Category: UNCATEGORIZED

02 Dec 2020

Sketchy wants to replace boring textbooks with ‘Pixar-like’ videos

Studying for med school is tough. What if it was more Pixar-like?

Sketchy, a visual learning platform, takes complex material that a med student might need to memorize for an exam, and puts the information in an illustrated scene. For example, it uses a countryside kingdom to explain the coronavirus, or a salmon dinner to explain Salmonella. The goal is for a student to be able to mentally go back to the scene while taking an exam, walk through it and retrieve all of the information.

While Sketchy’s strategy might seem odd, it’s actually well-known. The “memory palace” technique matches objects to concepts for easier memorization. So far, Sketchy has more than 30,000 paid subscribers and is on track to hit $7 million in revenue this year.

To charge this growth and break into new content verticals, Sketchy is taking venture capital on for the first time in its seven-year history. Last month, the team announced that it has raised a $30 million Series A led by The Chernin Group (TCG). Today, it tacks on $2 million to that total with financing from co-investor Reach Capital. It’s a big combined investment for a company that has been bootstrapping since birth — and the deal could help us see where online education is heading.

The capital comes as Sketchy itself looks to grow past a content service for med students, and into an education platform tackling information in critical fields, from legal to nursing. With the new money, Sketchy plans to build an in-house animation studio and hire more artists and doctors, some of whom are currently consultants.

The story

A big part of Sketchy’s magic, and effectiveness, comes from the fact that all of its founding team have experience in medicine.

The company began in 2013 when then-med students Saud Siddiqui and Andrew Berg were in desperate need of a better study solution for microbiology. To liven up their studying, Berg and Siddiqui began weaving characters into stories to try to memorize concepts — and after a few good test scores, they started creating stories for their classmates.

“Neither Sid or I were artists, so they were pretty bad,” Berg said. As demand continued, the duo put their scraggly sketches on YouTube. Eventually, Siddiqui and Berg roped in classmate Bryan Lemieux, a good artist, to tell the stories with them. Eventually Bryan brought on his twin brother, Aaron, and the founding team was born.

Fast-forward to today: Siddiqui and Berg have finished their residencies in emergency medicine, while the Lemieux brothers chose to leave medicine. All have moved full-time to the company after trying to balance both jobs. Still, the knowledge from working in the field continues to be useful.

The startup’s name has evolved: born as SketchyMedical, it has since rebranded to just Sketchy. While the team chose the name to nod toward its focus on art, the name also has negative connotations. Expect a rebrand in the future.

Despite this, the company claims that it is used by a third of med students in the United States. The majority of its revenues come from 12-month subscriptions for students looking to prep for med school exams like Step 1, and Step 2.

While B2C is a promising business model for many reasons (it’s always easier to convince a human to pay instead of a entire, red-tape-bound institution), the company has also posted promising B2B growth. So far, 20% of its revenue comes from direct contracts it has with medical schools. The founders said that they will pursue both growth methods for now, but based on the price of med school (and student debt crisis), it would be great to see them grow through school contracts so students don’t have to face the brunt of costs.

Beyond the coronavirus

Reach Capital’s Jennifer Carolan, an investor in Sketchy, said that Sketchy’s product market fit with med students is a “strong signal that their content is worth it.” Even with competitors such as Picorize and Medcomic, she’s confident that Sketchy’s product is defensible and can expand into new verticals. Part of the reason the firm approached Sketchy to invest in them is because of low customer acquisition costs, Carolan notes in a blog post. 

That said, unlike most edtech companies, which have enjoyed surging new user demand thanks to remote learning, Sketchy didn’t have a huge COVID-19 boom.

“We weren’t one of those people that hadn’t found product market fit and then exploded after COVID,” said Berg. “We’ve always been there and been growing.”

So the real trigger for today’s fundraise wasn’t COVID-19 momentum, but instead, a push to capitalize its sustained growth into more digital curriculum verticals.

Long-term, think of Sketchy as joining a chorus of startups, including Top Hat Jr and Newsela, that want to replace textbook publishers. In a remote world, live, moving content is more rapidly losing value, and upstarts are trying to replace them with more effective and engaging content.

“One of the challenges is just to make sure we don’t go too fast,” Siddiqui said. “We want to keep that degree of quality we’ve maintained for so many years, and do it at scale.”

02 Dec 2020

Amazon’s Fire TV Cube adds support for two-way video calls via a connected TV

Amazon in September announced it was bringing video calling support to its Fire TV platform. Today, the company says two-way video calling is now available with its Fire TV Cube devices (2nd gen.) The new feature will allow customers to pair a third-party webcam with their Fire TV Cube in order to make and receive video calls from their TVs to any other Alexa device with a screen.

That means customers could call other Alexa owners who have a Fire TV Cube of their own, an Echo device with a screen like the Echo Show, or even just the Alexa app installed on a smartphone or tablet.

For the feature to work, Amazon says the third-party video cams will need to meet certain minimum requirements, including UVC support, 720p resolution, 30 frames per sec (fps). Amazon, however, recommends that a better experience will be had with cameras with 1080p resolution and 60-90 degree field of view (FOV). It advises against 4K webcams.

The company also says a better experience will be had with a field of view from 6 to 10 feet away from the TV, but not greater than 12 feet.

The webcams themselves are connected to the Fire TV Cube via a Micro USB to USB adapter.

