Year: 2019

06 Aug 2019

Self-driving truck startup Kodiak Robotics begin deliveries in Texas

A year after coming out of stealth mode with $40 million, self-driving truck startup Kodiak Robotics will begin making its first commercial deliveries in Texas.

Kodiak will open a new facility in North Texas to support it freight operations along with increased testing in the state. The commercial route

There are some caveats to the milestone. Kodiak’s self-driving trucks will have a human safety driver behind the wheel. And it’s unclear how significant this initial launch is; the company didn’t provide details on who its customers are or what it will be hauling.

Kodiak has eight autonomous trucks in its fleet, and according to the company it’s “growing quickly.”

Still, it does mark progress for such a young company, which co-founders Don Burnette and Paz Eshel say is due to its talented and experienced workforce. 

Burnette, who is CEO of Kodiak, was part of the Google self-driving project before leaving and co-founding Otto in early 2016, along with Anthony Levandowski, Lior Ron and Claire Delaunay. Uber would acquire Otto (and its co-founders). Burnette left Uber to launch Kodiak in April 2018 with Eshel, a former venture capitalist and now the startup’s COO.

In August 2018, the company announced it had raised $40 million in Series A financing led by Battery Ventures . CRV, Lightspeed Venture Partners and Tusk Ventures also participated in the round. Itzik Parnafes, a general partner at Battery Ventures, joined Kodiak’s board.

Kodiak is the latest autonomous vehicle company to test its technology in Texas. The state has become a magnet for autonomous vehicle startups, particularly those working on self-driving trucks. That’s largely due to the combination of a friendly regulatory environment and the state’s position as a logistics and transportation hub.

“As a region adding more than 1 million new residents each decade, it is important to develop a comprehensive strategy for the safe and reliable movement of people and goods,” Thomas Bamonte, senior program manager of Automated Vehicles for the North Central Texas Council of Governments, said in a statement. “Our policy officials on the Regional Transportation Council have been very forward-thinking in their recognition of technology as part of the answer, which is positioning our region as a leader in the automated vehicle industry.”

Self-driving truck startup TuSimple was awarded a contract this spring to complete five round trips, for a two-week pilot, hauling USPS trailers more than 1,000 miles between the postal service’s Phoenix and Dallas distribution centers. A safety engineer and driver will be on board throughout the pilot.

Other companies developing autonomous vehicle technology for trucks such as Embark and Starsky Robotics have also tested on Texas roads.

06 Aug 2019

Facebook sues two app developers for click injection ad fraud

Facebook has filed lawsuits against two app developers accused of generating fraudulent revenue using the social media giant’s advertising platform.

The company announced the legal action in a blog post Tuesday.

“The developers made apps available on the Google Play store to infect their users’ phones with malware,” said Jessica Romero, director of platform enforcement and litigation. “The malware created fake user clicks on Facebook ads that appeared on the users’ phones, giving the impression that the users had clicked on the ads.”

The scheme uses a technique known as click injection, which relies on apps fraudulently generating ad clicks without the user’s knowledge to artificially inflate the amount of ad revenue. It’s a problem previously noted by security researchers. Often, developers create junk or easy-to-make apps which get downloaded millions of times, while in the background they’re clicking on invisible ads without the user’s knowledge.

Facebook said in this case two developers, LionMobi — based in Hong Kong, and JediMobi — based in Singapore — generated “unearned payouts” from the social media giant’s advertisement system.

By our count, the app developers have seen more than 207 million installs to date. The apps remain on Google’s app store. Google did not immediately comment.

Facebook said it refunded impacted advertisers.

A Facebook spokesperson did not immediately respond to a request for comment.

06 Aug 2019

BlockFi, which lends money to cryptocurrency holders, just raised $18.3 million led by Valar Ventures

Last year, we told you about a New York-based startup that had begun lending cold hard cash to cryptocurrency holders who don’t want to offload their holdings but also don’t necessarily want so much of their assets tied up in cryptocurrencies.

Today, that two-year-old company, BlockFi, is announcing $18.3 million in Series A funding led by Peter Thiel’s Valar Ventures, with participation from Winklevoss Capital, Morgan Creek Digital, Akuna Capital, and earlier backers Galaxy Digital Ventures and ConsenSys Ventures.

Apparently, BlockFi is gaining some traction.

