20 years later, unchecked data collection is part of 9/11’s legacy

Almost every American adult remembers, in vivid detail, where they were the morning of September 11, 2001. I was on the second floor of the West Wing of the White House, at a National Economic Council Staff meeting — and I will never forget the moment the Secret Service agent abruptly entered the room, shouting: “You must leave now. Ladies, take off your high heels and go!”

Just an hour before, as the National Economic Council White House technology adviser, I was briefing the deputy chief of staff on final details of an Oval Office meeting with the president, scheduled for September 13. Finally, we were ready to get the president’s sign-off to send a federal privacy bill to Capitol Hill — effectively a federal version of the California Privacy Rights Act, but stronger. The legislation would put guardrails around citizens’ data — requiring opt-in consent for their information to be shared, governing how their data could be collected and how it would be used.

But that morning, the world changed. We evacuated the White House and the day unfolded with tragedy after tragedy sending shockwaves through our nation and the world. To be in D.C. that day was to witness and personally experience what felt like the entire spectrum of human emotion: grief, solidarity, disbelief, strength, resolve, urgency … hope.

Much has been written about September 11, but I want to spend a moment reflecting on the day after.

When the National Economic Council staff came back into the office on September 12, I will never forget what Larry Lindsey, our boss at the time, told us: “I would understand it if some of you don’t feel comfortable being here. We are all targets. And I won’t appeal to your patriotism or faith. But I will — as we are all economists in this room — appeal to your rational self-interest. If we back away now, others will follow, and who will be there to defend the pillars of our society? We are holding the line here today. Act in a way that will make this country proud. And don’t abandon your commitment to freedom in the name of safety and security.”

There is so much to be proud of about how the country pulled together and how our government responded to the tragic events on September 11. First, however, as a professional in the cybersecurity and data privacy field, I reflect on Larry’s advice, and many of the critical lessons learned in the years that followed — especially when it comes to defending the pillars of our society.

Even though our collective memories of that day still feel fresh, 20 years have passed, and we now understand the vital role that data played in the months leading up to the 9/11 terrorist attacks. But, unfortunately, we failed to connect the dots that could have saved thousands of lives by holding intelligence data too closely in disparate locations. These data silos obscured the patterns that would have been clear if only a framework had been in place to share information securely.

So, we told ourselves, “Never again,” and government officials set out to increase the amount of intelligence they could gather — without thinking through significant consequences for not only our civil liberties but also the security of our data. So, the Patriot Act came into effect, with 20 years of surveillance requests from intelligence and law enforcement agencies crammed into the bill. Having been in the room for the Patriot Act negotiations with the Department of Justice, I can confidently say that, while the intentions may have been understandable — to prevent another terrorist attack and protect our people — the downstream negative consequences were sweeping and undeniable.

Domestic wiretapping and mass surveillance became the norm, chipping away at personal privacy, data security and public trust. This level of surveillance set a dangerous precedent for data privacy, meanwhile yielding marginal results in the fight against terrorism.

Unfortunately, the federal privacy bill that we had hoped to bring to Capitol Hill the very week of 9/11 — the bill that would have solidified individual privacy protections — was mothballed.

Over the subsequent years, it became easier and cheaper to collect and store massive amounts of surveillance data. As a result, tech and cloud giants quickly scaled up and dominated the internet. As more data was collected (both by the public and the private sectors), more and more people gained visibility into individuals’ private data — but no meaningful privacy protections were put in place to accompany that expanded access.

Now, 20 years later, we find ourselves with a glut of unfettered data collection and access, with behemoth tech companies and IoT devices collecting data points on our movements, conversations, friends, families and bodies. Massive and costly data leaks — whether from ransomware or simply misconfiguring a cloud bucket — have become so common that they barely make the front page. As a result, public trust has eroded. While privacy should be a human right, it’s not one that’s being protected — and everyone knows it.

This is evident in the humanitarian crisis we have seen in Afghanistan. Just one example: Tragically, the Taliban have seized U.S. military devices that contain biometric data on Afghan citizens who supported coalition forces — data that would make it easy for the Taliban to identify and track down those individuals and their families. This is a worst-case scenario of sensitive, private data falling into the wrong hands, and we did not do enough to protect it.

This is unacceptable. Twenty years later, we are once again telling ourselves, “Never again.” 9/11 should have been a reckoning of how we manage, share and safeguard intelligence data, but we still have not gotten it right. And in both cases — in 2001 and 2021 — the way we manage data has a life-or-death impact.

