t known, but it’s not expected to last forever. Just as jailbreakers work to find a way in, Apple works fast to patch the flaws and close the jailbreak.

Security experts typically advise iPhone users against jailbreaking, because breaking out of the “walled garden” vastly increases the surface area for new vulnerabilities to exist and to be found.

The jailbreak comes at a time where the shine is wearing off of Apple’s typically strong security image. Last week, Zerodium, a broker for exploits, said it would no longer buy certain iPhone vulnerabilities because there were too many of them. Motherboard reported this week that hackers got their hands on a pre-release version of the upcoming iOS 14 release several months ago.


Source: Tech Crunch

Original Content podcast: The new ‘Kimmy Schmidt’ special is pointlessly interactive

In many ways, Netflix’s new “Unbreakable Kimmy Schmidt” special “Kimmy vs. the Reverend” is a delight.

For fans of the show, it’s a chance to catch up with Kimmy (Ellie Kemper), Titus (Titus Burgess) and all their other friends/nemeses on the eve of Kimmy’s wedding to Prince Frederick (Daniel Radcliffe).

Creators Robert Carlock and Tina Fey (along with a team of writers), deliver their usual barrage of delightful jokes, and even if you aren’t fully caught up, the special more-or-less stands on its own, pitting Kimmy against her old captor Reverend Richard Wayne Gary Wayne (Jon Hamm) as she searches for a hidden bunker of trapped girls.

And if this was just an hour of regular “Kimmy Schmidt,” your Original Content podcast hosts might have nothing but praise. instead, “Kimmy vs. the Reverend” adopts the same interactive format as the “Black Mirror” episode “Bandersnatch,” with viewers moving through a branching narrative based on their own choices.

The new special isn’t quite as maddening as “Bandersnatch,” — the underlying story is stronger, with fewer frustrating dead ends, and the writers play with the format in some fun ways. But it’s still hard to escape the feeling that the interactivity is mostly a pointless distraction.

Before we get to the review, we also discuss the news that HBO Max will be debut Zack Snyder’s legendary (or infamous) cut of “Justice League” and look at how reality TV has been affected by the COVID-19 pandemic.

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 send us feedback directly. (Or suggest shows and movies for us to review!)

If you want to skip ahead, here’s how the episode breaks down:
0:00 Intro
0:42 “Waco” listener response
3:24 “Justice League” discussion
14:04 Reality TV discussion
19:48 “Kimmy vs. the Reverend” review
35:22 “Kimmy vs. the Reverend” spoilers


Source: Tech Crunch

Startups Weekly: SoftBank portfolio results show which tech sectors are still thriving

Editor’s note: Want this in your inbox every Saturday morning? Click here to subscribe to Startups Weekly and all the other great TechCrunch newsletters.

Remember when the top investors and companies in tech were reacting to SoftBank’s every move? These days, we are picking through the latest results from the Japanese conglomerate and its Vision Fund to see how things went wrong, and where it is still succeeding with its startup portfolio.

First up, this fund appears to be out of additional money to spend, as Arman Tabatabai and Danny Crichton found buried in the footnotes of its new regulatory filing. Meanwhile, as they tallied on TechCrunch, the losses have piled up lately:

The Vision Fund officially lost $17.4 billion in value according to SoftBank’s financials for the year ending this past March 31. The year before, SoftBank had registered a positive gain in the Vision Fund’s value of $12.8 billion, which means that the damage of this year’s performance has completely wiped out all gains the fund had made in the previous year. But the real shock is the performance of the fund’s underlying portfolio companies. The Vision Fund currently has 88 active portfolio companies that have not exited. Of those, 19 investments saw a gain in combined value of $3.4 billion according to SoftBank, while 50 companies saw a decline in value aggregating to $20.7 billion in losses. 19 portfolio companies were left unchanged in value.

Is this worse than what the rest of the market at large is going through? Here’s Alex Wilhelm’s view on Extra Crunch:

To some degree this feels counter-narrative. Tech shares have rebounded in recent weeks, rebuilding sentiment in the sector — perhaps the COVID-19 downturn won’t be that bad, the thinking seems to go. The SoftBank Vision Fund’s results paint a more negative picture of the economy: It’s bad in many areas, lots of companies are impacted and the value of many unicorns is too high, even if the scale of write-downs that private investors like venture capitalists will have to endure is not yet clear. The private market can, therefore, expect a host of down-rounds if unicorns need to raise capital in the short-term. And many will. The Vision Fund report card, then, is an indication that enterprise software is doing as well as we might have thought, that there are some winners in the health-tech space and that, aside from those exceptions, the rule appears to be a downturn in startup land. 

