Month: June 2019

21 Jun 2019

LTE flaws let hackers ‘easily’ spoof presidential alerts

Security vulnerabilities in LTE can allow hackers to “easily” spoof presidential alerts sent to mobile phones in the event of a national emergency.

Using off-the-shelf equipment and open-source software, a working exploit made it possible to send a simulated alert to every phone in a 50,000-seat football stadium with little effort, with the potential of causing “cascades of panic,” said researchers at the University of Colorado Boulder in a paper out this week.

Their attack worked in nine out of ten tests, they said.

Last year the Federal Emergency Management Agency sent out the first “presidential alert” test using the Wireless Emergency Alert (WEA) system. It was part of an effort to test the new state-of-the-art system to allow any president to send out a message to the bulk of the U.S. population in the event of a disaster or civil emergency.

But the system — which also sends out weather warnings and AMBER alerts — isn’t perfect. Last year amid tensions between the U.S. and North Korea, an erroneous alert warned residents of Hawaii of an inbound ballistic missile threat. The message mistakenly said the alert was “not a drill.”

Although no system is completely secure, much of the issues over the years have been as a result of human error. But the researchers said the LTE network used to transmit the broadcast message is the biggest weak spot.

Because the system uses LTE to send the message and not a traditional text message, each cell tower blasts out an alert on a specific channel to all devices in range. A false alert can be sent to every device in range if that channel is identified.

Making matters worse, there’s no way for devices to verify the authenticity of received alerts.

The researchers said fixing the vulnerabilities would “require a large collaborative effort between carriers, government stakeholders, and cell phone manufacturers.” They added that adding digital signatures to each broadcast alert is not a “magic solution” but would make it far more difficult to send spoofed messages.

A similar vulnerability in LTE was discovered last year, allowing researchers to not only send emergency alerts but also eavesdrop on a victim’s text messages and track their location.

21 Jun 2019

TechCrunch is back in New York next week!

TechCrunch is headed back to NYC to find the next wave of early stage startups tackling big ideas!  Last time we held an event in New York it was 2017, so we are overdue for a visit. Hear about what TechCrunch has been up to – Startup Battlefield, ExtraCrunch and more.

This is your chance to hang out with the TC crew. You can meet Managing Editor Jordan Crook, Head of Startup Battlefield Neesha A Tambe, Battlefield Host Anthony Ha, Hardware Editor Brian Heater, and more. Startup founders, investors, angels, and startup community leaders can join to learn more about TechCrunch’s Startup Battlefield. RSVP below as space is filling up fast. Founders will learn how to apply for Battlefield with a killer application, and investors will learn how to refer companies in their portfolio.

Startup Battlefield is TechCrunch’s renowned startup launch competition. The Startup Battlefield alumni community composes almost 857 companies that have raised over $8.9 billion USD, and produced over 110 successful exits and IPOs.

 

2019 TechCrunch New York Meet and Greets

The Yard

Herald Square, New York, New York

June 25th, Tuesday

Host: The Yard Coworking Space – Herald Square
Time: 5:00pm – 6:15pm
RSVP

 

*For questions, please email neesha@techcrunch.com

21 Jun 2019

Nowports raises $5.3 million to become Latin America’s digital shipping answer to Flexport

Nowports, a developer of software and services to track freight shipments from ports to destinations across Latin America, has aims to become the regional answer to Flexport’s billion dollar digital shipping business.

Almost 54 million containers are imported and exported from Latin America each year, and nearly half of them are either delayed or lost due to mismanagement.

Nowports is pitching shippers on its digital management software to keep track of each container, and has signed on a number of leading venture capital firms to fulfill its mission.

The Monterrey, Mexico-based company raised $5.3 million in its seed round of financing. The round was led by Base 10 and Monashees with participation from Y Combinator, and additional investors like Broadhaven, Soma Capital, Partech, Tekton, and Paul Buchheit.

