Game Pass Ultimate brings Xbox subscriptions together at a discount

Xbox wants the future of the gaming business to lean heavily on subscription services. The company’s Game Pass service has let users download games from a pool of dozens of titles, now Microsoft is trying to make the offer too good to refuse by bundling Xbox Live Gold with the service for $14.99.

Xbox Live Gold offers online play, but the extras included with the subscription like free games and Store discounts represent some of Microsoft’s more aged strategies in getting more revenue per user and building out Xbox loyalists. Game Pass brings users unlimited access to a library of 100+ games that include some console classics.

Live Gold retails for $9.99 per month as does Game Pass so the combo offers a nice discount and will likely be an easy sell to existing Live Gold users who are already ponying up subscription fees to Microsoft.

We’ll hear more about Microsoft’s plans with Game Pass Ultimate at their press conference, which begins soon.


Source: Tech Crunch

Feedback loops and online abuse

I’ve long thought that much of the world can be explained by feedback loops. Why are small companies nimbler than large ones? Why are private companies generally more efficient than governments? Primarily because in each case, the former has a better feedback loop. When faced with a baffling question — such as, “why do online companies do such a terrible job at dealing with abuse?” — it’s often helpful to look at the feedback loops.

Let’s look at the small vs. large and private vs. government comparisons first, as examples. Small companies have extremely tight feedback loops; a single person makes a decision, sees the results, and pivots accordingly, without the need for meetings or cross-division consensus. Larger companies have to deal with other departments, internal politics, red tape, the blessing of multiple vice-presidents, legal analysis, etc., before they can make meaningful changes.

Similarly, if a private company’s initiative isn’t going well, its revenue immediately begins to plummet, a very strong signal that it needs to change its course quickly. If a government initiative isn’t going well, the voters render their verdict … at the next election, mingled with their verdicts on all the other initiatives. In the absence of specific and meaningful external feedback, various proxies exist … but it’s difficult to definitively determine actual signal from noise.

And when a social-media platform, especially an algorithm-driven one, determines what content to amplify — which implicitly means deciding which content to de-amplify — and which content to ban … what is its feedback loop? Revenue is one, of course. Amplifying content which leads to more engagement leads to more revenue. So they do that. Simple, right?

Ahahahahahaha no, as you may have noticed. Anything but simple. Content which is amplified is often bad content. Abuse. False news. Horrifyingly creepy YouTube videos. Etcetera.

Suppose that (many of) the employees of these platforms genuinely wish to deal with and hopefully eliminate these problems. I know that seems like a big supposition, but let’s just imagine it. Then why have they consistently seemed so spectacularly bad at doing so? Is it purely because they are money-grubbing monsters making hay off bullying, vitriol, the corrosion of the social contract, etc.?

Or is it that, because it did not occur to them to try to measure the susceptibility and severity of the effects on their own systems by bad actors, they had to rely on others — journalists, politicians, the public — for a slow, imprecise form of feedback. Such as: “your recommendation algorithm is doing truly terrible things” or “you are amplifying content designed to fragment our culture and society” or “you are consistently letting assholes dogpile-abuse vulnerable people, while suspending the accounts of the wronged,” to name major criticisms most often leveled at Google, Facebook, and Twitter respectively.

But this is a subtle and sluggish feedback loop, one primarily driven by journalists and politicians, who in turn have their own agendas, flaws, and their own feedback loops to which they respond. There is no immediately measurable response like there is with, say, revenue. And so whatever they do in response is subject to that same slow and imprecise feedback.

So when Google finally responds by banning right-wing extremism, but also history teachers, which is clearly an insanely stupid thing to do, is this a transient, one-time, edge-case bug, or a sign that Google’s whole approach is fundamentally flawed and they need to rethink things? Either way, how can we tell? How can they tell?

(Before you object, no, it’s not done purely by algorithms or neural networks. Humans are in the loop — but clearly not enough of them. I mean, look at this channel which YouTube recently banned; it’s clear at first glance, and confirmed by subsequent study, that this is not right-wing extremism. This should not have been a tough call.)

