Google’s G Suite apps and Calendar are getting Gmail’s side panels

One of the best features of the new Gmail is its quick-access side panel with easy access to Google Calendar, Tasks, Keep and your Gmail extensions. Now, Google is bringing this same functionality to Google Calendar, Docs, Sheets, Slides and Drawings, too.

In Google Calendar, you’ll be able to quickly access Keep and Tasks, while in the rest of the G Suite apps, you’ll get easy access to Calendar, Keep and Tasks.

In Gmail, the side panel also brings up access to various G Suite extensions that you may have installed from the marketplace. It doesn’t look like that’s possible in Docs and Calendar right now, though it’s probably only a matter of time before there will be compatible extensions for those products, too. By then, we’ll likely see a “works with Google Calendar” section and support for other G Suite apps in the marketplace, too.

I’m already seeing this in my personal Google Calendar, but not in Google Docs, so this looks to be a slow rollout. The official word is that paying G Suite subscribers on the rapid release schedule should get access now, with those on the slower release schedule getting access in two weeks.


Source: Tech Crunch

Kuri maker Mayfield Robotics will cease operations in October

This likely won’t come as a surprise to anyone who saw the news late last month, but Mayfield Robotics, maker of the adorable home robot Kuri announced today that it’s ceasing operations. The company, which began life as a part of Bosch, will close its doors by the end of October this year.

In July, Mayfield announced that it was ending the manufacture of Kuri, the home assistant it debuted at CES back in 2015. The news came as Bosch determined that there wasn’t a place for Mayfield or Kuri in its larger portfolio. At the time, the company noted that its future was up in the air, but still sounded somewhat hopeful that it might eventually find a home.

“Creating a robot like Kuri is a massive undertaking,” Mayfield wrote at the time. “We don’t know what the coming months will bring. Regardless, we stand firm in our belief that the home robot Renaissance is just beginning, and it’s going to be amazing.”

in spite of that optimism, Kuri is the latest in a long line of attempts at a home robot that ultimately missed the mark, due in part to prohibitively steep price tag.

After meeting with “dozens of companies” and seeking other investments, however, Mayfield is calling it a day. “Our team is beyond disappointed, it wrote in a blog post today. “Together we’ve spent the past four years designing and building not just Kuri, but also an equally incredible company culture and spirit.”

In the coming months, Mayfield says it will work to help employees find jobs within the larger Bosch umbrella.


Source: Tech Crunch

Say “Aloha”: A closer look at Facebook’s voice ambitions

Facebook has been a bit slow to adopt the voice computing revolution. It has no voice assistant, its smart speaker is still in development, and some apps like Instagram aren’t full equipped for audio communication. But much of that is set to change judging by experiments discovered in Facebook’s code, plus new patent filings.

Developing voice functionality could give people more ways to use Facebook in their home or on the go. Its forthcoming Portal smart speaker is reportedly designed for easy video chatting with distant family, including seniors and kids that might have trouble with phones. Improved transcription and speech-to-text-to-speech features could connect Messenger users across input mediums and keep them on the chat app rather than straying back to SMS.

But Facebook’s voice could be drowned out by the din of the crowd if it doesn’t get moving soon. All the major mobile hardware and operating system makers now have their own voice assistants like Siri, Alexa, Google Assistant, and Samsung Bixby, as well as their own smart speakers. In Q2 2018, Canalys estimates that Google shipped 5.4 million Homes, and Amazon shipped 4.1 million Echoes. Apple’s HomePod is off to a slow start with less than 6 percent of the market, behind Alibaba’s smart speaker according to Strategy Analytics. Facebook’s spotty record around privacy might deflect potential customers to its competitors.

Given Facebook is late to the game, it will need to arrive with powerful utility that solves real problems. Here’s a look at Facebook’s newest developments in the voice space, and how its past experiments lay the groundwork for its next big push.

Aloha Voice

Facebook is developing its own speech recognition feature under the name Aloha for both the Facebook and Messenger apps, as well as external hardware — likely the video chat smart speaker it’s developing. Code inside the Facebook and Messenger Android apps dug up by frequent TechCrunch tipster and mobile researcher Jane Manchun Wong gives the first look at a prototype for the Aloha user interface.