Amazon recommends the Logitech C920, Logitech C922x, Logitech C310, Aukey PC-LM1E, or Wansview 101JD webcams for those interested in trying the new feature.

Once connected, users will need to open the Alexa app on their phone to enable the messaging and calling options, if they had not already, and import their contacts.

To place a call, Alexa owners can say things like “Alexa, call Julie’s Echo,” for example. They can then control the call experience with voice commands like “Alexa, video on,” “Alexa, volume up,” “Alexa, answer” and “Alexa, end call,” among others.

Video chat support has been one of the key features for smart screens, like Amazon’s Echo Show, but it makes sense to bring support for video calls to the living room’s big screen, too, where possible. But unlike competitors in this space, Amazon doesn’t have an ecosystem of communication apps to leverage here, the way that Google Nest Hub Max has with Google Meet and Duo, or how Facebook Portal can reach family and friends on Facebook and WhatsApp. That could potentially limit adoption for the feature, as it requires the other user is plugged into the Amazon ecosystem as well.

Amazon says the new Fire TV Cube feature enabling support for the two-way video calls will begin to roll out today.

02 Dec 2020

Trump’s odd new attack on Section 230 is probably doomed

Trump’s crusade against a key internet law known as Section 230 tends to pop up in unlikely places. His Twitter feed on Thanksgiving, for one. Or at times you’d think the nation would be hearing from its leader on the matter at hand: a worsening pandemic that’s killed nearly 270,000 people in the United States.

His latest threat to the law, which is widely regarded as the foundation for the modern internet, is unlikelier still. Now, Trump wants to veto the National Defense Authorization Act (NDAA), a bill that allocates military funds each year, if it doesn’t somehow “terminate” Section 230 of the Communications Decency Act.

In a tweet, Trump mysteriously called the law a “serious threat to our National Security & Election Integrity” and claimed that only big tech companies benefit from it, which is not true. Big tech’s lobbying group made the opposite argument in response to the president’s new threat.

“Repealing Section 230 is itself a threat to national security,” Internet Association Interim President and CEO Jon Berroya said in a statement. “The law empowers online platforms to remove harmful and dangerous content, including terrorist content and misinformation.”

Section 230, which protects internet companies from liability for the content they host, is currently at the center of a complex bipartisan reform effort — one that’s nowhere near a consensus, much less an agreement that Section 230 should be scrapped outright.

President Trump’s threat to block the NDAA stakes out a deeply unpopular position. The sweeping defense budget bill includes all kinds of funding for popular programs that benefit U.S. troops and veterans, making a veto of the bill if the terms of a totally unrelated demand aren’t met a strange gamble indeed. The fact that Trump’s latest anti-230 tactic comes during a lame duck session gives his threat even less bite.

In light of that, most of Congress has gone about business as usual so far. But close Trump ally Sen. Josh Hawley (R-MO) did signal his support for Trump’s position on Wednesday. “The NDAA does NOT contain any reform to Section 230 but DOES contain Elizabeth Warren’s social engineering amendment to unilaterally rename bases & war memorials w/ no public input or process,” Hawley tweeted. “I cannot support it.”

If history is any lesson, Trump isn’t afraid to make an empty threat, eventually pivoting to something else that catches his attention. But Section 230 — previously a fairly arcane piece of legislation that attracted little mainstream attention — has rankled Trump for the better part of the year, even inspiring an executive order back in May.

That executive order gets at the real reason behind Trump’s ire: He believes that social media companies, Twitter in particular, have unfairly censored him. While Twitter has continued to allow Trump to remain on its platform even as he flaunts the rules, the company now limits the reach of his most dangerous or misleading tweets — false claims about the election results, for example — and pairs them with warning labels.

Paradoxically, if Trump got his way, an outright repeal of Section 230 would open online platforms up to an insurmountable level of legal liability, either sinking social media companies outright or forcing them to severely restrict their users’ speech.

It’s possible that the president could dig his heels in, pushing the defense spending bill into President-elect Biden’s term. But it’s more likely that Trump will back off of his unusual demand, which so far has yet to attract much support or even acknowledgement from his own party. At the moment, Congress is preoccupied with work on a second pandemic stimulus bill that would offer more financial support to the country.

Sen. Ron Wyden (D-OR), who co-authored Section 230, remains unworried that a repeal could get stuffed into the multi-hundred billion dollar defense bill in the eleventh hour.

“I’d like to start for the Blazers, but it’s not going to happen either,” Wyden told TechCrunch. “It is pathetic that Trump refuses to help unemployed workers, while he spends his time tweeting unhinged election conspiracies and demanding Congress repeal the foundation of free speech online.”

02 Dec 2020

Twitter now supports hardware security keys for iPhones and Android

Twitter said Wednesday that accounts protected with a hardware security key can now log in from their iPhone or Android device.

The social media giant rolled out support for hardware security keys in 2018, allowing users to add a physical security barrier to their accounts in place of other two-factor authentication options, like a text message or a code generated from an app.

Security keys are small enough to fit on a keyring but make certain kinds of account hacks near impossible by requiring a user to plug in the key when they log in. That means hackers on the other side of the planet can’t easily break into your account, even if they have your username and password.

But technical limitations meant that accounts protected with security keys could only log in from a computer, and not a mobile device.

