Category: UNCATEGORIZED

28 Aug 2020

Apple terminates Epic Games’ App Store account

Epic Games has been removed from Apple’s App Store.

If you’ve already downloaded Fortnite to your Mac or iOS device, it should still work, but Epic’s termination means the Fortnite developer will no longer be able to submit new apps or updates.

MacStories Managing Editor John Voorhees noted the termination on Twitter, as well as the fact that the App Store is currently featuring Fortnite competitor PUBG.

Apple confirmed the move in a statement:

We are disappointed that we have had to terminate the Epic Games account on the App Store. We have worked with the team at Epic Games for many years on their launches and releases. The court recommended that Epic comply with the App Store guidelines while their case moves forward, guidelines they’ve followed for the past decade until they created this situation. Epic has refused. Instead they repeatedly submit Fortnite updates designed to violate the guidelines of the App Store. This is not fair to all other developers on the App Store and is putting customers in the middle of their fight. We hope that we can work together again in the future, but unfortunately that is not possible today.

This is the latest development in the Epic-Apple dispute, which began earlier when the developer introduced support for direct payments in Fortnite, attempting to circumvent the 30% cut that Apple takes on App Store payments. This prompted Apple to boot Fortnite from the App Store, with Epic immediately launching a lawsuit and a publicity campaign that accused Apple of abusing its market power.

Earlier this week, a federal district court judge ordered Apple not to block access to Epic’s Unreal Engine for developers, but she said that Fortnite could stay out of the App Store until it complied with the rules.

Today’s removal should not affect the Unreal Engine, which Epic manages through a separate account.

28 Aug 2020

IFA’s executive director discusses why the tech show must go on

In June, the CTA announced that CES 2021 would go forward in-person. The event was set to have slipped under the wire — having narrowly avoided a COVID-19-related shutdown two years in a row. A month later, however, its organizers reversed course, announcing the January show was going virtual. Disappointing, perhaps, but not surprising.

The past five months have seen one in-person show cancellation after another, from MWC to E3, from WWDC to Computex to our own Disrupt, which is going online-only for the first time. One major consumer electronics trade show, on the other hand, has long planned to buck that trend. On September 3, IFA will kick off in-person in Berlin. Though this year’s event will look dramatically different.

“Usually, we have more than 40 halls serving IFA . This year, at the moment, we have two halls for the press conference with the stages, one exhibition hall, one press center hall and one hall for IFA Next and Shift Mobility,” the organization’s executive director Jens Heithecker explains on the phone from Germany. “We will have around 170-180 exhibitors, compared to 2,300 last year.”

Heithecker doesn’t mask the melancholy in his voice when discussing this year’s version of the show. “To be a little poetic, usually in the late summer, there’s a special air in Berlin and you go out in the morning, you feel this air,” he says. “This year for me, the air’s the same, but whenever I see the halls, the area of our exhibition site, it’s empty, more or less.”

I’ve attended IFA several times over the years, and have always been struck by the organizational chaos. Every tech trade show has some element of this, of course, but IFA opens itself up the public, filling the maze like halls of the Messe Berlin convention center with a peculiar mix of industry professionals and local families with small children. It’s alternately amusing and maddening, depending on how much time you give yourself to get from point A to point B.

This year’s show has been designated IFA 2020 Special Edition. It’s essentially a nice way of noting that the show will be significantly smaller than in years past. Heithecker notes that some 1,100 members of the press have registered for the show, all from a limited invite list. I was on the invite list as well, but, like many, simply opted not to go. Frankly, the idea of flying to German to stand inside an event hall with exhibitors and fellow journalists sounds far less appealing than following along from home.

I’m sure my own sense of safety is colored by my home country’s less-than-ideal handling of the pandemic. But with 24.5 million global cases and 833,000 deaths to date from the virus, there’s still cause for concern, as numbers continue to rise around the globe. Germany has, of course, largely done well in its own handling of the novel coronavirus, but there’s cause for concern even there. With numbers rising, the country has put reopening plans on pause while other European countries like Norway have added German travelers to a quarantine list.

