Author: azeeadmin

07 Jul 2021

We want your city in TechCrunch’s European Cities Survey 2021!

Do you want your city to get its own TechCrunch Survey? They join in! 

So if you are a tech startup founder or investor in one of these cities please fill out our survey form here 

Check the list of European cities we’ve surveyed so far in our regular <a href=”https://forms.gle/jCcVCV9TgRjqJcRZ7“>survey</a> of European founders and investors in cities <em>outside</em> the larger European capitals, and see below. 

We want entrepreneurs and investors to talk about their ecosystems, in their own words. 

This is your chance to put your city on the Techcrunch Map 

If you are a tech startup founder or investor in one of these cities please fill out the survey form here. 

We are particularly interested in hearing from women founders and investors. 

This is the follow-up to the huge survey of investors (see also below) we’ve done over the last six or more months, largely in capital cities. 

These formed part of a broader series of surveys we’re doing regularly for ExtraCrunch, our subscription service that unpacks key issues for startups and investors.

In the first wave of surveys, the cities we wrote about were largely capitals. You can see them listed here.

This time, we are surveying founders and investors in Europe’s other cities to capture how European hubs are growing, from the perspective of the people on the ground.

We’d like to know how your city’s startup scene is evolving, how the tech sector is being impacted by COVID-19, and generally how your city will evolve.

We leave submissions mostly unedited and are generally looking for at least one or two paragraphs in answers to the questions.

Thank you for participating. If you have questions you can email mike@techcrunch.com and/or reply on Twitter to @mikebutcher.

Recent cities we have surveyed so far:

Zagreb

Belfast

Wroclaw

Bristol

Edinburgh

Eindhoven

Valencia

And we want your city to join!

Here are the cities that previously participated in The Great TechCrunch Survey of Europe’s VCs:

Amsterdam/Netherlands

Athens/Greece

Berlin/Germany

Brussels/Belgium

Bucharest/Romania

Copenhagen/Denmark

Dublin/Ireland

Helsinki/Finland

Lisbon/Portugal

London/UK

Madrid & Barcelona/Spain (Part 1 & Part 2)

Oslo/Norway

Paris/France

Prague/Czech Republic

Rome, Milan/Italy

Stockholm/Sweden

Tel Aviv/Israel

Vienna/Austria

Warsaw/Poland (Part 1 & Part 2)

Zurich/Switzerland

07 Jul 2021

Here’s what’s happening tomorrow at TC Early Stage 2021: Marketing and Fundraising

Tighten your bootstraps and get ready to wring every last ounce of education and opportunity out of TC Early Stage 2021: Marketing and Fundraising. Our two-day deep dive into the essential skills every early-stage founder needs to build a stronger startup begins tomorrow!

Hold the proverbial phone. You still have time (though not much) to avoid paying more at the “door.” Buy your pass today, July 7, before 11:59 pm (PT) and you’ll save $100.

We have a program-packed day tomorrow, and here’s a preview of just some of the experts on hand and the topics they’ll cover. Check the event agenda to plan your day, and don’t fret about schedule conflicts. Your pass includes video-on-demand, so you won’t miss a moment.

Pro Tip: Times listed in the agenda will automatically adjust to your geographic location.

How to Line Up Your Growth with Your Goals: Unlike giant brands, startups need to use their marketing spend wisely and efficiently. Sound Ventures’ Susan Su is a growth marketing expert and will share how to define growth based on your startup’s goals, and how to take a framework-based approach to growth, rather than relying on old playbooks that aren’t relevant.

Product Market Fit is All About Tempo: Sequoia’s Mike Vernal understands that the most successful companies are not necessarily the ones with a great idea, but the ability to learn from their customers and adapt quickly. Hear this seasoned venture partner explain how customer feedback loops, product iteration tempo and mindset not only affect fundraising, but the overall trajectory of the company.

How to Get Ready to Fundraise: The process of fundraising doesn’t start with your first meeting. Setting a timeline, preparing your deck, warming up investors and understanding your strengths are key to a successful fundraise, and need to happen well before you start filling up your calendar. Cleo Capital founding partner Sarah Kunst will outline how to get ready to fundraise and answer your most burning questions.

Don’t forget about our other breakout sessions. You’ll hear from folks at SeedInvest, Dell for Entrepreneurs, UserTesting, Movile, Pilot and oVice. Plus, we built time for networking right into the schedule.

