Category: UNCATEGORIZED

11 Mar 2020

YouNeedABudget founder Jesse Mecham on managing a remote 115-person team

YouNeedABudget (or YNAB, as it’s known) started as a spreadsheet built by a college student who was looking to cover his rent.

A decade and a half later, it has grown into a full-fledged budgeting tool with apps across a number of platforms, a deeply devoted user base and hundreds of employees — all operating 100% remotely.

I spoke to YNAB co-founder Jesse Mecham about how it all works; why they’re remote, how they bring everyone together (both virtually and in the real world) and the pros and cons of being spread across the globe.

Here’s the transcript of our chat, lightly edited for brevity and clarity.

TechCrunch: Let’s set the scene a little bit. It’s 2004, you’re starting what would eventually become YNAB. Why?

Jesse Mecham: I needed to make rent. That’s the honest truth.

We were going to have a baby, and my wife was going to stop working so she could do the mom thing full-time. I was trying to figure out how I could not borrow money and not stop going to school, and I figured I could sell this little spreadsheet I had built. That was back before, you know, phone apps and all that — so I just got started on that, selling a little spreadsheet to make some side money to get us through school without having to borrow any.

When it was time to grow, what made you hire remote?

11 Mar 2020

YouTube will now allow creators to monetize videos about coronavirus and COVID-19

YouTube today announced a change in policy regarding the novel coronavirus or COVID-19. Previously, YouTube’s advertising guidelines prevented monetization of videos that included more than a passing mention of the coronavirus as part of its “sensitive events” policy. The policy is meant to protect advertisers from being associated with videos about things like mass shootings, terrorist acts, armed conflicts, and global health crises — like the coronavirus. Now, YouTube is changing this policy to allow some creators to monetize videos on the topic, it says.

The creator community was unhappy with YouTube’s decision to demonetize any video featuring discussions of the coronavirus. (Though, to be fair, YouTube creators are generally unhappy when YouTube demonetizes any of their videos.)

But by not allowing creators to profit from videos about the coronavirus or COVID-19, YouTube was putting a damper on informative, newsworthy videos as well as those capitalizing on the human tragedy and people’s fears about the emerging pandemic. The ban on monetization also meant that news organizations covering the topic responsibly wouldn’t be able to generate revenue from their videos, even as coronavirus news became one of their main coverage areas.

Today, YouTube CEO Susan Wojcicki explained the company’s decision to re-open monetization on videos referencing the health crisis.

She says that the sensitive events policy was designed to apply to short-term events of a significant magnitude, like a natural disaster.

“It’s becoming clear this issue is now an ongoing and important part of everyday conversation,” Wojcicki said, in reference to the coronavirus, “And we want to make sure news organizations and creators can continue producing quality videos in a sustainable way,” she added.

Not all video creators will be eligible to monetize their coronavirus videos, she notes.

Instead, YouTube says ads will be enabled on “a limited number of channels” including those belonging to news partners and creators “who accurately self-certify.” The latter is a more questionable choice, as it opens up monetization to any creator using YouTube’s self-labeling system, not just news organizations or trusted health authorities.

The Self Certification system is one where creators use an online dashboard to tell YouTube whether or not their videos comply with advertiser guidelines ahead of YouTube’s automated review of their content. Over time, YouTube will rely on creators’ input instead of its own systems if the creators have a history of accurate self-certifications. It’s an honor system, essentially, followed by an official check. 

The system doesn’t prevent creators from publishing misinformation in their videos, then labeling the video as advertiser-friendly. In addition, many creators believe that the bogus information they’re sharing is correct and true, so a self-certification system wouldn’t stop them from publishing their misleading and often dangerous advice. Already, YouTube has to work to quickly remove videos like that. This includes videos discouraging people from seeking medical treatment or making dangerous claims — like how garlic or bleach can prevent the viral disease, for example.

To fight misinformation, YouTube is also raising authoritative sources in its search results and recommendations and is showing information panels on which videos are flagged.

