Year: 2020

Apple’s earnings show the impact of COVID-19, NVIDIA’s top scientist shares an open source ventilator design and Amazon anticipates big spending in the coming months.

Here’s your Daily Crunch for May 1, 2020.

1. iPhone sales are down, ahead of uncertain times for the industry

Apple device sales have taken a hit, but the company’s services are doing swell, according to its latest earnings report. The iPhone, the longtime cornerstone of the company’s hardware portfolio, hit $28.96 billion in revenue for Q2, down from $31.1 billion from this time last year. The iPad and Mac lines saw drops for the quarter, as well.

In fact, a new Canalys report suggests that smartphone sales are down 13% globally.

2. NVIDIA’s top scientist develops open-source ventilator that can be built with $400 in readily-available parts

The mechanical ventilator design developed by NVIDIA’s Bill Daily can be assembled quickly, using off-the-shelf parts with a total cost of around $400 – making it an accessible and affordable alternative to traditional, dedicated ventilators which can cost $20,000 or more.

3. Amazon Q1 beats on net sales of $75.5B but posts net income of $2.5B, down $1B on a year ago

The company’s net sales were up 26% year-year-over. Of those sales, $41 billion was attributable to product sales and $33 billion to services (which includes AWS, but also streaming and other non-physical goods). CEO Jeff Bezos acknowledged the challenges the company is facing, but he also reiterated that it plans to double down on spending in Q2.

4. Walmart is piloting a pricier 2-hour ‘Express’ grocery delivery service

Walmart now hopes to capitalize on the increased demand for speedier delivery with the introduction of a new service that allows consumers to pay to get to the front of the line. The retailer confirmed today it’s launching a new Walmart Grocery service called “Express,” which promises orders in two hours or less for an upcharge of $10 on top of the usual delivery fee.

5. 5 tips for starting a business with a stranger

Co-founder and CEO Sam Pillar argues that his startup Jobber is proof that starting a company with a stranger isn’t just doable, it can even be an advantage. That’s because it allowed them to arrive at big decisions and have productive debate without the baggage and bias of a pre-existing relationship, establishing Jobber’s feedback-oriented culture. (Extra Crunch membership required.)

6. Cliqz pulls the plug on a European anti-tracking alternative to Google search

Cliqz, a Munich-based anti-tracking browser with private search baked in that has sought to offer a local alternative to Google powered by its own search index, is shutting down — claiming this arm of its business has been blindsided by the coronavirus crisis. However, the company is not closing down entirely, and a spokesman confirmed that Ghostery will continue.

7. JetBrains Academy for learning code launches for free during COVID-19 pandemic

Most online coding courses, either free or paid, essentially suggest you download a project or copy-paste code from their snippets going through their courses. Unlike JetBrains, they tend not to include Integrated Development Environments, which are more helpful in the learning process.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

SpaceX is getting ready to launch its first-ever spacecraft with humans on board, the Commercial Crew Demo-2 mission (DM-2) that will take-off from Florida on May 27. There are still a couple things remaining to finish up prior to flight, including a final parachute system test that’s happening later on today. The company also posted a video recap of its most recent uncrewed Crew Dragon flight, the in-flight escape demonstration that it flew on January 19.

The video provides a look at the processes involved in the test, including a look at mission control, with astronauts Bob Behnken and Doug Hurley looking on during the flight from the ground. You can see the SpaceX Falcon 9 launch with the Crew Dragon attached, as well as watch it explode in a ball of fire (as intended) during the early emergency separation. Then, watch as the capsule itself speeds descends safety back to the ocean where it’s recovered by a SpaceX vessel at sea.

This is a demonstration of a key system that’s designed as a safety measure, to be used only in the unlikely event of a major malfunction of the rocket during the takeoff phase, but after the spacecraft has left the ground. The system works by quickly and automatically propelling the astronaut-carrying Crew Capsule away from the booster and second stage at a very high speed, to ensure the people aboard are at a safe distance in case of any explosions.

Along with a ground escape system for quickly vacating the capsule and launch area before takeoff, there are a number of safety measures required by NASA for any human spaceflight from U.S. soil with astronauts on board. SpaceX has so far demonstrated that these systems are ready to a degree that has satisfied the agency, and now has only a number of pre-flight checks and run-throughs to get through before the historic May 27 mission.

