Year: 2018

18 Dec 2018

Ford comes up with a prototype noise-cancelling kennel to shelter dogs from fireworks

Dogs have a much wider range of hearing than humans do and noises that don’t bother us can give them a very ruff time. Fireworks are especially tough on many pups and also hard on owners who have to calm their panicking pets. To potentially help them, Ford has developed a noise-cancelling kennel prototype that it says was inspired by the noise control technology introduced used in its Edge SUV to soften engine and transmission noises.

When microphones inside the kennel detect the sound of fireworks, a built-in audio system sends out opposing frequencies that Ford claims significantly reduces or cancels the cacophony. The kennel is also built with high-density cork to further mute outside noises.

The noise-cancelling kennel is not currently for sale, but Ford says it “is the first in a series of initiatives—called interventions—that applies automotive know-how to help solve everyday problems.”

You might remember, especially if you have a small child, that last year Ford developed a cot called Max Motor Dreams to calm babies who only fall asleep in moving vehicles, a situation many exhausted parents (with high-mileage cars) are familiar with. The cot had small motors underneath that stimulated the feel of a moving vehicle, played actual road noise and even had built-in LED lighting to mimic the glow of streetlights.

At the time, Ford said the cot might be produced for sale if there was enough interest, but even though it went viral, Max Motor Dreams never did make it to the market. That’s not an encouraging sign for people who want to buy the noise-cancelling kennel, but in the meantime, here are some ways you can prepare your dogs for holiday fireworks. There is also a product called the ThunderShirt that is supposed to help alleviate anxiety in dogs, but of course results will vary from canine to canine.

18 Dec 2018

Google will make it easier for people without accounts to collaborate on G Suite documents

Soon it will be easier for people without Google accounts to collaborate on G Suite documents. Currently in beta, a new feature will enable G Suite users to invite people without G Suite subscriptions or Google accounts to work on files by sending them a pin code.

Using the pin code to gain access allows invitees to view, comment on, suggest edits to, or directly edit Google Docs, Sheets, and Slides. The owners and admins of the G Suite files monitor usage through activity logs and can revoke access at any time. According to the feature’s support article, admins are able to set permissions by department or domain. They can also restrict sharing outside of white-listed G Suite domains or their own organization.

In order to sign up for the beta program, companies need to fill in this form and select a non-G Suite domain they plan to collaborate with frequently.

According to a Reuters article published in February, since intensifying their focus on enterprise customers, Google has doubled the number of organizations with a G Suite subscription to more than 4 million. But despite Google’s efforts to build its enterprise user base, G Suite hasn’t come close to supplanting Office 365 as the cloud-based productivity software of choice for companies.

Office 365 made $13.8 billion in sales in 2016, versus just $1.3 billion for G Suite, according to Gartner. Google has added features to G Suite, however, to make the two competing software suites more interoperable, including an update that enables Google Drive users to comment on Office files, PDFs, and images in the Drive preview panel without needing to convert them to Google Docs, Sheets or Slide files first, even if they don’t have Microsoft Office or Acrobat Reader. Before that, Google also released a Drive plugin for Outlook.

This may not convince Microsoft customers to switch, especially if they have been using its software for decades, but at least it will get more workers comfortable with Google’s alternatives, and may convince some companies to subscribe to G Suite for at least some employees or departments.

18 Dec 2018

Equifax, Western Union, Priceline settle with New York attorney general over insecure mobile apps

New York’s attorney general has settled with five tech and financial giants, requiring each company to implement basic security on their mobile apps.

The settlements force Credit Sesame, Equifax (yes, that Equifax), Priceline, Spark Networks and Western Union to ensure data sent between the app and their servers are encrypted. Specifically, the attorney general said their apps “could have allowed sensitive information entered by users — such as passwords, social security numbers, credit card numbers, and bank account numbers — to be intercepted by eavesdroppers employing simple and well-publicized techniques.”

In other words, their mobile apps “all failed” to properly roll out and implement HTTPS, one of the barest minimum security measures in any modern app’s security.

HTTPS certificates (also known as SSL/TLS certificates) encrypt data between a device, like your phone or computer, and a website or app server, ensuring any sensitive data, like credit card numbers or passwords, can’t be intercepted as it travels over the internet — whether that’s someone on the same coffee shop Wi-Fi network or your nearest federal intelligence agency.

