Month: July 2018

09 Jul 2018

The Great British Hack-Off summer festival hackathon will aim at Brexit

It’s very hard to know what the effects of Brexit are “on the ground”. Local news no longer has much of a business model to concentrate on specific subjects or campaigns. Social media is a mess of local facebook groups which only locals can see. MPs often ignore email / online campaigns from constituents.

The Great British Hack-Off aims to address this. In a 2-day intensive, overnight “hackathon” on the weekend of July 21-22 it aims to get a groundswell of interest in helping to improve local communities and economies and connect people with their decision makers.

It will be held by Tech For UK (Twitter, Hashtag:#GBhackoff, Instagram,
Facebook) the tech industry body calling for a meaningful people’s vote on Brexit, with the option to Remain, and anti-Brexit group Best For Britain .

Anyone interested can apply to attend the event via this form.

The Great British Hack-Off will ask a number of questions and try to build products to address the answers.

Are local community projects, some formerly funded by the EU, still going? Are they being replaced? What about local factories, businesses? What about health Services? Are local or central governments stepping in to help, or are people’s concerns being ignored? Is European and other foreign investment ebbing away from local communities or is it being replaced? Are local news sources sharing what is going on?

What are the human stories? How can social media and video be used to tell those stories best?

The Great British Hack-Off will be a festival of tech and creativity to address these issues.

Tech For UK says the ultimate goal will be to engage the tech community to help Best for Britain connect people in local communities to the information they need on Brexit and, in turn, connect them to their decision makers and MPs. Attendees to the Hackathon will also be able to work on their own projects and ideas related to Brexit.

Tech For UK says this will be the first event in a series, to be continued at other cities around the UK, not just in London.

Structured like a “Hackathon” it will be held at a central London venue, bringing together engineers, designers, storytellers, marketers, data scientists, designers, artists, journalists / PR / media people, analytics experts and social media influencers to work on these problems.

Participants will be selected from applications and given full instructions about the event.

They say there will be capacity for 120 people and the opportunity to stay over-night at the hackathon. Food and beverages will be provided.

09 Jul 2018

Index Ventures closes 2 funds, $1B for growth rounds and $650M for early-stage investing

Make way for more money into the startup investing pool. Today, Index Ventures announced that it has closed a total of $1.65 billion in new funds — $1 billion that it plans to invest in later-stage, growth rounds, and $650 million that it plans to put into earlier rounds for smaller startups.

The venture fund is Index’s ninth; the growth round is its fourth since it was founded in 1996.

The funding is significant for a couple of reasons. Index is one of Europe’s (and America’s) more prominent venture capital firms, backing recent hits like AdyenDropboxiZettle, and Zuora (all of which have now either gone public or, in the case of iZettle, been acquired), so its backing has become something of a signal for companies to watch (similar to a number of others, it should be noted), as well as setting a pace for investing choices (including who is doing the investing).

The funding is also notable because of the size of the funds. Index has raised $7.25 billion over the years, using that money to seed and grow hundreds of startups, and helping to fuel — alongside the growth of the internet and technologies like mobile — what has become a veritable tech boom over the last couple of decades. 

But even within that longer trend, more recent years have seen an even bigger infusion of venture funding into the tech ecosystem, with outsized backers like Softbank bringing together syndicates of tech titans to bring in tens (and even hundreds) of billions of dollars into the mix.

The strong returns that the very biggest startups deliver — the world’s most valuable companies today are dominated by tech names — has led to even more money pouring into the sector. This latest $1.65 billion from Index is a leap on its previous growth and venture fund close: in 2016 it raised $1.25 billion ($550 million for venture and $700 million for growth), which at the time seemed huge and now seems almost modest.

“The reason why it’s a larger amoung is because companies are raising more money earlier. There is more capital, [but also] the opportunities are larger,” said Martin Mignot, and investing partner with Index, in an interview with TechCrunch. “Startups are going after larger sectors and a greater percentage of the GDP, and we believe that the size of outcome will get larger.”