Despite these efforts, there continues to be a massive amount of misinformation circulating across social media, including on sites like Facebook and Twitter, in addition to YouTube. WHO Director-General Dr. Tedros Adhanom Ghebreyesus even referred to the crisis as not just an epidemic, but “an infodemic.” (WHO today has upgraded the COVID-19 viral disease a pandemic, as well.)

In light of the misinformation problem, YouTube’s decision to open up monetization on videos about the coronavirus will be a controversial choice. In doing so, it signals to the creator community that one the most-searched topics on the internet can now be leveraged for views and ad dollars. That invites exploitation.

 

 

11 Mar 2020

Experts say Space Force is a vital, massive shift for US military

Despite the many jokes made at the expense of the first new U.S. military branch in nearly 80 years, industry experts say the Space Force represents a massive — and strategically significant — shift for America’s defense.

Many of modern life’s conveniences depend on the ability to consistently and securely access information provided by thousands of satellites currently orbiting the earth. That ability is now clearly threatened, according to experts from companies like Virgin Galactic, The Aerospace Corporation, NASA’s Jet Propulsion Laboratory, the defense contractor L3Harris and space-focused investment firm Starburst Aerospace.

In a panel discussion earlier this year organized by the Los Angeles Economic Development Council in a nondescript office park in El Segundo — just a few miles away from the Space and Missile Systems Center located at Los Angeles Air Force Base — these experts laid out a case for the importance of the Space Force and the potential it has to reshape both the military and whole industries in states across the country.

Los Angeles, these men said, could potentially be at the heart of this transformation.

11 Mar 2020

Experts say Space Force is a vital, massive shift for US military

Despite the many jokes made at the expense of the first new U.S. military branch in nearly 80 years, industry experts say the Space Force represents a massive — and strategically significant — shift for America’s defense.

Many of modern life’s conveniences depend on the ability to consistently and securely access information provided by thousands of satellites currently orbiting the earth. That ability is now clearly threatened, according to experts from companies like Virgin Galactic, The Aerospace Corporation, NASA’s Jet Propulsion Laboratory, the defense contractor L3Harris and space-focused investment firm Starburst Aerospace.

In a panel discussion earlier this year organized by the Los Angeles Economic Development Council in a nondescript office park in El Segundo — just a few miles away from the Space and Missile Systems Center located at Los Angeles Air Force Base — these experts laid out a case for the importance of the Space Force and the potential it has to reshape both the military and whole industries in states across the country.

Los Angeles, these men said, could potentially be at the heart of this transformation.

11 Mar 2020

Blockchain (the company) lets you borrow USD PAX against collateral

What do you do when you’re rich in cryptocurrencies but you don’t want to sell your positions? The company named Blockchain thinks it has found a solution. It lets you borrow money against cryptocurrencies held in your Blockchain wallet.

As soon as you lock cryptocurrencies in your wallet, you receive USD PAX, a stablecoin that is pegged against USD. You can then convert, send and do whatever you want with your stablecoins. You can pay back your loan whenever you want.

The minimum loan size is $1,000 and Blockchain requires a collateralization ratio of 200%. It means that if you want to borrow $5,000, you need to put down the equivalent of $10,000 in cryptocurrencies as collateral.

Blockchain charges interest on loans. Your interest rate may vary but the company tries to be transparent about it before you accept the loan. By default, Blockchain uses your collateral to collect interest. Be careful with the value of your cryptocurrencies, as your collateral could end up losing a ton of value even though you still owe USD.

Behind the scene, Blockchain is running a lending desk for institutional investors. The company launched this feature back in August. Blockchain thinks that it has built a strong liquidity pool that it can leverage with retail investors.

Users in the U.S., Canada and the U.K. are not eligible to the feature for now. Blockchain only accepts collateral in BTC for now.

