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Category: Tech news
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Why Do Many Self-Driving Cars Look Like Toasters on Wheels?
Without any need for steering wheels or pedals, the cubes give passengers room to maneuver inside. The latest entrant, from Zoox, can hold 4.
The Zodiac Killer’s Cipher Is Finally Cracked After 51 Years
Amateur and professional cryptographers, including those at the FBI, had been trying to decode the infamous serial killer’s message to the media for decades.
The Steampunk Rover Concept That Could Help Explore Venus
50 years after the first spacecraft touched down on our super hot neighbor (and promptly died), NASA has a plan for a tougher mechanical lander.
The 7th Jackbox Party Pack Is the First Perfect Pack
It took a couple swings (most of them good, some of them okay at best) but the most recent release is a crowd-pleaser.
The ‘Healthy Building’ Surge Will Outlast the Pandemic
Because of Covid-19, developers are realizing that incorporating health concerns in a building’s design isn’t just a luxury—it’s a necessity.
The Mustang Mach-E Delivers a Jolt—If You Can Find a Charge
The electric version of Ford’s legendary sports car is a lot of fun to drive. But road trips can be derailed by an underpowered charging network.
No One Knows How Deep Russia’s Hacking Rampage Goes
A supply chain attack against IT company SolarWinds has exposed as many as 18,000 companies to Cozy Bear’s attacks.
A Letter to My Pandemic Baby
On this week’s Get WIRED podcast, an editor captures the bizarre world of 2020 for his unborn daughter.
How to Use ProRAW on Your iPhone 12 Pro
Apple’s update that enables RAW camera capture—and makes your photos more editable—is now available.
The Streaming Wars Could Finally End in 2021
With Disney’s announcement of 22 new series, and Warner Bros. teaming up with HBO Max, the battle for every last subscriber will come to a head next year.
Apple’s App ‘Privacy Labels’ Are Here—and They’re a Big Step Forward
It remains unclear how effective the warnings will be, but the attempt alone is a promising development.
Gillmor Gang: Strange Days Indeed
The place we’re in, the valley of the dolls between the vote and the Inauguration, is overshadowed by the battle to save our lives. The vaccines look promising, and so does the persistence of the Trumpster to play his games. Somehow we have to live with that, on both sides. In the business we’re in, the technology industry, broadband has penetrated to the point we can survive with a reasonable degree of fidelity to the world COVID erased.
This week’s move by WarnerMedia to release all 2021 pictures on HBO Max and in theaters is both a capitulation to reality and a political gambit to negotiate with theater owners. Disney, with their theme parks and investments in streaming crescendoing in layoffs and rebuilding, announced a mix of 80% streaming with only 20% theatrical. Trump’s TikTok deadline has already passed, and the administration is pretending to not pay attention in order to keep negotiations for a buyout alive. The incoming government talks of a working bromance between Biden and McConnell. It’s the opposite of reality TV, or TV reality.
Newsletters straddle mainstream and social media, rolling up links that blur the credibility of publications with the Wild West of uncredentialed freelancers. Some of these voices are playing the newsletter sweepstakes, choosing to move from a salaried position to their own subscription model. For those publications funded in part by a paywall, the transition to a newsletter comes with opportunity and risk. Selling a subscription for a single voice competes with the bundled voices of a paywall publication eventually diluting potential readers’ available funds. We’re seeing this same subscription saturation dynamic in the rise of streaming networks.
Another trend, notification-based news, is making inroads with live streaming over social networks. The pandemic has forced many students into working from home over Zoom for interactive sessions mixed with traditional lecture-type webinars. Events normally covered by trade publications have yielded at least for now to influencer and analyst driven watch parties. Podcasts forego subscription and advertiser revenue for lead generation and industry traction. The 24/7 nature of work from anywhere fights for eyelid time with binge viewing, listening, and reading.
Beyond the virus’s impact on audiences, the productions themselves have new challenges. The FX series Fargo ceased production in March, as did ABC’s Grey’s Anatomy. When you see the completed shows, it’s fascinating to try and guess which scenes were shot under the much tighter strictures of the fall. Grey’s Anatomy used the pandemic as a plot point, but it took a few shows for the actors to settle into a more relaxed rhythm. Pre-pandemic footage from the abbreviated series’ previous season lived uncomfortably alongside the new material to cover the transitional story line.
