FTC puts hardware makers on warning for potential ‘unlawful repair restrictions’

As phones and other consumer devices have gained feature after feature, they have also declined in how easily they can be repaired, with Apple at the head of this ignoble pack. The FTC has taken note, admitting that the agency has been lax on this front but that going forward it will prioritize what could be illegal restrictions by companies as to how consumers can repair, repurpose and reuse their own property.

Devices are often built today with no concessions made toward easy repair or refurbishment, or even once-routine upgrades like adding RAM or swapping out an ailing battery. While companies like Apple do often support hardware for a long time in some respects, the trade-off seems to be that if you crack your screen, the maker is your only real option to fix it.

That’s a problem for many reasons, as right-to-repair activist and iFixit founder Kyle Wiens has argued indefatigably for years (the company posted proudly about the statement on its blog). The FTC sought comment on this topic back in 2019, issued a report on the state of things a few months ago, and now (perhaps emboldened by new chair Lina Khan’s green light to all things fearful to Big Tech companies) has issued a policy statement.

The gist of the unanimously approved statement is that they found that the practice of deliberately restricting repairs may have serious repercussions, especially among people who don’t have the cash to pay the Apple tax for what ought to be (and once was) a simple repair.

The Commission’s report on repair restrictions explores and discusses a number of these issues and describes the hardships repair restrictions create for families and businesses. The Commission is concerned that this burden is borne more heavily by underserved communities, including communities of color and lower-income Americans. The pandemic exacerbated these effects as consumers relied more heavily on technology than ever before.

While unlawful repair restrictions have generally not been an enforcement priority for the Commission for a number of years, the Commission has determined that it will devote more enforcement resources to combat these practices. Accordingly, the Commission will now prioritize investigations into unlawful repair restrictions under relevant statutes…

The statement then makes four basic points. First, it reiterates the need for consumers and other public organizations to report and characterize what they perceive as unfair or problematic repair restrictions. The FTC doesn’t go out and spontaneously investigate companies, it generally needs a complaint to set the wheels in motion, such as people alleging that Facebook is misusing their data.

Second is a surprising antitrust tie-in, where the FTC says it will look at said restrictions aiming to answer whether monopolistic practices like tying and exclusionary design are in play. This could be something like refusing to allow upgrades, then charging an order of magnitude higher than market price for something like a few extra gigs of storage or RAM, or designing products in such a way that it moots competition. Or perhaps arbitrary warranty violations for doing things like removing screws or taking the device to a third party for repairs. (Of course, these would depend on establishing monopoly status or market power for the company, something the FTC has had trouble doing.)

More in line with the FTC’s usual commercial regulations, it will assess whether the restrictions are “unfair acts or practices,” which is a much broader and easier to meet requirement. You don’t need a monopoly to make claims of an “open standard” to be misleading, or for a hidden setting to slow the operations of third-party apps or peripherals, for instance.

And lastly the agency mentions that it will be working with states in its push to establish new regulations and laws. This is perhaps a reference to the pioneering “right to repair” bills like the one passed by Massachusetts last year. Successes and failures along those lines will be taken into account and the feds and state policymakers will be comparing notes.

This isn’t the first movement in this direction by a long shot, but it is one of the plainest. Tech companies have seen the writing on the wall, and done things like expand independent repair programs — but it’s arguable that these actions were taken in anticipation of the FTC’s expected shift toward establishing hard lines on the topic.

The FTC isn’t showing its full hand here, but it’s certainly hinting that it’s ready to play if the companies involved want to push their luck. We’ll probably know more soon once it starts ingesting consumer complaints and builds a picture of the repair landscape.

DraftKings shares plans for launch of NFT collectibles marketplace

DraftKings is charging into the NFT game, announcing a marketplace aimed at curating sports and entertainment-themed digital collectibles for its audience of enthusiasts. The platform is “debuting later this summer,” and showcases another potentially lucrative expansion for the fantasy sports betting company.

DraftKings is entering a market that is both crowded and sparse — with plenty of NFT marketplace options for today’s niche group of collectors, though offerings are still light when considering the billions that have flowed through the space in the first several months of the year. This week, investors gave NFT marketplace OpenSea a $1.5 billion valuation. Dapper Labs, which makes NBA Top Shot, recently raised at a reported $7.5 billion valuation.

Dapper’s existing sway in the space will leave DraftKings pursuing opportunities outside exclusive league partnerships. NBA Top Shot allows players to buy “Moments” from NBA history, clips of actual game and player footage to which it has access via league and players’ association partnerships. In addition to the NBA, Dapper has already partnered with other leagues.

DraftKings’ foothold in the space will come from an exclusive partnership with Autograph, a newly launched NFT startup co-founded by quarterback Tom Brady. The company has inked exclusive NFT deals with some top athletes, including Tiger Woods, Wayne Gretzky, Derek Jeter, Naomi Osaka and Tony Hawk, hoping to build out its platform as the hub for sports personality collectibles.

Aside from the partnerships, DraftKings is hoping to get a leg up in the space by further simplifying the user onboarding process, allowing users to buy NFTs without loading a wallet with cryptocurrency, instead purchasing with USD. When the platform launches, users will be able to purchase NFTs from DraftKings and resell or trade them through the platform.

For DraftKings, which has raised some $720 million in funding since launch in 2012, the NFT expansion could offer an opportunity of funneling their existing audience into the new vertical. Few existing tech startups have made noteworthy expansions into the NFT world despite plenty of hype and investor interest. DraftKings co-founder Matt Kalish tells TechCrunch that the startup’s devoted community is its biggest asset to winning in the rising space.

“DraftKings has millions of people in our community who show up to out-platform every day and every week,” Kalish says. “We think our biggest advantage is the strength and size of our community… [We] will bring a lot of eyeballs to the table.”

