Startups Weekly: Upfront Ventures bets on a bus service

Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy news pertaining to startups and venture capital. Before I jump into today’s topic, let’s catch up a bit. Last week, I profiled an e-commerce startup Part & Parcel. Before that, I wrote about Stripe’s grand plans.

Remember, you can send me tips, suggestions and feedback to kate.clark@techcrunch.com or on Twitter @KateClarkTweets. If you don’t subscribe to Startups Weekly yet, you can do that here.

Startup Spotlight: Landline

Some startups build space ships that will one day send us all to Mars, others put their time and energy into improving 350 year old infrastructure.

Landline, the operator of a bus network in the Midwest, is one of the latest companies to raise venture capital. The business has closed a $3.85 million round led by Los Angeles firm Upfront Ventures, with participation from Mucker Capital and Matchstick Ventures. The company is actually based out of LA, too, but has completed its initial launch in Minnesota, where there’s greater demand for short-term bus travel.

Landline isn’t just a few buses with startup branding. Founder and chief executive officer David Sunde tells TechCrunch a ride on Landline is booked through its partner airline Sun Country Airlines. A traveler pays Sun Country one fixed price to get them from the bus pick-up point to their final destination. The goal is to help those who live far distances from airports save money and to make the experience of busing more enjoyable.

“It’s all meant to be at the level of reliability that you would expect from an air carrier,” Sunde tells TechCrunch. “We don’t want people who get on the bus to be surprised or upset — we want it to be a seamless experience … The perception of bus travel in the U.S. is negative. A big part of our mission is to get people comfortable on buses again as a viable alternative to air travel in certain markets.”

For those of you wondering, have these people ever heard of Greyhound? Landline says they wont compete with Greyhound because of the more than 100-year-old transportation business’s focus on long-haul trips. Landline will specifically focus on connecting those in rural communities to airports, particularly regions where there aren’t already bus routes that conveniently access the airport. Can’t say I’m particularly bullish on this one but the startup is very early and transportation is a massive market ripe for disruption.

“Our vision is completely integrated multi-modal travel,” Sunde added.

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IPO Update

WeWork has delayed its IPO following questions surrounding its corporate governance and the ultimate value of the company. The co-working business says it expects to go public by the end of the year. Airbnb, for its part, filed a press release this week confirming its plans to go public in 2020. We don’t know much about the company’s plans, but we wouldn’t be too surprised to see the home-sharing decacorn pursue a direct listing.

Postmates, the popular food delivery service, raised another $225 million at a valuation of $2.4 billion in a round led by the private equity firm GPI Capital this week. The financing brings Postmates’ total funding to nearly $1 billion. The company filed privately with the SEC for an IPO earlier this year. Sources familiar with the company’s exit plans say the business intends to publicly unveil its IPO prospectus this month.

To discuss the company’s journey to the public markets and the challenges ahead in the increasingly crowded food delivery space, Postmates co-founder and chief executive officer Bastian Lehmann will join us onstage at TechCrunch Disrupt on Friday October 4th. Don’t miss it.

VC Deals

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Learn from top VCs at TechCrunch Disrupt

A whole lot of VCs will be joining us at TechCrunch Disrupt.

We’ll have a16z general partners Chris Dixon, Angela Strange and Andrew Chen for insight into the firm’s latest activity. Seed investor Charles Hudson of Precursor Ventures and Redpoint Ventures general partner Annie Kadavy will show up to give founders tips on how to raise VC. Y Combinator’s Michael Seibel and Ali Rowghani will join us with advice on how to get accepted to their respected accelerator.

Plus, GV’s David Krane, Sequoia general partner Jess Lee, Floodgate’s Ann Miura-Ko, Aspect Ventures’ Theresia Gouw, Bessemer Venture Partners’  Tess Hatch, Forerunner Ventures’ Eurie Kim, Mithril Capital’s Ajay Royan and SOSV’s Arvind Gupta will be on deck to comment on the respective fields.

Disrupt SF runs October 2-4 at the Moscone Center in the heart of San Francisco. Passes are available here.

#EquityPod

This week, the lovely Alex Wilhelm and I welcomed Kleiner Perkins’ Mamoon Hamid, known for his investments in Slack, Figma, Cameo and more, to riff on upcoming IPOs and debate the scalability of D2C brands. Listen to the episode here or watch us on YouTube.

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercastSpotify, and all the casts.


Source: Tech Crunch

Want to crush competitors? Forget SoftBank, Blackstone suggests; it can write $500 million checks, too

Back in January, Blackstone — the investment firm whose assets under management surpassed a jaw-dropping half a trillion dollars earlier this year — quietly began piecing together a new, growth equity platform called Blackstone Growth, or BXG. Step one was hiring away Jon Korngold from General Atlantic, where he’d spent the previous 18 years, including as a managing director and a member of its management committee.

Step two has been for Korngold, who is responsible for running the new program, to build a team, which he has been doing throughout the year, bringing in “people who speak the language of Blackstone,” he says, including from TCV, Andreessen Horowitz, Carlyle, Vista Private Equity, NEA, and SoftBank .

Apparently, the group is now ready for business. It has already closed on two deals from existing pools of capital with Blackstone, including acquiring outright the mobile ad company Vungle. According to Korngold, two more term sheets “are being signed imminently.”

We talked with him last week for more information about what the group is shopping for, what size checks it is willing to write, and which firms it views as its biggest rivals for deals (and more). Our chat has been edited for length and clarity.

TC: You’ve been hiring throughout the year people who have large-scale growth equity backgrounds. Are many of them women?

JK: Blackstone is one of the most diverse organizations [in terms of] gender or ethnicity. In general, it’s a huge priority for the firm and within our group of 20 people, 40 percent are female, a number we hope to get to 50 percent. Hiring is still in process, but it’s a really healthy culture.

TC: How many people does Blackstone employ altogether?

JK: There are 2,600 altogether across 24 offices.

TC: Is your group investing a discreet pool of capital?

JK: At some point, we’ll have a dedicated pool of capital, but as a firm, we’ve been investing in growth equity for some time [so have relied on other funds within Blackstone to date].

TC: There’s no shortage of growth equity in the world right now. What is Blackstone building that’s so different?

