Author: azeeadmin

12 Jan 2019

Startups Weekly: Will Trump ruin the unicorn IPOs of our dreams?

The government shutdown entered its 21st day on Friday, upping concerns of potentially long-lasting impacts on the U.S. stock market. Private market investors around the country applauded when Uber finally filed documents with the SEC to go public. Others were giddy to hear Lyft, Pinterest, Postmates and Slack (via a direct listing, according to the latest reports) were likely to IPO in 2019, too.

Unfortunately, floats that seemed imminent may not actually surface until the second half of 2019 — that is unless President Donald Trump and other political leaders are able to reach an agreement on the federal budget ASAP.  This week, we explored the government’s shutdown’s connection to tech IPOs, recounted the demise of a well-funded AR project and introduced readers to an AI-enabled self-checkout shopping cart.

1. Postmates gets pre-IPO cash

The company, an early entrant to the billion-dollar food delivery wars, raised what will likely be its last round of private capital. The $100 million cash infusion was led by BlackRock and valued Postmates at $1.85 billion, up from the $1.2 billion valuation it garnered with its unicorn round in 2018.

2. Uber’s IPO may not be as eye-popping as we expected

To be fair, I don’t think many of us really believed the ride-hailing giant could debut with a $120 billion initial market cap. And can speculate on Uber’s valuation for days (the latest reports estimate a $90 billion IPO), but ultimately Wall Street will determine just how high Uber will fly. For now, all we can do is sit and wait for the company to relinquish its S-1 to the masses.

3. Deal of the week

N26, a German fintech startup, raised $300 million in a round led by Insight Venture Partners at a $2.7 billion valuation. TechCrunch’s Romain Dillet spoke with co-founder and CEO Valentin Stalf about the company’s global investors, financials and what the future holds for N26.

4. On the market

Bird is in the process of raising an additional $300 million on a flat pre-money valuation of $2 billion. The e-scooter startup has already raised a ton of capital in a very short time and a fresh financing would come at a time when many investors are losing faith in scooter startups’ claims to be the solution to the problem of last-mile transportation, as companies in the space display poor unit economics, faulty batteries and a general air of undependability. Plus, Aurora, the developer of a full-stack self-driving software system for automobile manufacturers, is raising at least $500 million in equity funding at more than a $2 billion valuation in a round expected to be led by new investor Sequoia Capital.


Here’s your weekly reminder to send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets


5. A unicorn’s deal downsizes

WeWork, a co-working giant backed with billions, had planned on securing a $16 billion investment from existing backer SoftBank . Well, that’s not exactly what happened. And, oh yeah, they rebranded.

6. A startup collapses

After 20 long years, augmented reality glasses pioneer ODG has been left with just a skeleton crew after acquisition deals from Facebook and Magic Leap fell through. Here’s a story of a startup with $58 million in venture capital backing that failed to deliver on its promises.

7. Data point

Seed activity for U.S. startups has declined for the fourth straight year, as median deal sizes increased at every stage of venture capital.

8. Meanwhile, in startup land…

This week edtech startup Emeritus, a U.S.-Indian company that partners with universities to offer digital courses, landed a $40 million Series C round led by Sequoia India. Badi, which uses an algorithm to help millennials find roommates, brought in a $30 million Series B led by Goodwater Capital. And Mr Jeff, an on-demand laundry service startup, bagged a $12 million Series A.

9. Finally, Meet Caper, the AI self-checkout shopping cart

The startup, which makes a shopping cart with a built-in barcode scanner and credit card swiper, has revealed a total of $3 million, including a $2.15 million seed round led by First Round Capital .

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12 Jan 2019

Mental well-being took center stage at CES 2019

This week, the Las Vegas Convention Center was packed with many of the year’s biggest new devices. But over the last several years, The Sands has become the place where the real magic happens. The segment of the show known as Eureka Park is where the startups and accelerators congregate, often times showing off products that are still years away.

A quick walk around the floor (insofar as someone can walk quickly with that much humanity slowly shuffling through the halls) sheds a lot of light on the industry’s biggest trends. Plenty are holdovers from previous years — smart home and wearables continue to dominate —  but others offer insight into where the next several years of technology may be going.

One key trend that absolutely exploded this past year is mental well-being. Between the sleep, relaxation, concentration and meditation products on display, you couldn’t walk five feet without encountering another pitch. The list includes some familiar faces (to us, at least) like the Muse meditation and sleep headsets and a whole slew of new entrants.

