Category: UNCATEGORIZED

14 Aug 2019

Another day, another reversal in stock fortunes as recession fears grow

U.S. stock markets plummeted today as recession fears continue to grow.

Yesterday’s good news about a reprieve on tariffs for U.S. consumer imports was undone by increasing concerns over economic indicators pointing to a potential global recession coming within the next year.

The Dow Jones Industrial Average dropped more than 800 points on Wednesday — its largest decline of the year — while the S&P 500 fell by 85 points and the tech-heavy Nasdaq dropped 240 points.

The downturn in the markets came a day after the Dow closed up 373 points after the U.S. Trade Representative announced a delay in many of the import taxes imposed by the Trump administration planned to impose on Chinese goods.

In the U.S. it was concerns over the news that the yield on 10-year U.S. Treasury notes had dipped below the yield of two-year notes. It’s an indicator that investors think the short term prospects for a country’s economic outlook are better than the long-term outlook for economic health.

China’s industrial and retail sectors both slowed significantly in July. Industrial production including manufacturing, mining and utilities grew by 4.8 percent in July (a steep decline from 6.3% growth in June).  Meanwhile retail sales in the country slowed to 7.6 percent, down from 9.8 percent in June.

Germany also posted declines over the summer months indicating that its economy had contracted by 0.1% in the three months to June.

Globally, the protracted trade war between the U.S. and China are weighing on economies — as are concerns about what a hard Brexit would mean for the economies in the European Union .

The stocks of Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, and Salesforce, were all off by somewhere between 2.5% and 4.5% in today’s trading.

14 Aug 2019

Fantasy football startup Sleeper nabs VC funding to take on ESPN

Sleeper is looking to take on fantasy league apps from major players like ESPN and has amassed venture funding from Silicon Valley investors to take down them down.

The Bay Area startup is aiming to treat a fantasy football league more like a social platform than a loose jumble of league mechanics, distinguishing itself as a simple and free, ad-free option.

Sleeper has done limited press as it has been ramping up its apps over the past two seasons, but the team has been courting the interest of investors to scale the product, raising over $7 million from VCs to date. The company closed a $5.3 million Series A late last year led by General Catalyst. In early 2017, the startup also closed a $2 million seed led by Birchmere Ventures with participation from Uber co-founder Garrett Camp’s startup studio Expa.

There isn’t much in terms of monetization options at the moment, CEO Nan Wang tells TechCrunch that the focus right now is “amassing a large base of users and making it the stickiest and highest engagement product in the category.”

Wang says the app’s users spend 50 minutes per day on average during the season, numbers he calls “Instagram-like.” The main contributor to that number seems to be that chat is always a swipe away and that all of the actions that are happening during the season show up inside chats to encourage engagement.

This unifies the experience for users, many of whom have had to piecemeal their experience by using a WhatsApp or GroupMe group in addition to the other fantasy league apps that they’ve been using. Sleeper’s more differentiated UI seems to be largely popular among early vocal users as well as the up-to-the-minute notifications that deliver league updates.

Screen Shot 2019 08 14 at 1.41.00 PM

Poaching users from other platforms is definitely a priority, but Wang says the team has really been looking at how to nab users who have stayed away from the convoluted confusion of fantasy leagues as well. Taking on the leading apps from ESPN, Yahoo and NFL can be daunting, another stress for the younger startup is just how tight the user acquisition window is, though things compound quickly if you can create one loyal user that brings their entire league to the platform.

“The user acquisition window for fantasy football leagues is strongest from the second week of August until the first week of September. Historically, we’ve seen that about 70% of users create their leagues in that three-week window,” Wang tells me.

The funding has been used to build out its team, which is still just 10 full-time employees, as well as expand their ambitions beyond fantasy football alone into other sports including basketball and soccer.

14 Aug 2019

Audi e-tron becomes the first all-electric vehicle to earn IIHS top safety rating

The 2019 Audi e-tron has become the first battery-electric vehicle to earn a top safety rating from the Insurance Institute for Highway Safety, an achievement that Tesla and other electric models like the Chevy Bolt have not been able to capture.