These certificates are more common than ever, not least because when they’re not incredibly cheap, they’re completely free — and most modern browsers these days will bluntly tell you when a website is “not secure.” Apps are no different, but without a green padlock in your browser window, there’s often very little to know for sure on the face of it that your data is traversing the internet securely.

At least, with financial, banking and dating apps — you’d just assume, right? Bzzt, wrong.

“Although each company represented to users that it used reasonable security measures to protect their information, the companies failed to sufficiently test whether their mobile apps had this vulnerability,” the office of attorney general Barbara Underwood said in a statement. “Today’s settlements require each company to implement comprehensive security programs to protect user information.”

The apps were picked out after an extensive batch of app testing in an effort to find security issues before incidents happen. Underwood’s office follows in the footsteps of federal enforcement in recent years by the Federal Trade Commission, which brought action against several app makers — including Credit Karma and Fandango — for failing to properly implement HTTPS certificates.

In taking action, the attorney general gets to keep closer tabs on the companies going forward to make sure they’re not flouting their data security responsibilities.

17 Dec 2018

This fake package covers porch thieves in glitter and fart spray

Having a package stolen off your front porch sucks. No matter what’s inside the box, it just feels… violating. Someone came into your space and took your stuff just because they could probably get away with it. And even if you go to the cops with license plates and high-res face photos, they’ll often respond with a big, apathetic shrug (particularly around Christmas when package thefts skyrocket).

After having one of his own packages nabbed, engineer/YouTuber Mark Rober decided to take things into his own hands. He built a box that… well, it’ll make any would-be thieves think twice before hitting his house again. And probably make them have to go buy a really good vacuum.

Here’s the video:

In what might be the most wonderfully over-engineered act of lighthearted retaliation to ever exist, this thing is just layer upon layer of ingenuity.

It starts with a GPS tracker that lets Mark know when the box has been moved.

As soon as it’s opened, a custom-built spinning tub flings ridiculously fine glitter in every direction, covering whoever opened it from head to toe (or, in many of the filmed cases, from car door to car door). Look for the slo-mo glittersplosion at around the four-minute mark — that alone is a work of art.

A few seconds later comes a blast of canned fart spray. Or, I should say, the first blast of canned fart spray… because it keeps coming (partly in hopes that the thief throws out the box, allowing Mark to use the GPS tracker to recover it).

Oh, and the whole thing is being filmed (and uploaded online!) from basically every angle, thanks to a very carefully aligned rig of four hidden cameras.

And there’s more! I don’t want to spoil it, but everything down to the tiny details of the box itself were planned out to make thieves feel a little bit more silly after the glitter settles.

Now, this probably isn’t something you should try at home. Building packages that use hidden switches and circuit boards to do unexpected things when you open them seems like something that can land you on a list. But holy wow, watching it is therapeutic.

Want to go deeper? His co-builder on this project, Sean Hodgins, has a tear down video about the engineering involved.

17 Dec 2018

This fake package covers porch thieves in glitter and fart spray

Having a package stolen off your front porch sucks. No matter what’s inside the box, it just feels… violating. Someone came into your space and took your stuff just because they could probably get away with it. And even if you go to the cops with license plates and high-res face photos, they’ll often respond with a big, apathetic shrug (particularly around Christmas when package thefts skyrocket).

After having one of his own packages nabbed, engineer/YouTuber Mark Rober decided to take things into his own hands. He built a box that… well, it’ll make any would-be thieves think twice before hitting his house again. And probably make them have to go buy a really good vacuum.

Here’s the video:

In what might be the most wonderfully over-engineered act of lighthearted retaliation to ever exist, this thing is just layer upon layer of ingenuity.

It starts with a GPS tracker that lets Mark know when the box has been moved.

As soon as it’s opened, a custom-built spinning tub flings ridiculously fine glitter in every direction, covering whoever opened it from head to toe (or, in many of the filmed cases, from car door to car door). Look for the slo-mo glittersplosion at around the four-minute mark — that alone is a work of art.