I’ve long been suspicious of what I call “the scientific fallacy” — that if something cannot be measured, it does not exist. But at the same time, in order to construct meaningful feedback loops which allow your system to be guided in the desired direction, you need a meaningful measure for comparisons.

So I put it to you that a fundamental problem (although not the fundamental problem) with tackling the thorny problem of content curation in social media is that we have no way to concretely measure the scale of what we’re talking about when we say “abuse” or “fake news” or “corrupted recommendation algorithms.” Has it gotten better? Has it gotten worse? Your opinion is probably based on, er, your custom-curated social-media feed. That may not be the best source of truth.

Instead of measuring anything, we seem to be relying on Whack-a-Mole in response to viral outrage and/or media reports. That’s still much better than doing nothing at all. But I can’t help but wonder: do the tech platforms have any way of measuring what it is they’re trying to fight? Even if they did, would anyone else believe their measurements? Perhaps what we need is some form of trusted, or even crowdsourced, third-party measure of just how bad things are.

If you would look to make a meaningful difference to these problems — which are admittedly difficult, although, looking back at the banned history teacher’s YouTube channel, perhaps not so difficult as the companies claim — you could come up with a demonstrable, reliable way to measure them. Even an imprecise one would be better than the “outrage Whack-a-Mole” flailing quasi-responses which seem to be underway at the moment.


Source: Tech Crunch

Top voting machine maker reverses position on election security, promises paper ballots

Voting machine maker ES&S has said it “will no longer sell” paperless voting machines as the primary device for casting ballots in a jurisdiction.

ES&S chief executive Tom Burt confirmed the news in an op-ed.

TechCrunch understands the decision was made around the time that four senior Democratic lawmakers demanded to know why ES&S, and two other major voting machine makers, were still selling decade-old machines known to contain security flaws.

Burt’s op-ed said voting machines “must have physical paper records of votes” to prevent mistakes or tampering that could lead to improperly cast votes. Sen. Ron Wyden introduced a bill a year ago that would mandate voter-verified paper ballots for all election machines.

The chief executive also called on Congress to pass legislation mandating a stronger election machine testing program.

Burt’s remarks are a sharp turnaround from the company’s position just a year ago, in which the election systems maker drew ire from the security community for denouncing vulnerabilities found by hackers at the annual Defcon conference.

Security researchers at the conference’s Voting Village found a security flaw in an old but widely used voting machine in dozens of states. Their findings prompted a response by senior lawmakers on the Senate Intelligence Committee, who said that independent testing “is one of the most effective ways to understand and address potential cybersecurity risks.”

But ES&S disagreed. In a letter firing back, Burt said he believed “exposing technology in these kinds of environments makes hacking elections easier, not harder, and we suspect that our adversaries are paying very close attention.”

Days later, NSA cybersecurity chief Rob Joyce criticized the response. “Ignorance of insecurity does not get you security,” he tweeted. “The investigation of these devices by the hacker community is a service, not a threat.”

Although unexpected, election security experts have generally applauded ES&S’ shift in position.

Matt Blaze, a cryptography and computer science professor at the University of Pennsylvania, said in a tweet he was “genuinely glad” the company is calling for paper ballots and mandatory security testing.

“Hopefully they’ll also stop threatening to sue people like me and the Defcon Voting Village when we examine and report on their equipment and software,” he said. Blaze, who co-founded the Voting Village, faced legal pressure from ES&S at the time. The election security experts responded to the “vague and unsupportable threats” by accusing the voting machine maker of “discouraging” researchers from examining its machines “at a time when there is significant concern about the integrity of our election system.”

An ES&S spokesperson did not respond to a request for comment by TechCrunch over the weekend.

Read more:


Source: Tech Crunch

Apple puts accessibility features front and center

Although the meat of Apple’s accessibility news from WWDC has been covered, there still are other items announced that have relevancy to accessibility as well. Here, then, are some thoughts on Apple’s less-headlining announcements that I believe are most interesting from a disability point of view.

