Category: Tech news

Getting rid of asbestos is good for public health, but it’s risky for abatement workers, whose occupational risks make them vulnerable to Covid-19 complications.

Alameda-based rocket launch startup Astra finally got the chance to launch its first orbital test mission from its Alaska-based facility on Saturday, after the attempt had been delayed multiple times due to weather and other issues. The 8:19 PM PT lift-off of Astra’s ‘Rocket 3.1’ test vehicle went well – but the flight ended relatively shortly after that, during the first-stage engine burn and long before reaching orbit.

Astra wasn’t expecting to actually reach orbit on this particular flight – it has always said that its goal is to reach orbit within three test flights of Rocket, and prior to this first mission, said that the main goal was to have a good first-stage burn on this one specifically. This wasn’t a nominal first-stage burn, of course, since that’s when the failure occurred, but the company still noted in a blog post that “the rocket performed very well” according to their first reviews of the data.

The mission ended early because of what appears to be a bit of unwanted back-and-forth wobbling in the rocket as it ascended, Astra said, which caused an engine shutdown by the vehicle’s automated safety system. That’s actually also good news, since it means the steps Astra has taken to ensure safe failures are also working as designed. You can see in the video above that the light of the rocket’s engines simply go out during flight, and then some time later there’s a fireball from its impact on the ground.

It’s worth noting that most first flights of entirely new rockets don’t go entirely as planned – including those by SpaceX, whose founder and CEO Elon Musk expressed his encouragement to the Astra team on Twitter. Likewise, Rocket Lab’s Peter Beck also chimed in with support. Not to mention that Astra has been operating under extreme conditions, with just a six-person team on the ground in Alaska to deploy the launch system, which was set up in under a week, due to the COVID-19 crisis.

Astra will definitely be able to get a lot of valuable data out of this launch that it can use to put towards improving the chances of its next try going well. The company notes that it expects to review said data “over the next several weeks” as it proceeds towards the second flight in this series of three attempts. Rocket 3.2, the test article for that mission, is already completed and awaiting that try.

Apple Watches, iPads, some secret surprises, and a reel of slickly produced videos to drive it all home. Just like old times … sort of.

For two decades, Onel de Guzman has been suspected of unleashing the groundbreaking virus. But he’s never confessed to anything—until now.

With sales on monitors, headphones, and surround-sound speakers, we’ve rounded up gadgets that can help you hibernate inside until spring.

David Chao, the cofounder of the cross-border venture firm DCM, speaks English, Japanese, and Mandarin. But he also knows how to talk to founders.

It’s worth a lot. Consider that DCM could see more than $1 billion from the $26.4 million it invested across 14 years in the cloud-based business-to-business payments company Bill.com, starting with its A round. Indeed, by the time Bill.com went public last December, when its shares priced at $22 apiece, DCM’s stake — which was 16% sailing into the IPO — was worth a not-so-small fortune.

Since then, Wall Street’s lust for both digital payments and subscription-based revenue models has driven Bill.com’s shares to roughly $90 each. Little wonder that in recent weeks, DCM has sold roughly 70 percent of a stake that’s currently valued at roughly $900 million and was worth more than $1 billion a few weeks ago. (It still owns 30 percent of its position and says the shares are free and clear to trade.)

We talked with Chao earlier today about Bill.com, on whose board he sits and whose founder, René Lacerte, is someone Chao backed previously. We also talked about another very lucrative stake DCM holds right now, about DCM’s newest fund, and about how Chao navigates between the U.S. and China as relations between the two countries worsen. Our conversation has been edited lightly for length and clarity.

TC: I’m seeing you owned about 33% of Bill.com after the first round. How did that initial check come to pass? Had you invested before in Lacerte?

DC: That’s right. René started [an online payroll] company called PayCycle and we’d backed him and it sold to Intuit [in 2009] and René made good money and we made money. And when he wanted to start this next thing, he said, ‘Look, I want to do something that’s a bigger outcome. I don’t want to sell the company along the way. I just want this time to do a big public company.’

TC: Why did he sell PayCycle if that was his ambition?

DC: It was largely because when you’re a first-time CEO and entrepreneur and a large company offers you the chance to make millions and millions of dollars, you’re a bit more tempted to sell the company. And it was a good price. For where the company was, it was a decent price.

Bill.com was a little bit different. We had good offers before going public. We even had an offer right before we went public.  But René said, ‘No, this time, I want to go all the way.’ And he fulfilled that promise he’d made to himself. It’s a 14-year success story.

