Category: UNCATEGORIZED

24 Nov 2020

Pay-per-mile auto insurer Metromile is heading to public markets via SPAC

Metromile, the pay-per-mile auto insurer that earlier this year laid off a third of its staff due to economic uncertainties caused by COVID-19, is taking the SPAC path to the public markets.

The company, which was founded in 2011 and is led by CEO Dan Preston, said it has reached a merger agreement with special purpose acquisition company INSU Acquisition Corp. II, with an equity valuation of $1.3 billion.

Metromile said it was able to raise $160 million in private investment in public equity, or PIPE, in an investment round led by Chamath Palihapitiya’s firm Social Capital. Existing investors Hudson Structured Capital Management and Mark Cuban, as well as new backers Miller Value and Clearbridge participated. Metromile will have about $294 million of cash at closing.

The company plans to use those proceeds to reduce existing debt and accelerate growth, specifically to hire employees to support its consumer insurance and enterprise businesses, and grow beyond its eight-state geographic footprint to a goal of 21 states by the end of next year and nationwide coverage by the end of 2022.

Metromile is credited for disrupting some of the inefficiencies of the auto insurance business model, notably how consumers are charged. Instead of a standard flat fee, Metromile charges customers based on their mileage, which it is able to measure via a device plugged into the vehicle. Some two-thirds of U.S. drivers are considered low-mileage, according to Metromile. By charging per mile, Metromile says its customers save 47% on average compared to their previous insurer.

The company developed a mobile app, which besides allowing users to file claims, offers other features such as alerting the driver of possible parking violations due to street sweeping activity. Now, with 3 billion miles of driver data, the company is able to make predictive models that help lower customer costs and improve their overall experience.

The company also built out an enterprise division in 2019 that offers a cloud-based software as a service to large legacy insurers. Metromile licenses components of its platform, including claims automation and fraud detection tools.

The COVID-19 pandemic created initial headwinds for Metromile, which had been one of the fastest growing startups in the Bay Area. Metromile ended up laying off about 100 people as it aimed to pare back its workforce. The company said at the time that its business was affected by pandemic-related stay-at-home orders, which caused its customers to drive less. The pandemic also prompted U.S. drivers to shop around for insurance and look for deals that supported their shift to lower mileage.

Investor Cuban said in the company’s SPAC announcement sees an upside for the business.

“During these times of financial hardship, unemployment, and work from home, Metromile provides an important insurance alternative,” Cuban said. “The option to pay for insurance by the mile is a game changer and why I’m incredibly excited about Metromile’s future!”

Social Capital’s Palihapitiya is equally bullish on the company, tweeting Tuesday “Buffett had Geico. I pick  @Metromile.”

Metromile has hired back staff and returned employees that it placed on furlough this spring. Today, the company has more than 230 employees and doesn’t expect any reductions in the workforce in the future. Instead, the company told TechCrunch it plans to hire additional staff on the expectation that both its consumer and enterprise businesses will grow “considerably” in the next few years.

The transaction is expected to close in the first quarter of 2021. The combined company will be named Metromile Inc., and is expected to remain listed on NASDAQ under the new ticker symbol “MLE.”

24 Nov 2020

YouTube suspends and demonetizes One America News Network over COVID-19 video

YouTube today confirmed that it has suspended right-wing cable channel One America News Network (OAN or OANN for short). The penalty comes after a violation of YouTube’s stated COVID-19 misinformation guidelines. As a result, the network will be barred from posting new videos for a week, while its existing videos will also be demonetized for that period.

A spokesperson for the Google-owned video service offered the following statement to TechCrunch:

Since early in this pandemic, we’ve worked to prevent the spread of harmful misinformation associated with COVID-19 on YouTube. After careful review, we removed a video from OANN and issued a strike on the channel for violating our COVID-19 misinformation policy, which prohibits content claiming there’s a guaranteed cure. Additionally, due to repeated violations of our COVID-19 misinformation policy and other channel monetization policies, we’ve suspended the channel from the YouTube Partner Program and as a result, its monetization on YouTube.

The service has a three-strikes policy in place, with the first two strikes carrying their own policies. In addition to the above actions, the offending video has been pulled from the channel. This is OAN’s first strike. Per the site:

If we find your content doesn’t follow our policies for a second time, you’ll get a strike.