Scoring an IIHS top safety award isn’t easy. A vehicle has to earn good ratings in six crashworthiness evaluations, as well as an advanced or superior rating for front crash prevention and a good headlight rating.

IIHS said Wednesday that the e-tron fulfills the criteria to earn a top safety rating with standard equipment. The vehicle performed well in crashworthiness testing, earning good ratings in the driver-side small overlap front, passenger-side small overlap front, moderate overlap front, side, roof strength and head restraint tests, according to IIHS.

The SUV’s standard front crash prevention system rated superior in IIHS track tests. It avoided a collision in the 25-mph test and reduced its impact speed by an average of 11 mph in the 12-mph test. Its forward collision warning component meets National Highway Traffic Safety Administration criteria.

The award provides a much needed boost to the e-tron. There’s a lot riding on the e-tron, the German automaker’s first mass-produced electric vehicle. And while TechCrunch’s Matt Burns found it quick, comfortable and familiar, the vehicle has had a rocky start that included a voluntary recall in the U.S. due to the risk of battery fire.

Tesla has gotten close to the top safety pick designation. A Tesla Model S was tested in 2017 and performed well, but fell short of earning the top score due to poor headlights and an “acceptable” score in the small overlap crash test. The IIHS has never tested the Tesla Model X.

The electric automaker does have another chance. This time, it’s with the Tesla Model 3, which IIHS is currently testing, according to a recent tweet from the organization.

The Model 3 has already achieved an all-around five-star safety rating from the National Highway Traffic and Safety Administration. Despite the high marks, NHTSA and Tesla have tussled over how the automaker has characterized the rating in an October 7 blog post when it said the Model 3 had achieved the lowest probability of injury of any vehicle the agency ever tested.

Earlier this month, Hyundai hydrogen fuel cell SUV, the Nexo, became the first fuel cell vehicle to be tested and to earn IIHS’s top safety award. 

14 Aug 2019

Every TC Sessions: Enterprise 2019 ticket includes a free pass to Disrupt SF

Shout out to all the savvy enterprise software startuppers. Here’s a quick, two-part money-saving reminder. Part one: TC Sessions: Enterprise 2019 is right around the corner on September 5, and you have only two days left to buy an early-bird ticket and save yourself $100. Part two: for every Session ticket you buy, you get one free Expo-only pass to TechCrunch Disrupt SF 2019.

Save money and increase your ROI by completing one simple task: buy your early-bird ticket today.

About 1,000 members of enterprise software’s power-house community will join us for a full day dedicated to exploring the current and future state of enterprise software. It’s certainly tech’s 800-pound gorilla — a $500 billion industry. Some of the biggest names and brightest minds will be on hand to discuss critical issues all players face — from early-stage startups to multinational conglomerates.

The day’s agenda features panel discussions, main-stage talks, break-out sessions and speaker Q&As on hot topics including intelligent marketing automation, the cloud, data security, AI and quantum, just to name a few. You’ll hear from people like SAP CEO Bill McDermott, Aaron Levie, Box co-founder, Jim Clarke, Director of Quantum Hardware at Intel and many many more.

Customer experience is always a hot topic, so be sure to catch this main-stage panel discussion with Amit Ahuja (Adobe), Julie Larson-Green (Qualtrics) and Peter Reinhardt (Segment).

The Trials and Tribulations of Experience Management: As companies gather more data about their customers and employees, it should theoretically improve their experience, but myriad challenges face companies as they try to pull together information from a variety of vendors across disparate systems, both in the cloud and on prem. How do you pull together a coherent picture of your customers, while respecting their privacy and overcoming the technical challenges?

TC Sessions: Enterprise 2019 takes place in San Francisco on September 5. Take advantage of this two-part money-saving opportunity. Buy your early-bird ticket by August 16 at 11:59 p.m. (PT) to save $100. And score a free Expo-only pass to TechCrunch Disrupt SF 2019 for every ticket you buy. We can’t wait to see you in September!

Interested in sponsoring TC Sessions: Enterprise? Fill out this form and a member of our sales team will contact you.