This is not to say we aren’t making progress: The White House and U.S. Department of Defense have turned a spotlight on cybersecurity and Zero Trust data protection this year, with an executive order to spur action toward fortifying federal data systems. The good news is that we have the technology we need to safeguard this sensitive data while still making it shareable. In addition, we can put contingency plans in place to prevent data that falls into the wrong hands. But, unfortunately, we just aren’t moving fast enough — and the slower we solve this problem of secure data management, the more innocent lives will be lost along the way.

Looking ahead to the next 20 years, we have an opportunity to rebuild trust and transform the way we manage data privacy. First and foremost, we have to put some guardrails in place. We need a privacy framework that gives individuals autonomy over their own data by default.

This, of course, means that public- and private-sector organizations have to do the technical, behind-the-scenes work to make this data ownership and control possible, tying identity to data and granting ownership back to the individual. This is not a quick or simple fix, but it’s achievable — and necessary — to protect our people, whether U.S. citizens, residents or allies worldwide.

To accelerate the adoption of such data protection, we need an ecosystem of free, accessible and open source solutions that are interoperable and flexible. By layering data protection and privacy in with existing processes and solutions, government entities can securely collect and aggregate data in a way that reveals the big picture without compromising individuals’ privacy. We have these capabilities today, and now is the time to leverage them.

Because the truth is, with the sheer volume of data that’s being gathered and stored, there are far more opportunities for American data to fall into the wrong hands. The devices seized by the Taliban are just a tiny fraction of the data that’s currently at stake. As we’ve seen so far this year, nation-state cyberattacks are escalating. This threat to human life is not going away.

Larry’s words from September 12, 2001, still resonate: If we back away now, who will be there to defend the pillars of our society? It’s up to us — public- and private-sector technology leaders — to protect and defend the privacy of our people without compromising their freedoms.

It’s not too late for us to rebuild public trust, starting with data. But, 20 years from now, will we look back on this decade as a turning point in protecting and upholding individuals’ right to privacy, or will we still be saying, “Never again,” again and again?


Source: Tech Crunch

Tesla should say something

Last weekend, a reader wrote to this editor, politely asking why tech companies should speak up about the abortion law that Texas passed last week.

“What does American Airlines have to do with abortion?” said the reader, suggesting that companies can’t possibly cater to both pro-abortion and anti-abortion advocates and that asking them to take a stand on an issue unrelated to their business would only contribute to the politicization of America.

It’s a widely held point of view, and the decision yesterday by the U.S. Department of Justice to challenge the law, which U.S. Attorney General Merrick Garland has called “clearly unconstitutional,” may well reinforce it. After all, if anyone should be pushing back against what happened in the Lone Star State, it should be other legislators, not companies, right?

Still, there are more reasons than not for tech companies – and particularly Tesla – to step out of the shadows and bat down this law.

It’s a fact that abortion restrictions lead to higher healthcare costs for employers, but one consequence of the Texas law that could hit tech companies especially hard is its impact on hiring. According to a study by the social enterprise Rhia Ventures, 60% of women say they would be discouraged from taking a job in a state that has tried to restrict access to abortion, and the same is true for a slight majority of men, the study found.

Texas’s abortion law also creates an extra-judicial enforcement mechanism that should alarm tech companies. The new law allows private citizens — anywhere — to sue not just abortion providers but anyone who wittingly or unwittingly helps a woman obtain an abortion in the state, whether they have a connection to the case or not. More, there are significant financial awards should a plaintiff win: each defendant is subject to paying $10,000, as well as subject to covering the costs and plaintiff’s attorney’s fees.

Just imagine if this precedent were applied to an issue that directly involves tech companies, such as consumer privacy. As Seth Chandler, a law professor at the University of Houston Law Center, observed to ABC this week. “[The] recipe that SB 8 has developed is not restricted to abortion. It can be used for any constitutional rights that people don’t like.”

Tech companies might well say that taking sides on the Texas abortion debate would be the political equivalent of jumping on a live wire, and it’s easy to sympathize with this viewpoint. Even though Pew Research reports that about 6 in 10 Americans say abortion should be legal in all or most cases, passions are heated on both sides.

Still, corporations have safely stood up for their values on controversial issues before, and they’ve shown that corporate pressure works. In a 2016, for example, a group of roughly 70 major corporations, including Apple, Cisco, and, yes, American Airlines, joined a legal effort to block a North Carolina law that banned transgender people from using public bathrooms consistent with their gender identity, arguing the law condoned “invidious discrimination” and would damage their ability to recruit a diverse workforce. By 2017, facing severe economic consequences, the ban was rescinded.

