Mobalytics raises $11M and adds eye tracking metrics to its automated gaming coach

Back in 2016, Mobalytics wowed the judges at Disrupt SF with its data-based coach for the exploding competitive gaming world, winning the Startup Battlefield. The company is building on the success of the past few years with a new funding round and a compelling new collaboration with Tobii that uses eye-tracking to provide powerful insights into gamers’ skills.

Mobalytics began with the idea that, by leveraging the in-game data of a competitive e-sport like League of Legends (LoL), they could provide objective feedback to players along the lines of how fast or effective they are in different situations. Quantifying things like survivability or teamplay provides an analogue to similar measures in physical sports.

“On an athlete you have all these measurements, like pulse oximeters, ECGs, the 40-yard dash,” said Amine Issa, co-founder and “Warchief of Science.” Not so much with PC games. Their challenge at that time was to take the LoL API provided by Riot and transform it into actionable feedback, which the company’s success in the years since suggests they managed to do.

But Issa had always wanted to use another, more direct and objective measurement of a gamer’s mental processes: eye tracking. And last year they began an internal project to evaluate doing just that, in partnership with eye-tracking hardware maker Tobii.

“If you know where someone is looking, it’s the closest thing to knowing what they’re thinking,” Issa said. “When you combine that with the larger picture you can put together something to help them along. So we spent six months conducting research, taking players of different levels and roles and studying their eye tracking data to find some metrics we could organize the platform around.”

Not surprisingly, there are characteristics of the highly skilled (and practiced) that set them apart, and the team was able to collect them into a set of characteristics that any player can relate to.

Well, the gif compression isn’t so hot, but you get the idea – the purple square indicates attention. Image Credits: Mobalytics

“We had to think about how to build a product that people want to use. One thing we learned after TechCrunch is that even a simple score from 0-100 doesn’t work for everyone. You need to provide the context for that. So with something like eye tracking, you’re getting 30 data points per second — how do you break that down in a way that players understand it?”

Talking to professional gamers and coaches during the study helped them form the main categories that Mobalytics now tracks with the aid of a Tobii device, like information processing, map awareness, and tunnel vision.

“It’s important to be able to tell a narrative to people. Say you get ganked a lot,” said Issa, referring to the unfortunate occurrence of being picked off by enemy players while alone. “Why are you getting ganked? If your vision score is high but map awareness is low, that’s one thing. Did you know all the information and go in arrogantly, or were you not aware? League is a very complicated game, so players want to know, in this specific fight, what did I do wrong, and what should I have done instead?”

That second question is a tougher one (though perhaps AI MOBA players may have something to say about it), but the metrics are powerful in and of themselves. “Pros are fascinated by this technology,” Issa said. “There’s a lot of ‘I had no idea’ moments. Coaches have said, these are my fastest players but it’s cool to see that as a quantifiable variable.”

A post-game dashboard lets you know your strengths and weaknesses.

Tobii’s head of gaming, Martin Lindgren, echoed this feeling: “Pro teams aren’t interested in being told what to do. They want the data so they can draw their own conclusions.”

Tobii now has a gaming-focused eye-tracker and integrates with a number of AAA games, like Rise of the Tomb Raider, where it can be used in place of fiddly aiming using the analog sticks. As someone who’s bad at specifically that part of games, this is attractive to me, and Lindgren said opportunities like that are only increasing as gaming companies embrace both accessibility and try to stand out in a crowded market.

The companies have worked together to improve the eye-tracking coaching, for instance lowering the number of games a user must play before the system can accurately track their in-game actions; Lindgren said the collaboration with Mobalytics is ongoing — “definitely a long-term partnership” — in fact Tobii’s relationship with the founders predates their startup.

Image Credits: Tobii

The ultimate goal of the Mobalytics is to have a gaming assistant that adapts itself to your playing and preferences, making intelligent suggestions to improve your skills. That’s a ways off, but the company is getting the hang of it. Its first product the LoL assistant, took a year to build, Issa said. A more recent one, for Legends of Runeterra, took three months. Teamfight Tactics took three weeks.

Admittedly it was more difficult to design one for Valorant, which being a first-person shooter is wildly different from the other games — but now that it’s done, a lot of that work could be applied to an assistant for Counter-Strike or Overwatch.