“Operating thousands of scooters would not have been thought of as a venture-backed opportunity in the past,” added Mike Volpi, another investing partner at Index, in reference to Index’s investment in the scooter startup Bird. “It is now.”

“We are still in the very early innings of this,” Mignot said of the wave of transportation startups.

This is also leading to a big shift in how startups are evolving. The most highly capitalised are staying private for longer, because private money is much easier to come by than it was before: this means large growth rounds, more secondaries for investors to get their returns, and longer cycles before “exits.” In that vein, it’s notable that Index has raised $1 billion for growth investments.

But while some VCs are now looking at strategies specifically around secondary sales, this will not be a route Index plans to take.

“There might be a sliver of secondary, but not much. We have no plans to do a secondary fund,” said Volpi. “That is not our focus at this point, nor for the foreseeable future.”

Index says that the growth money in this fund will be going to some of the biggest names in its stable already, which includes the likes of AuroraBirdDeliverooElasticFarfetchRobinhoodRevolut and Slack. (Another way to look at this: if you didn’t already know about the startups in this list raising more money… you do now.) Some of that it seems will also involve helping its portfolio companies work more closely with others in the Index network and sphere of influence.

On Slack, for example, Volpi notes, “One of Slack’s key growth areas is Europe, and so we’re doing a number of things outside of traditional funding to help with those advances.”

Index now has 21 people on its investment team, but with only one woman among its nine investing partners — Sarah Cannon.

“It’s a valid problem that many firms are trying to address,” Volpi said of lack of females at the top of Index’s pyramid. He said Index’s approach is to add more women at all levels. “Seven out of our last 12 hires have been women,” he said. “The pace of hiring means we will not change overnight, but we’re happy with the progress and eventually will see us shift to 50-50, as it should be.”

09 Jul 2018

China’s largest music streaming business is planning a US IPO

Fresh from Spotify’s unique direct listing in the U.S., another huge streaming service is about to follow suit and go public in America.

Tencent Music Entertainment (TME) has nothing like the global profile of Spotify, but China’s top streaming service is heading for the U.S. public markets according to a filing made this weekend by parent company Tencent, the $500 billion Chinese internet giant which plans to spin the music business out.

At this point, specific financial details around the listing aren’t being released, but past reports have suggested that it could raise as much as $1 billion and give TME a valuation of $30 billion. That would be quite a jump from its most recent $12 billion valuation and certainly not guaranteed given that others from China, including Xiaomi, has fallen short of ambitious IPO valuation targets.

But there’s precedent here since Tencent made a similar move last year when it broke off China Literature, its digital books business unit, and listed it in Hong Kong with some success. Hong Kong had also been mooted as a destination for TME, but the Tencent filing stated the firm’s intention to “spin-off by way of a separate listing… on a recognized stock exchange in the United States.”

While it seems unlikely that Tencent will follow Spotify and adopt a direct listing — which ditches with the conventional process of an IPO price and engaging banks — it may well call on its rival for pointers since they are both mutual investors.

The duo announced an equity swap deal in December that could see them team up on business in the future. At the time it was certainly a sign that both sides were getting into shape to go public, and TME’s IPO would wrap that up.

09 Jul 2018

EQT acquires B2B payment transfer business Banking Circle from Saxo Bank for $300M

Remittances and the process of transferring money between people and organizations continues to be a huge business — worth some $613 billion globally, according to the latest figures from the World Bank. Now one of the bigger players in the world of B2B payments is itself changing hands. EQT — the investment and private equity firm — is buying Banking Circle from its previous majority owner Denmark’s Saxo Bank. A Banking Circle spokesperson told TechCrunch that the deal is valued at 2 billion Danish kroner, or $300 million.

Banking Circle’s co-founders and co-CEOs, Anders la Cour and Laust Bertelsen, will stay on and keep leading the company. EQT said that it plans to invest in the business to expand its product offerings and also help it move into more geographies. For now it will stay focused on B2B although it has also some sights on extending to consumer by way of its clients (in other words, B2B2C).