JK: The sheer scale of the operation is different. We have nearly 100 operating professionals — employees of Blackstone — who were hired because they are functional experts — from pricing experts to process engineering experts to human capital and procurement and digital marketing experts — and who can advise our companies.

Also, Blackstone can holistically assist a company through [our] growth equity and real estate and procurement and debt [groups] and other related infrastructure support, enabling companies to fight way above their weight class.  We have 600,000 people across our portfolio, and that provides an interesting opportunity for our companies to cross pollinate [and to cross-sell to] one another.

Unlike most growth equity firms, we also have a significant number of data scientists who do three things: identify proprietary signals across asset classes to help instruct where we should be hunting; help our companies monetize their data; and help us in our diligence. They’ll access raw data feeds and almost see the matrix, if you will.

TC: How many data scientists are we talking about?

JK: A couple dozen [across Blackstone].

TC: Blackstone must be competing against fast-growing tech companies for data scientists. How do you convince them that work for an investing giant is the better gig?

JK: If you’re an intellectually curious individual, there are so many signals [coming through Blackstone] that it’s almost a proxy for the world. It’s like manna from heaven. It’s not like they’re doing a single-threaded approach. The nature of the challenges across our companies is so vast and so varying that whether you’re looking at a fast-growing retailer or a cell phone tower in another country,  the nature of the tasks is always changing.

TC: SoftBank seems to have shaken things up a bit when it came on to the scene, given the size checks it is writing. Your boss, Steven Schwarzman, who recently talked with us about this bigger new push into growth equity, made sure to note that there are few organizations that can write $500 million checks.

JK: [Laughs.] Everyone in Silicon Valley wants to talk about SoftBank. We celebrate a lot of what SoftBank has done. They’ve validated the thesis that there’s an opportunity for growth equity on a scale that hasn’t traditionally been available.

It’s similar to the way we’re set up. SoftBank was never meant to compete with the venture community; they’re competing with the capital markets, and as private companies look to stay private longer market, SoftBank wants to support their development.

TC: And . . .

JK: I think the reality is that a lot of businesses have unproven business models and unit economics, and they’re garnering massive amounts of capital from different constituents. It’s less about who is staying private longer but are they sustainable over the long run, whether public or private. I think a lot of companies right now now that have unproven business models have been flooded by cash at too small a scale where they aren’t ready to handle it, and it masks weaknesses.

TC: Where is that most acute, in your view?

JK: I see that at the smaller growth equity phase — the $25 million to $150 million [per firm per check] range — where most growth equity resides because you have every VC firm there now. Many of the growth funds that have moved downstream. You also have crossover funds like DST and Coatue and Tiger, along with corporate venture capital. That huge flood of capital has created these massive valuations and it has  compressed the due diligence involved.

If you look at Lyft and Uber — and Snap was in this category — the market is starting to speak. Public market shareholders are willing to give you the benefit of the doubt for a while but not indefinitely. You can’t feed the machine for growth’s sake.

TC: So what type of deals are you searching out?

JK: We won’t step into a situation where unit economics aren’t proven from day one. You won’t see us in a company that’s selling $1 for 80 cents and hoping someday that works. We’re Inherently more binary in profile. We’re capital-preservation minded while looking for asymmetric upside, and that’s where we have a disproportionate advantage. You’ll see us do deals where we can put our thumb on the scale, because of our real estate holdings or buyout assets or because [search across our] portfolio for help with procurement costs or insurance or R&D or a company’s go-to-market strategy.

TC: What have you done that proves all these bells and whistles make a difference? 

JK: We have a couple of signed deals, including [the mobile ad company] Vungle [for a reported $750 million-ish], though we’re more often looking for growth-equity minority ownership positions. [Think] companies that are looking for a partner and not an owner. We’ll do growth buyouts but the vast majority will be significant minority positions.

We have a couple of other deals that will be signed imminently that we can’t discuss just yet.

TC: Are you hoping to take these companies public? Flip them to another private equity firm? Relatedly, do you have any thoughts about the public market and whether more companies should be going out?

JK: We’ll only look to an IPO if there’s a reason for it. Oftentimes, companies shouldn’t be public; sometimes, they should be, including if they need an acquisition currency or [to better establish their] branding. But the idea of, let’s rush to the door [is not our style].

TC: Who are your most direct competitors? Not Vista Private Equity, since it seems to prefer buying companies whole.

JK: Vista is going exclusively for control buyouts, massive turnarounds. It descends upon a company and says, ‘This is the playbook you will follow.’ It also uses a lot of leverage, where the vast majority or our [deals] are un-levered. We don’t use much debt. Vista and Silver Lake are much more competitors with each other.

TC: KKR then? Carlyle? 

KR: They’re also multi-asset managers, but as it relates to growth equity, we’ve really found ourselves in slightly more rarefied air. Blackstone has demonstrated that it can use its scale to create an operational advantage, and virtually no other company — or few — can contemplate checks like we can.

TC: What do you want for these checks, other than a minority position? How involved are you and what size stake, exactly, are you aiming to buy?

JK: We want to have a relevant voice, so we want to be in the boardroom, but there is no target range. It can be 10 or 20 or 30 percent. It can be 80 percent. Ideally you want to be the main outside pool of capital along with management team.


Source: Tech Crunch

Here are the security sessions you can’t miss at Disrupt SF

Security is in everything, it’s everywhere, and it’s everyone’s responsibility. What part are you playing?

At TechCrunch Disrupt SF on October 2-4, we’re proud to have some of the smartest security executives and highest-ranking officials ready to talk shop on stage. Security will be front and center of Disrupt SF with our panels and experts to discuss a range of topics. You can’t afford to miss out.

If you haven’t booked your ticket to Disrupt SF in two weeks, here are three reasons why you should.

On stage we’ll talk to Homeland Security assistant director Jeanette Manfra to understand some of the greatest threats that face the United States today. As one of Homeland Security’s most senior cybersecurity officials, Manfra will discuss election hacking, how to defend against nation state attackers, and what companies can do to be prepared.

We will also have former NSA director Mike Rogers and Team8 founder Nadav Zafrir on stage to dive into the murky world of intelligence. Rogers, a career-long cybersecurity official and former head of the National Security Agency, will discuss his time at NSA and how the landscape of cybersecurity threats has changed, and what he brings to the private sector as a senior advisor to Team8, a cybersecurity think tank and company creation platform. Zafrir, a former Israeli intelligence chief who now heads the think tank, will join Rogers to talk about their most recent venture — security startups.

