Year: 2020

26 Mar 2020

Netflix is currently down for many users around the world

Netflix is currently experiencing outages around the world, but affecting mostly users in the United States and Europe. According to Down Detector, users began reporting issues around 12PM Eastern Standard Time on Wednesday, and many people are still unable to connect to the streaming service on different platforms, including mobile, PCs and smart TVs.

Many people around the world are relying on Netflix for entertainment while under lockdown or quarantine measures to stop the spread of COVID-19. Both Netflix’s status and help pages have notes saying “We are currently experiencing a higher than normal wait time for support via phone and chat. Please try again later or check our online help center for answers to frequently asked questions. Thank you for your patience.” It is also fielding issues through its customer support Twitter account.

On March 21, Netflix said that in response to the European Union’s request for streaming services to use telecommunications networks more efficiently, it had developed a way to reduce Netflix’s traffic on them by 25% and deployed it in Italy, Spain, the rest of the Europe and the United Kingdom before rolling it out to other places including India.

26 Mar 2020

3D-printing company Formlabs expects its swabs to receive FDA exemption

Formlabs, the privately held, Massachusetts-based 3D-printing company, will soon receive an exemption from the U.S. Food and Drug Administration for its swab designed for use in COVID-19 test kits, TechCrunch has learned.

Global supply chains for test kit components including swabs and chemical reagents have hampered the ability of governments to increase testing to a point where they can adequately ascertain the scope of the outbreak of the novel coronavirus within their borders.

“Yesterday we got a notification from the FDA that this is going to be a class one exempt product,” said Formlabs chief product officer David Lakatos. “As long as it’s manufactured in an ISO 135 controlled facility.”

As cases are identified across the U.S., tests are flowing to the geographies where the disease has spread the fastest, leaving other parts of the country under-resourced to address what could be an increasing outbreak in other communities that have yet to receive a complete picture of the disease’s spread.

With swabs, the problem has been compounded that of the few manufacturers of the sorely needed test kit component, only one is in the U.S. while another is in Italy.

“About a week and a half ago we joined this effort,” says Lakatos.

Formlabs is uniquely positioned to scale up production he said, thanks in part to the 60,000 printers the company has on hand and the recent acquisition of a facility in Ohio that enables the company to make surgical-grade products.

The company is currently finishing up human trials and gearing up to expand capacity at its Ohio manufacturing facility. According to Lakatos, the company will be able to supply 100,000 swabs per day. “We are starting to print these,” Lakatos said. “But we won’t send anything out until we get the green light.”

Currently most of the swabs are earmarked for partner hospitals that worked with the company to develop the swabs, but the company is also working with large distributors to access their distribution channels and get the swabs into roughly 3,000 hospitals around the U.S.

“At the end of the day we’re just looking to get them out,” Lakatos said.

25 Mar 2020

Plastiq raises $75M to help small businesses use credit cards more

When Eliot Buchanan tried to use his credit card to pay his Harvard tuition bill, the payment was rejected because the university said it doesn’t accept credit. Realizing the same problem exists for thousands of different transactions like board, rent and vendor payments, he launched Plastiq. Plastiq helps people use credit cards to pay, or get paid, for anything

Plastiq today announced that it has raised $75 million in venture capital in a Series D round led by B Capital Group. Kleiner Perkins, Khosla Ventures, Accomplice and Top Tier Capital Partners also participated in the round. The round brings the company’s total known venture capital raised to more than $140 million.

To use Plastiq, users enter their credit card information on Plastiq’s platform. In return, Plastiq will charge you a 2.5% fee and get your bills paid. While Plastiq was started with consumers in mind, SMBs have now accounted for 90% of the revenue, according to Buchanan. The new financing round will invest in building out features to give SMBs faster services around payments and processing. 

Plastiq provides a way for SMBs and consumers to pay their bills and make sure they have reliable cash flow. For example, restaurants sometimes have a drop in revenue due to seasonality or, as we’re experiencing now with COVID-19, pandemic lockdowns. Or tourism companies for cities that are struggling to attract visitors. Those companies still need cash flow, and using Plastiq’s service, they can use credit cards to pay suppliers even in an off season. 