A handful of CEOs, including from Lyft, Uber, Yelp, and Bumble have already taken very public positions against the new Texas law. Salesforce meanwhile told employees in a Slack message on Friday that if they and their families are now concerned about the ability to access reproductive care, the company will help them relocate.

A company like Tesla could have an even bigger impact on the state’s politics. Elon Musk’s move to Texas ignited a firestorm of interest in the Texas tech scene, and Texas Governor Greg Abbott was so cognizant of Musk’s influence that he said Musk supported his state’s “social policies” the day after the new law was passed.

Musk — whose many financial interests in Texas include plans to build a new city called Starbase and to become a local electricity provider — has so far refused to take a stand on the law. When asked about the issue, he responded, “In general, I believe government should rarely impose its will upon the people, and, when doing so, should aspire to maximize their cumulative happiness.” He also added that he would “prefer to stay out of politics.”

That could prove a mistake as lawmakers and executives in at least seven states, including Florida and South Dakota, closely review Texas’s new law and consider similar statutes.

In May 2019, nearly 200 CEOs, including Twitter’s Jack Dorsey and Peter Grauer of Bloomberg, signed a full-page New York Times ad declaring that abortion bans are bad for business. “Restricting access to comprehensive reproductive care, including abortion,” the ad read, “threatens the health, independence and economic stability of our employees and customers.”

If Musk believes government should “rarely impose its will upon the people,” he should also take a public stand in Texas while the federal government fights what could be a protracted, uphill battle. He has little to lose in doing so — and much to gain.


Source: Tech Crunch

Gillmor Gang: Life Goes On

When we imagine what it will be like when we exit the pandemic, what we’re really wondering is what we want from the digital transformation we’ve seen overturn our understanding of work and living safely. As much as we long for the days of the office and collaboration with our peers, some of that is about the mental space we achieve from the constant disruption of home life. Parenting has shifted from an arms-length affair to a therapeutic maintenance of burnout, over-saturation of news, and anxiety — and that’s just us. Our kids in many ways have already made the digital transition we are all now forced to endure.

They don’t see work from home as a choice because they’ve already defined it as how things work. The shift from meetings to asynchronous threads (texting only, please) has put work into a kind of binge streaming model. You don’t go to the movies — you check in to the situation the characters find themselves grappling with. Conversations overlap in group chats, solving existing problems while foreshadowing the next set. Overriding themes like what am I going to do in life and who are my real friends joust for interaction time.

Voice calls are fundamentally transactional. Video (FaceTime) is used for pitches and demos. And the flow is in both directions. Our kids want reassurance, a sense that wiser heads will prevail as we learn the rules of the new society. Parents want reassurance too, that they will be able to balance the competing needs of kids, grandparents, and the constant pressure of a notification grid filled with breaking news. Interruptions in this new environment are the single biggest cost of loss of focus and diminished productivity.

Turning off notifications often creates more problems than it solves. You trade protection from the immediate crisis for reduced ability to respond to a broader one. Answers to the next question prove more effective. The permissions and posting privileges of a messaging layer guide the information flow, bubble to the top, and anticipate the aggregate value of the channel in follows and subscriptions. The patterns of social metadata — @mentions, retweets, private messages, likes— can be separated from the content to prioritize the distribution of threads.

The appeal of the creator economy and its emerging suite of tools for disrupting traditional media is moving from personal to professional. Mom and pop businesses can project sophisticated services to evangelize, market, and fund growth of their products. The same contours of notification personalization become the valuable data streaming juggernauts like Netflix hoard to run their production and publishing businesses.

On this edition of the Gang, Frank Radice sees parallels to the television industry grappling with digital for the first time.

That’s exactly about the same time that NBC decided that they needed to get into digital. And we had this gigantic meeting in California with all the executives in one huge room with the doors closed and nobody was allowed to have their phone on them so that we could talk about what digital was going to be and what it was going to do and how we were going to use it and what we were going to make of it. And in the end, everybody walked out of there saying, you know, we don’t understand anything about this, but I’ll tell you, we know we need to be there. And I think a lot of it started that way.

The problem with transforming industries is that the collapsing business models are a habit that’s hard to quit. As Michael Markman remembers:

My friend Hardie Tankersley [colleague in the early days at Apple] predicted this a decade ago when he was working for Fox. And they said, ‘Yeah, we all know that. Just don’t bother us now. We’re still making money.’

This is the lesson the record companies learned the hard way, by waiting too long to absorb the Napster threat. Are newsletters and live streaming the tip of the spear to do the same to the media companies?

Michael adds a note of caution:

Zuckerberg did his own version of this. He’s using AR to give you the feeling you’re sitting in a room at a conference table with a bunch of other people. And I’m remembering back to my old time working for corporations. That was the worst part of work, sitting in a room at a conference table with other people.