TC: You’ve sold most of your stake in recent weeks; how does that outcome compare with other recent exits for DCM? 

DC: We actually have another recent one that’s phenomenal. We invested in a company called Kuaishou in China. It’s the largest competitor to Bytedance’s TikTok in China. We’ve invested $49.3 million altogether and now that stake is worth $3.8 billion. The company is still private held, but we actually cashed out around 15% of our holdings. and with just that sale alone we’ve already [seen 10 times] that $30 million.

TC: How do you think about selling off your holdings, particularly once a company has gone public?

DC: It’s really case by case. In general, once a company goes public, we probably spend somewhere between 18 months to three years [unwinding our position]. We had two big IPOs in Japan last year. One company [has] a $1.6 billion market cap; the other is a $2.6 billion company. There are some [cases] that are 12 months and there are some [where we own some shares] for four or five years.

TC: What types of businesses are these newly public companies in Japan?

DC: They’re both B2B. One is pretty much the Bill.com of Japan. The other makes contact management software

TC: Isn’t DCM also an investor in Blued, the LGBTQ dating app that went public in the U.S. in July?

DC: Yes, our stake wasn’t  very big, but we were probably the first major VC to jump in because it was controversial.

TC: I also saw that you closed a new $880 million early stage fund this summer.

DC: Yes, that’s right. It was largely driven by the fact that many of our funds have done well. We’re now on fund nine, but our fund seven is on paper today 9x, and even the fund that Bill.com is in, fund four, is now more than 3x. So is fund five. So we’re in a good spot.

TC: As a cross-border fund, what does the growing tension between the U.S and China mean for your team and how it operates?

DC: It’s not a huge impact. If we were currently investing in semiconductor companies, for example, I think it would be a pretty rough period, because [the U.S.] restricts all the money coming from any foreign sources. At least, you’d be under strong scrutiny. And if we invested in a semiconductor company in China, you might not be able to go public in the U.S.

But the kinds of deals that we do, which are largely B2B and B2C — more on the software and services side — they aren’t as impacted. I’d say 90% of our deals in China focus on the domestic market. And so it doesn’t really impact us as much.

I think some of the Western institutions putting money into the Chinese market — that might be decreasing, or at least they’re a little bit more on the sidelines, trying to figure out whether they should be continuing to invest in China. And maybe for Chinese companies, less companies will go public in the U.S., etcetera. But some of these companies can go public in Hong Kong.

TC: How you feel about the U.S. administration’s policies?  Do you understand them? Are you frustrated by them?

DC: I think it requires patience, because what [is announced and] goes on the news, versus what is really implemented and how it truly affects the industry, there’s a huge gap.

[Correction: This story originally reported that DCM had sold nearly $900 worth of shares and maintains another 30%; the firm’s entire position is currently worth $900 million, with 30% of those shares still held.]

I live in San Francisco, but I work an East Coast schedule to get a jump on the news day. So I’d already been at my desk for a couple of hours on Wednesday morning when I looked up and saw this:

As unsettling as it was to see the natural environment so transformed, I still got my work done. This is not to boast: I have a desk job and a working air filter. (People who make deliveries in the toxic air or are homeschooling their children while working from home during a global pandemic, however, impress the hell out of me.)

Not coincidentally, two of the Extra Crunch stories that ran since our Tuesday newsletter tie directly into what’s going on outside my window:

As this guest post predicted, a suboptimal attempt I made to track a delayed package using interactive voice response (IVR) indeed poisoned my customer experience, and;

Sheltering in place to avoid the novel coronavirus — and wildfire smoke — is fueling growth in the video-game industry, perhaps one factor in Unity Software Inc.’s plan to go public ahead of competitor Epic Games. In a two-part series, we looked at how the company has expanded beyond games and shared a detailed financial breakdown.

We covered a lot of ground this week, so scroll down or visit the recently redesigned Extra Crunch home page. If you’d like to receive this roundup via email each Tuesday and Friday, please click here.

Thanks very much for reading Extra Crunch; I hope you have a relaxing and safe weekend.

Walter Thompson
Senior Editor
@yourprotagonist

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Bear and bull cases for Unity’s IPO

In a two-part series that ran on TechCrunch and Extra Crunch, former media columnist Eric Peckham returned to share his analysis of Unity Software Inc.’s S-1 filing.