Expansion to other games and genres is the reason for raising an $11M series A, led by Almaz Capital and Cabra VC, with HP Tech Ventures, General Catalyst, GGV Capital, RRE Ventures, Axiomatic and T1 Esports participating.

“It was a very different experience from the post-TechCrunch one, where you’re in the spotlight and everyone’s throwing money your way,” said Issa. “But we’ve built a successful product on LoL, expanded to four games, today we have more than seven million monthly active users… Our plan is to double down on what’s worked for us and create the ultimate gaming companion.”


Source: Tech Crunch

Shelf Engine has a plan to reduce food waste at grocery stores, and $12 million in new cash to see i

For the first few months it was operating, Shelf Engine, the Seattle-based company that optimizes the process of stocking store shelves for supermarkets and groceries, didn’t have a name.

Co-founders Stefan Kalb and Bede Jordan were on a ski trip outside of Salt Lake City about four years ago when they began discussing what, exactly, could be done about the problem of food waste in the US.

Kalb is a serial entrepreneur whose first business was a food distribution company called Molly’s, which was sold to a company called HomeGrown back in 2019.

A graduate of Western Washington University with a degree in actuarial science, Kalb says he started his food company to make a difference in the world. While Molly’s did, indeed, promote healthy eating, the problem that Kalb and Bede, a former Microsoft engineer, are tackling at Shelf Engine may have even more of an impact.

Food waste isn’t just bad for its inefficiency in the face of a massive problem in the US with food insecurity for citizens, it’s also bad for the environment.

Shelf Engine proposes to tackle the problem by providing demand forecasting for perishable food items. The idea is to wring inefficiencies out of the ordering system. Typically about a third of food gets thrown out of the bakery section and other highly perishable goods stocked on store shelves. Shelf Engine guarantees use for the store and any items that remain unsold the company will pay for.

Image: OstapenkoOlena/iStock

Shelf Engine gets information about how much sales a store typically sees for particular items and can then predict how much demand for a particular product there will be. The company makes money off of the arbitrage between how much it pays for goods from vendors and how much it sells to grocers.

It allows groceries to lower the food waste and have a broader variety of products on shelves for customers.

Shelf Engine initially went to market with a product that it was hoping to sell to groceries, but found more traction by becoming a marketplace and perfecting its models on how much of a particular item needs to go on store shelves.

The next item on the agenda for Bede and Kalb is to get insights into secondary sources like imperfect produce resellers or other grocery stores that work as an outlet.

The business model is already showing results at around 400 stores in the Northwest, according to Kalb and it now has another $12 million in financing to go to market.

The funds came from Garry Tan’s Initialized and GGV (and GGV managing director Hans Tung has a seat on the company’s board). Other investors in the company include Foundation Capital, Bain Capital, 1984 and Correlation Ventures .

Kalb said the money from the round will be used to scale up the engineering team and its sales and acquisition process.

The investment in Shelf Engine is part of a wave of new technology applications coming to the grocery store, as Sunny Dhillon, a partner at Signia Ventures, wrote in a piece for TechCrunch’s Extra Crunch.

“Grocery margins will always be razor thin, and the difference between a profitable and unprofitable grocer is often just cents on the dollar,” Dhillon wrote. “Thus, as the adoption of e-grocery becomes more commonplace, retailers must not only optimize their fulfillment operations (e.g, MFCs), but also the logistics of delivery to a customer’s doorstep to ensure speed and quality (e.g., darkstores).”

Beyond Dhillon’s version of a delivery only grocery network with mobile fulfillment centers and dark stores, there’s a lot of room for chains with existing real estate and bespoke shopping options to increase their margins on perishable goods as well.

 


Source: Tech Crunch

Five ways to bring a UX lens to your AI project

As AI and machine-learning tools become more pervasive and accessible, product and engineering teams across all types of organizations are developing innovative, AI-powered products and features. AI is particularly well-suited for pattern recognition, prediction and forecasting, and the personalization of user experience, all of which are common in organizations that deal with data.

A precursor to applying AI is data — lots and lots of it! Large data sets are generally required to train an AI model, and any organization that has large data sets will no doubt face challenges that AI can help solve. Alternatively, data collection may be “phase one” of AI product development if data sets don’t yet exist.