SpaceX is getting ready to launch its first-ever spacecraft with humans on board, the Commercial Crew Demo-2 mission (DM-2) that will take-off from Florida on May 27. There are still a couple things remaining to finish up prior to flight, including a final parachute system test that’s happening later on today. The company also posted a video recap of its most recent uncrewed Crew Dragon flight, the in-flight escape demonstration that it flew on January 19.

The video provides a look at the processes involved in the test, including a look at mission control, with astronauts Bob Behnken and Doug Hurley looking on during the flight from the ground. You can see the SpaceX Falcon 9 launch with the Crew Dragon attached, as well as watch it explode in a ball of fire (as intended) during the early emergency separation. Then, watch as the capsule itself speeds descends safety back to the ocean where it’s recovered by a SpaceX vessel at sea.

This is a demonstration of a key system that’s designed as a safety measure, to be used only in the unlikely event of a major malfunction of the rocket during the takeoff phase, but after the spacecraft has left the ground. The system works by quickly and automatically propelling the astronaut-carrying Crew Capsule away from the booster and second stage at a very high speed, to ensure the people aboard are at a safe distance in case of any explosions.

Along with a ground escape system for quickly vacating the capsule and launch area before takeoff, there are a number of safety measures required by NASA for any human spaceflight from U.S. soil with astronauts on board. SpaceX has so far demonstrated that these systems are ready to a degree that has satisfied the agency, and now has only a number of pre-flight checks and run-throughs to get through before the historic May 27 mission.

Ali Amin-Javaheri grew up in the chemicals business.

His father had worked for Iran’s state-owned chemical company and when the family fled the country in the nineteen eighties during the Iran-Iraq war, they first settled in Houston where employers welcomed the senior Amin-Jahaveri’s experience.

Houston in the 80s was dominated by the petrochemicals industry and by the time the family later relocated to Washington State, Amin-Jahaveri was already deeply steeped in a world of covalent bonds, chemical cracking, and the molecular coupling and decoupling of matter.

For the former Texas chemical kid, moving to tech-heavy, rain-soaked Washington, dominated at the time by Microsoft, was a bit of a shock, the founder recalled. But it was the 2000s and everyone was in tech so Amin-Jahaveri figured that’d be his path too.

Those two worlds collided for the young University of Washington graduate in his very first job — his only job before launching his first startup — as a programmer and developer at Chempoint.

“Completely through happenstance I was walking around a certain part of Seattle and I walked by this building and it had all these logos outside the office. I saw this logo for a company called Chempoint and I was instantly intrigued,” Amin-Jahaveri said. “I walked up to the receptionist and asked what they were doing.”

In the summer of 2001, Amazon was an online bookseller a little over seven years old, the dot-com boom hadn’t gone completely bust quite yet and business-to-business marketplaces were a hot investment.

“It was a startup with just a handful of folks,” said Amin-Jahaveri. “There wasn’t a business model in place, but the intent was to build a marketplace for chemicals… The dot-com boom was happening and everything was moving on line and the chemicals industry likely will as well.”

Fifteen years later, Chempoint is one of the last remaining companies in a market that once boasted at least fifteen competitors — and the chemicals industry still doesn’t have a true online marketplace. Until (potentially) now, with the launch of Amin-Jahaveri’s first startup — Knowde.

A volumetric flask, used during the process of determining phosphorus content in crude edible oil, sits in a laboratory of the quality assurance department at the Ruchi Soya Industries Ltd. edible oil refinery plant in Patalganga, India, on Tuesday, June 18, 2013. Photographer: Dhiraj Singh/Bloomberg via Getty Images

For the vast majority of Americans, the chemicals industry remains a ubiquitous abstraction. Consumers have a direct relationship with the energy business through the movements of prices at the pump, but the ways in which barrels of oil get converted into the plastics, coatings, films, flavors, fillings, soaps, toothpastes, enamels and unguents that touch everyone’s daily life are a little bit less obvious.