A few seconds later comes a blast of canned fart spray. Or, I should say, the first blast of canned fart spray… because it keeps coming (partly in hopes that the thief throws out the box, allowing Mark to use the GPS tracker to recover it).

Oh, and the whole thing is being filmed (and uploaded online!) from basically every angle, thanks to a very carefully aligned rig of four hidden cameras.

And there’s more! I don’t want to spoil it, but everything down to the tiny details of the box itself were planned out to make thieves feel a little bit more silly after the glitter settles.

Now, this probably isn’t something you should try at home. Building packages that use hidden switches and circuit boards to do unexpected things when you open them seems like something that can land you on a list. But holy wow, watching it is therapeutic.

Want to go deeper? His co-builder on this project, Sean Hodgins, has a tear down video about the engineering involved.

17 Dec 2018

As adult content ban arrives, Tumblr clarifies and refines rules

Let’s talk about the grown-up stuff — the adult content that Tumblr says it’s banning starting today. The wording of the company’s initial plans was admittedly confusing, upsetting both artists and sex workers who have begun to rely on the platform as a kind of safe place for self-expression.

The site issued a blog post today clarifying what had initially appeared to be a scorched earth approach to the explicit content as Tumblr frantically attempted to work its way back into Apple’s good graces. The note is a bit of a retread of earlier statements, while offering a much clearer vision of what things will look like on Tumblr’s end.

Of course, for some, this clarification might be coming too late. Many have already abandoned Tumblr for greener — or at least less family-friendly pastures. That’s due in no small part to the fact that it went on a kind of banning spree, following the reports of child pornography that caused it to be pulled from Apple’s App Store.

Tumblr relied on a machine algorithm that flagged posts at a rapid clip, resulting in frustrating and sometimes hilarious misfires. “[T]his is a complex problem,” the company writes, “and over the coming weeks we will gradually, and carefully, flag more adult content. (Yes, we will still make mistakes, but hopefully fewer and fewer.)”

The service also clarifies its appeals process, wherein users can protest posts they believe were incorrectly flagged. Content that is flagged will be hidden from view, but not deleted, according to the company.

Tumblr also correctly notes the important role the LGBTQ+ community has played in buoying the service over the past several years. Communities like this have found a home on the service and many now feel threatened by what appears on the face of it to be a bit of a Draconian new ruling.

Per Tumblr:

LGBTQ+ conversations, exploration of sexuality and gender, efforts to document the lives and challenges of those in the sex worker industry, and posts with pictures, videos, and GIFs of gender-confirmation surgery are all examples of content that is not only permitted on Tumblr but actively encouraged.

And just to drive the point home, it offers a few examples of images that ought not be flagged by the service, ranging from life drawings to medical procedures to topless protesting. Of course, under its current algorithm, many of these have already been flagged.

It’s a nice gesture, but more to the point, it’s a site finally acknowledging a core audience that feels betrayed by the new rules. Tumblr’s own approach to them now feels fluid because it has to be. The company is toeing a difficult line between the openness users have come to expect and regulations put in place to please walled content gardens from the likes of Apple and the strict structures of its (and, for that matter, TechCrunch’s) corporate owner, Verizon.

It’s going to be a hard line to walk, but the future of Tumblr might very well depend on it.

17 Dec 2018

Abacus has attracted $2 million from YC, Justin Kan, and Coinbase to help startups and investors manage tokenized liquidity programs

For the crypto market to become attractive to institutional investors, companies and their investors need to ensure that tokenized securities — digital assets subject to federal security regulations — can be as easily tracked and traded and exchanged as traditional stock shares.

Abacus, a young company that passed through Y Combinator this past summer, think its technology can make it so.

According to the picture painted by Abacus founder and CEO Pradyuman Vig, Abacus can both automate compliance for tokenized security transactions, and keep track of the chain of custody of private securities, making it simple for the SEC, among other parties, to audit the entire history of these securities transactions. Indeed, using the blockchain and its proprietary software, Vig says that Abacus can facilitate the issuance, administration, and settlement of tokenized financial instruments on the blockchain through smart contracts that it keeps track of via an on-chain storage layer.