Elon Musk says Tesla will ‘most likely’ accept bitcoin again when it becomes more eco-friendly

Tesla will ‘most likely’ resume accepting bitcoin as a form of payment once the mining rate for the cryptocurrency reaches 50% renewables, CEO Elon Musk said Wednesday at a virtual panel discussion hosted by the Crypto Council for Innovation, remarks that are in line with statements he made last month on Twitter.

Tesla started accepting bitcoin as a form of payment in February, the same time that the company purchased a historic $1.5 billion in bitcoin — before reneging on its decision just three months later, citing environmental concerns.

Cryptocurrencies get a bad rap for energy usage because they do indeed use up an awful lot of energy, at least many of them do. Bitcoin and Ethereum, the space’s two biggest currencies, use a mechanism called proof-of-work to power their networks and mint new blocks of each currency. The “work” is solving complex cryptographic problems and miners do so by stringing together high-end graphics cards to tackle these problems. Major mining centers have thousands of GPUs running around the clock.

While Ethereum has already committed to transitioning away from proof-of-work to something called proof-of-stake, which vastly reduces energy usage, Bitcoin seems less likely to make this transition. So, becoming “eco-friendly” likely doesn’t mean making any major underlying changes to Bitcoin, but rather shifting what energy sources are powering those mining centers.

While Bitcoin’s global mining network does clearly lean on renewables, it’s pretty difficult to get exact insights on what the spread of renewables usage is given how, ahem, decentralized the grid is. What is clear is that it’s going to take some unprecedented transparency from the global network to even give Musk a starting point here to judge Bitcoin’s current or future “eco-friendliness,” and in all likelihood Musk will have a lot of wiggle room to make this decision based on anecdotal data whenever he wants.

Today’s comments come as no surprise: He tweeted in June, “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”

This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.

When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.

— Elon Musk (@elonmusk) June 13, 2021

His comments do give him plenty of wiggle room, however. “As long as there is a conscious effort to move bitcoin miners toward renewables then Tesla can support that,” he added later in the talk. A large portion of bitcoin mining was done in China, where cheap coal and hydropower made it slightly more economical; but Musk noted that some of these coal plants have been shut down (and a large portion of miners in China have started to migrate abroad, in response to mining crackdowns by the Chinese party).

It should also be noted that his concerns over bitcoin’s environmental impact have caused controversy in the bitcoin community, with some arguing that bitcoin receives an oversized amount of scrutiny relative to its actual energy consumption. Twitter CEO Jack Dorsey, who also participated in the virtual panel, has actually argued that bitcoin can incentivize the transition to renewable energy. A white paper published by the Bitcoin Clean Energy Initiative, a program created by Square, argues that bitcoin mining could make renewables even cheaper and more economically feasible than they are today.

Musk’s comments, as ambiguous as they were, shows he still exerts considerable power over cryptocurrency markets. Bitcoin price fell below $30,000 on Monday, after hitting an all-time high of over $63,000 in April. But after the billionaire founder revealed more details about his and his companies’ holdings at the virtual panel, the price rebounded.

In addition to personal bitcoin holdings and Tesla’s bitcoin holdings, his aerospace company SpaceX also owns bitcoin. Musk added that he also personally owns ether and (of course) dogecoin. The price for all three cryptocurrencies rose after his comments.

Group discounts let you take the whole team to TC Sessions: SaaS 2021

If you want to get the most value out of attending TC Sessions: SaaS 2021, a day-long deep dive into the rapidly changing and expanding world of software as a service, don’t go it alone — take your team. It’s a smart way to cover more ground on October 27, make more connections and increase your ROI.

We’re talking a sweet group discount, people. The early-bird pricing won’t remain in play forever, so get your group passes now and cross that money-saving task off your to-do list before the prices go up.

TC Sessions is where community meets opportunity. Each event focuses on a specific tech sector, and it’s a chance for everyone within that ecosystem to learn about the latest trends, hear from the leading experts, founders, investors and other visionaries and, of course, network.

Expect nothing less from TC Sessions: SaaS. We’re nailing down the agenda and building out a roster of impressive speakers. Does that describe you? Apply here to speak if you want to share your vast knowledge.

We’ll be announcing plenty more speakers in the coming weeks. Here’s a perfect example. Databricks co-founder and CEO, Ali Ghodsi will grace our virtual stage to talk, among other things, about the future of data management in AI.

Pro tip: Keep your finger on the pulse of TC Sessions: SaaS. Get updates when we announce new speakers, add events and offer ticket discounts.

Why should you carve a day out of your hectic schedule to attend TC Sessions: SaaS? This may be the first year we’ve focused on SaaS, but this ain’t our first rodeo. Here’s what other attendees have to say about their TC Sessions experience.

“TC Sessions: Mobility offers several big benefits. First, networking opportunities that result in concrete partnerships. Second, the chance to learn the latest trends and how mobility will evolve. Third, the opportunity for unknown startups to connect with other mobility companies and build brand awareness.” — Karin Maake, senior director of communications at FlashParking.

“People want to be around what’s interesting and learn what trends and issues they need to pay attention to. Even large companies like GM and Ford were there, because they’re starting to see the trend move toward mobility. They want to learn from the experts, and TC Sessions: Mobility has all the experts.” — Melika Jahangiri, vice president at Wunder Mobility.

TC Sessions: SaaS 2021 takes place on October 27. Grab your team, join your community and create opportunity. Don’t wait — jump on this group discount offer right now.

Is your company interested in sponsoring or exhibiting at TC Sessions: SaaS 2021? Contact our sponsorship sales team by filling out this form.

Twitter tests Reddit-style upvote and downvote buttons

Twitter will test the use of Reddit-like upvote and downvote buttons as a way to better highlight the more interesting and relevant replies in a longer conversation thread. The company announced this afternoon it would begin what it’s calling a “small research experiment” that will add upvote and downvote buttons to replies, or even replace the “Like” button entirely. In some cases, the upvote and downvote buttons may be up arrows and down arrows, while in other cases they may be thumbs up and thumbs down buttons.

