Author: azeeadmin

15 May 2020

3 views on the future of work, coffee shops and neighborhoods in a post-pandemic world

The novel coronavirus pandemic has disordered traditional notions of work, travel, socializing and the way we collaborate with colleagues.

It seems obvious that the future of work must evolve, given what we’re experiencing, but what will that future look like? Which changes are here to stay and which ones will revert the moment offices reopen?

TechCrunch has been a WFH employer for essentially its entire existence. Our staff is distributed across major startup hubs like SF and NYC, but we also have writers in smaller cities around the world, so we compiled reflections and thoughts from three of them about how remote work has changed our lifestyles and what we predict to see in the next few years, post-COVID 19.

Devin Coldewey talks about what’s going to change with coffee shops and co-working spaces, Alex Wilhelm discusses the future of the home office setup and Danny Crichton talks about the revitalization of urban and semi-urban neighborhoods.

Devin Coldewey on coffee shops and more flexible work arrangements

I’ve worked from home for over a decade and part of what makes it so lovely is the ability to do my work from a nearby cafe, or even a restaurant or bar. I’m lucky in that my part of the city is famously packed with excellent coffee shops, but in the time I’ve lived here I’ve seen them grow increasingly packed with — well, people like me. Some days they seem more like co-working spaces than cafes — and this is something business owners and neighborhoods are going to need to acknowledge one way or the other.

Most urban and suburban American communities were formed around the convention of commuting, which means fewer work-related resources where people live. Instead, we have all the restaurants, bodegas, thrift stores and all the other things that cater to people who aren’t working.

15 May 2020

3 views on the future of work, coffee shops and neighborhoods in a post-pandemic world

The novel coronavirus pandemic has disordered traditional notions of work, travel, socializing and the way we collaborate with colleagues.

It seems obvious that the future of work must evolve, given what we’re experiencing, but what will that future look like? Which changes are here to stay and which ones will revert the moment offices reopen?

TechCrunch has been a WFH employer for essentially its entire existence. Our staff is distributed across major startup hubs like SF and NYC, but we also have writers in smaller cities around the world, so we compiled reflections and thoughts from three of them about how remote work has changed our lifestyles and what we predict to see in the next few years, post-COVID 19.

Devin Coldewey talks about what’s going to change with coffee shops and co-working spaces, Alex Wilhelm discusses the future of the home office setup and Danny Crichton talks about the revitalization of urban and semi-urban neighborhoods.

Devin Coldewey on coffee shops and more flexible work arrangements

I’ve worked from home for over a decade and part of what makes it so lovely is the ability to do my work from a nearby cafe, or even a restaurant or bar. I’m lucky in that my part of the city is famously packed with excellent coffee shops, but in the time I’ve lived here I’ve seen them grow increasingly packed with — well, people like me. Some days they seem more like co-working spaces than cafes — and this is something business owners and neighborhoods are going to need to acknowledge one way or the other.

Most urban and suburban American communities were formed around the convention of commuting, which means fewer work-related resources where people live. Instead, we have all the restaurants, bodegas, thrift stores and all the other things that cater to people who aren’t working.

15 May 2020

How will Europe’s coronavirus contacts tracing apps work across borders?

A major question mark attached to national coronavirus contacts tracing apps is whether they will function when citizens of one country travel to another. Or will people be asked to download and use multiple apps if they’re traveling across borders?

Having to use multiple apps when travelling would further complicate an unproven technology which seeks to repurpose standard smartphone components for estimating viral exposure — a task for which our mobile devices were never intended.

In Europe, where a number of countries are working on smartphone apps that use Bluetooth radios to try to automate some contacts tracing by detecting device proximity, the interoperability challenge is particularly pressing, given the region is criss-crossed with borders. Although, in normal times, European Union citizens can all but forget they exist thanks to agreements intended to facilitate the free movement of EU people in the Schengen Area.

Currently, with many EU countries still in degrees of lockdown, there’s relatively little cross border travel going on. But the European Commission has been focusing attention on supporting the tourism sector during the coronavirus crisis — proposing a tourism & transport package this week which sets out recommendations for a gradual and phased lifting of restrictions.

Once Europeans start traveling again, the effectiveness of any national contacts tracing apps could be undermined if systems aren’t able to talk to each other. In the EU, this could mean, for example, a French citizen who travels to Germany for a business trip — where they spend time with a person who subsequently tests positive for COVID — may not be warned of the exposure risk. Or indeed, vice versa.

In the UK, which remains an EU member until the end of this year (during the Brexit transition period), the issue is even more pressing — given Ireland’s decision to opt for a decentralized app architecture for its national app. Over the land border in Northern Ireland, which is part of the UK, the national app would presumably be the centralized system that’s being devised by the UK’s NHSX. And the NHSX’s CEO has admitted this technical division presents a specific challenge for the NHS COVID-19 app.

There are much broader questions over how useful (or useless) digital contacts tracing will prove to be in the fight against the coronavirus. But it’s clear that if such apps don’t interoperate smoothly in a multi-country region such as Europe there will be additional, unhelpful gaps opening up in the data.

