Category: UNCATEGORIZED

04 Jan 2021

Daily Crunch: Hundreds of Google and Alphabet employees unionize

Google employees take another step in their activism, Venmo adds a check-cashing feature and Slack has some issues. This is your Daily Crunch for January 4, 2021.

The big story: Hundreds of Google and Alphabet employees unionize

More than 200 employees at Google and its parent company Alphabet have announced that they have formed the Alphabet Workers Union.

Obviously, that’s only a tiny fraction of Alphabet’s workforce of more than 130,000 employees. But according to The New York Times, the group is a “minority union” designed to give more structure to employee activism, rather than one that negotiates for a contract. And it will also be open to contractors.

“This is historic—the first union at a major tech company by and for all tech workers,” said Google software engineer Dylan Baker in a statement. “We will elect representatives, we will make decisions democratically, we will pay dues, and we will hire skilled organizers to ensure all workers at Google know they can work with us if they actually want to see their company reflect their values.”

The tech giants

It’s not just you, Slack is struggling this morning — Precisely when the downtime began is not clear, though problems amongst the TechCrunch staff began a little after 10 a.m. Eastern time.

Venmo adds a check-cashing feature, waives fees for stimulus checks — The feature can be used to cash printed, payroll and U.S. government checks, including the new stimulus checks.

Samsung’s next Unpacked event is January 14 — This one’s called “Welcome to the Everyday Epic.”

Startups, funding and venture capital

Color raises $167M funding at $1.5B valuation to expand ‘last mile’ of US health infrastructure — Color’s 2020 was a record year for the company.

Lidar startup Aeva raises another $200M ahead of its debut as a public company — Aeva is one of a handful of lidar companies to eschew the traditional IPO path and go public via a SPAC merger.

India’s CRED raises $81M, buys back shares worth $1.2M from employees — CRED has nearly doubled its customer base to about 5.9 million in the past year, or about 20% of the credit card holder base in India.

Advice and analysis from Extra Crunch

How artificial intelligence will be used in 2021 — Scale AI CEO Alexandr Wang forecasts the biggest emerging use cases.

2020 was a record year for Israel’s security startup ecosystem — A look back at notable funding trends, rounds and exits.

Five questions about 2021’s startup market — Each question relates to a 2020 change that is expected to persist.

(Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Astronaut Anne McClain on designing and piloting the next generation of spacecraft — McClain is one of the astronauts who will be taking part in the Artemis missions.

Mixtape podcast: Behind the curtain of diversity theater — Most TechCrunch readers have probably heard of diversity reports, but you may not know what’s going on behind the scenes.

Original Content podcast: ‘Wonder Woman 1984’ might be a beautiful mess, or maybe just a mess — And yet one of my co-hosts actually preferred the sequel to the original.

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 3pm Pacific, you can subscribe here.

04 Jan 2021

Daily Crunch: Hundreds of Google and Alphabet employees unionize

Google employees take another step in their activism, Venmo adds a check-cashing feature and Slack has some issues. This is your Daily Crunch for January 4, 2021.

The big story: Hundreds of Google and Alphabet employees unionize

More than 200 employees at Google and its parent company Alphabet have announced that they have formed the Alphabet Workers Union.

Obviously, that’s only a tiny fraction of Alphabet’s workforce of more than 130,000 employees. But according to The New York Times, the group is a “minority union” designed to give more structure to employee activism, rather than one that negotiates for a contract. And it will also be open to contractors.

“This is historic—the first union at a major tech company by and for all tech workers,” said Google software engineer Dylan Baker in a statement. “We will elect representatives, we will make decisions democratically, we will pay dues, and we will hire skilled organizers to ensure all workers at Google know they can work with us if they actually want to see their company reflect their values.”

The tech giants

It’s not just you, Slack is struggling this morning — Precisely when the downtime began is not clear, though problems amongst the TechCrunch staff began a little after 10 a.m. Eastern time.

Venmo adds a check-cashing feature, waives fees for stimulus checks — The feature can be used to cash printed, payroll and U.S. government checks, including the new stimulus checks.