14 Aug 2019

WW launches Kurbo, a hotly debated ‘healthy eating’ app aimed at kids

Kurbo Health, a mobile weight loss solution designed to tackle childhood obesity which was acquired for $3 million by WW (the rebranded Weight Watchers), has now relaunched as Kurbo by WW — and not without some controversy. Pre-acquisition, the startup was focused on democratizing access to research, behavior modification techniques, and other tools that were previously only available through expensive programs run by hospitals or other centers.

As a WW product, however, there are concerns that parents putting kids on “diets” will lead to increased anxiety, stress, and disordered eating — in other words, Kurbo will make the problem worse, rather than solving it.

The Kurbo app first launched at TechCrunch Disrupt NY 2014. Founder Joanna Strober, a venture investor and board member at BlueNile and eToys, explained she was driven to develop Kurbo after struggling to help her own child. Mainly, she came across programs that cost money, were held at inconvenient times for working parents, or were dubbed “obesity centers” — which no child wanted to be associated with.

Her child found eventual success with the Stanford Pediatric Weight Loss Program, but this involved in-person visits and pen-and-paper documentation.

Together with Kurbo Health’s co-founder Thea Runyan, who has a Masters in Public Health and had worked at the Stanford center for 12 years, the team realized the opportunity to bring the research to more people by creating a mobile, data-driven program for kids and families.

They licensed Stanford’s program, which then became Kurbo Health.

FoodSystem Phone

The company raised funds from investors including Signia Ventures, Data Collective, Bessemer Venture Partners, Promus Ventures, as well as angels like Susan Wojcicki, CEO of YouTube; Greg Badros, former VP Engineering and Product at Facebook; and Esther Dyson (EdVenture), among others.

At launch, the app was designed to encourage healthier eating patterns without parents actually being able to see the child’s food diary. Instead, parents set a reward that was doled out simply for the child’s participation. That is, the parents couldn’t see what the child ate, specifically, which allowed them to stop playing “food police.”

ProfileStreak Phone

Unlike adult-oriented apps like MyFitnessPal or Noom, kids wouldn’t see metrics like calories, sugars, carbs and fat, but instead had their food choices categorized as “red,” “yellow,” and “green.” However, no foods were designated as “off limits,” as it instead encouraged fewer reds and more greens.

The program also included an option for virtual coaching.

As a WW product, the program has remained somewhat the same. There are still the color-coded food categorizations and optional live coaching, via a subscription. The app also now includes tools that teach meditation, recipe videos, and games that focus on healthy lifestyles. Subscribers gain access to one-on-one 15-minute virtual sessions with coaches whose professional backgrounds include counseling, fitness and other nutrition-related fields.

However, there are also things like a place to track measurements, goals like “lose weight,” and Snapchat-style “tracking streaks.”

Home Tracked Phone

 

While the original program was designed to be a solution for parents with children who would have otherwise had to seek expensive medical help for obesity issues, the association with parent company and acquirer WW has led to some backlash.

CoachingChat Phone

Today, body positivity and fat acceptance movements have gone mainstream, encouraging people to be confident in their own bodies and not hate themselves for being overweight. The general thinking is that when people respect themselves, they become more likely to care for themselves — and this will extend to making healthier food and lifestyle choices.

Meanwhile, food tracking and dieting programs often lead to failure and shame — especially when people start to think of some food as “bad” or a “cheat,” instead of just something to be eaten in moderation. And excessive tracking can even lead to disordered eating patterns for some people, studies have found.

In addition, WW has already been under fire for extending its weight loss program to teens 13-17 for free, and the launch of what’s seen as a “dieting app for kids” certainly isn’t helping the backlash.

That said, when positive reinforcement is used correctly, it can work for weight loss. As TIME reported, the red-yellow-green traffic light approach was effective in adults in one independent study by Massachusetts General Hospital and another by presented at the Biennial Childhood Obesity Conference worked in children, with 84% reducing their BMI after 21 weeks.