11 Mar 2020

Blockchain (the company) lets you borrow USD PAX against collateral

What do you do when you’re rich in cryptocurrencies but you don’t want to sell your positions? The company named Blockchain thinks it has found a solution. It lets you borrow money against cryptocurrencies held in your Blockchain wallet.

As soon as you lock cryptocurrencies in your wallet, you receive USD PAX, a stablecoin that is pegged against USD. You can then convert, send and do whatever you want with your stablecoins. You can pay back your loan whenever you want.

The minimum loan size is $1,000 and Blockchain requires a collateralization ratio of 200%. It means that if you want to borrow $5,000, you need to put down the equivalent of $10,000 in cryptocurrencies as collateral.

Blockchain charges interest on loans. Your interest rate may vary but the company tries to be transparent about it before you accept the loan. By default, Blockchain uses your collateral to collect interest. Be careful with the value of your cryptocurrencies, as your collateral could end up losing a ton of value even though you still owe USD.

Behind the scene, Blockchain is running a lending desk for institutional investors. The company launched this feature back in August. Blockchain thinks that it has built a strong liquidity pool that it can leverage with retail investors.

Users in the U.S., Canada and the U.K. are not eligible to the feature for now. Blockchain only accepts collateral in BTC for now.

11 Mar 2020

India used facial recognition tech to identify 1,100 individuals at a recent riot

Law enforcement agencies in India used facial recognition to identify more than 1,100 individuals who took part in communal violence in the national capital last month, a top minister said in the lower house of the parliament on Wednesday.

In what is the first admission of its kind in the country, Amit Shah, India’s home minister, said the law enforcement agencies deployed a facial recognition system, and fed it with images from government-issued identity cards, including 12-digit Aadhaar that has been issued to more than a billion Indians and driving licenses, “among other databases,” to identify alleged culprits in the communal violence in northeast Delhi on February 25 and 26.

“This is a software. It does not see faith. It does not see clothes. It only sees the face and through the face the person is caught,” said Shah, responding to an individual who had urged New Delhi to not drag innocent people into the facial surveillance.

The admission further demonstrates how the Indian government has rushed to deploy facial recognition technology in the absence of regulation overseeing its usage. Critics have urged the government to hold consultations and formulate a law before deploying the technology.

“The use of Aadhaar for this purpose without any judicial authorisation violates the judgement of the Supreme Court in KS Puttaswamy v. UoI (2019),” said New Delhi-based digital rights advocacy group Internet Freedom Foundation, which also questioned the sophistication of the facial recognition system.

The facial recognition system that the government used in Delhi was first acquired by the Delhi Police to identify missing children. In 2019, the system had an accuracy rate of 1% and it even failed to distinguish between boys and girls, the group said.

“All of this is being done without any clear underlying legal authority and is in clear violation of the Right to Privacy judgment (that the Indian apex court upheld in 2017),” said Apar Gupta, executive director at IFF. “Facial recognition technology is still evolving and the risks of such evolutionary tech being used in policing are significant,” said Gupta.

Several law enforcement agencies have been using facial recognition for years now. In January and early February, police in New Delhi and the northern state of Uttar Pradesh used the technology during protests against a new citizenship law that critics say marginalises Muslims.

11 Mar 2020

Alma is a Klarna-like payment startup that lets you buy now and pay later

Meet Alma, a French startup that helps you offer a new payment option for your expensive goods. Like Klarna, clients can choose to pay over 3 or 4 installments. But the comparison stops here as Klarna isn’t available in France. Alma just raised a $14.1 million (€12.5 million) funding round.

Idinvest, ISAI and Picus Capital are investing in today’s funding round. Additionally, Alma has opened a $19.2 million (€17 million) credit line to finance merchant payments.

As a merchant, when you integrate Alma in your payment flow, your customers can choose Alma to make it less intimidating. Instead of getting charged when you pay, you can choose to buy now and pay over three or four installments. Merchants get paid instantly.