Whatever data sets you’re planning to use, it’s highly likely that people were involved in either the capture of that data or will be engaging with your AI feature in some way. Principles for UX design and data visualization should be an early consideration at data capture, and/or in the presentation of data to users.

1. Consider the user experience early

Understanding how users will engage with your AI product at the start of model development can help to put useful guardrails on your AI project and ensure the team is focused on a shared end goal.

If we take the ‘”Recommended for You” section of a movie streaming service, for example, outlining what the user will see in this feature before kicking off data analysis will allow the team to focus only on model outputs that will add value. So if your user research determined the movie title, image, actors and length will be valuable information for the user to see in the recommendation, the engineering team would have important context when deciding which data sets should train the model. Actor and movie length data seem key to ensuring recommendations are accurate.

The user experience can be broken down into three parts:

  • Before — What is the user trying to achieve? How does the user arrive at this experience? Where do they go? What should they expect?
  • During — What should they see to orient themselves? Is it clear what to do next? How are they guided through errors?
  • After — Did the user achieve their goal? Is there a clear “end” to the experience? What are the follow-up steps (if any)?

Knowing what a user should see before, during and after interacting with your model will ensure the engineering team is training the AI model on accurate data from the start, as well as providing an output that is most useful to users.

2. Be transparent about how you’re using data

Will your users know what is happening to the data you’re collecting from them, and why you need it? Would your users need to read pages of your T&Cs to get a hint? Think about adding the rationale into the product itself. A simple “this data will allow us to recommend better content” could remove friction points from the user experience, and add a layer of transparency to the experience.

When users reach out for support from a counselor at The Trevor Project, we make it clear that the information we ask for before connecting them with a counselor will be used to give them better support.

If your model presents outputs to users, go a step further and explain how your model came to its conclusion. Google’s “Why this ad?” option gives you insight into what drives the search results you see. It also lets you disable ad personalization completely, allowing the user to control how their personal information is used. Explaining how your model works or its level of accuracy can increase trust in your user base, and empower users to decide on their own terms whether to engage with the result. Low accuracy levels could also be used as a prompt to collect additional insights from users to improve your model.

3. Collect user insights on how your model performs

Prompting users to give feedback on their experience allows the Product team to make ongoing improvements to the user experience over time. When thinking about feedback collection, consider how the AI engineering team could benefit from ongoing user feedback, too. Sometimes humans can spot obvious errors that AI wouldn’t, and your user base is made up exclusively of humans!

One example of user feedback collection in action is when Google identifies an email as dangerous, but allows the user to use their own logic to flag the email as “Safe.” This ongoing, manual user correction allows the model to continuously learn what dangerous messaging looks like over time.

Image Credits: Google

If your user base also has the contextual knowledge to explain why the AI is incorrect, this context could be crucial to improving the model. If a user notices an anomaly in the results returned by the AI, think of how you could include a way for the user to easily report the anomaly. What question(s) could you ask a user to garner key insights for the engineering team, and to provide useful signals to improve the model? Engineering teams and UX designers can work together during model development to plan for feedback collection early on and set the model up for ongoing iterative improvement.

4. Evaluate accessibility when collecting user data

Accessibility issues result in skewed data collection, and AI that is trained on exclusionary data sets can create AI bias. For instance, facial recognition algorithms that were trained on a data set consisting mostly of white male faces will perform poorly for anyone who is not white or male. For organizations like The Trevor Project that directly support LGBTQ youth, including considerations for sexual orientation and gender identity are extremely important. Looking for inclusive data sets externally is just as important as ensuring the data you bring to the table, or intend to collect, is inclusive.

When collecting user data, consider the platform your users will leverage to interact with your AI, and how you could make it more accessible. If your platform requires payment, does not meet accessibility guidelines or has a particularly cumbersome user experience, you will receive fewer signals from those who cannot afford the subscription, have accessibility needs or are less tech-savvy.

Every product leader and AI engineer has the ability to ensure marginalized and underrepresented groups in society can access the products they’re building. Understanding who you are unconsciously excluding from your data set is the first step in building more inclusive AI products.