This means you won’t be able to do the following for one week:

  • Upload videos, live streams, or stories
  • Create custom thumbnails or Community posts
  • Created, edit, or add collaborators to playlists
  • Add or remove playlists from the watch page using the “Save” button

Full privileges will be restored automatically after the 1-week period, but your strike will remain on your channel for 90 days.

A second strike in a 90-day period would result in a two-week suspension. A third strike in a 90-day period would result in the channel’s termination.

OAN has become a personal favorite for Trump and his administration recently, particularly in the wake of fallout between the president and Fox News, after that long-favorite cable network called the recent election for opponent Joe Biden.

One America News also came under fire for videos like “Trump Won,” which falsely reported on the election’s results. YouTube opted not to pull that video over disinformation concerns, instead adding a warning and removing ads from the video, noting, “[w]e will continue to be vigilant in the post-election period.”

24 Nov 2020

‘Complete Success’: Rocket Lab’s booster recovery is a big step towards reusability

Rocket Lab has successfully recovered the first stage of an Electron launch vehicle after it made a controlled splashdown in the Atlantic, marking a major milestone in the company’s quest for a reusable rocket. CEO Peter Beck, speaking to press shortly after the operation, called the mission “a complete success” — and it raised $286,092 for charity to boot.

This was the first major test of Rocket Lab’s improved Electron, which has a modified interstage (above the first stage booster but below the second stage, which takes the payload into orbit) that allows the booster to make a controlled descent after detaching.

The plan for the future is to have a helicopter catch the booster in mid-air, but this first time the team decided to let it splash down first. “Pulling rockets out of the ocean is just not fun,” Beck noted.

Before the mission even starts, a general idea of the descent area is already known, since the trajectory of the rocket has been carefully planned and the weather monitored closely. And as the launch proceeds, the projected descent area becomes more and more clear based on information streamed from the rocket itself.

“Downrange we’ll have a ship and a helicopter based on the ship. It’ll take off at the same time as the rocket and hover over the predicted reentry point,” explained Beck. “The moment we hand over to stage one, it is telemetrying its predicted impact point in real time. The whole time there’s sort of a real time feedback loop.”

He pointed out that, should something go wrong with the launch, the helicopter is not at risk of being struck by debris going 900 miles per hour, since the trajectory be completely different in that case.

After the second stage detached, the first began its descent, hitting about mach 2 before deploying its pilot chute, then a drogue chute for about a minute to get its speed down, then the main glider chute under which it would normally cruise along a predictable path until being picked up by the helicopter. In this case it was allowed to splash down, however, “within a few miles” of the predicted impact zone. It was going about 9 meters per second, or 20 miles per hour, when it hit the water.

The Electron first stage appears to be in good condition after recovery.

Image Credits: Rocket Lab

Beck was back at mission control, and happy to be so, he said. “Based on the state of the sea, I’m glad I wasn’t out on the boat. The trip back was on 5-meter swells. I don’t have particularly strong sea legs myself,” he admitted. The descending stage was sending back sparse but accurate telemetry, however, which he was watching as the second stage continued its journey. “It felt like cheating, to take your eyes off the ascent to watch the reentry.”

(He added that “if you were in the room, you’d probably have described me as a giggling schoolboy.” Another Rocket Lab representative on the call confirmed this assessment.)

The recovery ship collected the booster shortly after splashdown and engineers are even now tearing it apart to examine the various parts for wear and damage. “The reentry environments exceed the ascent environments,” Beck explained, meaning that the hardware faces different and more severe conditions in its semi-controlled descent than in the meticulously planned launch.

Although they hope to requalify some components for flight, the engines and a few other parts will not live to launch another day. “It’d be pretty unfair on the engines given the ride they had. It got pretty roasty down there,” Beck said.

Rocket Lab's Return to Sender mission takes off.

Image Credits: Rocket Lab

That’s all part of the plan, though: using data from this descent the first stage’s heat shield and components will be modified and reinforced to better cope with the rigors of reentry. “We’ll do engines in the future,” Beck said. “The goal is to take the whole stage, charge it up, and fly it again.”

Simple to propose, but a complex task in that every component must be checked and recertified. But given this can be done in parallel with the main Electron production line — which Beck said is turning out a launch vehicle every 30 days and getting faster every month — it should lead to a substantial increase to the number of rockets the company has on hand.