And, talking of which, how do you build a secure startup without slowing growth? Companies are hungry to launch and grow, but scale often comes with a tradeoff — security, or lack of. We have three leading experts who will join us on the Extra Crunch stage to discuss how to build a secure startup without compromising on scale.

Heather Adkins, Google’s director of security and privacy, will join IOActive chief executive Jennifer Sunshine Steffens and Duo’s Dug Song to talk security. How do you keep your customer data safe? How do you defend against unknown threats? How do you stay ahead of the bad guys?

Whether you’re a security professional, a founder or investor, or a startup decision maker, there’s something for everyone.

Disrupt SF runs October 2 to October 4 at the Moscone Center in San Francisco. Need tickets? Head on over here to pick some up.

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Source: Tech Crunch

“Am I as brave as I think I am?” MIT Media Lab student Arwa Mboya on the aftermath of a scandal

It’s been another hard week at MIT. Our campus has been divided by revelations of inappropriate fundraising, coverups, and the harboring of far too many tech geniuses who seemingly put their own interests and careers over the safety of women, among other marginalized groups.

As a chaplain to students and faculty at the Institute, but also as an opinion writer on the ethics of technology who is supposed to be on sabbatical from the chaplaincy to focus on the writing, I’ve been torn all week as to what to say. If you don’t know what a chaplain is, and you would hardly be alone in any ignorance there, it is a position that emphasizes confidentiality and trust. I know there are a lot of people on MIT’s campus who are scared, sad, and hurting for various reasons, and I wouldn’t want any of them to feel less able to speak with someone like me because I’ve chosen to speak out publicly.

At other times, in the midst of other campus controversies, I’ve personally opted to remain relatively silent, leaning into the part of my job that is, officially, one of quiet service to a university as a whole. I’ve been critical of a lot of big institutions over the years, including much of religion, but also a lot of organized atheism.

But as a chaplain at big educational institutions, I’ve rarely felt comfortable being too critical of those institutions, the universities, which at least in my judgement have more power and influence (not to mention more money, though they don’t really pay it to me) than even the oldest and grandest of churches and temples.

Maybe I was wrong in some of those cases; at other times, maybe I was able to do some good by keeping quiet. I reflect on this out loud not because anyone reading it should particularly care about my situation or my inner conflict. You most likely shouldn’t.

I share my own ambivalence, however, because I know countless executives, administrators, and other kinds of leaders have been through similar thought processes. It’s not my place to speak. If I do speak, maybe they’ll fire me, and then I can’t do anyone any good. Even if they don’t fire me, I’m supposed to be ‘objective;’ if I enter the fray, I’ll lose the trust and confidence of half the community.

But then I think about the students and faculty who need support the most. What they need are educators, peers, and administrators who are willing to join them in taking some risk to do what is right.

I was proud, last week, to share the first half of an exclusive interview with an MIT student named Arwa Mboya who brilliantly and bravely spoke out, helping bring about the resignation of one of the world’s most influential tech ethicists, former MIT Media Lab Director Joi Ito. As I said on Twitter, for my money Mboya has been the biggest of the many heroes in this Media Lab scandal.

For her efforts, Mboya was awarded a “Bold Prize,” and celebrating students for their bravery seems unequivocally good. Leaving them alone with their courage, however, by remaining silent in the name of “objectivity,” would be a moral failing.

I’m not sure it’s my place to use this space to call on MIT President Rafael Reif to resign for his own role in allowing Jeffrey Epstein’s donations to the Institute — a role Reif acknowledged this week at an MIT faculty meeting in which he said, “I understand that I have let you down and damaged your trust in me, and that our actions have injured both the Institute’s reputation and the fabric of our community.”

Maybe there are ways forward where MIT is able to heal with Reif still at the helm, though personally I have a hard time envisioning them. But at the very least, we must support students.

And by that I mean, people like me need to publicly and visibly support tech students who feel an ethical obligation to call for the resignation of their own university’s leader over his publicly acknowledged role in not only tolerating but greenwashing human trafficking and serial pedophilia. Just like the drafters and 60+ signers of this powerful letter from women on MIT’s faculty have done.

Will Reif resign? Will more information come out that makes his resignation seem even more inevitable? Or will the “independent review” he has put in place exonerate him in some way? Time will tell.

Meanwhile, as MIT sought to distance itself from Jeffrey Epstein and the broader social questions his case raises, this hard week did bring at least one piece of good news: the resignation of Richard Stallman. A MacArthur “Genius” Fellow and major figure in the history of computing, Stallman has long been a stain on the reputation of institutions with which he has affiliated, for troublingly sexist comments and stances.

The Overton Window on someone like Stallman has now shifted, however, once again thanks to outspoken students, most often young women of color. Like Selam Gano, a recent MIT graduate in robotics engineering, who “arguably set Stallman’s departure in motion,” by speaking out last week on Medium. Gano’s post, entitled “Remove Richard Stallman and Everyone Else Horrible in Tech,” followed an email Stallman had sent to a Listserv affiliated with MIT’s renowned CSAIL research laboratory.

“There is no single person that is so deserving of praise their comments deprecating others should be allowed to slide,” Gano wrote. “Particularly when those comments are excuses about rape, assault, and child sex trafficking.

Child.

Sex.

Trafficking.”

Gano’s drawn-out emphasis on the nature of the crime in question is entirely appropriate. After all, “human trafficking is the single largest illegal industry in the world,” as the framers of this additional recent petition for resignations of prominent MIT officials made clear. Human trafficking, they wrote, far eclipses even the international drug trade, and continues to inflict incomprehensible suffering on women, children, and families around the world.

In calling for leaders to leave, Gano, like Mboya before her, is not harming MIT or damaging its reputation. To the contrary. Both women have expressed, publicly and privately, a great and ongoing love for the school and what it represents.

In fact, it’s not coincidental that both of these whistleblowers have even described MIT as the best place in the world for them educationally, the site of some of their happiest memories and proudest moments. It’s that kind of true pride that leads morally upstanding people to say, “enough.” Because they want and need to continue to be proud. And because they understand that true pride is the opposite of a coverup. It is the opposite of clinging to power.