Any lack of cross-border interoperability will, inexorably, undermine functionality — unless people given up travelling outside their own countries for good.

EU interoperability as agreed goal

EU Member States recognize this, and this week agreed to a set of interoperability guidelines for national apps — writing that: “Users should be able to rely on a single app independently of the region or Member State they are in at a certain moment.”

The full technical detail of interoperability is yet to be figured out — “to ensure the operationalisation of interoperability as soon as possible”, as they put it.

But the intent is to work together so that different apps can share a minimum of data to enable exposure notifications to keep flowing as Europeans travel around the region, as (or once) restrictions are lifted. 

Whatever the approach taken with approved apps, all Member States and the Commission consider that interoperability between these apps and between backend systems is essential for these tools to enable the tracing of cross-border infection chains,” they write. “This is particularly important for cross-border workers and neighbouring countries. Ultimately, this effort will support the gradual lifting of border controls within the EU and the restoration of freedom of movement. These tools should be integrated with other tools contemplated in the COVID-19 contact tracing strategy of each Member State.”

European users should be able to expect interoperability. But whether smooth cross-border working will happen in practice remains a major question mark. Getting multiple different health systems and apps that might be calculating risk exposure in slightly different ways to interface and share the relevant bits of data in a secure way is itself a major operational and technical challenge.

However this is made even more of a headache given ongoing differences between countries over the core choice of app architecture for their national coronavirus contacts tracing.

This boils down to a choice of either a decentralized or centralized approach — with decentralized protocols storing and processing data locally on smartphones (i.e. the matching is done on device); and centralized protocols that upload exposure data and perform matching on a central server which is controlled by a national authority, such as a health service.

While there looks to be clear paths for interoperability between different decentralized protocols — here, for example, is a detailed discussion document written by backers of different decentralized protocols on how proximity tracing systems might interoperate across regions — interoperability between decentralized and centralized protocols, which are really polar opposite approaches, looks difficult and messy to say the least.

And that’s a big problem if we want digital contacts tracing to smoothly take place across borders.

(Additionally, some might say that if Europe can’t agree on a common way forward vis-a-vis a threat that affects all the region’s citizens it does not reflect well on the wider ‘European project’; aka the Union to which many of the region’s countries belong. But health is a Member State competence, meaning the Commission has limited powers in this area.)

In the eHealth Network ‘Interoperability guidelines’ document Member States agree that interoperability should happen regardless of which app architecture a European country has chosen.

But a section on cross-border transmission chains can’t see a way forward on how exactly to do that yet [emphasis ours] — i.e. beyond general talk of the need for “trusted and secure” mechanisms:

Solutions should allow Member States’ servers to communicate and receive relevant keys between themselves using a trusted and secure mechanism.

Roaming users should upload their relevant proximity encounter information to the home country backend. The other Member State(s) should be informed about possible infected or exposed users*.

*For roaming users, the question of to which servers the relevant proximity contacts details should be sent will be further explored during technical discussions. Interoperability questions will also be explored in relation to how a users’ app should behave after confirmed as COVID-19 positive and the possible need for a confirmation of infection free.

Conversely, the 19 academics behind the proposal for interoperability of different decentralized contacts tracing protocols, do include a section at the end of the document discussing how, in theory, such systems could plug into ‘alternatives’: aka centralized systems.

But it’s thick with privacy caveats.

Privacy risks of crossing system streams

The academics warn that while interoperability between decentralized and centralized systems “is possible in principle, it introduces substantial privacy concerns” — writing that, on the one hand, decentralized systems have been designed specifically to avoid the ability of an central authority being able to recover the identity of users; and “consequently, centralized risk calculation cannot be used without severely weakening the privacy of users of the decentralized system”.

While, on the other, if decentralized risk calculation is used as the ‘bridge’ to achieve interoperability between the two philosophically opposed approaches — by having centralized systems “publish a list of all decentralized ephemeral identifiers it believes to be at risk of infection due to close proximity with positive-tested users of the centralized system” — then it would make it easier for attackers to target centralized systems with reidentification attacks of any positive-tested users. So, again, you get additional privacy risks.

“In particular, each user of the decentralized system would be able to recover the exact time and place they were exposed to the positive-tested individual by comparing their list of recorded ephemeral identifiers which they emitted with the list of ephemeral identifiers published by the server,” they write, specifying that the attack would reveal in which “15 minute” an app user was exposed to a COVID-positive person.

And while they concede there’s a similar risk of reidentification attacks against all forms of decentralized systems, they contend this is more limited — given that decentralized protocol design is being used to mitigate this risk “by only recording coarse timing information”, such as six-hour intervals.

So, basically, the argument is there’s a greater chance that you might only encounter one other person in a 15 minute interval (and therefore could easily guess who might have given you COVID) vs a six-hour window. Albeit, with populations likely to continue to be encouraged to stay at home as much as possible for the foreseeable future, there is still a chance a user of a decentralized system might only pass one other person over a larger time interval too.