And in one group of testers, users may continue to see the “Like” button (the red heart) but will now find a downvote button alongside it. In this group, the upvote would count as a “Like,” Twitter said.

Twitter clarified to TechCrunch that only a small number of testers will see these options appear in their Twitter iOS app, and users’ votes will not become public.

The company also said it’s not currently using this vote information to rank the replies at this time. (If, however, such a system ever become a public feature, that could certainly change.)

The goal with the test is to help Twitter to learn what sort of replies users find most relevant during their conversations, which is something Twitter has studied for some time. According to Twitter user researcher Cody Elam, past studies determined that users believed replies that were informative, supportive, positive and funny were the “best” types of replies. However, some of the best replies wouldn’t surface quickly enough — an issue Twitter hopes to be able to address with an upvoting and downvoting feature.

Today, we’re launching an experiment for voting within replies — a way to give us feedback on what replies you find most relevant.

How did research and exploration get us here? ? https://t.co/hvmNuXvs9S

— Cody Elam (@codyelam) July 21, 2021

Elam says the feature would allow users to privately voice their opinion on the replies’ quality without having to publicly shame other users. Over time, this data could help Twitter to improve its conversation ranking systems.

If Twitter were to act on this information to actually rank the replies, it could make it easier and more enjoyable to read longer Twitter threads — like those that follow viral tweets, for example. But it could also help to better showcase the replies that add something informative or interesting or even just funny to a conversation, while pushing any trolling remarks down the thread.

Today, Twitter allows users to manually hide the replies that detract from a conversation by placing them behind an extra click. Perhaps, in time, it could do something similar for replies that received too many downvotes, too — like Reddit does. But none of these types of features are being tested right now, to be clear.

This isn’t the first time Twitter has shown interest in other types of engagement buttons beyond the Like and Retweet. Earlier this year, for example, Twitter was spotted surveying users about their interest in a broader set of emoji-style reactions, similar to what you’d find on Facebook. That feature has since been put into development, it seems.

The same survey had also asked users how they felt about upvote and downvote buttons, in addition to emoji reactions.

Twitter says the test is rolling out now to a small group on iOS only.

These simple metrics will tell you if your startup is ready to scale

Tae Hea Nahm
Contributor

Tae Hea Nahm is co-founder and managing director of Storm Ventures and is the co-author of the “Survival to Thrival” book and podcast series. For more, visit Unlock, his online resource.

Finding go-to-market fit (GTM) is a pivotal moment for a startup. It means you’ve found a repeatable formula for finding and winning lead that can be written into a repeatable GTM playbook. But before you scale up your sales and marketing, you should check the metrics to make sure you’re ready.

So, how do you know when your startup is ready to scale? I’ll help you answer this using numbers you can calculate on a napkin.

You have to consider three metrics — gross churn rate, the magic number and gross margin. With these, you can measure the health and profitability of your business. By combining them into a simple equation, you can get your LTV:CAC ratio (long-term customer value to customer acquisition cost), which is a measure of your business’ long-term financial outlook. If the LTV:CAC is over 3, you’re ready to scale.

Whatever your particular business, it’s worth spending some time with these metrics to find realistic targets that will push LTV:CAC over 3. Otherwise, you might be in danger of running off a cliff.

Let’s unpack the three basic metrics:

Gross churn rate (GCR) is a measure of product-market fit (PMF). GCR is the percentage of recurring revenue lost from customers that didn’t renew. It answers the question: Do your customers stay with you? If your customers don’t stick with you, you haven’t found PMF.

GCR = Lost monthly recurring revenue / Total MRR.

Example: At the beginning of March, the company brought in $60,000 in MRR. By the end of the month, $15,000 worth of contracts didn’t renew.

GCR = $15,000 / $60,000 = 0.25, or 25% GCR.

In growth marketing, creative is the critical X factor

Jonathan Martinez
Contributor

Jonathan Martinez is a former YouTuber, UC Berkeley alum and growth marketing nerd who’s helped scale Uber, Postmates, Chime and various startups.

As we move toward a privacy-centric, less targeted future of growth marketing, the biggest lever will become creative on paid social channels such as the Facebooks of the world. The loss of attribution from our good friend iOS 14.5 has accelerated this trend, but channels have increasingly placed efforts toward automating their ad platforms.

Due to this, I believe that every growth marketing engine should have a proper creative testing framework in place — be it a seed-stage startup or a behemoth like Google.

After three years at Postmates, consulting for various startups, and most recently at Uber, I’ve seen the landscape of marketing change in a multitude of ways. However, what we’re seeing now is being orchestrated by factors out of our control, causing a dawn of shifts unlike anything I’ve seen. Creative has subsequently risen to become the most powerful lever in a paid social account.

The foundation

If you’re looking to leverage the power of creative and succeed with paid social marketing, you’re thinking right. What you need is a creative testing framework: A structured and consistent way to test new creative assets.

Here’s a breakdown of the pieces a creative testing framework needs to be successful:

  • A defined testing schedule.
  • A structured theme approach.
  • A channel-specific strategy.

Creative has become the most powerful lever in a paid social account.

Testing creative should be a constant and iterative process that follows a defined testing schedule. A goal and structure can be as simple as testing five new creative assets per week. Inversely, it can be as complex as testing 60 new assets consisting of multiple themes and copy variations.

For a lower spending account, the creative testing should be leaner due to limited event signal and vice versa with a higher spending account. The most important aspect is that the testing continues to move the needle as you search for your next “champion” asset.

creating a testing schedule for different creative themes

4 themes x 3 variants per theme x 5 copy variations = 60 assets. Image Credits: Jonathan Martinez

After setting a testing schedule, define the core themes of your business and vertical rather than testing a plethora of random ideas. This applies to the creative asset as well as the copy and what the key value props are to your product or service. As you start to analyze the creative data, you’ll find it easier to decide what to double down on or cut from testing with this structure. Think of this as a wireframe that you either expand or trim throughout testing sprints.