The cost impact of recovery, flying recertified hardware, and other aspects of this are still very much in flux, Beck emphasized. “But the majority of the cost of building an Electron is the stage one, so if you can change that, you can change the economics of the vehicle. It would be nice to have it all figured out next year but it’s very possible it won’t be,” he said.

One thing seems certain, though: reusable rockets are clearly the future if cost is a factor at all.

The launch was a great success in another measure as well: Among its numerous deployments was a 3D printed gnome whose ride was paid for by gaming giant Valve Software founder Gabe Newell . He promised to donate a dollar to Starship Children’s Hospital for every view on the launch’s live stream, and that added up to $286,092.

Gnome Chompski, as he’s called, probably burned up by now, but had a brief and exciting life in space, producing some memorable photos.

A 3D printed gnome in space after being launched on a Rocket Lab rocket.

Image Credits: Rocket Lab

24 Nov 2020

Discord is close to closing a round that would value the company at up to $7B

Discord, the communications service that’s become the 21st century’s answer to MUD rooms, is close to closing a new round of financing that would value the company at up to $7 billion, according to sources with knowledge of the round.

The new funding comes just months after a $100 million investment that gave the company a $3.5 billion valuation. Discord’s doubling in corporate value comes as the persistent, inept, American response to the COVID-19 pandemic continues to accelerate the adoption and growth of businesses creating virtual social networking opportunities.

Discord built its initial growth on the back of the gaming industry and the rise of multi-player, multi-platform games that supplanted earlier social networks as the online town square for a generation of young gamers (whose numbers globally now spiral north of several billion).

But, as the company’s founders noted when they announced their last round of financing, the Discord use case has extended far beyond the gaming community.

“It turns out that, for a lot of you, it wasn’t just about video games anymore,” wrote co-founders Jason Citron and Stanislav Vishnevskiy in a July blog post announcing the latest financing.

The two men frame their company as “a place designed to hang out and talk in the comfort of your own communities and friends.” Discord, they say, is “a place to have genuine conversations and spend quality time with people, whether catching up, learning something or sharing ideas.”

If that sounds familiar to some of the internet’s earliest users, that’s because it is. Back in the dawn of the world wide web, multi-user dungeons (MUD) provided ways for practitioners of any number of sub cultures to find each other online and chat about whatever tickled their collective fancy.

As the web evolved, so did the number of places and spaces for these conversations to happen. Now there are multivariate ways for users to find each other within the web, but Discord seems to have risen above most of the rest.

As analyst John Koetsier noted in Forbes back in 2019, there were already 250 million Discord users sending 315 million messages a day. Those are the company’s pre-pandemic numbers — and they’re impressive by any standards.

As with any platform that has become popular on the web, Discord isn’t without its underbelly. Three years ago, the company tried to boot a number of its most racist users, but their ability to use the platform to disseminate hate speech has stubbornly persisted.

Until mid-2019, white nationalists were comfortable enough using the service to warrant a shoutout from Daily Stormer founder, Andrew Anglin, who urged his fellow travelers to stop using the service.

“Discord is always on and always present among these groups on the far-right,” Joan Donovan, the lead researcher on media manipulation at the Data & Society Research Institute, told Slate in 2018. “It’s the place where they do most of the organizing of doxing and harassment campaigns.”

To date, Discord has raised $379.3 million, according to Crunchbase, from an investor group that includes Greylock, Index Ventures, Spark Capital, Tencent and Benchmark.

In addition to the cash it raised earlier this year, Discord emphasized a new user experience and added video functionality so that users could communicate more readily (and so the company could compete with Zoom). There are templates available to help users create servers, and the company has increased its voice and video capacity by 200%.

As part of this new focus on product, Discord has launched what it calls a “Safety Center” that clearly defines the company’s rules and regulations and what actions users can take to monitor and manage their use of service for hate speech and abuse.

“We will continue to take decisive action against white supremacists, racists and others who seek to use Discord for evil,” the founders wrote in June.

As we reported at the time, Index Ventures co-founder Danny Rimer, who led the investor group that backed Discord’s latest $100 million cash infusion, was an advocate for the company’s expanded vision for itself.