Emphasis mine. Arman and Danny also broke out Arm’s financials for EC and what that top SoftBank company shows about the future of semiconductors. And, for both education and amusement, they provided a commentary about SoftBank’s in-depth and sometimes bizarre presentation about the results.

The symbolism of Jack Ma’s SoftBank board resignation

Masayoshi Son made his name via a seminal bet on a very young Alibaba back in the 1990s, and since then he and SoftBank have had much of their net value and stature tied up in the success of Jack Ma’s efforts. Ma, in turn, has bolstered SoftBank by holding a board seat on the conglomerate since 2008. After 14 years and broadly changing interests on both sides, it’s not surprising that he resigned. But as Danny wrote for TechCrunch in a helpful sidebar to the other Softbank coverage:

[I]t’s not just about an investor and his entrepreneur breaking some ties after two decades in business together. It’s about the fraying of the very globalization that powered the first wave of tech companies — that a Japanese conglomerate with major interests in the U.S. and Europe could invest in a Hong Kong/China startup and reap huge rewards. That tech world and the divide of the internet and the world’s markets continues unabated.

What will save college-town startup hubs?

Few people alive remember, but Palo Alto used to be considered a long way from San Francisco… this was back when Stanford University actually was a farm, though. The interplay of the university’s technical research and education with local technologists was core to how Silicon Valley formed and how the region grew, and in recent decades many other metros of all sizes have implemented their own successful versions of this playbook.

But maybe pandemic effects will cause startup activity to contract to the biggest startup hubs? In this week’s staff survey (a new format we’re trying out), Danny believes that’s the case. The revenues for universities will be hit too hard by the loss of foreign student tuition, decreased attendance domestically due to closed campuses and student financial problems, etc. Natasha Mascarenhas looks back at her own experiences and finds the in-person experience so irreplaceable that she thinks the core attendance will recover. Alex agrees with that.

As I move out of the Bay Area to a college town this weekend, I think I disagree with all of the above. Yes, I also expect higher education to get slammed — but what is going to remain? STEM programs already have government and private funding lined up that can stretch many years into the future, and these schools have wealthy, supportive alumni and can generate revenue from commercialization (aka startup creation). Which means that, as much as anything will exist anywhere physically in higher ed, the research labs and science and engineering programs of the country (and the world) will continue to operate. The tech companies that are still booming publicly or privately will need to hire more graduates with these degrees. So, even with remote learning, the core institutions and their environs will have the means to continue, and be regular destinations for tech talent.

Danny, it is the big cities that I think will get slammed the hardest, especially those with troubled local and state revenue sources like here in California. People of all income levels were already fleeing the largest metros due to high prices, now the pandemic is reinforcing that they can work remotely with little to no drop in productivity. Instead, commercial real estate, typically a key urban tax base, is in free-fall. Let’s say you work in tech but want to spend less and have more space and amenities. Yes there are many suburbs and exurbs you can move to — but the college town ones are some of the nicest. Nobody is fleeing Boulder now. But I bet a lot of people wish they could move there.

Combine all of this with the global networking tools that the tech industry has been hard at putting together, and I think finding a cofounder and building a company will soon be as easy as finding an online date. Why not find yourself a nice garage in a sleepy college town like Bill Hewlett and David Packard did not so long ago and settle in for some hardcore entrepreneurship? Find your cofounders and key employees from near and far as you please, and enjoy the benefits of your alma mater’s local network. Just make sure you have a great wifi connection and an ergonomic workstation.

postmates-phantom-wfh

Delivery robot demand starts to grow, create human jobs

Automation turns out to still require a lot of blood, sweat and tears to operate correctly. Resident automotive expert Kirsten Korosec takes a look at how the delivery robot sub-sector of autonomous vehicles has been hiring remote humans to help delivery robots navigate the trickiest parts of a route safely as demand grows during the pandemic. Her main example in this in-depth look on TechCrunch is a partnership between Postmates and a startup called Phantom Auto, which focuses on AV teleoperations.