Accessibility goes above the fold

One of the tidbits I reported during the week was that Apple moved the Accessibility menu (on iOS 13 and iPadOS) to the top level of the Settings hierarchy. Instead of drilling down to Settings > General > Accessibility, the accessibility settings are now a “top level domain,” in the same list view as Notifications, Screen Time, and so on. Apple also told me this move applies to watchOS 6 as well.

Similarly, Apple said they’ve added accessibility to the first-run “setup buddy” experience. When someone sets up a new iPhone or other device for the first time, the system will prompt them to configure any desired accessibility features such as VoiceOver.

Both changes are long overdue and especially important symbolically. While it may not affect the average user much, if at all, the fact Apple is making this move speaks volumes about how much they care for the accessibility community. By moving Accessibility to the front page in Settings, it gives disabled users (and by extension, accessibility) just a bit more awareness.

As a disabled person myself, this is not insignificant. This change reinforces Apple’s position as the leader in the industry when it comes to making accessibility a first-class citizen; by elevating it to the top level, Apple is sending the message that accessibility is a critical aspect of the operating system, and a critical part of the user experience for so many, myself included.

Handoff for HomePod

I enjoy my HomePod for listening to music, podcasts, and controlling our HomeKit devices. Until now, however, one of the biggest annoyances with HomePod has been the inability to pick up where I left off. If I come home from the supermarket listening to music or a podcast and want to keep going, I have to stop and change the output source to my office’s HomePod. It’s not difficult to do, but from an accessibility perspective it’s a lot of extra taps. I definitely feel that bit of friction, and curse the dance every time I have to go through the rigamarole.

With iOS 13, that friction goes away. All I need to do is place my iPhone XR close to the HomePod (as if I were setting it up) and the iPhone will “hand off” whatever audio is playing to the speaker. Again, changing source is not a huge deal in the grand scheme of things, but as a disabled person I’m attuned to even the slightest inconveniences. Likewise with the ability to hear incoming iMessages read aloud to you on AirPods, these little refinements go a long way in not only having a more enjoyable, more seamless experience—it makes the experience more accessible, too. In this sense, this technology is magical in more ways than one.

The victory of Voice Control

The addition of Voice Control is definitely a headliner, but the backstory to it certainly isn’t.

Everyone I’ve spoken to during the week, whether it be fellow reporters, developers or Apple employees, shared the same sentiment: Voice Control is so great. In fact, the segment of John Gruber’s live episode of his podcast, The Talk Show, where he and special guests Craig Federighi and Greg Joswiak discussed the feature is a perfect example. It totally meshes with what I was told. Federighi explained how he had “friggin’ tears in my eyes” after watching an internal demo from somebody on Apple’s accessibility team.

Similarly, it was a hot topic of conversation at the accessibility get-together at the conference. So many of the engineers and other members of Apple’s accessibility group shared with me how proud they are that Voice Control exists. I’ve heard that its development was a considerable undertaking, and for everyone involved to see it released to the world—in beta for now, at least—is thrilling and affirming of the hard road the team took to get here.

At a high level, Voice Control strikes me as emblematic of Apple’s work in accessibility. Just watch the video:

It feels impossible, magical—but it’s entirely real. And the best part is this is a game-changing feature that will enhance the experience of so many, so immensely. Federighi was not wrong to cry; it’s amazing stuff.


Source: Tech Crunch

Watch Microsoft’s Xbox E3 press conference live

This year’s E3 is already off to an interesting start. Sony’s nowhere to be seen, and Nintendo, per usual, has opted to go online only. That leaves Microsoft as the only member of the big three with its own, honest to goodness press conference.

The company’s got a big opportunity here, and we’re hoping for some big things. On the gaming side, we expect some big news about Gears 5, Halo: Infinite and, perhaps, Age of Empires and a new Fable title.