Twitter solved that headache in part by switching to the WebAuthn protocol last year, which paved the way for bringing hardware security key support to more devices and browsers.

Now anyone with a security key set up on their Twitter account can use that same key to log in from their mobile device, so long as the key is supported. (A ton of security keys exist today that work across different devices, like YubiKeys and Google’s Titan key.)

Twitter — and other companies — have long recommended that high-profile accounts, like journalists, politicians, and government officials, use security keys to prevent some of the more sophisticated attacks.

Earlier this year Twitter rolled out hardware security keys to its own staff to prevent a repeat of its July cyberattack that saw hackers break into the company’s internal network and abuse an “admin” tool, which the hackers then used to hijack high-profile accounts to spread a cryptocurrency scam.

In the wake of the attack, Twitter hired Rinki Sethi as its new chief information security officer, and famed hacker Peiter Zatko, known as Mudge, as the company’s head of security.

02 Dec 2020

Helping big banks out-Affirm Affirm and out-Chime Chime, gives Amount a $681 million valuation

Amount, a new service that helps traditional banks compete in a digital world, has raised $81 million from none other than Goldman Sachs as it looks to help legacy fintech players compete with their more nimble digital counterparts.

The company, which spun out from the startup lending company Avant Credit in January of this year, has already inked deals with Banco Popular, HSBC, Regions Bank and TD Bank to power their digital banking services and offer products like point-of-sale lending to compete with challenger banks like Chime and lenders like Affirm or Klarna.

“Most banks are looking for resources and infrastructure to accelerate their digital strategy and meet the demands of today’s consumer,” said Jade Mandel, a Vice President in Goldman Sachs’ growth equity platform, GS Growth, who will be joining the Board of Directors at Amount, in a statement. “Amount enables banks to navigate digital transformation through its modular and mobile-first platform for financial products. We’re excited to partner with the team as they take on this compelling market opportunity.”

Complimenting those customer facing services is a deep expertise in fraud prevention on the back-end to help banks provide more loans with less risk than competitors, according to chief executive Adam Hughes.

It’s the combination of these three services that led Goldman to take point on a new $81 million investment in the company, with participation from previous investors August Capital, Invus Opportunities and Hanaco Ventures — giving Avant a post-money valuation of $681 million and bringing the company’s total capital raised in 2020 to a whopping $140 million.

Think of Amount as a white-labeled digital banking service provider for luddite banks that hadn’t upgraded their services to keep pace with demands of a new generation of customers or the COVID-19 era of digital-first services for everything.

Banks pay a pretty penny for access to Amount’s services. On top of a percentage for any loans that the bank process through Amount’s services, there’s an up-front implementation fee that typically averages at $1 million.

The hefty price tag is a sign of how concerned banks are about their digital challengers. Hughes said that they’ve seen a big uptick in adoption since the launch of their buy-now-pay-later product designed to compete with the fast growing startups like Affirm and Klarna .

Indeed, by offering banks these services, Amount gives Klarna and Affirm something to worry about. That’s because banks conceivably have a lower cost of capital than the startups and can offer better rates to borrowers. They also have the balance sheet capacity to approve more loans than either of the two upstart lenders.

 “Amount has the wind at its back and the industry is taking notice,” said Nigel Morris, the co-founder of CapitalOne and an investor in Amount through the firm QED Investors. “The latest round brings Amount’s total capital raised in 2020 to nearly $140M, which will provide for additional investments in platform research and development while accelerating the company’s go-to-market strategy. QED is thrilled to be a part of Amount’s story and we look forward to the company’s future success as it plays a vital role in the digitization of financial services.”

FT Partners served as advisor to Amount on this transaction.

02 Dec 2020

Gift Guide: The best books for 2020 recommended by VCs and TechCrunch writers (Part 1)

Welcome to TechCrunch’s 2020 Holiday Gift Guide! Need help with gift ideas? We’re here to help! We’ll be rolling out gift guides from now through the end of December. You can find our other guides right here. This is Part 1 of the Best Books gift guide. Part 2 with even more selections will be posted shortly.

2020 was a tough year for all of us, but a strong one for books (how often do you get to say that?). Sales are up, driven by lockdowns, boredom, and the need for escape. Yet, 2020 also felt like a watershed year for media in general, a time when we started to deeply question the value of real-time communications driven by fear.

Books are no guaranteed antidote to the daily grind of the information economy, but they do provide room for readers and authors to breathe, to take stock of where we are and where we are going. Not in the moment, but of the moment. Whether that means escaping into the lives of fictional characters on another planet, or understanding the lives of others on our very own, books provide the material that can help us rethink all that’s going on and what happens next.

So I’m delighted to share nine book recommendations from my fellow TechCrunch writers as well as a few VCs on what to read in 2020. Some books are a few weeks old, others a few years, but they all made an impact on the lives of their reviewers this year as we confronted one of the most challenging times in recent memory.

This article contains links to affiliate partners where available. When you buy through these links, TechCrunch may earn an affiliate commission.

Dark Mirror: Edward Snowden and the Surveillance State by Barton Gellman

Penguin Random House, 2020, 448 pages
Recommended by Zack Whittaker, Cybersecurity Editor at TechCrunch

Dark Mirror tells the story of how its author, Pulitzer Prize-winning journalist Barton Gellman, became embroiled in reporting one of the biggest leaks of highly classified documents in a generation, thanks to former NSA contractor turned whistleblower Edward Snowden.