“By end of March, we started to create our statistics on our own, to understand the situation a better way than in the public media only,” says Heithecker. “The rising number in Germany — at least in the northern part of Germany — is created mainly by the double number of tested people. This means the ratio of positively tested people is the same like before. So we will find more people by the situation, the general situation is not going worse in the northern part. We have more tested because the German government is fearing, at the moment, all the people coming back from their holidays in the south, especially, in the south of Europe. That’s the main reason at the moment that we are following so close all the figures every day.”

The nature of the limited guest list means that social distancing will be significantly easier for attendees to practice than they have been in past years, when members of the press have been elbowing small children out of the way in order to get a good show of the latest ASUS gaming laptop. Of course, simply having more space doesn’t necessarily mean that guests will keep to the mask and social distance requirements (1.5 meters) that IFA posts.

“We have so many additional people watching out for our attendees, that they will wear masks, that they will keep the distances,” Heithecker explains. He adds that attendees will be removed from the premises for refusing to adhere to such social safety rules, but that such a move, understandably, is a last resort.

The organization notably pulled the plug on the Global Markets portion of the show, citing “persistent travel restrictions prevent Asian companies from joining the live event.” The event, launched in 2016 for OEMs/ODMs, retailers and distributors, drew a significant portion of exhibitions and attendees from Asian countries. In late June, Samsung announced that it would be pulling out of the show, opting instead for its own Unpacked event just ahead of IFA.

Heithecker believes that Samsung’s decision was based on word from the hardware giant’s U.K. offices. “Two months, three months ago, they couldn’t imagine that any journalist would attend IFA,” he tells TechCrunch. “And even if you told them, ‘Hey, we have all the registrations already, they will come,’ they didn’t believe.”

He adds that he thinks the company is essentially riding the show’s presence to add views, but that Samsung will ultimately regret not directly taking part in the show. “Samsung is doing the press conference in front of this year’s IFA, using the attention we create for the industry, for new products, using the power, the activity of IFA as well, even if they’re not inside our show,” Heithecker says. “We create this and we will bring the proof that whoever is attending or using our new platform, even for online presentations, will see a bigger impact and much more viewers and much more investment than if you do it on your own.”

28 Aug 2020

IFA’s executive director discusses why the tech show must go on

In June, the CTA announced that CES 2021 would go forward in-person. The event was set to have slipped under the wire — having narrowly avoided a COVID-19-related shutdown two years in a row. A month later, however, its organizers reversed course, announcing the January show was going virtual. Disappointing, perhaps, but not surprising.

The past five months have seen one in-person show cancellation after another, from MWC to E3, from WWDC to Computex to our own Disrupt, which is going online-only for the first time. One major consumer electronics trade show, on the other hand, has long planned to buck that trend. On September 3, IFA will kick off in-person in Berlin. Though this year’s event will look dramatically different.

“Usually, we have more than 40 halls serving IFA . This year, at the moment, we have two halls for the press conference with the stages, one exhibition hall, one press center hall and one hall for IFA Next and Shift Mobility,” the organization’s executive director Jens Heithecker explains on the phone from Germany. “We will have around 170-180 exhibitors, compared to 2,300 last year.”

Heithecker doesn’t mask the melancholy in his voice when discussing this year’s version of the show. “To be a little poetic, usually in the late summer, there’s a special air in Berlin and you go out in the morning, you feel this air,” he says. “This year for me, the air’s the same, but whenever I see the halls, the area of our exhibition site, it’s empty, more or less.”

I’ve attended IFA several times over the years, and have always been struck by the organizational chaos. Every tech trade show has some element of this, of course, but IFA opens itself up the public, filling the maze like halls of the Messe Berlin convention center with a peculiar mix of industry professionals and local families with small children. It’s alternately amusing and maddening, depending on how much time you give yourself to get from point A to point B.