As Selam Gano wrote in her Medium post, “I know, now, that if prominent technology institutions won’t start firing their problematic men left right and center, we will do nothing. Ever.” Gano, Mboya, and other students and educators I admire are unwilling to allow an extraordinary institution like MIT to do nothing, or to do so little of consequence that it would essentially be nothing.

These people are, to the extent that a large research university is like a nation-state, true patriots. It might be scary to join them and walk alongside them publicly. Taking a stand might threaten our privilege and expose us to risk. That’s what being brave is all about.

Your move, President Reif and MIT.


“Okay, this girl was asked to change her religion at gunpoint and she didn’t do it,” MIT Media Lab student Arwa Mboya told me at the end of Part One of my interview with her, about a young woman she’d read about in a book called Beneath The Tamarind Tree. The book, by former CNN anchor Isha Sesay, is a skillful account of the 276 girls abducted from Chibok in Nigeria, which launched the “Bring Back Our Girls” campaign.

Mboya’s outspokenness in the face of the Jeffrey (no fucking relation, thank you!) Epstein scandal, inspired in part by her reading of Sesay, was among the bravest demonstrations I’ve seen by a student in 15 years as a university chaplain.

Previously, Mboya and I discussed her decision process for taking a leap which earned her a “Bold Prize” of, to this date, over $13,000 of crowd-funded money. But even more importantly, we discussed the life experiences which inspired Mboya’s courage in the first place — namely her love and radical hopefulness for the youth of her native Africa, and her passion to inspire those young people with the best tech has to offer.

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(Photo by Craig F. Walker/The Boston Globe via Getty Images)

In this second and final portion of my conversation with Mboya, we pick up where Part One left off, discussing human trafficking in Africa and in the United States, and how the two phenomena are more closely related than many might imagine. We then get into reading (or not) the comments on her now-famous op-ed calling on Joi Ito to resign; her reaction to receiving the crowd-funded “Bold Prize;” her feelings toward Joi Ito today; and how radical imagination can breakthrough systematic oppression, in Africa and beyond.

“She believed that much,” Arwa said to me about the young woman from Chibok, “that even at gunpoint, even with a risk of rape, with a risk of death, with the risk of all the other nasty things, she stood up for what she believed in.”

It’s not hard to see how that kind of perspective and wisdom might have enabled Mboya to do something exceptional.


Arwa Mboya: The activist who started the Bring Back Our Girls Campaign hounded the government down – and the Nigerian government is scary. I was like, “Okay, these people can do that. I have power to just speak out. Am I really what I think I am? Am I as strong, as brave as I [think I] am?”


Source: Tech Crunch

Tinder’s interactive series ‘Swipe Night’ could bring a needed boost to user engagement

On Sundays in October, Tinder is launching an “interactive adventure” in its dating app called “Swipe Night” that will present a narrative where users make a series of choices in order to proceed. This sort of choose-your-own-adventure format has been more recently popularized by Netflix and others as a new way to engage with digital media. In Tinder’s case, its larger goal may not a dramatic entry into scripted, streaming video, as has been reported, but rather a creative way to juice some lagging user engagement metrics.

For example, based on analysis of Android data in the U.S. from SimilarWeb, Tinder’s sessions per user, meaning the number of times the average user opens the app per day, have declined. From the period of January – August 2018 to the same period in 2019 (January – August 2019), sessions declined 10.8%, from 4.5 to 4.1.

The open rate, meaning the percentage of the Tinder install base that opens the app on a daily basis, also declined 5.9% during this time, going from 28% to 22.1%.

These sort of metrics are hidden behind what would otherwise appear to be steady growth. Tinder’s daily active users, for example, grew 3.1% year-over-year from 1.114 million to 1.149 million. And its install penetration on Android devices grew by 1%, the firm found. (See below).

Tinder Install Penetration

Drops in user engagement are worth tracking, given the potential revenue impact.

App store intelligence firm Sensor Tower found Tinder experienced its first-ever quarter-over-quarter decline in combined revenue from both the App Store and Google Play in Q2 2019.

Spending was down 8.8% from $260 million in Q1 to $237 million in Q2, the firm says. This was largely before Tinder shifted in-app spending out of Google Play, which was in late Q2 to early Q3. Tinder revenue was still solidly up 46% year-over-year, the company itself reported in Q2, due to things like pricing changes, product optimizations, better “Tinder Gold” merchandising and more.

There are many reasons as to why users could be less engaged with Tinder’s app. Maybe they’re just not having as much fun — something “Swipe Night” could help to address. Sensor Tower also noted that negative sentiment in Tinder’s user ratings on the U.S. App Store was at 79% last quarter, up from 68% in Q2 2018. That’s a number you don’t want to see climbing.

Of course, all these figures are estimates from third-parties, not directly reported — so take them with the proverbial grain of salt. But they help to paint a picture as to why Tinder may want to try some weird, experimental “mini-series”-styled event like this.

It wouldn’t be the first gimmick that Tinder used to boost engagement, either. It also recently launched engagement boosters like Spring Break mode and Festival mode, for example. But this would be the most expensive to produce and far more demanding, from a technical standpoint.

Swipe Night Intro

In “Swipe Night,” Tinder users will participate by launching the app on Sundays in October, anytime from 6 PM to midnight. The 5-minute story will follow a group of friends in an “apocalyptic adventure” where users will face both moral dilemmas and practical choices.

You’ll have 7 seconds to make a decision and proceed with the narrative, Tinder says. These decisions will then be added to your user profile, so people can see what decisions others made at those same points. You’ll make your choice using the swipe mechanism, hence the series’ name.

Every Sunday, a new part of the series will arrive. Tinder shot over 2 hours worth of video for the effort, but you’ll only see the portions relevant to your own choices.

The series stars Angela Wong Carbone (“Chinatown Horror Story”), Jordan Christian Hearn (“Inherent Vice”), and Shea Gabor, and was directed by Karena Evans, a music director used by Drake. Writers include Nicole Delaney (Netflix’s “Big Mouth”) and Brandon Zuck (HBO’s “Insecure”).

Swipe Night Choice

 

Tinder touts the event as a new way to match users and encourage conversations.

“More than half of Tinder members are Gen Z, and we want to meet the needs of our ever-evolving community. We know Gen Z speaks in content, so we intentionally built an experience that is native to how they interact,” said Ravi Mehta, Tinder’s Chief Product Officer. “Dating is all about connection and conversation, and Swipe Night felt like a way to take that to the next level. Our hope is that it will encourage new, organic conversations based on a shared content experience,” he said.