Last year, after raising $1.5 million in seed funding from ConsenSys Ventures, SoFi and Kenetic Capital, it secured $50 million led by Galaxy Digital Ventures (the digital currency and blockchain tech firm founded by famed investor Mike Novogratz) that is used to loan out cash to customers who use their bitcoin and ethereum holdings as collateral.

The minimum deposit required: $20,000 worth of cryptocurrency.

According to founder Zac Prince, who talked with Bloomberg about BlockFi’s newest round, enough people are now using those loans that BlockFi has seen its monthly revenue grow more than 10 times since January.

No doubt the uptick in loans correlates with the rebound in Bitcoin’s value, which was priced as low as $3,400 earlier this year but is now valued at roughly $11,400.

Prince also told the outlet that he expects annual revenue to hit eight figures by the end of this year. In startup land, that means it’s time to roll out new money-making services. BlockFi already introduced a savings account product earlier this year that it says enables investors to earn interest on their assets. They are not backed by the FDIC, though the company says it “operates with a focus on compliance with US laws and regulations.” And while it won’t say exactly what’s coming up next, it says more products are being added to its existing platform in a statement about the new round.

Prince previously spent roughly five years in consumer lending and began investing his own money in crypto in early 2016.

He told us last year that his “lightbulb moment” for the company came as he was in the process of getting a loan for an investment property. Instead of using a traditional bank, he decided to list his crypto holdings to see what would happen, and the response was overwhelming. “I realized that there was no debt or credit outside of [person-to-person] margin lending on a few exchanges, and I had the feeling that this was a big opportunity that I was well-suited to go after.”

Other companies providing crypto-backed loans that are issued in fiat currencies include CoinLoan, SALT Lending, Nexo.io, and Celsius Network, among others.

06 Aug 2019

Quantum Computing is coming to TC Sessions: Enterprise on Sept. 5

Here at TechCrunch, we like to think about what’s next and there are few technologies quite as exotic and futuristic as quantum computing. After what felt like decades of being ‘almost there,’ we now have working quantum computers that are able to run basic algorithms, even if only for a very short time. As those times increase, we’ll slowly but surely get to the point where we can realize the full potential of quantum computing.

For our TechCrunch Sessions: Enterprise event in San Francisco on September 5, we’re bringing together some of the sharpest minds from some of the leading companies in quantum computing to talk about what this technology will mean for enterprises (p.s. early-bird ticket sales end this Friday). This could, after all, be one of those technologies where early movers will gain a massive advantage over their competitors. But how do you prepare yourself for this future today, while many aspects of quantum computing are still in development?

IBM’s quantum computer demonstrated at Disrupt SF 2018.

Joining us on stage will be Microsoft’s Kyrsta Svore, who leads the company’s Quantum efforts, IBM’s Jay Gambetta, the principal theoretical scientist behind IBM’s quantum computing effort, and Jim Clark, the director of quantum hardware at Intel Labs.

That’s pretty much a who-is-who of the current state of quantum computing, even though all of these companies are at different stages of their quantum journey. IBM already has working quantum computers, Intel has built a quantum processor and is investing heavily into the technology, while Microsoft is trying a very different approach to the technology that may lead to a breakthrough in the long run but that is currently keeping it from having a working machine. In return, though, Microsoft has invested heavily into building the software tools for building quantum applications.

During the panel, we’ll discuss the current state of the industry, where quantum computing can already help enterprises today and what they can do to prepare for the future. The implications of this new technology also go well beyond faster computing (for some use cases), there’s also the security issues that will arise once quantum computers become widely available and current encryption methodologies become easily breakable.

The early-bird ticket discount ends this Friday, August 9. Be sure to grab your tickets to save to get the max $100 savings before prices go up. If you’re a startup in the enterprise space, we still have some startup demo tables available! Each demo table comes with 4 tickets to the show and a high-visibility exhibit space to showcase your company to attendees – learn more here.

06 Aug 2019

The crossroads between ethics and technology

Imagine a growing Israeli startup whose product is deepfake videos that are based on artificial intelligence and appear to be utterly authentic. The company’s marketing efforts, according to its website, are conducted by two departments — “consulting for corporations” and “consulting for governments and politicians.” In addition, “the company helps its customers uncover their opponents’ weak spots and make them go viral.”