“I believe Discord is the future of platforms because it demonstrates how a responsibly curated site can provide a safe space for people with shared interests,” Rimer wrote in a statement. “Rather than throwing raw content at you, like Facebook, it provides a shared experience for you and your friends. We’ll come to appreciate that Discord does for social conversation what Slack has done for professional conversation.”

Apparently, investors are doubling down on that assessment.

 

24 Nov 2020

Instagram businesses and creators may be getting a Messenger-like ‘FAQ’ feature

Instagram is developing a new product, Frequently Asked Questions (FAQ), that will allow people to start conversations with businesses or creators’ accounts by tapping on a commonly asked question within a chat. Those who already have the feature available report they’re able to create set of up to four questions which can optionally be displayed at the beginning of a conversation with other users.

The feature could be useful for businesses that are often responding to customer inquiries about their products or services, or for creators who receive a number of inbound requests from fans or brands interested in collaborations, for example.

The product’s introduction highlights the extent that Instagram’s messaging platform now overlaps with Facebook Messenger, following the recent launch of the new Instagram messaging experience. In September, Facebook announced Instagram users would have the option to upgrade to a new inbox that now offers a number of Messenger-inspired features — like the ability to change your chat color, react with any emoji, set messages to disappear, and more. The upgrade also introduced cross-app communication between Instagram and Messenger’s platforms.

With these changes, it appears Facebook is paving a road towards making the Instagram messaging experience more on par with Messenger.

Today, the Messenger app offers a similar FAQ option for Facebook Page owners under the Automated Responses section in Messenger’s settings. Here, Page owners or admins can set up a series of frequently asked questions and their responses to those questions which can be presented at the beginning of conversations with their Page — just like this new Instagram feature offers.

The Instagram FAQ option had been spotted earlier this year while in development, but seemed to be only for Business accounts, according to the app’s code.

 

However, new reports and screenshots from one Instagram user with access to the feature indicate the FAQ will be available for creator accounts, in addition to businesses.

The feature was spotted on Monday by social media consultant Matt Navarra, who credited @thenezvm for the new discovery.

Given that @thenezvm has access to the feature now, as the above credited screenshots show, the FAQ option could either be in early testing or starting to roll out more broadly.

It’s likely the former, however, as Instagram declined to comment or provide details, when TechCrunch asked for more information.

24 Nov 2020

Dija, a new delivery startup from former Deliveroo employees, is closing in on a $20M round led by Blossom

Dija, a new U.K. based startup founded by senior former Deliveroo employees, is closing in on $20 million funding, TechCrunch has learned.

According to multiple sources, the round, which has yet to close, is being led by Blossom Capital, the early stage venture capital firm founded by ex-Index and LocalGlobe VC Ophelia Brown. It’s not clear who else is in the running, although I understand it was highly contested and and the startup had offers from several top tier funds. Blossom Capital and Dija declined to comment.

Playing in the convenience store and delivery space, yet to launch Dija is founded by Alberto Menolascina and Yusuf Saban, who both spent a number of years at Deliveroo in senior positions.

Menolascina was previously Director of Corporate Strategy and Development at the takeout delivery behemoth and held several positions before that. He also co-founded Everli (formerly Supermercato24), the Instacart-styled grocery delivery company in Italy, and also worked at Just Eat.

Saban is the former Chief of Staff to CEO at Deliveroo and also worked at investment bank Morgan Stanley.

In other words, both are seasoned operators in food logistics, from startups to scales-ups. Both Menolascina and Saban was also instrumental in Deliveroo’s Series D, E, and F funding rounds.

Meanwhile, few details are public about Dija, except that it will offer convenience and fresh food delivery using a “dark” convenience store mode, seeing it build out hyper local fulfilment centers in urban high population areas for super quick delivery. It’s likely akin to Accel and Softbank-backed goPuff in the U.S. or perhaps startup Weezy in the U.K.

That said, the model is yet to be proven everywhere it’s been tried and will likely be a capital intensive race in which Dija is off to a good start. And, of course, with everybody making the shift to online groceries while in a pandemic, as ever, timing is everything.

24 Nov 2020

Splunk acquires network observability service Flowmill

Data platform Splunk continues to make acquisitions as it works to build out its recently launched observability platform. After acquiring Plumbr and Rigor last month, the company today announced that it has acquired Flowmill, a Palo Alto-based network observability startup. Flowmill focuses on helping its users find network performance issues in their cloud infrastructure in real time and measure their traffic by service to help them control cost.