“According to recent reports from the World Health Organization, childhood obesity is one of the most serious public health challenges of the 21st century. This is a global public health crisis that needs to be addressed at scale,” said Joanna Strober, co-founder of Kurbo, in a statement about the launch. “As a mom whose son struggled with his weight at a young age, I can personally attest to the importance and significance of having a solution like Kurbo by WW, which is inherently designed to be simple, fun and effective,” she said.

That said, it’s one thing for a parent to work in conjunction with a doctor to help a child with a health issue, but parents who foist a food tracking app on their kids may not get the same results. In fact, they may even cause the child to develop eating disorders that weren’t present before. (And no, just because a child is overweight, that doesn’t necessarily mean they’re suffering from an “eating disorder.”)

 

There can be many other factors that could be causing a child’s unexpected weight gain, beyond just their interest in eating high-calorie foods. This includes health ailments, hormone or chemical imbalances, medication side effects, puberty and other growth spurts, genetics, and more.

Parents may also be part of the problem, by simply bringing unhealthy food into the house because it’s more affordable or because they aren’t aware of things like hidden sugars or how to avoid them. Or perhaps they’re putting money into a child’s school lunch account, without realizing the child is able to spend it on vending machine snacks, sodas, or off-menu items like pizza and chips.

The child may also suffer from health problems like asthma or allergies that have become an underlying issue, making it more difficult for them to be active.

In other words, a program like this is something that parents should approach with caution. And it’s certainly one where the child’s doctor should be involved at every stage — including whether or not it’s actually needed at all.

14 Aug 2019

Credit Karma glitch exposed users to other people’s accounts

Users of credit monitoring site Credit Karmas have complained that they were served other people’s account information when they logged in.

Many took to a Reddit thread and complained on Twitter about the apparent security lapse.

“First time logging in it gave me my information, but as soon as I refreshed the screen, it gave me someone else’s info,” said one Reddit user. “Refreshed again and bam! someone else’s info — it’s like roulette.” Another user said they logged in and out several times and each time they had “full access to a different random person’s credit file,” they said.

One user told TechCrunch that after they were served another person’s full credit report, they messaged the user on LinkedIn “to let him know his data was compromised.”

Another user told us this:

The reports are split into two sections: Credit Factors — things like number of accounts, inquiries, utilization; and Credit Reports — personal information like name, address, etc.. The Credit Reports section was my own information, but the Credit Factors section definitely wasn’t. It listed four credit card accounts (I have more like 20 on my report), a missed payment (I’m 100% on time with payments), a Honda auto loan (never had one with Honda), student loan financing (mine are paid off and too old to appear on my report), and cards with an issuer that I have no relationship with (Discover).

Several screenshots seen by TechCrunch show other people’s accounts, including details about their credit card accounts and their current balance.

Another user said that the login page was pulled offline for a brief period. “We’ll be right back,” the login page read instead.

Credit Karma spokesperson Emily Donohue denied there was a data breach, but when asked would not say how many customers were affected.

“What our members experienced this morning was a technical malfunction that has now been fixed. There is no evidence of a data breach,” the statement said.

The company didn’t say for how long customers were experiencing issues.

Credit Karma offers customers free credit score monitoring and reports. The company allows users to check their scores against several major credit agencies, including Equifax, which last month was fined at least $575 million for a 2017 data breach.

14 Aug 2019

Artificial intelligence can contribute to a safer world

We all see the headlines nearly every day. A drone disrupting the airspace in one of the world’s busiest airports, putting aircraft at risk (and inconveniencing hundreds of thousands of passengers) or attacks on critical infrastructure.  Or a shooting in a place of worship, a school, a courthouse.  Whether primitive (gunpowder) or cutting-edge (unmanned aerial vehicles) in the wrong hands, technology can empower bad actors and put our society at risk, creating a sense of helplessness and frustration.

Current approaches to protecting our public venues are not up to the task, and, frankly appear to meet Einstein’s definition of insanity: “doing the same thing over and over and expecting a different result.”  It is time to look past traditional defense technologies and see if newer approaches can tilt the pendulum back in the defender’s favor.  Artificial Intelligence (AI) can play a critical role here, helping to identify, classify and promulgate counteractions on potential threats faster than any security personnel.