As the Beatles say, la-la-la-la life goes on.

the latest Gillmor Gang Newsletter

__________________

The Gillmor Gang — Frank Radice, Michael Markman, Keith Teare, Denis Pombriant, Brent Leary and Steve Gillmor. Recorded live Friday, August 20, 2021.

Produced and directed by Tina Chase Gillmor @tinagillmor

@fradice, @mickeleh, @denispombriant, @kteare, @brentleary, @stevegillmor, @gillmorgang

Subscribe to the new Gillmor Gang Newsletter and join the backchannel here on Telegram.

The Gillmor Gang on Facebook … and here’s our sister show G3 on Facebook.


Source: Tech Crunch

Is India’s BNPL 2.0 set to disrupt B2B?

Both as a term and as a financial product, “buy now, pay later” has become mainstream in the past few years. BNPL has evolved to assume various forms today, from small-ticket offerings by fintechs on consumer checkout platforms and marketplaces, to closed-loop products offered on marketplaces such as Amazon Pay Later (which they are now extending for outside use as well). You can also see some variants offered by companies that want to expand the scope of consumption and consumer credit.

Globally, BNPL has seen the most growth in the consumer segment and has driven retail consumption and lending over the past few years. Consumer BNPL offerings are a good alternative to credit cards, especially for people who do not have a credit history and can’t get credit from banks. That said, a specific vertical of BNPL products is gaining traction — one targeted toward small and medium enterprises (SMEs). This new vertical is known as “SME BNPL.”

BNPL can be particularly useful when flow-based underwriting or transaction-based underwriting is used to offer credit to small businesses.

B2B commerce in India is moving online

E-commerce has seen tremendous growth in India over the past decade. Skyrocketing smartphone and internet penetration led to rapid growth in e-commerce across large cities and smaller towns alike. Consumer credit has also taken off in parallel as credit cards and digital lending spurred credit-based consumption across offline and online stores.

However, the large B2B supply chain enabling the burgeoning retail market was plagued by bottlenecks and inefficiencies because it involved a plethora of intermediaries and streamlining became a big problem. A number of tech players responded by organizing the previously disorganized B2B commerce market at various touch points, inserting convenience, pricing and easier product access through tech-enabled logistics and a modern supply chain.

Online B2B and B2C penetration in India in 2019

Image Credits: Redseer

India’s B2B e-commerce space has developed rapidly since 2020. Small businesses have moved from using paper to smartphone apps for running a significant part of their day-to-day business, leading to widespread disruption in how businesses transact today. The COVID-19 pandemic also forced small businesses, which were earlier using physical means to procure goods and services, to try new and online models to conduct their affairs.

Graph depicting growth of India's B2B retail market

Image Credits: Redseer

Moreover, the Indian government’s widespread promotion of an instant payments system in the form of the Unified Payments Interface (UPI) has changed how people send money to each other or pay merchants for their goods and services. The next step for solving the digital B2B puzzle is to embed credit inside every transaction and invoice.

Investments in online B2B in india 2016-19

Image Credits: Redseer

If we compare online B2B transactions to the offline world, there is only one missing link: The terms offered to small businesses by their supplier/distributor or vendor. Businesses, unlike consumers, must buy goods and services to eventually trade them, or add value and sell to consumers or others down the value chain. This process is not immediate and has a certain time cycle attached.

The longer sales cycle means many small businesses require credit payment terms when buying inventory. As B2B commerce scales and grows through digital means, a BNPL product that caters to the needs of SMEs can support their growth and alleviate the burden on their cash flows.

How does consumer BNPL differ from SME BNPL?

An SME BNPL product is a purchase financing product for small businesses transacting with suppliers, distributors, aggregator platforms or B2B marketplaces.


Source: Tech Crunch

Extra Crunch roundup: China’s new data privacy law, fractional farming, debt vs. equity

China’s first data privacy laws go into effect on November 1, 2021. Will your company be in compliance?

Modeled after the EU’s GDPR, the new regulations “[introduce] perhaps the most stringent set of requirements and protections for data privacy in the world,” writes Scott W. Pink, special counsel in O’Melveny’s Data Security & Privacy practice.

In a comprehensive overview, he explains its key requirements and compliance steps for U.S.-based firms that service Chinese consumers.

“American firms doing business in China or with companies inside China will need to immediately start assessing how this new law will impact their activities,” he advises.


Now that the world has embraced remote work, are visas as critical for startup founders who want to succeed in the United States?