Are you ready to take what you know to the next level? TC Early Stage 2021: Marketing and Fundraising, day one, starts tomorrow, and we can’t wait to see you there!

07 Jul 2021

Repeat raises $6 million Series A for its service that makes reordering favorite products easier

Subscriptions have become a popular way to pay for digital services, like Netflix or Spotify, but they haven’t yet taken off as a means of reordering your everyday items or other household essentials. Retailers, including Amazon, have tried shifting consumers to a subscription model for these sorts of purchases — even by offering discounts. Still, consumers have largely balked at the idea of forced reordering on a fixed schedule. A startup called Repeat believes it may have figured out a better solution. Instead of trying to lock consumers into subscriptions, Repeat analyzes consumer purchase behavior to nudge customers when it’s time to reorder. It then provides them with a personalized shopping cart to make the reordering experience fast and painless.

This service is now being used by 67 companies in the consumer packaged goods (CPG) market, including brands like By Humankind (personal care), Jot (coffee), Vegamour (haircare), Youth to the People (skincare), Osea (skincare), hydrant (rapid hydration packets), Twice (toothpaste), lemon perfect (flavored water), and many others.

Today, Repeat is announcing its $6 million Series A, led by Battery Ventures. Seed investors Mucker Capital and Harlem Capital also invested in the round. With the round’s close, Battery’s general partner Neeraj Agrawal, whose background is in enterprise software-as-a-service businesses, is joining Repeat’s board.

Repeat co-founders Sarah Wissel (L) and Kim Stiefel (R)

The idea to tackle e-commerce’s replenishment problem came about after Repeat’s co-founders Kim Stiefel and Sarah Wissel tried launching their own direct-to-consumer apparel brand, UNDR, focused on refreshing the basics — like socks, tees, and underwear. Having spend their careers in the marketing and ad tech world, they believed they would be able to put their experience to work to grow their new business.

After launching a quarterly subscription for t-shirts, the founders soon discovered not only how hard it was to get a brand-new brand off the ground, but also how getting customers to commit to ongoing purchases was even harder. From their customer feedback, the founders learned that most consumers actually don’t like the experience of reordering household items. Customers told them it doesn’t always make sense to reorder products on a fixed schedule.

Unlike Netflix, where you’re paying for the rights to access a broad catalog on an ongoing basis, there are times when you’ll use your household products more quickly or more slowly. That means you’ll sometimes end up receiving items too soon when you’ve ordered them on subscription. That’s not ideal; nor is it very eco-friendly. Other times, you may run out before your scheduled delivery is due to arrive. That’s also a problem.

“We should have known that,” admits Stiefel, now Repeat’s CEO, after hearing that customers didn’t like subscriptions. “We asked ourselves if we actually subscribe to any products, and it turns out, the answer was ‘no.'” 

The founders decided to scrap their subscription in favor of a new idea. Instead of forcing consumers to subscribe on a schedule, they would “nudge” customers to reorder during what they determined would would be the perfect window, based on past order history.

Image Credits: Repeat

After experimenting with personalized reminders for their own brand for a year, Stiebel and Wissel decided to pivot their startup so they could offer this service to any e-commerce CPG company.

Today, any brand that sells a replenishable or consumable product can use Repeat to turn their one-time buyer into a repeat customer. To do so, Repeat uses a combination of logic, where it analyzes all the company’s a la carte purchase behavior to make sense of the general replenishment intervals on a per-SKU basis. It then leverages that logic to nudge customers when it’s time to reorder by sending an email or text with a link to what Repeat calls its “replenishment cart.” The customer can choose to snooze the reminder or they can click through to checkout.

This replenishment cart is a special shopping cart that’s personalized to the individual customer and pre-filled with the product or products they’re due to repurchase, as well as other suggestions. But unlike a typical checkout experience, the customer can adjust the merchandise the cart contains — for example, by opting for a different flavor or scent for their product, or opting for a larger size, among other things.

As the customer continues to interact with Repeat’s reminders and cart, the service gets smarter about understanding that customer’s unique reordering intervals, so its nudges also get smarter. In time, Repeat envisions offering a universal cart where customers can reorder from across their favorite CPG brands in one place.

Image Credits: Repeat

“There’s a lot of logic that goes into making that cart experience work as well as it does,” notes Stiebel. “For example, the cart converts at around 25 percent on average. Some brands are seeing 40, or 45 percent conversion on that cart, and we see that people check out oftentimes in less than 15 seconds on that cart. And I think that’s really the underlying magic — that, in combination with the logic, is the underlying magic of Repeat,” she adds.