This year’s show has been designated IFA 2020 Special Edition. It’s essentially a nice way of noting that the show will be significantly smaller than in years past. Heithecker notes that some 1,100 members of the press have registered for the show, all from a limited invite list. I was on the invite list as well, but, like many, simply opted not to go. Frankly, the idea of flying to German to stand inside an event hall with exhibitors and fellow journalists sounds far less appealing than following along from home.

I’m sure my own sense of safety is colored by my home country’s less-than-ideal handling of the pandemic. But with 24.5 million global cases and 833,000 deaths to date from the virus, there’s still cause for concern, as numbers continue to rise around the globe. Germany has, of course, largely done well in its own handling of the novel coronavirus, but there’s cause for concern even there. With numbers rising, the country has put reopening plans on pause while other European countries like Norway have added German travelers to a quarantine list.

“By end of March, we started to create our statistics on our own, to understand the situation a better way than in the public media only,” says Heithecker. “The rising number in Germany — at least in the northern part of Germany — is created mainly by the double number of tested people. This means the ratio of positively tested people is the same like before. So we will find more people by the situation, the general situation is not going worse in the northern part. We have more tested because the German government is fearing, at the moment, all the people coming back from their holidays in the south, especially, in the south of Europe. That’s the main reason at the moment that we are following so close all the figures every day.”

The nature of the limited guest list means that social distancing will be significantly easier for attendees to practice than they have been in past years, when members of the press have been elbowing small children out of the way in order to get a good show of the latest ASUS gaming laptop. Of course, simply having more space doesn’t necessarily mean that guests will keep to the mask and social distance requirements (1.5 meters) that IFA posts.

“We have so many additional people watching out for our attendees, that they will wear masks, that they will keep the distances,” Heithecker explains. He adds that attendees will be removed from the premises for refusing to adhere to such social safety rules, but that such a move, understandably, is a last resort.

The organization notably pulled the plug on the Global Markets portion of the show, citing “persistent travel restrictions prevent Asian companies from joining the live event.” The event, launched in 2016 for OEMs/ODMs, retailers and distributors, drew a significant portion of exhibitions and attendees from Asian countries. In late June, Samsung announced that it would be pulling out of the show, opting instead for its own Unpacked event just ahead of IFA.

Heithecker believes that Samsung’s decision was based on word from the hardware giant’s U.K. offices. “Two months, three months ago, they couldn’t imagine that any journalist would attend IFA,” he tells TechCrunch. “And even if you told them, ‘Hey, we have all the registrations already, they will come,’ they didn’t believe.”

He adds that he thinks the company is essentially riding the show’s presence to add views, but that Samsung will ultimately regret not directly taking part in the show. “Samsung is doing the press conference in front of this year’s IFA, using the attention we create for the industry, for new products, using the power, the activity of IFA as well, even if they’re not inside our show,” Heithecker says. “We create this and we will bring the proof that whoever is attending or using our new platform, even for online presentations, will see a bigger impact and much more viewers and much more investment than if you do it on your own.”

28 Aug 2020

TikTok’s rivals in India struggle to cash in on its ban

For years, India has served as the largest open battleground for Silicon Valley and Chinese firms searching for their next billion users.

With more than 400 million WhatsApp users, India is already the largest market for the Facebook-owned service. The social juggernaut’s big blue app also reaches more than 300 million users in the country.

Google is estimated to reach just as many users in India, with YouTube closely rivaling WhatsApp for the most popular smartphone app in the country.

Several major giants from China, like Alibaba and Tencent (which a decade ago shut doors for most foreign firms), also count India as their largest overseas market. At its peak, Alibaba’s UC Web gave Google’s Chrome a run for its money. And then there is TikTok, which also identified India as its biggest market outside of China.

Though the aggressive arrival of foreign firms in India helped accelerate the growth of the local ecosystem, their capital and expertise also created a level of competition that made it too challenging for most Indian firms to claim a slice of their home market.

New Delhi’s ban on 59 Chinese apps on June 30 on the basis of cybersecurity concerns has changed a lot of this.