“In Nowports we saw a very strong combination: well prepared and ambitious team using technology to help thousands of customers to improve their importing and exporting processes. By adding efficiency, reliability, and transparency to change a multi-billion dollar industry, Nowports has been able to attract many clients that saw significant improvements in their daily routines by using the solution” said Caio Bolognesi, General Partner from Monashees, in a statement.

The company said it would use the money to expand into new markets, grow its team, and integrate with more companies involved in the (very fragmented) Latin American logistics industry. It’s a market that needs a range of better logistics technologies.

“Even though over 90% of the world’s trade is carried by sea, the most cost-effective way to move goods en masse, there has yet to be a solution that’s able to connect suppliers, customs brokers, carriers and transportation companies to provide an efficient and reliable service,” said Maximiliano Casal, founder and chief executive of Nowports, in a statement. “This is why we launched Nowports, combining our 10 years of industry expertise to fill this void and are currently working with over 40 customers in the region and growing.”

The company now has offices in Chile, Uruguay, and is planning to expand to Brazil, Colombia, and Peru.

“With platforms, algorithms with AI and integrations, our platform allows companies to take control of their shipments and plan & predict the best timing to move the freight based on the needs of their own company,” said Alfonso De Los Rios, founder, and CTO of Nowports.

As the company looks to expand, it has a strategic roadmap it can follow in  the growth of Flexport, the Silicon Valley startup that has become a billion-dollar business by applying technology to the outdated shipping industry.

The two co-founders of Nowports met at a program at Stanford University, with De los Rios hailing from a family with deep ties to the shipping industry. He and Casal linked up and the two began plotting a way to make the deeply inefficient industry more modern and transparent. To familiarize himself with the market for which he’d be developing a technology, Casal worked in a freight forwarder in Kansas City that had been operating for more than 30 years.

In all, freight providers are getting paid nearly $40 billion per year to move freight into Latin America.

“Alfonso and Max are the ideal founders we look to invest in as they are industry experts and passionate about evolving the industry using technology and automation,” said Adeyemi Ajao, General Partner from Base10. “We are proud to be investors in Nowports alongside our friends at Monashees and look forward to watching the company’s continued growth.”

21 Jun 2019

YouTube confirms a test where the comments are hidden by default

YouTube’s comments section has a bad reputation. It’s even been called “the worst on the internet,” and a reflection of YouTube’s overall toxic culture where creators are rewarded for outrageous behavior — whether that’s tormenting and exploiting their children, filming footage of a suicide victim, promoting dangerous “miracle cures” or sharing conspiracies, to name a few high-profile examples. Now, the company is considering a design change that hides the comments by default.

The website XDA Developers first spotted the test on Android devices in India.

Today, YouTube’s comments don’t have a prominent position on its mobile app. On both iOS and Android devices, the YouTube video itself appears at the top of the screen, followed by engagement buttons for sharing, liking, disliking, downloading and saving the video. Below that are recommendations from YouTube’s algorithm in a section titled “Up Next.” If you actually want to visit the comments, you have to scroll all the way to the bottom of the page.

In the test, the comments have been removed from this bottom section of the page entirely.

Instead, they’ve been relocated to a new section that users can only view after clicking a button.

The new Comments button is found between the Thumbs Down and Share buttons, right below the video.

It’s unclear if this change will reduce or increase user engagement with comments, or if engagement will remain flat — something that YouTube likely wants to find out, too.

On the one hand, comments are hidden unless the user manually taps on the button to reveal them — users won’t happen upon them by scrolling down. On the other hand, putting the comments button behind a click at top of the page instead of forcing users to scroll could make them easier to access.

As XDA Developers reports, when you’ve loaded up this new Comments section, you can pull to refresh the page to see the newly-added comments appear. To exit, you tap the “X” button at the top of the window to close the section.