“We handle risk and cash advance in house,” co-founder and CEO Louis Chatriot told me. “When it comes to the risk of non-payment, we have implemented a series of verifications, filters and algorithms in order to detect fraud and high-risk profiles.”

The company creates multiple categories depending on your profile. It can ask for more information if Alma has some doubts, such as API access to your bank statement. Assessing risk is particularly difficult in France as there’s no central credit scoring system.

Merchants can choose to pay the processing fees in full — 3.8% of the transaction for a payment in 3 intallments, 4.2% for a payment in 4 installments. But they can also share the processing fees with the end customer.

Alma is compatible with most e-commerce platforms, such as Shopify, Magento and Prestashop. Merchants can also offer Alma as a payment option in retail stores as well.

Over 1,000 merchants are using Alma already — the startup processes tens of millions of euros of transactions per year. Clients include Bobbies, Asphalte, Cowboy, Weebot, The Cool Republic and The Socialite Family.

With today’s funding round, the company wants to attract more merchants and launch two new payment options — pay later and a more traditional option to pay now. In addition to that, Alma currently redirects customers to its own checkout page. The startup wants to integrate its payment widget directly on e-commerce websites.

11 Mar 2020

Daily Crunch: Tesla considers Nashville for its Cybertruck factory

Tesla plans its next massive “gigafactory,” Google steps up efforts against COVID-19 and NEA raises a $3.6 billion fund. Here’s your Daily Crunch for March 11, 2020.

1. Tesla is eyeing Nashville for Cybertruck gigafactory

Tesla CEO Elon Musk tweeted Tuesday evening that the company is “scouting” locations to build a new U.S. “gigafactory” that will produce the Cybertruck and Model Y crossover. Musk didn’t provide further information in the tweets, but a source told TechCrunch that Nashville is on a short list of contenders.

Tesla broke ground on its first gigafactory on land near Reno, Nev. in 2014, creating a massive, 1.9 million-square-foot structure.

2. Google expands work from home recommendation to all North American employees, establishes ‘COVID-19 fund’

Last week, Google sent out a memo to staff recommending that Washington State-based employees work remotely, in order to mitigate the potential spread of COVID-19. Yesterday, the suggestion was dramatically expanded, in line with the spread of the virus. A new note from the company recommends similar action for employees across North America.

3. NEA, venture capital’s quiet giant, closes on $3.6 billion

Unlike some firms, the partnership at NEA hasn’t really focused on star-making. For the last several years the fund has been run by Scott Sandell, who has been with the firm since 1996 (his last tweet was in 2010).

4. Now streaming on Hotstar in India: Disney+

Disney+ has arrived in India weeks ahead of its scheduled launch date. The American giant revamped the Hotstar app and populated the on-demand video streaming service with the Disney+ original catalog on Wednesday morning.

5. Why so many robotic startups fail, and what can be done about it

Citing a handful of high-profile examples like Rethink, Anki, Jibo and CyPhy Works, Brian Heater put the question to panelists at last week’s TC Sessions: Robotics + AI event: Even with a lot of funding and plenty of smart people on board, why do so many robotic startups fail? (Extra Crunch membership required.)

6. SpotOn taps $50M to take on Square and more in payments and financial services for SMBs

SpotOn provides point-of-sale payment solutions, alongside a number of related tools such as marketing, appointment booking and loyalty services. In the last 12 months the startup says that it has grown revenues by 150%.

7. Quibi and Eko are in a legal battle over video tech

The Wall Street Journal broke the news that interactive video company Eko is accusing Quibi of infringing on its patented technology. Meanwhile, The Hollywood Reporter noted that Quibi (which is launching its short-form mobile video service next month) has filed a complaint in California federal court claiming that Eko has engaged in “a campaign of threats and harassment.”

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

11 Mar 2020

VisualOne smartens up home security cameras with object and action recognition

“Smart” cameras are to be found in millions of homes, but the truth is they’re not all that smart. Facial recognition and motion detection are their main tricks… but what if you want to know if the dog jumped on the couch, or if your toddler is playing with the stove? VisualOne equips cameras with the intellect to understand a bit more of the world and give you more granular — and important — information.

