Category: UNCATEGORIZED

16 Aug 2019

Motorola has GoPro aspirations for its latest budget handset

Good on Motorola for keeping it interesting. At the end of the day, I’m not sure how large a market there is for a budget “action camera” phone, but in a world of samey electronics, at least the Lenovo-owned brand continues to shade in interesting corners.

Honestly, I’m surprised more phones didn’t attempt to position themselves as action devices in the heyday of the GoPro. For most consumers, that trend has largely blown over, and for GoPro itself, it’s become tough to compete with cheap knockoffs and the recent entrance of DJI into the market.

The “action” part of the Motorola One Action is largely a reference to the three camera array on the rear — specifically the 117 degree, ultra side angle that offers a more GoPro-style shot. What’s really interesting here (and could have broad implications) is the decision to change the sensor’s orientation. Holding the phone vertically (wrong) results in landscape videos (right).

And listen, I realize that there’s no “right” or “wrong” way to shoot phone video, but come on, let’s be real for a minute. Those bars a really awful way to watch a YouTube video.

The handset is pretty much a standard budget Moto device in ever other way. It arrives in Brazil, Mexico and parts of Europe today. The U.S. and Canada will get their hands on it in October. Expect it to be priced under $300.

16 Aug 2019

How should B2B startups think about growth? Not like B2C

Over the years, we’ve seen a lot of B2B companies apply ineffective demand generation strategies to their startup. If you’re a B2B founder trying to grow your business, this guide is for you.

Rule #1: B2B is not B2C. We are often dealing with considered purchases, multiple stakeholders, long decision cycles, and massive LTVs. These unique attributes matter when developing a growth strategy. We’ll share B2B best practices we’ve employed while working with awesome B2B companies like Zenefits, Crunchbase, Segment, OnDeck, Yelp, Kabbage, Farmers Business Network, and many more. Topics covered include:

  • Descriptions of growth stages you can use to determine your company’s status
  • Tactics for each stage with specific examples
  • Which advertising channels work best
  • Optimization of your ad copy to maximize CTR and conversions
  • Optimization of your sales funnel
  • Measuring the ROI of your advertising spend

We often crack growth for companies that didn’t think it was possible, based on their prior experience with agencies and/or internal resources. There are many misconceptions out there about B2B growth, rooted in the misapplication of B2C strategies and leading to poor performance. Study the differences and you’ll develop a filter for all the advice you get that’s good for one context (ex: B2C) but bad for another (ex: B2B). This guide will get you off on the right foot.

Table of Contents

What growth stage is your B2B startup?

The best growth strategy for your company ultimately depends on whether you’re in an incubation, iteration, or scale stage. One of the most common mistakes we see is a company acting like they’re in the scale phase when they’re actually in the iteration phase. As a result, many of them end up developing inefficient growth strategies that lead to exorbitant monthly ad spends, extraneous acquisition channels, hiring (and later firing) ineffective team members, and de-emphasizing critical customer feedback. There is often an intense pressure to grow, but believing your own hype before it’s real can kill early-stage ventures. Here’s a breakdown of each stage:

designer key details 22

Incubation is when you are building your minimum viable product (MVP). This should be done in close partnership with potential customers to ensure you are solving a real problem with a credible solution. Typically a founder is a voice of the customer, as someone who experienced the problem and sought out the solution s/he is now building. Other times, founders enter a new space and build a panel of prospective buyers to participate in the product development process. The endpoint of this phase is a working MVP.

Iteration is when you have customers using your MVP and you are rapidly improving the product. Success at this stage is rooted in customer insights – both qualitative and quantitative – not marketing excellence. It’s valuable to include in this iterative process customers with whom the founder(s) have no prior relationship. You want to test the product’s appeal, not friends’ willingness to help you out. We want a customer set that is an accurate sample of a much larger population you will later sell to. The endpoint of the iteration phase is product/market fit.