On Tuesday, September 14, at 2 p.m PT/5 p.m. ET, Managing Editor Danny Crichton and immigration law attorney Sophie Alcorn will discuss the matter on Twitter Spaces.

They’ll take questions from the audience, so mark your calendar and follow @techcrunch on Twitter to get a reminder before the chat.

Thanks very much for reading Extra Crunch; I hope you have a great weekend.

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

Fintech is transforming the world’s oldest asset class: Farmland

Minnesota soybean field during early morning sunrise

Image Credits: hauged (opens in a new window) / Getty Images

Whether or not he actually said it, “buy land, they ain’t making any more of it,” is one of Mark Twain’s best quotes on capitalism.

Past recessions and the ongoing pandemic have created real uncertainty about the future of commercial and residential real estate, but farmland is “historically stable,” says Artem Milinchuk, founder and CEO of FarmTogether.

Anatomy of a SPAC: Inside Better.com’s ambitious plans

Speech bubble with home

Image Credits: mikroman6 (opens in a new window) / Getty Images

Online mortgage company Better.com isn’t waiting to complete its SPAC merger before making big moves: Ryan Lawler reported that it purchased Property Partners, a U.K.-based startup that offers fractional property ownership.

It’s the second company Better bought in recent months: In July, it snapped up digital mortgage brokerage Trussle.

“We aren’t so easily categorized,” said Better CEO Vishal Garg, who told Ryan that the company plans to soon expand into traditional financial services like auto loans and insurance.

Said CFO Kevin Ryan, “a lot of people have their niches in the way they’re attacking this, but we feel like we’re on a path to being full stack where everything’s embedded in the same flow.”

5 factors that can make or break a startup’s growth journey

Rusty old keys isolated on a white background.

Image Credits: JoKMedia (opens in a new window) / Getty Images

If you don’t have a good story to share, it doesn’t matter how big your marketing budget is.

“Paid marketing can be a useful tool in your toolkit to accelerate an already humming flywheel. Just don’t let it be the only one,” suggests Brian Rothenberg, a two-time founder who’s now a partner at Defy.

Drawing from his time as VP of growth for Eventbrite, he shares five critical factors for kick-starting, maintaining and measuring growth over the long term.

Debt versus equity: When do non-traditional funding strategies make sense?

A close up of a woman's hands, one holding an apple the other hand holding a doughnut

Image Credits: Peter Dazeley (opens in a new window) / Getty Images

Many potential founders are well-versed in startup economics — and many are completely green.

When it comes to raising funds, understanding the relative benefits (and limitations) of debt and equity financing is required knowledge, however.

Founders who are less willing to dilute their control may be willing to use debt financing to fund their capital expenditures, “but it doesn’t make sense for everyone,” says six-time entrepreneur David Friend.

Investors are doubling down on Southeast Asia’s digital economy

Image Credits: Getty Images

Last year, startups based in Southeast Asia raised more than $8.2 billion, a 4x increase from 2015.

In the first half of 2021, regional M&A has increased 83% to a record $124.8 billion.

It’s not just venture capitalists and Big Tech who are beefing up their presence in the region.

“Over 229 family offices have been registered in Singapore since 2020, with total assets under management of an estimated $20 billion,” writes Amit Anand, a founding partner of Jungle Ventures.

Edtech leans into the creator economy with cohort-based classes

Image Credits: Bryce Durbin / TechCrunch

Natasha Mascarenhas examined the parallels between edtech and the creator economy, both of which boomed amid the pandemic — and blurred amid the rise of cohort-based classes.

“Edtech and the creator economy certainly differ in the problems they try to solve: Finding a VR solution to make online STEM classes more realistic is a different nut to crack than streamlining all of a creator’s different monetization strategies into one platform. Still, the two sectors have found common ground in the past year.”

Meet retail’s new sustainability strategy: Personalization

photo of a fitting room with a three-way mirror and a rack of dresses

Image Credits: Liyao Xie (opens in a new window) / Getty Images

Were the shoes, jacket and makeup that looked so good on Instagram (and in your shopping cart) disappointing when you put them on for the first time?

Due to buyer’s remorse, it’s not uncommon for apparel or beauty products to languish in the back of a drawer or end up as gifts, but there are also serious consequences.

“The beauty industry produces over 120 billion units of packaging every year, little of which is recycled. Globally, an estimated 92 million tons of textile waste ends up in landfills,” Sindhya Valloppillil, founder and CEO of Skin Dossier, notes in a guest column.