Indian apps that rarely made an appearance in the top 20 have now flooded the charts. But are these skyrocketing download figures translating to sustaining users?

An industry executive leaked the download, monthly active users, weekly active users and daily active users figures from one of the top mobile insight firms. In this Extra Crunch report, we take a look at the changes New Delhi’s ban has enacted on the world’s second largest smartphone market.

TikTok copycats

Scores of startups in India, including news aggregator DailyHunt, on-demand video streamer MX Player and advertising giant InMobi Group, have launched their short-video format apps in recent months.

28 Aug 2020

Steno raises $3.5 million led by First Round to become an extension of law offices

The global legal services industry was worth $849 billion dollars in 2017 and is expected to become a trillion dollar industry by the end of next year. Little wonder that Steno, an L.A.-based startup, wants a piece.

Like most legal services outfits, what it offers are ways for law practices to run more smoothly, including in a world where fewer people are meeting in conference rooms and courthouses and operating instead from disparate locations.

Steno first launched with an offering that centers on court reporting. It lines up court reporters, as well as pays them, removing both potential headaches from lawyers’ to-do lists.

More recently, the startup has added offerings like a remote deposition videoconferencing platform that it insists is not only secure but can manage exhibit handling and other details in ways meant to meet specific legal needs.

It also, very notably, has a lending product that enables lawyers to take depositions without paying until a case is resolved, which can take a year or two. The idea is to free attorneys’ financial resources — including so they can take on other clients — until there’s a payout. But of course the product is also a potentially lucrative one for Steno, as are most lending products.

We talked earlier this week with the company, which just closed on a $3.5 million seed round led by First Round Capital (it has now raised $5 million altogether).

Unsurprisingly, one of its founders is a lawyer named Dylan Ruga who works as a trial attorney at an L.A.-based law group and knows first-hand the biggest pain points for his peers.

More surprising is his cofounder, Gregory Hong, who previously cofounded the restaurant reservation platform Reserve, which was acquired by Resy, which was acquired by American Express. How did Hong make the leap from one industry to a seemingly very different one?

Hong says he might not have gravitated to the idea if not for Ruga, who was Resy’s trademark attorney and who happened to send Hong the pitch behind Steno to get Hong’s advice. He looked it over as a favor, then he asked to get involved. “I just thought, ‘This is a unique and interesting opportunity’ and said, ‘Dylan, let me run this.'”

Today the 19-month-old startup now has 20 full-time employees and another 10 part-time staffers. One major accelerant to the business has been the pandemic, suggests Hong. Turns out tech-enabled legal support services become even more attractive when lawyers and everyone else in the ecosystem is socially distancing.

Hong suggests that Steno’s idea to marry its services with financing is gaining adherents, too, including amid law groups like JML Law and Simon Law Groups, both of which focus largely on personal injury cases.

Indeed, Steno charges — and provides financing — on a per-transaction basis right now, even while its revenue is “somewhat recurring” in that its customers constantly have court cases.

Still, a subscription product is being considered, says Hong. So are other uses for its videoconferencing platform. In the meantime, says Hong, Steno’s tech is “built very well” for legal services, and that’s where it plans to remain focused.

28 Aug 2020

Human Capital: ‘People were afraid of being critical with me’

Welcome back to Human Capital, where we break down the latest in labor, and diversity and inclusion in tech. This week, we’re looking at the launch of the Diversity Riders initiative in venture capital and how it can go further, Instacart’s labor practices and some alternative, more inclusive approaches to running a startup. Also, Y Combinator CEO Michael Seibel recently shared a compelling anecdote about his experience as a Black founder raising money back in 2016.

Justice for Jacob Blake and Breonna Taylor.

 


Stay Woke


Diversity Riders commitment needs to go further

Earlier this week, Act One Ventures launched a new diversity and inclusion initiative called The Diversity Term Sheet Rider for Representation at the Cap Table. The purpose of the Diversity Rider is to increase the number of Black and other underrepresented investors in deals by making them co-investors. 

