Category: UNCATEGORIZED

08 Aug 2019

Uber stock plummets following second-quarter earnings report

Uber disclosed earnings for the second time since becoming a public company, reporting revenues of $3.16 billion on losses of $5.2 billion for the second quarter of 2019.

Uber (NYSE: UBER) closed up more than 9% Thursday at $42.98 per share, just below its $45 IPO price, but took a nose dive more than 11% on the news.

$5.2 billion in net losses represents the company’s largest-ever quarterly loss. Revenue, for its part, is up only 14% year-over-year. The company says a majority of 2Q losses are a result of stock-based compensation expenses for employees following its May IPO.

“While we will continue to invest aggressively in growth, we also want it to be healthy growth, and this quarter we made good progress in that direction,” Uber chief financial officer Nelson Chai said in the earnings document.

Uber’s had a rough few months since making the leaps to the public markets. The stock has tumbled as the business finds it footing. Recently, Uber announced it was laying off one-third of its 1,200-person strong marketing department in an effort to slash costs and make operations more efficient.News of Uber’s piling losses comes one day after its key U.S. competitor, Lyft, beat on revenue with $867 million for the quarter on net losses of $644 million. That’s up from $505 million in revenue in Q2 2018 on losses of $179 million. Lyft closed up 3% Thursday at $62 per share. The company’s stock sunk in after-hours trading Wednesday after it announced the IPO lockup period would end more than a month early.

Uber Eats “monthly active platform consumers,” or MAPCs, grey 140% YoY, Uber said. The company now works with 320,000 restaurants.

This story is updating.

08 Aug 2019

Cultivated data is the next Gold Rush

Five years ago, Frank Meehan, my SparkLabs Global Ventures co-founder, described the goal of our seed-stage fund as follows:

“The future is data. We are looking to invest in companies that are generating valuable data around usage patterns, customer behavior, company information.”

It was prescient — it has guided us well over the years, but also allowed us to look at relevant startups with a critical eye. During the first three years of our fund, we would look at startups — especially in the Internet-of-Things space — that would collect millions of data points, but most companies weren’t willing to pay for such data. Although industries such as insurance are built on data and information, many industries are just beginning to grasp the importance of such insights, especially as our lives integrate into the digital world.

These past few years, I’ve seen a general trend of startups improving how they collect, analyze and present data across numerous industries, and Fortune 1000 companies becoming more willing to pay for such cultivated data.

Industrial manufacturing, search and social media data and a handful of other verticals are long-established gold mines for data information and analytics. What we’re seeing now is that across our portfolio of more than 250 startups, data and analytics is finally being valued and becoming mission critical: It is no longer “just another tool” to have in the toolbox, but is key to a company’s success.

Cultivated data is gold

I define “cultivated data” as existing data (i.e. ERP data, Google Analytics, public health data, inventory data) that is analyzed and developed into a more usable form than it was before. This doesn’t have to be the complex data sets using inordinate amounts of computing power that signifies “big data,” but approaches and techniques to data sets that previously weren’t utilized. Cultivated data isn’t always about volume, variety or velocity of data — it’s more important for the output to be relevant and actionable.

One of our first SparkLabs Global Ventures investments in this space was 42 Technologies. Retailers such as Rebecca Minkoff, AllSaints, Faherty Brand and others have found 42 Technologies’ data analytics invaluable. When 42 Technologies graduated from Y Combinator, it primarily analyzed point-of-sale data to find diamonds in the rough in retailers’ inventory. Today, the company has expanded to using wholesale sell-in data, sell-through data, warehouse inventory data and other data sets to provide multiple insights to retailers.

Even for companies whose core product isn’t data, the data they have access to has become extremely valuable, so new revenue lines are being created. We’ve seen this in less expected areas — ranging from niche e-commerce to pet food to consumer reviews — where for some of these companies, data has become one of the primary sources of revenues.

For example, Vizio, a large consumer electronics manufacturer (more than $3 billion in revenue), has accumulated the largest single source of opt-in smart TV viewing data available; it launched an influential subsidiary around this business called Inscape.

The new data aggregators

This new age of cultivated data has created and will create new data aggregators. Instead of traditional startups attempting to disrupt the middleman, these new startups are becoming the middlemen of data insights.