For a fitness app like MyFitnessPal, it can be structured as follows:

  • Themes (product screenshots, images of people using it, UGC testimonials, before/after images).
  • Messaging (segmented value props, promo, FUD).

It’s vital to make sure you have a channel-specific approach, as each one will differ in creative best practices along with testing capabilities. What works on Facebook may not work on Snapchat or the numerous other paid social channels. Don’t be discouraged if creative between channels perform differently, although I do recommend parity testing. If you already have the creative asset for one channel, it doesn’t hurt to resize and format for the remaining channels.

Determining wins

Equally important to the creative is proper event selection and a statistically significant threshold to abide by throughout all testing. When selecting an event to use for creative testing, it’s not always possible to use your north-star metric depending on how high your CACs are. For example, if you’re selling a high-ticket item and the CACs are in the hundreds, it would take an enormous amount of spend to reach stat-sig on each creative asset. Instead, pick an event that’s more upper funnel and a strong indicator of a user’s likelihood of converting.

Using a more upper funnel event leads to faster learnings (blue line).

Using a more upper-funnel event leads to faster learnings (blue line). Image Credits: Jonathan Martinez

It’s important to select a percentage that stays consistent across all creative testing when deciding on which statistically significant percentage to use. As a rule of thumb, I like to use a certainty of 80%+, because it allows for enough confirmation along with the ability to make quicker decisions. A great (and free) online calculator is Neil Patel’s A/B Testing Significance Calculator.

Make or break

You’re scrolling through a social feed, a sleek gold pendant catches your eye, but all the messaging has is the brand name and product specifications. It hooked your attention, but what did it do to reel you in? Think about it: What are you doing to not only hook, but reel people in with “creative” — the make or break it factor in paid social growth marketing?

Circumventing iOS 14.5 data loss

Creative testing is only getting tougher for mobile campaigns as iOS 14.5 obfuscates user data, but that doesn’t equal impossible and simply means we need to get craftier. There are a variety of hacks that can be implemented to help gain clear insight on how creative is performing — some may not last forever and others may be timeless.

Amid all the privacy restrictions, we still have access to a huge population of users on Android that we should take advantage of. Instead of running all creative tests on iOS, Android can be used as a clear way to gather insights, as privacy restrictions haven’t rolled out on those devices yet. The data gathered from Android tests can then be taken directionally and applied to iOS campaigns. It’s only a matter of time until Android data is also at the mercy of data restrictions, so use this workaround to inform iOS campaigns now.

If running Android campaigns isn’t a viable option, another quick and easy solution is to throw up a website lead form to gauge the conversion rate from creative asset to a completed form. The user experience will certainly not be nearly as amazing as evergreen, but this can be used to gain insight for a short period of time (and small percentage of budget).

When crafting the lead form, think of questions that are both qualifying and would indicate someone completing your north-star event on the evergreen experience. After running people through the lead form, communications can be sent to convert them so ad dollars are being put to good use.

Placing efforts by account stage

The testing efforts for creative asset types should differ widely by account stage and can be broken down into three I’s: imitation, iteration, innovation.

The type of creative testing should vary over time.

The type of creative testing should vary over time. Image Credits: Jonathan Martinez

The earlier an account stage, the more your creative direction should rely on what’s proven to work by other advertisers. These other advertisers have spent thousands proving performance with their assets, and you can gain strong insight from them. As time passes, you can slightly slow derivation from other advertisers while focusing on iterating on the best performers. If I had to place a percentage, 80% of the effort should be on imitation early on. Iteration will naturally gain steam as winners are deemed, and innovation will be the final, heavy-lagging prong.

This isn’t to say that innovation can’t be attempted early on if there are great ideas, but generally, a more mature company can afford to spend heaps to validate their innovative ideas. Whether you have an in-house design team or are working with freelancers, it’ll also be much easier to spin up 50 variations than it will be to think of and design 50 different innovative assets. Imitating and iterating will make your early testing exponentially more efficient.

Leveraging competitor insights

Brainstorming and trying to imagine the most beautiful, eye-catching, hook-inducing creative doesn’t always happen within seconds, let alone minutes or hours. This is where utilizing competitor insights comes into play.

The most abundant resource is the Facebook Ads Library, because it contains all the creative assets every advertiser is using across the platform. It always surprises me how few actually know of this free and powerful tool.

When browsing through competitors or best-in-class advertisers in this library, a sign of a great performing creative is how long an advertiser has been running specific assets. How does one find that? The date of when an advertiser started running their creative is stamped conveniently on each asset — this is beyond powerful. I can spend hours scanning through creative assets, and each advertiser provides even more intel and inspiration.

Creative should be at the top of the list as you think of where to place efforts on your paid social growth marketing. We must have a hacky mindset as data becomes more obscure, but with that mindset comes separating the winners from the losers. The types of strategies put in motion will vary over time, but what won’t vary is the importance on strong creative, the make it or break it factor to success.

Okendo raises $5.3M to help DTC brands ween themselves off of Big Tech customer data

While direct-to-consumer growth has exploded in the past year, some brands are finding there’s still plenty of room to forge ahead in building a more direct relationship with their customers.

Sydney-based Okendo has made a splash in this world by building out a popular customer reviews systems for Shopify sellers, but it’s aiming to expand its ambitions and tackle a much bigger problem with its first outside funding — helping brands scale the quality of their first-party data and loosen their reliance on tech advertising kingpins for customer acquisition and engagement.

“Most DTC brands are still very dependent on Big Tech,” CEO Matthew Goodman tells TechCrunch.

Gathering more customer review data directly from consumers has been the first part of the puzzle, with its product that helps brands manage and showcase customer ratings, reviews, user-generated media and product questions. Moving forward Okendo is looking to help firms manage more of the web of cross-channel customer data they have, standardizing it and allowing them to give customers a more personalized experience when they shop with them.

via Okendo

“Merchants have goals and want to better understand their customers,” Goodman says. “As soon as a brand reaches a certain level of scale they’re dealing with unwieldy data.”