There is no shortage of competition from other companies also trying to solve pain points in small-business cash flow. According to Buchanan, Plastiq’s biggest competitors are traditional lenders, as well as companies like Kabbage and Fundbox. Similar claims could be made about Brex, which offers a credit card for startups to access capital faster. 

Kabbage provides funding to SMBs through automated business loans. The SoftBank-backed company landed $200 million in a revolving credit line back in July, fresh off of landing strong partnerships with banks and giants like Alibaba to access more customers. Kabbage loans out roughly $2-3 billion to SMBs every year. 

Plastiq, according to its release, is also on track to make more than $2 billion in transactions. But unlike Kabagge, Plastiq doesn’t issue loans or credit, it just unlocks a payment opportunity.

“SMBs don’t need to be burdened with additional debt or additional loans,” Buchanan said. “So rather than trying to reinvent the wheel, let’s use a behavior they have already earned.” 

Buchanan would not disclose Plastiq’s current valuation or revenue, but he did say that it’s not too far away from $100 million in revenue run rate. The company’s revenue has grown 150% from 2018 to 2019. 

The company also noted that it has surpassed “well over 1 million users,” up 150% in unique new users from 2018 to 2019.

In terms of profitability, Buchanan said that “we could be profitable if we wanted to be,” noting that Plastiq’s revenue and margins could lead them toward profitability if they wanted to focus less on growth. But he added they don’t plan to “slow down” the growth engine any time soon — especially in the wake of the COVID-19 pandemic.

Because the Series D round closed at the end of 2019, Buchanan said the pandemic did not impact the deal. However, the company had planned to time the announcement with tax season. Now, as small businesses struggle to secure capital and stay afloat due to lockdowns across the country, Plastiq’s new raise feels more fitting. 

“Our customers are more thankful for solutions like ours as traditional sources of lending are drying up and not as easy to access” Buchanan said. “Hopefully, we can measure how many businesses make it through this because of us.” 

The 140-person company is currently hiring across product and engineering roles.

25 Mar 2020

The future of collectibles is digital

The estimated size of the global collectibles market is $370 billion.

People have an innate propensity to collect, which drives purchases of collectible goods like art, games, sports memorabilia, toys and more. But given that the world is rapidly adopting digital each day, how likely is it that this market can continue to grow as is?

Won’t this primarily physical market have little choice but to evolve with the times?

With an increase in digital adoption, a step-function innovation is emerging; digital collectibles. The new medium is gaining in popularity and its influence is spreading relatively quickly.

The potential impact on the cryptocurrency landscape, while seemingly unrelated, is quite profound. Businesses already present in the collectibles market have new offerings, demographics and economic impacts to take into account. Even household brands are acknowledging their significance and building strategies around them.

Image by Christian Braun via hobbyDB

Digital collectibles have taken a foothold and are well on their way to increase their presence in our daily lives.

What is a digital collectible?

25 Mar 2020

Groupon axes CEO and COO as company looks to mount a recovery during a crisis

While plenty of tech stocks have seen their market caps dive in the past month, Groupon has taken a harder hit than most. The company’s share price has dropped more than 70% in the past five weeks.

The reckoning came for Groupon’s leadership today with both CEO Rich Williams and COO Steve Krenzer ousted. In an announcement, Groupon shared that both execs would be pushed out of their roles and that Groupon’s President of North America Aaron Cooper would serve as interim CEO.

While the impact of COVID-19 on retail across the country will certainly further negatively affect Groupon moving forward, the company was in dire trouble weeks before the crisis fully took root stateside. Groupon took a beating on its Q4 earnings report, where it widely missed expectations and showcased seriously declining revenues.

The company’s board will be leading the search for a full-time chief executive. For the time being, Cooper will be tasked with the company through an undoubtedly rough period as many of its current and potential customers close up shop.

“The disruption created by the global pandemic, however, is significant, and our immediate goal is to help millions of Groupon merchants, customers and employees navigate the massive challenges they face,” interim CEO Aaron Cooper said in a statement.

Groupon’s stock was down a hair on the news, though its stock has seen some upward movement from its recent all-time low even as the rest of the market has tanked. One wonders whether investors believe that the entire market enduring a crisis could give the company an opportunity to take stock of its future or if they simply think they found the share price’s bottom.