Already, firms like Greycroft Partners, First Round Capital, Maveron, Fifth Wall, Plexo Capital and Precursor Ventures have committed to it. What that means is firms will include boilerplate language in their standard term sheets:

In order to advance diversity efforts in the venture capital industry, the Company and the lead investor, [Fund Name], will make commercial best efforts to offer and make every attempt to include as a co-investor in the financing at least one Black [or other underrepresented group including, but not limited to LatinX, women, LGBTQ+] check writer (DCWs), and to allocate a minimum of [X]% or [X] $’s of the total round for such co-investor.

This is certainly a good step on the road to creating additional wealth opportunities for Black, Latinx and Indigenous people, as well folks from other underrepresented groups in tech. However, a stronger step would be to remove the parts about “best efforts” and “make every attempt” because, as it’s currently written, the commitment hedges on rather subjective conditions. Instead, the following would be better:

In order to advance diversity efforts in the venture capital industry, the Company and the lead investor, [Fund Name], will make commercial best efforts to offer and make every attempt to include as a co-investor in the financing at least one Black [or other underrepresented group including, but not limited to LatinX, women, LGBTQ+] check writer (DCWs), and to allocate a minimum of [X]% or [X] $’s of the total round for such co-investor.

Y Combinator CEO Michael Seibel on raising funding as a Black founder

At All Raise’s second annual event for Black female founders, When Founder Met Funder, Planet FWD CEO Julia Collins interviewed YC CEO Michael Seibel about his experience in tech and tips for founders. 

“When I started doing startups, it was 2006 and there weren’t many people who looked like any of us that were doing startups,” he told the audience. “I think what you would’ve expected was overt discrimination but actually I got something else, which was no feedback.”

He went on to say that people were afraid to be critical of him, for fear of being perceived a certain way. 

“People were afraid of being critical with me,” he said. 

That’s partly why Seibel says he’s become the type of person who will tell founders what everyone is thinking. 

“Agree with it or disagree with it, I want you to have a good mental model of what people are thinking and not saying,” Seibel said. 


Gig Work


Instacart is under fire again 

Instacart shoppers, via Gig Workers Collective, made their voices heard again this week. In light of the wildfires and other anticipated climate change-related disasters, Instacart workers want the company to provide disaster pay at a daily rate equal to the average rate of daily pay, including tips, over the previous 30 days for each day Instacart’s operations are shutdown. Additionally, GWC wants Instacart to shut down its operations in markets where a city has declared a state of emergency or issued evacuations.

The demands came shortly after Instacart agreed to distribute $727,985 among some San Francisco-based Instacart workers as part of a settlement pertaining to health care and paid sick leave benefits.

Meanwhile, Instacart is also facing a new lawsuit from DC’s attorney general over its “deceptive” service fees. The suit seeks restitution for consumers who paid those service fees, as well as back taxes and interest on taxes owed to D.C.


Alt VC


Tech cooperatives have the potential to upset wealth inequality 

We began exploring earlier in the year the case for cooperative startups, where workers and users have the opportunity to gain true ownership and control in a company, and where any profits that are generated are returned to the members or reinvested in the company.

The way many tech companies are built today don’t need to be that way. Start.coop, a tech accelerator for cooperatives, is trying to help build this new future. This week, Start.coop, received a $150,000 commitment to help fund two new classes of startups per year. Start.coop invests $15,000 in each startup and all graduates become shareholders in Start.coop, which is a cooperative itself that distributes ownership among workers, investors, advisors and startups that go through the accelerator.

Start.coop founder Greg Brodsky previously told me:

Technology has disrupted almost every part of the economy. It’s disrupted the gig economy, gaming, shopping and how to book hotels. But the one thing that the technology sector has not been willing to touch is ownership itself. That is, who gets rich and who benefits from the growth of these companies. That really hasn’t changed. In some ways, the tech sector is just recreating the wealth inequality in every other part of the economy.