Scale is when you have product/market fit and are trying to grow your customer base. The goal of this phase is to build a portfolio of tactics that maximize market penetration with minimal – or at least profitable – cost. Success is rooted in growing lifetime value through retention and margin, maximizing funnel conversion to efficiently convert leads to customers, and finding repeatable tactics to drive prospective buyers’ awareness and consideration of your product. The endpoint of this phase is ultimately market saturation, leading to the incubation and iteration of new features, customer segments, and geographies.

How do you find B2B customers? 

Here’s a list of B2B customer acquisition tactics we commonly employ and recommend. Later in this article, we’ll connect each channel to the growth stage it’s best used in. This list is generally sorted by early stage to later stage:

1. Leveraging your network. This is particularly valuable for founders who are building a product based on their own past experience.

  • Reach out to old colleagues you know have the same problem you had (and are solving).
  • Leverage the startup ecosystem. If your startup is in YCombinator, for instance, other companies in your batch may be prospects, along with alumni who will take your call simply because of your affiliation.
  • Example: If you’re building an app for marketers, ask past marketing colleagues you’ve worked with to try out your product is a no brainer.

16 Aug 2019

YouTube shuts down music companies’ use of manual copyright claims to steal creator revenue

YouTube is making a change to its copyright enforcement policies around music used in videos, which may result in an increased number of blocked videos in the shorter term — but overall, a healthier ecosystem in the long-term. Going forward, copyright owners will no longer be able to monetize creator videos with very short or unintentional uses of music via YouTube’s “Manual Claiming” tool. Instead, they can choose to prevent the other party from monetizing the video or they can block the content. However, YouTube expects that by removing the option to monetize these sorts of videos themselves, some copyright holders will instead just leave them alone.

“One concerning trend we’ve seen is aggressive manual claiming of very short music clips used in monetized videos. These claims can feel particularly unfair, as they transfer all revenue from the creator to the claimant, regardless of the amount of music claimed,” explained YouTube in a blog post.

To be clear, the changes only involve YouTube’s Manual Claiming tool which is not how the majority of copyright violations are handled today. Instead, the majority of claims are created through YouTube’s Content ID match system. This system scans videos uploaded to YouTube against a database of files submitted to the site by copyright owners. Then, when a match is found, the copyright holder owner can choose to block the video or monetize it themselves, and track the video’s viewership stats. 

The Manual Claiming tool, on the other hand, is only offered to partners who understand how Content ID works. It allows them to search through publicly available YouTube videos to look for those containing their content and apply a claim when a match is found.

The problem with the Manual Claiming policy is that is was impacting creator content even when the use of the claimed music in videos was very short — even a second long — or unintentional. For example, a creator who was vlogging may have walked past a store that was playing the copyrighted song, but then could lose the revenue from their video as a result.

In April, YouTube said it was looking to address this problem. And just ahead of this year’s VidCon, YouTube announced several well-received changes to the Manual Claiming Policy. It began to require that copyright owners specify the timestamp in the video where the claim occurs — a change that YouTube hoped would create additional friction and cut down on abuse.

Creators were also given tools of their own that let them easily remove the clip or replace the infringing content with free-to-use tracks.

These newly announced changes go even further as they remove the ability for the copyright owner to monetize the infringing video at all. Copyright holders can now only prevent the creators themselves from monetizing the video, or they can block the content. However, given the new creator tools for handling infringing content, it’s likely that creators in those situations would just address the problem content in order to keep their video online.

“As always, the best way to avoid these issues is to not use unlicensed content in your videos, even when it’s unintentional music playing in the background,” noted YouTube.

It also urged creators to utilize its resources like the YouTube Audio Library and to read up on YouTube’s dispute process policies before uploading content that the creator believes is a copyright exception due to  Fair Use.

YouTube says the changes will apply to all new manual claims, starting in mid-September.

Once enforcement begins, copyright owners who repeatedly fail to adhere to the policies will lose access to the Manual Claiming tool.

The response from the creator community, not surprisingly, has been positive as creators thanked YouTube for finally listening to them and responding to their concerns over this sort of copyright claim abuse.