25 Mar 2020

People who mostly get news from social networks have some COVID-19 misconceptions

A new survey conducted by the Pew Research Center shows a COVID-19 information divide between people who mostly get their news from social networks and those who rely on more traditional news sources.

Pew surveyed 8,914 adults in the U.S. during the week of March 10, dividing survey respondents by the main means they use to consume political and election news. In the group of users that reports getting most of their news from social media, only 37% of respondents said that they expected the COVID-19 vaccine to be available in a year or more — an answer aligned with the current scientific consensus. In every other sample with the exception of the local TV group, at least 50% of those surveyed answered the question correctly. A third of social media news consumers also reported that they weren’t sure about the vaccine availability.

Among people who get most of their news from social media, 57% reported that they had seen at least some COVID-19 information that “seemed completely made up.” For people who consume most of their news via print media, that number was 37%.

Most alarmingly, people who primarily get their news via social media perceived the threat of COVID-19 to be exaggerated. Of the social media news consumers surveyed, 45% answered that the media “greatly exaggerated the risks” posed by the novel coronavirus. Radio news consumers were close behind, with 44% believing the media greatly exaggerated the threat of the virus, while only 26% of print consumers — those more likely to be paying for their news — believed the same.

The full results were part of Pew’s Election News Pathways project, which explores how people in the U.S. consume election news.

25 Mar 2020

How one company is fast-tracking development of potential plasma-based treatments for the coronavirus

Medical biotech company Emergent BioSolutions is one of the many health industry players turning its efforts towards addressing the current global coronavirus pandemic. Their work includes a two-pronged effort to pursue plasma-based treatments that could help lessen the impact of COVID-19 on health care systems, with a fast-tracked development timeline that could see human clinical trials start as soon as this summer.

The company is simultaneously working on two different therapeutic approaches, including one that uses plasma (a liquid that is the majority component of blood) sourced from humans, and one that sources it from horses. Both involve development of antibodies consisting of different immune cells that all target the SARS-CoV-2 virus, which work by boosting the body’s existing immune response in patients to fight off infection. The treatment based on human plasma would be suitable for use for patients who are hospitalized and showing severe symptoms, and also potentially for providing some measure of protection for at-risk people including frontline healthcare workers, while the horse-derived version would be aimed specifically at addressing those severe hospitalized cases.

Plasma-based treatments (which involve purifying out the antibodies and concentrating the dose) are not new, and both of these therapies in development will leverage technologies, manufacturing processes and other infrastructure that Emergent BioSolutions has used in developing other, FDA-approved plasma-based treatments for different diseases. That’s what’s helping it fast-track its work on solutions to address COVID-19, which could bridge the back between where we’re at now, and the year or more it will take to develop an effective vaccine.

“We looked at where we are in our platforms, and our ability to take some of our proven technologies and apply it to COVID-19,” explained Dr. Laura Saward, head of Emergent BioSolution’s Therapeutics Business Unit. “On the therapeutic side, there were two areas we were really focused on. I think the opportunity to provide a therapy that would be a rescue therapy for patients in hospital, who are suffering from severe disease is definitely a need today, as well as the ability to go in and prevent people at risk from developing more severe disease.”

The goal, with both approaches, Dr. Saward said, is to attempt to reduce the burden suffered by the healthcare system, freeing up its resources to better address the coronavirus crisis. That’s a similar end to the strategy of encouraging individuals to distance themselves physically from one another – health officials are hoping that, if these rules are properly observed, individuals can avoid being infected all at once and overwhelming the hospital system.

Therapeutics used in treatment of cases could be another key ingredient in a larger plan designed to mitigate the most dire projected effects of a global coronavirus pandemic. Especially when, as is the case with the treatments that Emergent BioSolutions is developing, there is already infrastructure in place that can help speed the development of these therapeutics.

“We have two platforms that we looked then, within the antibody therapeutics space, really looking at our existing infrastructure, and the manufacturing processes that we have as part of our overall platform for this approach,” Dr. Saward said. “You know, in the, in this situation, when we looked at these two platforms, they supported several FDA-licensed drugs, which, while it doesn’t give us the benefit of having some sense of dosing safety, we can certainly use that manufacturing process in a way where we’ve got our our common elements for manufacturing and controls and would help to support an FDA application.”