It’s a massive industry. The U.S. accounted for 17% of the global chemicals market in 2017 and that percentage amounted to a staggering $765 billion in sales. Worldwide there are thousands of chemicals companies selling hundreds of different specialty chemicals each and all contributing to a total market worth trillions of dollars.

“The market is $5 trillion,” said Amin-Jahaveri. “Just to be super clear about that.. It’s $5 trillion worth of transactions happening every year.”

It’s no secret that venture capitalists love marketplaces. Replacing physical middlemen with electronic ones offers efficiencies and economies of scale that have a cold logic and avoid the messiness of human contact. For the past twenty years, different entrepreneurs have cropped to tackle creating systems that could connect buyers on one side with sellers on another — and the chemicals industry has been investors’ holy grail since Chempoint made its pitch to the market in 2001.

“The chemicals industry is the most interesting of all of them. It’s the biggest. It’s also the most fragmented,” said Sequoia partner Shaun Maguire. “There were three companies in the world that all did about $90 billion in sales and none of those three companies did more than 1.6% of sales of the entire industry.” 

Those kinds of numbers would make any investor’s jaw drop. And several firms tried to make a pitch for the hotly contested financing round for Knowde. Maguire first heard that there looking for funds to pursue the creation of the first true marketplace business for the chemicals industry through a finance associate at Sequoia, Spencer Hemphill.

Hemphill knew an early Knowde investor named Ian Rountree at Cantos Ventures and had heard Rountree talk about the new company. He flagged the potential deal to Maguire and another Sequoia partner. It only took one hour for Maguire to be blown away by Amin-Jahaveri’s pedigree in the industry and his vision for Knowde.

From that initial meeting in September to the close of the company’s $14 million Series A round on March 11 (the day the markets suffered their worst COVID-19-related losses), Maguire was tracking the company’s progress. Other firms in the running for the Knowde deal included big names like General Catalyst, according to people with knowledge of the process.

Sequoia wound up leading the Series A deal for Knowde, which also included previous investors Refactor Capital, 8VC, and Cantos Ventures.

The tipping point for Maguire was the rapid adoption and buy-in from the industry when Knowde flipped the switch on sales in early January.

An employee of International Flavors and Fragrances (IFF) picks up perfume components on December 8, 2016 at the company’s laboratory in Neuilly-sur-Seine, near Paris. / AFP / PATRICK KOVARIK (Photo credit should read PATRICK KOVARIK/AFP via Getty Images)

For at least the past fifty years, the modern chemicals industry has been defined — and in some ways constrained — by its sales pitches. There are specialty manufacturers who have hundreds of chemicals that they’ve made, but the knowledge of what those chemicals can do is often locked inside research labs. The companies rely on distributors, middlemen, and internal sales teams to get the word out, according to Maguire and Amin-Jahaveri.

“The way that things are done is still through field sales teams and product catalogs and brochures and face to face meetings and all that stuff,” said Amin-Jahaveri. “This industry has not evolved as quickly as the rest of the world… And we always knew that something has got to give.”

One selling point for Knowde is that it breaks that logjam, according to investors like Maguire.

“One of the references said that they had a bunch of legacy flavors from the seventies,” Maguire said. “It was a  Madagascar Vanilla that none of their sales people had tried to sell for 25 years… By putting them on Knowde the sales numbers had gone up over 1,000%… That company does over $5 billion a year in sales through flavors.”

The change happened as the old guard of executives began aging out of the business, according to Amin-Jahaveri. “Between 2002 and 2012 nothing happened.. There was no VC money thrown at any type chemical company and then it started changing a little bit,” he said. “The first domino was the changing age demographic… these consumer product companies kept getting younger.”

Amin-Jahaveri’s previous company grew to $400 million in revenue selling technology and services to the chemicals industry. It was back-end software and customer relationship tools that the industry had never had and needed if it were to begin the process of joining the digital world. Knowde, according to Amin-Jahaveri, is the next phase of that transition.

“Our plan is to connect the chemical producers directly with the buyers,” Amin-Jahaveri said. “And provide all the plumbing and storefronts necessary to manage these things themselves.”