The company’s goal, ultimately, is to make it easier to buy and sell private securities, as well as to make the process far more transparent. If it works, it could be a big deal, too. Consider that traditionally, funds and companies have experienced liquidity events either when they get acquired or sold or go public (or get liquidated). Meanwhile, because so much money has poured into the private market over the last decade, companies have pushed off all of these types of events for longer periods of time. That shift has given rise to secondary sales as we know them today, but Abacus thinks it can help usher in yet another way for startups and funds to exit their holdings: through secondary markets for tokenized securities.

Right now, of course, the mere idea of a secondary market for tokenized securities feels like a very distant possibility. As TC columnist Jon Evans noted over the weekend, Bitcoin — priced at $19,000 apiece at this time last year — is now trading at $3,500, and other cryptocurrencies have cratered even more dramatically. What’s left of the crypto space right now, writes Evans, is a “giant casino of penny stocks, with little to no utility outside of financial speculation.”

It could be a painfully long period before that changes, but true believers in digital assets are covering their bases in the meantime, and betting on Abacus is seemingly one way to do that. In fact, the company just closed on $2 million in funding, including $1 million from serial entrepreneur and investor Justin Kan. Other investors in the round include YC and Coinbase, which has been plain about its ambitions to some day offer crypto securities trading, and that last month took another step toward that end when it launched over-the-counter trading for institutional customers that allows them to direct trades between each other.

Coinbase, perhaps unsurprisingly, is also among Abacus’s first “exchange” partners, or it will be, once it goes live with new offering that will first be made to customers outside the U.S. that allows them to trade hundreds of tokens directly from their wallets.

Vig says that Abacus is also working with a Chicago-based exchange called OpenFinance, which says that it’s about to begin trading its first security token. A third customer is New York-based AirSwap, which is a peer-to-peer trading platform.

Presumably, the technology that Abacus is developing is of burgeoning interest, but one assumes that investors are also putting stock — no pun intended — in Vig and his cofounder, Ian Macalinao. The young software engineers originally met in 2012 through the Texas Academy of Mathematics, a college entrance residential program for gifted high school students. After they headed off to different colleges — they graduated from Purdue and the University of Texas, respectively — they came together to form an analytics platform, and more recently, to create Abacus.

It’s still a very small operation. The two have just two other employees as of this writing. Vig insists that Abacus doesn’t need an army of engineers, though. “We’re programmatic and automatic, so if we got a lot of interest, we could spin out new issuances pretty quickly,” he says. “It’s all API-based, so four people doesn’t seem like much but we’ve accomplished a lot.”

They’re already seeing some revenue, too, they say, including from SpaceFund, a new, Texas-based venture capital firm focused on using blockchain technology to fund “frontier enabling” space startups by selling its own security tokens to accredited investors to fund them. (These same investors will be able to sell their SpaceFund tokens to other investors as their value rises, is the idea.) As far out as it all sounds, SpaceFund is paying Abacus a subscription fee, after paying a set-up fee. And Vig expects such fees to add up over time as it attracts more customers, even if it’s too nascent to know what to charge just yet.

“We don’t have a formula yet for our SaaS Model,” says Vig. “It depends on the number of people involved in a particular offering, and how complicated compliance is.”

Of course, what it really depends on is whether and when enough startups and investors gravitate toward tokenized securities. If it happens sooner rather than later, Abacus will be ready and waiting.

17 Dec 2018

How Russia’s online influence campaign engaged with millions for years

Russian efforts to influence U.S. politics and sway public opinion were consistent and, as far as engaging with target audiences, largely successful, according to a report from Oxford’s Computational Propaganda Project published today. Based on data provided to Congress by Facebook, Instagram, Google, and Twitter, the study paints a portrait of the years-long campaign that’s less than flattering to the companies.

The report, which you can read here, was published today but given to some outlets over the weekend, summarizes the work of the Internet Research Agency, Moscow’s online influence factory and troll farm. The data cover various periods for different companies, but 2016 and 2017 showed by far the most activity.

A clearer picture

If you’ve only checked into this narrative occasionally during the last couple years, the Comprop report is a great way to get a bird’s-eye view of the whole thing, with no “we take this very seriously” palaver interrupting the facts.

