Category: UNCATEGORIZED

18 Oct 2019

Catalan separatists have tooled up with a decentralized app for civil disobedience

Is our age of ubiquitous smartphones and social media turning into an era of mass civil unrest? Two years after holding an independence referendum and unilaterally declaring independence in defiance of the Spanish state — then failing to gain recognition for la república and being forced to watch political leaders jailed or exiled — Catalonia’s secessionist movement has resurfaced with a major splash.

One of the first protest actions programmed by a new online activist group, calling itself Tsunami Democràtic, saw thousands of protestors coalescing on Barcelona airport Monday, in an attempt to shut it down. The protest didn’t quite do that but it did lead to major disruption, with roads blocked by human traffic as protestors walked down the highway and the cancelation of more than 100 flights, plus hours of delays for travellers arriving into El Prat.

For months leading up to a major Supreme Court verdict on the fate of imprisoned Catalan political leaders a ‘technical elite‘ — as one local political science academic described them this week — has been preparing to reboot Catalonia’s independence movement by developing bespoke, decentralized high-tech protest tools.

A source with knowledge of Tsunami Democràtic, speaking to TechCrunch on condition of anonymity, told us that “high level developers” located all around the world are involved in the effort, divvying up coding tasks as per any large scale IT project and leveraging open source resources (such as the RetroShare node-based networking platform) to channel grassroots support for independence into a resilient campaign network that can’t be stopped by the arrest of a few leaders.

Demonstrators at the airport on Monday were responding directly to a call to blockade the main terminal posted to the group’s Telegram channel.

Additional waves of protest are being planned and programmed via a bespoke Tsunami Democràtic app that was also released this week for Android smartphones — as a sideload, not yet a Google Play download.

The app is intended to supplement mainstream social network platform broadcasts by mobilizing smaller, localized groups of supporters to carry out peaceful acts of civil disobedience all over Catalonia.

Our source walked us through the app, which requires location permission to function in order that administrators can map available human resources to co-ordinate protests. We’re told a user’s precise location is not shared but rather that an obfuscated, more fuzzy location marker gets sent. However the app’s source code has not yet been open sourced so users have to take such claims on trust (open sourcing is said to be the plan — but only once the app has been scrubbed of any identifying traces, per the source).

The app requires a QR code to be activated. This is a security measure intended to manage activation in stages, via trusted circles of acquaintances, to limit the risk of infiltration by state authorities. Though it feels a bit like a viral gamification tactic to encourage people to spread the word and generate publicity organically by asking their friends if they have a code or not.

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Whatever it’s really for the chatter seems to be working. During our meeting over coffee we overheard a group of people sitting at another table talking about the app. And at the time of writing Tsunami Democràtic has announced 15,000 successful QR code activations so far. Though it’s not clear how successful the intended flashmob civil disobedience game-plan will be at this nascent stage.

Once activated, app users are asked to specify their availability (i.e. days and times of day) for carrying out civil disobedience actions. And to specify if they own certain mobility resources which could be utilized as part of a protest (e.g. car, scooter, bike, tractor).

Examples of potential actions described to us by our source were go-slows to bring traffic grinding to a halt and faux shopping sprees targeting supermarkets where activists could spend a few hours piling carts high with goods before leaving them abandoned in the store for someone else to clean up.

One actual early action carried out by activists from the group last month targeted a branch of the local CaixaBank with a masked protestor sit-in.

Our source said the intention is to include a pop-up in the app as a sort of contract of conscience which asks users to confirm participation in the organized chaos will be entirely peaceful. Here’s an example of what the comprometo looks like:

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Users are also asked to confirm both their intention to participate in a forthcoming action (meaning the app will capture attendance numbers for protests ahead of time) and to check in when they get there so its administrators can track actual participation in real-time.

The app doesn’t ask for any personal data during onboarding — there’s no account creation etc — although users are agreeing to their location being pervasively tracked.

And it’s at least possible that other personal data could be passed via, for example, a comment submission field that lets people send feedback on actions. Or if the app ends up recording other data via access to smartphone sensors.

The other key point is that users only see actions related to their stated availability and tracked location. So, from a protestor’s point of view, they see only a tiny piece of the Tsunami Democràtic protest program. The user view is decentralized and information is distributed strictly piecemeal, on a need to know basis.

Behind the scenes — where unknown administrators are accessing its data and devising and managing protest actions to distribute via the app — there may be an entirely centralized view of available human protest resources. But it’s not clear what the other side of the platform looks like. Our source was unable to show it to us or articulate what it looks like.

Certainly, administrators are in a position to cancel planned actions if, for example, there’s not enough participation — meaning they can invisibly manage external optics around engagement with the cause. Not enough foot soldiers for a planned protest? Just call it off quietly via the app.

Also not at all clear: Who the driving forces are behind the Tsunami Democràtic protest mask?

“There is no thinking brain, there are many brains,” a spokesman for the movement told the El Diario newspaper this week. But that does raise pretty major questions about democratic legitimacy. Because, well, if you’re claiming to be fighting for democracy by mobilizing popular support, and you’re doing it from inside a Western democracy, can you really claim that while your organization remains in the shadows?

Even if your aim is non-violent political protest, and your hierarchy is genuinely decentralized, which is the suggestive claim here, unless you’re offering transparency of structure so as to make your movement’s composition and administration visible to outside scrutiny (so that your claims of democratic legitimacy can be independently verified) then individual protestors (the app’s end users) just have to take your word for it.

End users who are being crowdsourced and coopted to act out via app instruction as if they’re pawns on a high tech chess board. They are also being asked (implicitly) to shoulder direct personal risk in order that a faceless movement generates bottom up political pressure.

So there’s a troubling contradiction here for a movement that has chosen to include the word ‘democractic’ in its name. (The brand is a reference to a phase used by jailed Catalan cultural leader, Jordi Cuixart.) Who or what is powering this wave?

Tsunami Democratic

We also now know all too well how the double-sided nature of platforms means these fast-flowing technosocial channels can easily be misappropriated by motivated interest groups to gamify and manipulate opinion (and even action) en masse. This has been made amply clear in recent years with political disinformation campaigns mushrooming into view all over the online place.

So while emoji-strewn political protest messages calling for people to mobilize at a particular street corner might seem a bit of harmless ‘Pokemon Go’-style urban fun, the upshot can — and this week has — been far less predictable and riskier than its gamified packaging might suggest.

Plenty of protests have gone off peacefully, certainly. Others — often those going on after dusk and late into the night — have devolved into ugly scenes and destructive clashes.