5. Consider how you will measure fairness at the start of model development

Fairness goes hand-in-hand with ensuring your training data is inclusive. Measuring fairness in a model requires you to understand how your model may be less fair in certain use cases. For models using people data, looking at how the model performs across different demographics can be a good start. However, if your data set does not include demographic information, this type of fairness analysis could be impossible.

When designing your model, think about how the output could be skewed by your data, or how it could underserve certain people. Ensure the data sets you use to train, and the data you’re collecting from users, are rich enough to measure fairness. Consider how you will monitor fairness as part of regular model maintenance. Set a fairness threshold, and create a plan for how you would adjust or retrain the model if it becomes less fair over time.

As a new or seasoned technology worker developing AI-powered tools, it’s never too early or too late to consider how your tools are perceived by and impact your users. AI technology has the potential to reach millions of users at scale and can be applied in high-stakes use cases. Considering the user experience holistically — including how the AI output will impact people — is not only best-practice but can be an ethical necessity.


Source: Tech Crunch

NBCU’s Peacock streaming service hits 1.5M app downloads in first 6 days

NBCU’s Peacock appears to be having a somewhat better launch than Quibi did, based on data from app store intelligence firm Sensor Tower. While numbers pointing to new app downloads aren’t a complete picture of consumer adoption for a cross-platform service, they can provide a window into early traction outside of any official numbers provided by the companies themselves.

In Peacock’s case, Sensor Tower says the mobile app has now been downloaded around 1.5 million times across the U.S. App Store and Google Play within its first 6 days on the market.

For comparison, that’s 25% more than the 1.2 million installs Quibi saw during the same period post-launch in the U.S., but only 12% of the 13 million downloads Disney+ generated within its first six days.

Sensor Tower chose not to compare Peacock with HBO Max due to the fact that HBO’s new service replaced the existing HBO Now app, which was already preinstalled on consumer devices. That would not be as apt a comparison.

Peacock, of course, doesn’t have the brand-name recognition of Disney. And arguably, its name doesn’t translate into consumers’ minds as “NBC,” despite its connection to the classic peacock logo. Disney, meanwhile, had a built-in fan base before its streaming service’s launch. And, more broadly, there was pent-up consumer demand for a more family-friendly offering, as well.

Before last week’s launch, Peacock had been available on parent company Comcast’s Xfinity X1 and Flex platforms, but that didn’t include its mobile companion. The mobile app instead officially launched on July 15, and quickly shot up to No. 1 on the iPhone App Store, where it remained through the following day. On iPad, it ranked No. 1 between July 16 and July 18.

Today, the app has since dropped to No. 26 on iPhone (among nongame apps). Meanwhile, on Google Play, it has ranked No. 2 since July 17, and is No. 1 among nongame apps.

Quibi had also seen early traction on the app stores’ top charts shortly after its launch, ranking as high as No. 4 on iPhone on its launch day, April 6. But just over a week later it had rapidly fallen out of the U.S. iPhone app rankings, App Annie’s data indicated, dropping out of the top 50. That saw it coming in behind Netflix, Hulu, Disney+ and Amazon Prime Video.

Peacock hasn’t yet fallen that far, which could be a good signal.

There was also much discussion that Quibi’s failure to gain significant early traction had to do with its lack of support for TV viewing, despite launching in the middle of a pandemic when users were staying at home and watching on their living room big screens.

However, it’s worth pointing out that Peacock hasn’t yet rolled out to the two most widely adopted living room platforms in the U.S.: Amazon Fire TV and Roku. That lends more support to the idea that Quibi hasn’t been struggling to grow because of its mobile-only nature, but because its content wasn’t drawing in viewers.

For what it’s worth, Quibi has disputed recent reports of its slow traction, noting earlier this month its app had gained 5.6 million downloads since launch — more than the 4.5 million Sensor Tower had claimed at the time.

Even if Sensor Tower’s estimates aren’t an exact science, the overall trend its figures paint is one where neither Peacock nor Quibi have become overnight sensations at launch. Of course, the growth trajectory for any Netflix rival is sure to be tough in today’s crowded market. But these companies have made it even more difficult for consumers to connect due to their lack of a recognizable brand name and their failure to offer dedicated apps for top living room devices at launch.