If you’ve been following the story closely, the value of the report is mostly in deriving specifics and some new statistics from the data, which Oxford researchers were provided some seven months ago for analysis. The numbers, predictably, all seem to be a bit higher or more damning than those provided by the companies themselves in their voluntary reports and carefully practiced testimony.

Previous estimates have focused on the rather nebulous metric of “encountering” or “seeing” IRA content put on these social metrics. This had the dual effect of increasing the affected number — to over a hundred million on Facebook alone — but “seeing” could easily be downplayed in importance; after all, how many things do you “see” on the internet every day?

The Oxford researchers better quantify the engagement, on Facebook first, with more specific and consequential numbers. For instance, in 2016 and 2017, nearly 30 million people on Facebook actually shared Russian propaganda content, with similar numbers of likes garnered, and millions of comments generated.

Note that these aren’t ads that Russian shell companies were paying to shove into your timeline — these were pages and groups with thousands of users on board who actively engaged with and spread posts, memes, and disinformation on captive news sites linked to by the propaganda accounts.

The content itself was, of course, carefully curated to touch on a number of divisive issues: immigration, gun control, race relations, and so on. Many different groups (i.e. black Americans, conservatives, Muslims, LGBT communities) were targeted all generated significant engagement, as this breakdown of the above stats shows:

Although the targeted communities were surprisingly diverse, the intent was highly focused: stoke partisan divisions, suppress left-leaning voters, and activate right-leaning ones.

Black voters in particular were a popular target across all platforms, and a great deal of content was posted both to keep racial tensions high and to interfere with their actual voting. Memes were posted suggesting followers withhold their votes, or deliberately incorrect instructions on how to vote. These efforts were among the most numerous and popular of the IRA’s campaign; it’s difficult to judge their effectiveness, but certainly they had reach.

Examples of posts targeting black Americans.

In a statement, Facebook said that it was cooperating with officials and that “Congress and the intelligence community are best placed to use the information we and others provide to determine the political motivations of actors like the Internet Research Agency.” It also noted that it has “made progress in helping prevent interference on our platforms during elections, strengthened our policies against voter suppression ahead of the 2018 midterms, and funded independent research on the impact of social media on democracy.”

Instagram on the rise

Based on the narrative thus far, one might expect that Facebook — being the focus for much of it — was the biggest platform for this propaganda, and that it would have peaked around the 2016 election, when the evident goal of helping Donald Trump get elected had been accomplished.

In fact Instagram was receiving as much or more content than Facebook, and it was being engaged with on a similar scale. Previous reports disclosed that around 120,000 IRA-related posts on Instagram had reached several million people in the run-up to the election. The Oxford researchers conclude, however, that 40 accounts received in total some 185 million likes and 4 million comments during the period covered by the data (2015-2017).

A partial explanation for these rather high numbers may be that, also counter to the most obvious narrative, IRA posting in fact increased following the election — for all platforms, but particularly on Instagram.

IRA-related Instagram posts jumped from an average of 2,611 per month in 2016 to 5,956 in 2017; note that the numbers don’t match the above table exactly because the time periods differ slightly.

Twitter posts, while extremely numerous, are quite steady at just under 60,000 per month, totaling around 73 million engagements over the period studied. To be perfectly frank this kind of voluminous bot and sock puppet activity is so commonplace on Twitter, and the company seems to have done so little to thwart it, that it hardly bears mentioning. But it was certainly there, and often reused existing bot nets that previously had chimed in on politics elsewhere and in other languages.

In a statement, Twitter said that it has “made significant strides since 2016 to counter manipulation of our service, including our release of additional data in October related to previously disclosed activities to enable further independent academic research and investigation.”

Google too is somewhat hard to find in the report, though not necessarily because it has a handle on Russian influence on its platforms. Oxford’s researchers complain that Google and YouTube have been not just stingy, but appear to have actively attempted to stymie analysis.

Google chose to supply the Senate committee with data in a non-machine-readable format. The evidence that the IRA had bought ads on Google was provided as images of ad text and in PDF format whose pages displayed copies of information previously organized in spreadsheets. This means that Google could have provided the useable ad text and spreadsheets—in a standard machine- readable file format, such as CSV or JSON, that would be useful to data scientists—but chose to turn them into images and PDFs as if the material would all be printed out on paper.