Finally, imagine that the company describes its employees as “highly experienced men and women, graduates of elite units of the IDF intelligence branch and Israeli government intelligence agencies,” and that its technology is based on developments by these same security agencies. On top of all of this, of course its board of directors includes former heads of Mossad and the Israeli General Security Service (Shin Bet), as well as retired senior army officers.

When you are done imagining this, it’s time to think about the private intelligence firm Black Cube. Various investigative reports published recently in the media in Israel and abroad paint a troubling picture — not because the company is violating the law, but because of its lack of ethics and internal moral code.

According to these reports, Black Cube does not work only for giant corporations that want to dig up incriminating information about their competitors, it also has contracts with foreign governments that seek to repress political opponents. It not only helps governments find those who are evading their financial obligations, but also to harass women who complain about crimes of sexual violence. Not only does it identify those who defame rival businesses, but it also frightens off regulators and watchdogs, human rights activists and journalists

Black Cube, of course, is not alone in this. Have you ever heard of NSO, whose flagship product, Pegasus, can turn any cellphone into a mobile spying device? Or Glassbox and its product line? The list of such companies is long, and most of them are all but unknown. All of them are based on exploiting the skills, technology and professional culture created in the Israeli security establishment.

There is nothing new about former members of the Israeli defense and security agencies selling weapons and military know-how. But what has been added in recent years is the technology twist. Former high-ranking security officials and intelligence operatives, including from the renowned 8200 unit, strike out on their own. Some of them find employment in firms that break new ground, improve the world and better society; but others, in their greed, are willing to sell spyware and offensive cyber-weapons to dictators in Africa who need them to stamp out criticism and revolts.

This is also not a situation unique to Israel. Veterans of western security agencies worldwide face similar dilemmas once they retire from their careers in public service and seek their next professional challenges. The startup nation however, is based, to a large extent, on veterans of Israel’s high-tech units in the defense establishment. While this association certainly does bring honor, prestige, revenue and jobs to the Israeli economy, two issues resulting from this relationship need to be considered.

Technology can make the world a better place — or much worse.

The first relates to ethics. If anything is clear today in the world of technology, it is the need to include ethical concerns when developing, distributing, implementing and using technology. This is all the more important because in many domains there is no regulation or legislation to provide a clear definition of what may and may not be done. There is nothing intrinsic to technology that requires that it pursue only good ends. The mission of our generation is to ensure that technology works for our benefit and that it can help realize social ideals. The goal of these new technologies should not be to replicate power structures or other evils of the past. 

Startup nation should focus on fighting crime and improving autonomous vehicles and healthcare advancements. It shouldn’t be running extremist groups on Facebook, setting up “bot farms” and fakes, selling attackware and spyware, infringing on privacy and producing deepfake videos.

The second issue is the lack of transparency. The combination of individuals and companies that have worked for, and sometimes still work with, the security establishment frequently takes place behind a thick screen of concealment. These entities often evade answering challenging questions that result from the Israeli Freedom of Information law and even recourse to the military censor — a unique Israeli institution — to avoid such inquires.

How can we know when the government permits to be sold, and to whom, technologies that were developed by the private sector but that have security implications? How can we know who intervenes when a foreign country in Europe arrests spies sent by a commercial firm, or when a Gulf state is targeted by an Israeli high-tech company? How can we know when the companies are serving the national interest, and their own bottom line — and who gets to decide this, anyway? And what is the impact on the defense establishment itself with the migration of its stars directly from national service to high tech? What effect does this have on the state’s decision-making process about which technologies to invest in, whom it trains and what it purchases?

Technology can make the world a better place — or much worse. Sometimes the results are mixed. We are all acquainted with app developers who make their terms of use impossibly complicated so they can invade our privacy; but not everyone is in the business of developing spyware or cyberattack technologies. The challenges created by social media platforms are well known, but not everyone uses them to manipulate others and to run an army of trolls to intimidate certain individuals.

Israel, and its tech business community, must carefully consider the negative ramifications of excelling in technology while disregarding moral and ethical questions. The “startup nation” must conduct extensive discussions on the crossroads between ethics and technology so as to endow the next generation with the strong moral compass necessary to navigate in this new world. The unanswered question at hand is how Israel, and similar western democracies, can grapple with the growing phenomenon of technological entities whose sole purpose is profit without any qualms about the moral implications of their products and services.

06 Aug 2019

What tech gets right about healthcare

Why is tech still aiming for the healthcare industry? It seems full of endless regulatory hurdles or stories of misguided founders with no knowledge of the space, running headlong into it, only to fall on their faces.