There has been plenty said about efforts by FDA and other global health agencies to cut through red tape and speed the approval process around COVID-19. That includes everything from tests, to treatments and vaccines. I asked Dr. Saward what’s actually involved in fast-tracking something as sensitive and safety-focused as approval for new therapeutics.

We’ve always worked very closely with the regulators and in understanding sort of what parts of those packages are common to our process,” she said. “As we bring a new drug through, we’re often able to leverage many of the same elements around the safety profile, the PK profile [basically how fast a drug is absorbed, metablized, excreted, etc.] for the products, the manufacturing controls and assays that are validated – that’s all common. What we’re changing, really, is just at the front end: The plasma that’s going into that process will be specific to the COVID antibodies in this case.”

This ensures that while they can still ensure safety, they don’t need to do re-work that would otherwise be time consuming for processes that the FDA already has full visibility into. Time and effort can focus on the stages of the drug development that are new, instead of on what’s repeated.

Thanks to its ability to leverage past work, Emergent BioSolutions is now working with a timeframe that includes entering manufacturing by this summer, and then having products available in test clinics by end of summer. If all goes to plan, that means kicking off Phase Two testing in human patients by around late summer or early fall.

That may seem a long way off, but it’s actually a speedy timeline by therapeutics development standards. Saward says that she’s seen the FDA evolve their thinking on data collection and dynamism in light of technological advancement, which has helped their collaboration with industry in getting needed treatments to market. In the meantime, that still means individuals need to do their part to provide Emergent and others working on these solutions the time they need for proper development and testing, through actions like physical distancing and self-isolation.

25 Mar 2020

Original Content podcast: Hulu’s ‘Little Fires Everywhere’ is agonizing in all the right ways

“Little Fires Everywhere,” a new miniseries on Hulu, can be hard to watch.

Based on Celeste Ng’s novel of the same name, it takes place in the planned community of Shaker Heights during the 1990s, where the arrival of artist Mia (Kerry Washington) and her daughter Pearl (Lexi Underwood) sets something into motion that (we’re told in the opening scene) will eventually result in a fire that burns the lavish home of the wealthy Robinsons to the ground.

While the show has plenty of distinctive characters, it centers to a large extent on the prickly relationship between Mia and Elena Richardson (Reese Witherspoon). Every scene between them feels fraught, as Elena’s awkward and condescending attempts to prove that she’s a good person (and a not racist) are repeatedly rebuffed.

For reasons that it would be too spoiler-y to disclose here, the two of them eventually find themselves in conflict, and their children, along with Elena’s husband (it’s genuinely mind-blowing to see Joshua Jackson — Pacey from “Dawson Creek” — as a 40-something dad), get pulled in as well.

On today’s episode of the Original Content podcast, we review “Little Fires Everywhere,” laying out all the ways that the show’s initial episodes impressed us. We also offer some general recommendations for what to stream while you’re stuck at home.

You can listen in the player below, subscribe using Apple Podcasts or find us in your podcast player of choice. If you like the show, please let us know by leaving a review on Apple. You can also send us feedback directly. (Or suggest shows and movies for us to review!)

And if you’d like to skip ahead, here’s how the episode breaks down:

0:00 Intro
1:09 Streaming recommendations
11:15 “Little Fires Everywhere” review
39:34 “Little Fires Everywhere” spoiler discussion (spoilers for first three episodes)

25 Mar 2020

88 out of top 200 U.S. cities have seen internet speeds decline this past week, 3 cities by more than 40%

The impacts of telecommuting, shelter-in-place laws, and home quarantines resulting from the COVID-19 outbreak are starting to impact broadband speeds across a number of U.S. cities, a new report has found. According to broadband analysis site BroadbandNow, 88 out of the top 200 most populous U.S. cities analyzed have now experienced some form of network degradation over the past week, compared with the 10 weeks prior, as more people are going online to work from home, video chat, and stream movies and TV to keep themselves entertained. In a small handful of cities over the past week, there have even been significant degradations with download speeds dropping more than 40%, compared with the 10 weeks prior.

It’s not necessarily the areas hit hardest by the spread of the novel coronavirus that are experiencing the worst problems.