All that Knowde needed to do was collate the disparate data about what chemicals small manufacturers were making and had in stock and begin listing that information online. That transparency of information used to be more difficult to capture, since companies viewed their product catalog as an extension of their intellectual property — almost a trade secret, according to Amin-Jahaveri.

Once companies began listing products online, Amin-Jahaveri and his team could go to work creating a single, searchable taxonomy that would allow outsiders to find the materials they needed without having to worry about differences in descriptions.

Knowde has broken down the chemicals industry into ten different verticals including: food, pharmaceuticals, personal care, houseware goods, industrial chemicals. The company currently operates in three different verticals and plans to extend into all ten within the year.

Amin-Jahaveri knows that he’s not going to get a meaningful chunk of business from the huge chemical manufacturers like BASF or Dow Chemical that pump out thousands of tons of commodity chemicals, those deals only represent $2 trillion of the total addressable market.

That means another $3 trillion in sales are up for grabs for the company Amin-Jahaveri founded with his partner Woyzeck Krupa.

While the opportunity is huge, the company — like every other new business launching in 2020 — is still trying to do business in the middle of the worst economic collapse in American history. However, Amin-Jahaveri thinks the new economic reality could actually work in Knowde’s favor.

“It’s going to be one more trigger event for these chemical companies that they have to go online,” he said. The personal relationships that drove much of the sales for the chemicals business before have dried up. No more conferences and events means no more opportunities to glad-hand, backslap, and chat over drinks at the hotel bar. So these companies need to find a new way to sell.

Maguire sees another benefit to the movement of chemical catalogs into an online marketplace, and that’s internal transparency within chemical companies.

“Even the biggest companies in the world do not have an internal search feature even for their own chemicals,” said Maguire. “I talked to two of the biggest companies in the world. In the case of one chemist who is a friend of mine. If you are trying to formulate some new concoction how do you find what chemicals you have in the company? If it’s in my division it’s pretty easy.. If I need chemicals from another division… there’s no way to search it right now.”

Ali Amin-Javaheri grew up in the chemicals business.

His father had worked for Iran’s state-owned chemical company and when the family fled the country in the nineteen eighties during the Iran-Iraq war, they first settled in Houston where employers welcomed the senior Amin-Jahaveri’s experience.

Houston in the 80s was dominated by the petrochemicals industry and by the time the family later relocated to Washington State, Amin-Jahaveri was already deeply steeped in a world of covalent bonds, chemical cracking, and the molecular coupling and decoupling of matter.

For the former Texas chemical kid, moving to tech-heavy, rain-soaked Washington, dominated at the time by Microsoft, was a bit of a shock, the founder recalled. But it was the 2000s and everyone was in tech so Amin-Jahaveri figured that’d be his path too.

Those two worlds collided for the young University of Washington graduate in his very first job — his only job before launching his first startup — as a programmer and developer at Chempoint.

“Completely through happenstance I was walking around a certain part of Seattle and I walked by this building and it had all these logos outside the office. I saw this logo for a company called Chempoint and I was instantly intrigued,” Amin-Jahaveri said. “I walked up to the receptionist and asked what they were doing.”

In the summer of 2001, Amazon was an online bookseller a little over seven years old, the dot-com boom hadn’t gone completely bust quite yet and business-to-business marketplaces were a hot investment.

“It was a startup with just a handful of folks,” said Amin-Jahaveri. “There wasn’t a business model in place, but the intent was to build a marketplace for chemicals… The dot-com boom was happening and everything was moving on line and the chemicals industry likely will as well.”

Fifteen years later, Chempoint is one of the last remaining companies in a market that once boasted at least fifteen competitors — and the chemicals industry still doesn’t have a true online marketplace. Until (potentially) now, with the launch of Amin-Jahaveri’s first startup — Knowde.

A volumetric flask, used during the process of determining phosphorus content in crude edible oil, sits in a laboratory of the quality assurance department at the Ruchi Soya Industries Ltd. edible oil refinery plant in Patalganga, India, on Tuesday, June 18, 2013. Photographer: Dhiraj Singh/Bloomberg via Getty Images

For the vast majority of Americans, the chemicals industry remains a ubiquitous abstraction. Consumers have a direct relationship with the energy business through the movements of prices at the pump, but the ways in which barrels of oil get converted into the plastics, coatings, films, flavors, fillings, soaps, toothpastes, enamels and unguents that touch everyone’s daily life are a little bit less obvious.