Source: Tech Crunch

Diaspora Ventures wants to invest in French founders with a global mindset

Meet Diaspora Ventures, a new VC fund based in the U.S. founded by two partners who grew up in France but have been in the U.S. for more than a decade — Ilan Abehassera (pictured right) and Carlos Diaz (pictured left). As the name suggests, Diaspora Ventures wants to invest in the French diaspora, and especially French founders who want to create a startup in the U.S. from the early days of their companies.

The fund’s website lays out this investment thesis in just a few sentences. “We are convinced that France is full of talented and ambitious entrepreneurs and is home of some of the best engineers and product designers in the world. We have realized that most of the time, they do not have the opportunity to expand beyond their borders because they don’t have access to the right funding, talent pool, playbooks or network,” the website reads.

Ilan Abehassera has been an entrepreneur for a while. He first founded Producteev, a task-management product that has been acquired by software giant Jive in 2012.

He later launched Ily, a family-friendly communication device. The device looks an awful lot like an Amazon Echo Show, but the device was announced a couple of years before Amazon took over this market. He’w now working on Willo, a robot that could replace your toothbrush

Carlos Diaz co-founded Carlos Diaz, a European digital agency that was acquired by Atos. More recently, he’s been working on The Refiners, a San Francisco-based seed fund that helps international founders get started in Silicon Valley. In March, Diaz was in the process of raising a second fund for The Refiners but couldn’t close the deal.

“The original idea of The Refiners was to identify ambitious European startups willing to move to the U.S. and help them become global leaders in their category. The global pandemic, the economic uncertainty combined with travel restrictions, and the absurd immigration policies of the Trump administration suddenly made the investment thesis of The Refiners impossible to execute four years after its launch,” Diaz wrote in a blog post.

With Diaspora Ventures, Diaz and Abehassera want to differentiate themselves from French VC funds that already invest in the U.S. According to Diaz, working with a French fund in the U.S. requires a lot of back and forth to close a deal. Diaspora Ventures wants to be able to close deals more quickly.

Diaspora Ventures will focus on early stage rounds with an average check between $100,000 and $200,000. The firm wants to participate in 10 to 20 deals per year.

Interestingly, Diaspora Ventures is taking advantage of AngelList’s Rolling Venture Funds. It means that the two partners have raised $3 million from various limited partners, such as Kima Ventures, Breega, Alexis Bonillo, Christophe Courtin, Salomon Aiach, Frédéric Laluyaux and others. But the fund is always raising, so the list will become longer and the total amount of capital raised will grow over time.

That’s how Diaspora Ventures managed to close their first investment deal just a couple of months after coming up with the idea for the new fund.

Both of them have also been active angel investors over the past few years. They have invested in some well-known names, such as Algolia, Sunrise, Tempow, Yolo, Double, Cowboy, etc.

Image Credits: Diaspora Ventures


Source: Tech Crunch

Edtech startups flirt with unicorn-style growth

When Quizlet became a unicorn earlier this year, CEO Matthew Glotzbach said he’d prefer to distance the company from the common nomenclature for a startup valued at or above $1 billion.

“The way Quizlet has gotten to this point is by building and growing a very responsible business,” he said. “It’s the result of the hard work of the team for a decade. We’re much more like a camel.”

It’s clear, though, that the tides might be changing. In edtech, the rich are getting richer. Last week, Mountain View-based Coursera announced it had raised a $130 million Series F round a day after The Information broke a story about Udemy reportedly raising new financing at a $3 billion valuation.

For anyone who has been following my edtech coverage in recent few months, this momentum is hardly surprising. Earlier in the pandemic, MasterClass raised $100 million, Quizlet became a unicorn and Byju’s became India’s second-most-valuable startup.

While edtech’s boom is predictable, the industry is known — to the chagrin of founders and to the benefit of long-time investors — for being conservative. Today we’ll look to understand how a boost in late-stage funding may impact the market on a broader scale.

High-flying camels

Ian Chiu, an investor at Owl Ventures, tells TechCrunch that the rise of big rounds brings a “watershed moment” to the $6 trillion education market. Owl Ventures was founded in 2014 and is one of the biggest edtech-focused firms out there, but Chiu says the recent strong capital flow shows that the sector is finally emerging as a sector other investors are noticing.