There is, of course, the challenge of getting its nudges exactly right. If Repeat hits up customers at the wrong time, it could be perceived as an annoyance and customers might opt out of the notifications.

Repeat currently generates revenue through a monthly SaaS (software-as-a-subscription) fee, and as a percentage of the revenue its cart drives. For brands that drive less than 2,000 a la carte, non-subscription orders per month, Repeat would charge $99 per month plus 5% of the revenue it drives. And for brands that are driving more than 10,000 a la carte, non-subscriptions orders per month, Repeat charges $499 per month, plus 5% of the revenue it drives. The company isn’t disclosing its own revenue figures, however.

L.A.-based Repeat says it plans to use the new funds to hire across all roles, including in engineering, product, sales, marketing and growth. The startup began the year with just 3 employees, but hopes to be at around 15 to 20 by the end of the year by expanding its team that’s distributed across the U.S.

The company will also use the capital to work on scaling the business. For example, it recently launched QR codes that allow anyone to be redirected to a Repeat cart — even first-time shoppers who discover a brand through a friend, and scan the product to order one of their own.

Over time, Repeat believes it can change the way CPG subscriptions work.

“The problem with subscription today is that it’s fixed, and time-based and rigid, and not rooted in any kind of real consumption cadence,” says Stiebel.

“Because Repeat focuses on that all a carte reordering experience, and because we’re looking at repeat behavior across individual product SKUs, we actually know a tremendous amount about consumption behavior across every category of CPG. I think what you’ll see from us in the future is being able to leverage that data to offer more flexible dynamic subscription experiences,” she says.

07 Jul 2021

Tune in, SPAC on, drop LSD

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

For this week’s deep dive, Alex and Natasha and Danny decided that it was time to talk about drugs. No, not like drugs for fun, but instead drugs that you might have considered fun, but are now being redirected to help bolster your health.

Yep, that’s our theme today. As it turns out, there are a number of startups and even nascently public companies that are pursing using drugs that we might consider recreational for serious health purposes. Which is neat, as our habit of decrying any drug that makes you feel better as immoral has likely held us back from learning quite a lot about them.

  • Venture capital investment in psychedelic start-ups, per CB Insights, rose from sub-$100 million results in 2018 and 2019 to $346 million last year.
  • Vice clauses, however, can pause a legitimate issue for investors who might want to cut a check in the space.
  • From the startup angle, NUE Life Health recently raised $3.3 million, and Osmind is up to some neat stuff regarding mental health.
  • From the public markets, Atai Life Sciences, Compass Pathways, and MindMed are the companies worth watching.

Frankly this was a fun one to record, even if the topic at hand is actually rather serious. Chat Friday morning!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 a.m. PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!

07 Jul 2021

Cloverly snags $2.1M seed to continue developing API to measure and offset carbon usage

Cloverly, an Atlanta-based early stage startup, has developed an API that helps companies measure and then offset their carbon emissions. Today the company announced a $2.1 million seed round.

TechSquare Ventures led the round with participation from SoftBank Opportunity Fund and Panoramic Ventures along with Circadian Ventures, Knoll Ventures, and SaaS Ventures
.

While it was at it, the company announced that founder Anthony Oni has stepped back from running the company day-to-day, but will remain on the board as advisor. The company has hired former eBay exec Jason Rubottom as CEO in his place.

“We’re a Sustainability as a Service company that helps other companies measure and reduce their carbon footprint. Our API measures the carbon emissions from various activities or processes within a business and allows that business or its customers to offset those emissions. And then it provides comprehensive reporting on that,” Rubottom explained.

Rudy Krehbiel, who runs operations for the company says that the API is designed to be flexible to meet the needs of each company accessing the services, but once developers create an application, it works automatically to measure emissions and purchase the offsets. “The solution itself is automated. Most of the work happens up front, and once we get integrated it becomes a fully productized and operationalized ongoing measurement and offsetting solution,” he said.

As customers build solutions using the tool, they can then offset their carbon usage by buying carbon offsets from the public markets, and this can be automated based on the usage of a given company. Cloverly monitors the offset market to ensure that the sources are credible and are adding new ones as they develop.

The company is working with over 6000 brands, which have offset over 55 million pounds of carbon to this point. The API was originally conceived by Oni when he was working at the Southern Company and spun out as a startup on Earth Day in 2019.