As trade offs go, the argument made by backers of decentralized systems is they’re inherently focused on the risks of reidentification — and actively working on ways to mitigate and limit those risks by system design — whereas centralized systems gloss over that risk entirely by assuming trust in a central authority to properly handle and process device-linked personal data. Which is of course a very big assumption.

While such fine-grained details may seem incredibly technical for the average user to need to digest, the core associated concern for coronavirus apps generally — and interoperability specifically — is that users need to be able to trust apps to use them.

So even if a person trusts their own government to handle their sensitive health data, they may be less inclined to trust another country’s government. Which means there could be some risk that centralized systems operating within a mutli-country region such as Europe might end up polluting the ‘trust well’ for these apps more generally — depending on exactly how they’re made to interoperate with decentralized systems.

The latter are designed so users don’t have to trust an authority to oversee their personal data. The former are absolutely not. So it’s really chalk and cheese.

Ce n’est pas un problème?

At this point, momentum among EU nations has largely shifted behind decentralized protocols for coronavirus contacts tracing apps. As previously reported, there has been a major battle between different EU groups supporting opposing approaches. And — in a key shift — privacy concerns over centralized systems being associated with governmental ‘mission creep’ and/or a lack of citizen trust appear to have encouraged Germany to flip to a decentralized model.

Apple and Google’s decision to support decentralized systems for the contacts tracing API they’re jointly developing, and due to release later this month (sample code is out already), has also undoubtedly weighted the debate in favor of decentralized protocols. 

Not all EU countries are aligned at this stage, though. Most notably France remains determined to pursue a centralized system for coronavirus contacts tracing.

As noted above, the UK has also been building an app that’s designed to upload data to a central server. Although it’s reportedly investigating switching to a decentralized model in order to be able to plug into the Apple and Google API — given technical challenges on iOS associated with background Bluetooth access.

Another outlier is Norway — which has already launched a centralized app (which also collects GPS data — against Commission and Member States’ own recommendations that tracing apps should not harvest location data).

High level pressure is clearly being applied, behind the scenes and in public, for EU Member States to agree on a common approach for coronavirus contacts tracing apps. The Commission has been urging this for weeks. Even as French government ministers have preferred to talk in public about the issue as a matter of technological sovereignty — arguing national governments should not have their health policy decisions dictated to them by U.S. tech giants.

“It is for States to chose their architecture and requests were made to Apple to enable both [centralized and decentralized systems],” a French government spokesperson told us late last month.

While there may well be considerable sympathy with that point of view in Europe, there’s also plenty of pragmatism on display. And, sure, some irony — given the region markets itself regionally and globally as a champion of privacy standards. (No shortage of op-eds have been penned in recent weeks on the strange sight of tech giants seemingly schooling EU governments over privacy; while veteran EU privacy advocates have laughed nervously to find themselves fighting in the same camp as data-mining giant Google.)

Commission EVP Margrethe Vestager could also be heard on BBC radio this week suggesting she wouldn’t personally use a coronavirus contacts tracing app that wasn’t built atop a decentralized app architecture. Though the Brexit-focused UK government is unlikely to have an open ear for the views of Commission officials, even piped through establishment radio news channels.

The UK may be forced to listen to technological reality though, if it’s workaround for iOS Bluetooth background access proves as flakey as analysis suggests. And it’s telling that the NHSX is funding parallel work on an app that could plug into the Apple-Google API, per reports in the FT, which would mean abandoning the centralized architecture.

Which leaves France as the highest profile hold-out.

In recent weeks a team at Inria, the government research agency that’s been working on its centralized ROBERT coronavirus contacts tracing protocol, proposed a third way for exposure notifications — called DESIRE — which was billed as an evolution of the approach “leveraging the best of centralized and decentralized systems”.

The new idea is to add a new secret cryptographically generated key to the protocol, called Private Encounter Tokens (PETs), which would encode encounters between users — as a way to provide users with more control over which identifiers they disclose to a central server, and thereby avoid the system harvesting social graph data.

“The role of the server is merely to match PETs generated by diagnosed users with the PETs provided by requesting users. It stores minimal pseudonymous data. Finally, all data that are stored on the server are encrypted using keys that are stored on the mobile devices, protecting against data breach on the server. All these modifications improve the privacy of the scheme against malicious users and authority. However, as in the first version of ROBERT, risk scores and notifications are still managed and controlled by the server of the health authority, which provides high robustness, flexibility, and efficacy,” the Inria team wrote in the proposal. 

The DP-3T consortium, backers of an eponymous decentralized protocol that’s gained widespread backing from governments in Europe — including Germany’s, followed up with a “practical assessment” of Inria’s proposal — in which they suggest the concept makes for “a very interesting academic proposal, but not a practical solution”; given limitations in current mobile phone Bluetooth radios and, more generally, questions around scalability and feasibility. (tl;dr this sort of idea could take years to properly implement and the coronavirus crisis hardly involves the luxury of time.)