There’s more to an exit than IPOs and acquisitions 

Meanwhile, the folks behind the Exit to Community movement are gearing up to release a zine outlining startup paths to outcomes other than IPOs and acquisitions. E2C is a working project that explores ways to help startups transition investor-owned to community ownership, which could include users, customers, workers or some combination of all stakeholders. 

“The purpose of the zine is to provide an initial roadmap to all of the aspects of the conversation that need to happen so we can save founders pain in recognizing and validating they’re in the wrong fit and we need to co-create what does fit,” Zebras Unite co-founder and zine co-author Mara Zepeda told TechCrunch. “It’s not a silver bullet. It’s not like there’s this other perfect thing that everyone needs to do. I describe it as running a Cambrian explosion of experiments in order to figure out what this future is. It’s not just one thing. That’s how what we’re doing is really different. Sometimes there are these niche products or movements that pop up and say, “this is the answer. There isn’t one answer for this moment.” 

Be on the lookout for a deeper-dive into this next week. For now, here’s some additional reading on the topic.


Don’t miss


28 Aug 2020

Watch Elon Musk’s Neuralink brain computer interface progress update live

Elon Musk is set to deliver a progress update for Neuralink, the company and technology he founded that aims to create a direct, ultra-low latency connection between our brains and our computers. The update will kick off at 3 PM PT (6 PM ET), and will be streamed live above.

Based on Musk’s tweets, what we should see is an actual product demo of a Neuralink device in action. The multi-CEO has said that it will be a version 2 of the robot that Neuralink revealed last year during a similar update. That robot is a surgical automated platform that’s designed to perform the highly precise brain surgery that implants the internal part of Neuralink’s tech, which will ultimately communicate wireless with a receiver on the outside of the skull that can then transmit thought-based input to computers – if development reaches its lofty goals.

Musk has tempered expectations somewhat – what we’ll see is still very much an “experimental medical device for use only in patients with extreme medical problems,” and not the ultimate vision of an interface designed for general consumer user that he hopes to someday achieve. But expectations are still high, given that last year, the company had embarked on animal testing, and was talking about potentially entering human testing within the next 12 months.

28 Aug 2020

Banks aren’t as stupid as enterprise AI and fintech entrepreneurs think

Announcements like Selina Finance’s $53 million raise and another $64.7 million raise the next day for a different banking startup spark enterprise artificial intelligence and fintech evangelists to rejoin the debate over how banks are stupid and need help or competition.

The complaint is banks are seemingly too slow to adopt fintech’s bright ideas. They don’t seem to grasp where the industry is headed. Some technologists, tired of marketing their wares to banks, have instead decided to go ahead and launch their own challenger banks.

But old-school financiers aren’t dumb. Most know the “buy versus build” choice in fintech is a false choice. The right question is almost never whether to buy software or build it internally. Instead, banks have often worked to walk the difficult but smarter path right down the middle — and that’s accelerating.

Two reasons why banks are smarter

That’s not to say banks haven’t made horrendous mistakes. Critics complain about banks spending billions trying to be software companies, creating huge IT businesses with huge redundancies in cost and longevity challenges, and investing into ineffectual innovation and “intrapreneurial” endeavors. But overall, banks know their business way better than the entrepreneurial markets that seek to influence them.

First, banks have something most technologists don’t have enough of: Banks have domain expertise. Technologists tend to discount the exchange value of domain knowledge. And that’s a mistake. So much abstract technology, without critical discussion, deep product management alignment and crisp, clear and business-usefulness, makes too much technology abstract from the material value it seeks to create.

Second, banks are not reluctant to buy because they don’t value enterprise artificial intelligence and other fintech. They’re reluctant because they value it too much. They know enterprise AI gives a competitive edge, so why should they get it from the same platform everyone else is attached to, drawing from the same data lake?

Competitiveness, differentiation, alpha, risk transparency and operational productivity will be defined by how highly productive, high-performance cognitive tools are deployed at scale in the incredibly near future. The combination of NLP, ML, AI and cloud will accelerate competitive ideation in order of magnitude. The question is, how do you own the key elements of competitiveness? It’s a tough question for many enterprises to answer.