Labeled “Aloha Voice Testing”, as a user speaks while in a message thread, a horizontal blue bar expands and contracts to visualize the volume of speech while recognizing and transcribing into text. The code describes the feature as having connections with external WiFi or Bluetooth devices. It’s possible that the software will run on both Facebook’s hardware and software, similar to Google Assistant that runs both on phones and Google Home speakers.

Facebook declined to comment on the video, with its spokesperson Ha Thai telling me “We test stuff all the time – nothing to share today but my team will be in touch in a few weeks about hardware news coming from the AR/VR org.” It unclear if that hardware news will focus on voice and Aloha or portal, or if it’s merely related to Facebook’s Oculus Connect 5 conference on September 25th.

A source previously told me that years ago, Facebook was interested in developing its own speech recognition software designed specifically to accurately transcribe how friends talk to each other. These speech patterns are often more casual, colloquial, rapid, and full of slang than the way we formally address computerized assistants like Amazon Alexa or Google Home.

Wong also found the Aloha logo buried in Facebook’s code, which features volcano imagery. I can confirm that I’ve seen a Facebook Aloha Setup chatbot with a similar logo on the phones of Facebook employees.

If Facebook can figure this out, it could offer its own transcription features in Messenger and elsewhere on the site so users could communicate across mediums. It could potentially let you dictate comments or messages to friends while you have your hands full or can’t look at your screen. The recipient could then read the text instead of having to listen to it like a voice message. The feature could also be used to power voice navigation of Facebook’s apps for better hands-free usage.

Speaker And Camera Patents

Facebook awarded patent for speaker

Facebook’s video chat smart speaker was reportedly codenamed Aloha originally but later renamed Portal, Alex Heath of Business Insider and now Cheddar first reported in August 2017. The $499 competitor to the Amazon Echo Show was initially set to launch at Facebook’s F8 in May, but Bloomberg reported it was pushed back amid concerns that it would exacerbate the privacy scandal ignited by Cambridge Analytica.

A new patent filing reveals Facebook was considering building a smart speaker as early as December 26th, 2016 when it filed a patent for a cube-shaped device. The patent diagrams an “ornamental design for a speaker device” invented by Baback Elmieh, Alexandre Jais, and John Proksch-Whaley. Facebook had acquired Elmieh’s startup Nascent Objects in September of that year and he’s now a technical project lead at Facebook’s secretive Building 8 hardware lab.

The startup had been building modular hardware, and earlier this year he was awarded patents for work at Facebook on several modular cameras. The speaker and camera technology Facebook has been developing could potentially evolve into what’s in its video chat speaker.

The fact that Facebook has been exploring speaker technology for so long and that the lead on these patents is still running a secret project in Building 8 strengthens the case that Facebook has big plans for the voice space.

Patents awarded to Facebook show designs for a camera (left) and video camera (right)

Instagram Voice Messaging

And finally, Instagram is getting deeper into the voice game too. A screenshot generated from the code of Instagram’s Android app by Wong reveals the development of a  voice clip messaging feature heading to Instagram Direct. This would allow you to speak into Instagram and send the audio clips similar to a walkie-talkie, or the voice messaging feature Facebook Messenger added back in 2013.

You can see the voice button in the message composer at the bottom of the screen, and the code explains that to “Voice message, press and hold to record”. The prototype follows the recent launch of video chat in Instagram Direct, another feature TechCrunch broke the news on thanks to Wong’s research. An Instagram spokesperson declined to comment, as is typical when features are spotted in its code but aren’t publicly testing yet, saying “unfortunately nothing more to share on this right now.”

The Long Road To Voicebook

Facebook has long tinkered in the voice space. In 2015, it acquired a natural language processing startup Wit.ai that ran a developer platform for building speech interfaces, though it later rolled Wit.ai into Messenger’s platform team to focus on chatbots. Facebook also began testing automatically transcribing Messenger voice clips into text in 2015 in what was likely the groundwork for the Aloha feature seen above. The company also revealed its M personal assistant that could accomplish tasks for users, but it was only rolled out to a very limited user base and later turned off.