Gellman was one of only a handful of people given a copy of the cache of “top secret” documents swiped by Snowden in 2013. The documents revealed the enormous scale of the U.S. government’s surveillance capabilities — and those of its allies. The book is written largely in first-person, and it shines a brand new light on the Snowden disclosures and published stories that followed, the mistakes that were made, as well as new revelations that were never previously told.

You learn more about Snowden, his character and temperament, how he collected thousands of classified documents from right under the NSA’s nose, how he came to “meet” Gellman for the first time, and what motives led the whistleblower to go public.

You also follow how Gellman sourced, vetted, and fact-checked some of the most significant findings from the documents — with help from researchers Ashkan Soltani and Julie Tate — from revealing the PRISM slides, to the jaw-dropping moment that Gellman recounted telling a Google engineer how the NSA was secretly siphoning off data from its private datacenter links. Gellman spares no detail of his years-long journey in covering the documents, and isn’t one to shy away from revealing his own struggles — not least trying to protect the cache from spies both at home and abroad, and fearing that he too could become a target.

Gellman brings a fresh perspective and hindsight on the narrative you might have followed in the aftermath of the scandal, and fills in the blanks during a period of time that had the world in turmoil. And yet seven years after the first of many stories broke, Dark Mirror continues to spill details never known before in every chapter. His storytelling is exquisite, even if you’ll never want to use the internet again after reading it.

Price: $20 from Amazon

The Color of Money: Black Banks and the Racial Wealth Gap by Mehrsa Baradaran

Belknap Press (Harvard University Press), 2017, 384 pages
Recommended by Liz Sisson, Chief Operating Officer of Urban Us

Anyone who manages money, invests in others’ livelihoods or lives in America should read The Color of Money: Black Banks and the Racial Wealth Gap by Mehrsa Baradaran, an associate dean and professor at the University of California-Irvine and a fellow at the Roosevelt Institute.

Baradaran’s 2017 book explores the past efforts to create economic inclusion in the United States, how they have not succeeded and how any real attempts to improve the wealth gap would need to improve access to capital, among other solutions.

The book digs into financial institutions and policies that are responsible for creating and maintaining racial inequalities in the United States. Baradaran covers the racial wealth gap and its relation to banking as well as the history, political theories, policies and people who maintained the long-standing racist institutions with access to capital and therefore wealth. The book also addresses the idea that wealth is not the same as equality.

A median white family in America has 13 times more wealth than that of a median Black family. The Color of Money explains why that wealth gap continues, and why it tripled between 1984 and 2009, through history and an examination of government policies such as redlining and GI Bills as well as discriminatory behaviors.

Baradaran teaches the reader about the long history of financial institutions such as community banking, Black banks, mortgage lending and government programs (e.g. CDFI, CRA, GSE, OMBE and FDIC) that have played a role in these systems. She also investigates the limitations of capitalism due to segregation and exploitation during the Reconstruction era, the Great Migration, the New Deal era, Jim Crow, and throughout the neoliberal, trickle-down, small government, and war on drugs policies of the 1970s, 80s, 90s and beyond.

The book introduces the philosophies of many leaders, from Frederick Douglass to Martin Luther King Jr., and Presidents Nixon and Reagan who argued that financial prosperity through Black capitalism (banking, ownership, boot straps and entrepreneurship) was the answer to equality. The author argues these ideas are not magic bullets to fix centuries of poverty and abysmal economic opportunity due to discriminatory government, banking policies and generally resource-poor communities. The book breaks down the stereotypes of self-help dogma that tout “save more, don’t spend so much or pull yourself up” and rejects the idea that those who are not wealthy just need more financial literacy or mentorship. “Self-help microfinance cannot overcome macro inequality and systemic racism.”

Deploying capital and creating economic opportunity in VC and in startups means it’s important to understand the racial wealth gap and the history of banking, credit and capital in the United States. As a society, we should constantly be learning from our past mistakes to ensure we are making better and equitable decisions for the future. The Color of Money is a necessary work that pushes us to correct those past wrongs.

Price: $15 from Amazon

The Death of the Artist: How Creators Are Struggling to Survive in the Age of Billionaires and Big Tech by William Deresiewicz

Henry Holt and Co. (Macmillan), 2020, 368 pages
Recommended by Danny Crichton, TechCrunch Managing Editor

The internet has completely upended the production of art (often labeled as “content” in the capitalist jargon du jour). When it first came to wide attention, the internet seemed like an invention of infinite promise for creatives — a medium of open expression and a network of new human connections that offered faster and broader access to the most brilliant minds of the world. Old barriers crumbled, and cyberspace would be the new basis for an ambitious era of art.

Along the way, the internet also decimated the economic foundations of the modern art world, and despite the media’s obsession with platforms like Kickstarter, Patreon, and Substack, has done almost nothing to underwrite the old middle-class careers that were once available to artists.

William Deresiewicz, the famed essayist of The Disadvantages of an Elite Education and a book on how colleges produce Excellent Sheep, turns his attention to the creator market and the economics of art. He’s both an observer and a participant, having left his decade-long teaching stint at Yale to go full freelancer. For the book, he interviewed about 150 creators across a range of fields, from painting and sculpture to writers and illustrators, and what he finds is, perhaps unsurprisingly, depressing.