Source: Tech Crunch

From farm to phone: A paradigm shift in grocery

In the blink of an eye, millennials, moms and grandparents alike have abandoned the decades-old practice of wandering dusty grocery aisles for the convenient and novel use of online grocery. While Instacart, Amazon Fresh and others have been offering an alternative to brick-and-mortar grocery for years, it is the pandemic that has classified them as essential businesses and more than ever afforded them a clear competitive advantage.

But these past couple months have seen not only drastic changes in consumer behavior, but also fundamental shifts in the business models adopted by grocers worldwide. These shifts are not temporary — indeed, they are here to stay, corona-catalyzed and permanent.

Fulfillment innovation can drive efficiency and cost savings

For the consumer, online grocery generally starts and ends the same way: They place their order on an app or website, and hours later it shows up at their door. But the ways those orders are being fulfilled run the gamut.

The most widely known approach comes from Instacart, which relies on hundreds of thousands of human shoppers fulfilling customers’ online grocery orders by shopping side-by-side with regular brick-and-mortar customers. The model clearly works for Instacart, which is valued at nearly $14 billion after its latest raise.

However, this model is far from ideal. Even pre-COVID, shoppers were known to crowd out regular customers, not to mention introduce high delivery costs and the element of human error to the fulfillment process.

One obvious solution has become the central fulfillment center, or CFC. CFCs are large, standalone warehouses — often serving distinct geographies — that can supply both brick-and-mortar stores and online grocery deliveries. As order volumes rise and consumers demand faster and faster delivery times, innovation has already been infused into the CFC model.

Some grocers, notably Kroger, believe that introducing robotic automation into CFCs via solutions such as Ocado can create economies of scale for fulfillment. These CFCs deploy fulfillment robots, controlled by air-traffic control tech, that run along a grid system and move goods via categorized crates. Kroger is continuing its investment in the model, recently announcing three new Ocado-automated CFCs in the West, Pacific Northwest and Great Lakes regions of the United States. The smallest location is over 150,000 square feet.

While Kroger remains uniquely attached to the CFC model, Albertsons/Safeway, Walmart and many others prefer the microfulfillment center (MFC). MFCs, typically far smaller in size (think ~10,000 square feet), are automated warehouses carved out of the back of existing stores that drive faster fulfillment times in a smaller geographic area, allowing chain stores to use their numerous geographic locations to act as effective fulfillment/delivery hubs for e-grocery coverage.


Source: Tech Crunch

CMU and Facebook AI Research use machine learning to teach robots to navigate by recognizing objects

Carnegie Mellon today showed off new research into the world of robotic navigation. With help from the team at Facebook AI Research (FAIR), the university has designed a semantic navigation that helps robots navigate around by recognizing familiar objects.

The SemExp system, which beat out Samsung to take first place in a recent Habitat ObjectNav Challenge, utilizes machine learning to train the system to recognize objects. That goes beyond simple superficial traits, however. In the example given by CMU, the robot is able to distinguish an end table from a kitchen table, and thus extrapolate in which room it’s located. That should be more straightforward, however, with a fridge, which is both pretty distinct and is largely restricted to a singe room.

“Common sense says that if you’re looking for a refrigerator, you’d better go to the kitchen,” Machine Learning PhD student Devendra S. Chaplot said in a release. “Classical robotic navigation systems, by contrast, explore a space by building a map showing obstacles. The robot eventually gets to where it needs to go, but the route can be circuitous.”

CMU notes that this isn’t the first attempt to apply semantic navigation to robotics, but previous efforts have relied too heavily on having to memorize where objects were in specific areas, rather than tying an object to where it was likely to be.


Source: Tech Crunch

Clover Health expands its coverage to eight states and triples its footprint

Clover Health, the medicare advantage health insurance provider for older Americans, said it will triple its geographic coverage through an expansion to eight states.

The company is adding Mississippi to its roster of states covered under its insurance plans and will expand its footprint in a number of states it already operates within. The company said it would be adding 74 new counties in Arizona, Georgia, Mississippi, New Jersey, Pennsylvania, South Carolina, Tennessee and Texas.

Clover touts its ability to offer care recommendations to physicians and ensure that primary care providers are receiving the latest evidence-based protocols, the company said.