This forced the researchers to collect their own data via citations and mentions of YouTube content. As a consequence their conclusions are limited. Generally speaking when a tech company does this, it means that the data they could provide would tell a story they don’t want heard.

For instance, one interesting point brought up by a second report published today, by New Knowledge, concerns the 1,108 videos uploaded by IRA-linked accounts on YouTube. These videos, a Google statement explained, “were not targeted to the U.S. or to any particular sector of the U.S. population.”

In fact, all but a few dozen of these videos concerned police brutality and Black Lives Matter, which as you’ll recall were among the most popular topics on the other platforms. Seems reasonable to expect that this extremely narrow targeting would have been mentioned by YouTube in some way. Unfortunately it was left to be discovered by a third party and gives one an idea of just how far a statement from the company can be trusted. (Google did not immediately respond to a request for comment.)

Desperately seeking transparency

In its conclusion, the Oxford researchers — Philip N. Howard, Bharath Ganesh, and Dimitra Liotsiou — point out that although the Russian propaganda efforts were (and remain) disturbingly effective and well organized, the country is not alone in this.

“During 2016 and 2017 we saw significant efforts made by Russia to disrupt elections around the world, but also political parties in these countries spreading disinformation domestically,” they write. “In many democracies it is not even clear that spreading computational propaganda contravenes election laws.”

“It is, however, quite clear that the strategies and techniques used by government cyber troops have an impact,” the report continues, “and that their activities violate the norms of democratic practice… Social media have gone from being the natural infrastructure for sharing collective grievances and coordinating civic engagement, to being a computational tool for social control, manipulated by canny political consultants, and available to politicians in democracies and dictatorships alike.”

Predictably, even social networks’ moderation policies became targets for propagandizing.

Waiting on politicians is, as usual, something of a long shot, and the onus is squarely on the providers of social media and internet services to create an environment in which malicious actors are less likely to thrive.

Specifically, this means that these companies need to embrace researchers and watchdogs in good faith instead of freezing them out in order to protect some internal process or embarrassing misstep.

“Twitter used to provide researchers at major universities with access to several APIs, but has withdrawn this and provides so little information on the sampling of existing APIs that researchers increasingly question its utility for even basic social science,” the researchers point out. “Facebook provides an extremely limited API for the analysis of public pages, but no API for Instagram.” (And we’ve already heard what they think of Google’s submissions.)

If the companies exposed in this report truly take these issues seriously, as they tell us time and again, perhaps they should implement some of these suggestions.

17 Dec 2018

In emerging markets there are no copycats, just budding entrepreneurs

Every year I teach an MBA course at Stanford about the exciting opportunities for tech investors and entrepreneurs in developing economies. When we designed the syllabus back in 2013, Rocket Internet was still firing on all cylinders on four continents. The unapologetic machine built to copy big American internet companies created billions of dollars for the Samwer brothers and its backers. During Rocket’s golden years, the best startups in the developing economies seemed to inevitably have an original reference in Silicon Valley.

Accordingly, we added a class about the opportunity of replicating business models to seize this information arbitrage. Call it the second-mover advantage.

Despite my conviction about the model, the copycat word  —  short for replicating startups and attached to these ventures  —  annoyed me from the start. More than a term to describe a straightforward recipe to launch, I see it as an unconscious way to belittle an entire group of hard-charging founders and investors.

Indeed, while in foreign eyes, we have been building a Mexican Kickstarter, a Middle Eastern Uber, an Indian Amazon or a Colombian Postmates, I argue visionary founders are taking a simple idea that already exists and creating new worlds.

On the internet, there are Einsteins and there are Bob the Builders. I’m Bob the Builder. Oliver Samwer, founder of Rocket Internet

Gateway to entrepreneurship

While impact is the final goal, founders can approach the journey in different ways. The most common approach in the startup world is to use the business method, or more pompously, the design thinking methodology. “Fall in love with the problem, not the solution,” mentors keep telling a succession of startup clusters in acceleration programs. The best and “leanest” way to product market fit is by starting small then keep iterating the solution until you nail it.

A second way to start is favored by engineers and scientists: Take a new promising technology or a forgotten molecule, then find a big problem. Keep iterating until you find a problem worth solving, like a hammer looking for a nail.