If they get it right, banks can obtain the true value of their domain expertise and develop a differentiated edge where they don’t just float along with every other bank on someone’s platform. They can define the future of their industry and keep the value. AI is a force multiplier for business knowledge and creativity. If you don’t know your business well, you’re wasting your money. Same goes for the entrepreneur. If you can’t make your portfolio absolutely business relevant, you end up being a consulting business pretending to be a product innovator.

Who’s afraid of who?

So are banks at best cautious, and at worst afraid? They don’t want to invest in the next big thing only to have it flop. They can’t distinguish what’s real from hype in the fintech space. And that’s understandable. After all, they have spent a fortune on AI. Or have they?

It seems they have spent a fortune on stuff called AI — internal projects with not a snowball’s chance in hell to scale to the volume and concurrency demands of the firm. Or they have become enmeshed in huge consulting projects staggering toward some lofty objective that everyone knows deep down is not possible.

This perceived trepidation may or may not be good for banking, but it certainly has helped foster the new industry of the challenger bank.

Challenger banks are widely accepted to have come around because traditional banks are too stuck in the past to adopt their new ideas. Investors too easily agree. In recent weeks, American challenger banks Chime unveiled a credit card, U.S.-based Point launched and German challenger bank Vivid launched with the help of Solarisbank, a fintech company.

What’s going on behind the curtain

Traditional banks are spending resources on hiring data scientists too — sometimes in numbers that dwarf the challenger bankers. Legacy bankers want to listen to their data scientists on questions and challenges rather than pay more for an external fintech vendor to answer or solve them.

This arguably is the smart play. Traditional bankers are asking themselves why should they pay for fintech services that they can’t 100% own, or how can they buy the right bits, and retain the parts that amount to a competitive edge? They don’t want that competitive edge floating around in a data lake somewhere.

From banks’ perspective, it’s better to “fintech” internally or else there’s no competitive advantage; the business case is always compelling. The problem is a bank is not designed to stimulate creativity in design. JPMC’s COIN project is a rare and fantastically successful project. Though, this is an example of a super alignment between creative fintech and the bank being able to articulate a clear, crisp business problem — a Product Requirements Document for want of a better term. Most internal development is playing games with open source, with the shine of the alchemy wearing off as budgets are looked at hard in respect to return on investment.

A lot of people are going to talk about setting new standards in the coming years as banks onboard these services and buy new companies. Ultimately, fintech firms and banks are going to join together and make the new standard as new options in banking proliferate.

Don’t incur too much technical debt

So, there’s a danger to spending too much time learning how to do it yourself and missing the boat as everyone else moves ahead.

Engineers will tell you that untutored management can fail to steer a consistent course. The result is an accumulation of technical debt as development-level requirements keep zigzagging. Laying too much pressure on your data scientists and engineers can also lead to technical debt piling up faster. A bug or an inefficiency is left in place. New features are built as workarounds.

This is one reason why in-house-built software has a reputation for not scaling. The same problem shows up in consultant-developed software. Old problems in the system hide underneath new ones and the cracks begin to show in the new applications built on top of low-quality code.

So how to fix this? What’s the right model?

It’s a bit of a dull answer, but success comes from humility. It needs an understanding that big problems are solved with creative teams, each understanding what they bring, each being respected as equals and managed in a completely clear articulation on what needs to be solved and what success looks like.

Throw in some Stalinist project management and your probability of success goes up an order of magnitude. So, the successes of the future will see banks having fewer but way more trusted fintech partners that jointly value the intellectual property they are creating. They’ll have to respect that neither can succeed without the other. It’s a tough code to crack. But without it, banks are in trouble, and so are the entrepreneurs that seek to work with them.