Using Phantom Auto’s software, a Postmates fleet supervisor can monitor a robot from thousands of miles away. The supervisor will jump in to help the bot navigate the first and last 15 feet to a restaurant or the recipient or if it needs help crossing a busy street.

These robot guides can assist using a couple of methods. The human teleoperator can provide input to the system, something as simple as a thumbs up or thumbs down to help the bot make the right choice. The employee can also use a hand-held remote controller to steer, accelerate or slow down the bot in real-time.

The teleoperations component of mobility is spreading more broadly. She separately covered a scooter company in Atlanta that is hiring remote operators in Mexico City to deliver the vehicles to customers.

If you’re focused on these topics, you might be interested in the other things Kirsten is up to as well (if you’re not reading her already). In addition to her regular coverage, she’s been doing surveys of mobility investors along with Megan Rose Dickey for Extra Crunch. We published the first last week on the larger impact of the pandemic on the sector. Kirsten also has a weekly free newsletter called The Station about the topic and her coverage, which you can read and subscribe to here.

Investors surveyed on enterprise software, cannabis

Pandemic or no, enterprise investors will not stop being bullish, thank you very much. Resident enterprise reporter Ron Miller caught up with top investors in the space in the space for the first of a series on the cloud that he has coming. Here’s a money quote from the Extra Crunch article, courtesy of Max Gazor at CRV.

It’s abundantly clear that cloud software markets are bigger than most people anticipated. We continue to invest heavily there as we have been doing for the last decade. Specifically, the most exciting trend right now in enterprise is low-code software development. I’m on the board of Airtable, where I led the Series A and co-led the Series B investments, so I see first-hand how this will play out. We are heading toward a future where hundreds of millions of people will be empowered to compose software that fits their own needs. Imagine the productivity and transformation that will unlock in the world! It may be one of the largest market opportunities we have seen since cloud computing.

And now for something completely different. Cannabis has emerged as a serious half-legal sector that few of us have qualms about, in this part of the world at least. It has tended to breed its own strain of investor — many of whom Matt Burns caught up with for our second survey this week. The pandemic seems to have turned things around for the category, at least according to some. Here’s Matt Hawkins of Entourage Effect Capital:

Cannabis went from illegal to essential in about two weeks flat — cannabis is now listed right alongside hospitals, doctors, grocery stores, gas stations and fire departments as an essential service. As we edge close to federal legalization, there is still a large demand for research on cannabis’ medicinal benefits and a lot more opportunities to create cannabis-derived medicines. There is a lot to be excited about in the long term.

Across the week

Extra Crunch

What to do when your VC writes your startup off

Why VCs say they’re open for business, even if they’re pausing new deals

GitLab’s head of Remote on hiring, onboarding and why Slack is a no-work zone (part 1)

GitLab’s head of Remote on what people tend to get wrong about remote work (part 2)

Popping the hood on Vroom’s IPO filing

The Great Reset

TechCrunch

Work From Home is dead, long live Work From Anywhere

Following Luckin Coffee scandal, Nasdaq ready to tighten rules on IPO listings

How I Podcast: Articles of Interest’s Avery Trufelman

Europe to Facebook: Pay taxes and respect our values — or we’ll regulate

How to decode a data breach notice

Around TechCrunch

TechCrunch Disrupt 2020 is going virtual

Startup Battlefield is going virtual with TechCrunch Disrupt 2020

Sequoia Capital’s Roelof Botha is coming to Disrupt this fall

Extra Crunch Live: Join Verizon CEO Hans Vestberg for a live Q&A May 26 at 2pm ET/11am PT

Extra Crunch Live: Join Box CEO Aaron Levie May 28th at noon PT/3 pm ET/7 pm GMT

#EquityPod: Clubhouse proves that time is a flat circle

Listen here.

From Alex:

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

First, a big thanks to everyone who took part in the Equity survey, we really appreciated your notes and thoughts. The crew is chewing over what you said, and we’ll roll up the best feedback into show tweaks in the future.