Samsung’s next Unpacked event is January 14 — This one’s called “Welcome to the Everyday Epic.”

Startups, funding and venture capital

Color raises $167M funding at $1.5B valuation to expand ‘last mile’ of US health infrastructure — Color’s 2020 was a record year for the company.

Lidar startup Aeva raises another $200M ahead of its debut as a public company — Aeva is one of a handful of lidar companies to eschew the traditional IPO path and go public via a SPAC merger.

India’s CRED raises $81M, buys back shares worth $1.2M from employees — CRED has nearly doubled its customer base to about 5.9 million in the past year, or about 20% of the credit card holder base in India.

Advice and analysis from Extra Crunch

How artificial intelligence will be used in 2021 — Scale AI CEO Alexandr Wang forecasts the biggest emerging use cases.

2020 was a record year for Israel’s security startup ecosystem — A look back at notable funding trends, rounds and exits.

Five questions about 2021’s startup market — Each question relates to a 2020 change that is expected to persist.

(Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Astronaut Anne McClain on designing and piloting the next generation of spacecraft — McClain is one of the astronauts who will be taking part in the Artemis missions.

Mixtape podcast: Behind the curtain of diversity theater — Most TechCrunch readers have probably heard of diversity reports, but you may not know what’s going on behind the scenes.

Original Content podcast: ‘Wonder Woman 1984’ might be a beautiful mess, or maybe just a mess — And yet one of my co-hosts actually preferred the sequel to the original.

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 3pm Pacific, you can subscribe here.

04 Jan 2021

Twitter acquires social podcasting app Breaker, team to help build Twitter Spaces

Twitter has acquired social broadcasting app Breaker, the companies announced today via a combination of blog posts and tweets. The deal will see Breaker’s team joining Twitter to help “improve the health of the public conversation” on the service, as well as work on Twitter’s new audio-based networking project, Twitter Spaces. The Breaker app, however, will shut down on January 15, 2020.

Breaker announced the acquisition on its company blog, explaining why it believes its team will be a good fit at Twitter.

“Here at Breaker, we’re truly passionate about audio communication and we’re inspired by the ways Twitter is facilitating public conversations for people around the world,” wrote Breaker CEO Erik Berlin. “We’re impressed by the entrepreneurial spirit at Twitter and enthusiastic about the new experiences that the team is creating.”

Breaker was founded in 2016 and is led by both CEO Berlin, previously the founder and CTO at social advertising company 140 Proof (which sold to Acuity), and CTO Leah Culver, who previously founded Pownce and Grove and co-authored web technologies OAuth and oEmbed.

The app had launched at a time when podcasts were still very much thought of as audio feeds and podcast apps as productivity tools — not experiences around which a community could be built. Breaker helped to change that perception by offering an app where users could like and comment on episodes, discover new podcasts by following friends, share favorite shows to social media, and much more.

According to Culver’s tweet, she’ll be joining Twitter with a focus on Twitter Spaces, Twitter’s audio-based social networking product and Clubhouse rival. Spaces allow Twitter users chat in real-time using voice instead of text, as they do today. The new product entered beta testing in December. Twitter is is currently trying to work out not only the technical issues and bugs with the feature, but also the more complex issues that arise from hosting live audio, including moderation.

In a separate tweet, Twitter Engineering lead Michael Montano confirmed that Berlin, Culver and Breaker designer Emma Lundin will all be moving to Twitter as a result of the deal.

He also praised both Berlin and Culver’s entrepreneurial spirit as well as Culver’s push for open standards over the years.

Reached for comment, Twitter pointed to Montano’s tweet but offered no further details on the acquisition, price, or broader plans.

Breaker says it will close down its apps and services it built over the past years in a matter of days.

On Jan. 15, 2020, Breaker will shut down for good. Up until that point, Breaker users will be able to export their OPML file to transfer their subscriptions to another podcasting app. Breaker recommends apps like Apple, Spotify, Stitcher, Overcast, Pocket Casts, or Castro, as an alternative. For those hosting a podcast on Breaker, these can be transferred elsewhere via the RSS feed.