Part one is a deep dive that explains how the company has grown beyond gaming to develop multiple revenue streams and where it’s headed.

For part two on Extra Crunch, he studied the company’s numbers to offer some context for its approximately $11 billion valuation.

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10 Poland-based investors discuss trends, opportunities and the road ahead

As we’ve covered previously, the COVID-19 pandemic is making the world a lot smaller.

Investors who focus on their own backyards still have an advantage, but the ability to set up a quick coffee meeting with a promising investor is no longer one of them.

Even though some VCs are cutting first checks after Zoom calls, regional investors’ personal networks are still a trump card. Tourists will always rely on guide books, however, which is why we continue to survey investors around the world.

A Dealroom report issued this summer determined that 97 VC funds backed more than 1,600 funding rounds in Poland last year. With over 2,400 early- and late-stage startups and 400,000 engineers in the country, it’s easy to see why foreign investors are taking notice.

Editor-at-large Mike Butcher reached out to several investors who focus on Warsaw and Poland in general to learn more about the startups fueling their interest across fintech, gaming, security and other sectors:

• Bryony Cooper, managing partner, Arkley Brinc VC
• Anna Wnuk-B?a?ejczyk, investor relations manager, Experior.vc
• Rafa? Roszak, investment director, YouNick Mint
• Michal Mroczkowski, partner, Market One Capital
• Marcus Erken, partner, Sunfish Partners
• Borys Musielak, partner, SMOK Ventures
• Mathias Åsberg, partner, Nextgrid
• Kuba Dudek, SpeedUp Venture Capital Group
• Marcin Laczynski, partner, Next Road Ventures
• Micha? Rokosz, partner, Inovo Venture Partners

We’ll run the conclusion of his survey next Tuesday.

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Brands that hyper-personalize will win the next decade

Even for fledgling startups, creating a robust customer service channel — or at least one that doesn’t annoy people — is a reliable way to keep users in the sales funnel.

Using AI and automation is fine, but now that consumers have grown used to asking phones and smart speakers to predict the weather and read recipe instructions, their expectations are higher than ever.

If you’re trying to figure out what people want from hyper-personalized customer experiences and how you can operationalize AI to give them what they’re after, start here.

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VCs pour funding into edtech startups as COVID-19 shakes up the market

For today’s edition of The Exchange, Natasha Mascarenhas joined Alex Wilhelm to examine how the pandemic-fueled surge of interest in edtech is manifesting on the funding front.

The numbers suggest that funding will far surpass the sector’s high-water mark set in 2018, so the duo studied the numbers through August 31, which included a number of mega-rounds that exceeded $100 million.

“Now the challenge for the sector will be keeping its growth alive in 2021, showing investors that their 2020 bets were not merely wagers made during a single, overheated year,” they conclude.

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How to respond to a data breach

The odds are low that someone’s going to enter my home and steal my belongings. I still lock my door when I leave the house, however, and my valuables are insured. I’m an optimist, not a fool.

Similarly: Is your startup’s cybersecurity strategy based on optimism, or do you have an actual response plan in case of a data breach?

Security reporter Zack Whittaker has seen some shambolic reactions to security lapses, which is why he turned in a post-mortem about a corporation that got it right.

“Once in a while, a company’s response almost makes up for the daily deluge of hypocrisy, obfuscation and downright lies,” says Zack.

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Shift’s George Arison shares 6 tips for taking your company public via a SPAC

There’s a lot of buzz about special purpose acquisition companies these days.

Used-car marketplace Shift announced its SPAC in June 2020, and is on track to complete the process in the next few months, so co-founder/co-CEO George Arison wrote an Extra Crunch guest post to share what he has learned.

Step one: “If you go the SPAC route, you’ll need to become an expert at financial engineering.”

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Dear Sophie: What is a J-1 visa and how can we use it?

Dear Sophie:

I am a software engineer and have been looking at job postings in the U.S. I’ve heard from my friends about J-1 Visa Training or J-1 Research.

What is a J-1 status? What are the requirements to qualify? Do I need to find a U.S. employer willing to sponsor me before I apply for one? Can I get a visa? How long could I stay?

— Determined in Delhi

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As direct listing looms, Palantir insiders are accelerating stock sales

While we count down to the September 23 premiere of NYSE: PLTR, Danny Crichton looked at the “robust secondary market” that has allowed some investors to acquire shares early.