How someone chooses to play through a game doesn’t necessarily translate into some sort of criteria as to whether they’d be a good match, however. Which is why it’s concerning that Tinder plans to feed this data to its algorithm, according to Variety.

At best, a series like this could give you something to talk about — but it’s probably not as much fun as chatting about a shared interest in a popular TV show or movie.

Variety also said the company is considering whether to air the series on another streaming platform in the future.

Tinder declined to say if it plans to launch more of these experiences over time.

Despite the user engagement drop, which crazy stunts like “Swipe Night” could quickly — if temporarily — correct, the dating app doesn’t have much to worry about at this time. Tinder still accounts for the majority of spending (59%) in the top 10 dating apps globally as of last quarter, Sensor Tower noted. This has not changed significantly from Q2 2018 when Tinder accounted for 60% of spending in the top 10 dating apps, it said.

 


Source: Tech Crunch

Ten questions for 2020 presidential candidate Tom Steyer

In November 2020, America will go to the polls to vote in perhaps the most consequential election in a generation. The winner will lead the country amid great social, economic and ecological unrest. The 2020 election will be a referendum on both the current White House and the direction of the country at large.

Nearly 20 years into the young century, technology has become a pervasive element in all of our lives, and will continue to only grow more important. Whoever takes the oath of office in January 2021 will have to answer some difficult questions, ranging from an impending climate disaster to concerns about job loss at the hands of robotics and automation.

Many of these questions are overlooked in day to day coverage of candidates and during debates. To better address the issues, TechCrunch staff has compiled a 10-part questionnaire across a wide range of tech-centric topics. The questions have been sent to national candidates, regardless of party. We will be publishing the answers as we receive them. Candidates are not required to answer all 10 in order for us to publish, but we will be noting which answers have been left blank.

Previously: John Delaney

This time out, we’re speaking to Tom Steyer. The California-based billionaire hedge fund manager spent time at Morgan Stanley and Goldman Sachs before founding and heading up Farallon Capital Management. The investment firm managed $21 billion in investments with Steyer at the helm. In recent years, he has become an outspoken opponent of climate change, giving a speech at the 2012 Democratic National Convention. In 2017, he rose to national political prominence starring in a self-funded $10 million TV ad campaign calling for the Donald Trump’s impeachment.

1. Which initiatives will you prioritize to limit humankind’s impact on climate and avoid potential climate catastrophe?

Climate change is a crisis as big and urgent as any other that this country and our planet has faced. It demands our immediate attention on all levels of government and society. Our country needs a strong president who will make this a top priority. On my first day in office, I will declare the climate crisis a national emergency and use the emergency powers of the presidency to implement a plan to build a safer, more sustainable world, with or without Congress. This is truly a global crisis, and it is long past time for the United States to take the lead in solving it. I have been on the ground working with local groups to take on polluters and save the planet. One campaign I successfully led was the No on Prop 23: a coalition that defeated a ballot initiative sponsored by out of state oil interests that would have rolled back California’s nation-leading climate laws.

2. What is your plan to increase black and Latinx startup founders’ access to funding?

Finance and banking were built around a pretty basic idea — some people have money, while others need it to buy homes, build a business and improve their lives. Moving that money around efficiently was the key to success. The free flow of capital fuels the private sector. But not everyone has equal access to that capital, particularly for the innovative new products that could redefine society. In particular, we know that women, black and Latinx founders have been held back by racists and misogynists and do not have the same access to funding that their white, male counterparts enjoy.

So here’s what I have done: my wife and I created Beneficial State Bank as an alternative to the big financial institutions that have treated customers, communities and the planet so badly and that have left so many Americans out of shared prosperity. The profits from the bank don’t go to line our pockets, but are reinvested into the community and used to promote the public good. We now have 17 local branches throughout California, Oregon and Washington, which have been used to build affordable homes for low-income families; create clean, renewable energy; provide spaces for art; educate our youth; help nonprofit organizations and support minority businesses and businesses owned by workers. As president, I will apply this approach to government programs supporting entrepreneurship to ensure that the best ideas have the chance to succeed, no matter the sex, race or creed of the founder. I will also restore the integrity of the Consumer Financial Protection Bureau to ensure that financial institutions and others are putting the interests of consumers and borrowers first.

3. Why do you think low-income students are underrepresented in STEM fields and how do you think the government can help fix that problem?

Science, technology, engineering and math — and I would add the arts, STEAM — are the fields at the core of our innovation economy. Yet so far, low-income students have been left out. We have to tackle this from cradle to career, but there are a few simple things we can do to get started. Our campaign has proposed The 5 Rights, and one of these is the right to education. This includes a strong math foundation, a fundamental need for kids wanting to progress in STEM/STEAM fields. It also includes resourcing schools in all ZIP codes to offer hands-on learning, like place-based environmental education, and to teach new life skills like coding. For kids who are already starting out behind, we are going to have to devote the necessary resources to get them up to speed. Once they graduate, we also want the door to college to be open for any student who dreams of building a better future for themselves. That’s why I have been working to reduce student debt, ensure that kids are properly nourished at school and have other social services available to them, making it possible for students from all family backgrounds to afford quality higher education.

4. Do you plan on backing and rolling out paper-only ballots or paper-verified election machines? With many stakeholders in the private sector and the government, how do you aim to coordinate and achieve that?

One person, one vote is the principle underpinning our system of government. As we have seen, the very machines where we cast our votes are under attack, and states need help to secure the integrity of our elections. My administration will work closely with all 50 states to implement paper ballots and risk-based auditing to secure our election systems from fraud and malicious attack.

5. What, if any, federal regulation should be enacted for autonomous vehicles?

My hometown is where these cars are first hitting the roads and from that experience, we know that autonomous vehicles are well on their way, but aren’t quite ready for mainstream. As this new technology develops, we will need to update our federal regulations to ensure the safety of the American people.