The DP-3T analysis is also heavily skeptical that DESIRE could be made to interoperate with either existing centralized or decentralized proposals — suggesting a sort of ‘worst of both words’ scenario on the cross-border functionality front. So, er…

One person familiar with EU Member States’ discussions about coronavirus tracing apps and interoperability, who briefed TechCrunch on condition of anonymity, also suggested the DESIRE proposal would not fly given its relative complexity (vs the pressing need to get apps launched soon if they are to be of any use in the current pandemic). This person also pointed to question marks over required bandwidth and impact on device battery life. For DESIRE to work they suggested it would need universal uptake by all Europe’s governments — and every EU nation agreeing to adopt a French proposal would hardly carry the torch for nation state sovereignty.

What France does with its tracing app remains a key unanswered question. (An earlier planned debate on the issue in its parliament was shelved.) It is a major EU economy and, where interoperability is concerned, simple geography makes it a vital piece of the Western European digital puzzle, given it has land borders (and train links into) a large number of other countries.

We reached out to the French government with questions about how it proposes to make its national coronavirus contacts tracing app interoperable with decentralized apps that are being developed elsewhere across the EU — but at the time of writing it had not responded to our email.

This week in a video interview with BFM Business, the president of Inria, Bruno Sportisse, was reported to have expressed hope that the app will be able to interoperate by June — but also said in an interview that if the project is unsuccessful “we will stop it”.

“We’re working on making those protocols interoperable. So it’s not something that is going to be done in a week or two,” Sportisse also told BFM (translated from French by TechCrunch’s Romain Dillet). “First, every country has to develop its own application. That’s what every country is doing with its own set of challenges to solve. But at the same time we’re working on it, and in particular as part of an initiative coordinated by the European Commission to make those protocols interoperable or to define new ones.”

One thing looks clear: Adding more complexity further raises the bar for interoperability. And development timeframes are necessarily tight.

The pressing imperatives of a pandemic crisis also makes talk of technological sovereignty sound a bit of, well, a bourgeois indulgence. So France’s ambition to single-handedly define a whole new protocol for every nation in Europe comes across as simultaneously tone-deaf and flat-footed — perhaps especially in light if Germany’s swift U-turn the other way.

In a pinch and a poke, European governments agreeing to coalesce around a common approach — and accepting a quick, universal API fix which is being made available at the smartphone platform level — would also offer a far clearer message to citizens. Which would likely help engender citizen trust in and adoption of national apps — that would, in turn, given the apps a greater chance of utility. A pan-EU common approach might also feed tracing apps’ utility by yielding fewer gaps in the data. The benefits could be big.

However, for now, Europe’s digital response to the coronavirus crisis looks messier than that — with ongoing wrinkles and questions over how smoothly different nationals apps will be able to work together as countries opt to go their own way.

15 May 2020

Where to shop online that isn’t Amazon, Target or Walmart

As shutdown orders extend indefinitely, online shopping has become a lifeline for people forced to avoid the outside world. Often times opting to shop with a mega corporation like Amazon, Walmart or Target is the path of least resistance, but there are plenty of reasons to patronize an alternative.

There are the ethical questions currently swirling around things like worker safety, as COVID-19 takes a toll on the often low-paid essential workers who keep these businesses running. It’s also arguably now more important than ever to support small and local businesses, and more and more brick and mortars announce that they simply won’t be able to rebound after the disastrous economic effects of the shutdown.

Not every company listed below is a small business (Chewy, for example, is owned by pet supply giant PetSmart), but the below list compiled by our editorial team should offer a good variety to help you mix up your online shopping.

Groceries/Household

GettyImages 1041147560 1

In this rear view, an unrecognizable woman stands with a shopping cart in front of a shelf full of food in the bread aisle of a grocery store.

Thrive Market: Organic and non-GMO brands of food, home and beauty products, including healthy food, clean beauty and bath products, safe supplements and non-toxic home cleaner.

Great for: Stocking up on healthier grocery items for the pantry and other household needs. 

Grove Collaborative: Eco-friendly home essentials, including cleaners, personal care, bath, baby/kid and pet products.

Great for: Stocking up on concentrated cleaners that reduce plastic waste and save trips to the store. 

Boxed: Online wholesale shopping on groceries, household products and health supplies.

Great for: An online alternative to Costco and Sam’s Club for items you like to buy in bulk. (T.P. is often out-of-stock though!) 

Pet Supplies

A pet cat asleep on the doormat in a conservatory.

Chewy: Online pet store offering food, toys, litter and other pet needs, including both over-the-counter medicine and prescriptions.

Great for: High-quality foods and treats and skipping the vet for prescription refills.

The Farmer’s Dog: All-natural dog food delivery subscription service. Food is proportioned for your dog and delivered to your door.

Great for: Fresh food delivery and those who want a “set it and forget it” option for buying dog food.

Beauty/Baby Supplies

Image Credits: Vladmir Godnik / Getty Images

The Honest Company: Ethical baby and beauty supply company.

Great for: Diapers, baby needs and cruelty-free beauty, bath and body products. 

Ulta: Beauty supply superstore offering ship-to-home and curbside pickup.

Great for: Makeup for your Zoom meetings; skincare products for all that indoor air you’re now living in. 