The answer to bringing sustainability to the industry, she says, is using tech to personalize the retail experience:

  • AR virtual try-on with shade matching
  • Advanced virtual fitting rooms with VR/AR for fashion
  • Smart packaging with IoT and distributed ledger technology

Plentywaka founder Onyeka Akumah on African startups and global expansion

Illustration of Onyeka Akumah of Plentywaka

Image Credits: Bryce Durbin / TechCrunch

Twenty million people live in Lagos, Nigeria, and each day, 14 million of them use the city’s transit system.

Travelers rely on overcrowded public buses that navigate congested routes: What should be a 30-minute trip is often a three-hour journey, but Treepz CEO and co-founder Onyeka Akumah “has big plans to ameliorate the public transport infrastructure in Africa and beyond,” writes Rebecca Bellan.

“We wanted to give people a better way to commute with predictability, where they can know when the bus will get here, the certainty that they will have a seat in a vehicle, that it’s a decent vehicle and a safe one where you can bring your laptop,” said Akumah.

“Those are the things we said we wanted to change.”

Dear Sophie: When can I apply for my US work permit?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

My husband just accepted a job in Silicon Valley. His new employer will be sponsoring him for an E-3 visa.

I would like to continue working after we move to the United States. I understand I can get a work permit with the E-3 visa for spouses.

How soon can I apply for my U.S. work permit?

— Adaptive Aussie


Source: Tech Crunch

Quizlet plans for IPO over a year after hitting unicorn status

Quizlet, a flashcard tool turned artificial intelligence-powered tutoring platform, is planning an initial public offering nearly a year after it was valued at $1 billion. According to people familiar with the matter, Quizlet is considerably far along in the process to go public. A recent job filing shows that it is hiring for senior roles to “help build the financial systems and processes as we move towards an IPO.”

In an email to TechCrunch, the San Francisco-based edtech startup declined to comment. Quizlet hasn’t said much about its revenue specifics or if it’s profitable. Last year, the still-private startup claimed it was growing revenue 100% annually. On its website, Quizlet says that it has 60 million monthly learners, up 10 million learners compared to its 2018 totals.

Quizlet has built a large-scale business around simple to share and simple to use products. Its free flashcard maker helps students spin up study guides on topics to prepare for exams. Those insights fuel Quizlet Plus, the startup’s subscription product that charges $47.88 a year for access to more features, including tutoring services.

Quizlet’s tutoring arm, also known as Quizlet Learn, is the company’s most popular offering, per CEO Matthew Glotzbach. As a student goes through the system, Quizlet Learn consistently assesses students to see where they are making mistakes — and where they are making progress.

“It obviously doesn’t yet replace and can’t come anywhere close to replacing a human, but it can provide that guidance and point you in the right direction and help you spend your time in the right places,” he said. “Just even helping you set goals is such a critical step in learning.”

Most recently, Quizlet announced the launch of explanations, a feature that offers a step-by-step solution guide for problem sets from popular textbooks. The feature is “written and verified by experts” and is aimed to help “students better understand the reasoning and thought process behind study questions so they can practice and apply their learnings on their own,” it said in a statement. It also reclaimed the Q from its less fortunate predecessor, amid an entire rebrand.

Quizlet’s quiet march toward the public markets has been slow yet steady. The startup was founded in 2005 by a 15-year-old, Andrew Sutherland. It was fully bootstrapped until 2015. Glotzbach, who was previously an executive at YouTube, then joined in 2016. The startup still doesn’t appear to have a CFO, which is rare for companies that are going public.

Quizlet has raised a majority of its $62 million in venture capital under Glotzbach. Now, investors in the company include General Atlantic, Owl Ventures, Union Square Ventures, Costanoa Ventures and Altos Ventures.

Quizlet’s pursuit of the public markets comes as other edtech companies are proving the market’s reception to the sector. Duolingo, for example, is another consumer-focused education company, albeit one that focuses on one vertical versus Quizlet’s choice to stay broad. Duolingo went public in July, and is currently trading above its open price at $169.75 per share.

 


Source: Tech Crunch

Advanced rider assistance systems: Tech spawned by the politics of micromobility

The desire to achieve something as simple as keeping shared electric scooters off sidewalks has driven the development of some advanced technology in the micromobility industry. Once the province of geofencing, scooter companies are so eager to get a leg up on the competition that they’re now implementing technology similar to advanced driver assistance systems (ADAS) usually found in cars.

Operators like Spin, Voi, Zipp, Bird and Superpedestrian are investing in camera-based or location-based tech that can detect and even correct poor rider behavior, sometimes going to the extent of slowing scooters to a stop if they’re riding on a sidewalk.