A mobility data management and analytics startup called Populus (a SparkLabs Global Ventures portfolio company) aggregates rideshare, scooter share, bike share, traffic, public transit and other mobility source data to present actionable insights for city and transportation planners. Most cities would not have the resources or knowledge to do what Populus does.

One of our SparkLabs Korea accelerator investments, Chartmetric, is rapidly becoming the go-to resource for the music industry in today’s streaming world. It has become a new data aggregator, as company founder and CEO Sung Cho describes, because Chartmetric “distills the data and distills further until they get something actionable” for its customers. Additionally, Chartmetric has become a trusted source of data and data insights, as different music labels and bands might report their numbers quite differently.

In the years to come, we expect to see more of these new data middlemen — because of similar “trusted source” issues, the shortage of good data scientists and some will want to create their own future and launch their own startups.

No data scientists is the new data scientist

The lack of AI experts is making it hard for even Fortune 500 companies to recruit them, with Google, Facebook and other top tech companies hoarding such talent. And it’s not only great AI developers, but even data scientists, whose positions are becoming harder to fill. One outcome is the rise of analytics platforms that empower people to become their own data scientists.

For example, companies such as ThoughtSpot (raised $300 million from Lightspeed, Khosla and others), Rockset (raised $21 million from Greylock and Sequoia) and more specialized plays such as Falkonry (one of our portfolio companies) have each taken different approaches to the market. ThoughtSpot provides real-time analytics and search and query capability across multiple sectors. Rockset seems focused on search and analytics query services for large enterprises. Falkonry focuses on predictive analytics for industrial operations, a much narrower focus than the other two examples.

This analytics platform space will only heat up in the coming years, and I expect other new approaches to fill this lack of talent and capabilities within company walls.

Drilling for data all over the world

One interesting thing is how our firm has seen some governments spurring more innovation within the data space. In South Korea, the Korea Data Agency, which was established in 1993, has over the past couple of years been encouraging the development of a data marketplace. Some of our SparkLabs Korea portfolio companies get paid a few hundred thousand (USD) per year to open up their data to the public, and the Korea Data Agency has created vertical consortiums to encourage standard building for data structures within specific industries such as finance, healthcare and transportation. I assume other top OECD nations will create similar programs to encourage economic growth and activity within the data aggregation and analytics space.

From well-coordinated government policies to market forces to increased startup activity around cultivated data, these trends and developments are a harbinger that this space will be one of the major gold rushes for startups and venture capital over the coming years. Data is truly the future, and the time to stake claims to mine it for insights and prosperity is now.

08 Aug 2019

Apple expands its bug bounty, increases maximum payout to $1M

Apple is finally giving security researchers something they’ve wanted for years: a macOS bug bounty.

The technology giant said Thursday it will roll out the bug bounty program to include Macs and MacBooks, as well as Apple TV and Apple Watch, almost exactly three years after it debuted its bug bounty program for iOS.

The idea is simple: you find a vulnerability, you disclose it to Apple, they fix it — and in return you get a cash payout. These programs are wildly popular in the tech industry as it helps to fund security researchers in exchange for serious security flaws that could otherwise be used by malicious actors, and also helps fill the void of bug finders selling their vulnerabilities to exploit brokers, and on the black market, who might abuse the flaws to conduct surveillance.

But Apple had dragged its feet on rolling out a bug bounty to its range of computers. Some security researchers had flat-out refused to report security flaws to Apple in absence of a bug bounty.

At the Black Hat conference in Las Vegas, head of security engineering and architecture Ivan Krstić announced the program to run alongside its existing iOS bug bounty.

Patrick Wardle, a security expert and principle security researcher at Jamf, said the move was a “no brainer.”

Wardle has found several major security vulnerabilities and dropped zero-days — details of flaws published without allowing the companies a chance to fix — citing the lack of a macOS bug bounty. He has long criticized Apple for not having a bug bounty, accusing the company of leaving a void open for security researchers to sell their flaws to exploit brokers who often use the vulnerabilities for nefarious reasons.

“Granted, they hired many incredible talented researchers and security professionals — but still never really had a transparent mutually beneficial relationship with external independent researchers,” said Wardle.