Banking Circle currently processes about €60 billion in payments annually for its clients, which include banks, card entities, and payment gateways that choose. It also has partnerships with a number of them and other banks to provide direct clearing access, making the payments faster and cheaper.

La Cour told TechCrunch that Banking Circle was essentially started under the wing of Saxo “because it’s very hard to build this without the help of a major partner.” Similarly, now that it has grown, it’s time to grow under a different structure with less ties to a single bank. “We see this as the right partner at the right time,” he said.

Banking Circle, he said, is ‘close to profitability’ Ebitda-wise. “We’ll keep investing heavily over the next couple of years.”

EQT says it plans to invest more in the company itself, but it’s also going to be leveraging its holdings in other businesses, as well as its own platform that includes “deep TMT sector expertise, local presence and EQT’s global network of Industrial Advisors,” it said.

“We are excited to partner with EQT,” said the co-CEOs in a joint statement. “With their support, we will be ideally positioned to continue innovating to serve our customers even better and continue our rapid growth.”

Saxo Bank’s payments division will also continue working with Banking Circle under its new owner.

“We are proud of Saxo Payments Banking Circle’s development and growth. As investor and incubator, we have supported the company with our core competencies in foreign exchange as well as developing and managing global fintech solutions,” said Kim Fournais, founder and CEO of Saxo Bank, in a statement. “It is not an easy task to build fintech solutions that create value and are long-term sustainable, but the company has done what few succeed in.”

EQT is a prolific investor in tech startups, as well as an acquirer of them. Just last week, its private equity division EQT Partners picked up the commercial Linux distributor Suse from Micro Focus for $2.5 billion. EQT Ventures, which is also partly financing this deal, describes itself as “half VC, half startup” and aims to put in more than just money to the companies that it backs or acquires.

In the case of Banking Circle, the company is tapping into a huge market that spans developed and emerging markets, as well as individuals and businesses, and taps into new tech innovations to speed up the process, make it less costly and more easy to do, and overall disrupt those who have traditionally been the gatekeepers for remittances — the Western Unions and large banks of the world.

It’s not the only one trying to do so, of course: the focus on using new digital rails for payments, and instruments like mobile phones and the internet to facilitate money transfers means that a number of startups have entered the fray. Some of the biggest that started out initially working with individuals, such as TransferWise, are now also building up substantial B2B businesses, too. This is one reason why EQT, with an eye on smaller startups, saw an opportunity to invest in, and supercharge, Banking Circle.

“We have followed Banking Circle for several years and are impressed by the company’s management team and unique innovation capabilities,” says Mads Ditlevsen, Responsible Deal Partner and Partner at EQT Partners, Investment Advisor to the majority owner EQT VIII. “Saxo Bank and Banking Circle’s management team have built an innovative, secure, and highly automated platform to make competitive, faster, and more transparent payments across borders. EQT is looking forward to supporting Banking Circle and the management team on their continued growth journey and in building a leading global payments infrastructure player.”

“We’re excited to partner with the entrepreneurs behind Banking Circle and support them in building the next generation infrastructure for cross-border payments,” says Hjalmar Winbladh, partner at EQT Partners who has a prolific record as a founder himself, having started VoIP company Rebtel, the picture messaging pioneer SendIt that was eventually acquired by Microsoft, and the social shopping and rewards app Wrapp. “Cross-border payments is a large and rapidly growing market dominated by traditional players. Banking Circle has built a disruptive solution with a strong value proposition. The customer feedback is excellent and the company’s traction is evident looking at the triple digit growth of the business.”

The deal is expected to close in Q4.

09 Jul 2018

China’s Xiaomi makes underwhelming public debut in Hong Kong IPO

China’s Xiaomi, the world’s fifth biggest seller of smartphones, made an underwhelming public debut after it hit the Hong Kong Stock Exchange amid concerns around an ongoing trade war between the U.S. and China.

Media reports in the lead up to today’s bell ringing suggested that eight-year-old Xiaomi was shooting for a valuation of as much as $100 billion. In the end, it had to settle for a more modest $54 billion valuation as it raised $4.7 billion from the IPO.