While it reported the test was underway in Android devices in India, we’ve confirmed it’s also appearing on iOS and is not limited to a particular region. That means it’s something YouTube wants to test on a broader scale, rather than a feature it’s considering for a localized version of its app for Indian users.

The change comes at a time when YouTube’s comments section has been discovered to be more than just the home to bullying, abuse, arguments, and other unhelpful content, but also a tool that was exploited by pedophiles. A ring of pedophiles had communicated through the comments to share videos and timestamps with one another.

YouTube reacted then by disabling comments on videos with kids. More recently, it’s been considering moving kids content to a separate app. (Unfortunately, it will never consider the appropriateness of having built a platform where young children can be put on public display for the whole world to see.)

A YouTube spokesperson confirmed the Comments test, in a statement, but downplayed its importance by referring to it as one of many small experiments the company is running.

“We’re always experimenting with ways to help people more easily find, watch, share and interact with the videos that matter most to them,” the spokesperson told TechCrunch. “We are testing a few different options on how to display comments on the watch page. This is one of many small experiments we run all the time on YouTube, and we’ll consider rolling features out more broadly based on feedback on these experiments.”

21 Jun 2019

Three years after moving off AWS, Dropbox infrastructure continues to evolve

Conventional wisdom would suggest that you close your data centers and move to the cloud, not the other way around, but in 2016 Dropbox undertook the opposite journey. It (mostly) ended its long-time relationship with AWS and built its own data centers.

Of course, that same conventional wisdom would say, it’s going to get prohibitively expensive and more complicated to keep this up. But Dropbox still believes it made the right decision and has found innovative ways to keep costs down.

Akhil Gupta, VP of Engineering at Dropbox, says that when Dropbox decided to build its own data centers, it realized that as a massive file storage service, it needed control over certain aspects of the underlying hardware that was difficult for AWS to provide, especially in 2016 when Dropbox began making the transition.

“Public cloud by design is trying to work with multiple workloads, customers and use cases and it has to optimize for the lowest common denominator. When you have the scale of Dropbox, it was entirely possible to do what we did,” Gupta explained.

Alone again, naturally

One of the key challenges of trying to manage your own data centers, or build a private cloud where you still act like a cloud company in a private context, is that it’s difficult to innovate and scale the way the public cloud companies do, especially AWS. Dropbox looked at the landscape and decided it would be better off doing just that, and Gupta says even with a small team — the original team was just 30 people — it’s been able to keep innovating.

21 Jun 2019

Early-bird pricing ends tonight for TC Sessions: Mobility 2019

The robotaxi’s blowin’ its horn and zooming autonomously down the home stretch. At 11:59 p.m. (PT) on June 21 — that’s tonight, people — we hit the brakes on early-bird pricing for TC Sessions: Mobility 2019. Don’t miss your chance to join us in San Jose, Calif. on July 10 and save a smooth $100. Get your ticket now.

Innovations across multiple technologies — AI, robotics, electric batteries, digital platforms and manufacturing — are transforming mobility and transportation. Join the leading experts, technologists, founders and investors as they discuss the promise, hype and challenges within this nascent revolution.

More than 1,000 attendees are expected for a program-packed day of speakers, panel discussions, workshops and demos. How packed? Here’s the day’s agenda, plus a sample of just some of the presentations we have lined up:

  • Delivering the Future: We’ll talk to Dave Ferguson, co-founder of Nuro, about the self-driving car company’s focused approach to groceries, food and retail goods.
  • Intel’s $15 Billion Bet: Intel bought Mobileye two years ago. As co-founder and CEO Amnon Shashua moves toward launching an autonomous vehicle platform in 2021, we’ll speak with him about his overall vision, Mobileye’s future business pursuits and an update on the AV program.
  • Scooter Wars: Scooters have taken over cities, and there’s no end in sight. Three leaders on the front lines of this battleground — Scoot’s Katie DeWitt, Tony Ho of Segway-Ninebot and JUMP’s Nick Foley — will discuss what’s next for scooters, shared-model sustainability, unit economics and more.