28 Aug 2020

Boeing and NASA target December for second try at uncrewed orbital demonstration flight

NASA and Boeing have provided some updates around their Commercial Crew plans, which aim to get Boeing’s CST-100 spacecraft certified for regular human flight. The CST-100 and Boeing’s Commercial Crew aspirations hit a snag last year with a first attempt an an uncrewed orbital flight test, which did not go to plan thanks to a couple of software errors that led to an early mission ending, and a failure to reach the International Space Station as intended.

In a blog post on Friday, NASA said that it and partner Boeing were aiming to fly the re-do of that uncrewed test no earlier than December 2020. This will involve flying the fully reusable Starliner CST-100 without anyone on board, in a live, fully automated simulation of how a launch with crew would go, including a rendez-vous and docking with the ISS on orbit, and a return trip and controlled landing and capsule recovery.

During the original OFT last December, the spacecraft took off from Cape Canaveral in Florida atop a United Launch Alliance (ULA) Atlas V as planned, but encountered an issue with its onboard mission timer shortly after disengaging from the launch vehicle. That caused it to misfire its thrusters and expend fuel, and a communication error meant that NASA was not able to correct the issue until it had used too much fuel to allow it to continue to the Space Station as planned. The capsule did safely return to Earth, however, and provided valuable test data on the way.

NASA and Boeing subsequently undertook a comprehensive review of Boeing’s software development program, as well as the agency’s own practices surrounding the public-private partnership, and determined a number of corrective actions. That review ended in July, and the partners have now been working to get back to a second demonstration flight.

Boeing has a lot riding on this re-do, since NASA’s other partner in the Commercial Crew program, SpaceX, is now at least a year ahead in terms of its qualification program. SpaceX recently successfully completed its first crewed demonstration mission of its Dragon spacecraft, and could launch its first operational astronaut mission to the International Space Station as early as October.

Provided OFT-2 goes as intended for Boeing, Starliner could be ferrying its first passengers for a crewed demonstration launch as early as June 2021, with plans for a first operational mission now set for December 2021. All these dates or subject to change, of course.

28 Aug 2020

Boeing and NASA target December for second try at uncrewed orbital demonstration flight

NASA and Boeing have provided some updates around their Commercial Crew plans, which aim to get Boeing’s CST-100 spacecraft certified for regular human flight. The CST-100 and Boeing’s Commercial Crew aspirations hit a snag last year with a first attempt an an uncrewed orbital flight test, which did not go to plan thanks to a couple of software errors that led to an early mission ending, and a failure to reach the International Space Station as intended.

In a blog post on Friday, NASA said that it and partner Boeing were aiming to fly the re-do of that uncrewed test no earlier than December 2020. This will involve flying the fully reusable Starliner CST-100 without anyone on board, in a live, fully automated simulation of how a launch with crew would go, including a rendez-vous and docking with the ISS on orbit, and a return trip and controlled landing and capsule recovery.

During the original OFT last December, the spacecraft took off from Cape Canaveral in Florida atop a United Launch Alliance (ULA) Atlas V as planned, but encountered an issue with its onboard mission timer shortly after disengaging from the launch vehicle. That caused it to misfire its thrusters and expend fuel, and a communication error meant that NASA was not able to correct the issue until it had used too much fuel to allow it to continue to the Space Station as planned. The capsule did safely return to Earth, however, and provided valuable test data on the way.

NASA and Boeing subsequently undertook a comprehensive review of Boeing’s software development program, as well as the agency’s own practices surrounding the public-private partnership, and determined a number of corrective actions. That review ended in July, and the partners have now been working to get back to a second demonstration flight.

Boeing has a lot riding on this re-do, since NASA’s other partner in the Commercial Crew program, SpaceX, is now at least a year ahead in terms of its qualification program. SpaceX recently successfully completed its first crewed demonstration mission of its Dragon spacecraft, and could launch its first operational astronaut mission to the International Space Station as early as October.

Provided OFT-2 goes as intended for Boeing, Starliner could be ferrying its first passengers for a crewed demonstration launch as early as June 2021, with plans for a first operational mission now set for December 2021. All these dates or subject to change, of course.