Theranos is a prime example of a founder with zero health background or understanding of the industry — and just look what happened there! The company folded not long after founder Elizabeth Holmes came under criminal investigation and was barred from operating in her own labs for carelessly handling sensitive health data and test results.

But sometimes tech figures it out. It took years for 23andMe to breakthrough FDA regulations — it’s since more than tripled its business and moved into drug discovery.

And then there’s Oscar Health, which first made a mint on Obamacare and has since ventured into Medicare. Combined with Bright, the two health insurance startups have pulled in a whopping $3 billion so far.

It’s easy to shake our fists at fool-hardy founders hoping to cash in on an industry that cannot rely on the old motto “move fast and break things.” But it doesn’t have to be the code tech lives or dies by.

So which startups have the mojo to keep at it and rise to the top? Venture capitalists often get to see a lot before deciding to invest. So we asked a few of our favorite health VC’s to share their insights.

Phin Barnes – First Round Capital

06 Aug 2019

Female founders: Apply to the All Raise AMA to win a free Expo Pass to Disrupt SF

Shouting out to all the fierce female founders. Have you applied to participate in the All Raise “ask me anything” (AMA) sessions at Disrupt SF 2019? No? Women, it’s time to act. Apply for an AMA session by the August 30 deadline and you could win a free Expo Only Pass.

You heard that right. We have 30 free Expo Only passes, and we’ll give them away at random to women founders who get accepted to the All Raise program at Disrupt SF 2019.

All Raise, a startup nonprofit committed to accelerating female founder success, will host a day-long AMA event in a dedicated area in Startup Alley (aka the Disrupt expo floor). They’ll schedule a series of 30-minute sessions throughout the day for roughly 100 women founders.

Each session consists of three founders and one of the All Raise community’s leading VCs. You’ll have the opportunity to ask in-depth questions about the next raise, key hires, the competition or any other business issues that keep you up at night. You can learn plenty from experienced, successful investors like these:

  • Dayna Grayson, NEA
  • Susan Lyne, BBG
  • Shauntel Garvey, Reach Capital
  • Eurie Kim, Forerunner
  • Jess Lee, Sequoia
  • Kara Nortman, Upfront
  • Sara Guo, Greylock,
  • Anarghya Vardhana, Maveron
  • Eva Ho, Fika Ventures
  • Sarah Smith, Bain Capital Ventures
  • Jess Lin, Work-Bench

If you’re a U.S.-based woman founder — and you’ve raised at least $250,000 in a seed, A or B round — you can apply for an AMA session. All Raise gives special consideration to founders from underrepresented groups (e.g. Black, Latinx or LGBTQIA women).

All Raise will review the applications and notify the founders. Acceptance is based on availability for session spots, investor fit with industry sector and company stage, as well as demand for certain categories.

If All Raise selects you to participate — and you don’t happen to win a free Expo Only pass — simply buy any pass to Disrupt SF (including Expo Only). All Raise will send an email to let you know what time they’ve scheduled your session.

Don’t miss this rare opportunity to get answers and advice from some of the best investors around. Free admission to Disrupt SF 2019 and free investor advice — that’s a potent combination. Beat the August 30 deadline and apply for an All Raise AMA session today!

Is your company interested in sponsoring or exhibiting at Disrupt San Francisco 2019? Contact our sponsorship sales team by filling out this form.

06 Aug 2019

Ousted founder Julia Angwin returns to The Markup

The yet-to-launch tech journalism site The Markup has had a bumpy 2019 — co-founder and editor-in-chief Julia Angwin was fired, prompting the departure of the majority of the editorial staff. Soon after, the The Markup’s other founders (whose disputes with Angwin apparently led to her ouster) left the company themselves.

Now things may be back on track, with Angwin returning to the EIC role, and the six staffers who’d quit in protest returning as well.

In fact, a New York Times story about Angwin’s reinstatement suggests that there’s been a surprising amount of continuity behind the scenes, with The Markup continuing to pay Angwin and her staff while they continued to work on articles and meet in Angwin’s living room.

In addition to announcing Angwin’s return, The Markup says it has hired former BuzzFeed vice president and associate general counsel Nabiha Syed to serve as president, along with Evelyn Larrubia, who will be come managing editor for investigations.