Goodman says that Apple’s App Tracking Transparency feature and Google’s pledge to end third-party cookie tracking has pushed some brands to get more serious about scaling their own data sets to insulate themselves from any sudden movements.

The company needs more coin in its coffers to take on the challenge, raising their first bout of funding since launching back in 2018. They’ve raised $5.3 million in seed funding, led by Index Ventures. 2020 was a big growth year for the startup, as e-commerce spending surged and sellers looked more thoughtfully at how they were scaling. The company tripled its ARR during the year and doubled its headcount. The bootstrapped company was profitable at the time of the raise, Goodman says.

Today, the company boasts more than 3,500 DTC brands in the Shopify network as customers, including heavyweights like Netflix, Lego, Skims, Fanjoy and Crunchyroll. The startup is tight-lipped on what their next product launches will look like, but plans to jump into two new areas in the next 12 months, Goodman says.

Dear Sophie: Should we look to Canada to retain international talent?

Sophie Alcorn
Contributor

Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.

Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.


Dear Sophie,

I handle people ops as a consultant at several different tech startups. Many have employees on OPT or STEM OPT who didn’t get selected in this year’s H-1B lottery.

The companies want to retain these individuals, but they’re running out of options. Some companies will try again in next year’s H-1B lottery, even though they face long odds, particularly if the H-1B lottery becomes a wage-based selection process next year.

Others are looking into O-1A visas, but find that many employees don’t yet have the experience to meet the qualifications. Should we look at Canada?

— Specialist in Silicon Valley

Dear Specialist,

That’s what we’re all about — finding creative immigration solutions to help U.S. employers attract and retain international talent and help international talent reach their dreams of living and working in the United States.

I’ve written a lot on how U.S. tech startups can keep their international team members in the United States. One strategy is to help the startup employees become qualified for O-1As. Another is to obtain unlimited H-1B visas without the lottery through nonprofit programs affiliated with universities. Sometimes candidates return to school for master’s degrees that offer a work option called CPT, or curricular practical training.

A composite image of immigration law attorney Sophie Alcorn in front of a background with a TechCrunch logo.

Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window)

But sometimes, companies end up deciding to move some of their international talent to Canada to work remotely. Recently, Marc Pavlopoulos and I discussed how to help U.S. employers and international talent on my podcast. Through his two companies, Syndesus and Path to Canada, Pavlopoulos helps both U.S. tech employers and international tech talent when their employees or they themselves run out of immigration options in the United States. He most often assists U.S. tech employers when their current or prospective employees are not selected in the H-1B lottery.

Through Syndesus, a Canada-based remote employer — also known as a professional employment organization (PEO) — Pavlopoulos helps U.S. employers retain international tech workers who either no longer have visa or green card options that will enable them to remain in the United States or those who were born in India and are fed up by the decades-long wait for a U.S. green card. U.S. employers that don’t have an office in Canada can relocate these workers to Canada with the help of Syndesus, which employs these tech workers on behalf of the U.S. company, sponsoring them for a Canadian Global Talent Stream work visa.

Syndesus also helps U.S. tech startups without a presence in Canada find Canadian tech workers and employ them on the startup’s behalf. As an employer of record, Syndesus handles payroll, HR, healthcare, stock options and any issues related to Canadian employment law.

Pavlopoulos’ other company, Path to Canada, currently focuses on connecting international engineers and other tech talent working in the U.S. — including those whose OPT or STEM OPT has run out — who cannot remain in the U.S. find employment in Canada, either at a Canadian company or at the Canadian office of a U.S. company. These employees get a Global Talent Stream work visa and eventually permanent residence in Canada. Pavlopoulos intends to expand Path to Canada to help tech talent from around the world live and work in Canada.

Clubhouse is now out of beta and open to everyone

One year later, Clubhouse is finally out of beta. The company announced Wednesday that it would end its waitlist and invite system, opening up to everybody. Now, anybody can follow Clubhouse links, hop into a creator’s community or join any public event.

Clubhouse is also introducing a real logo that will look familiar — it’s basically a slightly altered version of the waving emoji the company already used. Clubhouse will still hold onto its app portraits, introducing a new featured icon from the Atlanta music scene to ring in the changes.

“The invite system has been an important part of our early history,” Clubhouse founders Paul Davison and Rohan Seth wrote in a blog announcement. They note that adding users in waves and integrating new users into the app’s community through Town Halls and orientation sessions helped Clubhouse grow at a healthy rate without breaking, “but we’ve always wanted Clubhouse to be open.”

Clubhouse’s trajectory has been wild, even for a hot new social app. The then invite-only platform took off during the pandemic and inspired a wave of voice-based social networking that probably still isn’t anywhere near cresting. Facebook, Twitter, Spotify, Discord and everybody else eventually followed suit, splicing voice chat rooms and voice events into their existing platforms.

Interest in Clubhouse reached a fever-pitch early this year, and the app’s rise is inextricable from the pandemic-imposed social isolation that saw people around the globe desperate for ways to feel connected as the months dragged on.

The world is slowly, unevenly opening up and Clubhouse is gradually changing along with it. After a long iOS-only stretch, the company introduced an Android app in May. Now, Clubhouse says they’ve reached 10 million Clubhouse downloads in the Android app’s first two months. And earlier this month, Clubhouse introduced a text-based chat feature called Backchannel that broadened the singularly voice-centric app’s focus for the first time.

According to new data SensorTower provided to TechCrunch, Clubhouse hit its high point in February at 9.6 million global downloads, up from 2.4 million the month prior. After that, things settled down a bit before perking back up in May when TikTok went live on Android through the Google Play Store. Since May, new Android users have accounted for the lion’s share of the app’s downloads. In June, Clubhouse was installed 7.7 million times across both iOS and Android — an impressive number that’s definitely in conflict with the perception that the app might not have staying power.