News about the company’s Stadia competitor, Project xCloud, seems like a distinct possibility. We might even get a glimpse at the gaming giant’s next generation console. More info on all of the rumors from next week’s big show can be found here

The big show kicks off this afternoon at 1PM PT/4PM ET. It’s available on YouTube, Twitch, Facebook and Twitter


Source: Tech Crunch

Former Unity Technology VP files lawsuit alleging CEO sexually harassed her

Unity Technologies, the multibillion-dollar gaming engine, is facing a lawsuit from its former VP of global talent acquisition, Anne Evans, who accuses CEO John Riccitiello of sexual harassment. The sexual harassment allegedly took many forms — ranging from making sexist jokes to propositioning her and other employees for sex, to making references to his erect penis and saying, “I want to fuck you. I want to throw you down on the bed and fuck you.”

Evans was eventually terminated and is now suing for retaliation, wrongful termination, failure to prevent discrimination, among other things. In a note to employees, obtained by TechCrunch, Unity Technologies General Counsel and Chief Legal Officer Ruth Ann Keene notified employees of the litigation and its plans to defend itself. Ann Keene says the allegations are false.

In a statement to TechCrunch, a Unity spokesperson said the allegations are not true and that it intends to “vigorously defend against the false allegations asserted by Anne Evans,” the company said in a statement to TechCrunch.

In the lawsuit, Evans says the workplace “was highly sexualized.” Evans says Riccitiello and other men in management positions “spoke openly about women in a sexual manner, made sexist jokes, and flirted with and pursued sexual relationships with female employees and contractors.”

She goes on to allege in the suit that Riccitiello would make comments about how “the way she walked was ‘sexy’ and how he could not believe she was lesbian.” On another occasion at the private club The Battery, the lawsuit alleges Riccitiello asked Evans to go to his hotel room with him. She said no but later found out Riccitiello had asked two of Evans’ direct reports to join him in his hotel room for a threesome, the lawsuit states.

“Throughout Evans’ tenure at Unity, Riccitiello regularly made comments about all of the women he slept with, their ages, and what sexual acts they liked to perform with him,” the lawsuit states. “Brown [Unity’s chief people officer], often would laugh approvingly about Riccitiello’s tales of sexual conquest and later when they started a relationship (as described below) would talk in explicit detail at work about her and Riccitiello’s sex life.”

There are numerous more details in the suit that describe instances of sexual harassment by Riccitiello. You can read the suit in full here. Throughout this time, however, Evans says Riccitiello warned her not to discuss anything that happened between the two of them.

Earlier this year, Unity released a company-wide survey about culture, the lawsuit states. Evans says Unity’s head of Americas recruiting, Natalie Mulay, wanted to share with her comments people had made about Evans. Evans, however, believed that the results were improperly accessed and reported it to Unity’s head of people.

The company began investigating the unauthorized access and talked with Mulay, the lawsuit alleges. Mulay then allegedly threatened to smear Evans in retaliation, saying said she would accuse Evans of sexual harassment since they “had a very brief consensual sexual relationship in early 2016). Mulay ended up following through and making an official allegation against Evans. Evans was cleared of the charges but investigators found she had accepted gifts in the past from Mulay, which the company said was against its policy. Evans, however, says otherwise and pointed to how Brown had accepted gifts from Riccitiello.

“Unity’s decision to terminate Evans was motivated at least in substantial part by her reporting Mulay and Kerr’s improper accessing of confidential personnel information and/or her rejecting the CEO’s sexual advances and defying his warnings to keep his conduct a secret,” the lawsuit states.

But Unity says that’s not what led to Evans’ termination. Instead, a Unity spokesperson said a third-party investigation found Evans “engaged in serious misconduct and established multiple instances in which she demonstrated a gross lapse in judgment.”

Unity says the company had been working with Evans on the details of her departure when she filed the lawsuit.