6. How do you plan to achieve and maintain U.S. superiority in space, both in government programs and private industry?

Space has captured our imaginations as the next frontier, a place of striving, exploration and excellence, and is also the sphere where the infrastructure of our future is being built in the satellites that now connect people around the planet almost seamlessly. Space, like any domain in which we compete with adversaries and collaborate with allies, demands our attention and a commitment to research and development so we stay a step ahead. Our security interests are always a top priority — but the best way to ensure our safety is to make sure the American people are writing the rules for the defense industry, not lobbyists and corporate interests. I’d ensure that the U.S. Air Force is equipped to handle the risks while making sure every branch and entity involved in space has a centralized hub for communication and action. And we should continue to look at American-led international cooperation — including public and private sector collaboration — in space as a perfect example of soft power, which we should work to maintain and expand. Finally, we should ensure that America’s space program, NASA, is properly resourced.

7. Increased capital in startups founded by American entrepreneurs is a net positive, but should the U.S. allow its businesses to be part-owned by foreign governments, particularly the government of Saudi Arabia?

As president, I will commit to protecting and fostering American interests, both at home and abroad. And that is why I will support investments in our businesses from sources outside of the U.S. as long as the ownership does not risk our national security and those countries — and companies from those countries — obey and respect our laws from intellectual property to labor and environmental standards. We can only advance our interests if our values are respected.

8. Will U.S.-China technology decoupling harm or benefit U.S. innovation and why?

Like it or not, we are going to have to engage with China both economically and politically. It’s impossible for us to completely divorce these relationships. The real challenge facing our country is how we promote and protect American economic and national security interests. I believe we should stand up strongly to protect the interests of American intellectual property and punish those that don’t obey the laws. We are also going to have to protect American consumers and workers, ensure our cybersecurity and work with China to address pressing global issues like the climate crisis and regional security. The devil is in the details of how we compete with China, and when we engage with them as a strategic partner.

9. How large a threat does automation represent to American jobs? Do you have a plan to help train low-skilled workers and otherwise offset job loss?

From the impacts of Climate Change to the threat of automation, working people have gotten the short end of the stick for the past 40 years. As an investor, I know that if we invest in our people and the technologies needed to save our planet, we can give workers the skills they need for the new economy. These investments need to be done now, not when a million truck drivers lose their jobs. My Justice Centered Climate Plan includes investments in Civilian Climate Corps, which will create one million jobs over 10 years.

10. What steps will you take to restore net neutrality and assure internet users that their traffic and data are safe from manipulation by broadband providers?

The Trump administration’s decision to rescind federal net neutrality rules put the internet into the hands of powerful corporations without protecting consumers. Internet service providers should not be able to charge websites to reach their subscribers. I would reinstate the net neutrality rules written during the Obama administration. In California, I was proud to help pass SB 822, the net neutrality bill that was signed into law — it not only restored the Obama-era standards but went steps further to advance the ball in this policy area.


Source: Tech Crunch

Walmart is reportedly pulling electronic cigarettes from store shelves

Walmart is planning to pull electronic cigarettes from stores, according to a report by CNBC citing internal company documents.

The move comes as federal regulators are putting mounting pressure on the industry in the face of illnesses that have swept across the country and have been tied to vaping (although the culprit seems to be grey-market products used for THC consumption — rather than tobacco).

However, regulators and private sector health advocates are both alarmed by the dramatic increase in teen vaping rates, and have made moves to ban flavored e-cigarettes. Some countries where smoking is rampant are taking a preliminary step of banning electronic cigarettes altogether.

“Given the growing federal, state and local regulatory complexity and uncertainty regarding e-cigarettes, we plan to discontinue the sale of electronic nicotine delivery products at all Walmart and Sam’s Club U.S. locations,” the company said in a memo, according to CNBC reporting.

Earlier this month the philanthropic organization affiliated with billionaire former mayor Mike Bloomberg said that it would commit $160 million to get kids to stop vaping.  Just a day later, the White House said that it would take steps to ban the sale of flavored e-cigarette cartridges.

Meanwhile, the health officials are scrambling to find a cause for the vaping-related lung illness that has sickened at least 530 people in the U.S., according to new reports. So far, seven people have died from the illness, according to a statement yesterday from the Centers for Disease Control and Prevention, and no single substance or product has been connected to the cases, yet.

So far, the illness has cropped up in 38 states.

Walmart has already taken steps to limit teens’ access to tobacco products. The company raised the buying age for tobacco goods to 21 earlier this year. It was a response to what regulators have called an “epidemic” of teen vaping with at least 25 percent of students claiming to use e-cigarettes.

This all spells bad news for Juul, the leading e-cigarette supplier, which raised $12.8 billion from the tobacco giant, Altria Group in a December 2018 investment.

As the dominant e-cigarette brand, with something like a 70% market share,  the company has become the focus of regulatory scrutiny. Earlier this month,  the FDA threatened the company with regulatory action as a result of its marketing practices.

So far, Juul has said it will comply with all regulations imposed by the government. When the latest suggestion of a federal ban on flavored products went out, the company said, “We strongly agree with the need for aggressive category-wide action on flavored products. We will fully comply with the final FDA policy when effective.”

Walmart did not respond to a request for comment at the time of publication.


Source: Tech Crunch

Finding sustainable success with Blackstone CEO Stephen Schwarzman

“We were so low that people would take advantage of us. People we knew well would just lie to us. One of my favorites was a company we did an enormous amount of work for and really helped save. We then went to see the CEO and he said, ‘I really love you guys but we just don’t make these kinds of investments.’”

When you hear an investment banker recounting the tribulations of raising a private equity fund, your first response might be to get out the metaphorical small violin in your head. But when I met-up recently with Stephen Schwarzman, The Blackstone Group’s Chairman, CEO and co-founder, and heard several statements like the one above, I came to appreciate that he and his co-founder, gentlemen capitalist (and former Commerce Secretary) Pete Petersen, endured their fair share of indignities and near-fatal setbacks on the road to establishing Blackstone as an alternative investment management powerhouse.

At 38 years old at the time of Blackstone’s founding, Schwarzman was already successful and celebrated for having played an integral role in orchestrating a rescue of Lehman Brothers from a set of risky trades spurred on by its then-trader-CEO Lew Glucksman. But Schwarzman’s journey from banker to Wall Street entrepreneur to head of a $500-billion-plus asset manager is more interesting and nuanced than I had realized. On that basis alone, Schwarzman’s new book easily clears the hurdle rate for the entrepreneurially minded, and especially for those interested in the unique challenges of scaling a financial services business from scratch.