“Sure this is a win for Apple, but ultimately this a huge win for Apple’s end users,” he added.

Apple said it will open its bug bounty program to all researchers and increase the size of the bounty from the current maximum of $200,000 per exploit to $1 million for a zero-click, full chain kernel code execution attack with persistence — in other words, if an attacker can gain complete control of a phone without any user interaction and simply by knowing a target’s phone number.

Apple also said that any researcher who finds a vulnerability in pre-release builds that’s reported before general release will qualify for up to 50% bonus on top of the category of vulnerability they discover.

The bug bounty programs will be available to all security researchers beginning later this year.

The company also confirmed a Forbes report, published earlier this week, saying it will give a number of “dev” iPhones to vetted and trusted security researchers and hackers under the new iOS Security Research Device Program. These devices are special devices that give the hackers greater access to the underlying software and operating system to help them find vulnerabilities typically locked away from other security researchers — such as secure shell.

Apple said that it hopes expanding its bug bounty program will encourage more researchers to privately disclose security flaws, which will help to increase the protection of its customers.

Read more:
Apple restricts ads and third-party trackers in iPhone apps for kids
New book looks inside Apple’s legal fight with the FBI
Apple has pushed a silent Mac update to remove hidden Zoom web server
Many popular iPhone apps secretly record your screen without asking
Apple rebukes Australia’s ‘dangerously ambiguous’ anti-encryption bill
Apple Card will make credit card fraud a lot more difficult

08 Aug 2019

This charming little camera prints instantly to receipt paper

I’m a big instant camera fan, but the film is expensive and the digital printers just aren’t very good. So I was delighted to see this alternative seeking funds on Kickstarter: the Alulu camera, which prints photos in black and white on receipt paper. Why did no one do this before?

The idea is so simple that you’ve already gotten it — no explanation necessary, but since explaining things is my job I am going to do so anyway.

The Alulu is an idea incubated by three friends as they left college, each heading their separate directions but looking to take a shot at making this cool gadget a reality before doing so. Right now it only exists in prototype form (they only thought it up in May), but it works more or less as intended, and it’s as silly and fun as I wanted it to be; I got to test one out, as it happened that one of the team members happened to live in my neighborhood.

The camera is a little box about the size of a fat point-and-shoot, with charming little dials on the top to select exposure mode or a 10-second timer if you want it, and a shutter button that’s hard to miss. On the side is the charge port and a button to advance the paper. And the back has a little frame that flips out and helps you set up your shot — very loosely, I hardly need add.

viewfinderbrtr

Inside the 3D-printed, acrylic-plated exterior, the guts of the camera are simple. An off-the-shelf camera stack that does all the hard work of actually taking a picture — but don’t worry about the megapixels, because they don’t matter here. The camera sends its signal to a custom board that prepares and optimizes the image for black-and-white printing.

To be clear, we’re talking black and white, not shades of grey. The printer inside the camera is a standard receipt printer, which uses heat-activated ink that’s either transparent or black and nothing in between. You feed paper in via a little chamber on the bottom.

alulu

Thankfully creating the appearance of shading in 1-bit imagery is old hat for computer graphics, and an algorithm dithers and tweaks the picture so that more or fewer dots in various patterns create the illusion of a wider palette.

The results are… well, photos printed on receipt paper. Let’s keep our expectations in line. But they’re instantly printed (with a little stutter like a dot matrix printer) and charming little artifacts indeed. You can even use receipts you’re given at stores or restaurants, if they fit, and you can always fold it over a bit if it’s too large.

receiptrow4 receiptrow2

(By the way, if you’re worried about being poisoned by receipt paper, don’t be. The stuff with high BPA content was generally phased out a while back, and you can order non-poisonous rolls of paper easily and cheaply.)

I think this thing is great, though I’m afraid that the projected $99 retail price might be too high for what amounts to a novelty. The idea, I was told, was to drive the price down with mass manufacturing, but until they do so they want to be honest about the cost of the parts (the printer itself is the most expensive piece, but like everything else the price goes down when you order a thousand or more).

