Author: azeeadmin

23 Aug 2018

UK Labour Leader Jeremy Corbyn proposes a publicly-funded alternative to Facebook

How best to counteract the Facebook effect in political and other discourse? Consider a plan to create an alternative funded by public money. That was the suggestion today put forward by Jeremy Corbyn, the leader of the Labour Party in the UK, who proposed the creation of a “British Digital Corporation” (BDC) that would be a sister organization to the BBC (the publicly-funded British Broadcasting Corporation), and would work as both a think-tank to lead on digital policy and technology, as well as become the home of non-profit services to rival those that are for-profit, including a Facebook alternative.

“A BDC could use all of our best minds, the latest technology and our existing public assets not only deliver information and entertainment to rival Netflix and Amazon, but also to harness data for the public good,” Corbyn said today, in a speech delivered during the Edinburgh TV festival. “A BDC could develop new technology for online decision making and audience-led commissioning of programmes and even a public social media platform with real privacy and public control over the data that is making Facebook and others so rich.” The full text of his lecture can be found here.

The BBC today is largely financed by something called a “TV license”, where people living in the UK pay annual fees for the “right” to receive terrestrial channels. Corbyn suggested that the BDC would be run in a similar way: the government should introduce a digital license fee, he said, to supplement the TV license fee. This would be paid either by way of ISPs (who might pass the cost on to their customers), or by “tech giants”, or perhaps a combination of the two. Poorer households would pay a reduced fee.

Corbyn’s comments and ideas come at a time when the we are still getting to the bottom of just what role widely-used social media platforms like Facebook played — if not actively, then passively, as a highly influential social media platforms manipulated by others — to influence the outcome of key democratic processes, such as the Brexit referendum in the UK and the most recent US Presidential election.

In that vein, he also suggested a wave of proposals to increase transparency in media communications.

They included a Freedom of Information reform that removed ministerial vetoes and expanded it to include cases where private companies are delivering public services; allowing local, investigative and public interest journalism to be taxed as charities; asking “tech giants” to contribute to an independent fund for public interest journalism; and expanding an existing BBC scheme to foster more local journalism (which has really died a death in the UK, as it has in many other places). Digital delivery would, of course, have a big role to play in this.

The issue of there being too few for-profit tech companies that control tech services has a precedent in the media industry, something that Corbyn also directly attacked. “We must also break the stranglehold of elite power and billionaire domination over large parts of our media,” he said. “Just three companies control 71% of national newspaper circulation and five companies control 81% of local newspaper circulation.”

Corbyn, coming in the wake of moderate leaders like Tony Blair and others in his mold, is one of the more left-wing Labour Party leaders in recent times who has advocated for a much wider set of social services and a move away from for-profit organizations and their encroaching role in how these are delivered. In that context, any comments about publicly funded social media services shouldn’t come as a surprise.

And even if he is not the Prime Minister, Corbyn’s comments should not be taken lightly. In his role as leader of the opposition, his speech sets an agenda and debating points around how publicly-funded digital services might take shape in years to come. That is something that the Tories (whose leader, Theresa May, is the Prime Minister) have also been contemplating. Up to now the focus has been in areas like developing AI, 5G and cybersecurity, although with a heavy emphasis on helping fund and boost private-sector businesses.

There are a number of issues that Corbyn’s comments raise, not just about the free market, but about what a publicly-funded model might imply for startups — which are (in theory!) for profit and part of a large push to boost entrepreneurship and small businesses. Similarly, in cities like London, the same oversized tech companies that Corbyn might be criticising have had a big part to play in boosting the local economy, and threats of much higher taxes could have a chilling effect on their activities here. Ultimately, all that will need to be considered when and if we see these ideas mature from their early introduction in a summertime speech.

23 Aug 2018

Watch DJI unveil the Mavic 2 drone today

After delays, DJI is finally ready to take the wraps off of the next generation Mavic drone. We’ve already seen bits and pieces of what the company’s offering with the new folding drone, which appears to be focused on bigger and better imaging.