There is clearly a huge challenge for decentralized movements (and indeed technologies) when it comes to creating legitimate governance structures that don’t simply repeat the hierarchies of the existing (centralized) authorities and systems they’re seeking to challenge.

The anarchy-loving crypto community’s inability to coalesce around a way to progress with blockchain technology looks like its own self-defeating irony. A faceless movement fighting for ‘democracy’ from behind an app mask that allows its elite string-pullers and data crunchers to remain out of sight risks looking like another.

None of the protestors we’ve spoken to could say for sure who’s behind Tsunami Democràtic. One suggested it’s just “citizens” or else the same people who helped organize the 2017 Catalan independence referendum — managing the movement of ballot papers into and out of an unofficial network of polling stations so that votes could be collected and counted despite Spanish authorities’ best efforts to seize and destroy them.

There was also a sophisticated technology support effort at the time to support the vote and ensure information about polling stations remained available in the face of website takedowns by the Spanish state.

Our source was equally vague when asked who is behind the Tsunami Democràtic app. Which, if the decentralizing philosophy does indeed run right through the network — as a resilience strategy to protect its members from being ratted out to the police — is what you’d expected.

Any single node wouldn’t know or want to know much of other nodes. But that just leaves a vacuum at the core of the thing which looks alien to democratic enquiry.

One thing Tsunami Democràtic has been at pains to make plain in all (visible) communications to its supporters is that protests must be peaceful. But, again, while technology tools are great enablers it’s not always clear exactly what fire you’re lighting once momentum is pooled and channeled. And protests which started peacefully this week have devolved into running battles with police with missiles being thrown, fires lit and rubber bullets fired.

Some reports have suggested overly aggressive police response to crowds gathering has triggered and flipped otherwise calm protestors. What’s certain is there are injuries on both sides. Today almost 100 people were reported to have been hurt across three nights of protest action. A general strike and the biggest manifestation yet is planned for Friday in Barcelona. So the city is braced for more trouble as smartphone screens blink with fresh protest instructions.

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Social media is of course a conduit for very many things. At its most corporate and anodyne its stated mission can be expressed flavorlessly — as with Facebook’s claimed purpose of ‘connecting people’. (Though distracting and/or outraging is often closer to the mark.)

In practice, thanks to human nature — so that means political agendas, financial interests and all the rest of our various and frequently conflicting desires — all sorts of sparks can fly. None more visibly than during mass mobilizations where groups with a shared agenda rapidly come together to amplify a cause and agitate for change.

Even movements that start with the best intentions — and put their organizers and administration right out in the open for all to see and query — can lose control of outcomes.

Not least because malicious outsiders often seize the opportunity to blend in and act out, using the cover of an organized protest to create a violent disturbance. (And there have been some reports filtering across Catalan social media claiming right wing thugs have been causing trouble and that secret police are intentionally stirring things up to smear the movement.)

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BARCELONA, SPAIN – OCTOBER 17: Protesters take to the streets to demonstrate after the Spanish Supreme Court sentenced nine Catalan separatist leaders to between 9 and 13 years in prison for their role of the 2017 failed Catalan referendum on October 17, 2019 in Barcelona, Spain. (Photo by Jeff J Mitchell/Getty Images)

So if a highly charged political campaign is being masterminded and micromanaged remotely, by unknown entities shielded behind screens, there are many more questions we need to be asking about where the balance of risk and power lies, as well as whether a badge of ‘pro-democracy’ can really be justified.

For Tsunami Democràtic and Catalonia’s independence movement generally this week’s protests look to be just the start of a dug-in, tech-fuelled guerrilla campaign of civil disobedience — to try to force a change of political weather. Spain also has yet another general election looming so the timing offers the whiff of opportunity.

The El Prat blockade that kicked off the latest round of Catalan unrest seemed intended to be a flashy opening drama. To mirror and reference the pro-democracy movement in Hong Kong — which made the international airport there a focal point for its own protests, occupying the terminal building and disrupting flights in an attempt to draw the world’s attention to their plight.

In a further parallel with protests in Hong Kong a crowdsourced map similar to HKmaps.live — the app that dynamically maps street closures and police presence by overlaying emoji onto a city view — is also being prepared for Catalonia by those involved in the pro-independence movement.

At the time of writing a handful of emoji helicopters, road blocks and vans are visible on a map of Barcelona. Tapping on an emoji brings up dated details such as what a police van was doing and whether it had a camera. A verified status suggests multiple reports will be required before an icon is displayed. We understand people will be able to report street activity for live-mapping via a Telegram bot.

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Screenshot of Catalan live map for crowdsourcing street intel

Our source suggested police presence on the map might be depicted by chick emojis. Aka Piolín: The Spanish name for the Loony Tunes cartoon character Tweety Pie — a reference to a colorfully decorated cruise ship used to house scores of Spanish national police in Barcelona harbor during the 2017 referendum, providing instant meme material. Though the test version we’ve seen seems to be using a mixture of dogs and chicks.

Along with the Tsunami Democràtic app the live map means there will soon be two bespoke tools supporting a campaign of civil disobedience whose unknown organizers clearly hope will go the distance.

As we’ve said, the identities of the people coordinating the rebooted movement remain unclear. It’s also unclear who if anyone is financing it.

Our source suggested technical resources to run and maintain the apps are being crowdsourced by volunteers. But some commentators argue that a source of funding would be needed to support everything that’s being delivered, technically and logistically. The app certainly seems far more sophisticated than a weekend project job.

There has been some high level public expressions of support for Tsunami Democràtic — such as from former Barcelona football club trainer, Pep Guardiola, who this week put out a video badged with the Tsunami D logo in which he defends the democratic right to assembly and protest, warning that free speech is being threatened and claiming “Spain is experiencing a drift towards authoritarianism”. So wealthy backers of Catalan independence aren’t exactly hard to find.

Whoever is involved behind the scenes — whether with financing or just technical and organization support — it’s clear that ‘free’ protest energy is being liberally donated to the cause by a highly engaged population of pro-independence supporters.

Grassroots support for Catalan independence is both plentiful, highly engaged, geographically dispersed and cuts across generations — sometimes in surprising ways. One mother we spoke to who said she was too ill to go to Monday’s airport protest recounted her disappointment when her teenage kids told her they weren’t going because they wanted to finish their homework.

Very many protestors did go though, answering calls to action in their messaging apps or via the printable posters made available online by Tsunami Democràtic which some street protestors have been pictured holding.