CEO Lei Jun acknowledged that “global capital markets are in constant flux” thanks to tensions between Beijing and the White House, which has seen trade tariffs levied on each side. However, Lei — one of China’s most successful technology entrepreneurs — said that the situation doesn’t diminish his belief in his business.

“Although the macroeconomic conditions are far from ideal, we believe a great company can still rise to the challenge and distinguish itself,” he said in a speech at the listing ceremony.

Xiaomi enjoyed an understated debut. The stock opened at HK$16.60, below the list price of HK$17, and it quickly fell to HK$16 before later recovering. Its closing share price for the first day of trading was HK$16.78.

Data via Hong Kong Stock Exchange

Aside from global market concerns, investors are said to have been unsure of Xiaomi’s ecosystem story. The company pitches itself as going beyond devices to offer internet services, such as video streaming, although it has yet to see significant revenue in the services category.

Prior to listing, Xiaomi pledged to keep its gross margin to just five percent to ensure that its products are well priced for consumers, but that requires the company to find other ways to monetize and that’s where the services play is aimed. Xiaomi also offers a long-tail of products developed by third parties, such as tech like smart speakers and non-tech items that include bags and pens, which it sells directly to its consumer base using its e-commerce sites and ‘Mi’ brand.

Finally, another core push is its international expansion plan.

China continues to account for the bulk of its revenue, although that is dropping. For 2017 sales, China represented 72 percent, but it had been 94 percent and 87 percent in 2015 and 2016, respectively. One market it has made significant progress in is India, where it was recently ranked the top smartphone seller thanks to a strong brand.

However, it’s unclear how the firm has performed in other markets in Asia and whether it can succeed in Europe, where it has made a push in recent months. The U.S. market is another key challenge that Xiaomi has yet to find a solution for, despite Lei Jun and other executives claiming it’ll enter the country before the end of next year.

You can read more about the Xiaomi business and IPO plan in our review below:

Note: The original version of this article was updated to correct Xiaomi’s valuation and target valuation.

09 Jul 2018

Crypto and venture’s biggest names are backing a new distributed ledger project called Oasis Labs

A team of top security researchers from the University of California, Berkeley and MIT have come together to launch a new cryptographic project that combines secure software and hardware to enable privacy-preserving smart contracts under the banner of Oasis Labs.

That vision, which is being marketed as the baby of a union between Ethereum and Amazon Web Services, has managed to attract $45 million in pre-sale financing from some of the biggest names in venture capital and cryptocurrency investing.

The chief architect of the project (and chief executive of Oasis Labs) is University of Berkeley Professor Dawn Song, a security expert who first came to prominence in 2009 when she was named one of as one of MIT Technology Review’s Innovators under 35. Song’s rise in the security world was capped with both a MacArthur Fellowship and a Guggenheim Award for her work on security technologies. But it’s the more recent work that she’s been doing around hardware and software development in conjunction with other Berkeley researchers like her postdoctoral associate, Raymond Cheng, that grabbed investors attention.

Through the Keystone enclave hardware project, Song and Cheng worked with MIT researchers and professors like Srini Devadas and Ilia Lebedev on technology to secure sensitive data on the platform.

“We use a combination of trusted hardware and cryptographic techniques (such as secure multiparty computation) to enable smart contracts to compute over this encrypted data, without revealing anything about the underlying data. This is like doing computation inside a black box, which only outputs the computation result without showing what’s inside the black box,” Song wrote to me in an email. “In addition to supporting existing trusted hardware implementations, we are also working on a fully open source trusted hardware enclave implementation; a project we call Keystone. We also have years of experience building differential privacy tools, which are now being used in production at Uber for their data privacy initiatives. We plan to incorporate such techniques into our smart contract platform to further provide privacy and protect the computation output from leaking sensitive information about inputs.”

Song says that her project has solved the scaling problem by separating execution from consensus.