The next year, Facebook’s head of Messenger David Marcus claimed at TechCrunch Disrupt that voice “is not something we’re actively working on right now,” but added that “at some point it’s pretty obvious that as we develop more and more capabilities and interactions inside of Messenger, we’ll start working on voice exchanges and interfaces.” However, a source had told me Facebook’s secretive Language Technology Group was already exploring voice opportunities. Facebook also began testing its Live Audio feature for users who want to just broadcast sound and not video.

By 2017, Facebook was offering automatic captioning for Pages’ videos, and was developing a voice search feature. And this year, Facebook began trying voice clips as status updates and Stories for users around the world who might have trouble typing in their native tongue. But executives haven’t spoken much about the voice initiatives.

The most detailed comments we have come from Facebook’s head of design Luke Woods at TechCrunch Disrupt 2017 where he described voice search saying it was, “very promising. There are lots of exciting things happening…. I love to be able to talk to the car to navigate to a particular place. That’s one of many potential use cases.” It’s also one that voice transcription could aid.

It’s still unclear exactly what Facebook’s Aloha will become. It could be a defacto operating system or voice interface and transcription feature for Facebook’s smart speaker and apps. It could become a more full-fledged voice assistant like M but with audio. Or perhaps it could become Facebook’s bridge to other voice ecosystems, serving as Facebook’s Alexa Skill or Google Assistant Action.

When I asked Woods “How would Facebook on Alexa work?”, he said with a smile “That’s a very interesting question! No comment.”


Source: Tech Crunch

Elkrem is a blockchain dev board for tinkerers

Creators of the 1Sheeld, a tool designed to connect smartphones to Arduino boards, have created something even more interesting. Their latest product, the Elkrem, is a smart kit for creating blockchain IoT devices and they have raised $250,000 from Endure Capital and Consensys to build the project.

The founders are Amr Saleh and Islam Mustafa launched the 1Sheeld at TechCrunch Disrupt 2013 and sold tens of thousands of units in 120 countries. Now they’re building a new tool based entirely on blockchain.

“Elkrem is a Blockchain hardware development board. It allows Blockchain developers to integrate Dapps with hardware prototypes in an easy way without having deep knowledge in hardware development, and also allows electrical engineers and hardware developers to connect Blockchain to their hardware projects without having deep knowledge of how the Blockchain works,” said Saleh. “So they both can trigger actuators through smart contracts and log sensors data to smart contracts as well.”

The board is similar to an Arduino and has two processors, storage, and WiFi model. One processor runs a specialized Linux variant with interfaces to Ethereum, IPFS, Swarm, Whisper, Bitcoin, Status.im, and others. The other processor can do anything else you throw at it.

“Our edge is faster development, faster prototyping and faster go to market,” said Saleh. “The board allows you to send private, decentralized IoT messages using peer-to-peer communication”

What does all this mean? Basically it’s a little board that makes it far easier to manage your Blockchain efforts. It uses a library called Koyn to let you accept payments in Bitcoin with a single line of code and they even built a few cool projects including a Bitcoin-enabled candy machine and an electrical outlet that you can rent with Bitcoins. The team plans to go live on Kickstarter later this year.


Source: Tech Crunch

From ICO to SEC: Join us for a panel on regulation at TechCrunch Disrupt

Capital, crypto, and regulation go together like bread, peanut butter, and jelly. And what better way to make a great sandwich than to bring them all together at TechCrunch Disrupt. I’ll be leading a panel with Avichal Garg of Electric Capital, Arianna Simpson of Autonomous Partners, and Valerie Szczepanik of the SEC in San Francisco.

Garg is a longtime investor and former product head at Facebook. He’s currently at Electric Capital where he’s a managing partner. Simpson is a skilled crypto investor and is currently managing director at Autonomous Partners. Szczepanik has had a long career at the SEC and was recently named Associate Director of the Division of Corporation Finance and Senior Advisor for Digital Assets and Innovation. All three of them will help us navigate the new world of investment we are no all coming to face.

The future of investment is currently up in the air. With the rise of token sales, fundraising seems like a needless task for most founders. But where will they be with the token world fizzles out? Can the new funding tricks stack up to VC and angel investment?

We’ll explore these concepts in our wide-ranging discussion and hopefully Szczepanik can shed some light on these new forms of investment.

The full agenda is here. Passes for the show are available here.