Like so many other companies in this space now, Flowmill utilizes eBPF, the Linux kernel’s relatively new capability to run sandboxed code inside it without having to change the kernel or load kernel modules. That makes it ideal for monitoring applications.

“Observability technology is rapidly increasing in both sophistication and ability to help organizations revolutionize how they monitor their infrastructure and applications. Flowmill’s innovative NPM solution provides real-time observability into network behavior and performance of distributed cloud applications, leveraging extended Berkeley Packet Filter (eBPF) technologies,” said Tim Tully, Splunk’s chief technology officer. “We’re excited to bring Flowmill’s visionary NPM technology into our Observability Suite as Splunk continues to deliver best-in-class observability capabilities to our customers.”

While Spunk has made some larger acquisitions, including its $1.05 billion purchase of SignalFx, it’s building out its observability platform by picking up small startups that offer very specific capabilities. It could probably build all of these features in-house, but the company clearly believes that it has to move fast to get a foothold in this growing market as enterprises look for new observability tools as they modernize their tech stacks.

“Flowmill’s approach to building systems that support full-fidelity, real-time, high-cardinality ingestions and analysis aligns well with Splunk’s vision for observability,” said Flowmill CEO Jonathan Perry. “We’re thrilled to join Splunk and bring eBPF, next-generation NPM to the Splunk Observability Suite.”

The companies didn’t disclose the purchase price, but Flowmill previously raised funding from Amplify, Felicis Ventures, WestWave Capital and UpWest.

24 Nov 2020

Ignore the social media echo chambers

After Election Day, NPR, The Washington Post and various blogs described America as bitterly divided or on the brink of civil war. These were by the same journalists, pundits and intellectuals who only know how to sell fear.

“They want to take away your guns!” and “They want to take your children away!” were their cries, while praising BLM’s protesters on one screen and promoting videos of the infinitesimal number of rioters on another.

The Atlantic speculated about widespread violence depending on the outcome, but I never believed these seemingly well-researched reports that have become commonplace in our clickbait-driven world. And as we saw, nothing of real concern happened; instead of violence, there were relatively small protests and dancing in the streets.
The gap that supposedly divides our nation is narrower than the doomsaying pundits, intellectuals, politicians and cause leaders want you to believe. Why do they want you to believe this? Because promoting division and conflict sells and grants a perverse glue that unites people within their tribal communities. Behind these labels of conflict are seeds of fear that can grow into irrational fears. Fears without reason, fears beyond facts. Sometimes these fears become things we hate  —  and our society and nation should have no place for hate, because it is an unproductive emotion without any possible positive outcome.

I’ve learned to ignore much of the headline-driven news and social media echo chambers where ridiculous ideas fester across our political spectrum. There are obviously ridiculous ideas, such as QAnon, but the subtly ridiculous ideas can be more dangerous and potentially even more destructive. These ideas can be diminished by simple questions to the average reasonable person.
One idea spawned in some progressive echo chambers was the notion that Trump would stage a coup d’état if Joe Biden won the election (i.e., “Did you see those unmarked federal police!?” which signaled to some that a coup was coming).

A basic element of a coup d’état is military support or control, which obviously Trump did not have. I would ask basic questions around this idea, but always ask the rhetorical question, “Do you know how difficult it is to conduct a coup d’état?” Meanwhile, in some conservative echo chambers, a similar concern made rounds that “defund the police” was an effort to install a “federal police force” that Biden would control once in the Oval Office. So there really isn’t much original thought inside the echo chambers of America.

Maybe both sides with such fantasies recently watched that Patrick Swayze classic, “Red Dawn,” where a tiny militia of high school students held off the combined forces of the old Soviet Union and Cuba. Or maybe they saw “300,” in which Sparta’s army held off more than 300,000 invaders. After watching either of these inspirational movies, I might possibly believe such a militia or “federal force” could overpower the whole might of the U.S. military. Ahem.

For those warmongers and soothsayers warning of civil war, where do they want the country to go? Static echo chambers of America, or a vision of suburban folks with pitchforks and handguns versus urban dwellers carrying machine guns and Blue Bottle coffee mugs?