Citizen Kane, considered broadly as the best film Hollywood ever made, spawned a Netflix production about the author of the screenplay, one Herman J. Mankiewicz. Presented in black and white with Kane-like musical scoring and the original film’s innovations in deep focus photography and low angle shots that include the ceilings of sets, the story uses flashbacks and time-jumping to great effect. It’s streaming meets MGM’s catch phrase from the time: All the stars in the heavens. Director David Fincher tells the New York Times how he overshoots by 20% the number of pixels so he can post process and polish the rough edges and camera jiggles into a precise reflection of the intricate vision of his cinema universe.
40 years ago this week John Lennon was murdered by a troubled fan. I was watching Monday Night football when Howard Cosell broke in with the news. What was left of my childhood vanished in that moment. I was newly divorced, struggling to keep my momentum going, no idea of what our world would become, and stupid with sadness over someone I’d never met. The Beatles was this magic machine, a coalition of the fleeting imperfection of the group and the unifying perfection of what they had accomplished.
The days tick by. The vaccine trucks roll. The Supreme Court denies another desperate move to overturn the will of the people. Nobody told me there’d be days like these. Strange days indeed.
__________________
The Gillmor Gang — Frank Radice, Michael Markman, Keith Teare, Denis Pombriant, Brent Leary, and Steve Gillmor . Recorded live Friday, December 4, 2020.
Produced and directed by Tina Chase Gillmor @tinagillmor
@fradice, @mickeleh, @denispombriant, @kteare, @brentleary, @stevegillmor, @gillmorgang
For more, subscribe to the Gillmor Gang Newsletter and join the backchannel here on Telegram.
The Gillmor Gang on Facebook … and here’s our sister show G3 on Facebook.
Human Capital: Dr. Timnit Gebru says Google’s memo was ‘dehumanizing’
Welcome back to Human Capital, where I break down the latest in diversity, equity and inclusion, and labor in tech. This week, Twitter dropped its latest diversity report and Tesla released its first one ever. Meanwhile, Google CEO Sundar Pichai apologized for the way things went down with Dr. Timnit Gebru, a prominent researcher in artificial intelligence ethics.
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Google’s Sundar Pichai will investigate events that led up to Dr. Timnit Gebru’s exit
In light of artificial intelligence researcher Dr. Timnit Gebru’s exit from Google last week, Google CEO Sundar Pichai sent a memo to staffers, obtained by Axios, saying the company would investigate “the circumstances that led up to Dr. Gebru’s departure, examining where we could have improved and led a more respectful process.”
In Pichai’s memo, he said the company needs to “accept responsibility for the fact that a prominent Black, female leader with immense talent left Google unhappily.” He also noted how it’s had a “ripple effect” through underrepresented communities at Google.
In response, on Twitter, Gebru said she didn’t see any plans for accountability. Instead, she said she saw “further gaslighting.” In an interview with Venture Beat, Gebru said Pichai’s memo is “dehumanizing” and makes her “sound like an angry Black woman.”
They paint me as this angry Black woman because they put you in this terrible workplace, and if you speak up about it, then you become a problem, and then they start talking about de-escalation strategies.
You write emails, they get ignored. You write documents, and they get ignored. Then you discuss how it’s being done and then they talk about you as if you’re like some angry Black woman who needs to be contained.
More Black women and Latinas are founding startups, according to Project Diane
Since 2018, the number of Black women and Latina founders doubled from 334 startups to more than 650, according to Project Diane. These women have also raised more money than they did in 2018, but they’re still raising less than the national average.
This year, Black women and Latina founders raised $3.1 billion compared to just $1 billion in 2018. Still, the median seed round for Black women is $125,000 and $200,000 for Latina founders, while the national median seed is $2.5 million.
Tesla finally released a diversity report
Tesla released its first-ever diversity report, showing the company is 34% white, 22% Hispanic, 10% Black, 21% Asian and 7% “additional groups” in the United States. Those breakdowns are not bad, but it’s worth noting Tesla employs many of those folks in its factories, which are notoriously problematic and have been the subject of allegations around racism and discrimination.
At the leadership level, Tesla is 59% white, 25% Asian, 4% Black and 4% Hispanic. Just 1% of those in leadership roles are from “additional groups.”
Meanwhile, Tesla’s gender diversity is objectively bad. Men account for 79% of Tesla’s overall workplace and 83% of its leaders in the United States.