It’s a massive industry. The U.S. accounted for 17% of the global chemicals market in 2017 and that percentage amounted to a staggering $765 billion in sales. Worldwide there are thousands of chemicals companies selling hundreds of different specialty chemicals each and all contributing to a total market worth trillions of dollars.

“The market is $5 trillion,” said Amin-Jahaveri. “Just to be super clear about that.. It’s $5 trillion worth of transactions happening every year.”

It’s no secret that venture capitalists love marketplaces. Replacing physical middlemen with electronic ones offers efficiencies and economies of scale that have a cold logic and avoid the messiness of human contact. For the past twenty years, different entrepreneurs have cropped to tackle creating systems that could connect buyers on one side with sellers on another — and the chemicals industry has been investors’ holy grail since Chempoint made its pitch to the market in 2001.

“The chemicals industry is the most interesting of all of them. It’s the biggest. It’s also the most fragmented,” said Sequoia partner Shaun Maguire. “There were three companies in the world that all did about $90 billion in sales and none of those three companies did more than 1.6% of sales of the entire industry.” 

Those kinds of numbers would make any investor’s jaw drop. And several firms tried to make a pitch for the hotly contested financing round for Knowde. Maguire first heard that there looking for funds to pursue the creation of the first true marketplace business for the chemicals industry through a finance associate at Sequoia, Spencer Hemphill.

Hemphill knew an early Knowde investor named Ian Rountree at Cantos Ventures and had heard Rountree talk about the new company. He flagged the potential deal to Maguire and another Sequoia partner. It only took one hour for Maguire to be blown away by Amin-Jahaveri’s pedigree in the industry and his vision for Knowde.

From that initial meeting in September to the close of the company’s $14 million Series A round on March 11 (the day the markets suffered their worst COVID-19-related losses), Maguire was tracking the company’s progress. Other firms in the running for the Knowde deal included big names like General Catalyst, according to people with knowledge of the process.

Sequoia wound up leading the Series A deal for Knowde, which also included previous investors Refactor Capital, 8VC, and Cantos Ventures.

The tipping point for Maguire was the rapid adoption and buy-in from the industry when Knowde flipped the switch on sales in early January.

An employee of International Flavors and Fragrances (IFF) picks up perfume components on December 8, 2016 at the company’s laboratory in Neuilly-sur-Seine, near Paris. / AFP / PATRICK KOVARIK (Photo credit should read PATRICK KOVARIK/AFP via Getty Images)

For at least the past fifty years, the modern chemicals industry has been defined — and in some ways constrained — by its sales pitches. There are specialty manufacturers who have hundreds of chemicals that they’ve made, but the knowledge of what those chemicals can do is often locked inside research labs. The companies rely on distributors, middlemen, and internal sales teams to get the word out, according to Maguire and Amin-Jahaveri.

“The way that things are done is still through field sales teams and product catalogs and brochures and face to face meetings and all that stuff,” said Amin-Jahaveri. “This industry has not evolved as quickly as the rest of the world… And we always knew that something has got to give.”

One selling point for Knowde is that it breaks that logjam, according to investors like Maguire.

“One of the references said that they had a bunch of legacy flavors from the seventies,” Maguire said. “It was a  Madagascar Vanilla that none of their sales people had tried to sell for 25 years… By putting them on Knowde the sales numbers had gone up over 1,000%… That company does over $5 billion a year in sales through flavors.”

The change happened as the old guard of executives began aging out of the business, according to Amin-Jahaveri. “Between 2002 and 2012 nothing happened.. There was no VC money thrown at any type chemical company and then it started changing a little bit,” he said. “The first domino was the changing age demographic… these consumer product companies kept getting younger.”

Amin-Jahaveri’s previous company grew to $400 million in revenue selling technology and services to the chemicals industry. It was back-end software and customer relationship tools that the industry had never had and needed if it were to begin the process of joining the digital world. Knowde, according to Amin-Jahaveri, is the next phase of that transition.