Whether it makes it to the factory or not, I think the Alulu is a great idea. We need more weird, one-off devices in this world of ours where every function seems to devolve to the smartphone — and I’m tired of my phone! Plus, it can’t print on receipt paper.

The Alulu is currently looking for backers on Kickstarter. Go give it a pledge.

08 Aug 2019

Samsung is bringing PC game streaming to the Note 10

One of the more interesting news tidbits from yesterday’s Unpacked event got a bit drowned out in all of the noise. Understandably so — Samsung jammed a lot into an event that ran just over an hour, virtually sprinting through a handful of gaming announcements.

The below video is the best demonstration we have of PlayGalaxy Link, a new feature that makes it possible to stream games directly from a PC to the Galaxy Note 10. Why the company didn’t make a bigger deal of the feature is beyond me, but in an area when Apple and Google are really starting to get involved in gaming in earnest, Samsung really ought to have shone a bigger like light on the new offering.

From the sound of it, the feature will offer similarly to one that Microsoft has been working on for the Xbox, letting users stream games from their PC onto the mobile device, whether or not they’re on a shared WiFi.

The video showcases the connection, as a user links a Samsung Odyssey gaming laptop to a Note nestled inside a gamepad controller. Things are initiated by signing in on the desktop, opening the PlayGalaxy Link app on the Note and clicking “Start.” In the video, at least, game play happens simultaneously on both machines.

PlayGalaxy is Samsung’s latest shot at getting more heavily involved in mobile gaming, arriving on the heels of the Apple Arcade and Google Stadia announcements. And while the new Note offers a number of hardware features optimized for gaming, it does appear that, as with Microsoft and Google’s offering, the PC is doing the heavy lifting here.

The offering seems to be linked to Samsung’s recently announced partnership with Microsoft — itself a clear shot across the bow against Apple’s ecosystem offering. There are still a lot of questions here, including how bad that lag is going to be. More coming soon, no doubt. 

08 Aug 2019

This startup is helping food app delivery workers start their own damn delivery companies

Following many months of pressure, DoorDash, one of the most frequently used food delivery apps in the U.S., said late last month that it was finally changing its tipping policy to pass 100% of tips along to workers, rather than employ some of that money toward defraying its own costs.

The move was a step in the right direction, but as a New York Times piece recently underscored, there are many remaining challenges for food delivery couriers, including not knowing where a delivery is going until a worker picks it up (Uber Eats), having just seconds to decide whether or not to accept an order (Postmates), and not being guaranteed a minimum wage (Deliveroo), not to mention the threat of delivery robots taking their jobs.

It’s a big enough problem that a young, nine-person startup called Dumpling has decided to tackle it directly. Its big idea: turn today’s delivery workers into “solopreneurs” who build their own book of clients and keep much more of the money changing hands. It newly has $3 million in backing from two venture firms that know the gig economy well, too: Floodgate, an early investor in Lyft (firm cofounder Ann Miura-Ko is on Lyft’s board), and Fuel Capital, where TaskRabbit founder Leah Busque is now a general partner.

We talked with Dumpling’s cofounders and co-CEOs earlier this week to learn more about the company and how viable it might be. Nate D’Anna spent eight years as a director of corporate development at Cisco; Joel Shapiro spent more than 13 years with National Instruments, where he held a variety of roles, including as a marketing director focused on emerging markets.

National Instruments, based in Austin, is also where Shapiro and D’Anna first met back in 2002. Our chat, edited lightly for length, follows:

TC: You started working together out of college. What prompted you to come together to start Dumpling?

JS: We’d stayed good friends as we’d done different things with our careers, but we were both seeing rising inequality happening at companies and within their workforces, and we were both interested in using our [respective] background and experiences to try and make a difference.

ND: When we were first started, Dumpling wasn’t a platform for people to start their own business. It was a place for people to voice opinions — kind of like a Glassdoor for workers with hourly jobs, including in retail. What jumped out at us was how many gig workers began using the platform to talk about the horrible ways they were being treated, not having a traditional boss and not being protected by traditional policies.

TC: At what point did you think you were onto a separate opportunity?