Clubhouse’s success is a double-edged sword. The app’s meteoric rise came as a surprise to the team, as meteoric rises often do. The social app is still a wild success by normal metrics in a landscape completely dominated by a handful of large, entrenched platforms, but it can be tricky to maintain healthy momentum after such high highs. Opening up the app to everybody should certainly help.

The real ROI of making your products more accessible

Cat Noone
Contributor

Cat Noone is a product designer, co-founder and CEO of Stark — a startup with a mission to make the world’s software accessible. Her focus is on bringing to life products and technology that maximize access to the world’s latest innovations.

New predictions indicate that tech companies committing to accessibility will reap a total of $10 billion to $16 billion in annual design spending across the U.S. and Canada. The surge in funds reinforces accessibility as not only an ethical priority, but a financial one, too.

Accessibility isn’t, like many believe, kryptonite for profits. It is a moneymaker. One, because making your product accessible adds an additional multitude of people to your potential market. Two, because it actually optimizes your workflow by accounting for more issues beforehand. Three, because it will come back to bite you on the ass with hefty lawsuits and public exposure (read: profit and customer loss) if you ignore it. If anything, remember this: The cost of noncompliance is about three times higher than that of complying.

Today, we’re seeing something similar to what happened with diversity and inclusion: While many businesses used to consider D&I a headache, we’ve since woken up to the fact that having a diversity of genders, ages and ethnicities has a direct effect on the bottom lines of companies. The same realization will come with accessibility.

At its core, accessibility means making your product as usable as possible to the greatest number of people. The appeal and efficiency that entails correlates to higher revenue. So here’s why all businesses can achieve a high ROI from paying attention to accessibility, and how to optimize those returns.

Start by making your teams aware of what they’re missing

Having a training strategy in your business can drive your profits up by nearly 50%. When educating your team about accessibility, you’re not just giving them new skills to raise productivity, you’re optimizing their workflow for the long run and fostering a healthier team culture.

Making your product accessible adds an additional multitude of people to your potential market and optimizes your workflow by accounting for more issues beforehand.

What many teams aren’t understanding today is that accessibility simply opens a product to more users. If we don’t make our employees aware of this, they’ll continue to shy away from the word “accessibility” because they think it means being walled in by some unintelligible regulations. But when we make that process easy to digest for the whole team and create a shared language on accessibility, we make it easier to understand the ultimate goal: smarter design and development.

There are simple ways for businesses to get their heads around accessibility, from IBM’s Equal Access Toolkit to Microsoft’s inclusive design page to the A11Y Project. However, there has been a concerning lack of access to free accessibility resources, which is a key issue that our wider community is trying to change.

Let’s get into the specifics: Through awareness and training, you will start convincing your team about the importance of accessibility so they can commit to it wholeheartedly, not only for the sake of users but because it will improve their own work experience. Working with accessibility in mind makes employees’ work processes more efficient and reduces the cost of errors happening down the line. Moreover, managers will expend fewer resources supervising work to make sure it’s compliant or reworking designs that don’t meet the mark.

Employees will understand the needs of customers far more if they’re made aware of the varied ways different people interact with a product. We’re not talking about a statistically insignificant group: People with disabilities are the largest minority in the United States. One in four U.S. adults suffer from a disability, and globally, we’re talking about 1 billion people — but far more when you account for the many individuals who can’t or won’t go to the doctor or aren’t diagnosed at all. You’ve probably experienced this, too. Temporary disabilities — like having your arm in a cast for a couple of months or recovering from a serious operation — will affect your ability to use certain products if they haven’t been made with you in mind.

Finally, providing this conscious training lets your staff know you are open to having conversations on how to improve work conditions and culture. A happy team is a more resilient team that will stick with you on your product journey, avoiding the costs of recruiting new hires.

Better testing, better efficiency

As your product grows, it becomes less and less malleable. It’s harder to fix the first row of bricks on a new house if you’re already building the second and third stories.

That’s why we need to rethink testing. Continuously trying out your product will tell you what needs tweaking as you advance. The problem is, people with disabilities are being excluded from the testing process. And even when they do appear in data sets, their data are often treated as anomalies because they don’t follow the patterns we’re used to seeing from able-bodied people.

Fixing this starts with how we envision our target market. Do you have people with disabilities — and that includes the invisible ones — in your target user base? As part of your personality profiles? In other words, are you reaching out to and including them, or are they more of a bycatch you don’t expect to see using your product?

Then test for qualitative as well as quantitative input. Get diverse users into the “office,” ask them how they feel about navigating your product. Did it take them time to learn how a certain feature worked? Was something a complete roadblock? We need to understand how they interact with your software as much as the data coming in on retention and time spent per visit.

This has a direct impact on your bottom line. Compliance issues cause a world of pain further on in your journey, when you’re paying hefty fines and rebuilding core elements of your product. Lawsuits against allegedly inaccessible websites are rising, and last year over 2,500 were filed.

With more accurate testing, your processes will become more efficient because you’re understanding where and when in your product lifecycle you need to insert tools and make changes. Essentially, you’ll optimize your workflow. You’ll advance in a straight line as you iterate, rather than having to pause production to go back and make adaptations as and when you realize they’re needed. You’ll launch and get your product into consumers’ hands faster.

Ideally, you’ll be testing within a diverse community that is personally invested in your product’s success — that will give you quicker and more detailed feedback loops.

Create an internal accessibility team

It’s everyone’s job to understand accessibility. However, there will always be people who are specifically focused on ensuring product design, development and marketing initiatives are met.

This group of people should be responsible for upskilling others about accessibility and being the go-to for inclusive design. A company of a few hundred people could assign the task to about 10 people. But at an early-stage startup, it is not enough to just put one or two people on the job. Making accessibility a core part of design and development needs to be baked into the wider culture for everyone involved.

Your long-term returns on assigning a few people to carry out the process accurately will always be higher than the initial expense. Those people will ensure each team is working optimally for all of its users and in sync with one another, rather than wasting valuable time working to lower standards.