“Before and throughout the investigation, Evans had multiple opportunities to share her concerns about her experiences at the company through confidential and objective mechanisms, yet never did,” the Unity spokesperson said. “We take these issues seriously at Unity, just as we did when we learned about concerns involving Evans. We do not tolerate harassment, and we have policies in place to address relationships in the workplace.”

You can see the full email Unity sent to its employees earlier this week below:

I wanted to let you know about a legal case that was filed Wednesday in San Francisco against Unity. The case was filed by Anne Evans, our former Vice President of recruiting. The complaint is filled with false allegations, and we intend to defend against the lawsuit vigorously.

Importantly, several months ago, we conducted a third-party investigation involving Anne’s behavior during her employment. The investigation surfaced facts that she engaged in serious misconduct and established multiple instances in which she demonstrated a gross lapse in judgment and this led to her termination. This was an undesirable outcome for Anne, and we had been working with her on the details of her departure when she filed a public lawsuit that includes false and damaging claims against Unity, its employees and John, in particular.

Before and throughout the investigation, Anne had multiple opportunities to share her concerns about her experiences at the company. As with all of our employees, Anne also had access to a number of objective, confidential resources through which to voice her concerns, including an anonymous reporting mechanism. None of these allegations were brought forth until the filing of this complaint.

We are well prepared for the next steps in this legal matter and also expect it to become public, so I wanted you to know first.  If you have questions or concerns about any of this, please reach out to me.  If anyone from the press contacts you, please refer them to Marisa Graves in PR.

We take these issues seriously at Unity, just as we did when we learned about concerns involving Anne. We don’t tolerate harassment here, and we have policies in place to address relationships in the workplace. These are issues we discuss with all of you so that you know and trust the resources available to you, and we are committed to continuing to do so. As you know, you can also always come directly to me.

Thank you,

Ruth Ann Keene


Source: Tech Crunch

Everyone loves pizza, including VCs

Sometimes a person (I’m not naming names here) tires of staring at startup funding data, and her hungry mind wanders to pizza.

But ordering a pizza in real life isn’t always the best choice for such people/reporters. So instead, we’ll pivot to the next best (not really) thing: Looking at what startup investors are doing vis-à-vis the pizza industry.

Turns out, VCs and growth investors are finding lots of ways to toss money at the space. A query of Crunchbase data rolled out more than 50 companies funded in the past couple of years that mention pizza in their business descriptions. In the chart below, we slice into 10 of the most heavily funded and intriguing pizza-preneurs.

Taken together, what does this assimilation of funding data portend about the future of pizza? We’re not experts in much but consuming the stuff, but nonetheless, a few trends stand out. We outline them below.

Convenience versus quality

Many top-funded startups appear to be tackling what’s long been the Achilles heel of the pizza-industrial complex: The inverse correlation between convenience and quality.

It is a persistent conundrum. You can have pizza right away that costs very little, but it tastes like microwaved cardboard. Or you can pay the going rate and wait for a fresh pie, but that involves…well, paying and waiting.

Of course, there are all manner of variations in-between: the upscale frozen pizza, the merely adequate chain pizza, the quick, greasy slice — the list goes on. Consumers seemingly have no shortage of options. And yet we long for more.

The most heavily funded pizza startups appear to target a similar consumer desire. We want a cheap, fast, custom, fresh pizza that tastes good. MOD Pizza and LeBron James-backed Blaze Pizza are two fast-growing chains with this approach. Both serve fast-cooking thin-crust pies with a wide choice of toppings for a flat price.

Meanwhile, Silicon Valley-based Zume has raised more than $400 million to scale up a model that relies on robot-equipped mobile kitchens to bake fresh pies and deliver them to hungry customers. By cutting the cost of a retail space and automating much of the baking process, Zume is betting it can provide a tasty, fresh pie more cheaply than the competition.

Healthier choices

Most of us do not consume pizza for its health benefits. Nonetheless, there are ways to make pies less fattening, more nutrient-dense or vegan-friendly.