“Technology is shaping our world faster than most people can keep up, before we can digest the implications of any of it,” Angwin said in the announcement. “We believe our data-driven approach to tech accountability journalism will bring facts to this emotional debate. And I can’t think of two more accomplished leaders in their fields than Nabiha and Evelyn to join me in the venture.”

The plan is for Angwin and Syed to report to a not-yet-appointed independent board of directors, and for the site to start publishing by the end of 2019.

When The Markup made a splash with its kickoff last year, it wasn’t just for the involvement of Angwin (a Pulitzer Prize-winning investigative reporter from The Wall Street Journal and Pro Publica), but also because its funding included a $20 million donation from Craigslist founder Craig Newmark.

The recent controversy prompted the site’s backers to declare that it had become necessary to reassess our support,” but today’s announcement closes with this note: “The Markup remains supported by a coalition of major foundations, including Craig Newmark Philanthropies, the Ford Foundation, the John D. and Catherine T. MacArthur Foundation, the Edwin Barbey Charitable Trust, the Ethics and Governance of Artificial Intelligence Initiative, and the Open Society Foundations.”

06 Aug 2019

Google Images on desktop adds a side panel and feels more purpose-driven

If you’re browsing Google Image search results today, you might notice a new interface element: A sticky side panel that displays any images you click on, providing a closer look at the specific image you want to see, including related images, additional info like ratings, price and in-stock status, ingredients and cooking times, depending on whether you’re searching for products, recipes or something else.

The new side bar replaces a full-width, in-column interface element, with the advantage that the new interface allows you to continue to browse the image result thumbnails returned on the left. Clicking on any other images will replace the one in the sidebar, but you can easily navigate back and forth with your browser’s built-in navigation features, or you can page through the results in sequence using the right and left arrow keys.

These work already for a lot of existing results and products, but developers who want to ensure their product image results likewise provide this info in a way that means Google’s search engine will pick them up can reference this developer documentation to find out how.

[gallery ids="1865212,1865213,1865214"]

Overall, even though this is not a massive change from what came before, it feels directionally like a big deal: Google has been iterating in a very Pinterest-like direction with image search in general, but this feels functionally like a mature product aimed squarely at comparison shopping, hobbyist cooks, decorators and designers. It’s a very different product from what Images used to be, and that probably affords Google a lot more opportunity in terms of how it monetizes image search in future.

06 Aug 2019

72 hours left on early-bird pricing to TC Sessions: Enterprise 2019

Synchronize your Fitbits, people. You have 72 hours left to get your fiscal fitness on. Three days to save $100 on tickets to TC Sessions: Enterprise 2019 in San Francisco on September 5. Buy your early-bird ticket by August 9 at 11:59 p.m. (PT) and then go back to counting your steps.

We say with confidence that no tech category’s more competitive than enterprise software. The gigantic, $500 billion market generates a constant flow of multibillion-dollar acquisitions every year. And it takes a special kind of fierce early-stage enterprise startup to jump in, invent new services and shake up old-school incumbents.

More than 1,000 attendees will be in the house to explore this rich, complex topic, TechCrunch-style. Our editors will interview top titans in the enterprise world — like SAP CEO, Bill McDermott; Atlassian co-founder, Scott Farquhar; and Jocelyn Goldfein, managing director at Zetta Venture Partners. They’ll also tap rising founders of upstart startups.

The enterprise just can’t get enough of AI, but large companies face a huge challenge: packaging all that data in machine learning models — a necessary element for using AI to automate processes. That’s why we’re especially excited that Bindu Reddy, co-founder and CEO at RealityEngines, will join us onstage.

Her company aims to create research-driven cloud services to reduce some of the inherent complexity of working with AI tools. Reddy, along with investor Jocelyn Goldfein, a managing director at Zetta Venture Partners, and others will talk about the growing role of AI in the enterprise.

That’s just the tip of the Enterprise iceberg. More than 20 interviews, panel discussions, Q&As and breakout sessions will cover a wide range of technologies, including intelligent marketing automation, the cloud, Kubernetes and even quantum and blockchain. Peruse the agenda to see what else we have in store for you.

Early-bird pricing for TC Sessions: Enterprise 2019 ends in just 72 hours. Buy your ticket by August 9 at 11:59 p.m. (PT) and you’ll save $100. But wait, there’s more — for every ticket you buy, we’ll register you for a free Expo-only pass to TechCrunch Disrupt SF 2019. Now that’s fiscal fitness.

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