For each smart contract execution, we randomly select a subset of the computation nodes to form a computation committee, using a proof of stake mechanism. The computation committee executes the smart contract transaction,” Song wrote in an email exchange with TechCrunch. “The consensus committee then verifies the correctness of the computation results from the computation committee. We use different mathematical and cryptographic methods to enable efficient verification of the correctness of the computation results. Once the verification succeeds, the state transition is committed to the distributed ledger by the consensus committee.”

By having the computation committee working in parallel with the consensus committee only needing to verify the correctness of the computation creates an easier path to scalability.

Other platforms have attempted to use sampling to speed up transactions over distributed systems (Hedera Hashgraph comes to mind), but have been met with limited adoption in the market.

“We use proof-of-stake mechanisms to elect instances of different types of functional committees: compute, storage and consensus committees,” Song explained. “We can scale each of the different functions independently based on workload and system needs. One of our observations of existing systems is that consensus operations are very expensive. our network protocol design allows compute committees and storage committees to process transactions without relying on heavy-weight consensus protocols.”

Song’s approach has managed to gain the support of firms including: a16zcrypto, Accel, Binance, DCVC (Data Collective), Electric Capital, Foundation Capital, Metastable, Pantera, Polychain, and more.

In all, some 75 investors have rallied to finance the company’s approach to securing data and selling compute power on a cryptographically secured ledger.

“It’s exciting to see talented people like Dawn and her team working on ways to transition the internet away from data silos and towards a world with more responsible ways to share and own your data,” said Fred Ehrsam, co-founder of Coinbase and Oasis Labs investor, in a statement.

“The next step is getting our product in the hands of developers who align with our mission and can help inform the evolution of the platform as they build applications upon it,” said Oasis Labs co-founder and CTO Raymond Cheng in a statement.

For potential customers who’d eventually use the smart contracts developed on Oasis’ platform the system would work much like the method established by Ethereum.

“The token usage model in Oasis is very similar to Ethereum, where users pay gas fee to miners for executing smart contracts,” Song wrote. “One just needs one token to pay for gas fee for executing smart contracts. As with Ethereum, in our platform storage and compute have different pricing models but they both are paid with the same token.”

And Oasis’ leadership is looking ahead to a marketplace that incentivizes scale and makes fees accessible. “If the token price goes up, the amount of tokens needed to pay for operations can decrease (this is similar to Ethereum’s gas price, which is independent from the price of Ether). The number of tokens needed to pay for smart contract execution is not fixed.”

09 Jul 2018

Crypto and venture’s biggest names are backing a new distributed ledger project called Oasis Labs

A team of top security researchers from the University of California, Berkeley and MIT have come together to launch a new cryptographic project that combines secure software and hardware to enable privacy-preserving smart contracts under the banner of Oasis Labs.

That vision, which is being marketed as the baby of a union between Ethereum and Amazon Web Services, has managed to attract $45 million in pre-sale financing from some of the biggest names in venture capital and cryptocurrency investing.

The chief architect of the project (and chief executive of Oasis Labs) is University of Berkeley Professor Dawn Song, a security expert who first came to prominence in 2009 when she was named one of as one of MIT Technology Review’s Innovators under 35. Song’s rise in the security world was capped with both a MacArthur Fellowship and a Guggenheim Award for her work on security technologies. But it’s the more recent work that she’s been doing around hardware and software development in conjunction with other Berkeley researchers like her postdoctoral associate, Raymond Cheng, that grabbed investors attention.

Through the Keystone enclave hardware project, Song and Cheng worked with MIT researchers and professors like Srini Devadas and Ilia Lebedev on technology to secure sensitive data on the platform.

“We use a combination of trusted hardware and cryptographic techniques (such as secure multiparty computation) to enable smart contracts to compute over this encrypted data, without revealing anything about the underlying data. This is like doing computation inside a black box, which only outputs the computation result without showing what’s inside the black box,” Song wrote to me in an email. “In addition to supporting existing trusted hardware implementations, we are also working on a fully open source trusted hardware enclave implementation; a project we call Keystone. We also have years of experience building differential privacy tools, which are now being used in production at Uber for their data privacy initiatives. We plan to incorporate such techniques into our smart contract platform to further provide privacy and protect the computation output from leaking sensitive information about inputs.”