Twitter shows slight improvement in latest diversity report
Twitter released its latest quarterly diversity report showing an increase in the representation of women, Black, Latinx and multiracial employees across the whole company. Additionally, representation of women and Black people increased at the leadership level. Despite those gains, Twitter is still 56.7% male and 41% white.
Uber wants drivers and delivery workers to get priority access to COVID-19 vaccine
Uber CEO Dara Khosrowshahi sent a letter to all 50 governors asking them to prioritize giving drivers and delivery workers the vaccine as essential workers. In the letter, Khosrowshahi argues that the work of drivers and delivery people has become essential. That’s why Uber wants them to get the vaccine “quickly, easily and for free,” he wrote in the letter. Additionally, Uber has offered to help share information about the vaccine and encouraging those who are eligible to get vaccinated.
Apple was reportedly complicit in violating Chinese labor laws
Three former Apple Supplier Responsibility employees recently said the company did nothing when its suppliers violated the temporary worker labor law in China. That law required that no more than 10% of a factory’s workforce be temporary workers. According to The Information, Apple didn’t take action because it was worried about an increase in costs, a drain on resources and delays in product launches.
How to find your next VC
Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s broadly based on the daily column that appears on Extra Crunch, but free, and made for your weekend reading. Want it in your inbox every Saturday? Subscribe here.
Ready? Let’s talk money, startups and spicy IPO rumors.
Welcome to the depths of December, a time in which the news cycle should be slowing down. Instead it’s accelerating, giving me the firm worry that our holiday cycle is going to be mostly work this year.
Regardless, we have no time for my usual bullshitting, so let’s get right to work. First up: How to find your next venture capitalist.
There’s a VC firm called New Stack that focuses on leading first institutional rounds into startups that are not based in San Francisco and New York. As you can imagine, part of its job is helping its portfolio companies — here, in case you wanted to peek — find their next investor.
So, New Stack’s Nate Pierotti tells The Exchange, his team crafts next-round plans with their portfolio companies so that the startups can avoid wasting time when they go out to raise a new round. Per Pierotti, these plans are popular with both founders and VCs alike.
A bit ago New Stack asked around 400 founders what their venture pain points are, an exercise that I presume many VCs execute to better understand their market. Something that came out of the study was that many founders wanted help finding their next investor.
In light of the results, New Stack decided to help, putting together a public version of their next-round tool. It’s called Venture Rank, and you can check it out here. If you tell it about your startup, it will suggest some funds to talk to, with over 1,700 in its database.
Why bring all this up? Aside from always looking for an excuse to cover Midwest startup activity, we spend a lot of time in this newsletter talking about companies busy leaving their venture capital days behind them. Here was a chance to talk about a resource that founders still in the venture mix can actually use.
The Exchange: Not just public SaaS multiples!
Market Notes, Market News
I presume that by now you are caught up on all things DoorDash IPO (pricing, trading, the future), C3.ai (pricing, trading, the future), and Airbnb (pricing, trading). What follows presumes you are read-up.
To kick off Market Notes this weeks, some Market News: Braze has grown 60% during the first three quarters of its fiscal year.
Sadly, while the New York-based customer engagement software startup joined the $100 million ARR club just under a year ago, we can’t just say that it’s at $160 million ARR today. Why not? The company has moved to counting GAAP revenue instead of ARR, so its growth number doesn’t correspond to the old metric.
And the time period for the 60% figure ran from February 2020 through October (it’s common for SaaS companies to start their fiscal year after January so that their fourth quarters don’t wrap up right after Christmas). But I would not be surprised if Braze was at an ARR mark of $160 million or more.
According to its CEO, Bill Magnuson, the company has not raised funds since its October 2018-era Series E worth $80 million. The startup has been growing quickly, without the need to take on more capital to fund its growth.
What impact has COVID-19 had on the company? Magnuson said that Braze was probably ahead of its pre-COVID plan, but that it has re-forecasted on a rolling basis this year as the economy has changed. On the customer front, the CEO said that growth may have been similar without COVID, but different. He used an analogy of a balloon, COVID squeezed some parts of the balloon — market sectors in our analogy — but also enlarged some other parts of the balloon at the same time. Same balloon volume post-COVID, but a different market shape.
Is the move to GAAP indicative of a move towards an IPO? Not really, Magnuson said. Braze likes to compare its results to those of other companies to see how it can improve and where, he added, so having standard metrics helps.