It’s better to keep this special team in-house not only to save money but because these are people who already eat, sleep and breathe your product. When bringing in outsiders, whether or not they’re experts, there will always be something of a gap between what they need to know to help and how much you can give as a company. That means any issues that in-house team members aren’t yet aware of, or can’t yet conceptualize, will probably remain unaddressed.

Be smart about how you allocate your budget

You can’t think in the short term when you decide where to put your money. Today’s businesses are designed to steer budgets toward the most tangible and immediate returns. Yet pouring cash into growing fast and furiously, selling quick and cashing in, simply isn’t that simple. Companies won’t buy a product that’s flawed. Brands don’t hold up when there’s little thought going into the product and who’s using it. Consumers won’t fall in love with you.

Strong business leaders will see that there is a time horizon to any investment. Inclusive design is both a cost-saving model and a profit builder, but you won’t see that from one day to the next. You’ll see that when users come to you that you wouldn’t have reached otherwise, and when you avoid the pitfalls that can not only cost, but take down, a company.

So allocate an accessibility budget alongside the product roadmap, from start to finish, taking into account purchasing specialized tools, educating your team and spending time designing your testing strategy, among other things. Set deadlines for accomplishing each goal, and allocate separate resources and timelines per process — it’s better to start with quick wins on newer projects so your team can see and feel the reward, then repeat. You may be spending more at the start as you educate your team, design your testing strategy or purchase specialized tools.

What you don’t want to see in your company is the accessibility conversation, budget and action plan concentrated toward the end of your product development journey. By then, it will be more about fixing what’s wrong than getting it right, at greater cost to you.

Amazon aims to inject new life into Alexa with release of developer tools and features

Amazon is giving its Alexa voice platform a shot in the arm after seeing further declines in skill growth over the past year, indicating lagging interest from third-party voice app developers. At the company’s Alexa Live developer event today, the company announced a slew of new features and tools for the developer community — its largest release of new tools to date, in fact. Among the new releases are those to encourage Alexa device owners to discover and engage with Alexa skills, new tools for making money from skills and other updates that will push customers to again make Alexa more a part of their daily routines.

The retailer’s hopes for Alexa as a voice shopping platform may have not panned out as it had hoped, as only a sliver of Alexa customers actually made Amazon.com purchases through the smart speakers. However, the larger Alexa footprint and developer community remains fairly sizable, Amazon said today, noting there are “millions” of Alexa devices used “billions of times” every week, and over 900,000 registered developers who have published over 130,000 Alexa skills.

Still, Amazon hasn’t yet solved the challenge of helping customers find and discover skills they want to use — something that’s been historically difficult on voice-only devices. That’s improved somewhat with the launch of Alexa devices with screens, like the Alexa Show, which offers a visual component.

But largely, Alexa device owners continue to use its most basic functions — smart home control, playing music, setting alarms and reminders, making lists and other simple queries. It has yet to produce what would be considered, by most, a “runaway hit” voice app. 

Image Credits: Amazon

In an attempt to tackle this problem with more features, Amazon says it will introduce a way for developers to create Widgets for their skills, which customers can then add to their Echo Show or other Alexa device with a screen sometime later this year. Developers will also be able to build Featured Skill Cards to promote their skills in the home screen rotation.

In other words, Amazon’s solution is to make Alexa more like a mobile device in terms of app discovery. While perhaps useful to those who have Alexa devices with screens, that doesn’t bode well for Alexa’s future as a voice-only platform.

Meanwhile, for voice-only devices, developers will now be able to have their skill suggested when Alexa responds to common requests, like “Alexa, tell me a story,” “Alexa, let’s play a game,” or “Alexa, I need a workout,” among others. And Alexa will begin to offer personalized skill suggestions based on customers’ use of similar skills, while new “contextual discovery” mechanisms will allow customers to use natural language and phrases to accomplish tasks across skills. Of course, Amazon has tried other ways of suggesting skills before now, but those impacts have been negligible on the larger skill ecosystem. (Some efforts even annoyed users.)

Amazon also said it’s expanding the ways developers can get paid for their skills.

Already, it offers tools like consumables, paid subscriptions and in-skill purchases. Now, it will add support for Paid Skills, a new in-skill purchase that allows customers to pay a one-time fee to access the content a skill provides. It will also now expand in-skill purchases to India and Canada.

So far, in-skill purchases have yet to drive significant revenue. A 2019 report found that Alexa skill revenue in the first 10 months of the year was only $1.4 million, far short of Amazon’s $5.5 million target. It’s uncertain that one more way to make a purchase will change that trend.

Amazon didn’t speak to how much its developers made, instead saying only that developer revenue from in-skill purchases had “more than doubled” year-over-year.

Amazon will now attempt to leverage the developer community to drive sales on its retail site, too.

With new “Shopping Actions,” developers can sell Amazon products in their skill. For example, a role-playing game could suggest customers buy the tabletop version, as sci-fi game Starfinder does. Developers can also now earn affiliate revenue on their product referrals.

Music and media skill developers will be able to use new tools for more entertaining experiences, like a Song Request Skill that DJs can use to take song requests via Alexa, which iHeartRadio will adopt. Others will shorten the time it takes for Radio, Podcast and Music providers to launch interactive experiences.

Other new features aim to make skills more practical and useful.

Image Credits: Amazon

For example, restaurants will gain access to a Food Skill API that will allow them to create pickup and delivery order experiences. A new “Send to Phone” feature will allow developers to connect their skill with mobile devices, and new event-based triggers and proactive suggestions will enable new experiences — like a skill that reminds users to lock their home when they are leaving. Amazon-owned Whole Foods will use these features for a curbside pickup experience arriving later this year, the company says.

Alexa replenishment support, which allows customers to reorder common household items like laundry detergent or batteries, will also expand to replacement parts to better tie in with other sorts of household and smart home devices. Thermostat makers Carrier and Resideo will use this to replenish air filters and Bissell will use this with its vacuum cleaners.