Oni, who is Black, is moving away from day-to-day operations as he hands the baton to Rubottom, but he recognizes the significance of this funding from a diversity perspective.

“As a Black tech founder of a climate tech company, it’s incredibly validating to have TechSquare Ventures and Softbank’s Opportunity Fund as investors. It will take diverse people and teams to find solutions to create a more sustainable future,” he said.

07 Jul 2021

After selling Bread last year for over $500M, this founder just raised millions for his new fintech startup

When Daniel Simon sold Bread, a consumer purchase finance and payments startup he’d co-founded, to Alliance Data Systems for over $500 million late last year, he quickly set his sights on building another startup.

During the pandemic, Simon says he observed how much strain was placed on what he described as ‘real-world’ businesses and their employees — such as truck drivers, plumbers, HVAC installers and last-mile delivery people — “and how little the last decade of innovation in fintech has done to meet the needs of the vast and vital fleets segment.”

So he teamed up with former Bread COO (and former Lyft exec) Andrew Woolf to found Coast, a company that is aiming to meet those needs with the mission of becoming “the financial platform for the future of transportation.”

And today, the New York-based company is announcing it has raised $6 million in an “oversubscribed” seed round of funding led by Better Tomorrow Ventures. Avid Ventures, Bessemer Venture Partners, BoxGroup, Colle, Foundation Capital, Greycroft, and Max Levchin’s SciFi VC — as well as more than a dozen angels including founders of Plaid, Flexport, Marqeta, Bread, Albert, Addi, Lithic, and other fintech and logistics startups — also put money in the round.

Coast co-founders Daniel Simon and Andrew Woolf

Businesses that operate fleets need to enable their drivers to pay for vehicle-related expenses when they’re on the road, such as maintenance, roadside assistance and gas.

But once a fleet reaches a size of more than just a few vehicles, traditional small business credit cards are no longer sufficient because they lack the line-item level security, visibility, and controls necessary with a mobile workforce, according to Simon. 

“Fleet owners need transactions to be authorized, for instance, for buying gas for the company van, not the personal car, and for filling up at the pump, not making other purchases in the gas station convenience store,” he said.

Historically, fleets have turned to specialized fleet and fuel credit cards which provide controls like restricting purchases to only fuel products of a particular grade or tracking expenses on a per-vehicle basis. But Simon argues that the companies that sell such cards were founded decades ago with very little innovation since.

Coast’s goal is to use technology to provide fleet business owners and their employees payments products that are intuitive and easy to use.

“They need their employee and vehicle payments integrated into the rest of their operations, and they need fair and transparent financial products that are simple to understand,” Simon said. Bottom line, he wants to bring the “same sort of ease of use and transparency that Bread brought to e-commerce consumers and retailers to a category of business and employee that is often overlooked in tech.”

Coast’s first product, which is set to launch later this year, is a commercial fuel charge card. Drivers will be able use a physical Coast card they keep in their wallet or a shared Coast card in the vehicle, and when they swipe it at a pump at any merchant that takes Visa, Simon says Coast will conduct a “rapid review of a complex set of rules to enforce the fleet business’s policies and flag potentially fraudulent transactions.”

“No need for entering data prompted by the pump – the driver fills up and is on their way,” he said.

Fleet owners and managers can use Coast’s web portal to assign drivers and vehicles, set policies and rules about who can purchase what, how much, how often, and when. They can also get reporting and alerts on their expense policies and potential abuse. At the end of the month, they will be able pay their Coast balance in full.

Down the line, the company plans to add integrations into major accounting platforms as well as into telematics platforms that provide real-time data on vehicle status and location “so it can provide actionable spending insights back to fleet managers.” Over time, Coast also plans to expand into more categories of fleet businesses’ spending as it seeks to become more of a holistic platform for the industry.

Sheel Mohnot of Better Tomorrow Ventures, who took a seat on Coast’s board as part of the financing, says his firm was impressed by both the size of the opportunity and the team at Coast that’s tackling it. 

“The space is one of those massive unsexy categories with huge incumbents that most people have never heard of but customers — who are forced to use them — universally despise. It’s the perfect recipe for a startup to come in and disrupt it with a much better experience,” Mohnot told TechCrunch via e-mail. “Similar to what Ramp or Brex do for startups, Coast does for fleet operators – it helps them control their spending so they can focus on growing their business.”