The trajectory tracks if you consider many of these products a kind of extension of the fitness trackers that were all the rage a few years back. First startups pushed to keep our bodies in shape, moving on to sleep tracking and, eventually, our minds. The accessibility of sensors that can track things like basic brain activity have helped push the concept along.

It’s a worthy cause, of course. The proliferation of many technologies has done some pretty rough stuff to our bodies and brains over the years. Wouldn’t it be great if tech could also turn that around.

In many cases, the use is clear. Decades of scientific studies have demonstrated the value simply sitting quietly during meditation practice can have on your stress levels and mental health. If a product can help you get into a routine, great. But there’s an even larger opportunity for snake oil salespeople than we saw on the fitness side.

Certainly the FDA has a role to play, ensuring that companies can’t make untested medical claims for their products, but much of the burden here will ultimately be placed on journalist and consumer alike. When it comes to this category, the placebo effect is very real.

12 Jan 2019

Anker’s PowerPort Atom is my permanent new travel companion

I had fight a couple of coworkers for this thing. It’s a strange thing to fight over, I realize, but we are strange people with a strange job. And more importantly, I won. I’m plugged into the PowerPort Atom as I write this. It’s keeping my 13-inch MacBook Pro alive via the plane power outlet tightly squeezed behind my legs.

I travel a lot, and I try to travel light. Determining what goes into and what stays out of my carryon feels a bit like stocking delivery rockets for the International Space Station sometimes. But I feel pretty confident in saying that this tiny little plug just scored a permanent spot. Well, until the PowerPort Quark comes along, I guess.

One of the beauties of Apple’s switch to Thunderbolt 3/USB-C is the modularity of it all. I’m sure Apple will tell you to stick to official and officially licensed products, but the ability to mix and match these things has given us some solid options, and Anker’s right there to reap the benefit.  The products the company makes are rarely flash or sexy, but they’re often genuinely useful in a way few accessory manufacturers can claim.

As someone who has owned a lot of Apple Chargers over the years, it’s pretty remarkable what Anker has done here. I’d recently switched to Google’s PixelBook charger for travel, but that has nothing on this. Hell, the Atom is smaller than some phone chargers I’ve used over the year.

It’s small and white,  with a single USB-C port. It’s not quite as slim as, say, a standard iPhone charger, so it can get a bit tight with alongside some larger chargers (RavPower’s dual-USB charger, for instance), but it frees up a lot of space. And in scenarios like the plane I’m typing this from, you’re a lot less likely to accidentally knock it out with your leg, leaving you fumbling blindly to plug it back in.

It’s not a perfect thing, of course. It can get quite hot to the touch when charging something large. And don’t even think about charging up, say, your 15-inch Pro. With certain outlets in certain scenarios, the charging process could be downright sluggish. I can’t remember ever seeing “Estimated Charging Time: 10 hours” before.

For the most part, I’d recommend the Atom for those instances when you want to maintain a charge, rather than filling the battery up quickly. I full expect to continue to bring the full-size charger along with me for when I get back to the hotel and need to fill it back up for the night. 

In a  an ideal world, Anker would have somehow squeezed in an additional USB-C or full-size USB port to charge two devices at once, but that kind of request is probably flying too close to the sun here.  And hell, at $30, one is still an excellent deal. 

12 Jan 2019

SpaceX will lay off hundreds to ‘become a leaner company’

SpaceX plans to lay off approximately 10 percent of its workforce in order to manage its costs, the company confirmed to TechCrunch today. First reported by Ars Technica’s Eric Berger, the news comes as the company embarks on an ambitious plan to develop and test an interplanetary spacecraft while simultaneously performing frequent orbital launches.

In a statement provided to TechCrunch, SpaceX explained that the layoffs are in pursuit of becoming a “leaner company” and that they were only necessary due to “the extraordinarily difficult challenges ahead.”

To continue delivering for our customers and to succeed in developing interplanetary spacecraft and a global space-based Internet, SpaceX must become a leaner company. Either of these developments, even when attempted separately, have bankrupted other organizations. This means we must part ways with some talented and hardworking members of our team. We are grateful for everything they have accomplished and their commitment to SpaceX’s mission. This action is taken only due to the extraordinarily difficult challenges ahead and would not otherwise be necessary.

The company employed at least 7,000 people in late 2017 when COO Gwynne Shotwell last gave a number — which means around 700 will lose their jobs.

I asked SpaceX for more information on where these jobs might come from — engineering, manufacturing, sales, certain projects, etc — but apart from the statement the company did not offer any answers.