Founder Mohammad Rafiee said that the idea came to him after he got a puppy (Zula) and was dissatisfied with the options he had for monitoring her activities while he was away. Here she is doing what dogs do best:

There are no bad dogs, but chairs are for people.

“There were specific things I wanted to know were happening, like I wanted to check if the dog got picked up by the dog walker. The cameras’ motion detection is useless — she’s always moving,” he lamented. “In fact, with a lot of these cameras, just a change in the lighting or wind or rain can trigger the motion alert, so it’s completely impractical.”

“My background is in machine learning. I was thinking about it, and realized we’re at a stage where this problem is starting to become solvable,” he continued.

Some tasks in computer vision, indeed, are as good as solved — detecting faces and common objects such as cars and bikes can be done quickly and efficiently. But that’s not always useful — what’s the point of knowing someone rode their bike past your house? In order for this to have value, the objects need to be understood as part of a greater context, and that’s what Rafiee and VisualOne are undertaking.

Unfortunately, it’s far from easy — or else everyone would be doing it already. Identifying a cat is simple, and identifying a table is simple, but identifying a cat on a table is surprisingly hard.

“It’s a very difficult problem. So we’re breaking it down to things we can solve right now, then building on that,” Rafiee explained. “With deep learning techniques we can identify different objects, and we build models on top of those to specify different interactions, or specific objects being in specific locations. Like a car in the wrong spot, or a dog getting on a couch. We can recognize that with high accuracy right now — we have a list of supported objects and models that we’re expanding.”

In case you’re not convinced that the capabilities are that much advanced from the usual “activity in the living room” or “Kendra is at the front door” notifications, here are a few situations that VisualOne is set up to detect:

  • Kid playing with the stove
  • Toddler climbing furniture
  • Kid holding a knife
  • Baby left alone for too long
  • Raccoon getting into garbage
  • Elderly person taking her medications
  • Elderly person in bed for too long
  • Car parked in the wrong spot
  • Garage door left open
  • Dog chewing on a shoe
  • Cat scratching the furniture

The process for creating these triggers is pretty straightforward.

If one of those doesn’t make you think “actually… that would be really good to know” then perhaps a basic security camera is enough for your purposes after all. Not everyone has a knife-curious toddler. But those of you who do are probably scrolling furiously past this paragraph looking for where to buy one of these things.

Unfortunately VisualOne isn’t something you can just install on any old existing system — with the prominent exception of Nest, which it can plug into. Camera workflows are generally too locked down for security and privacy purposes to allow for third-party apps and services to be slipped in. But the company isn’t trying to bankrupt everyone with an ultra-luxury offering. It’s using off-the-shelf cameras from Wyze and loading them with its own software stack.

Rafiee said he pictures VisualOne as a mid-tier option for people who want to have more than a basic camera setup but aren’t convinced by the more expensive plays. That way the company avoids going head-on with commodity hardware’s race to the bottom or the brand warfare taking place between Google and Amazon’s Nest and Ring. Cameras cost $30-$40, and the service is $7 per month currently.

Ultimately the low-end companies may want to license from VisualOne, while the high-end companies will be developing their own full stack at great cost, making it difficult for them to go downmarket. “Hardware is hard, and AI is specialized — unless you’re a giant company it’s hard to do both. I think we can fill the gap in the market for mid-market companies without those resources,” he said.

Of course privacy is paramount as well, and Rafiee said that because of the way their system works, although the AI lives in the cloud and therefore requires the cameras to be online (like most others), no important user data needs to be or will be stored on VisualOne servers. “We do inference in the cloud so we can be hardware agnostic, but we don’t need to store any data. So we don’t add any risk,” he said.

VisualOne is launching today (after a stint in YC’s latest cohort) with an initial set of objects and interactions, and will continue developing more as it observes which use cases prove popular and effective.