Sephora: Online beauty store offering direct shipping.

Great for: Makeup, skincare and self-care items, as well as gift sets for someone who needs a boost.

Glossier: Online beauty brand that’s skin-first, makeup second.

Great for: Skincare, body and makeup.

Books & Entertainment

Image Credits: Andersen Ross/Blend Images

Bookshop.org: This newly launched offering is designed specifically to support independent bookstores in a post-Amazon age. You can browse a wealth of titles and designate the specific store you want to support and they’ll get all the profits. With so many bookstores struggling to stay afloat well before the COVID pandemic, this could be Bookshop’s moment.

Great for: Supporting independent bookstores while shopping online. 

Powell’s: For book lovers, few things beat stepping foot inside this Portland mecca. Until things open back up, online shopping is the next best thing.

Great for: Used books galore. 

Amoeba Records: For psychical music releases, going straight to the label is often your best bet. Record stores are a great option, too. California’s Amoeba is one of the greatest small music chains in the world, but it’s among those with an uncertain post-COVID future, having recently announced the expected closure of its Hollywood location.

Great for: New and used vinyl, CDs and books. 

Forbidden Planet: This Manhattan mainstay has become a go-to for mainstream and indie comics lovers alike. The store is one of countless currently struggling to stay afloat during the COVID crisis. They’ve started a GoFundMe, but better yet, go order some comics.

Great for: Comics, from superhero to super indie. 

Trident Bookstore: This gem of a Boston bookstore survived a fire and finals season, so you know it’s a special one. Its selling books all over the United States right now (and if you’re in Boston, it’ll add in brunch too).

Great for: Well-known titles as well as undercover ones. Also, pro tip: You can purchase a “creative add-on” in your package like a surprise puzzle or a bundle of greeting cards, depending on availability. 

Athletic

Los Angeles Apparel: This site is selling three-pack face masks in a variety of colors, and all purchases help fund their ability to donate masks to essential services and provide living wages.

Great for: A comfortable cotton mask that also does good. 

Donkaka.com: Fashionable face masks sold direct to consumer with free shipping.

Great for: Stylist, reusable comfort. 

Tiny pleasures and knick-knacks

Participants play a Magic: The Gathering card game during a weekly tournament at the Uncommons hobby shop in New York, U.S., on Thursday, June 27, 2019. In the battle for gaming dominance, Hasbro Inc. has what it hopes is an ace up its sleeve in a deck of playing cards that hit the market 26 years ago. Photographer: Mark Abramson/Bloomberg via Getty Images

The Little Market: This nonprofit sells fair-trade goods made by people in need, from individuals with disabilities to women transitioning out of homelessness.

Great for: Candles, tote bags, soaps and sugar scrubs. 

Uncommon Goods: Unique gifts, decor, games and more

Great for: Unusual items to break your quarantine boredom, especially kids’ crafts and toys for parents whose children have now tired of every toy in the house.  

15 May 2020

Daily Crunch: Facebook is acquiring Giphy

Facebook acquires a popular GIF search engine, video game sales see major growth and Sorrentino reports promising results for a COVID-19 treatment.

Here’s your Daily Crunch for May 15, 2020.

1. Facebook to acquire Giphy in a deal reportedly worth $400 million

Facebook will acquire Giphy, the web-based animated GIF search engine and platform provider. The company confirmed the deal but isn’t disclosing the terms; Axios reports that it’s worth around $400 million.

Giphy has grown to be a central source for shareable, high-engagement content, and its animated response GIFs are available across Facebook’s platforms, as well as through other social apps and services. Most notably, Giphy provides built-in search and sticker functions for Facebook’s Instagram, and it will continue to operate in that capacity.

2. US video game sales have record quarter, as consumers stay at home

New numbers from NPD confirm what we’ve known for a while: The first quarter of 2020 was a very good one for gaming companies. The new report notes that sales hit a record $10.86 billion in the U.S. between January and March of this year, marking a 9% increase over a year prior.

3. Sorrento finds a coronavirus antibody that blocks viral infection 100% in preclinical lab experiments

Therapeutics company Sorrento has made what it says could be a breakthrough in potential treatment of SARS-CoV-2, the virus that leads to COVID-19. The company released details of its preclinical research on Friday, announcing that it has found an antibody that provides “100% inhibition of SARS-CoV-2 virus infection of healthy cells after four days incubation.”

4. Indian food delivery startup Zomato cuts 13% of workforce

The 11-year-old firm did not disclose the exact number of people it was letting go, but the number is above 500. A Zomato spokesperson told TechCrunch that the startup employs about 4,000 people and the layoff impacts its workforce globally.

5. Big VCs stacked billions in Q1 while smaller firms saw their haul shrink

New data out today details how U.S.-based VCs fared in Q1 2020, giving us a window into how flush the financial class of startup land was as it headed into the COVID-19 era. The short answer is that big funds raised lots of cash, while smaller funds appear to have put in a somewhat lackluster quarter. (Extra Crunch membership required.)