Layoffs of this scale ring alarm bells pretty much across the board, but the company has insisted that it is solvent and successful. And indeed even if it were not, it is hard to imagine that its extremely successful and increasingly reliable Falcon 9 launch vehicle would cease operations any time soon. In fact one might expect launch numbers to increase with financial difficulties in order to increase revenue.

Why such a major reduction in workforce, and why now? The company’s excuse of wanting to be lean doesn’t explain much; SpaceX can hardly have any fat to trim off it considering how young and small it is compared with other aerospace concerns, as well as the breadth of its services and research. It seems unlikely that there are hundreds of middle managers loafing their way to a paycheck. It’s far more likely SpaceX barely has enough employees to do what it already does.

But mounting costs may simply have caught up with SpaceX’s ambitions; it has, after all, been forging forward on multiple fronts, any single one of which would be more than enough for a single company.

It has been building and actively improving its Falcon 9 and Falcon Heavy launch vehicles for years, with the former now more or less in a final state but the latter far from it. It has been researching and prototyping an interplanetary spacecraft, formerly known as the BFR and now Starship. It is building and testing a crewed capsule intended to bring astronauts to the International Space Station. And it is planning a 400-strong constellation of satellites to deliver high speed internet connectivity at a global scale.

So it is perhaps understandable that despite raising $450 million in 2017 and having another round of a similar size rumored to be in negotiation right now, the money is pouring out just about as fast as investors can pour it in. Hundreds of millions in contracts help as well, but they bring costs and responsibilities with them. Its many projects hold the promise of riches, but require years of incubation and investment.

The most logical place to cut from would perhaps be the Falcon 9 development team; CEO Elon Musk indicated that large scale R&D on the platform was ending and being reallocated to the Falcon Heavy and Starship projects. Therefore there may well be designers and engineers who are more easy to part with than others. But that is merely speculation.

All this is just to say that SpaceX’s financials and operations are too complicated to write off major layoffs as simply due to revenue shortfalls or overzealous hiring. I have asked SpaceX for more details and will update this post if I hear back; in the meantime we are very likely to hear more from the company, or the talkative Musk, in the next few days.

11 Jan 2019

Scooter startup Bird tried to silence a journalist. It did not go well.

Cory Doctorow doesn’t like censorship. He especially doesn’t like his own work being censored.

Anyone who knows Doctorow knows his popular tech and culture blog Boing Boing, and anyone who reads Boing Boing knows Doctorow and his cohort of bloggers. The part-blogger, part special advisor at the online rights group Electronic Frontier Foundation, has written for years on topics of technology, hacking, security research, online digital rights, and censorship and its intersection with free speech and expression.

Yet, this week it looked like his own free speech and expression could have been under threat.

Doctorow revealed in a blog post on Friday that scooter startup Bird sent him a legal threat, accusing him of copyright infringement and that his blog post encourages “illegal conduct.”

In its letter to Doctorow, Bird demanded that he “immediately take[s] down this offensive blog.”

Doctorow declined, published the legal threat, and fired back with a rebuttal letter from the EFF accusing the scooter startup of making “baseless legal threats” in an attempt to “suppress coverage that it dislikes.”

The whole debacle started after Doctorow wrote about about how Bird’s many abandoned scooters can be easily converted into a “personal scooter” by swapping out its innards with a plug-and-play converter kit. Citing an initial write-up by Hackaday, these scooters can have “all recovery and payment components permanently disabled” using the converter kit, available for purchase from China on eBay for about $30.

In fact, Doctorow’s blog post was only two paragraphs long and, though didn’t link to the eBay listing directly, did cite the hacker who wrote about it in the first place — bringing interesting things to the masses in bitesize form in in true Boing Boing fashion.

Bird didn’t like this much, and senior counsel Linda Kwak sent the letter — which the EFF published today — claiming that Doctorow’s blog post was “promoting the sale/use of an illegal product that is solely designed to circumvent the copyright protections of Bird’s proprietary technology, as described in greater detail below, as well as promoting illegal activity in general by encouraging the vandalism and misappropriation of Bird property.” The letter also falsely stated that Doctorow’s blog post “provides links to a website where such Infringing Product may be purchased,” given that the post at no point links to the purchasable eBay converter kit.

EFF senior attorney Kit Walsh fired back. “Our client has no obligation to, and will not, comply with your request to remove the article,” she wrote. “Bird may not be pleased that the technology exists to modify the scooters that it deploys, but it should not make baseless legal threats to silence reporting on that technology.”