“Our plan is to connect the chemical producers directly with the buyers,” Amin-Jahaveri said. “And provide all the plumbing and storefronts necessary to manage these things themselves.”

All that Knowde needed to do was collate the disparate data about what chemicals small manufacturers were making and had in stock and begin listing that information online. That transparency of information used to be more difficult to capture, since companies viewed their product catalog as an extension of their intellectual property — almost a trade secret, according to Amin-Jahaveri.

Once companies began listing products online, Amin-Jahaveri and his team could go to work creating a single, searchable taxonomy that would allow outsiders to find the materials they needed without having to worry about differences in descriptions.

Knowde has broken down the chemicals industry into ten different verticals including: food, pharmaceuticals, personal care, houseware goods, industrial chemicals. The company currently operates in three different verticals and plans to extend into all ten within the year.

Amin-Jahaveri knows that he’s not going to get a meaningful chunk of business from the huge chemical manufacturers like BASF or Dow Chemical that pump out thousands of tons of commodity chemicals, those deals only represent $2 trillion of the total addressable market.

That means another $3 trillion in sales are up for grabs for the company Amin-Jahaveri founded with his partner Woyzeck Krupa.

While the opportunity is huge, the company — like every other new business launching in 2020 — is still trying to do business in the middle of the worst economic collapse in American history. However, Amin-Jahaveri thinks the new economic reality could actually work in Knowde’s favor.

“It’s going to be one more trigger event for these chemical companies that they have to go online,” he said. The personal relationships that drove much of the sales for the chemicals business before have dried up. No more conferences and events means no more opportunities to glad-hand, backslap, and chat over drinks at the hotel bar. So these companies need to find a new way to sell.

Maguire sees another benefit to the movement of chemical catalogs into an online marketplace, and that’s internal transparency within chemical companies.

“Even the biggest companies in the world do not have an internal search feature even for their own chemicals,” said Maguire. “I talked to two of the biggest companies in the world. In the case of one chemist who is a friend of mine. If you are trying to formulate some new concoction how do you find what chemicals you have in the company? If it’s in my division it’s pretty easy.. If I need chemicals from another division… there’s no way to search it right now.”

Mark Cuban isn’t impressed that you’ve raised money.

“If you think the accomplishment is raising money first, we’re probably not gonna get along,” said Cuban in an Extra Crunch Live interview. “If your orientation is ‘I got to raise the money first,’ you don’t really have a company yet, and you really haven’t accomplished anything yet. […] Sweat equity is the best equity.”

We also got his take on today’s economy, the nation’s direction and his notes on what startups should do to survive in the new world. Happily, as we had an hour to chat, we managed to cover a lot of ground. The full conversation (YouTube) is after the jump, and we’ve excerpted a number of quotes for your perusal.

But up top we wanted to share Cuban’s notes regarding which companies should accept Paycheck Protection Program (PPP) funds from the Small Business Administration. The matter became a hot-button issue in and around Silicon Valley, where initial debate centered around which startups could access the money. After it became clear the first installment of PPP funds wasn’t going to last, whether startups should access to the capital at all became a question. Some venture-backed companies even decided to return their PPP check.

According to Cuban, when PPP was first put together, the market’s “perspective was that there’d be plenty of money for everybody. You know, people didn’t really want to do the math.” Cuban said that if there was $350 billion in the pot and one million small businesses, the fund would have worked out to $350,000 apiece. “Well guess what,” he said, “there are 30 million companies, [and] like 20 of them are independent contractors.”

Once you did the calculations again with that many companies eligible for PPP funds, you could tell that the money wasn’t going to last. So Cuban told firms that he’s invested in where he has sway to “either not apply or just pay it back immediately.” Why? “For the betterment of the country and the economy,” he said, adding that “if you do have access to capital” or “your business isn’t dramatically impacted [then] let’s leave [the PPP money] for the people who need it the most.”

As noted, the full video is below (you can join Extra Crunch here!), along with Cuban’s notes on startup advice during the pandemic, American 2.0 (and Marc Andreessen’s essay), AI, pre-seed companies, his future in politics and how to pitch him.