This TC Session is a stellar networking opportunity, and you’ll have extra help cutting through the noise to make the right connections. We’re talking CrunchMatch, TechCrunch’s free business match-making platform. Easily search for like-minded attendees, send and schedule meetings and make the most of your limited time. Learn how CrunchMatch works here.

Don’t miss your chance to connect with the leading minds and makers of your community at TC Sessions: Mobility 2019 on July 10, in San Jose, Calif. And don’t miss your chance to save $100. Buy your early-bird ticket now before the clock runs out tonight at 11:59 p.m. (PT).

Is your company interested in sponsoring or exhibiting at TC Sessions: Mobility? Contact our sponsorship sales team by filling out this form.

21 Jun 2019

Space startup Wyvern wants to make data about Earth’s health much more accessible

The private space industry is seeing a revolution driven by cube satellites, which are affordable, lightweight satellites that are much easier than traditional satellites to design, build and launch. It’s paving the way for new businesses like Wyvern, an Alberta-based startup that provides a very specific service that wouldn’t even have been possible to offer a decade ago: Relatively low-cost access to hyperspectral imaging taken from low-Earth orbit, which is a method for capturing image data of Earth across many more bands than we’re able to see with our eyes or traditional optics.

Wyvern’s founding team, including CEO Chris Robson, CTO Kristen Cote, CFO Callie Lissinna and VP of Engineering/COO Kurtis Broda, had experience building satellites through their schooling, including working on building the first ever satellite in space designed and built in Alberta, Ex-Alta 1. They’ve also developed their own proprietary optical technology to develop the kind of imagery that will best serve the needs of the clients they’re pursuing. Their first target market, for instance, are farmers, who will be able to log into the commercial version of their product and get up-to-date hyperspectral imaging data of their fields, which can help them optimize yield, detect changes in soil makeup that will tell them if they have too little nitrogen, or even help them spot invasive plants and insects.

“We’re doing all sorts of things that directly affect the bottom line farmers,” explained Robson in an interview. “If you can detect them, and you can quantify them, and the farmers can make decisions on how to act and ultimately how to increase the bottom line. A lot of those things you can’t do with multi-spectral [imaging] right now, for example, you can speciate with multi-spectral, so you can’t detect invasive species.”

Multi-spectral imaging, in contrast to hyperspectral imaging, measures light on average in between 3 to 15 bands, while hyperspectral can manage as many as hundreds of adjoining or neighboring bands, which is why it can do more specialist things like identifying the species of animals on the ground in an observed area from a satellite’s perspective.

Hyperspectral imaging is already a proven technology in use around the world for exactly these purposes, but the main way it’s captured is via drone airplanes, which Robson says is much more costly and less efficient than using CubeSats in orbit.

“Drone airplanes are really expensive, and with us, we’re able to provide it for 10 times less than a lot of these drones [currently in use,” he said.

Wyvern’s business model will focus on owning and operating the satellites, and providing access to the data it caters to customers in a way that’s easy for anyone to access and use.

“Our key differentiator is the fact that we allow access to actual actionable information,” Robson said. “Which means that if you want to order imagery, you do it through a web browser, instead of calling somebody up and waiting one to three days to get a price on it, and to find out whether they could even do what you’re asking.”

Robson says that it’s only even become possible and affordable to do this because of advances in optics (“Our optical system allows us to basically put what should be a big satellite into the form factor of a small one without breaking the laws of physics,” Robson told me), small satellites, data storage and monitoring stations, and privatized launches making space accessible through hitching a ride on a launch alongside other clients.

Wyvern will also occupy its own, underserved niche providing this highly specialized info, first to agricultural clients, and then expanding to five other verticals including forestry, water quality monitoring, environmental monitoring and defense. This isn’t something other more generalist satellite imaging providers like Planet Labs will likely be interested in pursuing, Robson said, because it’s an entirely different kind of business with entirely different equipment, clientele and needs. Eventually, Wyvern hopes to be able to open up access to the data it’s gathering even more broadly.