The Breaker acquisition adds to a string of recent podcast M&A activity. But unlike recent deals that involved podcast content, Breaker’s sale is made up of staff and technology, not podcasts themselves. This maps to Twitter’s general focus on collating content from others instead of making its own.

The Breaker deal, with its unannounced price, feels modest. Which means that while the company’s exit to Big Tweet is another point on the board for podcasting companies finding their way to some sort of payout, it fits the general narrative that podcasting services, and podcasting content only has so much value.

The acquisition follows other podcast content deals in recent weeks and months, including Amazon’s $300 million acquisition of Wondery, Sirius buyinig Stitcher for $300 million, not to mention all the content deals Spotify has picked up as of late.

That another podcast service sold for around $300 million has become a running joke. That number, while impressive-sounding to the individual, is not the sort of exit that venture capitalists target. The Breaker-Twitter tie-up, then, doesn’t push back on the idea that building a company focused on podcasting is to admit to a future that will have capped future upside.

Whether venture capitalists pull back from podcasting investments in 2021 is not yet clear, but Breaker’s sale does little to argue that private investors shouldn’t.

 

04 Jan 2021

How to convert customers with subscription pricing

The lure of subscription pricing is the guarantee of recurring revenue for your business. Once a customer flips the switch to turn on your subscription, it’s easy money:

  • Easy to recognize your revenue.
  • Easy to determine your margins and profits.
  • Easy to enhance your product and extend that revenue out for months, even years.

While that’s true, converting a subscription customer isn’t as simple as flipping a switch. You can build a platform, launch with fanfare, offer all sorts of incentives and trials to attract potential customers — and watch as they disengage and lapse into limbo.

Contrary to popular belief, subscription pricing doesn’t work because of the lower price point that a monthly installment allows.

That’s the actual guarantee that comes with subscription pricing, which will happen unless you cultivate a funnel that catches potential subscribers as soon as they learn about your product and follows them until their very last sign-in.

I built my first subscription-model product in 1999. I’m currently in early-access on my latest, and I’ve launched a bunch more along the way.

While the customer dynamic has changed over the last 20 years, the conversion process has not. In fact, it’s actually gotten easier to convert and retain customers through the subscription funnel.

Here’s what I’ve learned.

Why subscription pricing works

Subscription pricing is a hot trend in just about every business in every industry. Pay-as-you-go is the new normal from software to retail to service.

In my mind, the major shift occurred when mobile phones started pricing unlimited usage per period instead of fixed or cost per minute. Once usage limits were removed, use cases exploded and the promise of a truly mobile computer was finally realized.

Makers of all stripes learned that lesson: From razors to video streaming to accounting software, pricing models have emerged that focus on time periods instead of units.

But contrary to popular belief, subscription pricing doesn’t work because of the lower price point that a monthly installment allows. It’s effective because a subscription reorients each customer’s mind from product function to value proposition.

I don’t care what kind of German engineering went into my razor blades, as long as I have working blades when I need them.

As an entrepreneur, you probably use at least one digital subscription service to build your own product and company, if not several. In fact, just to get to the MVP of my new project, I subscribed to AWS, MailChimp, Zapier and Bubble. I’m still on the free tier of a few more services for some lower-priority features. There’s a few more I quit or never tried.

Thus, you know that value prop plays a big part of whether the customer will pay and stay. So reinforcing your value proposition should play a big part in every level of your customer funnel.

You must catch and track customers to be effective

A subscription-pricing model without an ability to track the steps in the conversion funnel will result in all the headaches of subscription pricing without any of the benefits.

04 Jan 2021

2020 was a record year for Israel’s security startup ecosystem

From COVID-19’s curve to election polls, public temperature checks to stimulus checks, 2020 was dominated by numbers — the guiding compass of any self-respecting venture capital investor.

As a VC exclusively focused on investments in Israeli cybersecurity, the numbers that guide us have become some of the most interesting to watch over the course of the past year.