Source: Tech Crunch

The Palette 2 lets any 3D printer output color

The Mosaic Manufacturing Palette 2 – an upgrade the original Palette – is a self-contained system for full color 3D printing. It works by cutting and splicing multiple filament colors and then feeding them through as the object is printed. The system uses a unique and internal cutter called the Splice Core that measures and cuts filament as it prints, ensuring the incoming filament can change colors quickly and easily.

The printer can out items in four colors and it can print any amount of any color. It extrudes excess color into a little object called a tower, allowing it to print as much or as little of a color as necessary. It also has automatic runout detection which lets you print larger objects over a longer period.

It works with a number of current 3D printers and the printers require no real updates to use the Palette or its more robust brother, the Pro. A new piece of software called Canvas allows users to plan their color prints and send the instructions to both the Palette and the printer for printing.

The Palette 2 costs $449 while the Pro costs $699. The Pro lets you print faster than the Palette 2.

It’s a very clever hack – instead of making the printer do all the work you instead make the filament do the work. Because it is a self-contained system you can use the Palette with nearly any printer although the team is working on native support for many popular printers. They are able to print lots of interesting stuff including 3D printed phone case models, rubbery watch bands using stretchable materials, and even educational objects. Most impressive? They were able to print a scan of a brain with evidence of a tumor visible in yellow. While it’s not completely full color – yet – the Palette is a great solution for those looking to print color on a budget.


Source: Tech Crunch

Venezuela ties its currency to a state-run cryptocoin

Venezuela has just taken drastic and unprecedented steps to stabilize its currency as it grapples with hyperinflation and other economic issues. The country’s currency has not only been massively devaluated and renamed, but is now tied a state-issued cryptocurrency called the Petro, which itself fluctuates based on oil prices. Hardly anyone knows what to expect out of this.

The Petro is not new; it arrived earlier this year in the form of a stepped offering to private and then public buyers, raising more than $3 billion from foreign governments and presumably some private buyers. President Trump forbade the U.S. from taking part.

Although it is supposed to be a liquid asset reflective of the price of oil, and there is of course a whitepaper that describes the system in broad strokes, though it lacks almost any real technical detail. But the country’s own national assembly called the state-issued cryptocurrency unconstitutional, and blockchain industry experts have called it a scam. Bloomberg has a good roundup of official communications about the token.

The scheme originated in the administration of Venezuelan President Nicolas Maduro and seems to be an attempt to lend some credibility and stability to the country’s currency. The strong bolivar, which has lost more than 90 percent of its value over the last decade, has been renamed the sovereign bolivar and artificially returned to pre-inflation values. In practical terms that means a loaf of bread that cost 100 bolivars in 2012 and 100,000 last week will now, theoretically, cost around 100 again. Whether that will actually happen — the black market rates are probably more influential — is anyone’s guess.

In case it isn’t clear, I’m not an economist and don’t plan to become one. But this is an historic moment in the blockchain world in that it is the first time an official fiat currency has been pegged to a state-run cryptocurrency. That makes it of interest to the international community for many reasons, although obviously this is far from the ideal method by which one might want to demonstrate such a system.

Although this whole situation is nominally of interest, it seems unlikely to benefit the people on the ground in Venezuela who have no use for oil-based cryptocurrencies and just want to buy some bottled water, a package of diapers, and a train ticket out of the country. How this all plays out will no doubt be instructive but let’s not lose sight of the humanitarian crisis playing out on the streets. Here as elsewhere, donations can help.


Source: Tech Crunch

Amazon’s Echo Dot Kids Edition gains new skills from Disney and others

Amazon is today rolling out a set of new features to its Echo Dot Kids Edition devices – the now $70 version of the Echo Dot smart speaker that ships with a protective case and a year’s subscription to Amazon FreeTime, normally a $2.99 per month subscription for Prime members. Now joining the Kids Edition’s parental controls and other exclusive content are new skills from Disney, Hotel Transylvania, and Pac-Man as well as a calming “Sleep Sounds” skill for bedtime.

There are now four new skills that play sounds of thunderstorms, rain, the ocean, or a babbling brook, as well as an all-encompassing “sleep sounds” skill that offers 42 different soothing options to choose from. New parents may be glad to know that this includes baby soothing sounds like cars, trains and the vacuum (don’t knock it until you try it, folks. It works.)