Thousands of demonstrators occupied the main Barcelona airport terminal building, sat and sang protest songs, daubed quasi apologetic messages on the windows in English (saying a lack of democracy is worse than missing a flight), and faced off to lines of police in riot gear — including units of Spanish national police discharging rubber bullets. One protestor was later reported by local press to have lost an eye.

‘It’s time to make our voice heard in the world,’ runs Tsunami Democràtic’s message on Telegram calling for a blockade of the airport. It then sets out the objective (an airport shut down) and instructs supporters that all forms of transport are “valid” to further the mission of disrupting business as usual. ‘Share and see you all at T1!’ it ends. Around 240,000 people saw the instruction, per Telegram’s ephemeral view counts.

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Demonstrators during a protest against the jailing of Catalan separatists at El Prat airport in Barcelona, Spain, on Monday, Oct. 14, 2019. (Photo by Iranzu Larrasoana Oneca/NurPhoto via Getty Images)

Later the same evening the channel sent another message instructing protestors to call it a night. ‘Today we have been a tsunami,’ it reads in Catalan. ‘We will make every victory a mobilization. We have started a cycle of non-violent, civil disobedience.’ At the time of writing that follow-on missive has registered 300k+ views.

While Tsunami Democràtic is just one of multiple pro-independence groups arranging and mobilizing regional protests — such as the CDRs, aka Comites de Defensa de la Republica, which have been blocking highways in Catalonia for the past two years — it’s quickly garnered majority momentum since quietly uncloaking this summer.

Its Telegram channel — which was only created in August — has piled on followers in recent weeks. Other pro-independence groups are also sharing news and distributing plans over Telegram’s platform and, more widely, on social media outlets such as twitter. Though none has amassed such a big following, nor indeed with such viral speed.

Even Anonymous Catalonia’s Telegram channel, which has been putting out a steady stream of unfiltered crowdsourced protest content this week — replete with videos of burning bins, siren blaring police vans and scattering crowds, interspersed with photos of empty roads (successful blockades) and the odd rubber bullet wound — only has a ‘mere’ 100k+ subscribers.

And while Facebook-owned WhatsApp was a major first source of protest messaging around the 2017 Catalan referendum, with Telegram just coming on stream as an alternative for trying to communicate out of sight of the Spanish state, the protest mobilization baton appears to have been passed more fully to Telegram now.

Perhaps that’s partly due to an element of mistrust around mainstream platforms controlled by tech giants who might be leant on by states to block content (Tsunami Democràtic has said it doesn’t yet have an iOS version of its app, despite many requests for one, because the ‘politics of the App Store is very restrictive’ — making a direct reference to Apple pulling the HKmaps app from its store). Whereas Telegram’s founder, Pavel Durov, is famously resistant to authoritarian state power.

Though, most likely, it’s a result of some powerful tools Telegram provides for managing and moderating channels.

The upshot is Telegram’s messaging platform has enjoyed a surge in downloads in Spain during this month’s regional unrest — as WhatsApp-loving locals flirt with a rival platform also in response to calls from their political channels to get on Telegram for detailed instructions of the next demo.

Per App Annie, Telegram has leapt up the top free downloads charts for Google Play in Spain — rising from eleventh place into the third spot this month. While, for iOS, it’s holding steady in the top free downloads slot.

Also growing in parallel: Unrest on Catalonia’s streets.

Since Monday’s airport protest tensions have certainly escalated. Roads across the region have been blockaded. Street furniture and vehicles torched. DIY missiles thrown at charging police.

By Thursday morning there were reports of police firing teargas and police vehicles being driven at high speed around protesting crowds of youths. Two people were reported run over.

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Anti-riot police officers shoot against protesters after a demonstration called by the local Republic Defence Committees (CDR) in Barcelona on October 17, 2019. – After years of peaceful separatist demonstrations, violence finally exploded on the Catalan streets this week, led by activists frustrated by the political paralysis and infuriated by the Supreme Court’s conviction of nine of its leaders over a failed independence bid. (Photo by LLUIS GENE / AFP) (Photo by LLUIS GENE/AFP via Getty Images)

Helicopters have become a routine sound ripping up the urban night sky. While the tally of injury counts continues rising on both sides. And all the while there are countless videos circulating on social media to be sifted through to reinforce your own point of view — screening looping clashes between protestors and baton wielding police. One video doing the rounds last night appeared to show protestors targeting a police helicopter with fireworks. Russian propaganda outlets have of course been quick to seize on and amplify divisive visuals.

The trigger for a return to waves of technology-fuelled civil disobedience — as were also seen across Catalonia around the time of the 2017 referendum — are lengthy prison terms handed down by Spain’s Supreme Court on Monday. Twelve political and civic society leaders involved in the referendum were convicted, nine on charges of sedition and misuse of public funds. None were found guilty of the more serious charge of rebellion — but the sentences were still harsh, ranging from 13 years to nine.

The jailed leaders — dubbed presos polítics (aka political prisoners) by Catalan society, which liberally deploys yellow looped-ribbons as a solidarity symbol in support of the presos — had already spent almost two years in prison without bail.

A report this week in El Diario, citing a source in Tsunami Democràtic, suggests the activist movement was established in response to a growing feeling across the region’s independence movement that a new way of mobilizing and carrying out protests was needed in the wake of the failed 2017 independence bid.

The expected draconian Supreme Court verdict marked a natural start-date for the reboot.

A reboot has been necessary because, with so many of its figureheads in prison — and former Catalan president Carles Puigdemont in exile in Brussels — there has been something of a leadership vacuum for the secessionist cause.

That coupled with a sense of persecution at the hands of a centralized state which suspended Catalonia’s regional autonomy in the wake of the illegal referendum, invoking a ‘nuclear option’ constitutional provision to dismiss the government and call fresh elections, likely explains why the revived independence movement has been taking inspiration from blockchain-style decentralization.

Our source also told us blockchain thinking has informed the design and structure of the app.

Discussing the developers who have pulled the app together they said it’s not only a passionately engaged Catalan techie diaspora, donating their time and expertise to help civic society respond to what’s seen as long-standing political persecution, but — more generally — coders and technologists with an interest in participating in what they hope will be the largest experiment in participatory democracy and peaceful civil disobedience.

The source pointed to research conducted by Erica Chenoweth, a political scientist at Harvard University, who found non-violent, civil disobedience campaigns to be a far more powerful way of shaping world politics than violence. She also found such campaigns need engage only 3.5% of the population to succeed. And at 300k+ subscribers Tsunami Democràtic’s Telegram channel may have already passed that threshold, given the population of Catalonia is only around 7.6M.