Meanwhile, safety device makers — like smoke, carbon-monoxide and water leak detectors — will be able to tie into Alexa’s security system, Alexa Guard, to send notifications to mobile devices.

Amazon is also introducing a set of new tools that make creating skills easier for developers, including the ability to use Alexa Entities, which is basically Amazon’s own set of general, Wikipedia-like knowledge. They’ll also gain access to new tools to aid with custom pronunciations, plus the previously U.S.-only Alexa Conversations nature language feature (now in beta in Germany, developer preview in Japan and live all English locales). A longer list of tools focus on regional expansions of existing toolkits (i.e. AVS, ACK), and others that enable better interoperability with smart home devices — like those that allow for unique wake words, among others.

Upgrade launches a credit card with bitcoin rewards

Fintech startup Upgrade is launching a new credit card today. The Upgrade Bitcoin Rewards Card is a classic Visa credit card that works across the Visa network. But you get 1.5% in bitcoin rewards when you make payments.

Upgrade isn’t the first company to announce a credit card with bitcoin rewards — but it’s the first one that is generally available. If your application is approved, you can start using the virtual card immediately.

BlockFi announced its own credit card with bitcoin rewards in December 2020. Gemini followed suit quickly thereafter. But those cards are still not generally available. A couple of weeks ago, BlockFi started inviting people on its waitlist. So a general rollout should come sooner rather than later.

As for the Upgrade Bitcoin Rewards Card, the company offers credit lines from $500 to $25,000 depending on your credit score. It works with Apple Pay and Google Pay. Like other Upgrade credit cards, there are no monthly fees, late fees or returned payment fees.

Image Credits: Upgrade

Essentially, this new card works pretty much like Upgrade’s existing credit card. But instead of getting 1.5% cash back on all purchases, you get 1.5% back in bitcoin — there’s no specific category, no partner retailer, no point system. It’s a straightforward, uncapped cash back program.

While you get rates that range between 8.99% and 29.99%, Upgrade encourages you to combine monthly charges into installment plans that you can pay back over 24 to 60 months. Once you’ve done that, you pay equal monthly payments at a fixed rate.

“Upgrade Card is already delivering over $3 billion in annualized credit to consumers,” co-founder and CEO Renaud Laplanche said in a statement. “Starting today, anyone can apply for an Upgrade Bitcoin Rewards Card and enjoy the same affordable and responsible credit as with any Upgrade Card, plus the potential upside and fun of owning bitcoin.”

The company has partnered with NYDIG for the bitcoin rewards. Right now, you can’t do much with your bitcoins. You can choose to hold them or sell them. There’s no way to transfer your bitcoins to another wallet for instance. If you choose to sell your rewards, there’s a 1.5% transaction fee.

It’s also worth noting that this card isn’t available in all 50 states. Customers in Hawaii, Indiana, Iowa, Louisiana, Nebraska, Nevada, New Hampshire, North Carolina, Washington, West Virginia, Wisconsin and the District of Columbia can’t order a Upgrade Bitcoin Rewards Card at the moment.

Once again, Upgrade is diversifying its portfolio of products as a top-of-the-funnel strategy. By diversifying its credit card offering, it’ll lead to more personal loans down the road.

To be fair, Upgrade encourages you to pay down your debt as you receive your rewards when you make your monthly balance payments. But Upgrade wants to own the customer relationship so that you’ll think about them whenever you need a personal loan.

WhenThen’s no-code payments platform attracts $6M from European VCs Stride and Cavalry

The payments space — amazingly — remains up for grabs for startups. Yes, dear reader, despite the success of Stripe, there seems to be a new payments startup virtually every other day. It’s a mess out there! The accelerated growth of e-commerce due to the pandemic means payments are now a booming space. And here comes another one, with a twist.

WhenThen has built a no-code payment operations platform that, they claim, streamlines the payment processes “of merchants of any kind”.  It says its platform can autonomously orchestrate, monitor, improve and manage all customer payments and payments ops.

The startup’s opportunity has arisen because service providers across different verticals increasingly want to get into open banking and provide their own payment solutions and financial services.

Founded six months ago, WhenThen has now raised $6 million, backed by European VCs Stride and Cavalry.

The founders, Kirk Donohoe, Eamon Doyle and Dave Brown, are three former Mastercard Payment veterans.

Based out of Dublin, CEO Donohoe told me: “We see traditional businesses embracing e-comm, and e-comm merchants now operating multiple business models such as trade supply, marketplace, subscription, and more. There is no platform that makes it easy for such businesses to create and operate multiple payment flows to support multiple business models in one place — that’s where we step in.”

He added: “WhenThen is helping e-commerce digital platforms build advanced payment flows and payment automation, in minutes as opposed to months. When you start to integrate different payment methods, different payment gateways, how you want the payment to move from collection through to payout gets very, very complex. I’ve been doing this for over a decade now, as an entrepreneur building different businesses that had to accept, collect and pay payments.”

He said his founding team “had to build very complex payment flows for large merchants, airlines, hotels, issuers, and we just found it was ridiculous that you have to continue to do the same thing over and over again. So we decided to come up with WhenThen as a better way to be able to help you build those flows in minutes.”

Claude Ritter, managing partner at Cavalry, said: “Basic payment orchestration platforms have been around for some time, focusing mostly on maximizing payment acceptance by optimizing routing. WhenThen provides the first end-to-end payment flow platform to equip businesses with the opportunity to control every stage of the payment flow from payment intent to payout.”

WhenThen supports a wide range of popular payment providers such as Stripe, Braintree, Adyen, Authorize.net, Checkout.com, etc., and a variety of alternative and locally preferred payment methods such as Klarna Affirm, PayPal and BitPay.

“For brave merchants considering global reach and operating multiple business models concurrently, I believe choosing the right payment ops platform will become as important as choosing the right e-commerce platform. Building your entire e-comm experience tightly coupled to a single payment processor is a hard correction to make down the line — you need a payment flow platform like WhenThen”, added Fred Destin, founder of Stride.VC.