In short, the economics of art today are terrifying. Platforms like Spotify pay a pittance for art, and the so-called “mid-list” works of artists are increasingly valueless. The internet may have millions of creators bopping around, but few of those people are getting paid, and an extremely small number are getting paid well. Like in so many other knowledge fields, there is an extreme superstar effect on the internet where a handful of artists can have all while almost all other artists have none.

While the descriptions of the salaries and lack of benefits offers some of the emotional heft of the book, Deresiewicz’ goes on to explore the history of the funding of the arts, from Renaissance patrons to the modern world of grant and foundation money, attempting to place our current predicament into context. He manages to critique everyone, from artists who refuse to adapt to the capitalistic structures of today to the art schools that profit off the indebtedness of their students. I was expecting a polemic, and got a reasonable slice of analysis instead.

It’s an eye-opening book, but necessarily incomplete. For the reality is, there are too many humans who want to produce art, and too few consumers who want to pay to observe and enjoy it. That supply and demand mismatch isn’t going away anytime soon. While the author has some interesting ideas about copyright and intellectual property commons and what not, the reality is that the plight of the artist is most definitely not a problem that has been solved by Silicon Valley technologists.

Most of the book isn’t revolutionary, but in many ways, few economics are for art. The Death of the Artist reminds us that the consumer choices we make do influence the kind of art we get — and the future prognosis isn’t good.

Price: $20 from Amazon

A Woman of No Importance: The Untold Story of the American Spy Who Helped Win World War II by Sonia Purnell

Penguin Random House, 2019, 368 pages
Recommended by Ron Miller, TechCrunch enterprise reporter

When you look back at World War II, you no doubt have heard about the male leaders and generals on all sides of the conflict. These are the people history typically remembers, but you don’t usually hear about the unsung heroes, who operated in the shadows doing the hard work that wins wars.

One such person is a woman named Virginia Hall.

Author Sonia Purnell tells her remarkable story in the ironically titled A Woman of No Importance. As it turns out, Hall was incredibly important, and she single-handedly helped organize the resistance in Nazi-occupied France, moving stealthily around the country, constantly on the run from the Gestapo and French authorities, while somehow maintaining contact and passing valuable information to England.

She did all this not only as a woman in a world that didn’t take women seriously, remarkably, she also accomplished this with only one leg. Hall lost one of her legs in a hunting accident and used a wooden prosthetic, making her even more conspicuous for the authorities who were constantly on her trail.

Hall, who grew up in Baltimore, traveled overseas as a girl and developed a fondness for France. Even after the hunting accident, she drove an ambulance in France when the Germans attacked in 1940, simply wanting to help. Later after returning to London, she somehow talked her way into a new spy network that was being formed by the English government. They lacked personnel who knew France and had contacts, so they took a chance on her. She rewarded them richly with a body of work that would help change the war. Later, she would work for the precursor to the CIA, the Office of Strategic Services, when America joined the war.

Among her accomplishments were building a network of spies, safe houses and supply routes. She quietly helped organize French resistance and once in place, made sure they had money, weapons, food and training. She once engineered a daring escape of her colleagues, who were being held captive by Nazi authorities in a well-guarded prison camp. She climbed over the rugged Pyrenees mountains through deep snow to safety in Spain when she had to escape the country.

In spite of these accomplishments and many more, she of course had to deal with overt sexism along the way, and Purnell tells how she was often required to report to men who were inferior in every sense. Often she just went her own way, bypassing the system and simply getting the job done.

While there were awards and accolades after the war, she mostly ignored them and seemed content to be a person who operated in the background. She later worked for the CIA, where again she had to deal with sexism and a general lack of respect for her accomplishments.

Hall should be a figure who is remembered and revered by history — a role model for all, a woman whose dogged persistence, intelligence and savvy helped win the war. I couldn’t put this book down, constantly astonished by her feats of daring and bravery, and by the fact that such an amazing person could have been lost to history if not for this impeccably researched book.

Price: $16 from Amazon

Shoe Dog: A Memoir by the Creator of Nike by Phil Knight

Scribner (Simon & Schuster), 2016, 400 pages
Recommended by Nicole Quinn, partner at Lightspeed Venture Partners

I was a competitive sprinter for many years. It’s how I cleared my head and maintained equilibrium, so the book I recommend to founders is Shoe Dog, Phil Knight’s story of how he started his career selling low-cost running shoes and turned it into a $160 billion empire.

I remember reading Shoe Dog for the first time shortly after it was published, under the arches at the Knight Management Center at Stanford, where I had just finished my degree while also working on my own startup. That building was named after Phil Knight, who received his MBA from Stanford and had donated $105 million to the university.

One of the things I like about this book is that Knight was one of the first to discover the power of influencer marketing — most famously Nike’s connection with Michael Jordan in the 1980s. The deal was a partnership of equals between an up-and-coming company and a rising superstar, and it completely transformed the worlds of both sports shoes and celebrity endorsements.

Knight’s account of that partnership taught me to never take my own partnerships for granted. I consider myself lucky to work with influencers like Gwyneth Paltrow and Lady Gaga on Lightspeed portfolio companies Goop and Haus Laboratories respectively. By treating these as true partnerships of value and respect, we can aspire to achieve what Nike and Jordan did with theirs.