6. Why did Apple buy NextVR?

At face value, this acquisition seems a little strange for Apple — the company has been pushing full-throttle on mobile AR, largely eschewing public activity or interest in the VR world. But virtual reality might feel like a safer investment at the moment.

7. WeWork and SoftBank unveil the first 14 startups in their Emerge accelerator for underrepresented founders

It’s an equity-free, eight-week program that includes workshops, access to mentors from SoftBank and the WeWork community and sessions with SoftBank executives. It all culminates in a showcase event for investors and SoftBank partners.

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.

15 May 2020

Some investors turn to cutting fully remote checks while sheltering in place

By March 16, founder Janine Yancey was tired of playing the waiting game. After watching the stock market take yet another unprecedented nosedive due to coronavirus, she called up a potential investor.

“If this isn’t going to happen, let’s call it now,” Yancey said, referring to the close of her Series A round, the first capital her culture tech company, Emtrain, would have accepted in 14 years. “At that point, I put my nose to the grindstone; I didn’t have a lot of bandwidth in engaging in conversation that wasn’t going anywhere.”

She had the conversation on Monday, and the deal closed on Friday. “I remember thinking, ‘this is the only deal that is happening this month,’ ” she recalled.

As lockdowns extend to prevent the spread of the coronavirus, investors and startups are searching for new ways to connect with each other. At this moment, deals are happening between screens instead of over drinks at The Battery or coffee at The Creamery. A number of investors have already cut fully remote checks, saying it impacts everything from the due diligence process, to appetite, to who gets to access capital in the first place.

15 May 2020

Biden campaign releases a flurry of digital DIY projects and virtual banners. Yes, there are Zoom backgrounds

2020 is a nightmare year by most metrics, and it’s also a worst-case-scenario emerging out of a best-case-scenario for Joe Biden . After trailing in early primary states, Biden came crashing back on a stunning wave of Super Tuesday support. Now the presumptive Democratic nominee in the midst of a global health crisis that’s immobilized the U.S. workforce and somehow even further polarized American politics, the former Vice President will have to navigate completely uncharted waters to find a path to the presidency.

Biden—not the most internetty candidate out of 2020’s wide Democratic field by a long shot— is now tasked with getting creative, connecting with voters not at rallies or traditional events, the kind of thing the famously affable candidate excels at, but through screens. Making those connections is crucial for attracting less engaged voters, wrangling straying progressives and even maintaining its body of existing supporters, who need to be kept energized to power the campaign into the general election.

To that end, the Biden campaign is rolling out a new collection of digital assets to energize supporters stuck at home and to communicate the Biden brand’s visual language to everybody else. The selection of “Team Joe swag” includes some DIY options for supporters like big “No Malarkey!” home window placards and “We want Joe” button templates.

The campaign is also releasing an array of print-friendly coloring book pages to amuse idle politically-inclined progeny. Some of the pages thank frontline workers and immortalize Biden’s two german shepherds in crayon, while others depict Biden’s more meme-worthy symbols: ice cream cones and his trademark aviator sunglasses. (A viral moment from 2014 combined the two.)

For supporters who aren’t leaning into arts and crafts just yet, there’s “Joementum” phone wallpapers, banners optimized for social media and yes, a full set of Zoom backgrounds depicting Biden’s recent campaign stage: his home library.

Some critics say he needs to ditch his basement studio, but Biden said he plans to follow public health guidelines, hitting the virtual campaign trail from his now-expanded home setup in Delaware via virtual town halls and video chats, like his recent Instagram Live sit-down with U.S. soccer superstar and former Warrenite Megan Rapinoe.

The signs and wallpapers are just a tiny part of the campaign’s big picture, but depending on what comes after, a candidate’s visual signature can sear a political moment into the collective consciousness. Think Obama’s 2008 “Hope” poster by the artist Shepard Fairey, later acquired by National Portrait Gallery (Fairey himself later denounced the Obama administration’s drone program). Or Trump’s telltale red MAGA hats, which no one will be forgetting any time soon, regardless of how the general election shakes out.

Warm and fuzzy

For a campaign stuck indoors, visual branding is more important than ever. Biden’s visual brand mostly seems to focus on positive feelings that bring people together—kindness, faith, togetherness—rather than policy specifics or even “dump Trump” style calls to action.

“We want to find ways to make people feel involved while they’re cooped up at home,” the campaign’s Deputy National Press Secretary Matt Hill said. “These are tools that are going to help everyone who is involved with the campaign communicate that visually in a time when everyone is particularly logged on.”

Much has been written about how the virtual race poses unique challenges for the Biden campaign. The presumptive Democratic nominee is a candidate best known for his affable, empathetic in-person demeanor. But empathy doesn’t always perform well online, particularly when cast against the sound and fury of the factually-unencumbered, cash-flush Trump campaign.

“Branding communicates values, and during this crisis we want to let Joe Biden’s values shine through,” Hill said. “Yes, it’s of course ice cream and aviators, but it’s also decency, empathy, hope, and everything that is just the polar opposite of Donald Trump.”