“Given the number of people involved and the number of shares bought and sold over the past 18 months, we can get some insight regarding how insiders perceive Palantir’s value,” he writes.

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Use ‘productive paranoia’ to build cybersecurity culture at your startup

Zack Whittaker interviewed Bugcrowd CTO, founder and chairman Casey Ellis about the best practices he recommends for creating a startup culture that takes security seriously.

“It’s an everyone problem,” said Ellis, who encouraged founders to promote the notion of “productive paranoia.”

Now that the threat envelope includes everyone from marketing to engineering, employees need to “internalize the fact that bad stuff can and does happen if you do it wrong,” Ellis said.

Alex Zajaczkowski was just months into her role at Toast, a restaurant point-of-sale software company, when she was let go during COVID-19 layoffs. Toast, last valued at $5 billion, cut 50% of its staff through layoffs and furloughs.

Zajaczkowski said she started applying for jobs within a week.

“I think I got on the boat a little bit quicker than others because I wanted that security a little bit faster,” she said. She and former Toast colleagues formed a Slack to communicate about layoffs, their job searches and what lay ahead. Toast created an opt-in spreadsheet for recruiters that listed laid-off employees.

The sheet brought Zajaczkowski to Stavvy, an online mortgage startup also based in Boston, for an interview. Today, a majority of Stavvy’s team are ex-Toasters, including Zajaczkowski.

“I think one of the benefits of recruiting from an organization that is sort of an iconic Boston company, is that you know what the hiring practices are,” Ligris said. “There’s been a level of vetting that has occurred.”

Stavvy’s onboarding of former Toast employees suggests that the layoffs which rocked startups in March could be an opportunity for smaller startups to scoop up star talent that already has chemistry. While acqui-hiring is not a new concept, it has new weight in an environment reeling from mass layoffs and a shift to remote-first work.

Stavvy co-founders Kosta Ligris and Josh Feinblum, though, say hiring a pod of employees can backfire without proper diligence.

While the coronavirus has accelerated the dealmaking pace for many early-stage startups, activity has not come without adaptation.

Remote investment struggles for investors were clear from the get go: it’s challenging to invest millions in someone you have never met, and there’s not a lot to learn from “off-the-cuff” conversations that are calendared days in advance. Some investors said the pandemic was forcing them to stick with people they know in categories where they have experience, limiting the network that one can push money into.

Over six months into a global pandemic, though, new techniques are emerging to address some of these woes. The very art of a deal, from due diligence to sourcing, is changing from a cultural and technological standpoint.

One of the new places that recreates informal bonding and camaraderie is Matchbox.VC, formerly Fortnite.VC.

The service connects founders and investors over video games to network and source deals in a low-stress environment. Matchbox.VC was inspired from a tweet by Founders Fund principal Delian Asparouhov and has garnered interest from investors like Arjun Sethi from Tribe Capital, Ryan Shea, the ex-founder of Blockstack, Jake Chapman from AlphafundVC and Peter Rojas from Betaworks. Its last game night was backed by Yac, Tribe Capital and Shrug Capital.

The pitch is simple: founders and investors sign up on the website, answer basic questions about their focus, company and stage before picking three game choices from eight options that include Fortnite, COD: Warzone and Valorant.

Apple’s making App Store changes, China might stop TikTok’s acquisition and we talk to Polish venture capitalists about the startup scene. This is your Daily Crunch for September 11, 2020.

The big story: Apple revises App Store rules

Apple announced a bunch of changes to its App Store guidelines today, with details about how it will support new iOS features like App Clips and much more.

For one thing, it sounds like the App Store will now support game-streaming services like Microsoft’s xCloud and Google’s Stadia. The main caveat is that games available through these services must have their own listings in the App Store and be available as a separate download.

In addition, Apple is also offering more flexibility to “reader” apps like Netflix, and said it’s supporting a new category called “free stand-alone” apps, which could include email apps like the disputed Hey.

The tech giants

Facebook launches poll worker recruitment push in the News Feed — With the election looming and a pandemic still raging through the U.S., a shortage of poll workers is one of many threats to voting this November.

Elon Musk says Tesla will ‘one day’ produce ‘super efficient home HVAC’ with HEPA filtering — While primarily an automaker, Tesla is also already in the business of home energy and power generation, thanks to its acquisition of SolarCity.