It sounds like some of the developers helping the movement are being enticed by the prospect of applying powerful mobile platform technologies to a strong political cause as a way to stress testing democratic structures — and perhaps play at reconfiguring them. If the tools are successful at capturing intention and sustaining action and so engaging and activating citizens in a long term political campaign.

We’re told the stated intention to open source the app is also a goal in order to make it available for other causes to pick up and use to press for change. Which does start to sound a little bit like regime change as a service…

Stepping back, there is also a question of whether micromanaged civic disobedience is philosophically different to more organic expressions of discontent.

There is an element of non-violent protest being weaponized against an opponent when you’re running it via an app. Because the participants are being remotely controlled and coordinated at a distance, at the same time as ubiquitous location-sensitive mobile technologies mean the way in which the controlling entity speaks to them can be precisely targeted to push their buttons and nudge action.

Yes, it’s true that the right to peaceful assembly and protest is a cornerstone of democracy. Nor is it exactly a new phenomenon that mobile technology has facilitated this democratic expression. In journalist Giles Tremlett’s travelogue book about his adopted country, Ghosts of Spain, he recounts how in the days following the 2004 Madrid train bombings anonymous text messages started to spread via mobile phone — leading to mass, spontaneous street demonstrations.

At the time there were conflicting reports of who was responsible for the bombings, as the government sought to blame the Basque terrorist group ETA for what would turn out to be the work of Islamic terrorists. Right on the eve of an election voters in Spain were faced with a crucial political decision — having just learnt that the police had in fact arrested three Moroccans for the bomb attacks, suggesting the government had been lying.

“A new political phenomenon was born that day — the instant text message demonstration,” Tremlett writes. “Anonymous text messages began to fly from mobile phone to mobile phone. They became known as the pásalo messages, because each ended with an exhortation to ‘Pass it on’. It was like chain mail, but instant.”

More than fifteen years on from those early days of consumer mobile technology and SMS text messaging, instant now means so much more than it did — with almost everyone in a wealthy Western region like Catalonia carrying a powerful, Internet-connected computer and streaming videocamera in their pocket.

Modern mobile technology turns humans into high tech data nodes, capable of receiving and transmitting information. So a protestor now can not only opt in to instructions for a targeted action but respond and receive feedback in a way that makes them feel personally empowered.

From one perspective, what’s emerging from high tech ‘push button’ smartphone-enabled protest movements, like we’re now seeing in Catalonia and Hong Kong, might seem to represent the start of a new model for democratic participation — as the old order of representative democracy fails to keep pace with changing political tastes and desires, just as governments can’t keep up technologically.

But the risk is it’s just a technological elite in the regime-change driving seat. Which sums to governance not by established democratic processes but via the interests of a privileged elite with the wealth and expertise to hack the system and create new ones that can mobilize citizens to act like pawns.

Established democratic processes may indeed be flawed and in need of a degree of reform but they have also been developed and stress-tested over generations. Which means they have layers of accountability checks and balances baked in to try to balance out competing interests.

Throwing all that out in favor of a ‘democracy app’ sounds like the sort of disruption Facebook has turned into an infamous dark art.

For individual protestors, then, who are participating as willing pawns in this platform-enabled protest, you might call it selfie-style self-determination; they get to feel active and present; they experience the spectacle of political action which can be instantly and conveniently snapped for channel sharing with other mobilized friends who then reflect social validation back. But by doing all that they’re also giving up their agency.

Because all this ‘protest’ action is flowing across the surface of an asymmetric platform. The infrastructure natively cloaks any centralized interests and at very least allows opaque forces to push a cause at cheap scale.

“I felt so small,” one young female protestor told us, recounting via WhatsApp audio message, what had gone down during a protest action in Barcelona yesterday evening. Things started out fun and peaceful, with participants encouraged to toss toilet rolls up in the air — because, per the organizer’s messaging, ‘there’s a lot of shit to clean up’ — but events took a different turn later, as protestors moved to another location and some began trying to break into a police building.

A truck arrived from a side street being driven by protestors who used it to blockade the entrance to the building to try to stop police getting out. Police warning shots were fired into the air. Then the Spanish national police turned up, driving towards the crowd at high speed and coming armed with rubber not foam bullets.

Faced with a more aggressive police presence the crowd tried to disperse — creating a frightening crush in which she was caught up. “I was getting crushed all the time. It wasn’t fun,” she told us. “We moved away but there was a huge mass of people being crushed the whole time.”

“What was truly scary weren’t the crowds or the bullets, it was not knowing what was going on,” she added.

Yet, despite the fear and uncertainty, she was back out on the streets to protest again the next night — armed  with a smartphone.

Enric Luján, a PhD student and adjunct professor in political science at the University of Barcelona — and also the guy whose incisive Twitter thread fingers the forces behind the Tsunami Democràtic app as a “technological elite” — argues that the movement has essentially created a “human botnet”. This feels like a questionable capability for a pro-democracy movement when combined with its own paradoxically closed structure.

“The intention appears to be to group a mass movement under a label which, paradoxically, is opaque, which carries the real risk of a lack of internal democracy,” Luján tells TechCrunch. “There is a basic paradox in Tsunami Democràtic. That it’s a pro-democracy movement where: 1) the ‘core’ that decides actions is not accessible to other supporters; 2) it has the word ‘Democràtic’ in its name but its protocols as an organization are extremely vertical and are in the hands of an elite that decides the objectives and defines the timing of mobilization; 3) it’s ‘deterritorialized’ with respect to the local reality (unlike the CDRs): opacity and verticality would allow them to lead the entire effort from outside the country.”

Luján believes the movement is essentially a continuation of the same organizing forces which drove support for pro-independence political parties around the 2017 referendum — such as the Catalan cultural organization Òmnium — now coming back together after a period of “strategic readjustment”.

“Shortly after the conclusion of the referendum, through the arrest of its political leaders, the independence movement was ‘decapitated’ and there were months of political paralysis,” he says, arguing that this explains the focus on applying mobile technology in a way that allows for completely anonymous orchestration of protests, as a strategy to protect itself from further arrests.

“This strategic option, of course, entails lack of public scrutiny of the debates and decisions, which is a problem and involves treating people as ‘pawns’ or ‘human botnets’ acting under your direction,” he adds.

He is also critical of the group not having opened the app’s code which has made it difficult to understand exactly how user data is being handled by the app and whether or not there are any security flaws. Essentially, there is no simple way for outsiders to validate trustworthiness.