The campaign frames this in broad strokes, good-against-evil language, describing Biden’s online movement as one of “empathy and human connection” out to topple the dark forces at work on the internet. The campaign’s digital director Rob Flaherty has said that 2020 is not just a fight for America itself, but also a “battle for the soul of the internet.”

“Right now, people are craving empathy and good… it gives us an advantage,” Hill said. “You have one side that often fights to win the Twitterverse with vitriol, and then you have us,”

Joementum?

Biden’s campaign has come under some scrutiny in recent weeks for the perception that it’s been slow to adapt to the pandemic era. Obama campaign veterans David Plouffe and David Axelrod penned a New York Times op-ed in early May calling for Biden to step up his digital efforts, likening his current broadcasts to “an astronaut beaming back to earth.”

After weeks of concern from insiders worried the Biden campaign might not be building the online momentum it needs, the campaign just beefed up its previously lean team with a flurry of new hires. The new talent will particularly build out the campaign’s digital operations, which it plans to double in size.

The hires include former Elizabeth Warren staffer Caitlin Mitchell, who will advise the Biden camp on digital strategy and help it scale up, Buzzfeed Video and Kamala Harris campaign alum Andrew Gauthier, who joins the Biden campaign as its video director and Robyn Kanner, previously Beto for America’s creative director, to lead design and branding.

It will be interesting to see what else emerges out of the “Biden brand,” which doesn’t translate as easily to organic virality as Bernie’s all-purpose “I’m once again asking” meme or the somehow-not-cloying antics of Elizabeth Warren’s lovable golden retriever Bailey. At least for now, the campaign doesn’t seem to view that as a problem.

But cracking virtual campaigning is not the only headwind for the Biden campaign at the moment. Sexual assault allegations by former Biden Senate aide Tara Reade made their way into mainstream reporting in April. And if formulating a response to such serious allegations would be delicate under normal circumstances, the Biden campaign has had to figure out how do it from a silo.

With its early technical difficulties ironed out, the Biden campaign may have a bit more breathing room to get creative. The campaign is focused on what it views as its “core platforms” for now—Facebook, YouTube, Instagram, Twitter and Snapchat—but it plans to both “invest more deeply” in those and also look at other platforms in the process of scaling up.

“We’ve already seen volunteers expand on Discord, Reddit, Pinterest and elsewhere,” Biden campaign Director of Digital Content Pam Stamoulis told TechCrunch.

Stamoulis also notes that the campaign is in “close communication” with the major social platforms where it focuses its efforts.

“… We have scheduled and consistent check in times to go over best practices, recommendations, new tools and brainstorm ideas and concepts to help optimize our use of their platforms,” Stamoulis said. “We anticipate working closely with platforms as we continue to move into the general.”

Biden’s stay-the-course digital strategy seems to reflect the thinking of his unlikely Super Tuesday coup, believing that you need the biggest coalition possible and you don’t necessarily build it through the buzziest politics or the flashiest moments. The campaign doesn’t want Biden to go viral as much as it wants him to connect with the most people in the broadest possible sense.

And to his credit, between the South Carolina comeback and his team-of-rivals Super Tuesday trick, Biden pulled it all off somehow. If there’s anything we can count on in 2020, whether it’s U.S. politics or a global health reckoning, it’s that we don’t know what the hell is going to happen. That lesson seems especially resonant for the extremely online among us, who seem to discover again and again that we are but a tiny, self-selecting sliver of the American electorate.

There’s no word on if we’ll see Biden trading island codes for Animal Crossing à la AOC or a virtual likeness of the candidate looming over Fortnite’s map psychedelic Travis Scott-style, but in a truly unusual election year, nothing is quite off the table.

15 May 2020

Vice lays off 155, as COVID-19 continues to slam media revenue

In a memo titled “The Course Ahead,” Vice Media Group CEO Nancy Dubuc announced a large round of layoffs to staff. The number includes 155 workers — 55 of whom will lose their jobs today. The remaining 100, meanwhile, will be let go in the coming weeks. The figure comprises around 5% of the company’s overall headcount.

Dubuc cites “tough decisions” in the memo, noting that the company has “done absolutely everything we could to protect these positions for as long as possible, and your time and contributions will forever be part of who we are and who we will become.”

Vice’s Union confirmed the figure, noting that the 55 are coming from U.S.-based operations, while the other 100 will be pulled from the company’s international operations. The Union adds that, contrary to Dubuc’s claims, “Vice repeatedly refused to discuss workshare programs” that might have be used to lower the impact on job figures. The union for Vice Media-owned Refinery29 echoed the statements in its own tweet.