Song says that her project has solved the scaling problem by separating execution from consensus.

For each smart contract execution, we randomly select a subset of the computation nodes to form a computation committee, using a proof of stake mechanism. The computation committee executes the smart contract transaction,” Song wrote in an email exchange with TechCrunch. “The consensus committee then verifies the correctness of the computation results from the computation committee. We use different mathematical and cryptographic methods to enable efficient verification of the correctness of the computation results. Once the verification succeeds, the state transition is committed to the distributed ledger by the consensus committee.”

By having the computation committee working in parallel with the consensus committee only needing to verify the correctness of the computation creates an easier path to scalability.

Other platforms have attempted to use sampling to speed up transactions over distributed systems (Hedera Hashgraph comes to mind), but have been met with limited adoption in the market.

“We use proof-of-stake mechanisms to elect instances of different types of functional committees: compute, storage and consensus committees,” Song explained. “We can scale each of the different functions independently based on workload and system needs. One of our observations of existing systems is that consensus operations are very expensive. our network protocol design allows compute committees and storage committees to process transactions without relying on heavy-weight consensus protocols.”

Song’s approach has managed to gain the support of firms including: a16zcrypto, Accel, Binance, DCVC (Data Collective), Electric Capital, Foundation Capital, Metastable, Pantera, Polychain, and more.

In all, some 75 investors have rallied to finance the company’s approach to securing data and selling compute power on a cryptographically secured ledger.

“It’s exciting to see talented people like Dawn and her team working on ways to transition the internet away from data silos and towards a world with more responsible ways to share and own your data,” said Fred Ehrsam, co-founder of Coinbase and Oasis Labs investor, in a statement.

“The next step is getting our product in the hands of developers who align with our mission and can help inform the evolution of the platform as they build applications upon it,” said Oasis Labs co-founder and CTO Raymond Cheng in a statement.

For potential customers who’d eventually use the smart contracts developed on Oasis’ platform the system would work much like the method established by Ethereum.

“The token usage model in Oasis is very similar to Ethereum, where users pay gas fee to miners for executing smart contracts,” Song wrote. “One just needs one token to pay for gas fee for executing smart contracts. As with Ethereum, in our platform storage and compute have different pricing models but they both are paid with the same token.”

And Oasis’ leadership is looking ahead to a marketplace that incentivizes scale and makes fees accessible. “If the token price goes up, the amount of tokens needed to pay for operations can decrease (this is similar to Ethereum’s gas price, which is independent from the price of Ether). The number of tokens needed to pay for smart contract execution is not fixed.”

09 Jul 2018

Timehop discloses July 4 data breach affecting 21 million

Timehop has disclosed a security breach that has compromised the personal data (names and emails) of 21 million users. Around a fifth of the affected users — or 4.7M — have also had a phone number that was attached to their account breached in the attack.

The startup, whose service plugs into users’ social media accounts to resurface posts and photos they may have forgotten about, says it discovered the attack while it was in progress, at 2:04 US Eastern Time on July 4, and was able to shut it down two hours, 19 minutes later — albeit, not before millions of people’s data had been breached.

According to its preliminary investigation of the incident, the attacker first accessed Timehop’s cloud environment in December — using compromised admin credentials, and apparently conducting reconnaissance for a few days that month, and again for another day in March and one in June, before going on to launch the attack on July 4, during a US holiday.

Timehop publicly disclosed the breach in a blog post on Saturday, several days after discovering the attack.

It says no social media content, financial data or Timehop data was affected by the breach — and its blog post emphasizes that none of the content its service routinely lifts from third party social networks in order to present back to users as digital “memories” was affected.

However the keys that allow it to read and show users their social media content were compromised — so it has all keys deactivated, meaning Timehop users will have to re-authenticate to its App to continue using the service.

“If you have noticed any content not loading, it is because Timehop deactivated these proactively,” it writes, adding: “We have no evidence that any accounts were accessed without authorization.”