The start of a new year presents the perfect opportunity to reflect on the annual performance of Israel’s cybersecurity ecosystem and prepare for what the next twelve months of innovation will bring. With the global cybersecurity market outperforming this year’s panic-stricken expectations, we carefully combed through the figures to see how Israel’s market, its strongest performer, compared — and predict what it has in store.

The cybersecurity market continues to draw the confidence of investors, who appear to recognize its heightened importance during times of crisis.

The “cyber nation” not only remained strong throughout the pandemic, but even saw a rise in fundraising, especially around application and cloud security, following the emergence of remote workflow security gaps brought on by social distancing. Encouraged by this, investors have demonstrated committed enthusiasm to its growth and M&A landscape.

Emboldened by the sector’s overall strength and new opportunities, today’s Israeli visionaries are developing stronger convictions to build larger companies; many of them, already successful entrepreneurs, are making their own bets in the industry as serial entrepreneurs and angel investors.

The numbers also reveal how investors are increasingly concentrating their funds on larger seed rounds for serial entrepreneurs and the foremost industry trends. More than $2.75 billion was poured into the industry this year to back companies across all stages, a 97% increase from last year’s $1.39 billion. If its long-term slope is any indication, we can only expect it to continue to grow.

However, though they clearly indicate progress, the numbers still make the need for a demographic reset clear. Like the rest of the industry, Israel’s cybersecurity ecosystem must adapt to the pace of change set out by this year’s social movements, and the time has long passed for true diversity and gender representation in cybersecurity leadership.

Seed rounds reveal fascinating shifts

As the market’s biggest leaders garner experience and expertise, the bar for entry to Israel’s cybersecurity startup ecosystem has gradually risen over the years. However, this did not appear to impact this year’s entrepreneurial breakthroughs. 58% of Israel’s newly founded cybersecurity companies received seed rounds this year, totaling 64 seeded companies in 2020 compared with last year’s 61. The total number of newly founded companies increased by 5%, reversing last year’s downward trend.

The amount invested at seed hit an all-time high as average deal size in 2020 increased by 11%, amounting to an average of $5.2 million per deal. This continues an upward trend in average seed rounds, which have surged over the last four years due to sizable year-on-year increases. It also provides further support for a shift toward higher caliber seed rounds with a strategically focused and “all-in” approach. In other words, founders that meet the new bar for entry are raising bigger rounds for more ambitious visions.

YL ventures seed trends 2020

Image Credits: YL Ventures

Where is the money going?

2020 proved an exceptional year for application security and cloud security startups. Perhaps the runaway successes of Snyk and Checkmarx left strong impressions. This year saw an explosive 140% increase in application security company seed investments (such as Enso Security, build.security and CloudEssence), as well as a whopping 200% increase in cloud security seed investments (like Solvo and DoControl), from last year.

04 Jan 2021

The cauldrons of gold theory of media and startups

Another week, another email newsletter. This time, the story is Punchbowl, a politics-centric newsletter founded by a crop of recent Politico alums including Jake Sherman, Anna Palmer and John Bresnahan. Ben Smith has the story, as does Maxwell Tani at the Daily Beast with some more juicy details.

Why do we need another newsletter analyzing Beltway politics in a world of Politico Playbook, Axios, The Daily 202 and one hundred others? In fact, why do we need the voluminous output of tech-oriented newsletters covering startups (by my count, there are at least several thousand newsletters covering our industry)? Why, in a media world that was supposed to be all about the long-tail does it seem that every new media startup is targeting the same single niche over and over again?

That’s where the cauldrons of gold come in. Media is not unlike many startup markets — there may be infinite needs for diverse products, but there are only a handful of those needs that have serious dollars attached to them.

In media, these are beats like DC politics, or investment banking / M&A, or VC coverage in our quaint little world of startups, where the winners get to own massive audiences and by extension, massive dollars from subscribers and advertisers. There are thousands of other niches, but they are impoverished with limited readership, users and recourse to revenue.