It’s been a full two years since the company transformed its consumer drone line, so hopefully it will have even more in store with this new model. And if the last few events are any indication, there may be some surprises along the way, as well.

We’ll be at the event today in New York City, but you can follow along from home as well, by bookmarking DJI’s site. The big event kicks off at 10:00AM ET, 7:00AM PT.

 

 

23 Aug 2018

Watch DJI unveil the Mavic 2 drone today

After delays, DJI is finally ready to take the wraps off of the next generation Mavic drone. We’ve already seen bits and pieces of what the company’s offering with the new folding drone, which appears to be focused on bigger and better imaging.

It’s been a full two years since the company transformed its consumer drone line, so hopefully it will have even more in store with this new model. And if the last few events are any indication, there may be some surprises along the way, as well.

We’ll be at the event today in New York City, but you can follow along from home as well, by bookmarking DJI’s site. The big event kicks off at 10:00AM ET, 7:00AM PT.

 

 

23 Aug 2018

Alibaba confirms it raised $3B for its newly consolidated local services business

Alibaba has confirmed that it has raised $3 billion for its new-look local services business after it united its Koubei local services business with Ele.me, the on-demand delivery business it recently acquired.

The company said it put the capital into the business alongside SoftBank, according to a note within its financial results that were released today. TechCrunch understands that the actual amount raised may increase as existing Koubei investors have an option to be a part of the new round, while new backers may also be added. Bloomberg previously reported the consolidation and investment.

From the filing:

We have established a company to hold Ele.me and Koubei as our combined flagship local services vehicle, which we plan to separately capitalize with investments from Alibaba, Ant Financial and third-party investors. As of the time of this announcement, we have received over US$3 billion in new investment commitments, including from Alibaba and SoftBank. As a result of this reorganization, subject to closing conditions, we will consolidate Koubei, which would result in a material one-off revaluation gain when the transaction closes.

Koubei, the company’s local services platform, got a $1.1 billion injection in early 2017 and is predominantly focused on enabling local commerce. Other investors besides Alibaba include Silver Lake, CDH Investments, Yunfeng Capital and Primavera Capital.

Ele.me, meanwhile, first landed an investment from Alibaba two years ago. The e-commerce giant bought it out in April in a deal that valued Ele.me at $9.5 billion. Ele.me is a key piece of Alibaba’s recent partnership with Starbucks — the on-demand service will be used to deliver coffee to Starbucks customers across China as the U.S. coffee giant seeks out new growth opportunities and competes with rival services.

The deal may be a footnote in Alibaba’s Q1 earnings report but it is representative of a new battle that’s taking place to own China’s ‘local services’ market. That is on-demand services such as groceries deliveries, takeouts, movie tickets and other commercial activities within local areas.

Meituan Dianping, a firm backed by Alibaba rival Tencent, has led the charge into local services. The company was formed from a merger deal involving China’s two largest group deals sites in 2015 and it has since raised significant capital, including a $4 billion round two years ago.

Meituan’s next act is an IPO in Hong Kong, and the ambitious firm has expanded into ride-hailing to take on Didi Chuxing, bike-sharing via a $2.7 billion acquisition of Mobike, and even Southeast Asia, where it invested in ride-hailing startup Go-Jek.

Local services — and in particular food delivery — remains its core focus. Alibaba is betting that pairing Koubei with Ele.me, throwing in a couple of billion and adding a dash of SoftBank can give it a strong rival that can compete for China’s ‘online to offline’ market. Another war is brewing.

23 Aug 2018

Alibaba confirms it raised $3B for its newly consolidated local services business

Alibaba has confirmed that it has raised $3 billion for its new-look local services business after it united its Koubei local services business with Ele.me, the on-demand delivery business it recently acquired.

The company said it put the capital into the business alongside SoftBank, according to a note within its financial results that were released today. TechCrunch understands that the actual amount raised may increase as existing Koubei investors have an option to be a part of the new round, while new backers may also be added. Bloomberg previously reported the consolidation and investment.