07 Jul 2021

Dataminr’s first ever acquisition is UK-based geovisualization platform WatchKeeper

When it comes to detecting events transpiring anywhere in the world, few companies hold a candle to Dataminr. Founded in 2009, the company has raised more than $1 billion over the past 12 years (including $475 million at a $4.1 billion valuation just this past March) to build out a data-gobbling platform that transforms raw inputs into actionable event intelligence.

Those events are sent to a variety of customers — corporate security professionals, supply chain risk analysts, even journalists — for whatever purpose they need in their work. CEO and co-founder Ted Bailey said that the company has made event detection its core skillset. It’s “all been geared to the detection of events,” he said. “What we have never built into our corporate product is an advanced geospatial platform,” that would allow users to visualize risks rather than just getting a push notification or an email.

That’s about to change, as the company announced today its first acquisition in its corporate history with the purchase of UK-based WatchKeeper. WatchKeeper’s platform was designed to help corporate physical security executives visualize how events could affect a company’s assets. For instance, a bank with branches in Florida needs to understand what happens if a hurricane is heading toward the peninsula.

Terms of the deal were not disclosed, although Bailey said that “it’s a mature product — this is by no means an acquihire.” WatchKeeper, which was founded in 2018, previously raised £1 million from venture capitalists, according to Crunchbase.

“Different organizations have extremely different needs, and these events have extremely different impacts on these corporations given the geographical footprint of their physical assets and their moving assets,” Bailey said. “This is something that we have zeroed in on [at Dataminr] more and more over the past couple of years.”

The startup had been on Dataminr’s radar even prior to the company inception. Hugh Farquhar, the founder and CEO of WatchKeeper, formerly worked at Citibank where Bailey said he built out a platform for contextualizing Dataminr alerts for the bank’s executives. After he left, Farquhar decided to build a similar platform for all companies.

As word got out about WatchKeeper’s product, Bailey saw an opportunity to bring Dataminr closer to the nascent company. “We were aggressively exploring a partnership with them for the last 6-12 months where we were scoping and imagining the possibilities of working together,” he said. “We had already selected them as the key innovator in data visualization, the one that was most tuned to corporate needs,” and eventually the partnership discussion became an acquisition conversation.

WatchKeeper’s entire team will move to Dataminr, and they will remain in the UK. Dataminr opened its European headquarters in the UK a few years ago, and the company has ambitious plans to spend heavily from its last round of capital on international expansion in Europe and in APAC.

WatchKeeper will be integrated into Dataminr Pulse later this year, the company’s product focused on business risk clients. Bailey said that from a data perspective, the acquisition pushes Dataminr into a new direction. “We have never taken that step of using public data outside of just detecting events,” he said. “We have a bunch of ideas on how to go beyond detecting events early,” which has been Dataminr’s main objective, to “real-time contextual data.” In addition, WatchKeeper integrates corporate internal data in a way that Dataminr hasn’t previously explored.

This is Dataminr’s first M&A transaction, and while future transactions could be in the offing, there isn’t a specific strategy to hit a growth target through acquisitions in the future. The company continues to be headed toward an intended IPO, given that it dubbed its March round a “pre-IPO round.”

07 Jul 2021

ZeroFox acquires dark web threat intelligence company Vigilante

ZeroFox, a cybersecurity startup that helps companies detect risks found on social media and digital channels, has announced it has acquired dark web threat intelligence company Vigilante. 

Vigilante — not to be confused with the controversial crime reporting app — scours the dark web to source intelligence that helps to protect organizations from cyberattacks. The deal, terms of which were not announced, will see ZeroFox take on Vigilante’s global team of operatives and analysts to create “the industry’s most robust” dark web intelligence solution. 

Building on Vigilante’s decades-old dark web monitoring tools, the joint solution will combine datasets from the two companies to deliver risk intelligence on compromised credentials and botnets, network intelligence on infected and vulnerable hosts, and intelligence on threat actors and indicators of compromise (IOCs). The product, which will have ZeroFox’s AI processing capabilities baked-in, will also provide botnet exposure monitoring, threat monitoring, and client-specific investigations and incident response on threat actor engagement and asset recovery. 

“The combination of our otherwise inaccessible datasets, our team of researchers and operatives, along with ZeroFox’s scale and artificial intelligence, provides a compelling dark web intelligence service,” said Mike Kirschner, co-founder of Vigilante. 