“We knew that if we wanted to successfully bring great healthcare to every senior, including those in traditionally underserved communities, it was essential for us to actively provide value to the system, and we couldn’t play the same games as other insurers who shuffle risk and exploit flaws in the MA program,” says Andrew Toy, president and chief technology officer of Clover Health, in a statement. “Through our unique ability to power two-way conversations with clinicians at the point of care, Clover Assistant gathers and shares the most accurate data on a member’s disease burden, which is critical to developing and validating care plans.”

Clover focuses on rural communities where insurance coverage is sparse.

Individuals eligible for Medicare in these new counties can sign up for Clover’s plans during the Annual Election Period, which runs from October 15 to December 7, with coverage starting on January 1, 2021, the company said.


Source: Tech Crunch

How to approach your IPO stock

Companies like Uber, Lyft, Beyond Meat, Peloton, Slack, Zoom and Pinterest all made public market debuts in 2019, creating wealth and liquidity for many of the 2019 IPO class of founders.

This year, stockholders have seen anxiety-inducing volatility in their holdings, leading many to realize that they need to rethink their approach to their concentrated post-IPO stock position.

In this guide, I’ll walk through a framework of how to think about post-IPO or concentrated stock holdings objectively. While this is written specific to public company stock, many of the same fundamental concepts apply to private stock and the decision whether or not to sell. Some risks should be understood if you are relying on one stock to achieve all of your financial goals since that subjects you to having “too many eggs in one basket.” Many shareholders in the 2019 IPO class have experienced this risk over the last few months and are reevaluating their situations.

Nevertheless, following my advice may be challenging since we all have heard of someone who made it big by swinging for the fences. The key is understanding the true success rate and risks involved with this approach; it is all too common to hear others share their standout victories, while more common failures are rarely mentioned.

What do I do now?

Usually, I advocate for reducing concentrated positions in IPO stock upon lockup expiration, or via scheduled selling for more significant positions; however, for those that have not sold, it is clear that the unexpected macroeconomic downturn has materially increased the volatility of some high-valuation company share prices. If you find yourself in this position here are a few items to consider:

  1. What is your time horizon? Are your investments intended for the long term or the short term?
  2. What are your liquidity needs? Do you need to raise cash to pay for taxes or upcoming expenses? Do you need cash in the upcoming 1-2 years?
  3. What other assets do you have?
  4. How does this impact your financial plan? Can you tolerate possible further declines?

It is not comfortable to be in this position, and decisions at this juncture can be critical in achieving long-term goals. I suggest you find an advisor to talk to if you are unsure what the best choice is. Below we review some considerations that can help build more confidence in your decision.

What’s the plan?

The decision of what to do with your stock should start at a higher level. Where does this stock fit into your investment strategy, and where does your investment strategy fit into achieving your long-term goals?

Your goals should drive your investment strategy, and your investment strategy should drive the decisions regarding your stock, not the other way around. With the proper goals set, you can use the investment portfolio, and the company stock(s) within it, as tools to achieve your goals.

For example, a goal could be to work ten more years, then partially retire and do some consulting. Defining goals helps you make objective decisions on how to best manage concentrated stock positions. There is a trade-off between maximizing the potential return in your investment portfolio, by maximizing risk with concentrated portfolios, and minimizing the risk of a catastrophic loss, by having a well-diversified portfolio. This decision is unique to each individual. The best way to maximize the odds of achieving your goals is different from the best route to maximizing your portfolio’s return possibilities.

FOMO

In these discussions, there is always an immense fear of missing out. What if this stock becomes a multibagger over time? It’s easy to look to the Zuckerbergs and Bezos of the world, who have amassed great wealth through holding concentrated stock, and think that holding a concentrated stock for the long term is the way to go.

There is also no doubt some public stocks have been runaway financial home runs, like investing in Apple or Amazon. If you had invested in those stocks since the beginning, you could have earned a 40,000% or 100,000% return. However, a rational, evidence-based decision process presents a very different picture. A statistical analysis on how IPOs and concentrated portfolios have fared in the past is covered in part two of this three-part series.

Concentration involves risks you may not have considered. In part two, I will walk you through critical considerations when maintaining a high concentration of company stock and things to consider from a big-picture perspective. I also dive into the benefits of diversification, taking it beyond the basics to show you the advantages of having a more balanced portfolio.


Source: Tech Crunch