From the filing:

We have established a company to hold Ele.me and Koubei as our combined flagship local services vehicle, which we plan to separately capitalize with investments from Alibaba, Ant Financial and third-party investors. As of the time of this announcement, we have received over US$3 billion in new investment commitments, including from Alibaba and SoftBank. As a result of this reorganization, subject to closing conditions, we will consolidate Koubei, which would result in a material one-off revaluation gain when the transaction closes.

Koubei, the company’s local services platform, got a $1.1 billion injection in early 2017 and is predominantly focused on enabling local commerce. Other investors besides Alibaba include Silver Lake, CDH Investments, Yunfeng Capital and Primavera Capital.

Ele.me, meanwhile, first landed an investment from Alibaba two years ago. The e-commerce giant bought it out in April in a deal that valued Ele.me at $9.5 billion. Ele.me is a key piece of Alibaba’s recent partnership with Starbucks — the on-demand service will be used to deliver coffee to Starbucks customers across China as the U.S. coffee giant seeks out new growth opportunities and competes with rival services.

The deal may be a footnote in Alibaba’s Q1 earnings report but it is representative of a new battle that’s taking place to own China’s ‘local services’ market. That is on-demand services such as groceries deliveries, takeouts, movie tickets and other commercial activities within local areas.

Meituan Dianping, a firm backed by Alibaba rival Tencent, has led the charge into local services. The company was formed from a merger deal involving China’s two largest group deals sites in 2015 and it has since raised significant capital, including a $4 billion round two years ago.

Meituan’s next act is an IPO in Hong Kong, and the ambitious firm has expanded into ride-hailing to take on Didi Chuxing, bike-sharing via a $2.7 billion acquisition of Mobike, and even Southeast Asia, where it invested in ride-hailing startup Go-Jek.

Local services — and in particular food delivery — remains its core focus. Alibaba is betting that pairing Koubei with Ele.me, throwing in a couple of billion and adding a dash of SoftBank can give it a strong rival that can compete for China’s ‘online to offline’ market. Another war is brewing.

23 Aug 2018

Alibaba shrugs off China concerns as revenue jumps 61%

Tencent had an unexpected miss this week, but Chinese rival Alibaba experienced no such issue today as it beat analyst expectation after clocking 61 percent annual revenue growth.

The Chinese e-commerce giant gross total sales of 80.9 billion RMB ($12.2 billion) for its Q1 2019, beating Bloomberg’s estimate of 80.9 billion RMB. The firm record a net profit of 8.7 billion RMB ($1.3 billion) for the period.

Diluted earnings per share of 3.30 RMB was down 42 percent annually but still ahead of Bloomberg’s project of 2.57 RMB. The market has taken that as good news and shares are trading up three percent in the pre-market.

Alibaba’s core e-commerce business is its most lucrative and revenue in Q1 rose 61 percent annually to hit 69.2 billion RMB ($10.5 billion), while growth for it cloud computing business continues to impressive albeit at a slowing rate as the unit progress. Alibaba Cloud recorded total sales of 4.7 billion RMB ($710 million) but a year-on-year growth rate of 93 percent is down slightly on 103 percent in the previous quarter.

Also in the last quarter, Alibaba took up an option to acquire one-third of Ant Financial, its financial services business that’s tipped to go public as soon as next year, and that deal weighed on this quarter since it means an end to “royalty and technology service fees” that Alibaba had earned from a previous agreement with Ant. Ant is valued at over $100 billion and some analyst estimates that the quarterly fees paid to Alibaba were in the region of one billion RMB, or roughly $160 million.

Looking at customer numbers, Alibaba said its active customer base in China grew to 576 million — an increase of 100 million per year and 24 million on the last quarter — while monthly active users reached 634 million, up 20 percent year-on-year and three percent sequentially.

The company doesn’t give international user numbers, but it said e-commerce revenue from outside of China grew 64 percent to reach 4.3 billion RMB, or $652 million.

Beyond e-commerce, Alibaba confirmed media reports that it has combined its Koubei local services platform with its newly-acquired Ele.me business. The entity has raised over $3 billion in new financing from Alibaba, Softbank and others, Alibaba confirmed, as it continues to compete with Meituan — the on-demand platform that is preparing to go public in Hong Kong.