The three-page rebuttal says Bird used incorrectly cited legal statutes to substantiate its demands for Boing Boing to pull down the blog post. The letter added that unplugging and discarding a motherboard containing unwanted code within the scooter isn’t an act of circumventing as it doesn’t bypass or modify Bird’s code — which copyright law says is illegal.

As Doctorow himself put it in his blog post Friday: “If motherboard swaps were circumvention, then selling someone a screwdriver could be an offense punishable by a five year prison sentence and a $500,000 fine.”

In an email to TechCrunch, Doctorow said that legal threats “are no fun.”

AUSTIN, TX – MARCH 10: Journalist Cory Doctorow speaks onstage at “Snowden 2.0: A Field Report from the NSA Archives” during the 2014 SXSW Music, Film + Interactive Festival at Austin Convention Center on March 10, 2014 in Austin, Texas. (Photo by Travis P Ball/Getty Images for SXSW)

“We’re a small, shoestring operation, and even though this particular threat is one that we have very deep expertise on, it’s still chilling when a company with millions in the bank sends a threat — even a bogus one like this — to you,” he said.

The EFF’s response also said that Doctorow’s freedom of speech “does not in fact impinge on any of Bird’s rights,” adding that Bird should not send takedown notices to journalists using “meritless legal claims,” the letter said.

“So, in a sense, it doesn’t matter whether Bird is right or wrong when it claims that it’s illegal to convert a Bird scooter to a personal scooter,” said Walsh in a separate blog post. “Either way, Boing Boing was free to report on it,” she added.

What’s bizarre is why Bird targeted Doctorow and, apparently nobody else — so far.

TechCrunch reached out to several people who wrote about and were involved with blog posts and write-ups about the Bird converter kit kit. Of those who responded, all said that they had not received a legal demand from Bird.

We asked Bird why it sent the letter, and if this was a one-off letter or if Bird had sent similar legal demands to others. When reached, a Bird spokesperson did not comment on the record.

All too often, companies send legal threats and demands to try to silence work or findings that they find critical, often using misinterpreted, incorrect or vague legal statutes to get things pulled off from the internet. Some companies have been more successful than others, despite an increase in awareness and bug bounties, and a general willingness to fix security issues before they inevitably become public.

Now Bird becomes the latest in a long list of companies that have threatened reporters or security researchers, alongside companies like drone maker DJI, which in 2017 threatened a security researcher trying to report a bug in good faith, and spam operator River City, which sued a security researcher who found the spammer’s exposed servers and a reporter who wrote about it. Most recently, password manager maker Keeper sued a security reporter claiming allegedly defamatory remarks over a security flaw in one of its products. The case was eventually dropped but not before over 50 experts, advocates, and journalist (including this reporter) signed onto a letter calling for companies to stop using legal threats to stifle — and silence security researcher.

That effort resulted in several companies — notably LinkedIn and Tesla — to double down on their protection of security researchers by changing their vulnerability disclosure rules to promise that the companies will not seek to prosecute hackers acting in good-faith.

But some companies have bucked that trend and have taken a more hostile, aggressive — and regressive — approach to security researchers and reporters.

“Bird Scooters and other dockless transport are hugely controversial right now, thanks in large part to a ‘move-fast, break-things’ approach to regulation, and it’s not surprising that they would want to control the debate,” said Doctorow.

“But to my mind, this kind of bullying speaks volumes about the overall character of the company,” he said.

11 Jan 2019

Sensel’s pressure-sensitive display tech works underwater

The Morph is a fun little computer peripheral. The small trackpad uses a series of silicone covers to recreating different interfaces, from a QWERTY keyboard to a drum pad. Ultimately, however, it’s the tech that drives the product — rather than the product itself — that may prove the most useful.

Sensel was on-hand at CES this week, in a much larger booth than the year prior. The Morph took up a chunk of the area, including a musician using different pads to play songs live. But the startup’s real star of the show were a series of thick, unbranded tablets. In a meeting with TechCrunch this time last year, the company noted that it was essentially shopping around the underlying technology for other uses. In a sense, the Morph is as much a way of proving that Sensel’s technology truly works.

Pressure Grid offers an alternative to more traditional capacitive touch, essentially building positional touch and force touch into a single sensor. It’s a less expensive way to accurately determine both the position and pressure (from 1g to 5kg) in one go. It’s also thin and capable of working with flexible displays, making the company well-positioned for what could well be the next wave of mobile devices.