“You have the right to access [information regarding] the health of the Earth regardless of who you are, what government you’re under, what country you’re a part of or where you are in the world,” he said. “You have the right to see how other humans are treating the Earth, and to see how you’re treating the Earth and how your country is behaving. But you also have the right to take care of the Earth, because we’re super predators. We’re the most intelligent species. We are we have we have the responsibility of being stewards of the Earth. And part of that, though, is being able to add almost omniscient of what’s going on in the Earth in the same way that we understand what’s going on in our bodies. That’s that’s what we want for people.”

Right now, Wyvern is very early on the trajectory of making this happen – they’re working on their first round of funding, and have been speaking to potential customers and getting their initial product validation work finalized. But with actual experience building and launching satellites, and a demonstrated appetite for what they want to build, it seems like they’re off to a promising start.

21 Jun 2019

eBay and Facebook told to tackle trade in fake reviews

Facebook and eBay have been warned by the UK’s Competition and Markets Authority (CMA) to do more to tackle the sale of fake reviews on their platforms.

Fake reviews are illegal under UK consumer protection law.

The CMA said today it has found “trouble evidence” of a “thriving marketplace for fake and misleading online reviews”. Though it also writes that it does not believe the platforms themselves are intentionally allowing such content to appear on their sites.

The regulator says it crawled content on eBay and Facebook between November 2018 and June 2019 — finding more than 100 eBay listings offering fake reviews for sale during that time.

Over the same period it also identified 26 Facebook groups where people offered to write fake reviews or where businesses recruited people to write fake and misleading reviews on popular shopping and review sites.

The CMA cites estimates that more than three-quarters of UK Internet users consider online reviews before making a purchase decision — with “billions” of pounds’ worth of people’s spending being influenced by such content. So the incentives driving a market to trade reviews for money is clear.

Commenting in a statement, the CMA’s CEO, Andrea Coscelli, said: “We want Facebook and eBay to conduct an urgent review of their sites to prevent fake and misleading online reviews from being bought and sold.”

“Lots of us rely on reviews when shopping online to decide what to buy. It is important that people are able to trust that reviews are genuine, rather than something someone has been paid to write,” he added. “Fake reviews mean that people might make the wrong choice and end up with a product or service that’s not right for them. They’re also unfair to businesses who do the right thing.”

The regulator says that after it wrote to eBay and Facebook to inform them of its findings they have both “indicated that they will cooperate”.

Facebook also told the CMA that “most” of the 26 groups it identified have now been removed.

The regulator says expects the sites to put measures in place to ensure all the identified content is removed — and stop it from reappearing.

At the time of writing a search of ebay.co.uk for “reviews” returned sellers offering 5 star media reviews, 5 star Google reviews and 5 star Trustpilot reviews as the top three results — one of which was also a sponsored post:

Additional eBay listings included one offering “1/2/3/4/5 Star Freeindex Customer Service Review for business”, priced at £10 and sold by a UK based seller who has been an eBay member since Feb 2011; one 5 star review “on Google” which the seller touts with the line “Boost your business and get new Customers” — at a cost of £2.69; one “100% positive FAST” review for £1; and five 5 Star Reviews on Google priced at £15 — offered by a seller apparently based in Portugal who has been an eBay member since March 2014.

A search of UK Facebook groups returned multiple examples of closed groups where sellers appear to be soliciting reviews, either in exchange for goods and/or payment…

 

Reached for a response to the CMA’s call for measures to be put in place to tackle the illegal trade in fake reviews, Facebook sent us the following statement — attributed to a spokesperson:

Fraudulent activity is not allowed on Facebook, including the trading of fake reviews. We have removed 24 of the 26 groups and pages that the CMA reported to us yesterday and had already removed a number of them prior to the CMA flagging them to us. We know there is more to do which is why we’ve tripled the size of our safety and security team to 30,000 and continue to invest in technology to help proactively prevent abuse of our platform.