23 Aug 2018

This New York venture firm just closed on $520 million from 250(!) people, including former Schwab and Facebook execs

Lead Edge Capital, a New York-based venture firm, has been around since 2009, and it has been quietly growing like kudzu since. After closing its very first fund with $52 million back in 2011, it has been roughly doubling the size of its funds ever since, closing on $138 million in 2013 and $290 million in 2016 and today, announcing a fourth, $520 million fund. Altogether, including some special purpose vehicles it has assembled, the firm is now managing roughly $1.5 billion in assets.

How did the team, led by founder Mitchell Green, pull it off? Green’s background may have helped. The Williams College grad says he went to work for UBS as a banking analyst in its M&A group out of college, then it was on to Bessemer Venture Partners as an analyst, then Wharton, where he not only earned his MBA but began working at a Tiger-cub-seeded hedge fund by Julian Robertson. All along the way, Green was apparently making friends in high places. And given the success of Lead Edge to date, they are happy enough to have him manage some of their money through Lead Edge.

We talked with Green about some of those connections, and Lead Edge’s new fund, via an email exchange late yesterday. Our chat has been edited for length.

TC: Your investor base consists of more than 250 executives and investors. In fact, you say that 70 percent of your new fund comes from individual LPs, while only 30 percent of the capital came from institutional investors. Who are these people?

MG: They come from Charles Schwab, Capital One, NetSuite, eBay, Neiman Marcus, Xerox, Unilever, Cisco, Saks, Microsoft and many more. Among them is Anne Mulcahy, the former chairman and CEO of Xerox; Alison Rosenthal, the former head of mobile at Facebook; Nigal Morris, the cofounder of Capital One; GitHub CEO Nat Friedman; and David Pottruck, the former CEO of Charles Schwab.

We pride ourselves on leveraging our LPs to make connections on behalf of portfolio companies. Instead of simply deploying capital, our LPs and operating partners are dedicated to mentoring and leading portfolio businesses through their extended network and deep knowledge across different industries.

TC: Any examples?

Our first discussion with [cybersecurity firm] Duo Security resulted in an introduction between Duo’s CEO, Dug Song, and the former CIO of General Motors. While Duo wasn’t raising money, they assured us that if they did, they would let us know, as they saw how helpful our network could be. Eventually, we invested over $90 million into Duo [which is now being acquired by Cisco for $2.35 billion].

TC: What kinds of company does Lead Edge target, and has that changed over time?

MG: We’ve always been focused on companies in the software, internet, business services and consumer sectors. They types of companies we’ve invested in haven’t changed over time. Some current and former portfolio companies include Alibaba Group, Arrive Logistics, Bazaarvoice, Delivery Hero, Duo Security, Mindbody, Marketo,Refinery29, Spotify, Toast, Uber and Xamarin.

TC: What’s the strategy exactly?

MG: Most of our capital is geared towards companies in the $10 million to $100 million annual revenue range, where our LP base can help our portfolio companies in a multitude of ways — from customer relationships to advisory to recruiting. The balance of our capital is invested into what we call “platform” companies like Alibaba, Uber and Spotify, as well as public market investments, where we’re long only.

TC: Which company has raised the biggest check from Lead Edge?

MG: We’re able to scale our investments though dedicated co-investment vehicles we’ve raised. We invested more than $300 million into Alibaba in the years leading up to its IPO; more than $150 million into Spotify in the years leading up to its IPO; and most recently, invested more than $90 million into Duo Security prior to the announced of its acquisition by Cisco.

TC: Which has produced the biggest return? 

MG: We’ve had several excellent exits, but our largest returns by dollars returned to LPs were via Alibaba’s IPO, Spotify’s  IPO, and now the impending sale of  Duo Security. We’ve also had a number of other strong exits, including Xamarin, which was acquired by Microsoft; Bazaarvoice, which went public; Clearscore, which is being acquired by Experian); Marketo, which went public and was then acquired; Driling Info, which was acquired by Genstar; and Delivery Hero, which went public.

TC: That’s quite a run. How do decisions get made? Majority rules?