His analysis of the app’s APK raises further questions. Luján says he believes it also requests microphone permissions in addition to location and camera access (the latter for reading the QR code).

Our source told us that as far as they are aware the app does not access the microphone by default. Though screenshots of requested permissions which have circulated on social media show a toggle where microphone access seems as if it can be enabled.

And, as Luján points out, the prospect of a powerful and opaque entity with access to the real-time location of thousands of people plus the ability to remotely activate smartphone cameras and microphones to surveil people’s surroundings does sound pretty close to the plot of a Black Mirror episode…

Asked whether he believes we’re seeing an emergent model for a more participatory, grassroots form of democracy enabled by modern mobile technologies or a powerful techie elite playing at reconfiguring existing power structures by building and distributing systems that keep them shielded from democratic view where they can nudge others to spread their message, he says he leans towards the latter.

“It’s a movement with an elite leadership that seems to have had a clear timetable for months. It remains to be seen what they’ll be able to do. But it is clearly not spontaneous (the domain of the website was registered in July) and the application needed months to develop,” he notes. “I am not clear that it can be or was ‘crowdsourced’ — as far as I know, there was no campaign to finance Tsunami or their technological solutions.”

“Release the code,” he adds. “I don’t understand why they haven’t released it. Promising it is easy and is what you expect if you want to present yourself with a minimum of transparency, but there is no defined deadline to do so. For now we have to work with the APK, which is more cumbersome to understand how the app works and how it uses and moves user data.”

“I imagine it is so the police cannot investigate thoroughly, but it also means others lose the possibility of better understanding how a product that’s been designed by people who rely on anonymity works, and have to rely that the elite technologists in charge of developing the app have not committed any security breach.”

So, here too, more questions and more uncertainty.

18 Oct 2019

Swarm gets green light from FCC for its 150-satellite constellation

Swarm Technologies aims to connect smart devices around the world with a low-bandwidth but ever-present network provided by satellites — and it just got approval from the FCC to do so. Apparently the agency is no longer worried that Swarm’s sandwich-sized satellites are too small to be tracked.

The company’s SpaceBEE satellites are tiny things that will provide a connection to devices that might otherwise be a pain to get online. Think soil monitors in the middle of corn fields, or buoys in the middle of the ocean. Their signals don’t need low latency or high bandwidth — so the requirements for a satellite that serves them are much lower than for consumer broadband.

Consequently Swarm’s satellites are small — so small in fact that the FCC was worried that they would be difficult to track and might be a danger to other satellites. Part of the company’s responsibility in its application was to show that isn’t the case.

The FCC approval is just one step in the long process of getting approved to go to space for commercial operations, but it’s a big one. In addition to granting Swarm permission to send up its planned 150 satellites (and up to 600 if it decides to spread out a little), the FCC assigned Swarm the wireless spectrum it needs to operate. No use being in space if you’re forbidden from transmitting on the frequencies you need, right?

Longtime satellite communications provider ORBCOMM had objected that Swarm would be taking over some parts of the spectrum it has been assigned — but the FCC found that wasn’t actually the case and in fact the company was in a way making a sort of power play that would have extended its control over those frequencies. So their concerns were dismissed.

SpaceX also filed a comment suggesting that Swarm had not adequately considered its orbital debris footprint, neglecting in particular to include its satellites’ antennas in various calculations. It also said the satellites might be a risk to the International Space Station. But documents filed by Swarm addressing these questions seem to have satisfied the FCC completely — “We find that Swarm has taken the appropriate steps to address SpaceX’s concerns,” and it granted the application with the condition that the company abide by any upcoming orbital debris rules.

Swarm has clearly moved well past the black mark on its FCC record when it launched test satellites without the proper approvals. The red tape involved in space operations is voluminous and it’s not uncommon to fall afoul of it — especially when your competitors, as evidenced by the above, are making more of it for you.

Now that it has its paperwork in order, Swarm plans to get its entire constellation in orbit by the end of the year.

“The FCC grant of Swarm’s spectrum and launch approvals is a big milestone for the company. Swarm is now poised to be first to market for an entire global satellite data communications constellation before the end of 2020,” said CEO and co-founder Sara Spangelo in a statement to TechCrunch.

“This is an important moment for the satellite industry, for US innovation in space, and for the large number of IoT customers world-wide that Swarm is excited to support with 2-way data services,” added CTO and co-founder Ben Longmire.

Both Sara and Ben were at TechCrunch Disrupt earlier this month, and the former sat on a panel with Bessemer Venture Partners’ Tess Hatch and OneWeb CEO Adrian Steckel (with myself as moderator). We chatted about a variety of topics relating to the new space economy — if you’re thinking of getting up there yourself, you might be interested to watch it below.

17 Oct 2019

Airbnb’s WeWork problem

Airbnb may be another overvalued “unicorn,” but it’s no WeWork.

The Information this morning reported new Airbnb financials — indicating a massive increase in operating losses — that immediately call Airbnb’s future into question. Precisely, Airbnb lost $306 million on operations on $839 million in revenue, namely as a result of marketing spend, in the first quarter of 2019. In total, Airbnb invested $367 million in sales and marketing, representing a 58% increase year-over-year, in Q1. The company is gearing up for a major liquidity event next year and is making a concerted effort to rake in new customers, as any soon-to-be-public business would.

Given WeWork’s sudden demise, coupled with Uber and Lyft’s lukewarm performances on the stock markets, many have wondered how Wall Street will respond to Airbnb’s eventual IPO prospectus. Will money managers have an appetite for another over-valued Silicon Valley darling? Or will the market compete like mad for shares in the massive home-sharing marketplace?

But Airbnb, again, is no WeWork, and I wager Wall Street will have a much friendlier approach to its offering. For one, Airbnb’s co-founder and chief executive officer Brian Chesky isn’t dropping $60 million on private jets — I don’t think. CEO behaviors aside, Airbnb has more capital in the bank than it has raised in its entire 11-year history, which is a whole lot of money. This is all according to a source who is familiar Airbnb’s financials and shared this detail with TechCrunch following The Information’s Thursday morning report. As for Airbnb, the company told TechCrunch, “we can’t comment on the figures, but 2019 is a big investment year in support of our hosts and guests.”

Airbnb’s CEO Brian Chesky speaks at TechCrunch Disrupt SF 2014

Airbnb has attracted more than $3.5 billion in equity funding at a $31 billion valuation and has even more locked away in its bank account. Additionally, Airbnb has an untouched $1 billion credit line, the source said. Presumably, the referenced credit line is the 2016 $1 billion debt financing from JPMorgan, CitiGroup, Morgan Stanley and others.