Using technology to prevent violence, specifically by searching for concealed weapons has a long history. Alexander Graham Bell invented the first metal detector in 1881 in an unsuccessful attempt to locate the fatal slug as President James Garfield lay dying of an assassin’s bullet. The first commercial metal detectors were developed in the 1960s. Most of us are familiar with their use in airports, courthouses and other public venues to screen for guns, knives and bombs.

However, metal detectors are slow and full of false positives – they cannot distinguish between a Smith & Wesson and an iPhone.  It is not enough to simply identify a piece of metal; it is critical to determine whether it is a threat.  Thus, the physical security industry has developed newer approaches, including full-body scanners – which are now deployed on a limited basis. While effective to a point, the systems in use today all have significant drawbacks. One is speed. Full body scanners, for example, can process only about 250 people per hour, not much faster than a metal detector. While that might be okay for low volume courthouses, it’s a significant problem for larger venues like a sporting arena.

Image via Getty Images

Fortunately, new AI technologies are enabling major advances in physical security capabilities. These new systems not only deploy advanced sensors to screen for guns, knives and bombs, they get smarter with each screen, creating an increasingly large database of known and emerging threats while segmenting off alarms for common, non-threatening objects (keys, change, iPads, etc.)

As part of a new industrial revolution in physical security, engineers have developed a welcomed approach to expediting security screenings for threats through machine learning algorithms, facial recognition, and advanced millimeter wave and other RF sensors to non-intrusively screen people as they walk through scanning devices.  It’s like walking through sensors at the door at Nordstrom, the opposite of the prison-like experience of metal detectors with which we are all too familiar.  These systems produce an analysis of what someone may be carrying in about a hundredth of a second, far faster than full body scanners. What’s more, people do not need to empty their pockets during the process, further adding speed. Even so, these solutions can screen for firearms, explosives, suicide vests or belts at a rate of about 900 people per hour through one lane.

Using AI, advanced screening systems enable people to walk through quickly and provide an automated decision but without creating a bottleneck. This volume greatly improves traffic flow while also improving the accuracy of detection and makes this technology suitable for additional facilities such as stadiums and other public venues such as Lincoln Center in New York City and the Oakland airport.

Apollo Shield’s anti-drone system.

 

So much for the land, what about the air?   Increasingly drones are being used as weapons. Famously, this was seen in a drone attack last year against Venezuelan president Nicolas Maduro. An airport drone incident drew widespread attention when a drone shut down Gatwick Airport in late 2018 inconveniency stranded tens of thousands of people.

People are rightly concerned about how easy it is to get a gun. Drones are also easy to acquire and operate, and quite difficult to monitor and to defend against. AI is now being deployed to prevent drone attacks, whether at airports, stadiums, or critical infrastructure. For example, new AI-powered radar technology is being used to detect, classify, monitor and safely capture drones identified as dangerous.

Additionally, these systems use can rapidly develop a map of the airspace and effectively create a security “dome” around specific venues or areas. These systems have an integration component to coordinate with on-the-ground security teams and first responders.  Some even have a capture drone to incarcerate a suspicious drone. When a threatening drone is detected and classified by the system as dangerous, the capture drone is dispatched and nets the invading drone. The hunter then tows the targeted drone to a safe zone for the threat to be evaluated and if needed, destroyed.

While there is much dialogue about the potential risk of AI affecting our society, there is also a positive side to these technologies.  Coupled with our best physical security approaches, AI can help prevent violent incidents.

14 Aug 2019

Making sense of the WeWork S-1 (or trying to)

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Today is our promised Equity Shot (a short-form, single-topic episode) on the WeWork S-1. You can read Kate’s notes here, or Alex’s here as a place to start.

Given that we didn’t know when the WeWork S-1 filing was going to make itself known, we put together this episode from TechCrunch’s SF HQ, Alex’s home office, and Kate inside a New York Blue Bottle Coffee. We were not about to let the locational issues stop us from having fun!