But let’s be clear: Braze is big enough to go public, doesn’t burn that much money, and is watching companies go out at nigh-comical multiples. Surely the temptation is there.
And speaking of IPOs, let’s talk about a few. I got on the horn with a different players from the Airbnb and DoorDash debuts this week, which I have condensed to their respective key points for today in the honor of space:
- Why DoorDash’s CFO is bullish on post-pandemic consumer demand: Talking to Prabir Adarkar was good fun as he is both voluble and limpid. That is an excellent combination in a person from which you hope to learn something. I wanted to know what DoorDash was thinking about post-pandemic demand for food delivery. I have a slightly pessimistic take. Adarkar, as you expected, is more bullish. After discussing how the company’s huge IPO will provide the company with a cushion as it looks to more deeply penetrate the food market, and expand into new verticals, we got around to the point. The CFO argued that once users have downloaded the DoorDash app and used it a few times, it’s very sticky. He expects that stickiness to persist even after COVID-19 is behind us. And, he added, more restaurants have joined in the last few months, so the service has itself improved. That could help keep users engaged when they are allowed outside.
- Why Airbnb’s chief strategy officer (CSO) is bullish on post-pandemic consumer demand: Nathan Blecharczyk, one of Airbnb’s founders and CSO, talked The Exchange through his company’s post-pandemic demand thesis. First, travel will return as soon as people are allowed to go outside. That’s good for Airbnb. And, he said, Zoom is not going away — people may take a long weekend in an Airbnb and work the Friday and relax during the weekend, for example. With international travel coming back, and a cultural shift toward remote work, Airbnb could wind up with a larger marker in 2021 than it had in 2019. We’ll see.
- Sequoia partner Alfred Lin on this week’s IPO pricing and results: Finally from our call log, an investor. Sequoia was in both DoorDash and Airbnb, with Lin on the board of each. We chatted a bit about the IPOs, a convo from which something stood out. Lin explained, in response to my questions about the extreme prices that some IPOs were commanding after their debuts, that Airbnb had been expensive during its private life, as well. You have to pay up sometimes for the standouts, the argument seemed to go. From a venture perspective, I vibe with the point. From a public investor perspective, I understand it less. But that’s why the stock market is fun.
Before we catch up on some small things, after I covered OKR-focused Koan raising another $1 million, OKR-focused Ally.io — which I have written about before — reached out with some data on its growth. A sucker for such information, here’s the gist: Ally grew its revenues 3.3x in 2020, adding 500 customers in the process and seeing 145 expansions from existing customers. Ally cited a need for more planning tools for a hybrid (office and remote) working world as a driver of demand. Koan declared a similar situation as its impetus for releasing a free tier of its software.
The OKR market was hot earlier this year. I suppose it still is.
Various and Sundry
Alright. In no particular order, here are some very interesting things from this week that I could not write whole posts about:
- Denver-based Range Ventures has put together a $23 million fund. Why do we care? It’s focused on Denver. I did not know that the Denver scene was mature enough to warrant its own firm. I suppose I am behind on this one.
- Brazilian software company Intelipost raised $32 million this week, led by Riverwood Capital. E-commerce and logistics are hot in 2020, and Intelipost does both. This is one to keep an eye on.
- Chicago’s CarDr raised $5 million in what it calls “launch and seed funding” from Red Fort Capital. The startup uses AI to help its team execute car diagnostics — hence, calling itself Car Doctor. According to the company, it sells to consumers, dealers, and banks alike. And the startup has earmarked about 75% of its new capital for engineering expenses, which implies that it has lots more to build in the future (a good thing, mind.) On the economics front, the company told The Exchange that it has good margins, but that they work out to be slightly lower than some SaaS companies due to the cost of AI computing time. We’ve written about that!
- API-security focused Salt Security raised $30 million this week. I am a dork for all things API, so to see the API-security space raise this much in a single round caught my attention. Sequoia led the Series B. Salt raised a $20 million Series A in June. (The trend of two rounds in 2020 continues!)
- A startup named Beyond Identity raised $75 million this week. I am at a loss regarding what “passwordless” identity means, but I hope it works, as I constantly need to update my Okta password, which makes me sad.
- Ada Ventures closed a $50 million fund. The European group intends “to invest in diverse founders tacking societal problems.” Hard to not be into that mission.
Now it’s time to put on some heavy metal, play Civ 6, and not think about news for a bit.
Hugs —