 

16 Aug 2019

Protein replacement startups are coming for food additives as Shiru launches from Y Combinator

Shiru, a new company that’s launching from the latest batch of Y Combinator-backed startups, is joining the ranks of the businesses angling for a spot at the vanguard of the new food technology revolution.

The company was founded by Jasmin Hume, the former director of food chemistry at Just (the company formerly known as Hampton Creek) and takes its name from a homophone of the Chinese shi rou (which Hume has roughly translated to an examination of meat). At Just, Hume was working with a team that was fractionating plants to look at their physical properties to identify what products could be made from the various proteins and chemicals researchers found in the plants.

Shiru, by contrast, is using computational biology to find the ideal proteins for specific applications in the food industry.

The company’s looking at what proteins are best for creating certain kinds of qualities that are used in food additives, things like viscosity building, solubility, foam stability, emulsification, and biding, according to Hume.

In some ways, Hume’s approach looks similar to the early product roadmap for Geltor, a company backed by SOSV and IndieBio that was also looking to make functional proteins. The company, which has raised over $18 million to date, shifted its attention to proteins for the beauty industry and cosmetics instead of food — potentially leaving an opening for Shiru to exploit.

 Still in its early days, Shiru doesn’t have a product nailed down yet, but the company the science the company is exploring is increasingly well understood, and Hume says it’s looking at several different genetically engineered feedstocks — from yeasts to undisclosed strains of bacteria and fungi to make its proteins. 

“We use the power of molecular design and machine learning to identify protein structures that are more functional than existing alternatives,” says Hume. “The proteins that we are screening for are inspired by nature.”

Hume’s path to founding Shiru involves quite the pedigree. Before Just, she received her doctorate in materials chemistry from New York University, and she’d spent a stretch as a summer associate at the New York-based frontier technology-focused investment firm Lux Capital.

Hume expects to begin pilot production of initial proteins later this year and be producing small but repeatable quantities by the end of 2020.

The company hasn’t raised any outside capital before Y Combinator and is currently in the process of raising a round, Hume said.

 

16 Aug 2019

How-to: Exhibit for free in Startup Alley at Disrupt Berlin 2019

We love a good how-to, especially one that saves early-stage startup founders money and positions them for mad success. We’re talking about how to apply to be a TC Top Pick and exhibit at Disrupt Berlin 2019 — for free.

Our TC Top Picks program is what we call a pre-Disrupt competition. If you’re a founder of an early-stage startup this is your chance to win a free Startup Alley Exhibitor Package and a VIP experience in Berlin. How does it all work? Read on!

First, fill out an application if your startup falls into one of these tech categories: AI/Machine Learning, Biotech/Healthtech, Blockchain, Fintech, Mobility, Privacy/Security, Retail/E-commerce, Robotics/IoT/Hardware, CRM/Enterprise and Education.

TechCrunch editors closely vet each application — and these editors have an almost-mystical ability to spot serious success potential. Ultimately, they’ll choose up to five of the best representatives for each category.

A Startup Alley Exhibitor Package includes one exhibit day, three Founder passes, access to the full conference and all programming at the event.

TC Top Picks attract a lot of attention at the show, and it’s a networking wonderland. You’ll meet investors, potential customers and future collaborators who can help you move to the next level. Plus, you’ll be interviewed by a TechCrunch editor live on the Showcase Stage. We’ll record that interview and promote it on our social media platforms. Talk about a great long-term marketing tool.

Take a page from Caleb John’s playbook. Here’s what the CEO of Cedar Robotics said about exhibiting as a TC Top Pick:

“It blew away my expectations. The number of people we met, the connections we made and the amount of media exposure we received is worth its weight in gold.”

And another thing! You — and all the other exhibiting startups — might even win a chance to compete in Startup Battlefield. TechCrunch editors will choose a startup as a Wild Card competitor, and they’ll compete for $50,000. It’s a longshot, but it sure paid off for RecordGram. They won the Wild Card and then won the Battlefield. Can lightning strike twice?