Where to begin! WeWork is growing like mad, but it’s hard to tell what its gross margins are. This makes its revenue quality hard to parse. (Alex tried to figure that out here, TechCrunch has even more good questions and notes here). What wasn’t hard to figure out was that WeWork — also known as The We Company — is tectonically unprofitable on operating and net bases. And that the company’s operations consume cash, while its investing activities torch the stuff.

WeWork’s eclectic chief executive officer and co-founder Adam Neumann will maintain a majority of voting rights. It’s not uncommon for founder-led companies to adopt this sort of voting structure and considering how central Neumann is to WeWork’s identity, we weren’t the least bit surprised by this.

The company’s IPO will make a lot of groups a lot of money. Mainly Benchmark, a respected venture capital fund, JP Morgan, and, of course, SoftBank, which has invested billions in WeWork and now owns more than 100 million shares.

And that’s all for now. Don’t miss our episode with Dan Primack that came out yesterday. A busy week, but a good one. Chat again soon!

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercast, Pocket Casts, Spotify, Downcast and all the casts.

14 Aug 2019

Inside Voyage’s plan to deliver a driverless future

In two years, Voyage has gone from a tiny self-driving car upstart spun out of Udacity to a company able to operate on 200 miles of roads in retirement communities.

Now, Voyage is on the verge of introducing a new vehicle that is critical to its mission of launching a truly driverless ride-hailing service. (Human safety drivers not included.)

This internal milestone, which Voyage CEO Oliver Cameron hinted at in a recent Medium post, went largely unnoticed. Voyage, after all, is just a 55-person speck of a startup in an industry, where the leading companies have amassed hundreds of engineers backed by war chests of $1 billion or more. Voyage has raised just $23.6 million from investors that include Khosla Ventures, CRV, Initialized Capital and the venture arm of Jaguar Land-Rover.

Still, the die has yet to be cast in this burgeoning industry of autonomous vehicle technology. These are the middle-school years for autonomous vehicles — a time when size can be misinterpreted for maturity and change occurs in unpredictable bursts.

The upshot? It’s still unclear which companies will solve the technical and business puzzles of autonomous vehicles. There will be companies that successfully launch robotaxis and still fail to turn their service into a profitable commercial enterprise. And there will be operationally savvy companies that fail to develop and validate the technology to a point where human drivers can be removed.

Voyage wants to unlock both.

Crowded field

14 Aug 2019

Daily Crunch: Final Oculus co-founder departs Facebook

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

1. Facebook is losing its last Oculus co-founder

Nate Mitchell, the final Oculus co-founder remaining at Facebook, announced in an internal memo that he’s leaving the company and “taking time to travel, be with family, and recharge.” His role within the company has shifted several times since Oculus was acquired, but his current title is head of product management for virtual reality.

This follows the departures of former Oculus CEO Brendan Iribe and co-founder Palmer Luckey.

2. Twitter tests ways for users to follow and snooze specific topics

The company isn’t getting rid of the ability to follow other users, but it announced yesterday that it will start pushing users to start following topics as well, which will feature highly engaged tweets from a variety of accounts.

3. WeWork’s S-1 misses these three key points

WeWork just released its S-1 ahead of going public, but Danny Crichton argues we still don’t know the health of the core of the company’s business model or fully understand the risks it is undertaking. (Extra Crunch membership required.)

4. CBS and Viacom are merging into a combined company called ViacomCBS

The move is, in some ways, a concession to a turbulent media environment driving large-scale M&A, with AT&T buying Time Warner and Disney acquiring most of Fox — both deals are seen as consolidation in preparation for a streaming-centric future.

5. Nvidia breaks records in training and inference for real-time conversational AI

Nvidia’s GPU-powered platform for developing and running conversational AI that understands and responds to natural language requests has achieved some key milestones and broken some records, with big implications for anyone building on their tech.

6. Corporate carpooling startup Scoop raises $60 million

Scoop, which launched back in 2015, is a corporate carpooling service that works with the likes of LinkedIn, Workday, T-Mobile and more than 50 other companies to help their employees get to and from work.

7. Domino’s launches e-bike delivery to compete with UberEats, DoorDash

Domino’s will start using custom electric bikes for pizza delivery through a partnership with Rad Power Bikes.