Startups and their backers are on to this. Case in point: Caulipower, an Encino, Calif.-based startup that makes cauliflower-based pizzas and other snacks. The two-year-old company has raised just over $10 million in early-stage funding to date.

For the vegan crowd, there’s Mooliss Vegan Cheese, a startup that sells plant-based mozzarella exclusively to pizzerias and restaurants. The New York company raised $6 million in May to get more people hooked on its coconut oil- and cashew-based cheeses.

Boosting local pizzerias

For those who prefer to patronize a beloved local pizzeria, startups have tackled that angle as well, with tools aimed at making existing pie shops thrive in the digital, on-demand age.

On this front, MyPizza Technologies, best known as the developer of the app Slice, has raised around $16 million in funding to date. Its app helps local pizza shops and their customers submit and fulfill mobile orders and payments.

Another upstart, HotBox, is focused on the hot-delivery side. The Modena, Italy company has developed a delivery box that keeps pizza hot and crunchy for the journey from shop to customer.

Takeaway: we will eat more pizza

Throwing money at the pizza space could be seen as a source of disruption — displacing existing players and supply and delivery chains.

However, the disruption should be contained if something that seems both impossible and inevitable does come to pass: We all eat more pizza.

Personally, I see a strong likelihood for increased consumption, as pizza becomes something to fill more niches. In addition to serving as a greasy, cheesy treat, pizza now also works as a semi-healthy fast casual meal option, a decadent gourmet indulgence or even a vegan snack.

Most of this does not bode well for our waistlines. But it might work out profitably for pizza-preneurs and their backers.


Source: Tech Crunch

Startups Weekly: The Peloton IPO (bull vs. bear)

Hello and welcome back to Startups Weekly, a newsletter published every Saturday that dives into the week’s noteworthy venture capital deals, funds and trends. Before I dive into this week’s topic, let’s catch up a bit. Last week, I wrote about the proliferation of billion-dollar companies. Before that, I noted the uptick in beverage startup rounds. Remember, you can send me tips, suggestions and feedback to kate.clark@techcrunch.com or on Twitter @KateClarkTweets.

Now, time for some quick notes on Peloton’s confirmed initial public offering. The fitness unicorn, which sells a high-tech exercise bike and affiliated subscription to original fitness content, confidentially filed to go public earlier this week. Unfortunately, there’s no S-1 to pore through yet; all I can do for now is speculate a bit about Peloton’s long-term potential.

What I know: 

  • Peloton is profitable. Founder and chief executive John Foley said at one point that he expected 2018 revenues of $700 million, more than double 2017’s revenues of $400 million.
  • There is strong investor demand for Peloton stock. Javier Avolos, vice president at the secondary marketplace Forge, tells TechCrunch’s Darrell Etherington that “investor interest [in Peloton] has been consistently strong from both institutional and retail investors. Our view is that this is a result of perceived strong performance by the company, a clear path to a liquidity event, and historically low availability of supply in the market due to restrictions around selling or transferring shares in the secondary market.”
  • Peloton, despite initially struggling to raise venture capital, has accrued nearly $1 billion in funding to date. Most recently, it raised a $550 million Series F at a $4.25 billion valuation. It’s backed by Tiger Global Management, TCV, Kleiner Perkins and others.

 

A bullish perspective: Peloton, an early player in the fitness tech space, has garnered a cult following since its founding in 2012. There is something to be said about being an early-player in a burgeoning industry — tech-enabled personal fitness equipment, that is — and Peloton has certainly proven its bike to be genre-defining technology. Plus, Peloton is actually profitable and we all know that’s rare for a Silicon Valley company. (Peloton is actually New York-based but you get the idea.)

A bearish perspective: The market for fitness tech is heating up, largely as a result of Peloton’s own success. That means increased competition. Peloton has not proven itself to be a nimble business in the slightest. As Darrell noted in his piece, in its seven years of operation, “Peloton has put out exactly two pieces of hardware, and seems unlikely to ramp that pace. The cost of their equipment makes frequent upgrade cycles unlikely, and there’s a limited field in terms of other hardware types to even consider making. If hardware innovation is your measure for success, Peloton hasn’t really shown that it’s doing enough in this category to fend of legacy players or new entrants.”