Amazon clarified to us that while there is a version of sleep sounds in the Skill Store today, this version launching on the Kids Edition is a different, child-directed version.

Also new to the Kids Edition is “Disney Plot Twist,” which is like a Disney version of Mad Libs where players change out words and phrases in short adventure stories. The skill features popular Disney characters like Anna, Olaf and Christoff as the narrators and is exclusive to Kids Edition devices.

The new movie “Hotel Transylvania 3: Summer Vacation” is featured in another new skill, Drac’s Pack, which includes monster stories, songs and jokes.

Meanwhile, Pac-Man Stories is a skill that includes interactive stories for the whole family, that work similar to choose-your-own-adventures – that is, the decisions you make will affect the ending.

Both of these are broadly available on Alexa, meaning they don’t require a Kids Edition device to access.

Stories, however, does appear to be one of the areas Amazon is investing in to make its Alexa-powered speakers more appealing to families with young children. The company recently decided to stop working on its chat stories app Amazon Rapids, saying it will instead continue to adapt those Amazon Rapids stories for the Alexa platform.

Amazon also tries to market the Echo Dot Kids Edition to families by making some kid-friendly content, like Disney Plot Twist, available exclusively to device owners.

For example, it already offers exclusive kid skills like Disney Stories, Loud House Challenge, No Way That’s True, Funny Fill In, Spongebob Challenge, Weird but True, Name that Animal, This or That, Word world, Ben ten, Classroom thirteen, Batman Adventures, and Climb the Beanstalk, with this device.

But the Kids Edition can also be confusing to use, because the exclusive skills come whitelisted and ready to go, while other kid-safe skills have to be manually whitelisted through a parents dashboard. And there isn’t enough instruction either from Alexa or in the Alexa app on this process, at present, we found when testing the device earlier.

Unless there’s a specific exclusive skill that parents really want their kids to have, the savings are also minimal when buying the Kids Edition Dot/FreeTime bundle, versus buying a regular Dot and adding on FreeTime separately.


Source: Tech Crunch

NYU and Facebook team up to supercharge MRI scans with AI

Magnetic resonance imaging is an invaluable tool in the medical field, but it’s also a slow and cumbersome process. It may take fifteen minutes or an hour to complete a scan, during which time the patient, perhaps a child or someone in serious pain, must sit perfectly still. NYU has been working on a way to accelerate this process, and is now collaborating with Facebook with the goal of cutting down MRI durations by 90 percent by applying AI-based imaging tools.

It’s important at the outset to distinguish this effort from other common uses of AI in the medical imaging field. An X-ray, or indeed an MRI scan, once completed, could be inspected by an object recognition system watching for abnormalities, saving time for doctors and maybe even catching something they might have missed. This project isn’t about analyzing imagery that’s already been created, but rather expediting its creation in the first place.

The reason MRIs take so long is because the machine must create a series of 2D images or slices, many of which must be stacked up to make a 3D image. Sometimes only a handful are needed, but for full fidelity and depth — for something like a scan for a brain tumor — lots of slices are required.

The FastMRI project, begun in 2015 by NYU researchers, investigates the possibility of creating imagery of a similar quality to a traditional scan, but by collecting only a fraction of the data normally needed.

Think of it like scanning an ordinary photo. You could scan the whole thing… but if you only scanned every other line (this is called “undersampling”) and then intelligently filled in the missing pixels, it would take half as long. And machine learning systems are getting quite good at tasks like that. Our own brains do it all the time: you have blind spots with stuff in them right now that you don’t notice because your vision system is filling in the gaps — intelligently.

The data collected at left could be “undersampled” as at right, with the missing data filled in later

If an AI system could be trained to fill in the gaps from MRI scans where only the most critical data is collected, the actual time during which a patient would have to sit in the imaging tube could be reduced considerably. It’s easier on the patient, and one machine could handle far more people than it does doing a full scan every time, making scans cheaper and more easily obtainable.

The NYU School of Medicine researchers began work on this three years ago and published some early results showing that the approach was at least feasible. But like an MRI scan, this kind of work takes time.