Shoe Dog also drove home for me the incredible importance of word-of-mouth marketing. Knight writes about what happened when his first full-time employee, Jeff Johnson, walked around in a pair of Blue Ribbon Tigers: “People kept stopping him and pointing at his feet and asking where they could buy some neat shoes like those.”

When we analyzed Calm and Cameo to join our portfolio, we looked closely at their potential for generating word of mouth and were impressed with both. As in the early days of Nike, word of mouth is still one of the leading indicators of a brand with staying power.

Knight’s book also teaches us about the power of thinking globally. Back in 1980, Knight was already plotting to use Nike’s foothold in Japan to expand into China. Today, many strong U.S. brands still underperform in other countries. One of the key reasons Lightspeed has opened offices in China, India, Israel, and London is to offer insights and advice for companies that seek a more global footprint.

Finally, Shoe Dog has made me grateful for all the funding options we have today for startups. Back in the early 1970s, when Knight was trying to build Nike into a global brand, IPOs weren’t necessarily a celebration. They were often the only way organizations could raise the capital they needed to reach the next level. “If we didn’t go public, we risked losing everything,” Knight writes. He didn’t want to do an IPO, but it was his only option to scale the company.

That’s a different universe than the one we live in now, with all the different investment rounds and funds available to startups today, which allow companies to take as long as they need before filing for a public offering, assuming they decide to take that path.

These are just some of the reasons why I would recommend Shoe Dog. It perfectly captures the entrepreneurial spirit I see in the people and companies I work with each day and inspires me to help them follow in Knight’s footsteps.

Price: $11 from Amazon

The Information: A History, a Theory, a Flood by James Gleick

Vintage (Penguin Random House), 2011, 544 pages
Recommended by Danny Crichton, TechCrunch Managing Editor

Information — what it is, when’s it true, and what’s it for — has been one of the most persistent themes in tech the past few years. There are now dozens of works on misinformation, algorithmic propaganda, and “fake news” trying to help us wade through the epistemology of the modern world. Yet, this isn’t the first time that humans have gone through an information revolution, nor is it likely to be the last.

James Gleick wrote The Information almost a decade ago, but the book feels more relevant than ever. In it, he provides a full historical overview of what we mean by information, how it gets organized, and how it gets transmitted from person to person. It’s an absolutely fascinating lens to view history by, and represents one of the best examples of the power of synthesis to redefine our perspective on the world.

What’s all here? The invention of the alphabet and the dictionary. The use of drums and flares to signal danger and communicate over distances. The telegraph and the telephone. The development of mathematics and particularly the mathematics of information theory. Quantum and classical computing. All wrapped up into an overarching narrative about the human need for more knowledge and understanding of the universe. You also get to meet a cast of luminaries along the way including some of the most brilliant minds in physics, mathematics and computer science.

Gleick focuses mostly on the theory and the invention of the technologies themselves, with occasional digressions into the social ramifications of these communications technologies. I would have liked more of the latter, as one pattern you notice with each wave of communications technology is that there are distinct short-, medium-, and long-term changes that each induces. Given how much acceleration around information we have had the past decade or two, it’s quite palpable to observe just how much more change is to come that’s already been set in motion.

In short, The Information is a deeply-researched and enticing historical journey, one that encourages us to contextualize the overwhelming changes happening in our world.

Price: $16 from Amazon

Lifespan: Why We Age—and Why We Don’t Have To by David A. Sinclair with Matthew D. LaPlante

Atria Books (Simon & Schuster), 2019, 459 pages
Recommended by Alex Iskold, managing partner of 2048 Ventures

David Sinclair, professor of genetics at Harvard Medical School, dedicated his life to the research of aging. The central idea of Lifespan, his latest book, is that humans aren’t actually programmed by nature to age and die. Instead, Sinclair argues that heart disease, Alzheimer’s, cancer and other major causes of death are all manifestations of one single disease — aging. He then explains how cutting-edge science in coming decades will help substantially slow down, and eventually reverse aging, enabling people to live to 150 years old and beyond.

The book contains a fascinating mix of Sinclair’s research, practical advice on anti-aging, implications for healthcare and medicine, philosophy of anti-aging and mind-bending societal implications of substantially longer lifespan

Price: $15 from Amazon

Jonathan Strange & Mr. Norrell by Susanna Clarke

Bloomsbury, 2005, 864 pages
Recommended by Anthony Ha, TechCrunch writer

I’ve had a copy of Jonathan Strange & Mr. Norrell on my shelf for years, but I never felt motivated enough to start the (literally) thousand-page tome until its author, Susanna Clarke, was profiled a few months ago in The New Yorker.

Boy, do I feel dumb for waiting. The novel is an absolute pleasure from beginning to end, and as soon I’d started it, I found myself trying to steal free time to read another 10 pages (or 50, or 100 …)

The novel takes place in an alternate England where magic is real — or so we’re told. By 1806, when the story opens, faeries have disappeared, and the only magicians are “theoretical,” spending their time researching magical history rather than casting real spells.

Gilbert Norrell, a rather stodgy and reclusive scholar of the magical arts, changes all that. When challenged by The Learned Society of York Magicians, Mr. Norrell reveals his powers by bringing an entire cathedral’s work of statues to life. He then proceeds to London, where he hopes to revive the practice of English magic. Eventually, he trains an equally talented magician named Jonathan Strange — Strange is younger, more dashing, and more impulsive, and the pair’s friendship soon turns into a rivalry.