Mark Cuban on the record

How he’s advising portfolio companies during the pandemic:

So first and foremost, communicate. Second is be honest. Third is be transparent. And fourth is be authentic. Because everybody is nervous. Everybody is terrified at a certain level. So you just have to recognize that. People are going to need that honesty from you and people are going to want communications from you. That’s been the primary thing around what these companies should do.

Regarding cutting costs: Every business is different. On the smallest ones, they’re already grinding, and it’s typically dependent on the founder. I’ve really tried to encourage people to keep all their employees on if at all possible. That there’s gonna be a lot of change and that’s going to create a lot of opportunity. So, if you can hold on to your employees and push forward in any way, shape, or form, you may have an opportunity.

Grenco Science just added a new product to its wide-ranging offering of vaporizers and ancillary products. Stündenglass was founded by Tracey Huston and produced a wild-looking water pipe that uses kinetic motion, water, and opposing airflow to create a unique, contactless experience.

The exact terms of the deal were not disclosed though the purchase price was under $1m and the founder and one other employee are joining the Grenco Science team.

“We recognize Tracey Huston’s ingenuity and the accomplishment of bringing that vision to life, Grenco Science will help by bringing this product into our global expansion plan,” said Chris Folkerts, CEO, and Founder of Grenco Science. “We look forward to extending this newest design through our product pipeline and other versions to come.”

With the Stündenglass, users do not need to make contact with a shared mouthpiece. A hookah system gives each user partaking a different mouthpiece, perfect in this time of social distancing. The company says the system patented system features gravitationally delivered water filtration that deliveries vaporized material smoothly.

Stündenglass founder and CEO Tracey Huston said in a released statement that joining the Grenco team will accelerate the development of this device.

Grenco Science was founded in 2012 and has since released a handful of novel vaporizers. Most recently, the company unveiled a pocketable water vaporizer that allows users to dab concentrates on the go. In 2019 Grenco Science closed a series A funding round with participation from Serruya Private Equity and Stable Road Capital.

Online child exploitation is a horrific crime that requires an effective response. A draft bill, first proposed by Sen. Lindsey Graham (R-SC) in January, intends to provide exactly that. However, technology experts warn the bill not only fails to meet the challenge, it creates new problems of its own. My job is to enable journalists to do their work securely — to communicate with others, research sensitive stories and publish hard-hitting news. This bill introduces significant harm to journalists’ ability to protect their sources.

Under the Eliminating Abusive and Rampant Neglect of Interactive Technologies (or EARN IT) Act, a government commission would define best practices for how technology companies should combat this type of material. On the surface, EARN IT proposes an impactful approach. A New York Times investigation in September found that “many tech companies failed to adequately police sexual abuse imagery on their platforms.” The investigation highlighted features, offered by these companies, that provide “digital hiding places for perpetrators.”

In reality, the criticized features are exactly the same ones that protect our privacy online. They help us read The Washington Post in private and ensure we only see authentic content created by the journalists. They allow us to communicate with each other. They empower us to express ourselves. And they enable us to connect with journalists so the truth can make the page. This raises the question of whether the bill will primarily protect children or primarily undermine free speech online.

It should be pointed out that EARN IT does not try to ban the use of these features. In fact, the bill does not specifically mention them at all. But if we look at how companies would apply the “best practices,” it becomes clear that the government is intending to make these features difficult to provide, that the government is looking to discourage companies from offering — and increasing the use of — these features. By accepting EARN IT, we will give up our ability — and our children’s future abilities — to enjoy online, social, connected and private lives.

Four of the “best practices” relate to requiring companies to have the ability to “identify” child sexual abuse material. Unfortunately, it’s not possible to identify this material without also having the ability to identify any and all other types of material — like a journalist communicating with a source, an activist sharing a controversial opinion or a doctor trying to raise the alarm about the coronavirus. Nothing prevents the government from later expanding the bill to cover other illegal acts, such as violence or drugs. And what happens when foreign governments want to have a say in what is “legal” and what is not?

Our digital life is protected by the same features that allow some bad people to do bad things online. They protect us as we visit The Washington Post website, use the Signal app to contact one of its journalists or use the Tor Browser to submit information to their anonymous tip line. These features all enable privacy, a core component of the journalistic process. They enable journalists to pursue and tell the truth, without fear or favor. And not just in the U.S., but globally. We should empower and enable this work, not sabotage it by removing crucial capabilities, even in the name of child protection.