Since the level of violence after the election did not in fact match the crystal balls of these oracles, the definitions and terms have of course changed. As Bertrand Russell stated, “fear is the main source of superstition”  —  to which I would add that fear is also the source of really stupid predictions and ideas.
And let’s be clear that while I do criticize the echo chambers of social media, they are only tools of promotion, because echo chambers are not limited to the online social media. Echo chambers can be homes, bars, lodge meetings, yoga studios and Sunday bridge clubs. The enablers are the pundits, intellectuals, politicians and cause leaders that seed these ideas.

Conspiracy theories, misinformation and outlandish statements were quite capable of spreading before the recommendation engines of Facebook and others were fully developed. For example, in 2006, over 50% of Democrats believed the U.S. government was involved in the 9/11 terrorist attack. More than half of registered Democrats believed in this conspiracy theory! And let’s not forget the Obama “birther” conspiracy, where at least 57% of Republicans continued to believe that President Obama was born in Kenya even after he released his birth certificate in 2008.

But today, Facebook, YouTube, Twitter and other social media sites have become extremely powerful accelerants for such provocative ideas and strange fictions. Tristan Harris, co-founder and president of the Center for Humane Technology, was recently featured in the Netflix documentary “The Social Dilemma,” where he discussed how social media tends to feed content to retain people’s attention and can spiral downward.

This can become an abyss of outright misinformation, or — even more importantly in my estimation — for subtle, ignorant ideas, such as coups d’état and civil wars. And those destructive ideas and irrational conspiracy theories from the 2000s that probably took months to spread, are now supercharged by today’s social media giants to infect our society in a matter of days or weeks.

The fabric of our nation was delicately woven, but after countless turns of the loom between conflicts and enlightenment, our country has proven itself extremely resilient. Indestructible beyond today’s calls for racism and ignorance, for anarchy and destruction, and for civil wars.

Biden is our President-elect with a mandate to lead our nation beyond this divide  —  a divide that I believe has been overstated. Many citizens met in the middle to provide Biden with a mandate to bridge the gap. The “blue wave” didn’t occur and House Republicans gained 10 seats, which means many Republicans and independents voted “red” down-ballot but also voted for Biden.

Trump had the largest number of minority votes for a Republican presidential candidate in history, including from 18% of Black male voters  —  and that number would have been much higher pre-pandemic. I see all of this as a positive, because our citizens are not voting party line or becoming beholden to one party.

In reality, many of the major issues that supposedly separate us are much closer than we know. For example, I’ve sat down behind closed doors with a senior adviser on healthcare for a major Republican leader, who stated that Obamacare isn’t far off from what they were planning. The difference was that their plan was more small business friendly and their cost savings would be among the younger demographic. I also sat down with a senior adviser for Obamacare, who explained that they believed it wasn’t sustainable unless the cost savings were for those 65 and above. So the differences on such critical policies are not miles apart but only steps away from each other. Although at times politics are about credit and conflict, hopefully such differences can be resolved in the near future.

I hope this election will change the temperament of our nation and its citizens. I hope it will lead more people to ignore the tactics of both political parties and organizations seeking their attention and support. Their shortsighted methods should be cast away like the relics of the past and conflict should not be the tool of this new America. Instead, let’s focus on productive dialogue to find common ground, and thoughtful, practical policies to move our nation forward.

24 Nov 2020

Ignore the social media echo chambers

After Election Day, NPR, The Washington Post and various blogs described America as bitterly divided or on the brink of civil war. These were by the same journalists, pundits and intellectuals who only know how to sell fear.

“They want to take away your guns!” and “They want to take your children away!” were their cries, while praising BLM’s protesters on one screen and promoting videos of the infinitesimal number of rioters on another.

The Atlantic speculated about widespread violence depending on the outcome, but I never believed these seemingly well-researched reports that have become commonplace in our clickbait-driven world. And as we saw, nothing of real concern happened; instead of violence, there were relatively small protests and dancing in the streets.
The gap that supposedly divides our nation is narrower than the doomsaying pundits, intellectuals, politicians and cause leaders want you to believe. Why do they want you to believe this? Because promoting division and conflict sells and grants a perverse glue that unites people within their tribal communities. Behind these labels of conflict are seeds of fear that can grow into irrational fears. Fears without reason, fears beyond facts. Sometimes these fears become things we hate  —  and our society and nation should have no place for hate, because it is an unproductive emotion without any possible positive outcome.