That’s just the barest outline of the story, which encompasses everything from the Napoleonic wars, the cost of bringing your loved ones back from the dead, and the history of a mysterious figure known as the Raven King. Jonathan Strange & Mr. Norrell fully justifies its length — if anything, it packs an entire trilogy’s worth of plot into a fast-paced single volume.

Beyond the pleasure of finding out what happens next, I luxuriated in the opportunity to spend time with the characters and world that Clarke created. Jonathan Strange and Mr. Norrell seem like real people, while its alternate history (often revealed in playful footnotes) feel like real history.

And, more than any novel I can recall, Jonathan Strange & Mr. Norrell makes magic seem like something indescribably strange — not just a writerly trick or trope, but a hidden layer of reality that only a talented magician (or talented writer) can reveal.

Price: $10 from Amazon

Exhalation: Stories by Ted Chiang

Knopf (Penguin Random House), 2019, 368 pages
Recommended by Danny Crichton, TechCrunch Managing Editor

We ran an experimental book club on the short story collection Exhalation, which explores a variety of themes about connection, humanity, and a nice bit of time warp. Chiang has a preternatural ability to devise interesting plot devices and extend them into beautiful fractals of thinking and reflection. Definitely read the book, and check out our story-by-story discussion from earlier this year on TechCrunch:

Price: $15 from Amazon

 

02 Dec 2020

Discovery will launch its own streaming service on January 4

Discovery is the latest media company to launch a standalone streaming service — and the latest to adopt the simple naming strategy of just adding a plus sign — with discovery+, set to launch in the United States on January 4, 2021.

While Discovery doesn’t have the name recognition of (say) Disney/Disney+, it’s pitching the service as “the definitive streaming service for the best real life entertainment in the world,” with 55,000 episodes at launch drawn from Discovery networks like HGTV, Food Network, TLC, ID, OWN, Travel Channel, Discovery Channel and Animal Planet. It’s also struck a deal with A&E Networks to feature content from A&E, The History Channel and Lifetime.

And of course there will be original programming, including several “90 Day Fiancé” spinoffs, the U.S. premiere of the BBC series “A Perfect Planet,” a topiary competition series (with Martha Stewart as lead judge) called “Clipped,” a Kevin Hart travel show with the working title “Route 66” and much more.

Discovery+ also has a first look deal with Magnolia Network, a joint venture with “Fixer Upper” stars Chip and Johanna Gaines. And it will feature original content from Discovery-backed digital media company Group Nine, whose brands include The Dodo, NowThis and Thrillist.

While the big U.S. launch isn’t happening until January, discovery+ actually launched in the United Kingdom and Ireland through a deal with Sky last month, and the company plans to launch across 21 markets in 2021. For European viewers, the service will be the streaming home of the Olympics, starting with next year’s event in Tokyo.

In the U.S., discovery+ will cost $4.99 per month, or $6.99 per month to go ad-free. Discovery is also announcing a partnership with Verizon to offer up to 12 months (depending on the plan) of free discovery+ access to select wireless and home internet subscribers. (Verizon owns TechCrunch.)

In a statement, Discovery President and CEO David Zaslav said:

We have been working methodically the past two years to bring all of our strategic advantages to the launch of discovery+, including distribution and advertising partnerships around the world, a world-class offering of quality brands, authentic personalities and the largest content library at launch, as well as a broad slate of exclusive programming. With discovery+, we are seizing the global opportunity to be the world’s definitive product for unscripted storytelling, providing households and mobile consumers a distinct, clear and differentiated offering across valuable and enduring lifestyle, and real life verticals.

 

02 Dec 2020

With Hyperforce, Salesforce lets you move your data to any public cloud

For much of its existence, Salesforce was a cloud service on its own with its own cloud resources available for its customers, but as the company and cloud computing in general has evolved, Salesforce has moved some of its workloads to other clouds like AWS, Azure and Google. Now, it wants to allow customers to do the same.

To help facilitate that, the company announced Hyperforce today at its Dreamforce customer conference, a new architecture designed from the ground up to help customers deliver workloads to the public cloud of choice.

The idea behind Hyperforce is to enable customers to take all of the data in what Salesforce calls Customer 360 — that’s the company’s detailed view of the customer across channels, Salesforce products and even other systems outside the Salesforce family — and be able to store that in whichever public cloud you want in whatever region you happen to operate. For now, they are in India and Germany, but there are plans to add support for 10 additional countries over the next year.

Company president and CTO Bret Taylor introduced the new approach. “We call this new capability Hyperforce. Simply put, we’ve been working to enable us to deliver Salesforce on public cloud infrastructure all around the world,” Taylor said.

Holger Mueller, an analyst at Constellation Research, says the underlying architecture running the Salesforce system is long overdue for an overhaul. At over 20 years old, it’s been around a long time now, but Mueller says that it’s about more than modernizing. “The pandemic requires SaaS vendors to move their offerings from their own data centers to [public cloud] data centers, so they can offer both architectural and commercial elasticity to their customers,” he said.

Mueller added that by bringing Salesforce data into the public cloud, besides the obvious data sovereignty issues it solves, it bring all of the advantages of using public cloud resources.

“Salesforce can now offer both architectural and commercial elasticity to their customers. Commercial elasticity matters a lot to CIOs and CTOs these days because when your business slows down, you pay less, and when your business accelerates, then you can afford to pay more,” he said. He says that Salesforce is bringing an early generation SaaS product and pulling it into the modern age, something that is imperative at this point in the company’s evolution.