MG: We have a streamlined decision-making process that due to the small size of the investment committee consists of the firm’s three partners, including myself; Brian Neider, who I’d met at Bessemer; and Nimay Mehta. All three of us have been working together and served on the investment committee since Fund I. Brian and I shared an office together at Bessemer Venture Partners. Nimay was the first hire at here and has been with the firm since 2011.

TC: How much of your deal flow is inbound versus outbound?

MG: We all come from outbound backgrounds, so most of our sourcing is done outbound. Nimay was formerly with Insight Venture Partners, where he was an associate and worked on much of their outbound efforts. Brian and l worked together for nearly three years at Bessemer Venture Partners, and were the first two analysts that Bessemer ever hired to do outbound sourcing in 2005.

TC: What’s the strangest deal you’ve ever invested in?

MG: We knew the founder of this company that had an exciting but off-the-wall idea to create a scooter sharing application. It seemed crazy at the time, but we did participate in the initial funding rounds at Bird.

TC: Any deals you won’t do based on experience with last funds?

MG: We have certainly learned lessons in specific sectors and have a higher bar for companies in emerging economies as currency fluctuations could materially impact returns.

TC: Your biggest challenge right now as an investor in the current market?

MG: The largest challenge is seeing companies that are overcapitalized. Years ago, fundraising would take place in stages. Now, once a company reaches $5 million in revenue off a proof of concept, investors want to give them $50 million to capitalize on the idea. We think this can cause bad behavior in companies, so we’re cognizant of trying to find businesses that can be capital efficient or are burning capital in a way that’s commensurate with strong unit economics.

TC: SoftBank. How is its strategy impacting what you do?

MG: We don’t see them in most of our deals.

23 Aug 2018

Wickr teams up with Psiphon to ensure your packets arrive safely no matter where you are

Encrypted collaboration app Wickr has added a feather to its cap with a partnership with Psiphon, provider of smart VPN tools. Wickr will use Psiphon’s tech to guarantee your packets get where they need to go regardless of whether you’re at home, at a cafe with bad wi-fi, or at a cafe with bad wi-fi in China.

The idea is that the user shouldn’t have to be auditing their own connection to be sure their apps will work properly. That can be a matter of safety, such as a poorly secured access point; connectivity, such as one where certain ports or apps are inoperable; or censorship, like requesting data from a service banned in the country you’re visiting.

Wickr already encrypts all your traffic, so there are no worries on that account, but if the connection you’re using were to block video calls or certain traffic patterns, there’s not much the company can do about that.

Psiphon, however, is in the business of circumventing deliberate or accidental blockages with a suite of tools that analyze the network and attempt to find a way to patch you through. Whether that’s anonymizing your traffic, bouncing it off non-blocked servers, doing automatic port forwarding, or some other method, the idea is the packets get through one way or another.

There’s a cost in latency and throughput, of course, but while that may matter for online gaming or video streaming, it’s far less important for something like uploading an image, chatting with colleagues, and the other functions that Wickr provides. At all events you can turn the feature on or off at will.

There will be a monetary cost too, of course, in the form of premiums added to paid plans. Enterprise customers will be the first to receive the Psiphon-powered traffic handling, today in fact, and the feature will then trickle its way down to other paid users and free users over the next few weeks.

23 Aug 2018

Russian hackers slipped up in attempt to hack senator

Hackers that targeted a Democratic senator up for reelection this year may have left behind clues in their attack that further suggest Russian involvement.

The office of Claire McCaskill, a Missouri senator, was targeted in an apparent targeted phishing attack from a fake Microsoft domain that the software giant later seized pursuant to a court order. The Daily Beast reported that a then-McCaskill staffer was the target of the attack, which was attributed to hackers linked to Russian intelligence — largely because the effort was similar to the phishing attack on Hillary Clinton’s campaign chair John Podesta, whose account was successfully breached and emails were shared with WikiLeaks.

Now, new research suggests that the phishing page used in the McCaskill attack contains language-specific code references that lends further credence that Russian hackers were involved.