“We and other institutions have taken some baby steps in using AI for this type of problem,” explained NYU’s Dan Sodickson, director of the Center of Advanced Imaging Innovation and Research there. “The sense is that already in the first attempts, with relatively simple methods, we can do better than other current acceleration techniques — get better image quality and maybe accelerate further by some percentage, but not by large multiples yet.”

So to give the project a boost, Sodickson and the radiologists at NYU are combining forces with the AI wonks at Facebook and its Artificial Intelligence Research group (FAIR).

NYU School of Medicine’s Department of Radiology chair Michael Recht, MD, Daniel Sodickson, MD, vice chair for research and director of the Center for Advanced Imaging Innovation and Yvonne Lui, MD, director of artificial intelligence, examine an MRI

“We have some great physicists here and even some hot-stuff mathematicians, but Facebook and FAIR have some of the leading AI scientists in the world. So it’s complementary expertise,” Sodickson said.

And while Facebook isn’t planning on starting a medical imaging arm, FAIR has a pretty broad mandate.

“We’re looking for impactful but also scientifically interesting problems,” said FAIR’s Larry Zitnick. AI-based creation or re-creation of realistic imagery (often called “hallucination”) is a major area of research, but this would be a unique application of it — not to mention one that could help some people.

With a patient’s MRI data, he explained, the generated imagery “doesn’t need to be just plausible, but it needs to retain the same flaws.” So the computer vision agent that fills in the gaps needs to be able to recognize more than just overall patterns and structure, and to be able to retain and even intelligently extend abnormalities within the image. To not do so would be a massive modification of the original data.

Fortunately it turns out that MRI machines are pretty flexible when it comes to how they produce images. If you would normally take scans from 200 different positions, for instance, it’s not hard to tell the machine to do half that, but with a higher density in one area or another. Other imagers like CT and PET scanners aren’t so docile.

Even after a couple years of work the research is still at an early stage. These things can’t be rushed, after all, and with medical data there are ethical considerations and a difficulty in procuring enough data. But the NYU researchers’ ground work has paid off with initial results and a powerful data set.

Zitnick noted that because AI agents require lots of data to train up to effective levels, it’s a major change going from a set of, say, 500 MRI scans to a set of 10,000. With the former data set you might be able to do a proof of concept, but with the latter you can make something accurate enough to actually use.

The partnership announced today is between NYU and Facebook, but both hope that others will join up.

“We’re working on this out in the open. We’re going to be open-sourcing it all,” said Zitnick. One might expect no less of academic research, but of course a great deal of AI work in particular goes on behind closed doors these days.

So the first steps as a joint venture will be to define the problem, document the data set and release it, create baselines and metrics by which to measure their success, and so on. Meanwhile, the two organizations will be meeting and swapping data regularly and running results past actual clinicians.

“We don’t know how to solve this problem,” Zitnick said. “We don’t know if we’ll succeed or not. But that’s kind of the fun of it.”


Source: Tech Crunch

Titan launches its mobile ‘not a hedge fund’

What Robinhood did to democratize buying individual stocks, Titan wants to do for investing in a managed portfolio. Instead of being restricted to rich accredited investors willing to pour $5,000 or even $500,000 into a traditional hedge fund that charges 2 percent fees and 20 percent of profits, Titan lets anyone invest as little as $1,000 for just a 1 percent fee on assets while keeping all the profits. Titan picks the top 20 stocks based on data mined from the most prestigious hedge funds, then invests your money directly in those with personalized shorts based on your risk profile.

Titan has more $10 million under management after quietly spinning up five months ago, and this week the startup graduates from Y Combinator. Now Titan is ready to give upscale millennials a more sophisticated way to play the markets.

This startup is hot. It refused to disclose its funding, likely in hopes of not tipping off competitors and incumbents to the opportunity it’s chasing. But it’s the buzz of YC, with several partners already investing their own money through Titan. When you consider Stanford-educated free stock-trading app Robinhood’s stunning $5.6 billion valuation thanks to its disruption of E*Trade, it’s easy to imagine why investors are eager to back Titan’s attack on other financial vehicles.

“We’re all 28 to 30 years old,” says co-founder Clayton Gardner about his team. “We want to actively invest and participate in the market but most of us who don’t have experience have no idea what we’re doing.” Most younger investors end up turning to family, friends or Reddit for unreliable advice. But Titan lets them instantly buy the most reputable stocks without having to stay glued to market tickers, while using an app to cut out the costs of pricey brokers and Wall Street offices.