I’ve learned to ignore much of the headline-driven news and social media echo chambers where ridiculous ideas fester across our political spectrum. There are obviously ridiculous ideas, such as QAnon, but the subtly ridiculous ideas can be more dangerous and potentially even more destructive. These ideas can be diminished by simple questions to the average reasonable person.
One idea spawned in some progressive echo chambers was the notion that Trump would stage a coup d’état if Joe Biden won the election (i.e., “Did you see those unmarked federal police!?” which signaled to some that a coup was coming).

A basic element of a coup d’état is military support or control, which obviously Trump did not have. I would ask basic questions around this idea, but always ask the rhetorical question, “Do you know how difficult it is to conduct a coup d’état?” Meanwhile, in some conservative echo chambers, a similar concern made rounds that “defund the police” was an effort to install a “federal police force” that Biden would control once in the Oval Office. So there really isn’t much original thought inside the echo chambers of America.

Maybe both sides with such fantasies recently watched that Patrick Swayze classic, “Red Dawn,” where a tiny militia of high school students held off the combined forces of the old Soviet Union and Cuba. Or maybe they saw “300,” in which Sparta’s army held off more than 300,000 invaders. After watching either of these inspirational movies, I might possibly believe such a militia or “federal force” could overpower the whole might of the U.S. military. Ahem.

For those warmongers and soothsayers warning of civil war, where do they want the country to go? Static echo chambers of America, or a vision of suburban folks with pitchforks and handguns versus urban dwellers carrying machine guns and Blue Bottle coffee mugs?

Since the level of violence after the election did not in fact match the crystal balls of these oracles, the definitions and terms have of course changed. As Bertrand Russell stated, “fear is the main source of superstition”  —  to which I would add that fear is also the source of really stupid predictions and ideas.
And let’s be clear that while I do criticize the echo chambers of social media, they are only tools of promotion, because echo chambers are not limited to the online social media. Echo chambers can be homes, bars, lodge meetings, yoga studios and Sunday bridge clubs. The enablers are the pundits, intellectuals, politicians and cause leaders that seed these ideas.

Conspiracy theories, misinformation and outlandish statements were quite capable of spreading before the recommendation engines of Facebook and others were fully developed. For example, in 2006, over 50% of Democrats believed the U.S. government was involved in the 9/11 terrorist attack. More than half of registered Democrats believed in this conspiracy theory! And let’s not forget the Obama “birther” conspiracy, where at least 57% of Republicans continued to believe that President Obama was born in Kenya even after he released his birth certificate in 2008.

But today, Facebook, YouTube, Twitter and other social media sites have become extremely powerful accelerants for such provocative ideas and strange fictions. Tristan Harris, co-founder and president of the Center for Humane Technology, was recently featured in the Netflix documentary “The Social Dilemma,” where he discussed how social media tends to feed content to retain people’s attention and can spiral downward.

This can become an abyss of outright misinformation, or — even more importantly in my estimation — for subtle, ignorant ideas, such as coups d’état and civil wars. And those destructive ideas and irrational conspiracy theories from the 2000s that probably took months to spread, are now supercharged by today’s social media giants to infect our society in a matter of days or weeks.

The fabric of our nation was delicately woven, but after countless turns of the loom between conflicts and enlightenment, our country has proven itself extremely resilient. Indestructible beyond today’s calls for racism and ignorance, for anarchy and destruction, and for civil wars.

Biden is our President-elect with a mandate to lead our nation beyond this divide  —  a divide that I believe has been overstated. Many citizens met in the middle to provide Biden with a mandate to bridge the gap. The “blue wave” didn’t occur and House Republicans gained 10 seats, which means many Republicans and independents voted “red” down-ballot but also voted for Biden.

Trump had the largest number of minority votes for a Republican presidential candidate in history, including from 18% of Black male voters  —  and that number would have been much higher pre-pandemic. I see all of this as a positive, because our citizens are not voting party line or becoming beholden to one party.