The acquisition, which the firms claim will help better protect organizations at an even greater scale, comes amid a huge rise in criminal activity on the dark web, according to recent research. As a result of pandemic-fueled cybercrime, Risk Based Security said in its recent annual data breach report that the number of comprised records surpassed 37 billion in 2020, a 141% increase over 2019, and ransomware was up by 100%. 

“The dark web and criminal underground are critical requirements of modern threat intelligence programs,” said James C. Foster, CEO of ZeroFox. “Our customers need a clear view of the underground economy, how bots may be attacking them or if their credentials, credit cards, personally identifiable information (PII) and other information could be traded there, as well as understanding emerging tactics, exploits and vulnerabilities.

Foster said the acquisition of Vigilante increases “the scale and comprehensiveness” of its dark web intelligence gathering capabilities, which helps to protect customers’ information.

In February last year, ZeroFox announced it had raised $74 million in a Series D funding round led by Intel Capital, which it planned to use to accelerate its global expansion and product strategy. Prior to this, in 2017, the startup raised $40 million Series C led by Redline Capital Management and Silver Lake Waterman.

07 Jul 2021

Opioid addiction treatment apps found sharing sensitive data with third parties

Several widely used opioid treatment recovery apps are accessing and sharing sensitive user data with third parties, a new investigation has found.

As a result of the COVID-19 pandemic and efforts to reduce transmission in the U.S, telehealth services and apps offering opioid addiction treatment have surged in popularity. This rise of app-based services comes as addiction treatment facilities face budget cuts and closures, which has seen both investor and government interest turn to telehealth as a tool to combat the growing addiction crisis.

While people accessing these services may have a reasonable expectation of privacy of their healthcare data, a new report from ExpressVPN’s Digital Security Lab, compiled in conjunction with the Opioid Policy Institute and the Defensive Lab Agency, found that some of these apps collect and share sensitive information with third parties, raising questions about their privacy and security practices.

The report studied 10 opioid treatment apps available on Android: Bicycle Health, Boulder Care, Confidant Health. DynamiCare Health, Kaden Health, Loosid, Pear Reset-O, PursueCare, Sober Grid, and Workit Health. These apps have been installed at least 180,000 times, and have received more than $300 million in funding from investment groups and the federal government.

Despite the vast reach and sensitive nature of these services, the research found that the majority of the apps accessed unique identifiers about the user’s device and, in some cases, shared that data with third parties.

Of the 10 apps studied, seven access the Android Advertising ID (AAID), a user-generated identifier that can be linked to other information to provide insights into identifiable individuals. Five of the apps also access the devices’ phone number; three access the device’s unique IMEI and IMSI numbers, which can also be used to uniquely identify a person’s device; and two access a users’ list of installed apps, which the researchers say can be used to build a “fingerprint” of a user to track their activities.

Many of the apps examined are also obtaining location information in some form, which when correlated with these unique identifiers, strengthens the capability for surveilling an individual person, as well as their daily habits, behaviors, and who they interact with. One of the methods the apps are doing this is through Bluetooth; seven of the apps request permission to make Bluetooth connections, which the researchers say is particularly worrying due to the fact this can be used to track users in real-world locations.

“Bluetooth can do what I call proximity tracking, so if you’re in the grocery store, it knows how long you’re in a certain aisle, or how close you are to someone else,” Sean O’Brien, principal researcher at ExpressVPN’s Digital Security Lab who led the investigation, told TechCrunch. “Bluetooth is an area that I’m pretty concerned about.”

Another major area of concern is the use of tracker SDKs in these apps, which O’Brien previously warned about in a recent investigation that revealed that hundreds of Android apps were sending granular user location data to X-Mode, a data broker known to sell location data to U.S. military contractors, and now banned from both Apple and Google’s app stores. SDKs, or software development kits, are bundles of code that are included with apps to make them work properly, such as collecting location data. Often, SDKs are provided for free in exchange for sending back the data that the apps collect.

“Confidentiality continues to be one of the major concerns that people cite for not entering treatment… existing privacy laws are totally not up to speed.” Jacqueline Seitz, Legal Action Center

While the researchers keen to point out that it does not categorize all usage of trackers as malicious, particularly as many developers may not even be aware of their existence within their apps, they discovered a high prevalence of tracker SDKs in seven out of the 10 apps that revealed potential data-sharing activity. Some SDKs are designed specifically to collect and aggregate user data; this is true even where the SDK’s core functionality is concerned.