Disrupt Berlin 2019 takes place on 11-12 December. Don’t miss your opportunity to showcase your outstanding startup in Startup Alley and enjoy a VIP experience — for free. Apply to our TC Top Picks program today.

16 Aug 2019

China’s Transsion and Kenya’s Wapi Capital partner on Africa fund

Chinese mobile-phone and device maker Transsion is teaming up with Kenya’s Wapi Capital to source and fund early-stage African fintech startups.

Headquartered in Shenzhen, Transsion is a top-seller of smartphones in Africa that recently confirmed its imminent IPO.

Wapi Capital is the venture fund of Kenyan fintech startup Wapi Pay—a Nairobi based company that facilitates digital payments between African and Asia via mobile money or bank accounts.

Investments for the new partnership will come from Transsion’s Future Hub, an incubator and seed fund for African startups opened by Transsion in 2019.

Starting September 2019, Transsion will work with Wapi Capital to select early-stage African fintech companies for equity-based investments of up to $100,000, Transsion Future Hub Senior Investor Laura Li told TechCrunch via email.

Wapi Capital won’t contribute funds to Transsion’s Africa investments, but will help determine the viability and scale of the startups, including due diligence and deal flow, according to Wapi Pay co-founder Eddie Ndichu.

Wapi Pay and Transsion Future Hub will consider ventures from all 54 African countries and interested startups can reach out directly to either organization, Ndichu and Li confirmed.

The Wapi Capital fintech partnership is not Transsion’s sole VC focus in Africa. Though an exact fund size hasn’t been disclosed, the Transsion Future Hub will also make startup investments on the continent in adtech, fintech, e-commerce, logistics, and media and entertainment, according to Li.

Transsion Future Hub’s existing portfolio includes Africa focused browser company Phoenix, content aggregator Scoop, and music service Boomplay.

Wapi Capital adds to the list of African located and run venture funds—which have been growing in recent years—according to a 2018 study by TechCrunch and Crunchbase. Wapi Capital will also start making its own investments and is looking to raise $1 million this year and $10 million over the next three years, according to Ndichu, who co-founded the fund and Wapi Pay with his twin brother Paul.

Transsion’s commitment to African startup investments comes as the company is on the verge of listing on China’s new Nasdaq-style STAR Market tech exchange. Transsion confirmed to TechCrunch this month the IPO is in process and that it could raise up to 3 billion yuan (or $426 million).

Transsion sold 124 million phones globally in 2018, per company data. In Africa, Transsion holds 54% of the feature phone market — through its brands Tecno, Infinix and Itel — and in smartphone sales is second to Samsung and before Huawei, according to International Data Corporation stats.

Transsion has R&D centers in Nigeria and Kenya and its sales network in Africa includes retail shops in Nigeria, Kenya, Tanzania, Ethiopia and Egypt. The company also has a manufacturing facility in Ethiopia.

Transsion’s move into venture investing tracks greater influence from China in African tech.

China’s engagement with African startups has been light compared to China’s deal-making on infrastructure and commodities.

Transsion’s Wapi Pay partnership is the second recent event — after Chinese owned Opera’s big venture spending in Nigeria — to reflect greater Chinese influence and investment in the continent’s digital scene.

 

 

 

 

 

 

 

16 Aug 2019

Twitter leads $100M round in top Indian regional social media platform ShareChat

Is there room for another social media platform? ShareChat, a four-year-old social network in India that serves tens of million of people in regional languages, just answered that question with a $100 million financing round led by global giant Twitter .

Other than Twitter, TrustBridge Partners, and existing investors Shunwei Capital, Lightspeed Venture Partners, SAIF Capital, India Quotient and Morningside Venture Capital also participated in the Series D round of ShareChat.

The new round, which pushes ShareChat’s all-time raise to $224 million, valued the firm at about $650 million, a person familiar with the matter told TechCrunch. ShareChat declined to comment on the valuation.

sharechat screenshot

Screenshot of Sharechat home page on web

“Twitter and ShareChat are aligned on the broader purpose of serving the public conversation, helping the world learn faster and solve common challenges. This investment will help ShareChat grow and provide the company’s management team access to Twitter’s executives as thought partners,” said Manish Maheshwari, managing director of Twitter India, in a prepared statement.