Put another way, these are tournament markets, where the winners can take all and where it is worth the gamble to have a small chance at a massive outcome rather than a good chance at a mediocre one. In medicine, “everyone” wants to cure cancer, not some neglected tropical disease (which might well have millions of people who could benefit from a cure). After all, the Nobel Prizes don’t go to merely good science, they go for the biggest advances of the century that have the right level of notability. In startups, founders want to target the largest business and consumer markets, not the small application that might be useful but won’t become a juggernaut.

Unicorns are not born in small markets.

There are of course hugely negative externalities to this model for many markets. All that competition to dominate the “first-read newsletter” on Capitol Hill or along Sand Hill Road means that we are overwhelmed with identical analyses on the same subjects rather than being able to select from a wide spectrum of different options. We probably should have more coverage of emerging market tech or state capitols than we do today.

In startups, we have way too many entrants in some extremely valuable layers of fintech, for example. There are at least … 50? 100? wealth-management startups and incumbent products that focus on automated investing in ETFs (so-called “roboadvisors”). Yet, there is so much money to be made in some of these layers, that every founder with sense is essentially saying “I’ll take my chances for the reward at the end of that particular road.”

You would sort of think the free market would work itself out in these niches. All that competition for attention in the DC media world or for wealth management users should ultimately lower costs and divide the pie thinly enough that it becomes less attractive for new entrants and makes other niches and markets look far more relatively competitive.

That would be true if the pie did actually subdivide further and further. Experience over the last decade though has proven to me that this is quite often not the case. DC politics is the cauldron of gold for politics coverage, and there are one to three newsletters that will always dominate that beat. M&A coverage on Wall Street is the cauldron of gold of business journalism, and a handful of reporters are going to own that beat by being the switchboards for all the most important sources. And VC coverage is the cauldron of gold for startup media, which is why TechCrunch and a few of our friendly competitors work so hard to cover it every day.

New markets do get invented and old markets expand and contract. There are absolutely startups that sort of come from nowhere and dazzle us with their originality and ability to create whole new categories. Yet, for every unicorn that gets its start that way, there are ten others that get built in existing major markets and compete for the big reward offered to the winner.

There isn’t anything wrong with investors who want to fund the fifteenth startup in a space. It makes sense — that’s where the rewards are, or at least, where we perceive the rewards to be. What needs to change is how to make some of those other niches offer the same incentives for innovation. How can more markets offer cauldrons of gold? Is that even possible? Or are we destined to read 100 newsletters on McConnell and Schumer’s machinations while getting ads for Marcus?

04 Jan 2021

The Amazon-Berkshire Hathaway-JPMorgan healthcare joint venture is officially ending

A somewhat nebulous, but high-profile and potentially heavily-moneyed joint venture is coming to an end: Haven, the JV created by Amazon, Berkshire Hathaway and JPMorgan Chase, is being “disbanded” according to CNBC, three years after its original formation. One of the main reasons is that each partner in the venture was apparently just pursuing their own very different strategic approach to their respective healthcare challenges, meaning their really wasn’t much joint in the joint venture to begin with.

In a statement provided to CNBC, a Haven spokesperson highlighted some of the good results that came out of the partnership over the years, however, including improving access to primary care, and making insurance benefits packages easier to grasp for employees. Meanwhile, Amazon has made lots of progress on its own with its Amazon Care program, which is its internal healthcare program for employees at its Washington state facilities.

Amazon Care includes provision of both virtual and in-person primary care doctor visits, and prescription delivery. The company is also reported to be considering expansion of this service to other businesses, which signal its intent to turn it into a real business with aims very much in line with what the Haven JV had originally taken as its guiding light.

To be honest, the original announcement about the JV’s founding was light on details and seemed like one of those things that comes together when very rich people talk about their shared problems over a casual afternoon hang at the club with caviar and mineral water distilled from pristine arctic ice or whatever they enjoy during their repasts, so it’s not all that surprising it didn’t materialize into anything more substantial.

04 Jan 2021

Lidar startup Aeva raises another $200M ahead of its debut as a public company

Aeva, the lidar company started by two former Apple engineers, has raised an additional $200 million in private investment from Hong Kong hedge fund Sylebra Capital ahead of its debut as a publicly traded company.