A third way is starting like painters create, building skills by copying classics, or like a new chef cooks by starting with iconic recipes: replicate a proven idea and iterate until you find traction.

Until a few years ago it was ostensibly the only way to scale in developing economies. The model helped raise local capital from risk-averse investors who needed reassurance. The playbook to scale was unfolding a couple of years ahead and served as a guide to founders without previous startup experience and no local role models. The potential acquirer was identified and sometimes contacted in advance. Founders weren’t crazy and investors weren’t dumb.

Replicating a business model has served in emerging ecosystems as the gateway to entrepreneurship and venture investing.

Photo courtesy of Flickr/A_Marga

Riding the next wave

According to conventional wisdom, new ecosystems around the world grow through the following three stages, be them in developing economies or more developed countries. First, local and foreign entrepreneurs replicate successful models focused on local markets. Then as the ecosystem evolves, founders start applying existing technologies to solve local problems. Finally, as the tech space matures, new technologies begin to flourish.

In my opinion, those stages never happen sequentially as stated by ecosystem observers. Successful startups that started with a foreign inspiration can outgrow the master. If they are not bought into submission by the first mover, some of the most famous copycats reinvented the original and made it better: Mercado Libre is much more relevant in the e-commerce space than eBay . Flipkart is hardly an Amazon, not to mention WeChat. These companies are in turn some of the most prolific tech innovators on the globe. Truly ecosystems evolve organically in unique ways reflecting their history, geopolitical environment, economic structure and cultural features.

Two ways to defend the status quo: “It’s been done before” and “It’s never been done before.” –Thibault @Kpaxs

In defense of talent

Recently, it’s hard to hear American observers use the word copycat to describe any American company. After all, Guilt replicated VentesPrivees and Lime, Chinese dockless bike sharing and many more examples. All American startups are treated as innovators while the rest as mere followers.

Recently, Chinese or Indian startups seem to be given the benefit of the doubt regarding their originality. Is it because these regions have become more innovative? Maybe. But it’s also because these ecosystems have gained the respect of Silicon Valley. Indeed, Chinese consumer tech surpassed decisively the U.S. as the most important country in terms of investments.

So here’s my humble suggestion to our wealthier and more accomplished colleagues: stop using the c-word with founders. It’s offensive. Most probably, these founders are facing more challenges to build their companies and lower odds for success that the first mover. If anything, they have more merit than the originals.

As for founders, when they call you a me-too, remember all teams started somewhere, somehow. In fact, most started like Bob the Builder before turning into Einsteins. The truth is, it doesn’t matter where you start. You can start by applying a new technology or protocol. You can start with a problem you feel passionate about. You can start by replicating a business model. It doesn’t really matter if you take a big swing at the future and trust you will figure out how to make it happen. It doesn’t matter what label they use while you change the world for the better.

17 Dec 2018

Moonbug nabs $145M to buy up kids’ digital media brands

Moonbug, a kid-focused media business founded by a pair of entertainment executives, has brought in a $145 million Series A investment led by The Raine Group, a merchant bank that supports technology, media and telecom efforts.

Venture capital firms Felix Capital and Fertitta Capital also participated in the financing.

Moonbug, headquartered in London, acquires and distributes media content made for kids. Recently, the company completed its first IP acquisition of Little Baby Bum, a children’s sing-along show popular on YouTube, Amazon and Netflix. According to a Los Angeles Times report, one of the show’s videos is the 20th most popular video in YouTube history, boasting 2.1 billion views. In total, Moonbug says Little Baby Bum has clocked in 23 billion views across multiple platforms.

With its Series A investment, Moonbug will amp up its M&A activity to expand its portfolio of content that “helps children build essential life skills.” Moonbug chief executive officer René Rechtman, who spent the last three years as the head of digital studios at The Walt Disney Co., says they plan to acquire eight media businesses.

Rechtman and John Robson, a former senior vice president of digital distribution at Paramount Pictures and vice president of global content at HTC, launched Moonbug earlier this year.

“I see an independent creator and I put them in very simple brackets: one is high viewership and engagement and one is quality of IP,” Rechtman told TechCrunch. “If they have both of those, I am very interested.”