In reality, many of the major issues that supposedly separate us are much closer than we know. For example, I’ve sat down behind closed doors with a senior adviser on healthcare for a major Republican leader, who stated that Obamacare isn’t far off from what they were planning. The difference was that their plan was more small business friendly and their cost savings would be among the younger demographic. I also sat down with a senior adviser for Obamacare, who explained that they believed it wasn’t sustainable unless the cost savings were for those 65 and above. So the differences on such critical policies are not miles apart but only steps away from each other. Although at times politics are about credit and conflict, hopefully such differences can be resolved in the near future.

I hope this election will change the temperament of our nation and its citizens. I hope it will lead more people to ignore the tactics of both political parties and organizations seeking their attention and support. Their shortsighted methods should be cast away like the relics of the past and conflict should not be the tool of this new America. Instead, let’s focus on productive dialogue to find common ground, and thoughtful, practical policies to move our nation forward.

24 Nov 2020

Marie Ekeland launches 2050, a new fund with radically ambitious, long-term goals

Marie Ekeland has unveiled her next act — and it’s a new fund called 2050. But it’s not your average French VC fund as it’s going to be an evergreen fund focused on building a better world. It sounds ambitious, but Ekeland isn’t just daydreaming as she has a detailed action plan.

If you’re not familiar with Marie Ekeland, she used to be an investor at French VC firm Elaia. She invested in adtech firm Criteo, which later became a public company in the U.S. She is also one of the founding members of France Digitale, the main startup lobby in France.

More recently, she co-founded Daphni, her own VC firm. While she’s no longer involved with Daphni’s day-to-day activities, she still follows her own investments in Daphni’s first fund. Her investments include Shine, Swile, Holberton School and Lifen.

With 2050, Ekeland is going back to the drawing board with a different vision when it comes to investment thesis, fund structure and the firm’s own values.

“Investment is self-fulfilling,” Ekeland told me. “When you invest in this company instead of that one, you’re shaping the future of society.”

During our lengthy discussion, it became quite clear that Ekeland both suffers from tech fatigue and also still believes she can have a positive impact through her investments.

Let’s start with the investment thesis. 2050 wants to focus on five fundamental areas — the future of food, better healthcare, improving education, shaping a sustainable lifestyle and fostering trust in the media and financial institutions.

As the name suggests, 2050 has a lot of time to think about these issues. The firm is willing to invest over the long haul. But if an entrepreneur wants to sell their company, that’s OK too. The idea is that there shouldn’t be any time frame pressure.

With traditional VC firms, limited partners invest in a fund and expects returns 10 years later. That’s why most VC funds have to sell their positions within eight to 10 years. It could lead to some pressure to go public, get acquired or find other investors to buy back previous investors.

So how do you remove short-term financial pressure from investment firms? 2050 is a fonds de pérennité, which works a bit like a trust fund, a mission-driven fund.

As an evergreen fund, investors in 2050 can invest whenever they want. Regularly, 2050 will open up liquidity distribution windows. It means that existing investors will be able to sell their positions in 2050. New investors will purchase those positions.

“What we’re doing is quite innovative, so we’re learning by doing,” Ekeland said. 2050 is still expecting regulatory approvals from France’s financial regulator AMF. In the meantime, 2050 has already participated in Withings’ latest funding round. Along with Ekeland, Anne-Lise Bance, Aicha Ben Dhia, Charly Berthet, Meyha Camara and Aude Duprat have already joined the team.

2050 also plans to dedicate 10% of investments in the fund and 50% of the team’s carried interest for digital commons. Arguably, this is the most interesting part of 2050. It proves that the team is committed to its vision beyond blog posts.

For instance, 2050 will contribute to Université Paris Dauphine’s class on the ecological challenges of the 21st century. The idea is to share that class as broadly as possible under an open license.

Some key concepts will be turned into actionable items for entrepreneurs. If you browse the business book section of your local bookshop, chances are you’ll see a ton of books about building a startup, growing as fast as possible and not paying attention to structural damage.

By investing in (often underfunded) knowledge, 2050 could share a different kind of actionable items with its portfolio companies and the tech ecosystem at large. Other investments in commons could include infrastructure investments that help everyone, or mutualized research.

Tech isn’t just about building companies. Public institutions, individuals and nonprofit organizations also have a say in the tech ecosystem. And I’m glad to see that 2050 understands that tech investment isn’t just about financing private companies. It’s such an important shift and I hope other investors will follow suit.