People riding or parking scooters on sidewalks is a big problem for cities and forms one of the main complaints from NIMBYist residents who dislike change all the more when it becomes a tripping hazard. Companies are trying to solve this problem with tech that effectively puts the onus of rider behavior on operators, which may result in cities requiring scooter operators to have this sort of ADAS tech.

Scooter ADAS is probably the most doable and cost-effective method that cities can use to prevent unwanted rider behavior. And, it’s far cheaper than trying to police rider behavior themselves, or, address the lack of protected cycling infrastructure.

“This technology comes from a need for protected bike lanes,” said Dmitry Shevelenko, co-founder and president of Tortoise, an automated vehicle positioning service for micromobility companies. “It exists in this world where riders kind of have to do things that aren’t that great for others, because they have nowhere else to go. And so that’s the true driver of the need for this.”

Cities can solve this problem for the long term by building bike lanes or creating scooter parking bays, but until that happens, operators need to reassure local administrations that micromobility is safe, compliant and a good thing for cities.

“Until cities have dedicated infrastructure for whatever new modality comes to play, you have to figure out a way to use technology to make sure things don’t mix poorly,” said Alex Nesic, co-founder and chief business officer of Drover AI, a computer vision startup that provides camera-based scooter ADAS. “That’s really what we’re after. We want to enable this kind of maturation of the industry.”

Street views versus satellite views

Drover AI works with Spin, while Luna, another computer vision company, works with Voi and Zipp to attach cameras, sensors and a microprocessor to scooters to detect lanes, sidewalks, pedestrians and other environmental surroundings.


Source: Tech Crunch

DataRobot CEO Dan Wright coming to TC Sessions: SaaS to discuss role of data in machine learning

Just about every company is sitting on vast amounts of data, which they can use to their advantage if they can just learn how to harness it. Data is actually the fuel for machine learning models, and with the proper tools, businesses can learn to process this data and build models to help them compete in a rapidly changing marketplace, to react more quickly to shifting customer requirements and to find insights faster than any human ever possibly could.

Boston-based DataRobot, a late-stage startup that has built a platform to help companies navigate the machine learning model lifecycle, has been raising money by the bushel over the last several years, including $206 million in September 2019 and another $300 million in July. DataRobot CEO Dan Wright will be joining us on a panel to discuss the role of data in business at TC Sessions: SaaS on October 27th.

The company covers the gamut of the machine learning lifecycle, including preparing data, operationalizing it and finally building APIs to make it useful for the organization as it attempts to build a soup-to-nuts platform. DataRobot’s broad platform approach has appealed to investors.

As we wrote at the time of the $206 million round:

The company has been catching the attention of these investors by offering a machine learning platform aimed at analysts, developers and data scientists to help build predictive models much more quickly than it typically takes using traditional methodologies. Once built, the company provides a way to deliver the model in the form of an API, simplifying deployment.

DataRobot has raised a total of $1 billion on $6.3 billion post valuation, according to PitchBook data, and it’s been putting that money to work to add to its platform of services. Most recently the company acquired Algorithmia, which helps manage machine learning models.

As the pandemic has pushed more business online, companies are always looking for an edge, and one way to achieve that is by taking advantage of AI and machine learning. Wright will be joined on the data panel by Monte Carlo co-founder and CEO Barr Moses and AgentSync co-founder and CTO Jenn Knight to discuss the growing role of data in business operations

In addition to our discussion with Wright, the conference will also include Microsoft’s Jared Spataro, Amplitude’s Olivia Rose, as well as investors Kobie Fuller and Laela Sturdy, among others. We hope you’ll join us. It’s going to be a thought-provoking lineup.

Buy your pass now to save up to $100. We can’t wait to see you in October!

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Source: Tech Crunch

Google and India’s Jio delay their smartphone launch

The JioPhone Next, the much-awaited smartphone designed by Google and India’s Jio Platforms to tap hundreds of millions of users in the world’s second largest internet market, won’t launch on Friday, the Indian technology giant said Thursday midnight.

In a statement issued just now, Jio Platforms said it has been testing the smartphone with a “limited set of users for further refinement” and is “actively working to make it available more widely” around the time of Diwali festival, which is scheduled for early November.

The Indian firm, which operates the largest telecom network with over 400 million subscribers, blamed global semiconductor shortages for the launch delay and said it expects the additional two months “will” mitigate that.

The JioPhone Next smartphone, unveiled in June this year, was scheduled to launch on Friday. Neither of the firms had given any indication in recent days that they may have to postpone the launch. “The companies remain committed to their vision of opening up new possibilities for millions of Indians, especially those who will experience the internet for the very first time,” the Indian firm said in a press statement.