And, as the company was more than happy to demonstrate on the show floor, it actually works underwater. Because what’s the fun of a waterproof phone, really, if you can use wet fingers?

Another key benefit here is the ability detect objects beyond the finger — that could mean using it with a pair of gloves or taking a regular old paintbrush to the service to draw some art. Sensel says it’s built fail safes into to the software, to cut down on false positives, which could definitely present an issue for a device that can register just about any object that comes into contact with it.

Sensel says it’s already begun working with industry partners to implement this technology into commercial device. Of course, like 3D touch before it, incorporating pressure sensitivity is going to take some customer training to make using it a natural part of day to day computing. 

11 Jan 2019

WeWork gets into the food business, backing the superfood startup of big wave surfer Laird Hamilton

WeWork CEO Adam Neumann has been described as an avid surfer, one who has been known to grab his board and go, both in the Hamptons in Long Island, where he reportedly owns a home, as well as in Hawaii.

Maybe it’s no surprise, then, that WeWork is now also investing a so-called superfood company that was created several years ago by big wave surf star Laird Hamilton, who Neumann was apparently surfing alongside just last week. In a video call with Neumann on Monday, a Fast Company reporter noted that Neumann is currently sporting a cast on one of his fingers, having broken it during the outing.

How much WeWork is investing in the startup, Laird Superfood, is not being disclosed, but according to the food company, the money will be used to fuel product development, acquisitions, and to hire more employees. A press release that was published without fanfare earlier today also notes that Laird Superfood products will be made available to WeWork members and employees at select locations soon.

Some of those offerings are certainly interesting, including “performance mushrooms” that it says “harnesses the benefits” of Chaga, a fungus believed by some to stimulate the immune system; Cordyceps, another fungus that’s been used for kidney disorders and erectile dysfuntion; and Lion’s Mane, yet another fungus believed by some to stimulate nerve growth in the brain.

The company suggests adding one teaspoon of the mushrooms each day to one’s coffee, tea, or health shake.

Laird Superfood also sells beet- and turmeric-infused powdered coconut waters, “ultra-caffeinated” coffee, and a variety of coffee creamers, including a mint-flavored creamer and a turmeric-flavored number.

It’s for a very specific consumer, in other words — presumably one who really likes turmeric, for example. Then again, what works for Laird Hamilton will undoubtedly work for a lot of people who’ve watched his decades-long career with amazement.

Hamilton seems to be selling what he actually ingests, too. As he told The Guardian last spring of his own diet: “I love espresso. You could give me five shots of espresso, a quarter stick of butter, a quarter stick of coconut oil and other fat, and I’ll drink that. I could go for five or six hours and not be hungry, because I’m burning fat.”

Organic food companies have been raising money left and right in recent years, including from traditional food companies that don’t want to miss out on the next wave (pun intended), as well as from venture investors, who’ve poured billions of dollars into healthy snacks and drinks, with mixed results.

For WeWork’s part, the investment isn’t the first that has seemed somewhat far afield for the company, which has raised the bulk of its money from SoftBank to date. In one of more surprising bets to date, WeWork invested in a maker of wave pools in 2016. The size of that funding was also undisclosed.

11 Jan 2019

That GoFundMe to build a border wall is issuing $20 million in refunds

A Trump-inspired GoFundMe campaign that raised $20 million ostensibly to build a wall on the southern U.S. border will refund every cent. Run by Brian Kolfage, a veteran with a track record of questionable business practices, the project defied all logistical considerations with its proposal for a “simple and straightforward” plan to build the wall. That didn’t stop the fund from attracting the attention of 337,559 donors at the time of writing.

Surprising perhaps no one beyond its donors, the campaign collided with reality, with Kolfage coming to the realization that “the federal government won’t be able to accept our donations anytime soon” given that there is no actual mechanism through which it could do so. On the campaign page, Kolfage newly disclosed his plans to form a nonprofit, “We Build The Wall, Inc.” that would hold onto the donations until the federal government is able to accept them or until all of the donors eventually forget the project altogether.

Initially, donors were told that their money would be refunded if the goal for the project was not met. On December 22, the project’s language changed, removing any mention of refunds if the goal was not met. With that, the project appears to have run afoul of GoFundMe’s policies.

Kolfage claims that he has formed an advisory board that features war privatization enthusiast and brother of the Secretary of Education Erik Prince and the also ethically questionable former Kansas Secretary of State Kris Kobach, who lost his race this past November.