Moreover, Airbnb has been “cumulatively” free cash flow positive for some time, meaning that it’s seen more money coming in than going out during recent quarters, according to our source. It has been reported that Airbnb surpassed $1 billion in revenue in the second quarter of 2019 and in the third quarter of 2018, but we’re guessing the business did not top $1 billion in Q4 of 2018 or Q1 of 2019 because it if had, that information would probably have been “leaked.”

Finally, Airbnb has been profitable on an EBITDA (earnings before interest, taxes, depreciation and amortization) basis for two consecutive years, the company announced in January. Gross bookings, meanwhile, are growing, as is Airbnb’s business offering and its experiences product.

Why does any of this matter, you ask?

17 Oct 2019

Every state but Alaska has reported vape lung victims, now numbering 1,479 nationwide

A lung condition apparently caused by vaping has been reported in every state but Alaska, the CDC has announced. The total number of suspected and confirmed cases has risen to 1,479, and at least 33 people have died as a result of the affliction.

The CDC (Centers for Disease Control and Prevention) updates these numbers regularly and provides news on its progress in characterizing the condition, in which the only reliable shared factor is using vaping devices. More victims report using THC products than nicotine, but no specific chemical or mechanism has been proposed as the cause.

At the outset it appeared that the problem might have been rooted in a bad batch of unofficial vape cartridges tinged with some toxic chemical — and indeed the CDC has warned against buying vaping materials from any untrustworthy sources. But the scale of the problem has continuously grown and is now clearly nationwide, not local.

The demographics skew male (70 percent of victims) and younger: 79 percent are under 35, with a median of 23 (though for deaths the median is 44). 78 percent reported using THC products, while only 10 percent reported only using nicotine.

Reported victims are concentrated in Illinois and California, in both of which over a hundred cases have been reported, but that should not be taken as an indicator that states with fewer cases, like Kentucky and Oregon, are immune — they may simply be late to report. Likewise for U.S. territories, where only the Virgin Islands have reported cases — Puerto Rico and others are likely to be equally at risk.

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If you use a vaping device and are experiencing shortness of breath or chest pain (though other symptoms are also associated), you should probably check with your doctor. In the meantime the CDC has recommended ceasing all use of vaping products, though as many have pointed out that may end up pushing some users back to cigarettes. Angry about that? Direct it at the vaping companies, which promoted their products as smoking cessation tools without adequate testing.

The CDC and FDA, along with state and municipal health authorities and partners, are working on determining the cause and any potential treatments of the “lung injury associated with e-cigarette use,” as they call it. Tests and sampling efforts are underway — efforts that probably should have been done before these products were allowed on the market.

You can keep up with the latest stats at the CDC’s dedicated page.

17 Oct 2019

Nintendo Switch hits another sales milestone

Nintendo’s North American Switch unit sales have already surpassed the lifetime worldwide unit sales of the Wii U.

The company announced Thursday that they had sold 15 million units of the popular handheld console in North America, further noting that the Switch had been the most popular console in the US for 10 months in a row, according to the NPD Group.

This number brings NA-specific sales well past the 13.56 million units sold of the company’s previous-generation console, the Wii U.

While the Switch lags far behind the PS4 and Xbox One in lifetime sales, it’s important to realize how old those other systems are — hardware refreshes aside. The Xbox One and PS4 were released in 2013 and the Switch was introduced in 2017.

The Switch is likely still early in its life cycle — the company just released the $199 Switch Lite which cuts down on some functionality and focuses wholly on portable gameplay.

A common refrain has been that there are too few titles available on the Switch, while I still that’s definitely true, Nintendo announced that 14 titles had sold more than 1 million copies, with four of its own games (Mario Kart 8 DeluxeThe Legend of Zelda: Breath of the WildSuper Mario Odyssey and Super Smash Bros. Ultimate) selling more than 6 million copies.

As of June 30, 2019, Nintendo has sold nearly 38 million Switch consoles worldwide.

17 Oct 2019

Getting press for your startup: the true role of communications

Welcome to this edition of The Operators, a recurring Extra Crunch column produced by insiders with executive experience at companies like AirBnB, Brex, Dropbox, Facebook, Google, Lyft, Slack, Square, Twitter, and Uber, sharing their stories and insights. It’s made for founders who are navigating domains outside their expertise, covering topics they may be learning for the first time like enterprise sales, product management, and finance/accounting.

In this episode:

  1. When and how should a company seek press coverage?
  2. The difference between marketing and communications
  3. Building relationships with reporters
  4. Being or identifying a great communications leader

Early on, most founders and investors focus on getting positive press, but if they’re unfortunate or make mistakes, mitigating bad coverage becomes a common goal. Broadly, communications consists of how and what information to share, both inside and outside of the company, touching domains like management, recruiting, marketing, and business development. It’s also highly optimizable and often, mission critical — the difference between dramatic success and catastrophic failure.

We spoke with three communications experts to learn more:

  • Sean Garrett was Twitter’s first VP of Communications. He previously worked for Governor Pete Wilson of California and has founded two separate communications firms, with clients including Slack, Cisco, and Disney. He’s currently a Managing Partner at Pramana Collective.
  • Faryl Ury is a former reporter with experience at NPR and the Associated Press. Her communications experience also began in government, working for US Senator Jeanne Shaheen before managing comms at Square and Uber. She was then a marketing executive at Dropbox before becoming the Director of Communications at Aurora, a leading autonomous vehicle company, with investors including Sequoia Capital, Amazon, and Hyundai.
  • Adi Raval started as a journalist at ABC News and the BBC, covering 9/11, the Iraq War, and the White House. He moved into government as a diplomat for the State Department serving in Afghanistan, and later, as a spokesperson and Director of Communications at USAID. After leaving government, Adi was the top communications executive for the Bechtel Corporation, the Head of Comms and PR for TaskRabbit, and now the Head of Communications at Kodiak Robotics. He’s also a term member for the Council on Foreign Relations.

Below is a synthesized summary of our conversation; check out The Operators for the full episode.

When and how should a company seek press coverage?

Investors love to see public recognition of their portfolio companies, and founders sometimes believe press coverage will solve all their problems, yielding a panacea of inbound customers, employees, and new backers. Whether it’s a fundraising announcement or a product launch, more exposure can only help, right? Of course, that’s not always true. Being unprepared for an influx of inbound interest can lead to bad experiences and a negative reputation.