ND: We knew that a mission-driven company that’s trying to do good by people who’ve been exploited by Silicon Valley companies has to be profitable. I was an investor at Cisco, and I was very clear that the money side has to work.  So we started talking with gig workers and we asked, ‘Why are you working for a terrible company where you’re getting injured, where you’re getting penalized for not taking the next job?’ And the response was money. It was, “I need to be able to buy these groceries and I don’t want to put them on my own credit card.” That was an epiphany for us. If the biggest paint point to running these businesses is working capital and we can solve that — if business owners will pay for access to capital and for tools that help them run their business — that clicked for us.

TC: A big part of your premise is that while gig economy companies have anonymized people as best they can, there’s a meaningful segment of services where a stranger or a robot isn’t going to work.

JS: Shoppers for gig companies often hear, ‘When you [specifically] come, it makes my day,” so our philosophy was to build a platform that supports the person. When you run a business and build a clientele that you get to know, you’re incentivized for that [client] to have a good experience. So we wondered, how do we provide tools for someone who has done personal shopping and is maybe a part of Facebook groups and mom groups and who not only needs fund to shop but also help with marketing and a website and training so they can promote their services to other people?

ND: We also realized that to be successful and to make business owners be successful that we needed to lower the transaction cost for them to find customers, so we created a marketplace where shoppers can look at reviews, understand different shoppers’ knowledge regarding when it comes to various specialties and stores, then help match them.

TC: How many shoppers are now running their own businesses on Dumpling and what do they get from you exactly?

JS: More than 500 across the country are operating in 37 states.  And we want to give then everything they need. A big part of that is capital, so we give [them] a credit card, then it’s effectively the operational support, including order management, customer relationship functionality, customer communication, a storefront, an app that they can use to run their business from their phone. . .

TC: What about insurance, tax help, that sort of stuff?

ND: A lot of VCs pushed us in that direction. The good news is a lot of companies are coming up to provide those ancillary services, and we’ll eventually partner with them if you want to export your data to Intuit or someone else. Right now, we’re really focused on [shoppers’] core business, helping then to operate it, to find customers, that’s our sweet spot for the immediate future.

TC: What are you charging? Who are you charging?

JS: A subscription model is an obvious way for us to go at some point, but right now, because we’re in the transaction flow, we’re taking a percentage of each transaction. The [solopreneuer] pays us $5 per transaction as a platform fee; the shopper pays us five percent atop the delivery fee set by the [person who is delivering their goods]. So if someone spends $100 on groceries, that customer pays us $5, and the shopper pays us $5 and the shopper gets that delivery fee, plus his or her tip.

The vast amount goes to the shopper, unlike with today’s model [wherein the vast majority goes to delivery companies]. Our average shopper is bringing home $32 in earnings per order, roughly three times as much as when they work for  other grocery delivery apps. I think that’s partly because we communicate to [shoppers] that they are supporting local businesses and local entrepreneurs and they are receiving an average tip of 17 percent on their orders. But also, when you know your shopper and that person gets to know your preferences, you’re much more comfortable ordering non-perishables, like produce picked the way you like. That leads to huge order sizes, which is another reason that average earnings are higher.

TC: You’re fronting the cost for groceries. Is that money coming from your venture funding? Do you have a debt facility?

ND: We don’t. The money moves so fast. The shoppers are using the card to shop, then getting the money back again, so the cycle time is quick. It’s two days, not six months.

TC: How does this whole thing scale? Are you collecting data that you hope will inform future products?

ND: We definitely want to use tech to empower [shoppers] instead of control them. But [our CTO and third cofounder Tom Schoellhammer] came from Google doing search there, and eventually we [expect to] recommend similar stores, or [extend into] beauty or pet other local services. Grocery delivery is one obvious place where the market is broken, but where you want a trusted person involved, and you’re in the flow when people are looking for something [the opportunity opens up]. Shoppers’ knowledge of their local operation zone can be leveraged much more.

08 Aug 2019

ULA successfully launches fifth U.S. Air Force protected communications satellite

The United Launch Alliance (ULA), a joint-effort commercial launch service provider set up by Boing and Lockheed Martin, succeeded in launching a U.S. Air Force communications satellite to orbit today, the fifth in a series of launches to form a constellation. The satellite, code-named AEHF-5 (for the fifth ‘Advanced Extremely High Frequency” spacecraft) is already communicating with USAF on the ground, indicating full mission success.