Today, though, we’ve got Danny and Natasha and Chris and Alex back again for our regular news dive. This week we had to leave the Vroom IPO filing, Danny’s group project on The Future of Work and a handwashing startup (?) from Natasha to get to the very biggest stories:

  • Brex’s $150 million raise: Natasha covered the latest huge round from corporate charge-card behemoth Brex. The party’s over in Silicon Valley for a little while, so Brex is turning down your favorite startup’s credit limit while it stacks cash for the downturn.
  • Spruce raises a $29 million Series B: Led by Scale Venture Partners, Spruce is taking on the world of real estate transactions with digital tooling and an API. As Danny notes, it’s a huge market and one that could find a boost from the pandemic.
  • MasterClass raises $100 million: Somewhere between education and entertainment, MasterClass has found its niche. The startup’s $180 yearly subscription product appears to be performing well, given that the company just stacked nine-figures into its checking account. What’s it worth? The company would only tell Natasha that it was more than $800 million.
  • Clubhouse does, well, you know. Clubhouse happened. So we talked about it.
  • SoftBank dropped its earnings lately, which gave Danny time to break out his pocket calculator and figure out how much money it spent daily, and Alex time to parse the comedy that its slideshow entailed. Here’s our favorites from the mix. (Source materials are here.)

And at the end, we got Danny to explain what the flying frack is going on over at Luckin. It’s somewhere between tragedy and farce, we reckon. That’s it for today, more Tuesday after the holiday!


Source: Tech Crunch

This Week in Apps: Facebook takes on Shopify, Tinder considers its future, contact-tracing tech goes live

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

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

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

This week we’re continuing to look at how the coronavirus outbreak is impacting the world of mobile applications. Notably, we saw the launch of the Apple/Google exposure-notification API with the latest version of iOS out this week. The pandemic is also inspiring other new apps and features, including upcoming additions to Apple’s Schoolwork, which focus on distance learning, as well as Facebook’s new Shops feature designed to help small business shift their operations online in the wake of physical retail closures.

Tinder, meanwhile, seems to be toying with the idea of pivoting to a global friend finder and online hangout in the wake of social distancing, with its test of a feature that allows users to match with others worldwide — meaning, with no intention of in-person dating.

Headlines

COVID-19 apps in the news

  • Fitbit app: The fitness tracker app launched a COVID-19 early detection study aimed at determining whether wearables can help detect COVID-19 or the flu. The study will ask volunteers questions about their health, including whether they had COVID-19, then pair that with activity data to see if there are any clues that could be used to build an early warning algorithm of sorts.
  • U.K. contact-tracing app: The app won’t be ready in mid-May as promised, as the government mulls the use of the Apple/Google API. In testing, the existing app drains the phone battery too quickly. In addition, researchers have recently identified seven security flaws in the app, which is currently being trialed on the Isle of Wight.

Apple launches iOS/iPadOS 13.5 with Face ID tweak and contact-tracing API

Apple this week released the latest version of iOS/iPadOS with two new features related to the pandemic. The first is an update to Face ID which will now be able to tell when the user is wearing a mask. In those cases, Face ID will instead switch to the Passcode field so you can type in your code to unlock your phone, or authenticate with apps like the App Store, Apple Books, Apple Pay, iTunes and others.

The other new feature is the launch of the exposure-notification API jointly developed by Apple and Google. The API allows for the development of apps from public health organizations and governments that can help determine if someone has been exposed by COVID-19. The apps that support the API have yet to launch, but some 22 countries have requested API access.


Source: Tech Crunch

Anything less than nationwide vote by mail is electoral sabotage

The global pandemic has cast a light on decades of cumulative efforts to manipulate and suppress voters, showing that the country is completely unprepared for any serious challenge to its elections system. There can be no more excuses: Every state must implement voting by mail in 2020 or be prepared to admit it is deliberately sabotaging its own elections. (And for once, tech might be able to help.)

To visualize how serious this problem is, one has only to imagine what would happen if quarantine measures like this spring’s were to happen in the fall — and considering experts predict a second wave in that period, this is very much a possibility.

If lockdown measures were being intensified and extended not on May 3rd, but November 3rd, how would the election proceed?

The answer is: it wouldn’t.

There would be no real election because so few people in the country would be able to legally and safely vote. This is hardly speculative: We have seen it happen in states where, for lack of any other option, people had to risk their lives, breaking quarantine to vote in person. Naturally it was the most vulnerable groups — people of color, immigrants, the poor and so on — who were most affected. The absurdity of a state requiring voters to gather in large groups while forbidding people to gather in large groups is palpable.

With this problem scaled to national levels, the entire electoral process would be derailed, and the ensuing chaos would be taken advantage of by all and sundry for their own purposes — something we see happening in practically every election.