The Mountain View, California-based startup announced in fall 2020 that it was merging with special purpose acquisition company InterPrivate Acquisition Corp., with a post-deal market valuation of $2.1 billion. The new investment from Sylebra, which is a current holder of InterPrivate common stock, brings the total gross proceeds it will have once it begins trading to more than $560 million, according to the company.

Aeva had previously raised $120 million in private investment in public equity, or PIPE, including investments from Adage Capital and Porsche SE. Its combined company gross proceeds, a figure that includes $243 million held in trust by InterPrivate, was at $363 million before Sylebra stepped forward with its additional investment.

Importantly, Sylebra has also entered into a one-year lock-up agreement on the majority of its investment, and will vote all eligible shares in favor of the transaction. Aeva said the merger is expected to close in the first quarter of this year.

Aeva co-founder and CEO Soroush Salehian called the investment a “major vote of confidence” in the company’s business model and growth plans. Aeva will use the $200 million to further accelerate the company’s ability to capitalize on customer demand for its 4D LiDAR on a chip technology in the automotive, consumer and industrial markets, according to Salehian.

Lidar, light detection and ranging radar, measures distance using laser light to generate a highly accurate 3D map of the world around the car. Aeva’s founders Salehian and Mina Rezk developed what they call “4D lidar,” which can measure distance as well as instant velocity without losing range, all while preventing interference from the sun or other sensors. The company’s FMCW technology also uses less power, allowing it to fold in perception software.

Lidar sensors are widely considered critical to the commercial deployment of autonomous vehicles. However, the sensors have numerous other use cases that lidar companies have begun to pursue as the road to commercializing autonomous vehicles has turned out to be longer than expected. In the past two years, automakers have begun to view lidar as an important sensor to be used to boost the capabilities and safety of its advanced driver assistance systems in the new cars, trucks and SUVs available to consumers. Aeva’s technology has been primarily developed for use in autonomous vehicles as well as advanced driving assistance systems, Salehian has said its technology is also piquing the interest of those in consumer electronics.

Aeva is one of a handful of lidar companies to eschew the traditional IPO path and go public via a SPAC merger. Velodyne and Luminar have also merged with SPACs to to become publicly traded companies. Lidar startup Ouster announced in December that it has agreed to go public through a merger with special purpose acquisition company Colonnade Acquisition Corp.

04 Jan 2021

5 questions about 2021’s startup market

Welcome to 2021, a year that could extend 2020’s startup market disruptions and excesses — or change patterns that previously performed well for early-stage tech companies and their investors.


The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.


As we turn the page, I have a number of questions worth raising as we muck into 2021.

Each relates to a 2020 change that is expected to persist, by either the general market or those bullish on startups. I want to know what would need to change to shake up what became the new normal last year. After all, it’s precisely when it feels like nothing could shake up a downturn (or a boom) that things often do.

Today, let’s discuss seed deals, venture investing cadence, the resulting valuation pressures from rapid-fire bets, current IPO expectations and what happens to software sales when remote work begins to fade.

1. How long can seed deal-making stay hot?

As 2020 came to a close, Natasha Mascarenhas and I reported on seed investing’s strong year and its especially strong second half. How long can that pace keep up?

Nearly all our questions today deal with the endurance of certain conditions, namely: how long the market can keep parts of startup land red-hot.

When it comes to seed deal-making, Q1 and Q2 2020 saw similar levels of investment in the United States. But Q3 proved explosive, with money invested into domestic seed deals rising from around $1.5 to $1.6 billion during the first two quarters to $2.2 billion in the July-September period.

Q4 numbers are yet to fully come in, but it’s clear that private investors were incredibly bullish on early-stage startups in the second half of 2020. How long can that keep up? I think the answer is for a while yet, as investors have shown scant enthusiasm for slowing down their dealmaking cadence.

While cadence remains hot generally, seed deals should stay heated as the number of investors who are willing to invest early has increased.