It does also admit that the tokens could “theoretically” have been used for unauthorized users to access Timehop users’ own social media posts during “a short time window” — although again it emphasizes “we have no evidence that this actually happened”.

“We want to be clear that these tokens do not give anyone (including Timehop) access to Facebook Messenger, or Direct Messages on Twitter or Instagram, or things that your friends post to your Facebook wall. In general, Timehop only has access to social media posts you post yourself to your profile,” it adds.

“The damage was limited because of our long-standing commitment to only use the data we absolutely need to provide our service. Timehop has never stored your credit card or any financial data, location data, or IP addresses; we don’t store copies of your social media profiles, we separate user information from social media content — and we delete our copies of your “Memories” after you’ve seen them.”

In terms of how its network was accessed, it appears that the attacker was able to compromise Timehop’s cloud computing environment by targeting an account that had not been protected by multifactor authentication.

That’s very clearly a major security failure — but one Timehop does not explicitly explain, writing only that: “We have now taken steps that include multifactor authentication to secure our authorization and access controls on all accounts.”

Part of its formal incident response, which it says began on July 5, was also to add multifactor authentication to “all accounts that did not already have them for all cloud-based services (not just in our Cloud Computing Provider)”. So evidently there was more than one vulnerable account for attackers to target.

Its exec team will certainly have questions to answer about why multifactor authentication was not universally enforced for all its cloud accounts.

For now, by way of explanation, it writes: “There is no such thing as perfect when it comes to cyber security but we are committed to protecting user data. As soon as the incident was recognized we began a program of security upgrades.” Which does have a distinct ‘stable door being locked after the horse has bolted’ feel to it.

It also writes that it carried out “the introduction of more pervasive encryption throughout our environment” — so, again, questions should be asked why it took an incident response to trigger a “more pervasive” security overhaul.

Also not entirely clear from Timehop’s blog post: When/if affected users were notified their information has been breached.

The company posed the blog post disclosing the security breach to its Twitter account on July 8. But prior to that its Twitter account was only noting that some “unscheduled maintenance” might be causing problems for users accessing the app…

We’ve reached out to the company with questions and will update this post with any response.

Timehop does say that at the same time as it was working to shut down the attack and tighten up its security, company executives contacted local and federal law enforcement officials — presumably to report the breach.

Breach reporting requirements are baked into Europe’s recently updated data protection framework, the GDPR, which puts the onus firmly on data controllers to disclose breaches to supervisory authorities — and to do so quickly — with the regulation setting a universal standard of within 72 hours of becoming aware of it (unless the personal data breach is unlikely to result in “a risk to the rights and freedoms of natural persons”).

Referencing GDPR, Timehop writes: “Although the GDPR regulations are vague on a breach of this type (a breach must be “likely to result in a risk to the rights and freedoms of the individuals”), we are being pro-active and notifying all EU users and have done so as quickly as possible. We have retained and have been working closely with our European-based GDPR specialists to assist us in this effort.”

The company also writes that it has engaged the services of an (unnamed) cyber threat intelligence company to look for evidence of use of the email addresses, phone numbers, and names of users being posted or used online and on the Dark Web — saying that “while none have appeared to date, it is a high likelihood that they will soon appear”.

Timehop users who are worried the network intrusion and data breach might have impact their “Streak” — aka the number Timehop displays to denote how many consecutive days they have opened the app — are being reassured by the company that “we will ensure all Streaks remain unaffected by this event”.

09 Jul 2018

Apply today for Startup Battlefield Africa 2018

We’d be hard-pressed to find something we love to cover more than a rapidly evolving tech startup ecosystem. That’s one of the big reasons we’re so excited to be heading back to Africa — specifically Lagos, Nigeria — to host TechCrunch Startup Battlefield Africa 2018 on December 11. With more than 300 tech hubs across the continent connecting and mentoring entrepreneurs and innovators, it’s a prime time to be a startup in Africa — and the perfect time to launch your startup to the world. Apply right here, right now.