Feature image by John Moore/Getty Images


Source: Tech Crunch

Thinkful confirms data breach days after Chegg’s $80M acquisition

Thinkful, an online education site for developers, has confirmed a data breach, just days after it confirmed it would be acquired.

“We recently discovered that an unauthorized party may have gained access to certain Thinkful company credentials so, out of an abundance of caution, we are notifying all of our users,” said Erin Rosenblatt, the company’s vice-president of operations, in an email to users.

“As soon as we discovered this unauthorized access, we promptly changed the credentials, took additional steps to enhance the security measures we have in place, and initiated a full investigation,” the executive said.

At the time of writing, there has been no public acknowledgement of the breach beyond the email to users.

Thinkful, based in Brooklyn, New York, provides education and training for developers and programmers. The company claims the vast majority of its graduates get jobs in their field of study within a half-year of finishing their program. Earlier this month, education tech giant Chegg bought Thinkful for $80 million in cash.

But the company would not say when the breach happened — or if Chegg knew of the data breach prior to the acquisition announcement.

A spokesperson for Chegg did not respond to a request for comment. Thinkful spokesperson Catherine Zuppe did not respond to several emails of questions about the breach.

The email to users said the stolen credentials could not have granted the hacker access to certain information, such as government-issued IDs and Social Security numbers, or financial information. But although the company said it’s seen “no evidence” of any unauthorized access to user’s account data, it did not rule out any improper access to user data.

Thinkful said it is requiring all users to change their passwords.

We also asked Thinkful what security measures it has employed since the credentials breach, such as employing two-factor authentication, but did not hear back.

Just months earlier, Chegg confirmed a data breach, which forced the online technology giant to reset the passwords of its 40 million users.

At least Thinkful is now in good company.


Source: Tech Crunch

Founders, get to Disrupt SF for answers to the really hard questions

One lesson from TechCrunch’s Disrupt SF is that founders can’d get enough programming on the really hard questions.  How do I get into Y Combinator? How do I hire a technical lead? How do I raise my first round? That’s why we created a special stage at Disrupt SF for the sole purpose of bringing the top Silicon Valley experts on stage to go deep on those questions with TechCrunch editors and also take audience  questions. We call this the Extra Crunch stage, in a tip of the hat to TechCrunch’s Extra Crunch subscription service, which has the same, founder-centric mission.

Please check out the agenda for all three days of the Extra Crunch stage below. You can see the full agenda here (including new additions Will Smith and Steph Curry), which includes the main and Q&A stages as well. Get your Disrupt SF pass here – but remember that only Innovator, Founder and Investor passes get access to the programming at Disrupt.

AGENDA for the Extra Crunch Stage

WEDNESDAY, OCTOBER 2

10:05 am – 10:45 am How to Build a Billion-Dollar SaaS Company with Neeraj Agrawal (Battery Ventures), Jyoti Bansal (AppDynamics) and Whitney Bouck (HelloSign) 

Growing your SaaS company to a billion dollars in revenue is no easy task. It takes patience, perseverance and a strong team. Often it doesn’t happen until well after a company has gone public. We will talk to three people who have experience working with SaaS startups and understand the unique challenges they face getting to a billion dollars and beyond.

11:05 am – 11:45 am Could the U.S. Government Be Your Next Investor? with Steve Isakowitz (The Aerospace Corporation) and Raj Shah (DIU) 

No founder likes dilution, which is why the U.S. government is becoming an increasingly popular source for early-stage, ambitious venture capital. Hear from leaders who have navigated the process to discover your next source of non-dilutive capital.

11:45 am – 12:15 pm How to Evaluate Talent and Make Decisions with Ray Dalio (Bridgewater)

Ray Dalio knows a thing or two about building successful startups. As founder of the firm Bridgewater, he helped build it into one of the most successful investment companies ever, managing a whopping $150 billion in assets. He recently wrote a book called Principles, and he’s here on the TechCrunch Disrupt Extra Crunch stage to discuss the book and companion mobile app on how building a strong culture can lead to a flourishing startup.

1:35 pm – 2:15 pm How to Take a Digital Brand Offline with Rich Fulop (Brooklinen), James Reinhart (thredUP) and Susan Tynan (Framebridge)

E-commerce has fundamentally changed the way we browse and buy physical goods. But even though online sales have taken a huge bite out of brick-and-mortar, it doesn’t mean that digital brands aren’t interested in the prospect of offline channels. Hear from three founders who have taken their own unique approach to launching a store.

2:15 pm – 2:55 pm How to Hire at Breakneck Speed with Scott Cutler (StockX), Harj Taggar (Triplebyte) and Liz Wessel (WayUp)

Nothing is better than striking product-market fit and suddenly finding a path to rapid, venture-scale growth. But as that growth accelerates, how do you create the conditions to rapidly find, attract and hire the talent you need to reach unicorn status? Hear from some of the leading recruiters and services on how they have successfully scaled recruiting and avoided key pitfalls.

3:15 pm – 3:45 pm How to Get into Y Combinator with Ali Rowghani (Y Combinator) and Michael Seibel (Y Combinator)

The seed-stage venture firm has come to form its own startup economy over the years, with its network of companies and founders interconnecting across the tech industry and beyond. Find out how Y Combinator works today, and how you can become a part of it, in this discussion with CEO of YC Continuity Ali Rowghani and CEO and partner Michael Seibel.

3:45 pm – 4:25 pm How to Build a Subscription Product with Alex Friedman (LOLA), Eurie Kim (Forerunner Ventures) and Sandra Oh Lin (KiwiCo)

The direct-to-consumer landscape has exploded in the past year, but the keys to making a subscription product indispensable are still up in the air, as few have discovered a path to success. This chat with LOLA’s Alex Friedman, Forerunner partner Eurie Kim and KiwiCo’s Sandra Oh Lin will address the constant struggles of getting a subscription service off the ground and retaining customers.

4:25 pm – 4:45 pm How to Locate the Value with Dennis Crowley (Foursquare)

Foursquare has pulled off a monumental pivot over the last decade, going from a silly location-based social network to an integral enterprise business with the chops to take on Google and Facebook. Hear founder Dennis Crowley discuss the journey the company has taken over the past ten years and what the next ten years looks like for New York’s tech sweetheart.