Cities including L.A., Chicago, Brooklyn, and San Francisco have seen little or no disruption in download speeds, the report claims. Seattle is also holding up well.

But New York City, now considered the epicenter of the virus in the U.S., saw download speeds drop by 24% last week, compared to the previous 10-week range. That said, NYC home network connections, which have a median speed of nearly 52 Mbps, are managing.

The good news is that in the majority of markets, network speeds are holding up.

But of the 88 out of 200 cities that saw declines, over two dozen saw dips of either 20% below range or more, the data indicates.

These include:

Austin, TX (-44%); Charlotte, NC (-24%); Fayetteville, NC (-22%); Fort Lauderdale, FL (-29%); Hialeah, FL (-21%); Houston, TX (-24%); Irvine, CA (-20%); Jersey City, NJ (-25%); Kansas City, MO (-25%); Lawrenceville, GA (-24%); Littleton, CO (-22%); Marietta, GA (-29%); Miami, FL (-27%); Nashville, TN (-20%); New York, NY (-24%); Omaha, NE (-24%); Overland Park, KS (-33%); Oxnard, CA (-42%); Plano, TX (-31%); Raleigh, NC (-20%); Rochester, NY (-33%); St. Louis, MO (-21%) St. Paul, MN (-29%); San Jose, CA )-38%); Scottsdale, AZ (-32%); Washington, DC (-30%); and Winston-Salem, NC (-41%).

Three cities, in particular, were seeing serious network degradations of over 40%: Austin, TX (-44%), Winston Salem, NC (-41%), and Oxnard, CA (-42%). San Jose, CA was nearing this range, with a drop of 38%.

Internet service providers have been responding to the health crisis by suspending data caps, increasing base-level speeds, and extending free access to low-income families during this time. But their ability to keep up with this level of high demand is being tested.

Streaming services, being one of the larger draws on bandwidth, have been lowering the quality of their streams to use less network capacity, as U.S. connectivity needs have grown. Yesterday, for example, YouTube announced it would default to SD connections to tame bandwidth demands. Amazon and Netflix have reduced stream quality in Europe. But despite record levels of network traffic in the U.S., Netflix hasn’t made any commitments to do the same in the U.S. Today, Netflix had an hour-long service interruption impacting some U.S. and Europen users.

Another area of concern is how well more rural areas will hold up with new stay-at-home and work-from-home orders in place. Often, these markets are only served by legacy technologies like DSL. So far, they’ve held up, BroadbandNow reports, but this could still change.

25 Mar 2020

Monday.com surpassed $130M ARR before the remote-work boom

As efforts to flatten the spread of COVID-19 pushes employees from their offices, remote work is undergoing a surge in popularity.

Well-known remote-work friendly companies like Zoom have seen a rise in usage, while Slack has already reported that it is successfully converting new users into paying customers, which is pushing up its growth rate.

The pandemic is creating economic and social upheaval, but for a specific cohort of software companies that help distributed teams work together, it’s proven useful in business terms. But even before the outbreak of the novel coronavirus, execs from a standout project management company swung by TechCrunch HQ to chat with the Equity crew about their business and growth: Monday.com. 

What does an interview with Monday.com’s Eran Zinman (co-founder and CTO) and Roy Mann (CEO) have to do with COVID-19? Well, if remote-productivity-friendly services Slack and Zoom are seeing usage spikes amidst the changes, Monday.com is likely benefiting from similar gains. And during our chat with the company’s brass, the pair told TechCrunch that their company had crossed the $130 million annual recurring revenue (ARR) mark by mid-February. Add in a COVID-19 usage boost and perhaps Monday.com (which doesn’t have a free tier) is seeing its growth accelerate.

Previously, Monday.com announced that it had reached the $120 million ARR mark, and TechCrunch had inducted it into the $100 million ARR club earlier this year.

Revenue expansion was not our only topic. We also chatted with the pair of execs about customer acquisition costs and how to a run a SaaS business without terrifying burn. The Monday.com crew had more news up their sleeve, like when they expect the unicorn to become cash-flow positive. 

We’ve excised a larger-than-usual chunk of the interview for sharing as there’s a lot to take in:

After the jump, we dig a bit deeper into the obvious IPO candidate