Startups, funding and venture capital

China may kill TikTok’s U.S. operations rather than see them sold — According to reporting by Reuters, the Chinese government may prefer if TikTok simply shutters its U.S. operations instead of allowing it to be sold to an American company.

Santander spins out its $400M fintech venture capital arm, now called Mouro Capital — Santander, the Spanish multinational banking giant, is announcing that its fintech venture arm is to be spun out and will be managed more autonomously going forward.

Toucan raises $3 million to teach you new languages as you browse the web — The startup has developed a Chrome browser extension designed for anyone who wants to learn a new language but hasn’t found the motivation or the time.

Advice and analysis From Extra Crunch

10 Poland-based investors discuss trends, opportunities and the road ahead — The first in a two-part survey series about the nation’s startup ecosystem.

VCs pour funding into edtech startups as COVID-19 shakes up the market — 2020 should crush 2018’s edtech fundraising record.

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

Everything else

England’s long-delayed COVID-19 contact-tracing app to launch on September 24 — Scotland and Northern Ireland already have their own COVID-19 contact-tracing apps.

TechCrunch still brings the fun to Disrupt 2020 — Disrupt may be virtual this year, but we’re still making time for levity, swag and kick-ass entertainment.

The 2019 TechCrunch Include Report — TechCrunch is reporting our 2019 events and staff diversity numbers, the fourth report since we started tracking.

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

We’re coming down to the wire folks. Disrupt 2020 officially opens its virtual doors September 14 for five super-charged days of everything the early-stage startup community needs to build better, faster, stronger. Going virtual translates into a global reach making this our largest Disrupt ever. Yowza!

There’s a lot going on during this Disrupt — talk about a vast understatement — including a jam-packed agenda (with time zone-friendly programming for attendees in Europe and Asia), a virtual venue, new events and a multitude of other moving parts. We put together this user guide to help you navigate Disrupt 2020 with maximum efficiency and minimal frustration.

Buckle up for a logistical look at Disrupt 2020.

First, Disrupt will be hosted on the virtual venue platform, Hopin, where all of the action will happen: the Disrupt Stage featuring the Startup Battlefield competition, the Extra Crunch stage, and network with CrunchMatch, access the Expo featuring hundreds of early stage startups.

For you Disrupt Digital Pro pass holders – make sure to sign into CrunchMatch, hosted on Grip, to access a list of recommended connections with other Disrupt attendees. CrunchMatch is brought to you by All Raise, Bizzabo, Invest in Canada, MongoDB, TTA, TechStars and Western Digital. Your Disrupt ticket number on your Bizzabo registration confirmation email is your key to access the platform.

Pitch-off Breakout Sessions

In addition to the famous Startup Battlefield, we love giving startups the mic to grab the spotlight for their fledgling startups. Tune into these 5 pitch-off breakout sessions.

Monday
12PM – Taiwan Pavilion Pitch-Off pt 1

Tuesday
10AM: Belgium Pavilion Pitch-Off
12PM: Taiwan Pavilion Pitch-Off pt 2

Wednesday
10AM: Japan Pavilion Pitch-Off
11AM: Korean Pavilion Pitch-Off

Breakout Sessions

Break out from the Disrupt stage content with a special breakout session:
Monday 11:am: How to Invest in Infrastructure to Deliver Experience with Adobe
Tuesday 9am: Diversity as Disruption: Create a more diverse ecosystem now, with SVB
Tuesday 9am: Taiwan Reception: Innovations and investment opportunities amid COVID19 Pandemics with Christine Tsai (500 Startups), Allan May (Life Science Angels)
Wednesday 9am: Learn from Canadian founders who will talk about their start-ups and how Canada has helped them grow and succeed globally, with the Consulate of Canada
Wednesday 12pm: Making Data Meaningful for the FinTech Ecosystem, with Yodlee
Thursday 10am: Advertising Disrupted: What User Privacy Means For Marketers with Appsflyer
Thursday 12pm: It Takes An Ecosystem To Innovate: Startups, Corporations and the Connectors that Bring Them Together with KITE

 

Noteworthy events

Startup Legal Advice
Perkins Coie is offering free startup legal advice to Disrupt attendees. Pop by their booth or sign up here to reserve some time with one of their industry-renowned startup lawyers.