Last year, our first Startup Battlefield Africa took place in Nairobi, Kenya and featured 15 amazing startups, with one winner in three different categories. This year, we’re tweaking the format a bit, so here’s what you need to know.

Any type of tech startup may apply. Highly discerning TechCrunch editors will review the applications and choose the 15 startups they deem most likely to produce an exit or IPO. The founders of the competing teams will receive free pitch coaching from TechCrunch, and they’ll be ready to face a panel of judges (recruited by our editors), all experts in their categories.

Five startups will compete in one of three preliminary rounds where they will have six minutes to pitch and present their demo. The judges will then have six minutes to ask questions. The judges will select five of the 15 startups to pitch a second time, and from that elite group of five comes one overall winner of TechCrunch Startup Battlefield Africa 2018.

In addition to an intense amount of media and investor interest, the founders of the winning startup will receive US$25,000 in no-equity cash plus a trip for two to compete in Startup Battlefield in San Francisco at our flagship event, TechCrunch Disrupt 2019 (assuming the company still qualifies to compete at the time).

Are you as excited as we are? Do you want to launch your startup to the world? Ready to submit your application? Here’s what you need to know about eligibility. Startups should:

  • Be early-stage companies in “launch” stage
  • Be headquartered in one of our eligible countries*
  • Have a fully working product/beta, reasonably close to or in production
  • Have received limited press or publicity to date
  • Have no known intellectual property conflicts

TechCrunch Startup Battlefield Africa 2018 takes place in Lagos, Nigeria on December 11. Does your startup have what it takes to win it all? Your destiny awaits — apply today.

*Residents in the following countries may apply:

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09 Jul 2018

TaxScouts wants to make filing your tax return a lot less tedious

TaxScouts, a U.K. startup founded by TransferWise and Marketinvoice alumni, is the latest online service designed to make filing your tax return a lot less tedious. However, rather than focusing on the bookkeeping part of the problem primarily tackled by cloud accounting software — which is often overkill if you are self-employed or simply earn a little additional income outside of your day job — the company combines “automation” with human accountants to help you prepare your tax submission.

“Doing taxes is either tedious when you have to do them yourself, or expensive when you hire an accountant,” says TaxScouts co-founder and CEO Mart Abramov, who was employee number 8 at TransferWise and also previously worked at Intuit, MarketInvoice and Skype. “We’re automating as much of the admin part of tax preparation as possible in our online app. We then connect you with a certified accountant who will take care of the entire tax filing process for you”.

The headline draw is that TaxScouts charges a flat fee of £99 if you pay in advance, and promises a turn-around of just 24 hours. To help with this, the web app walks you through your tax status, income and expenses without assuming too much prior knowledge. This includes asking you to upload or take a photo of any required documents, such as invoices or dividend certificates. The idea is that all of the admin is captured digitally and packaged up ready for your assigned accountant to take a look.

“As more of the menial tasks are handled by our app this allows accountants to focus on what they do best and not get stuck in admin,” explains Abramov. “They can focus on providing advice and expertise to make sure everything is done right. Our customers get both the benefits of getting a personal accountant and having a simple tool to manage it all, without the huge costs”.

Abramov tells me that TaxScouts’ typical customers are anyone who wants to have their self assessment done for them or who just wants help with tax preparation. This spans self-employed people — from construction workers to professional freelancers — entrepreneurs and company directors, and people who are entitled to some kind of tax relief or refund, such as investors on crowdfunding platforms. He also said that gig economy workers are a good fit.

Moving forward, TaxScouts plans to further develop the automation functionality, including plugging into more data sources beyond its existing integration with HMRC. Abramov says this could include a driver’s Uber data for tracking mileage claims, for example, while I can immediately see how the app could integrate with various fintech offerings that capture transactions and receipts.

To that end, the startup has raised £300,000 in “pre-seed” funding to continue building out the product. Backers include Picus Capital, Charlie Delingpole (co-founder of ComplyAdvantage and MarketInvoice), and Charlie Songhurst (former GM corporate strategy at Microsoft).