TL;DR: Peloton, unlike any other company before it, sits evenly at the intersection of fitness, software, hardware and media. One wonders how Wall Street will value a company so varied. Will Peloton be yet another example of an over-valued venture-backed unicorn that flounders once public? Or will it mature in time to triumphantly navigate the uncertain public company waters? Let me know what you think. And If you want more Peloton deets, read Darrell’s full story: Weighing Peloton’s opportunity and risks ahead of IPO.

Anyways…

Public company corner

In addition to Peloton’s IPO announcement, CrowdStrike boosted its IPO expectations. Aside from those two updates, IPO land was pretty quiet this week. Let’s check in with some recently public businesses instead.

Uber: The ride-hailing giant has let go of two key managers: its chief operating officer and chief marketing officer. All of this comes just a few weeks after it went public. On the brightside, Uber traded above its IPO price for the first time this week. The bump didn’t last long but now that the investment banks behind its IPO are allowed to share their bullish perspective publicly, things may improve. Or not.

Zoom: The video communications business posted its first earnings report this week. As you might have guessed, things are looking great for Zoom. In short, it beat estimates with revenues of $122 million in the last quarter. That’s growth of 109% year-over-year. Not bad Zoom, not bad at all.

Must reads

We cover a lot of startup and big tech news here at TechCrunch. Sometimes, the really great features writers put a lot of time and energy into fall between the cracks. With that said, I just want to take a moment this week to highlight a few of the great stories published on our site recently:

A peek inside Sequoia Capital’s low-flying, wide-reaching scout program by Connie Loizos

On the road to self-driving trucks, Starsky Robotics built a traditional trucking business by Kirsten Korosec

The Stanford connection behind Latin America’s multi-billion dollar startup renaissance by Jon Shieber 

How to calculate your event ROI by Sarah Shewey

Why four security companies just sold for $1.5B by Ron Miller 

Scooters gonna scoot

In case you missed it, Bird is in negotiations to acquire Scoot, a smaller scooter upstart with licenses to operate in the coveted market of San Francisco. Scoot was last valued at around $71 million, having raised about $47 million in equity funding to date from Scout Ventures, Vision Ridge Partners, angel investor Joanne Wilson and more. Bird, of course, is a whole lot larger, valued at $2.3 billion recently.

On top of this deal, there was no shortage of scooter news this week. Bird, for example, unveiled the Bird Cruiser, an electric vehicle that is essentially a blend between a bicycle and a moped. Here’s more on the booming scooter industry.

Startup Capital

WorldRemit raises $175M at a $900M valuation to help users send money to contacts in emerging markets 

Thumbtack is raising up to $120M on a flat valuation

Depop, a shopping app for millennials, bags $62M

Fitness startup Mirror nears $300M valuation with fresh funding

Step raises $22.5M led by Stripe to build no-fee banking services for teens

Possible Finance lands $10.5M to provide kinder short-term loans

Voatz raises $7M for its mobile voting technology

Flexible housing startup raises $2.5M

Legacy, a sperm testing and freezing service, raises $1.5M

Equity

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and I discuss how a future without the SoftBank Vision Fund would look, Peloton’s IPO and data-driven investing.


Source: Tech Crunch

India’s largest video streaming service, owned by Disney, breaks Safari compatibility to fix security flaw

Hotstar, India’s largest video streaming service with more than 300 million users, disabled support for Apple’s Safari web browser on Friday to mitigate a security flaw that allowed unauthorized usage of its platform, two sources familiar with the matter told TechCrunch.

The incident comes at a time when the streaming service — operated by Star India, part of 20th Century Fox that Disney acquired — enjoys peak attention as millions of people watch the ongoing ICC World Cup cricket tournament on its platform.