What’s more likely than a bad response? No response at all: reporters are constantly pitched by entrepreneurs seeking coverage who don’t have a compelling story to share, which means most of them are primed to say “no.”

Faryl told us that when she asks founders why they want to do press, they often answer, “our investors told us to,” or “I talked to other entrepreneurs and they do press.” Being prepared for the response means knowing what you want the response to be, which in turn means knowing what you have to say, and why anyone will listen and respond the right way. Thinking through this exercise involves asking questions, said Sean, specifically, “what is your positioning? What is your messaging? And for some organizations, that’s the right first step to figure out, at a high level, what are we even trying to accomplish here…?”

Having a clear purpose in mind before approaching reporters will also help you execute. For some startups, landing a story with trade press may be better than being written up by a generalized tech publication. On the other hand, if you’re spending a ton of money on Facebook and Google to advertise directly to consumers, getting coverage in the right publications may be much more efficient and impactful. 

17 Oct 2019

The battle to become the Mexican Nubank just started

Banks in Latin America have long dominated the market as oligopolies, becoming highly profitable but not serving well the population.

In the region, Brazil was the first market to have the banks’ oligopoly challenged by neobanks, with Nubank proving that it was possible to break them up. Providing a superior product and exceptional customer support, it was able to attract more than 15 million customers, valuing the company at an astonishing US$10 billion in its latest round.

Although Brazil has been the center of the neobanks’ emergence in Latin America, attention has been shifting toward another country in the region.

The Mexican opportunity

Mexico, the second-largest economy in the region, has become a relevant market for the fintechs in the region.

The reason is not exactly the most flattering; Mexico is a large country with almost 130 million population, but a large share are still unbanked. Indeed, 63% of the adult population still doesn’t have access to financial services, according to the Global Findex database, and banks haven’t been able (or are not interested) to serve them.

Furthermore, Mexicans are very suspicious of banks because of their lack of transparency, as well as recent financial crises.

Because of this skepticism toward banks, together with a cash-based economy, 90% of all consumer transactions are still made in cash, which prompts a rather peculiar situation — twice a month (quincena) there are long lines at ATMs all across the country with people withdrawing all their wages.

On the other hand, Mexico has a digitally engaged population (Mexico is the fifth largest market for Facebook, ninth for YouTube and the third for Uber), with high smartphone penetration (85.8% according to The Competitive Intelligence Unit).

All these elements put together create a rather attractive opportunity for the emergence of neobanks.

Mexico becomes the next battleground

Mexico had a few neobank pioneers in the past couple of years; Bankaool launched its services in 2015, but was too early in the market; later on came Broxel and Albo in 2016 followed by Flink in 2018.

However, the market started to garner more attention in April 2018 when the Iranian Matin Tamizi raised US$2 million from Andreessen Horowitz (a16z) and Kaszek Ventures to create a neobank in Mexico (Cuenca). It is interesting to note that Matin, at that time, had never been to Mexico and only had a slide deck to demonstrate the opportunity.

Neobanks aren’t the only ones trying to get a share of the Mexican wallets.

This event, together with the success of neobanks in Brazil, sparked attention for the potential of the market.

A couple of months after, Albo announced a Series A, raising US$7.4 million. It is currently the leading player in the market, with 150,000 customers and the third debit card issuer in Mexico.

Shortly thereafter, Fondeadora raised a US$1.5 million seed round to enter the neobank market, pivoting from a crowdfunding platform.

Late in September, a new entrant closed a relevant round; Klar raised US$7.5 million in equity and US$50 million in debt financing with the goal to become the “Chime of Mexico.”

Vexi is another player in the market, though it is focused on providing credit cards to people at the base of the pyramid. It has issued, so far, more than 20,000 credit cards and, recently, raised US$2 million in equity and US$1 million in debt financing.

Regional and international players are also becoming interested in the opportunity. The Brazilian giant Nubank announced this year officially that it would be expanding there. From overseas, the leading Spanish neobank, Bnext, announced it would be entering the Mexican market, fueled by a fresh new round of €22.5 million. Different from other neobanks, Bnext partners with fintechs and financial institutions to provide services to its customers via a marketplace.

Nonetheless, there are rumors that other heavyweights, such as the Europeans Revolut and N26, are planning to enter the market, as well as the Argentinian Ualá.

Neobanks aren’t the only ones trying to get a share of the Mexican wallets. Many tech companies such as Cabify, Weex and Rappi are launching digital wallets and issuing debit cards, leveraging their large user base.

To add a final spice to the market, traditional banks are making a significant effort to improve their digital offers — some even going as far as launching digital branchless initiatives. The Spanish Banco Sabadell entered the Mexican market with a full digital strategy, while Banregio (a local medium-sized bank) launched Hey Banco, a new digital account.

On the sidelines, there also are a few neobanks focusing on a different segment. Oyster and Evva are targeting the unattended market of freelancers, startups and SMEs, long neglected by the incumbents.

The stage is set for an upcoming battle

Although the market is still in its early stage with just a handful of neobanks with running services, the stage is set for an amusing upcoming battle. Most players will be launching in the next couple of months, which will trigger a race for acquiring customers and raising more money.

This competition will definitely change the landscape of the financial industry in Mexico, bringing better and more affordable services to its population.

It will be indubitably interesting to watch how the market will unfold in the following years, and the prize for the winners can be quite attractive, as Nubank proved in Brazil.

17 Oct 2019

Atlassian acquires Code Barrel, makers of Automation for Jira

Atlassian today announced that it has acquired Code Barrel, the makers of Automation for Jira, a low-code tool for easily automating many aspects of Jira that’s also one of the most popular add-ons for Jira Software and Jira Service Desk in Atlassian’s marketplace. The two companies did not disclose the price of the acquisition.

Sydney-based Code Barrel was founded by two of the first engineers who built Jira at Atlassian, Nick Menere and Andreas Knecht. With this acquisition, they are returning to Atlassian after four years in startup land.

“For me and Andreas, it’s almost like coming home,” said Menere, who joined the Jira team in 2005 when there were only a handful of developers working on the product. “It’s the place where we pretty much learned how to develop software and how to develop product. For us, this was the only company we would ever go back to.”

As the name implies, Automation for Jira makes it easy to automate recurring tasks in Atlassian’s issue and project tracking service. “Increasingly, [our customers] are having to spend a lot of time on the mundane,” Noah Wasmer, the VP of Product for Tech Teams at Atlassian, told me. “What we’re seeing is that with Jira as the backbone, they are interacting with a lot of systems, are duplicating work, are manually entering work into different systems. And so what we’re finding is that they’re spending an inordinate amount of time doing things that aren’t actually helping them build and create those next-generation things that help change our world.”