Twitter, like many other Silicon Valley firms, counts India as one of its key markets. And like Twitter, other Silicon Valley firms are also increasingly investing in Indian startups.

ShareChat serves 60 million users each month in 15 regional languages, Ankush Sachdeva, co-founder and CEO of the firm, told TechCrunch in an interview. The platform currently does not support English, and has no plans to change that, Sachdeva said.

That choice is what has driven users to ShareChat, he explained. The early incarnation of the social media platform supported English language. It saw most of its users choose English as their preferred language, but this also led to another interesting development: Their engagement with the app significantly reduced.

The origin story

“For some reason, everyone wanted to converse in English. There was an inherent bias to pick English even when they did not know it.” (Only about 10% of India’s 1.3 billion people speak English. Hindi, a regional language, on the other hand, is spoken by about half a billion people, according to official government figures.)

So ShareChat pulled support for English. Today, an average user spends 22 minutes on the app each day, Sachdeva said. The learning in the early days to remove English is just one of the many things that has shaped ShareChat to what it is today and led to its growth.

In 2014, Sachdeva and two of his friends — Bhanu Singh and Farid Ahsan, all of whom met at the prestigious institute IIT Kanpur — got the idea of building a debate platform by looking at the kind of discussions people were having on Facebook groups.

They identified that cricket and movie stars were popular conversation topics, so they created WhatsApp groups and aggressively posted links to those groups on Facebook to attract users.

It was then when they built chatbots to allow users to discover different genres of jokes, recommendations for phones and food recipes, among other things. But they soon realized that users weren’t interested in most of such offerings.

“Nobody cared about our smartphone recommendations. All they wanted was to download wallpapers, ringtones, copy jokes and move on. They just wanted content.”

sharechat team

So in 2015, Sachdeva and company moved on from chatbots and created an app where users can easily produce, discover and share content in the languages they understand. (Today, user generated content is one of the key attractions of the platform, with about 15% of its user base actively producing content.)

A year later, ShareChat, like tens of thousands of other businesses, was in for a pleasant surprise. India’s richest man, Mukesh Ambani, launched his new telecom network Reliance Jio, which offered users access to the bulk of data at little to no charge for an extended period of time.

This immediately changed the way millions of people in the country, who once cared about each megabyte they consumed online, interacted with the internet. On ShareChat people quickly started to move from sharing jokes and other messages in text format to images and then videos.

Path ahead and monetization

That momentum continues to today. ShareChat now plans to give users more incentive — including money — and tools to produce content on the platform to drive engagement. “There remains a huge hunger for content in vernacular languages,” Sachdeva said.

Speaking of money, ShareChat has experimented with ads on the app and its site, but revenue generation isn’t currently its primary focus, Sachdeva said. “We’re in the Series D now so there is obviously an obligation we have to our investors to make money. But we all believe that we need to focus on growth at this stage,” he said.

ShareChat also has many users in Bangladesh, Nepal and the Middle East, where many users speak Indian regional languages. But the startup currently plans to focus largely on expanding its user base in India.

It will use the new capital to strengthen the technology infrastructure and hire more tech talent. Sachdeva said ShareChat is looking to open an office in San Francisco to hire local engineers there.

A handful of local and global giants have emerged in India in recent years to cater to people in small cities and villages, who are just getting online. Pratilipi, a storytelling platform has amassed more than 5 million users, for instance. It recently raised $15 million to expand its user base and help users strike deals with content studios.

Perhaps no other app poses a bigger challenge to ShareChat than TikTok, an app where users share short-form videos. TikTok, owned by one of the world’s most valued startups, has over 120 million users in India and sees content in many Indian languages.

But the app — with its ever growing ambitions — also tends to land itself in hot water in India every few weeks. In all sensitive corners of the country. On that front, ShareChat has an advantage. Over the years, it has emerged as an outlier in the country that has strongly supported proposed laws by the Indian government that seek to make social apps more accountable for content that circulates on their platforms.