Russian Election Interference

When the hackers built the phishing page used to trick the McCaskill staffer, they scraped the code from a legitimate Microsoft login page that staff would use to log into their network. That code included a browser-generated link of the original web page that was scraped, the research said. That link appended a language marker at the end which varies depending on which country the user is located in the world — such as “gb” for the UK, or “fr” for France.

Because the language tag was “ru”, which researchers say shows that the code was likely scraped from a user in Russia.

Yonathan Klijsnma, threat researcher at RiskIQ, said that in many cases hackers won’t build a phishing page from scratch but will simply copy and save the page it’s trying to imitate. In doing so, any saved language tags embedded in the code “can be a crucial clue in connecting operators with their malicious campaigns.”

Klijsnma said these tags are often overlooked by the hackers. That which resulted in a sloppy phishing page that was saved by RiskIQ’s vast internet crawling operation.

Although McCaskill, a vocal Russia critic, confirmed the “unsuccessful” attempted hack in a press release in July that she attributed to Russia, a spokesperson for McCaskill declined to comment further when reached Wednesday prior to publication.

In an additional twist, Klijsnma also found that the same Russian hackers also targeted reporter Serhiy Drachuk, whose work has long criticized of the Russian regime. Code from the page that was used in the McCaskill phishing attempt contained leftover references to the journalist’s work email address, which was previously accessed by the hackers.

We reached out to Serhiy Drachuk for comment, but did not hear back by the time of writing.

It’s the latest in a long string of cyberattacks and phishing efforts to target US political institutions before and during the 2016 presidential election and later. Just this week, Democratic National Committee officials said they thwarted an attempt to access their voter database. It comes hot on the heels of Microsoft’s announcement that it prevented a Russian-backed advanced persistent threat group known as Fancy Bear (or APT28) to steal data from political organizations.

23 Aug 2018

Upgrade, the newest lending startup of Lending Club founder Renaud Laplanche, has raised $62 million in Series C funding

Upgrade, a two-year-old, San Francisco-based consumer lending venture founded by Renaud Laplanche, has raised $62 million in Series C funding led by CreditEase Fintech Investment Fund. The company’s earlier investors also joined the round, including Apoletto, FirstMark Capital, NOAH, Ribbit, Sands Capital, Silicon Valley Bank, Union Square Ventures and Vy Capital. The money brings the total capital that Upgrade has raised to date to $142 million.

It’s easy to appreciate investors’ interest in the company, which already employs 300 people. Since its founding, it says, it has amassed more than 100,000 customers and issued more than $1 billion loans. The average loan size is roughly $10,000.

The company is gaining traction without giving away the store, too. Though the interest rate that it charges compares favorably to average credit card rates of about 18 percent for consumers with good credit, Upgrade still gets away with an APR in the low to mid-teens, charging some customers up to 30 percent interest per year — which is similar to the highest rates on credit cards. Indeed, the minimum credit score that a consumer need have to secure a loan from Upgrade, its minimum is 620, which the credit reporting bureau Experien says falls into the range of subprime borrowers who may be offered less-than-ideal loan terms because of their perceived ability to repay a loan on time.

Yet Upgrade isn’t just making money of potentially risky — and, presumably, many more solid — borrowers. The company also recently introduced a personal credit line that’s a kind of mash-up of an unsecured personal loan and credit card. Borrowers can tap up to $50,000 if, say, they know they’ll need to make a costly home improvement, or (worse) need to pay off other loans. That balance is then converted into an installment loan with a fixed interest rate and a term of up to five years if it isn’t paid off immediately. Those APRs range from 6.46 percent to a whopping 35.9 percent, which might concern someone with a severe aversion to debt, like this editor, but as a business is hard to beat.

Put another way, while the first online lending venture of Laplanche, Lending Club, caters to people who are just beginning to borrow money, Upgrade appears to be focused on a slightly older demographic with more serious lending needs. Asked about this, Laplanche, who was somewhat famously ousted from Lending Club over a governance scandal roughly 18 months after taking the public — he launched Upgrade soon after — says simply that Upgrade building a “mainstream consumer credit brand.”

Its products, he adds, are designed to cater to “broad swaths of the population.”