An eBay spokesperson also told us:

We have zero tolerance for fake or misleading reviews. We have informed the CMA that all of the sellers they identified have been suspended. The listings have been removed. Listings such as these are strictly against our policy on illegal activity and we will act where our rules are broken. We welcome the report from the CMA and will work closely with them in reviewing its findings.

21 Jun 2019

Northzone’s Paul Murphy goes deep on the next era of gaming

As the gaming market continues to boom, billions of dollars are being invested in new games and new streaming platforms vying to own a piece of the action. Most of the value is accruing to the large incumbents in a space, however, and the entrance of Google and other big tech companies makes it difficult to identify where there are compelling opportunities for entrepreneurs to build new empires.

TechCrunch media analyst Eric Peckham recently sat down with Paul Murphy, Partner at European venture firm Northzone, to discuss Paul’s view of the market and where he is focusing his dollars. Below is the transcript of the conversation (edited for length and clarity):


Eric Peckham: You co-founded the hit mobile game Dots before moving to London and joining Northzone last year. Are you still bullish on investment opportunities in mobile gaming or do you think the market has changed?

Paul Murphy: I’m bullish on mobile gaming–the market is bigger than it has ever been. There’s a whole generation of people that have been trained to play games on mobile phones. So those are things that are very positive.

The challenge is you don’t really have a rising tide moment anymore. The winners have won. And so it’s very, very difficult for someone to enter with new content and build a business that’s as big as Supercell or King, regardless of how good their content is. So while the prize for winning in mobile gaming content big, the likelihood is smaller.

Where I’m spending most of my time is not on content, it’s on components within mobile gaming. We’re looking at infrastructure: different platforms that enable mobile gaming, like Bunch which we invested in.

Their product allows you to do live video and audio on top of mobile games. So we don’t have to take any content risk. We’re betting that this great product will fit into a large inventory ecosystem.

Peckham: New mobile game studios that are launching all seem to fall under the sphere of influence of these bigger companies. They get a strategic investment from Supercell or another company. To your point, it’s tough for a small startup to compete entirely on its own.

Murphy: It’s possible in mobile gaming still but it’s really, really hard now. At the same time, what you’ve seen is the odds of winning are lower. It is hard to reach the same scale when it costs you $5.00 to acquire a user today, whereas when Candy Crush launched, it was $0.05 per user. So it’s almost impossible to achieve King-like scale today.

Therefore, you’re looking at similar content risk with reduced upside, which makes that equation less attractive for venture capital. But it might be perfectly fine for an established company because they don’t need to do the marketing, they have the audience already.

The big gaming companies all struggle with the challenge of how to create the next hit IP. They have this machine that can bring any great game to market efficiently, with a large audience they can cross promote from and capital they can invest to build a big brand quickly. For them, the biggest challenge is getting the best content.

So it’s natural to me that the pendulum has swung towards strategic investors in mobile gaming content. Epic has a fund that they set up with Improbable, Supercell is making direct investments, Tencent has been making investments for years. Even from a content perspective, you’re probably going to see Apple, Google, and Amazon making more content investments in mobile gaming.

Image via Getty Images / aurielaki

Peckham: Does this same market dynamic apply to PC games and console games? Do you see a certain area within gaming where there’s still opportunity for independent startups to create the game itself and find success at a venture scale?

Murphy: The reason we made our investment in Klang Games, which is building an MMO called Seed that people will primarily play through PC, is that while there is content risk–you’re never going to get rid of the possibility that the IP doesn’t fly–if it works, it will be massive…an Earth-shattering level of success. If their vision comes to life, it will be very, very big.