For ULA, this is another win in an unbroken streak – it’s the 90th Atlas V launch to date, with 100% success across all those launches. The launch took off from Cape Canaveral Air Force Station in Florida at 6:13 AM ET this morning, marking the second successful launch from the Cape this week after SpaceX launched the AMOS-17 satellite earlier this week.

The Atlas V for this mission was flying in what ULA terms “551” configuration, which means that it’s equipped with five solid rocket boosters surrounding its liquid-fuelled center core booster. This is the configuration that provides Atlas V with the most lift and payload capacity, which was necessary in this case because of the weight of the AEHF-5 satellite at nearly 14,000 lbs, combined with its target orbit.

Lockheed Martin built the AEHF-5 for the Air Force, and confirmed via email this afternoon that it not only achieved geostationary transfer obit but is responding as planned to the USAF’s 4th Space Operations Squadron. The company has built all five current active AEHF satellites in operation, and is currently working on the sixth, which should launch sometime next year if all goes to plan.

08 Aug 2019

Auto supplier Continental shifts gears — and its capital — to an electric future

Continental AG, a global auto-parts supplier, will no longer invest in parts used in internal combustion engines, the latest sign that the automotive industry is being forced to respond to increasingly strict emissions laws.

Instead, the company said it will put more focus and capital on the electric powertrain, which it believes is the “future of mobility.”

“Our customers are increasingly and consistently turning to the electrification of combustion engines through hybrid drives as well as to pure battery-powered vehicles,” said Andreas Wolf, head of Continental’s Powertrain division, which in the future will operate under the name Vitesco Technologies with Wolf as CEO.

This shift toward electrification is being driven by tighter regulations around the world. Cities are clamping down on the use of diesel- and gas-powered cars, trucks and SUVs in urban centers and states like California are tightening rules to meet air quality and emissions targets to combat climate change. China has placed restrictions on gas-powered vehicles and provides incentives to electric ones. France wants to end the sale of fossil fuel-powered cars by 2040.

And automakers are following. Volvo, VW and others have announced plans over the past two years to increase sales of electric vehicles and move toward more electrification throughout their portfolios of existing vehicles. Electrification can mean hybrid, plug-in or all-electric vehicles.

There has been plenty of speculation and attempts to predict exactly when — not so much if — a tectonic shift to electric powertrains would occur. Suppliers have grappled with the “when” part. Putting too much capital too soon toward developing automotive parts can saddle a supplier with inventory and mounting costs.

What’s happening at Continental is starting to play out within the rest of the industry. If companies like Continental want to survive and keep up with the demands of automakers, they have to act. But not wildly. Development costs for powertrains are, after all, no small matter.

Continental is making specific choices on what exactly it pursues. The company, for instance, will not consider producing solid-state battery cells in the future. Apparently the company was open to making an investment in battery cell production. But now the company believes the market no longer offers any attractive economic prospects for battery cell production for Continental, Wolf said.

What Continental is going to do is reduce investment in its hydraulic components business, which includes parts like injectors and pumps for gasoline and diesel engines.

“Investments in research and development and in production capacity for innovations are becoming less profitable,” says Wolf, explaining the reasoning behind this decision.

Continental will fulfill existing orders. New orders will “play an increasingly marginal role.”

This shift within Continental will likely extend over a number of years, as combustion engines essentially serve as the basic drivers for hybrid solutions, Wolf said. The company will also review its business in components for exhaust-gas after treatment and fuel delivery.

All of this translates into big changes within the company, including the technologies it decides to invest in, jobs and even locations of some of its operations. Continental said it will also consider partnerships.

08 Aug 2019

Voxel51 raises $2 million for its video-native identification of people, cars and more

Many companies and municipalities are saddled with hundreds or thousands of hours of video and limited ways to turn it into usable data. Voxel51 offers a machine learning-based option that chews through video and labels it, not just with simple image recognition but with an understanding of motions and objects over time.

Annotating video is an important task for a lot of industries, the most well known of which is certainly autonomous driving. But it’s also important in robotics, the service and retail industries, for police encounters (now that body cams are becoming commonplace), and so on.