Mukesh Ambani, India’s richest man and the chairman of Reliance Industries, which operates Jio Platforms, unveiling JioPhone Next at an event in June this year Image Credits: Jio Platforms

Powered by “extremely optimized Android” mobile operating system, the JioPhone Next phone is marketed to be an “ultra-affordable 4G smartphone” to tap the roughly 300 million users in India who are still on slower networks. The two firms have said that they plan to eventually launch the smartphone in other markets as well.

At an event in June, the two firms said the JioPhone Next will feature a “fast, high-quality camera” which will support HDR, and will be protected by the latest Android releases and security updates. It will also ship with a range of features, including Read Aloud and Translate Now that will work with any text on the phone screen, including web pages, apps, messages and even photos, the two firms have said.

Analysts have said in recent weeks that the JioPhone Next — whose price and tech specifications are yet to be revealed — could disrupt the Indian smartphone market — the world’s second largest — and help the telecom network further solidify its dominance in the country.

“At present, there are 430 million smartphone users, 115 million JioPhone users [Jio’s “smart” featurephone] and 320 million featurephone (2G) users in India. We believe smartphone users with devices priced above $100 are unlikely to opt for a sub $100 device,” analysts at Jefferies wrote in a report to clients this week. “That leaves 25% of smartphone users, i.e. 105 million smartphones, 115 million JioPhone users and 320 million featurephone users as the addressable market for JioPhone Next. Assuming replacement cycle of 2 years for smartphones and 3 years for JioPhone/featurephones, the addressable market for JioPhone Next could be 200m devices annually.”

The smartphone is the latest collaboration between the two firms. Last year, Google invested $4.5 billion in Jio Platforms and that’s where it first announced the plans to develop cheap smartphones with the Indian telecom operator. Facebook and scores of other firms have also bought stakes in the Indian firm. Jio Platforms operates a number of businesses including telecom giant Jio Infocomm, which competes with Airtel and Vodafone Idea; and e-commerce firm JioMart, which competes with Tata-owned BigBasket, SoftBank-backed Grofers, and Amazon and Walmart’s Flipkart.


Source: Tech Crunch

Investors are doubling down on Southeast Asia’s digital economy

Southeast Asian tech companies are drawing the attention of investors around the world. In 2020, startups in the region raised over $8.2 billion, about four times more than they did in 2015. This trend continued in 2021, with regional M&A hitting a record high of $124.8 billion in the first half of 2021, up 83% from a year earlier.

This begs the question: Who exactly is investing in Southeast Asia?

Let’s explore the three key types of investors pouring money into and driving the growth of Southeast Asia’s tech ecosystem.

Over 229 family offices have been registered in Singapore since 2020, with total assets under management of an estimated $20 billion.

Big tech

Southeast Asia has become an attractive market for U.S. and Chinese tech firms. Internet penetration here stands at 70%, higher than the global average, and digital adoption in the region remains nascent — it wasn’t until the pandemic that adoption of digital services such as e-wallets and online shopping took off.

China’s tech giants Tencent and Alibaba were among the first to support early e-commerce growth in Southeast Asia with investments in Sea Limited and Lazada, and have since expanded their footprint into other internet verticals. Alibaba has backed Akulaku, M-Pay (eMonkey), DANA, Wave Money and Mynt (GCash), while Tencent has invested in Voyager Innovations (PayMaya), SHAREit, iflix, Ookbee and Sanook.

U.S. tech firms have also recently entered the scene. In June 2020, Gojek closed a $3 billion Series F round from Google, Facebook, Tencent and Visa. Google, together with Singapore’s Temasek Holdings, invested some $350 million in Tokopedia in October. Meanwhile, Microsoft invested an undisclosed amount in Grab in 2018 and has invested $100 million in Indonesian e-commerce firm Bukalapak.

Venture capitalists

In Q1 2021, Southeast Asian startups raised $6 billion, according to DealStreetAsia, positioning 2021 as another record year for VC investment in the region.

The region is also rising in prominence as a destination for investment capital relative to the rest of Asia. Regional VC investment grew 5.2 times to $8.2 billion in 2020 from $1.6 billion in 2015, as we can see in the table below.

Venture capital investment by region 2015-2020

Image Credits: Jungle VC

Southeast Asia also has many opportunities for VC investment relative to its market size. From 2015 to 2020, China saw VC investment of nearly $300 per person; for Southeast Asia — despite a recent investment boom — this metric sits at just $47.50 per person, or just a sixth of that in China. This implies a substantial opportunity for investments to develop the region’s digital economy.

The region’s rising population and growth prospects are higher due to China’s population growth challenges, alongside the latter’s higher digital economy market saturation and maturity.


Source: Tech Crunch