While Kolfage might be in good company, it sounds like GoFundMe will be automatically handing back every bit of the $20 million he raised before getting called out for changing the terms of the campaign. Donors who still want their money to go to Kolfage will need to opt in specifically.

“If a donor does not want a refund, and they want their donation to go to the new organization, they must proactively elect to redirect their donation to that organization,” GoFundMe told The Hill. “If they do not take that step, they will automatically receive a full refund.”

11 Jan 2019

GM is transforming Cadillac into an electric brand

General Motors is turning Cadillac into its lead electric vehicle brand in a bid to compete against Tesla as well as a host of other automakers bringing EVs onto the market.

Plans are already underway to introduce the first model from the company’s new battery electric vehicle architecture, GM said Friday during an investor meeting.

GM said this new BEV architecture will be the foundation for an advanced family of “profitable EVs,” a word choice likely meant to express the automaker’s conviction to offer up true competition in the EV world, which has been dominated by Tesla on the luxury side and Nissan in terms of pure volume sales.

The flexible platform will provide a broad array of body styles and will be offered in front-wheel, rear-wheel and all-wheel configurations, GM said. The brand’s most critical components, including the battery cells, are being designed for maximum usability across all programs, GM said. The battery system also will be adjustable, based on vehicle and customer requirements.

The announcement made Friday at an investor meeting marks a shift in GM’s approach to making electric vehicles. In the past, GM’s electrified vehicles — namely the all-electric Bolt and the plug-in hybrid Volt — fell under its mass-market Chevrolet brand.

The Bolt appears destined to continue, at least for now. (The Bolt is also used by GM’s self-driving subsidiary GM Cruise as its testing vehicle.) Meanwhile, the Volt is slated to end. GM announced last year it would end production of the Volt and the plug-in Cadillac CT6, which had sluggish sales.

GM has been undergoing a transformation over the past four to five years, getting rid of expensive, money-losing programs like the Opel brand in Europe, and investing more into electrification and autonomous vehicle technology. It has also warned repeatedly, Friday’s investor meeting being no exception, of a coming downturn in the traditional automotive business.

In November, GM ramped up its belt-tightening measures with cuts to factory and white-collar workers, plant closures in North America and the elimination of several car models as it tries to transform into a nimble company focused on high-margin SUVs, crossovers and trucks, and investments in future products like electric and autonomous vehicles.

The actions, which are meant to safeguard the automaker from an expected downturn in the U.S. market, will increase GM’s annual free cash flow by about $6 billion, including cost reductions of $4.5 billion and lower capital expenditure annual run rate of almost $1.5 billion by 2020. Ford took similar cost-cutting measures in 2018.

Even as GM announced those cuts, it said it would double engineering resources allocated to electric and autonomous vehicle programs by 2020.

11 Jan 2019

Improbable urges Unity to unsuspend their license, to rectify ‘farcical’ situation for developers

Improbable may be pissed at Unity, but they still want them back.

In a blog post titled “A final statement on SpatialOS and Unity,” the team at the cloud gaming startup aimed to tell their side of the story and implored Unity to “clarify their terms or unsuspend our licenses.”

Unity is a game engine that developers use to create, among other things, games. Improbable offers a cloud solution to developers that basically enables large multiplayer online gameplay by rendering the game worlds across multiple servers on its SpatialOS platform.

Yesterday, Improbable announced that Unity had terminated their game engine access and that developers that used SpatialOS were in danger of losing their work. Unity responded that live and in development games were fine and that Improbable was in violation of their new terms of service and needed to negotiate a new partnership.

In the new blog post, Improbable doesn’t mince words, saying it “still has all its Unity license and access suspended. We cannot easily fix bugs, improve the service or really support our customers without being in a legal grey area. Anyone who has ever run a live game knows this is a farcical situation that puts games at risk.”

Last night, Improbable appeared to leverage their relation with rival engine-maker Epic Games to put the heat on Unity, creating a $25 million fund with the gaming giant to help developers move to “more open engines,” a pretty transparent knock on Unity.

Improbable now seems to be claiming that Unity basically changed the rules on them and was trying to bully them into a deal that none of their other partners have requested.

“We do not require any direct technical cooperation with an engine provider to offer our services – Crytek, Epic and all other providers clearly allow interoperability without commercial arrangement with cloud platforms. We have no formal technical arrangements there and have not required any with Unity for years.”

Losing Unity support is a huge blow to Improbable, which has raised $600 million largely on the promise that it can revolutionize online gaming, something that would prove difficult to do without one of the largest available game engines.