For the 2020 election, if any elections official in this country claims to value the voters for which they are responsible, voting by mail is the only way to enable every citizen to register and vote securely and remotely. Anything less can only be considered deliberate obstruction, or at best willful negligence, of the electoral process.

Image Credits: Bill Oxford / iStock Unreleased / Getty Images

There’s a fair amount of talk about apps, online portals and other avenues, and these may figure later, but mail is the only method guaranteed right now to securely serve every address and person, providing the fundamental fabric of connectivity that is absolutely necessary to universally accessible voting.

Hand-wringing about fraud, lost ballots and other issues with voting by mail is deliberate, politically motivated FUD (and you can expect a lot of it over the next few months). States where voting by mail is the standard report no such issues; on the contrary, they have high turnout and few problems because it is simple, effective and secure. As far as risk is concerned, there is absolutely no comparison to the widespread and well-documented process and security issues with touchscreen voting systems, even before you bring in the enormous public health concerns of using those methods during a pandemic.

Federal law requires that troops around the world, among others unable to vote in person, are able to request and submit their ballots by mail. That this is the preferred method for voting in combat zones is practically all the endorsement such a system needs. That the president votes by mail is just the cherry on top.

Fear of voters

So why hasn’t voting by mail been adopted more widely? The same reason we have gerrymandered districts: Politicians have manipulated the electoral process for decades in order to stack the deck in their favor. While gerrymandering has been employed with great (and deplorable) effect by both Democratic and Republican officials, voter suppression is employed overwhelmingly by the political right.

While this is certainly a politically charged statement, it’s not really a matter of opinion. The demographics of the voting public are such that as the proportion of the population that votes grows, the aggregate position begins to lean leftward. This happens for a variety of reasons, but the result is that limiting who votes benefits conservatives more than liberals. (I am not so naive to think that if it were the other way around, Democrats would altogether abstain from the practice, but that isn’t the case.)

This is not a new complaint. Deliberate voter suppression goes back a century and more. Nor is the practice equally distributed. For one thing, white, well-off, urban areas are more likely to have effective and modern voting systems and laws.

This is not only because those areas are generally the first to receive all good things, but because voter suppression has been aimed specifically at people of color, immigrants, the poor and so on. Again, this is no longer a controversial or even particularly partisan statement; it has been admitted to by politicians and strategists at every level — including, quite recently, by the president: “They had things, levels of voting that if you’d ever agreed to it, you’d never have a Republican elected in this country again.”

When voting by mail was merely a convenient, effective alternative to voting in person, it was fairly easy to speak against it. Now, however, voting by mail is increasingly looking like the only possible method to accomplish an election.

Again, think of how we would vote during a stay-at-home order. Using only today’s methods would be dangerous, chaotic and generally an ineffective way to ask the population at large who they want to lead their city, state and country.

That is no way to conduct an election. Therefore, we currently have no way to conduct a national election. Voting by mail is the only method that can realistically be rolled out to accomplish an effective election in 2020.

Disunited states

Because elections are run by state authorities, voting methods and laws vary widely between them. The quickest way to a nationwide vote-by-mail system would use federal funding and authority, but even if states were in favor of this (they won’t be, as it is an encroachment on their authority), Washington is not. The possibility of a bill implementing universal voting by mail passing the House, Senate and the president’s desk by November is, sadly, remote.

Which is not to say that no one in D.C. is not trying it:

This means it’s down to the states — not great news, considering it is at the state level that voting rights have been eroded and voter suppression enshrined in policy.

The only hope we have is for state authorities to recognize that the 2020 presidential election will be a closely watched litmus test for competence and corruption that will haunt them for years. It’s one thing to put your finger on the scale under normal circumstances. It’s quite another to author a high-profile electoral failure in an election few doubt will be one of the most consequential in American history — especially if that failure was manifestly preventable.

And we know it is preventable because due to federal voting rights laws, every state already has some form of accessible, mail-in or absentee voting. This is not a matter of inventing a new system from scratch, but scaling existing, proven systems in ways already demonstrated and verified over decades. Several states, for instance, have simply announced that all voters will get absentee ballots or applications sent unrequested to their homes. No one said it would be easy, but the first step — committing — is at least simple.