15 Aug 2019

Apple is suing Corellium

Apple is suing virtualization software company Corellium, according to documents filed today in Florida.

Corellium allows customers to create and interact with virtual iOS devices — a software iPhone, for example, running actual iOS firmware, all within the browser. Apple says this is copyright infringement, and is demanding Corellium stops “all uses of” its iOS virtualization products and pays Apple unspecified “damages and lost profits”

Corellium could allow, for example, a security researcher to quickly fire up a simulated iPhone and hunt for potential bugs. If one is discovered, they can quickly load up prior versions of iOS to see how long this bug has been around. If a bug “bricks” the virtual iOS device and renders it unusable, it’s a matter of just booting up a new one rather than obtaining a whole new phone. Virtualized devices can be paused, giving researchers a detailed look at its precise state at any given moment .

Forbes did a deep dive on the company last year. As they point out, two of the company’s co-founders were some of the earliest members of the iPhone jailbreak scene, giving them an understanding better than nearly anyone else in the world as to how iPhones, iPads, etc work under the hood.

In its complaint, Apple writes:

The product Corellium offers is a “virtual” version of Apple mobile hardware products, accessible to anyone with a web browser. Specifically, Corellium serves up what it touts as a perfect digital facsimile of a broad range of Apple’s market-leading devices—recreating with fastidious attention to detail not just the way the operating system and applications appear visually to bona fide purchasers, but also the underlying computer code. Corellium does so with no license or permission from Apple.

This news comes just days after Apple announced that it would be launching a “iOS Security Research Device Program”, in which select security researchers would be given access to less-locked down iOS devices in order to help them find vulnerabilities.

15 Aug 2019

Toolkit for digital abuse could help victims protect themselves

Domestic abuse comes in digital forms as well as physical and emotional, but a lack of tools to address this kind of behavior leaves many victims unprotected and desperate for help. This Cornell project aims to define and detect digital abuse in a systematic way.

Digital abuse may be many things: hacking the victim’s computer, using knowledge of passwords or personal date to impersonate them or interfere with their presence online, accessing photos to track their location, and so on. As with other forms of abuse, there are as many patterns as there are people who suffer from it.

But with something like emotional abuse, there are decades of studies and clinical approaches to address how to categorize and cope with it. Not so with newer phenomena like being hacked or stalked via social media. That means there’s little standard playbook for them, and both abused and those helping them are left scrambling for answers.

“Prior to this work, people were reporting that the abusers were very sophisticated hackers, and clients were receiving inconsistent advice. Some people were saying, ‘Throw your device out.’ Other people were saying, ‘Delete the app.’ But there wasn’t a clear understanding of how this abuse was happening and why it was happening,” explained Diana Freed, a doctoral student at Cornell Tech and co-author of a new paper about digital abuse.

“They were making their best efforts, but there was no uniform way to address this,” said co-author Sam Havron. “They were using Google to try to help clients with their abuse situations.”

Investigating this problem with the help of a National Science Foundation grant to examine the role of tech in domestic abuse, they and some professor collaborators at Cornell and NYU came up with a new approach.

There’s a standardized questionnaire to characterize the type of tech-based being experienced. It may not occur to someone who isn’t tech-savvy that their partner may know their passwords, or that there are social media settings they can use to prevent that partner from seeing their posts. This information and other data are added to a sort of digital presence diagram the team calls the “technograph” and which helps the victim visualize their technological assets and exposure.

technograph filled

The team also created a device they call the IPV Spyware Discovery, or ISDi. It’s basically spyware scanning software loaded on a device that can check the victim’s device without having to install anything. This is important because an abuser may have installed tracking software that would alert them if the victim is trying to remove it. Sound extreme? Not to people fighting a custody battle who can’t seem to escape the all-seeing eye of an abusive ex. And these spying tools are readily available for purchase.