THURSDAY, OCTOBER 3

10:00 am – 10:40 am How to Raise My First Dollars with Russ Heddleston (DocSend), Charles Hudson (Precursor) and Annie Kadavy (Redpoint Ventures)

Venture funding may have boomed over the last decade, but the decisions around your initial funding are as tricky as ever. Hear how to take advantage of the current landscape from top Silicon Valley early-stage thinkers, including pre-seed investor Charles Hudson of Precursor Ventures, early-stage investor Annie Kadavy of Redpoint Ventures and Russ Heddleston, CEO of DocSend.

11:00 am – 11:40 am How to Build a Secure Startup without Slowing Growth with Heather Adkins (Google), Jennifer Sunshine Steffens (IOActive) and Dug Song (Duo)

Leading security experts from Google, Duo and IOActive discuss some of the challenges startups and enterprises face in security. How do companies navigate the litany of issues and threats without hampering growth?

12:40 pm – 1:20 pm How to Build a Sex Tech Startup with Cyan Banister (Founders Fund), Cindy Gallop (MakeLoveNotPorn) and Lora Haddock (Lora DiCarlo)

As the old adage goes, sex sells. A panel of investors and founders will discuss the opportunities — and challenges — of building a successful sex tech startup, and how to capitalize on a market that’s projected to be worth more than $123 billion by 2026.

1:40 pm – 2:20 pm How to Build a Space Economy with Tess Hatch (Bessemer Venture Partners), Sara Spangelo (Swarm Technologies) and Adrian Steckel (OneWeb)

From thousand-satellite constellations to space tourism, orbit is a fresh and inspiring source of new startup ideas and evolutions of established ones. Swarm’s Sara Spangelo is taking on low-cost global connectivity and Bessemer Ventures’ Tess Hatch provides the perspective of investors looking to make bets like these happen.

2:20 pm – 3:00 pm How Do I Exit and What Happens Next with Justin Kan (Atrium), Jess Lee (Sequoia Capital) and Mike Marquez (Code Advisors)

Most good startup outcomes are acquisitions, and most good acquisitions happen because a buyer needs your company for a specific reason. Hear from Justin Kan (sold Twitch), Jess Lee (sold Polyvore) and top Silicon Valley banker Mike Marquez of Code Advisors about how to make them happen the right way.

3:20 pm – 4:00 pm How to be a Positive Force in the Gig Economy with Sarah Cannon (Index Ventures), Derecka Mehrens (Working Partnerships USA) and Amanda de Cadanet (GirlGaze Network)

As gig workers continue to struggle with financial instability, inadequate labor protections and few alternatives, hear from leaders and companies that are now trying to figure out how to create an equitable, just and sustainable economic system for gig workers.

4:00 pm – 4:40 pm How Do You Decide Between Bootstrapping and Raising Venture Capital? with Ben Chestnut (Mailchimp) and Kathryn Petralia (Kabbage)

In this panel, we host two founders who have each grown their respective startups to stratospheric levels, but with very different funding approaches. Kathryn Petralia, co-founder and president of SMB lender Kabbage, has raised prodigious venture capital, including $500 million in equity from the likes of the SoftBank Vision Fund and an additional $2 billion in debt financing to underwrite Kabbage’s loan products. Meanwhile, Ben Chestnut, co-founder and CEO of MailChimp, has built a massive and well-known marketing automation business entirely by bootstrapping. Why did they choose their different financing strategies? Come hear from two leading founders about how they thought through their fundraises and the lessons we can all learn from their experiences.

FRIDAY, OCTOBER 4

10:05 am – 10:55 am How to Iterate Your Product with Manik Gupta (Uber), Diya Jolly (Okta), Ravi Mehta (Tinder) and Robby Stein (Instagram)

Launching an MVP and finding early product-market fit are just the first steps in the journey to build a great startup. Learn from leading product thinkers from Instagram, Okta, Tinder and Uber on how they expand, grow and refine their products to increase their value without alienating existing users.

10:55 am – 11:15 am How to Take a Hardware Company Public with James Park (Fitbit) and Eric Friedman (Fitbit)

Ten years after launching their product at TechCrunch 50, Fitbit co-founders James Park and Eric Friedman join us to discuss the company’s ups and downs.

11:35 am – 12:15 pm How to Build a Brand that Gets Attention with Brooke Hammerling (Brew Media Relations), Chelsea Cain Maclin (Bumble) and Ben Pham (Character)

Brooke Hammerling is the founder of one of the most iconic tech startup PR firms of the past decade, Brew Media Relations, which was sold for $15 million in 2016. Chelsea  Cain Maclin is VP of Marketing at Bumble, one of the most recognizable brands in the app world today. And Ben Pham is the founder of Character, a brand design firm that’s worked with the likes of Oculus, Nike, DoorDash and Peet’s Coffee. The three will discuss how to think about brand design and what gets and keeps the attention of users.

1:25 pm – 1:50 pm How to be a Serial Founder with David Cancel (Drift) 

So your first company worked out well. Let’s say you have a burning desire to do another one — what’s the right way to do it the next time around? Hear from frequent founder David Cancel (formerly of Performable/HubSpot, Lookery, Ghostery, Compete) on what he’s done.

1:50 pm – 2:30 pm How to Build a Better Banking Startup with Chris Britt (Chime), Adam Dell (Clarity Money; Goldman Sachs) and Angela Strange (Andreessen Horowitz)

Chris Britt, the chief executive of Chime, Goldman Sachs’ Adam Dell and Andreessen Horowitz’s Angela Strange know that money is what everyone wants. The problem is how to make it more accessible to everyone in the world. Hear them discuss how to build a better bank for everyone.

2:50 pm – 3:10 pm What’s Growing on the Consumer Internet with Andrew Chen (Andreessen Horowitz)

You may know Andrew Chen as a widely read startup growth strategist, but today he’s investing in his expertise. As a partner at top venture firm Andreessen Horowitz, he is focused on consumer internet companies, seeking out the new growth in this maturing tech sector. Come hear the latest on what he’s seeing in the industry both from the growth and investing perspective.

3:10 pm – 4:10 pm Disrupt Hackathon Finals

The top contenders of the Disrupt Hackathon demo their projects that they spent the last two days creating to compete for sponsor prizes and the $10K TechCrunch best of show award.


Source: Tech Crunch