So that one has all the risks that you’d have in any other game studio but the upside is exponentially larger, so the bet makes sense to us. And it so happens that it’s going to be on PC first, where there’s certainly a lot of competition but it’s not as saturated and the monetization methods are healthier than in mobile gaming. In PC, you don’t have to do free-to-play tactics that interfere with the gameplay.

21 Jun 2019

Northzone’s Paul Murphy goes deep on the next era of gaming

As the gaming market continues to boom, billions of dollars are being invested in new games and new streaming platforms vying to own a piece of the action. Most of the value is accruing to the large incumbents in a space, however, and the entrance of Google and other big tech companies makes it difficult to identify where there are compelling opportunities for entrepreneurs to build new empires.

TechCrunch media analyst Eric Peckham recently sat down with Paul Murphy, Partner at European venture firm Northzone, to discuss Paul’s view of the market and where he is focusing his dollars. Below is the transcript of the conversation (edited for length and clarity):


Eric Peckham: You co-founded the hit mobile game Dots before moving to London and joining Northzone last year. Are you still bullish on investment opportunities in mobile gaming or do you think the market has changed?

Paul Murphy: I’m bullish on mobile gaming–the market is bigger than it has ever been. There’s a whole generation of people that have been trained to play games on mobile phones. So those are things that are very positive.

The challenge is you don’t really have a rising tide moment anymore. The winners have won. And so it’s very, very difficult for someone to enter with new content and build a business that’s as big as Supercell or King, regardless of how good their content is. So while the prize for winning in mobile gaming content big, the likelihood is smaller.

Where I’m spending most of my time is not on content, it’s on components within mobile gaming. We’re looking at infrastructure: different platforms that enable mobile gaming, like Bunch which we invested in.

Their product allows you to do live video and audio on top of mobile games. So we don’t have to take any content risk. We’re betting that this great product will fit into a large inventory ecosystem.

Peckham: New mobile game studios that are launching all seem to fall under the sphere of influence of these bigger companies. They get a strategic investment from Supercell or another company. To your point, it’s tough for a small startup to compete entirely on its own.

Murphy: It’s possible in mobile gaming still but it’s really, really hard now. At the same time, what you’ve seen is the odds of winning are lower. It is hard to reach the same scale when it costs you $5.00 to acquire a user today, whereas when Candy Crush launched, it was $0.05 per user. So it’s almost impossible to achieve King-like scale today.

Therefore, you’re looking at similar content risk with reduced upside, which makes that equation less attractive for venture capital. But it might be perfectly fine for an established company because they don’t need to do the marketing, they have the audience already.

The big gaming companies all struggle with the challenge of how to create the next hit IP. They have this machine that can bring any great game to market efficiently, with a large audience they can cross promote from and capital they can invest to build a big brand quickly. For them, the biggest challenge is getting the best content.

So it’s natural to me that the pendulum has swung towards strategic investors in mobile gaming content. Epic has a fund that they set up with Improbable, Supercell is making direct investments, Tencent has been making investments for years. Even from a content perspective, you’re probably going to see Apple, Google, and Amazon making more content investments in mobile gaming.

Image via Getty Images / aurielaki

Peckham: Does this same market dynamic apply to PC games and console games? Do you see a certain area within gaming where there’s still opportunity for independent startups to create the game itself and find success at a venture scale?

Murphy: The reason we made our investment in Klang Games, which is building an MMO called Seed that people will primarily play through PC, is that while there is content risk–you’re never going to get rid of the possibility that the IP doesn’t fly–if it works, it will be massive…an Earth-shattering level of success. If their vision comes to life, it will be very, very big.

So that one has all the risks that you’d have in any other game studio but the upside is exponentially larger, so the bet makes sense to us. And it so happens that it’s going to be on PC first, where there’s certainly a lot of competition but it’s not as saturated and the monetization methods are healthier than in mobile gaming. In PC, you don’t have to do free-to-play tactics that interfere with the gameplay.