It will be obvious in a few months which state authorities actually care about the vote and which see it as just another instrument to manipulate in order to retain and accrue power. The actions taken in the run-up to this election will be remembered for a long time. As for the federal government interfering with states’ prerogative to run their own elections — that’s a violation of states’ rights that I expect will encounter strong bipartisan opposition.

How tech can help without hindering

Image Credits: NickS (opens in a new window) / Getty Images

The tech world will want to aid in this cause out of several motives, but the simple truth is there’s no way a technological solution can be developed and deployed by November. And not only is it infeasible, but there is serious political opposition to online voting systems to be widely deployed. The idea is a non-starter for this election and probably the next.

Rather than trying, Monolith-style, to evolve voting to the next phase by taking on the whole thing tip to tail, tech should be providing support structures via uniquely digital tools that complement rather than replace effective voting systems.

For example, there is the possibility, however remote, that a mailed ballot will be intercepted by some adversary and modified, shredded, selectively deposited, or what have you. No large-scale fraud has ever been perpetrated, despite what opponents of voting by mail might say. States developed preventative solutions long ago, like secure ballot boxes placed around the city and tamper-evident envelopes.

But end to end security is something at which the tech sector excels, and moreover recent advances make a digitally augmented voting process achievable. And there’s plenty of room for competition and commercial involvement, which sweetens the pot.

Here’s a way that commonplace tech could be deployed to make voting by mail even more secure and convenient.

Imagine a mail-in ballot of the ordinary fill-in-the-bubble type. Once a person makes their selections, they take a picture of the ballot in a dedicated, completely offline app. Via fairly elementary image analysis nearly any phone can now perform, the votes can be detected and tabulated, verified by the voter, then hashed with a unique voter sheet ID into a code short enough to be written down.

The ballot is mailed and (let us say for now) received. When it is processed, the same hash is calculated by the machine reader and placed on an easily accessible list. A voter can check that their vote was tabulated and correctly recorded by entering their hash into a website — which itself reveals nothing about their vote or identity.

What if something goes wrong? Say the ballot is lost. In that case the voter has a record of their vote in both image and physical form (mail-in ballots have little tear-off tabs you keep) and can pursue this issue. The same database that lets them verify their vote was correct will allow them to see if their vote was never cast. If it was interfered with or damaged and the selections differ from what the voter already verified, the hash will differ, and the voter can prove this with the evidence they have — again, entirely offline and with no private information exposed.

This example system only works because smartphones are now so common, and because it is now trivial to process an image quickly and accurately offline. But importantly, the digital aspect only addresses shortcomings of the mail-in system rather than being central to it. You vote with only a ballpoint pen, as simply as possible — but if you want to be sure, you may choose to employ the latest technology to track your vote.

A system like this may not make it in time for the 2020 election, but voting by mail can and must if there is to be an election at all.


Source: Tech Crunch

‘Fallout Shelter’ joins Tesla arcade in latest software update

Nearly a year ago, Todd Howard, the director of Bethesda Games, said that the company’s “Fallout Shelter” game would be coming to Tesla displays. It arrived, via the 2020.20 software update, this week, which was first noted at driver’s platform Teslascope.

Fallout Shelter is the latest — and one of the more modern games — to join Tesla’s Arcade, an in-car feature that lets drivers play video games while the vehicle is parked. It joins 2048, Atari’s Super Breakout, Cuphead, Stardew Valley, Missile Command, Asteroids, Lunar Lander and Centipede. The arcade also includes a newly improved (meaning more difficult) backgammon game as well as chess.

The 2020.20 software update that adds the game, along with a few other improvements, hasn’t reached all Tesla vehicles yet, including the Model 3 in this reporter’s driveway (that vehicle has the prior 2020.16.2.1 update, which includes improvements to backgammon and a redesigned Tesla Toybox).

However, YouTube channel host JuliansRandomProject was one of the lucky few who did receive it and released a video that provides a look at Fallout and how it works in the vehicle. Roadshow also discovered and shared the JuliansRandomProject video, which is embedded below.

Fallout Shelter is just one of the newer features in the software update. Some functionality was added to the steering wheel so owners can use the toggle controls to play, pause and skip video playback in Theater Mode, the feature that lets owners stream Netflix and other video (while in park).

Tesla also improved Trax, which lets you record songs. Trax now includes a piano roll view that allows you to edit and fine tune notes in a track.


Source: Tech Crunch