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If you want to reduce this kind of duplication of work, then automation is the obvious thing to look at. And with more than 6,000 companies that found Code Barrel’s solution in Atlassian’s marketplace, plus the founders’ obvious connection to the company, Automation for Jira must have been an obvious candidate for an acquisition.

Wasmer also stressed that the fact that they built a no-code tool will allow anybody who uses Jira to create scripts without having to be a programmer. Automation for Jira allows users to set up time-based rules or those that run based on triggers inside of Jira. It also features third-party integrations with SMS, Slack and Microsoft Teams, among others.

For the time being, Automation for Jira will remain in the Atlassian Marketplace and will continue to sell at the same price of $5/user/month for teams with up to 10 users and $2.5/user/month for teams between 11 and 100 users, with prices going down from there for larger enterprises. Surely, Atlassian will start integrating some of the tool’s features into Jira, but for the time being the company doesn’t have anything to announce on that front.

17 Oct 2019

Bosch’s new ‘ear’ for the Space Station’s Astrobee robot will let it ‘hear’ potential mechanical issues

Bosch is set to launch a new AI-based sensor system to the International Space Station that could change the way astronauts and ground crew monitor the ISS’s continued healthy operation. The so-called “SoundSee” module will be roughly the size of a lunch box, and will make its way to the ISS via Northrop Grumman’s forthcoming CRS-12 resupply mission, which is currently set for a November 2 launch.

The SoundSee module combines microphones with machine learning to perform analysis of sounds it picks up from the station, which it can use to effectively establish a healthy baseline, and then continually use new audio data to compare in order to get advance notice of potential mechanical issues via changes that could signal problems.

SoundSee will be mobile via installation on Astrobee, an autonomous floating cube-shaped robot that took its first totally self-guided flight in reduced gravity in June this year. Astrobee’s roving role is a perfect way for Bosch’s SoundSee tech, which it developed in partnership with Astrobotic and NASA, to work on and develop its autonomous sensing tech which it will eventually use to provide info about how systems are currently performing on the ISS, and when specific systems might need maintenance or repairs – ideally before it becomes an issue.

The first autonomous flight of Astrobee took place in June, 2019 on the ISS.

As with other things that Astrobee is designed to help with, SoundSee’s ultimate aim is to automate things that the astronaut crew of the ISS currently have to do manually. Already, SoundSee has been undergoing extensive ground testing here on Earth in a simulated environment similar to what it will experience on the ISS, but once in space, it’ll face the real test of its intended use scenario.

17 Oct 2019

How Unity built the world’s most popular game engine

What do BMW, Tencent, Pokémon Go creator Niantic, movie director Jon Favreau and construction giant Skanska have in common? They’re all using the same platform to create their products.

Founded in a small Copenhagen apartment in 2004, Unity Technologies’ makes a game engine — a software platform for building video games. But the company, which was recently valued around $6 billion and could be headed toward an IPO, is becoming much more than that.

“Unity wants to be the 3D operating system of the world,” says Sylvio Drouin, VP of the Unity Labs R&D team.

Customers can design, buy, or import digital assets like forests, sound effects, and aliens and create the logic guiding how all these elements interact with players. Nearly half of the world’s games are built with Unity, which is particularly popular among mobile game developers. 

And in the fourteen years since Unity’s engine launched, the size of the global gaming market has exploded from $27 billion to $135 billion, driven by the rise of mobile gaming, which now comprises the majority of the market.

Unity is increasingly used for 3D design and simulations across other industries like film, automotive, and architecture and is now used to create 60% of all augmented and virtual reality experiences. That positions Unity — as Facebook CEO Mark Zuckerburg argued in a 2015 memo in favor of acquiring it — as a key platform for the next wave of consumer technology after mobile.

Unity’s growth is a case study of Clayton Christensen’s theory of disruptive innovation. While other game engines targeted the big AAA game makers at the top of the console and PC markets, Unity went after independent developers with a less robust product that was better suited to their needs and budget. 

As it gained popularity, the company captured growth in frontier market segments and also expanded upmarket to meet the needs of higher-performance game makers. Today, it’s making a push to become the top engine for building anything in interactive 3D.

This article is part of my ongoing research into the future of interactive media experiences. This research has included interviews with dozens of developers, executives, and investors in gaming and other industries, including interviews with over 20 Unity executives.

Founding

Unity was founded in Copenhagen by Nicholas Francis, Joachim Ante, and David Helgason. Its story began on an OpenGL forum in May 2002, where Francis posted a call for collaborators on an open source shader-compiler (graphics tool) for the niche population of Mac-based game developers like himself. It was Ante, then a high school student in Berlin, who responded. 

Ante complemented Francis’ focus on graphics and gameplay with an intuitive sense for back-end architecture. Because the game he was working on with another team wasn’t going anywhere, they collaborated on the shader part-time while each pursued their own game engine projects, but decided to combine forces upon meeting in-person. In a sprint to merge the codebases of their engines, they camped out in Helgason’s apartment for several days while he was out of town. The plan was to start a game studio grounded in robust tech infrastructure that could be licensed as well.

Helgason and Francis had worked together since high school, working on various web development ventures and even short-lived attempts at film production. Helgason dropped in and out of the University of Copenhagen while working as a freelance web developer. He provided help where he could and joined full-time after several months, selling his small stake in a web development firm to his partners. 

According to Ante, Helgason was “good with people” and more business-oriented, so he took the CEO title after the trio failed to find a more experienced person for the role. (It would be two years before Ante and Francis extended the co-founder title and a corresponding amount of equity to Helgason.)

They recruited a rotating cast to help them for free while prototyping a wide range of ideas. The diversity of ideas they pursued resulted in an engine that could handle a broad range of use cases. Commercializing the engine became a focus, as was coming up with a hit game that would show the engine off to its best advantage; for indie developers, having to reconstruct an engine with every new game idea was a pain point that, if solved, would enable more creative output. 

Supported by their savings, a €25,000 investment from Ante’s father, and Helgason’s part-time job at a café, they pressed on for three years, incorporating in the second year (2004) with the name Over The Edge Entertainment.

The game they ultimately committed to launching in spring 2005, GooBall, was “way too hard to play,” says Ante and didn’t gain much traction. Recognizing that they were better at building development tools and prototypes than commercially-viable games, they bet their company on the goal of releasing a game engine for the small Mac-based developer community. Linking the connotations of collaboration and cross-compatibility, they named the engine Unity.