Nancy Dubuc

LAS VEGAS, NV – JANUARY 10: A+E Networks President and CEO Nancy Dubuc participates in a keynote panel on the future of video at CES 2018 at Park Theater at Monte Carlo Resort and Casino in Las Vegas on January 10, 2018 in Las Vegas, Nevada. CES, the world’s largest annual consumer technology trade show, runs through January 12 and features about 3,900 exhibitors showing off their latest products and services to more than 170,000 attendees. (Photo by Ethan Miller/Getty Images)

Vice is hardly alone, of course. Even as more people have their eyes glued to computer screens and news reports, revenue has declined during the COVID-19 crisis. Reporting on itself, The New York Times noted its own revenue struggles, even as digital subscriptions have climbed,

In keeping with a trend that has affected other news organizations during the pandemic, The Times attracted new readers while the money it brought in from advertising plummeted. Overall ad revenue fell more than 15 percent, to $106.1 million, in the quarter. Digital ad revenue declined 7.9 percent, while print ad revenue had a drop of 20.9 percent.

It’s a familiar and frustrating refrain across the board. Even with readership up for some, companies simply aren’t spending on ads during the pandemic. Times likes these, the ad revenue model feels like a precarious house of cards on top of which media empires have been built. Buzzfeed, Vox and Bustle have all announced either layoffs, pay cuts or employee furloughs in recent weeks, leaving many to ponder at the future of the already precarious world of digital media.

It’s true that publications suffer every time a slight gust of wind upsets the state of the economy, but the COVID-19 recession feels different in virtually every way. In addition to the 36 million Americans who have filed unemployment since the start of the crisis, the pandemic has had extraordinarily far reaching impacts on ever aspect of the economy. Not even ad giants like Facebook and Google are immune from the effects. A report from late March noted that the internet giants could see a combined loss of $44 billion in ad revenue before year’s end.

Digital media has felt like a precarious industry for some time. The effects of economic recessions and feelings of distrust against media sowed by the White House have made the last few years particularly difficult. The addition of the unprecedented uncertainty of COVID-19 is adding rocket fuel to that fire.

We’ve reached out to Vice for comment.

15 May 2020

Facebook to acquire Giphy in a deal reportedly worth $400 million

Facebook will acquire Giphy, the web-based animated gif search engine and platform provider, Facebook confirmed today, in a deal worth around $400 million, according to a report by Axios. Facebook said it isn’t disclosing terms of the deal. Giphy has grown to be a central source for shareable, high-engagement content, and its animated response gifs are available across Facebook’s platforms, as well as through other social apps and services on the web.

Most notably, Giphy provides built-in search and sticker functions for Facebook’s Instagram, and it will continue to operate in that capacity,  as well as be available to its other apps through existing and additional integrations. People will still be able to upload their own GIFs, and Facebook intends to continue to operate Giphy under its own branding and offer integration to outside developers.

Facebook says it will invest in additional tech development for Giphy, as well as build out new relationships for it on both the content side, as well as the endpoint developer side. The company says that fully 50% of traffic that Giphy receives actually already comes from Facebook’s apps, including Instagram, Messenger, the FB app itself and WhatsApp .

Giphy was founded in 2013, and was originally simply a search engine for GIFs. The website’s first major product expansion was an extension that allowed sharing via Facebook, introduced later in its founding year, and it quickly added Twitter as a second integration. According to the most recent data from Crunchbase, Giphy had raised $150.9 million across five rounds, backed by funders including DFJ Growth, Lightspeed, Betaworks, GV, Lerer Hippeau and more.

15 May 2020

Big VCs stacked billions in Q1 while smaller firms saw their haul shrink

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

After spending perhaps more time than we should have recently trying to figure out what’s going on with the public markets, let’s return to the private markets this morning, focusing in on venture capital itself. New data out today details how U.S.-based VCs fared in Q1 2020, giving us a window into how flush the financial class of startup land was heading into the COVID-19 era.

The short answer is that big funds raised lots of cash, while smaller funds appear to have put in a somewhat lackluster quarter.

That big funds performed well in Q1 shouldn’t surprise. We’ve seen NEA stack $3.6 billion in March and Founders Fund raised $3 billion for its own investing work earlier in the quarter, to pick two examples TechCrunch covered.

The impact of these mega-raises, according to a report from Prequin and First Republic Bank, was to push up the total amount of capital raised by American venture capital firms in the quarter, while the decline in the number of funds that raised $50 million or less led to a slim number of total funds raised. It’s hard to call a surge in dry powder bearish, but the fall-off on smaller funds could limit seed capital in the future.

Notably, there have been warning signs since at least 2019 that seed volume was slowing; recent data from the U.S. underscores the trend. So what we’re seeing this morning in data-form is a summation of what we’ve previously reported in a more piecemeal fashion.

Let’s pick over the data to see what we can learn about how much spare capital the venture classes are sitting on today.

The rich get richer

The whole report is worth reading if you have time. Aside from the data concerning how much money VCs are raising themselves, it includes several interesting bits of information. For example, there were just 960 venture deals closed in the U.S. in Q1 — a pace that would make 2020 the slowest year since 2009 if it held steady.

Per the listed data, 83 U.S.-based venture capitalists closed (“held a final close”) a fund in Q1 2020. This was off about 24% from the Q1 2019 result of 109. However, while the number of funds raised was lackluster, they made up for it in dollar-scale. According to Preqin and First Republic Bank, the “funds that closed raised $27 [billion], a substantial total representing over half of the capital raised in 2019 ($50 [billion]).”