Diversity as Disruption: Take action now to create a more diverse ecosystem presented by SVB

Tuesday, September 15th at 9:00-9:50am PST 

Recent events continue to demonstrate that change is not happening fast enough. How can we ensure the current social justice momentum is more than just talk? Guided by SVB’s recent research into the “4th wave of venture capital,” learn how three industry leaders are tackling the problem with real actions. By the close of the session, leave with tangible steps you can take today – whether as an individual or as a firm — to make a meaningful, move-the-needle impact in your organization

Speed of Thought Documentary: The First 5G Visionaries

Tuesday, September 15th at 1:40pm PST

See the premiere of Speed of Thought on the DIsrupt stage, a documentary about the first wave of 5G visionaries, and hear industry leaders discuss how the need for 5G tech and solutions is more urgent than ever.  Stay after the documentary to hear directly from some of the featured innovators talk about how they are using the power of 5G to tackle some of the biggest challenges facing society today

Bahrain: Your gateway to the Middle East and beyond
Wednesday, September 16th from 10:00-11:00 AM PST
With its supportive ecosystem, advanced digital infrastructure, flexible and pioneering regulations; rapid growth in funding opportunities, and a liberal market, Bahrain is the ideal testbed for startups and scaleups to test their products and solutions before growing and expanding across the Middle East.

TC Include Reception – PRIVATE

TC Include kicks off this year’s founder cohort with organizational partners Black Female Founders, Female Founders Alliance, Latinx Startup Alliance and StartOut with remarks by Sootchy Founder and CEO, David Adefeso.

 

Take a break

We’re tapping Wave technology to present Lindsey Stirling, an American violinist, songwriter, and dancer. She’s racked up tens of millions of followers worldwide and more than 3 billion total views on YouTube. Stirling is a performing powerhouse who’s latest album “Artemis” debuted at #1 on Billboard’s Dance/Electronic Albums Chart. Check out two of her YouTube videos here and here.

TeaTime, makers of Trivia Royale, is giving Disrupt attendees a break from all the serious learnings by hosting TC trivia. Win a TechCrunch swag bag and serious bragging rights.

Close out Disrupt on Friday at 1:30pm with a live, virtual Cocktail Party on Run the World. Run the World is the first video events platform built specifically for social interaction. 

 

Transcriptions

TechCrunch Disrupt is using Otter.ai to transcribe all the events occurring on our Disrupt Stage and Extra Crunch Stage. Check it out for real-time transcripts of the show.

Whew…now that you have your logistical guide to all things Disrupt 2020, all that’s left is to roll up your sleeves, dive in, and discover the opportunities that can help take your business to the next level and beyond. Go get ‘em!

Sponsored by

The search giant tweaks its algorithm after WIRED finds it would suggest “Donate Biden,” but not “Donate Trump.”

The show, starring Lamorne Morris, is just too weird to ever feel preachy. Phew.

Welcome back to Human Capital, where we unpack the latest in tech labor and diversity and inclusion. This week, we’re looking at the latest developments in the battle over the classification of gig workers, the rise of labor unions in tech and and Instagram’s latest move to be woke.

Human Capital will soon be available as a newsletter. Be sure to sign up here.

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Gig Work

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Both sides of Prop 22 are going full steam ahead in their efforts to sway California voters. Uber, Lyft, Instacart and DoorDash each committed another $17.5 million to Yes on Prop 22 last Friday, according to a late contributions filing. 

As of August 24, the Yes on 22 campaign had contributed just north of $110 million, while the No on 22 campaign had put $4.6 million into its efforts. The latest influx of cash brings Yes on 22’s total contributions to more than $180 million. Of all the measures on this November’s ballot, Yes on Prop 22 has received the most contributions, according to California’s Fair Political Practices Commission. 

Bastian Lehmann, CEO of Postmates, also penned an op-ed on CNN about gig workers and how there needs to be a third classification of workers, which is essentially what Prop 22 is pushing. 

Meanwhile, rideshare drivers took to the streets of Oakland, California to protest Uber’s ads and Prop 22. 

All this Prop 22 activity comes amid a lawsuit brought forth by California Attorney General Xavier Becerra and a handful of local city attorneys that seek to force Uber and Lyft to classify their drivers as employees. In Lyft’s sworn statement addressing how Lyft would go about transitioning its drivers from independent contractors to employees, CEO Logan Green said the company might cease operations in all or parts of California if forced to reclassify drivers, according to the San Francisco Chronicle. 