Titan co-founders (from left): Max Bernardy, Joe Percoco, Clayton Gardner

“We all came from the world of having worked at hedge funds and private equity firms like Goldman Sachs. We spent five years doing that and ultimately were very frustrated that the experiences and products we were building for wealthy people were completely inaccessible to people who weren’t rich or didn’t have a fancy suit,” Gardner recalls. “Instead of charging high fees, we can use software to bring the products directly to consumers.”

How Titan works

Titan wants to build BlackRock for a new generation, but its origin is much more traditional. Gardner and his co-founder Joe Percoco met on their first day of business school at UPenn’s Wharton (of course). Meanwhile, Titan’s third co-founder, Max Bernardy, was studying computer science at Stanford before earning a patent in hedge fund software and doing engineering at a few startups. The unfortunate fact is the world of finance is dominated by alumni from these schools. Titan will enjoy the classic privilege of industry connections as it tries to carve out a client base for a fresh product.

“We were frustrated that millennials only have two options for investing: buying and selling stocks themselves or investing in a market-weighted index,” says Gardner. “We’re building the third.”

Titan’s first product isn’t technically a hedge fund, but it’s built like one. It piggybacks off the big hedgies that have to report their holdings. Titan uses its software to determine which are the top 20 stocks across these funds based on turnover, concentration and more. All users download the Titan iOS or Android app, fund their account and are automatically invested into fractional shares of the same 20 stocks.

Titan earns a 1 percent annual fee on what you invest. There is a minimum $1,000 investment, so some younger adults may be below the bar. “We’re targeting a more premium millennial for start. A lot of our early users are in the tech field and are already investing,” says Gardner.

For downside protection, Titan collects information about its users to assess their risk tolerance and hedge their investment by shorting the market index 0 to 20 percent so they’ll earn some if everything crashes. Rather than Titan controlling the assets itself, an industry favorite custodian called Apex keeps them secure. The app uses 256-bit encryption and SSL for data transfers, and funds are insured up to $500,000.

How have its bets and traction been doing? “We’ve been pleasantly surprised so far,” Gardner beams, noting Titan’s thousands of clients. It claims it’s up 10 percent year-to-date and up 33 percent in one year compared to the S&P 500’s 2 percent year-to-date and 22 percent in one year. Since users can pull out their funds in three to four business days, Titan is incentivized to properly manage the portfolio or clients will bail.

But beyond the demographic and business model, it’s the educational elements that set Titan apart. Users don’t have to hunt online for investment research. Titan compiles it into deep dives into top stocks like Amazon or Comcast, laying out investment theses for why you should want your money in “the everything store” or “a toll road for the Internet.” Through in-app videos, push notifications and reports, Titan tries to make its users smarter, not just richer.

With time and funding, “Eventually we hope to launch other financial products, including crypto, bonds, international equities, etc.,” Percoco tells me. That could put Titan on a collision course with Wealthfront, Coinbase and the recently crypto-equipped Robinhood, as well as direct competitors like asset managers BlackRock and JP Morgan.

“If we fast-forward 10 to 20 years in the future, millennials will have inherited $10 trillion, and at this rate they’re not equipped to handle that money,” says Gardner. “Financial management isn’t something taught in school.”

Worryingly, when I ask what they see as the top threats to Titan, the co-founders exhibited some Ivy League hubris, with Gardner telling me, “Nothing that jumps out…” Back in reality, building software that reliably prints money is no easy feat. A security failure or big drop could crater the app’s brand. And if its education materials are too frothy, they could instill blind confidence in younger investors without the cash to sustain sizable losses. Competitors like Robinhood could try to swoop in an offer managed portfolios.

Hopefully if finance democratization tools like Titan and Robinhood succeed in helping the next generations gather wealth, a new crop of families will be able to afford the pricey tuitions that reared these startups’ teams. While automation might subsume labor’s wages and roll that capital up to corporate oligarchs, software like Titan could boost financial inclusion. To the already savvy, 1 percent might seem like a steep fee, but it buys the convenience to make the stock market more accessible.


Source: Tech Crunch