But the researchers explain that an app, which provides navigation to a recovery center, for example, may also be tracking a user’s movements throughout the day and sending that data back to the app’s developers and third parties.

In the case of Kaden Health, Stripe — which is used for payment services within the app — can read the list of installed apps on a user’s phone, their location, phone number, and carrier name, as well as their AAID, IP address, IMEI, IMSI, and SIM serial number.

“An entity as large as Stripe having an app share that information directly is pretty alarming. It’s worrisome to me because I know that information could be very useful for law enforcement,” O’Brien tells TechCrunch. “I also worry that people having information about who has been in treatment will eventually make its way into decisions about health insurance and people getting jobs.”

The data-sharing practices of these apps are likely a consequence of these services being developed in an environment of unclear U.S. federal guidance regarding the handling and disclosure of patient information, the researchers say, though O’Brien tells TechCrunch that the actions could be in breach of 42 CFR Part 2, a law that outlines strong controls over disclosure of patient information related to treatment for addiction.

Jacqueline Seitz, a senior staff attorney for health privacy at Legal Action Center, however, said this 40-year-old law hasn’t yet been updated to recognize apps.

“Confidentiality continues to be one of the major concerns that people cite for not entering treatment,” Seitz told TechCrunch. “While 42 CFR Part 2 recognizes the very sensitive nature of substance use disorder treatment, it doesn’t mention apps at all. Existing privacy laws are totally not up to speed.

“It would be great to see some leadership from the tech community to establish some basic standards and recognize that they’re collecting super-sensitive information so that patients aren’t left in the middle of a health crisis trying to navigate privacy policies,” said Seitz.

Another likely reason for these practices is a lack of security and data privacy staff, according to Jonathan Stoltman, director at Opioid Policy Institute, which contributed to the research. “If you look at a hospital’s website, you’ll see a chief information officer, a chief privacy officer, or a chief security officer that’s in charge of physical security and data security,” he tells TechCrunch. “None of these startups have that.”

“There’s no way you’re thinking about privacy if you’re collecting the AAID, and almost all of these apps are doing that from the get-go,” Stoltman added.

Google is aware of ExpressVPN’s findings but has yet to comment. However, the report has been released as the tech giant prepares to start limiting developer access to the Android Advertising ID, mirroring Apple’s recent efforts to enable users to opt out of ad tracking.

While ExpressVPN is keen to make patients aware that these apps may violate expectations of privacy, it also stresses the central role that addiction treatment and recovery apps may play in the lives of those with opioid addiction. It recommends that if you or a family member used one of these services and find the disclosure of this data to be problematic, contact the Office of Civil Rights through Health and Human Services to file a formal complaint.

“The bottom line is this is a general problem with the app economy, and we’re watching telehealth become part of that, so we need to be very careful and cautious,” said O’Brien. “There needs to be disclosure, users need to be aware, and they need to demand better.”

Recovery from addiction is possible. For help, please call the free and confidential treatment referral hotline (1-800-662-HELP) or visit findtreatment.gov.

Read more:

 

07 Jul 2021

India’s IT and Broadcasting ministers resign

India’s IT minister Ravi Shankar Prasad and information and broadcasting minister Prakash Javadekar resigned from their roles on Wednesday, adding to the list of high-profile politicians who have vacated their positions ahead of India Prime Minister Narendra Modi reshuffling his cabinet.

The resignations of Prasad — who also served as the minister of Law and Justice — and Javadekar — who also oversaw Environment, Forest, Climate Change, Heavy Industries and Public Enterprises — come at a time when they were at the centre of a tough discourse with American technology firms over South Asian’s new IT rules, which went into effect late May.

There’s no evidence that Prasad and Javadekar’s enforcement of the new IT rules and public exchanges with American technology giants are linked to their resignations.

“All social media platforms are welcome to do business in India. They can criticize Ravi Shankar Prasad, my Prime Minister or anyone. The issue is of misuse of social media. Some of them say we are bound by American laws. You operate in India, make good money, but you will take the position that you’ll be governed by American laws. This is plainly not acceptable,” Prasad had said at a virtual conference last week.

Others ministers to resign today include Health minister Harsh Vardhan and his deputy Ashwani Chaube, both of whom were criticised for their handling of the coronavirus pandemic measures.

“The President, as advised by the Prime Minister, has accepted the resignation … with immediate effect,” said Ajay Kumar Singh, Press Secretary to the President, in a statement.