“It’s consistent, it’s data-driven and it takes into account at each phase what the abuser will know if the client makes changes. This is giving people a more accurate way to make decisions and providing them with a comprehensive understanding of how things are happening,” explained Freed.

Even if the abuse can’t be instantly counteracted, it can be helpful simply to understand it and know that there are some steps that can be taken to help.

The authors have been piloting their work at New York’s Family Justice Centers, and following some testing have released the complete set of documents and tools for anyone to use.

This isn’t the team’s first piece of work on the topic — you can read their other papers and learn more about their ongoing research at the Intimate Partner Violence Tech Research program site.

15 Aug 2019

Cloudflare has a third cofounder, Lee Holloway, who’s credited with making the company what is today

Not every cofounder is acknowledged at the companies that they help to launch. Sometimes, they quit or they’re elbowed out. Often, they’re conveniently written out the company’s history.

In the case of Cloudflare, a third cofounder who began the company with CEO Matthew Prince and COO Michele Zatlyn is little known outside the company for a very different reason. As Cloudflare states in an S-1 filing IPO filing that it made public today, “Tragically, Lee stepped down from Cloudflare in 2015, suffering the debilitating effects of Frontotemporal Dementia, a rare neurological disease.”

Frontotemporal dementia impacts between 50,000 and 60,000 Americans, according to a rough estimate cited by the Alzheimer’s Association, and it tends to impact younger people, beginning at age 45.

Though the cause isn’t known, a person’s risk for developing frontotemporal dementia — wherein the frontal and temporal lobes of the brain shrink — is higher if there’s a family history of dementia, according to the Mayo Clinic.

Cloudflare did not respond today to questions about Holloway, but Prince and Zatlyn, in a section of the filing addressed to potential shareholders, credit Holloway as the “genius who architected our platform and recruited and led our early technical team.” In fact, they write, when picking a code name for the company’s IPO, they chose “Project Holloway” to honor his contribution because the “technical decisions Lee made, and the engineering team he built, are fundamental to the business we have become.”

Holloway’s beneficiaries will be rewarded for that work. According to the S-1, trusts affiliated with him own 18% of the company’s Series A shares (or common shares) and 3.2% of the company’s total outstanding shares. Prince meanwhile owns 20.2% of the company’s class B shares and 16.6% of all outstanding shares, and Zatlyn has 6.8% of the company’s class B shares and 5.6% of the overall shares outstanding.

If Cloudflare goes public at the $3.2 billion valuation it was last assigned by its private investors, Holloway’s family and other trust recipients could see upwards of $100 million.

That’s none too shabby for a computer geek who attended Monte Vista High School in Danville, Calif., before working as an engineer at the bubble-era home improvement site HomeWarehouse.com, whose assets were sold in 2000 to Wal-mart.com. Though an apparent fire sale, then-CEO Jeanne Jackson told the San Francisco Chronicle of the startup, “We are very impressed with the commerce platform developed by the Homewarehouse.com team.”

Holloway later headed to UC Santa Cruz, where he studied computer science and was introduced through a professor to Prince, with whom he built Unspam Technologies, an anti-spam startup where Holloway says on LinkedIn that he was chief software architect, and where Prince continues to serve as chairman. They two also co-created Project Honey Pot, an open source community that still tracks online fraud and abuse.

Zatlyn would enter the picture soon after. According to Cloudflare, in 2009, Prince had taken a sabbatical from work to get his MBA from Harvard Business School and it was when he began telling Zatlyn, a classmate, about Project Honey Pot and its community of users, she helped him recognize a related opportunity in not just tracking internet threats but also stopping them. While they worked on the business plan as part of their studies, Holloway built the first working prototype.

By 2010, they were pitching investors at a TechCrunch Disrupt as one of the event’s “battlefield” participants.

Holloway wasn’t on stage for that demonstration. He might have preferred to operate in the background given the nature of his work. Indeed, in the first of just three tweets he has ever published, he wrote simply, “Pondering the nature of web exploits.”

Pictured above: Cloudflare cofounders Zatlyn, Holloway, and Prince.