It’s done in a variety of ways, from humans literally drawing boxes around objects every frame and writing what’s in it to more advanced approaches that automate much of the process, even running in real time. But the general rule with these is that they’re done frame by frame.

A single frame is great if you want to tell how many cars are in an image, or whether there’s a stop sign, or what a license plate reads. But what if you need to tell whether someone is walking or stepping out of the way? What about whether someone is waving or throwing a rock? Are people in a crowd going to the right or left, generally? This kind of thing is difficult to infer from a single frame, but looking at just two or three in succession makes it clear.

That fact is what startup Voxel51 is leveraging to take on the established competition in this space. Video-native algorithms can do some things that single-frame ones can’t, and where they do overlap, the former often does it better.

Voxel51 emerged from computer vision work done by its co-founders, CEO Jason Corso and CTO Brian Moore, at the University of Michigan. The latter took the former’s computer vision class and eventually the two found they shared a desire to take ideas out of the lab.

“I started the company because I had this vast swath of research,” Corso said, “and the vast majority of services that were available were focused on image-based understanding rather than video-based understanding. And in almost all instances we’ve seen, when we use a video based model we see accuracy improvements.”

While any old off-the-shelf algorithm can recognize a car or person in an image, it takes much more savvy to make something that can, for example, identify merging behaviors at an intersection, or tell whether someone has slipped between cars to jaywalk. In each of those situations the context is important and multiple frames of video are needed to characterize the action.

“When we process data we look at the spacio-temporal volume as a whole,” said Corso. “Five, ten, thirty frames… our models figure out how far behind and forward it should look to find a robust inference.”

In other, more normal words, the AI model isn’t just looking at an image, but at relationships between many images over time. If it’s not quite sure whether a person in a given frame is crouching or landing from a jump, it knows that it can scrub a little forwards or backwards to find the information that will make that clear.

And even for more ordinary inference tasks like counting the cars in the street, that data can be double-checked or updated by looking back or skipping ahead. If you can only see five cars because one’s big and blocks a sixth, that doesn’t change the fact that there are six cars. Even if every frame doesn’t show every car, it still matters for, say, a traffic monitoring system.

The natural objection to this is that processing 10 frames to find out what a person is doing is more expensive, computationally speaking, than processing a single frame. That’s certainly true if you are treating it like a series of still images, but that’s not how Voxel51 does it.

scoop voxel51

“We get away with it by processing fewer pixels per frame,” Corso explained. “The total amount of pixels we process might be the same or less as a single frame, depending on what we want it to do.”

For example, on video that needs to be closely examined but speed isn’t a concern (like a backlog of traffic cam data), it can expend all the time it needs on each frame. But for a case where the turnaround needs to be quicker, it can do a fast, real-time pass to identify major objects and motions, then go back through and focus on the parts that are the most important — not the unmoving sky or parked cars, but people and other known objects.

The platform is highly parameterized and naturally doesn’t share the limitations of human-driven annotation (though the latter is still the main option for highly novel applications where you’d have to build a model from scratch).

“You don’t have to worry about, is it annotator A or annotator B, and our platform is a compute platform, so it scales on demand,” said Corso.

They’ve packed everything into a drag-and-drop interface they call Scoop. You drop in your data — videos, GPS, things like that — and let the system power through it. Then you have a browsable map that lets you enumerate or track any number of things: types of signs, blue BMWs, red Toyotas, right turn only lanes, people walking on the sidewalk, people bunching up at a crosswalk, etc. And you can combine categories, in case you’re looking for scenes where that blue BMW was in a right turn only lane.

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Each sighting is attached to the source video, with bounding boxes laid over it indicating the locations of what you’re looking for. You can then export the related videos, with or without annotations. There’s a demo site that shows how it all works.

It’s not a little like Nexar’s recently announced Live Maps, though obviously also quite different. That two companies can pursue AI-powered processing of massive amounts of street-level video data and still be distinct business propositions indicates how large the potential market for this type of service is.