Which brings us to our second question:

2. How long can investors keep writing such quick checks?

A theme that cropped up in the second half of 2020 was the pace at which investors were conducting venture capital deals. This was for a few reasons. To start, venture capitalists have raised larger funds in recent years, meaning that they need larger returns to make the math work out. This led to many investors putting money to work in younger and younger companies, hoping to get in early on a big win. That setup led to more deal competition and faster deal-making.

How? Two things. Investors who were already on a startup’s cap table — already part-owners, in other words — led preemptive rounds, in part to get ahead of other investors who might want to poach the succeeding deal. Other investors, knowing this, seemed to do the same math and move even faster, and earlier, to get around the defense.

So how long can the trend keep up? Given that many big VC firms raised in 2020, many startups picked up some tailwinds from the COVID-19 economy and exits have been strong, forever? Until something stops things? Think of it as Newton’s First Law of startup investing.

What could be the sudden impact to shake up the current set of conditions boosting the pace at which seed and later deals occur? An asteroid strike is probably too extreme, but inertia is one hell of a drug and markets love to stay happy.

Moving along, all the competition to get money to work in hot startups now has had another effect than the mere speed of deal-making; it has also pushed prices higher.

04 Jan 2021

Deep Science: Using machine learning to study anatomy, weather and earthquakes

Research papers come out far too rapidly for anyone to read them all, especially in the field of machine learning, which now affects (and produces papers in) practically every industry and company. This column aims to collect the most relevant recent discoveries and papers — particularly in but not limited to artificial intelligence — and explain why they matter.

A number of recently published research projects have used machine learning to attempt to better understand or predict these phenomena.

This week has a bit more “basic research” than consumer applications. Machine learning can be applied to advantage in many ways users benefit from, but it’s also transformative in areas like seismology and biology, where enormous backlogs of data can be leveraged to train AI models or as raw material to be mined for insights.

Inside earthshakers

We’re surrounded by natural phenomena that we don’t really understand — obviously we know where earthquakes and storms come from, but how exactly do they propagate? What secondary effects are there if you cross-reference different measurements? How far ahead can these things be predicted?

A number of recently published research projects have used machine learning to attempt to better understand or predict these phenomena. With decades of data available to draw from, there are insights to be gained across the board this way — if the seismologists, meteorologists and geologists interested in doing so can obtain the funding and expertise to do so.

The most recent discovery, made by researchers at Los Alamos National Labs, uses a new source of data as well as ML to document previously unobserved behavior along faults during “slow quakes.” Using synthetic aperture radar captured from orbit, which can see through cloud cover and at night to give accurate, regular imaging of the shape of the ground, the team was able to directly observe “rupture propagation” for the first time, along the North Anatolian Fault in Turkey.

“The deep-learning approach we developed makes it possible to automatically detect the small and transient deformation that occurs on faults with unprecedented resolution, paving the way for a systematic study of the interplay between slow and regular earthquakes, at a global scale,” said Los Alamos geophysicist Bertrand Rouet-Leduc.

Another effort, which has been ongoing for a few years now at Stanford, helps Earth science researcher Mostafa Mousavi deal with the signal-to-noise problem with seismic data. Poring over data being analyzed by old software for the billionth time one day, he felt there had to be better way and has spent years working on various methods. The most recent is a way of teasing out evidence of tiny earthquakes that went unnoticed but still left a record in the data.

The “Earthquake Transformer” (named after a machine-learning technique, not the robots) was trained on years of hand-labeled seismographic data. When tested on readings collected during Japan’s magnitude 6.6 Tottori earthquake, it isolated 21,092 separate events, more than twice what people had found in their original inspection — and using data from less than half of the stations that recorded the quake.

Map of minor seismic events detected by the Earthquake Transformer.

Image Credits: Stanford University

The tool won’t predict earthquakes on its own, but better understanding the true and full nature of the phenomena means we might be able to by other means. “By improving our ability to detect and locate these very small earthquakes, we can get a clearer view of how earthquakes interact or spread out along the fault, how they get started, even how they stop,” said co-author Gregory Beroza.