But while moving forward, Taylor was careful to point out that they rebuilt the system in such a way as to be fully backwards compatible, so you don’t have to throw out all of the applications and investment you’ve made over the years, something that most companies couldn’t afford to do.”For you developers out there, This is the most remarkable thing. It is 100% backwards compatible, your apps will work with no changes and you can benefit from all of this automatically,” he said.

The company will be rolling out Hyperforce over the next year and beyond as it opens in more regions.

02 Dec 2020

From surviving to thriving as a hardware startup

When a friend forwarded this tweet from Paul Graham, it hit close to home:

Startups are subject to something like infant mortality: before they’re established, one thing going wrong can kill the company. Hardware companies seem to be subject to infant mortality their whole lives.
I think the reason is that the evolution of the product is so discontinuous. The company has to keep shipping, and customers to keep buying, new products. Which in practice is like relaunching the company each time.
I don’t know if there is an answer to this, but if there were a way for hardware companies to evolve more the way software companies do, they’d be a lot more resilient.

Looking back on our startup journey at Minut, I remember several moments when we could have died. However, surviving several near misses we learned to tackle these challenges and have become more resilient over time. While there will never be one fully exhaustive answer, here are some of the lessons we learned over the years:

Subscription revenue is the only revenue that counts

While you can sell hardware with a margin and make important early revenue, it’s not a sustainable business model for a company that requires both software and hardware. You can’t cover an indefinite commitment with a finite amount of money.

Many hardware companies don’t consider subscriptions early enough. While it can be hard to command a subscription from the start (if you can, you might have waited too long to launch), it needs to be in the plan from the beginning. Look for markets where paying subscriptions is the norm rather than markets that operate on a one-time sale model.

Set high margins and earn them over time

It’s tempting to set low prices for hardware to attract customers, but in the beginning you should do the opposite. Margins allow for mistakes to be rectified. A missed deadline might mean you have to opt for freight by air rather than boat. You might have to scrap components or buy them expensively in a supply crunch. Surprises are seldom positive, and you don’t want to use your venture capital to pay for them.

Healthy margins can also be used to cover marketing costs while you learn what kind of messaging works and what channels you can sell through. If that wasn’t enough reason, starting with relatively high prices will help you avoid another common mistake, selling too much at launch.

This might seem counterintuitive — why wouldn’t you want great success out of the gate? The reason is that you will inevitably make mistakes with your early launches, and the bigger the launch, the bigger the blow. There are plenty of companies who achieved amazing crowdfunding success and then failed to deliver even the first units. Startups tend to chase growth at all costs, but for hardware startups in the first few years there is such a thing as too much of a good thing.

02 Dec 2020

Okay nabs funding from Sequoia to build performance dashboards for engineering managers

Amid the pandemic, workplace cultures have been turned on their heads, meanwhile investment and growth haven’t slowed for many tech companies, requiring them to still onboard new engineering managers even while best practices for remote management are far from codified.

Because of remote work habit shifts, plenty of new tools have popped up to help engineers be more productive, or quickly help managers interface with direct-reports more often. Okay is taking a more observatory route, aiming to give managers dashboards that quantify the performance of their teams so that they can get a picture of where they have room to improve.

The startup, which launched out of Y Combinator earlier this year, tells TechCrunch they’ve raised $2.2 million in funding led by Sequoia and are launching the open beta of their service.

Co-founders Antoine Boulanger and Tomas Barreto met while working at Box — Boulanger as a senior director of engineering and Barreto as a VP of engineering. They told TechCrunch that in the process of building out a suite of in-house tools designed to help managers at Box understand their teams better, they realized the opportunity for a subscription toolset that could help managers across companies. For the most part, Boulanger says that today Okay is largely replacing tools built in-house as well.

Getting a picture of an engineering team’s productivity means plugging into these toolsets and gathering data into a digestible feed. Okay can be integrated with a number of toolsets, including software like GitHub, PagerDuty, CircleCI and Google Calendar.

“Part of the problem for managers is that there are so many tools, so how do you get signal from the noise?” Barreto tells TechCrunch.

A large part of Okay’s sell seems to be ensuring that managers can keep an active eye on the common pitfalls of rapid scaling and keep them in check so that can keep direct-reports satisfied. On the individual basis, managers can quickly see stats related to how much of an individual manager’s time is being spent in meetings compared to un-interrupted “maker time” where they actually have the ability to get work done.

People don’t like to be micro-managed and the idea that everything you do is feeding into a pie chart that judges whether you’re a good employee or not isn’t the most savory sell for engineers. Okay’s founders hope they can strike a balance and give managers data that they’re not tempted to over-rely on, instead defaulting to team-level insights when they can so that managers are dialed into general trends like how long projects are taking on average or how long it takes for pull requests to be reviewed.

Investors have been bankrolling remote work tools at a heightened pace for the last several months and things have been especially fortunate for young companies that were ahead of the trend. Barreto, for his part, has served as a scout at Sequoia since 2018 according to his LinkedIn.

The team says their product, as it stands today, is best fit for companies with 50-200 engineers that are high-growth and perhaps going through some of those growing pains. The company’s early customers include teams at Brex, Plaid and Split.