Despite its street-feature smarts, Voxel51 isn’t going after self-driving cars to start. Companies in that space, like Waymo and Toyota, are pursuing fairly narrow, vertically-oriented systems that are highly focused on identifying objects and behaviors specific to autonomous navigation. The priorities and needs are different from, say, a security firm or police force that monitors hundreds of cameras at once — and that’s where the company is headed right now. That’s consistent with the company’s pre-seed funding, which came from a NIST grant in the public safety sector.

map1

Built with no human intervention from 250 hours of video, a sign/signal map like this would be helpful to many a municipality.

“The first phase of go to market is focusing on smart cities and public safety,” Corso said. “We’re working with police departments that are focused on citizen safety. So the officers want to know, is there a fire breaking out, or is a crowd gathering where it shouldn’t be gathering?”

“Right now it’s experimental pilot — our system runs alongside Baltimore’s Citiwatch,” he continued, referring to a crime-monitoring surveillance system in the city. “They have 800 cameras, and five or six retired cops that sit in a basement watching those — so we help them watch the right feed at the right time. Feedback has been exciting: When [Citiwatch overseer Major Hood] saw the output of our model, not just the person but the behavior, arguing or fighting, his eyes lit up.”

Now, let’s be honest — it sounds a bit dystopian, doesn’t it? But Corso was careful to note that they are not in the business of tracking individuals.

“We’re primarily privacy-preserving video analytics; We have no ability or interest in running face identification. We don’t focus on any kind of identity,” he said.

It’s good that the priority isn’t on identity, but it’s still a bit of a scary capability to be making available. And yet, as anyone can see, the capability is there — it’s just a matter of making it useful and helpful rather than simply creepy. While one can imagine unethical uses like cracking down on protestors, it’s also easy to imagine how useful this could be in an Amber or Silver alert situation. Bad guy in a beige Lexus? Boom, last seen here.

At any rate the platform is impressive and the computer vision work that went into it even more so. It’s no surprise that the company has raised a bit of cash to move forward. The $2 million seed round was led by eLab Ventures, a Palo Alto and Ann Arbor-based VC firm, and the company earlier attracted the $1.25 million grant from NIST mentioned earlier.

The money will be used for the expected purposes, establishing the product, building out support and the non-technical side of the company, and so on. The flexible pricing and near-instant (in video processing terms) results seem like something that will drive adoption fairly quick given the huge volumes of untapped video out there. Expect to see more companies like Corso and Moore’s as the value of that video becomes clear.

08 Aug 2019

Daily Crunch: Samsung unveils the Galaxy Note 10

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. This is Samsung’s Galaxy Note 10 and 10+

The landscape has changed dramatically since the Galaxy Note was first unveiled in 2011, with Samsung pulling the rest of the industry into a world of bigger screens.

Now, the question is how to make the latest updates compelling. With the Note 10 and 10+ (available August 23 at a starting price of $950), Samsung is splitting the line into two distinct devices, and it’s getting rid of the headphone jack.

2. Google launches ‘Live View’ AR walking directions for Google Maps

The Live View feature isn’t designed with the idea that you’ll hold up your phone continually as you walk. Instead, in provides quick, easy and super-useful orientation by showing you arrows and big, readable street markers overlaid on the real scene in front of you.

3. Lyft’s stock is a roller coaster after its Q2 earnings release

Despite big losses, what made Wall Street happy was Lyft’s optimism for Q3, as well as the full-year 2019.

Netflix app icon iOS

Photo: TechCrunch

4. Netflix signs multi-year deal with ‘Game of Thrones’ showrunners

According to The Hollywood Reporter, the deal is worth $200 million. This follows expensive Netflix pacts with other high-profile showrunners, including Ryan Murphy ($300 million) and Shonda Rhimes ($100 million).

5. Instagram ad partner secretly sucked up and tracked millions of users’ locations and stories

Hyp3r, an apparently trusted marketing partner of Facebook and Instagram, has been secretly collecting and storing location and other data on millions of users, violating the policies of the social networks, according to Business Insider.

6. Sperm storage startups are raising millions

Both Dadi and Legacy recently raised funding, hoping to leverage venture capital dollars to become the dominant men’s fertility brand.

7. How to fundraise in August

Danny Crichton argues that although August is generally considered a black hole for VC, using it effectively for fundraising is perhaps the single most important factor for success in the coming season. (Extra Crunch membership required.)