The same New York Times investigation found that law enforcement agencies devoted to fighting online child exploitation “were left understaffed and underfunded, even as they were asked to handle far larger caseloads.” The National Center for Missing and Exploited Children (NCMEC), established by Congress in 1984 to reduce child sexual exploitation and prevent child victimization, “was ill equipped for the expanding demands.” It’s worth asking, then, why EARN IT does not instead empower these agencies with additional resources to solve crimes.

We must consider the possibility that this bill fails to achieve its stated goal. That it will not protect children online, and will introduce harm to their digital presence and ability to speak freely. Everyone deserves good security, and it’s on us to find ways to prevent harm without compromising on our digital rights. To force companies to weaken our protection to give law enforcement greater insight would be the equivalent of forcing people to live without locks and curtains in their homes. Are we willing to go that far?

That’s not to say we have to accept no solution. But it can’t be this one.

It’s fair to say that even before the impact of COVID-19, companies had begun a steady march to the cloud. Maybe it wasn’t fast enough for AWS, as Andy Jassy made clear in his 2019 Re:invent keynote, but it was happening all the same and the steady revenue increases across the cloud infrastructure market bore that out.

As we look at the most recent quarter’s earnings reports for the main players in the market, it seems the pandemic and economic fall out has done little to slow that down. In fact, it may be contributing to its growth.

According to numbers supplied by Synergy Research, the cloud infrastructure market totaled $29 billion in revenue for Q12020.

Image Credit: Synergy Research

Synergy’s John Dinsdale, who has been watching this market for a long time, says that the pandemic could be contributing to some of that growth, at least modestly. In spite of the numbers, he doesn’t necessarily see these companies getting out of this unscathed either, but as companies shift operations from offices, it could be part of the reason for the increased demand we saw in the first quarter.

“For sure, the pandemic is causing some issues for cloud providers, but in uncertain times, the public cloud is providing flexibility and a safe haven for enterprises that are struggling to maintain normal operations. Cloud provider revenues continue to grow at truly impressive rates, with AWS and Azure in aggregate now having an annual revenue run rate of well over $60 billion,” Dinsdale said in a statement.

AWS led the way with a third of the market or more than $10 billion in quarterly revenue as it continues to hold a substantial lead in market share. Microsoft was in second, growing at a brisker 59% for 18% of the market. While Microsoft doesn’t break out its numbers, using Synergy’s numbers, that would work out to around $5.2 billion for Azure revenue. Meanwhile Google came in third with $2.78 billion.

If you’re keeping track of market share at home, it comes out to 32% for AWS, 18% for Microsoft and 8% for Google. This split has remained fairly steady, although Microsoft has managed to gain a few percentage points over the last several quarters as its overall growth rate outpaces Amazon.

NVIDIA Chief Scientist Bill Daily has released an open-source ventilator hardware design he developed in order to address the shortage resulting from the global coronavirus pandemic. The mechanical ventilator design developed by Daily can be assembled quickly, using off-the-shelf parts with a total cost of around $400 – making it an accessible and affordable alternative to traditional, dedicated ventilators which can cost $20,000 or more.

The design created by Daily strives for simplicity, and basically includes just two central components – a solenoid valve and a microcontroller. The design is called the OP-Vent, and in the video below you can see how bare-bones it is in terms of hardware compared to existing alternatives, including some of the other more complex emergency-use ventilator designs developed in response to COVID-19.

Daily’s design, which was developed using input from mechanical engineers and doctors including Dr. Andrew Moore, a chief resident at Stanford University and D.r Bryant Lin, a medical devices expert and company co-founder, can be assembled in as little as five minutes, and is small enough to fit in a Pelican case for easy transportation and potability. It also employs fewer parts and uses less energy than similarly simple designs that adapt the manual breather bags used by paramedics in emergency response.

Next up for the design is getting it cleared by the FDA under the agency’s Emergency Use Authorization program for COVID-19 equipment, and then seeking manufacturing partners to pursue large-scale manufacturing.