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Tech unions

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This year has marked a new wave of organizing among tech workers. Unions, which act as a sort of intermediary between workers and their employers, advocate on behalf of employees for better wages, working conditions and other benefits through collective bargaining. Among full-time wage and salary workers, union members had weekly earnings of $1,095, compared to $892 for non-union members in 2019, according to the U.S. Bureau of Labor Statistics.

In February, Kickstarter employees voted to form a union after months of what appeared to be union busting at the hands of Kickstarter leadership. In September 2019, Kickstarter fired two people who were actively organizing the union. Now, the National Labor Board has found merit that Kickstarter unlawfully fired those two people. 

Kickstarter’s successful organizing made it become the first major tech company in the U.S. to unionize and join OPEIU Local 153. Then, one month later, collaborative coding platform Glitch voted to unionize with Code-CWA.*

Now, at least 10 tech companies are actively trying to unionize, according to Grace Reckers, the lead northeast union organizer of OPEIU, told TechCrunch. Part of what’s driving this increased interest in unions is the abuse of data and privacy by tech giants.

“Employees are seeing that they don’t actually have control of how the products they make are being used,” she said. “Even though most of the messaging in Silicon Valley is about creating a better world for us, making our lives easier and innovating, it also moves under the philosophy of move fast and break things.”

And “breaking things” can lead to things like employee layoffs, misuse of data or separation of families, Reckers said.

“Workers want control over how products are being created, and control of how those tools are being used,” she said. “People are realizing it’s not just about their immediate workplaces but also their impacts on local communities or global communities.”

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Stay Woke

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Instagram announced a new Equity team to work on “better understanding and addressing bias in our product development” the experiences people have on Instagram, Adam Mosseri, Instagram lead, wrote. Part of the responsibilities of that team include creating fair and equitable products, as well as ensuring algorithmic fairness. According to a job posting for an equity and inclusion product manager, the team will be fully focused on equity and inclusion, and “creating the most equitable experience for our global communities.”

Instagram desperately needs an effective team in this area. In June, some Instagram influencers posted photos of themselves in Blackface in a misguided attempt to support the Black Lives Matter movement. Meanwhile, Black people have reported harassment on the platform and fears of being shadowbanned.

Instagram is also looking to hire its own diversity lead. According to the job posting, the director of diversity and inclusion will be responsible for increasing and retaining people from diverse backgrounds, among other things. Facebook has had a head of diversity in place since 2013, but given how big of a company Facebook has become, it seems worthwhile to have a diversity leader specifically focused on Instagram.

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Don’t Miss

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• Employees of Social Change Nonprofit Stage Walkout to Protest ‘Racial Abuse’
• Instacart Hacks and Bots Have Fueled a Racist Class War Among Shoppers
• Target’s Delivery App Workers to Be Paid by a Blackbox Algorithm Nationwide

*Disclosure: My partner works at Glitch.

The controversial push to force Chinese tech unicorn ByteDance to divest part or all of its smash-hit TikTok social media service to a U.S.-based company could be in doubt after a report today indicated that China’s government may oppose the transaction. According to reporting by Reuters, the Chinese government may prefer TikTok to simply shutter its U.S. operations instead of allowing it to be sold to an American company.

The potential divestment of TikTok is not a regular business transaction. Instead, the deal is being demanded by the U.S. government, as President Donald Trump directs foreign and economic policymaking via executive fiat. Leaning on his own fabled business acumen, the American premier has also demanded that his government receive a portion of any final sale price. It is not clear if that concept is legal.

As the U.S. and China spar around the globe for both economic and political supremacy, the deal is a flashpoint between the countries with a muddle of companies stuck in the middle. ByteDance is in the mix, along with Microsoft, Walmart and other companies to a lesser degree, like Oracle. The Trump administration has set a mid-September timeline for a deal being struck, though as the month burns away it is not clear if that timeline could be met.

The United States is not alone in taking steps to curb Chinese influence inside its borders, as the TikTok sale comes after India banned the app, along with dozens of other China-based applications.

The deal is also under pressure from a changing regulatory environment in China, with the country’s autocratic leadership changing its export rules to possibly include elements of TikTok that could limit a transaction, and perhaps scuttle its sale.

For ByteDance, the situation is a nightmare. For lead-suitor Microsoft, the transaction is a shotgun marriage that it might not be entirely enthused about. For the Trump administration, it’s an attempt at a power play. And for China’s increasingly authoritarian government, the deal could feel like submission. So, if the deal does manage to come together it will be more surprise than eventuality.