As users began to complain about not being able to use Hotstar on Safari, the company’s official support account asserted that “technical limitations” on Apple’s part were the bottleneck. “These limitations have been from Safari; there is very little we can do on this,” the account tweeted Friday evening.

Sources at Hotstar told TechCrunch that this was not an accurate description of the event. Instead, company’s engineers had identified a security hole that was being exploited by unauthorized users to access and distribute Hotstar’s content — including the premium catalog.

Hotstar intends to work on patching the flaw soon and then reinstate support for Safari, the sources said.

The security flaw can only be exploited through Safari’s desktop and mobile browsers. On its website, the company recommends users to try Chrome and Firefox, or its mobile apps, to access the service. Hotstar declined to comment.

Hotstar, which rivals Netflix and Amazon Prime Video in India, maintains a strong lead in the local video streaming market (based on number of users and engagement). Last month, it claimed to set a new global record by drawing more than 18 million viewers to a live cricket match.


Source: Tech Crunch

Maker Faire halts operations and lays off all staff

Financial troubles have forced Maker Media, the company behind crafting publication MAKE: magazine as well as the science and art festival Maker Faire, to lay off its entire staff of 22 and pause all operations. TechCrunch was tipped off to Maker Media’s unfortunate situation which was then confirmed by the company’s founder and CEO Dale Dougherty.

For 15 years, MAKE: guided adults and children through step-by-step do-it-yourself crafting and science projects, and it was central to the maker movement. Since 2006, Maker Faire’s 200 owned and licensed events per year in over 40 countries let attendees wander amidst giant, inspiring art and engineering installations.

Maker Media Inc ceased operations this week and let go of all of its employees — about 22 employees” Dougherty tells TechCrunch. “I started this 15 years ago and it’s always been a struggle as a business to make this work. Print publishing is not a great business for anybody, but it works…barely. Events are hard . . . there was a drop off in corporate sponsorship.” Microsoft and Autodesk failed to sponsor this year’s flagship Bay Area Maker Faire.

But Dougherty is still desperately trying to resuscitate the company in some capacity, if only to keep MAKE:’s online archive running and continue allowing third-party organizers to license the Maker Faire name to throw affiliated events. Rather than bankruptcy, Maker Media is working through an alternative Assignment for Benefit of Creditors process.

“We’re trying to keep the servers running” Dougherty tells me. “I hope to be able to get control of the assets of the company and restart it. We’re not necessarily going to do everything we did in the past but I’m committed to keeping the print magazine going and the Maker Faire licensing program.” The fate of those hopes will depend on negotiations with banks and financiers over the next few weeks. For now the sites remain online.

The CEO says staffers understood the challenges facing the company following layoffs in 2016, and then at least 8 more employees being let go in March according to the SF Chronicle. They’ve been paid their owed wages and PTO, but did not receive any severance or two-week notice.

“It started as a venture-backed company but we realized it wasn’t a venture-backed opportunity” Dougherty admits, as his company had raised $10 million from Obvious Ventures, Raine Ventures, and Floodgate. “The company wasn’t that interesting to its investors anymore. It was failing as a business but not as a mission. Should it be a non-profit or something like that? Some of our best successes for instance are in education.”

The situation is especially sad because the public was still enthusiastic about Maker Media’s products  Dougherty said that despite rain, Maker Faire’s big Bay Area event last week met its ticket sales target. 1.45 million people attended its events in 2016. MAKE: magazine had 125,000 paid subscribers and the company had racked up over one million YouTube subscribers. But high production costs in expensive cities and a proliferation of free DIY project content online had strained Maker Media.

“It works for people but it doesn’t necessarily work as a business today, at least under my oversight” Dougherty concluded. For now the company is stuck in limbo.

Regardless of the outcome of revival efforts, Maker Media has helped inspire a generation of engineers and artists, brought families together around crafting, and given shape to a culture of tinkerers. The memory of its events and weekends spent building will live on as inspiration for tomorrow’s inventors.


Source: Tech Crunch