Virgin Orbit reaches orbit for the first time

Virgin Orbit launched its LauncherOne rocket to orbit for the first time today, with a successful demonstration mission that carried a handful of satellites and delivered them successfully to low-Earth orbit on behalf of NASA. It’s a crucial milestone for the small satellite launch company, and the first time the company has shown that its hybrid carrier aircraft/small payload orbital delivery rocket works as intended, which should set the company up to begin commercial operations of its launch system very soon.

This is the second attempt at reaching orbit for Virgin Orbit, after a first try in late May ended with the LauncherOne rocket initiating an automatic safety shutdown of its engines shortly after detaching from the “Cosmic Girl” carrier aircraft, a modified Boeing 747 that transports the rocket to its launch altitude. The company said that it learned a lot from that attempt, including identifying the error that caused the failsafe engine shut down, which it corrected in advance of today’s mission.

Virgin’s Cosmic Girl took off at just before 2 p.m. EST, and then released LauncherOne from its wing at roughly 2:40 p.m. EST. LauncherOne had a “clean separation” as intended, and then ignited its own rocket engines and quickly accelerated to the point where it was undergoing the maximum amount of aerodynamic pressure (called max q in the aerospace industry). LauncherOne’s main engine then cut off after its burn, and its payload stage separated, crossing the Karman line and entering space for the first time.

It achieved orbit at around 2:49 p.m. EST and released its payload of satellites to their target orbit sometime later on schedule, making the mission a complete success.

Virgin Orbit’s unique value proposition in the small launch market is that it can take off and land from traditional runways thanks to its carrier aircraft and midair rocket launch approach. That should provide flexibility in terms of launch locations, allowing it to be more responsive to customer needs in terms of geographies and target orbital deliveries.

In 2017, Virgin Orbit was spun out of Virgin Galactic, to focus exclusively on small payload orbital launch. Virgin Galactic then devoted itself entirely to its own mission of offering commercial human spaceflight. Virgin Orbit itself create its own subsidiary earlier this year, called VOX Space, which intends to use LauncherOne to deliver small satellites to orbit specifically for the U.S. national security market.

 

GitHub’s head of HR resigns in light of termination of Jewish employee

A GitHub internal investigation has revealed the company made “significant errors of judgment and procedure” in the firing of the Jewish employee who cautioned his coworkers about the presence of Nazis in the D.C. area on the day of insurrection at the U.S. Capitol.

In a blog post today, GitHub COO Erica Brescia said the company’s head of HR took full responsibility for what happened and resigned from the company yesterday. GitHub did not disclose the name of the person who resigned, but it’s widely known that Carrie Olesen was the chief human resources officer at GitHub.

In a tweet last night, GitHub’s senior director of global HR services, Gia Colosi, made some comments about the company and human resources. That tweet has since been deleted but the screenshot is below.

In a later tweet, she went on to say that, “Women are in HR to clean up men’s messes. I done and tired.”

Meanwhile, GitHub says it has “reversed the decision to separate with the employee” and is talking to his representative.

“To the employee we wish to say publicly: We sincerely apologize,” Brescia said in the blog post.

After the fired employee made a comment in Slack saying, “Stay safe homies, Nazis are about,” a fellow employee took offense, saying that type of rhetoric wasn’t good for work, the former employee previously told me. Two days later, he was fired, with a human relations representative citing a “pattern of behavior that is not conducive to company policy” as the rationale for his termination, he told me.

In an interview with TechCrunch earlier this week, the now-former employee said he was genuinely concerned about his co-workers in the area, in addition to his Jewish family members. During that interview, he said he would not be interested in getting his job back, but would be interested in other forms of reconciliation.

Threat of inauguration violence casts a long shadow over social media

As the U.S. heads into one of the most perilous phases of American democracy since the Civil War, social media companies are scrambling to shore up their patchwork defenses for a moment they appear to have believed would never come.

Most major platforms pulled the emergency break last week, deplatforming the president of the United States and enforcing suddenly robust rules against conspiracies, violent threats and undercurrents of armed insurrection, all of which proliferated on those services for years. But within a week’s time, Amazon, Facebook, Twitter, Apple and Google had all made historic decisions in the name of national stability — and appearances. Snapchat, TikTok, Reddit and even Pinterest took their own actions to prevent a terror plot from being hatched on their platforms.

Now, we’re in the waiting phase. More than a week after a deadly pro-Trump riot invaded the iconic seat of the U.S. legislature, the internet still feels like it’s holding its breath, a now heavily fortified inauguration ceremony looming ahead.

Image Credits: SAUL LOEB/AFP/Getty Images

What’s still out there

On the largest social network of all, images hyping follow-up events continued to circulate midweek. One digital Facebook flyer promoted an “armed march on Capitol Hill and all state Capitols,” pushing the dangerous and false conspiracy that the 2020 presidential election was stolen.

Facebook says that it’s working to identify flyers calling for “Stop the Steal” adjacent events using digital fingerprinting, the same process it uses to remove terrorist content from ISIS and al-Qaida. The company noted that it has seen flyers calling for events on January 17 across the country, January 18 in Virginia and Inauguration Day in D.C.

At least some of Facebook’s new efforts are working: One popular flyer TechCrunch observed on the platform was removed from some users’ feeds this week. A number of “Stop the Steal” groups we’d observed over the last month also unceremoniously blinked offline early this week following more forceful action from the company. Still, given the writing on the wall, many groups had plenty of time to tweak their names by a few words or point followers elsewhere to organize.

With only days until the presidential transition, acronym-heavy screeds promoting QAnon, an increasingly mainstream collection of outrageous pro-Trump government conspiracy theories, also remain easy to find. On one page with 2,500 followers, a QAnon believer pushed the debunked claim that anti-fascists executed the attack on the Capitol, claiming “January 6 was a trap.”

QAnon sign

Image Credits: Win McNamee/Getty Images

On a different QAnon group, an ominous post from an admin issued Congress a warning: “We have found a way to end this travesty! YOUR DAYS ARE NUMBERED!” The elaborate conspiracy’s followers were well represented at the deadly riot at the Capitol, as the many giant “Q” signs and esoteric T-shirt slogans made clear.

In a statement to TechCrunch about the state of extremism on the platform, Facebook says it is coordinating with terrorism experts as well as law enforcement “to prevent direct threats to public safety.” The company also noted that it works with partners to stay aware of violent content taking root on other platforms.

Facebook’s efforts are late and uneven, but they’re also more than the company has done to date. Measures from big social networks coupled with the absence of far-right social networks like Parler and Gab have left Trump’s most ardent supporters once again swearing off Silicon Valley and fanning out for an alternative.

Social media migration

Private messaging apps Telegram and Signal are both seeing an influx of users this week, but they offer something quite different from a Facebook or Twitter-like experience. Some expert social network observers see the recent migration as seasonal rather than permanent.

“The spike in usage of messaging platforms like Telegram and Signal will be temporary,” Yonder CEO Jonathon Morgan told TechCrunch. “Most users will either settle on platforms with a social experience, like Gab, MeWe or Parler, if it returns, or will migrate back to Twitter and Facebook.”

That company uses AI to track how social groups connect online and what they talk about — violent conspiracies included. Morgan believes that propaganda-spreading “performative internet warriors” make a lot of noise online, but a performance doesn’t work without an audience. Others may quietly pose a more serious threat.

“The different types of engagement we saw during the assault on the Capitol mirror how these groups have fragmented online,” Morgan said. “We saw a large mob who was there to cheer on the extremists but didn’t enter the Capitol, performative internet warriors taking selfies, and paramilitaries carrying flex cuffs (mislabeled as ‘zip ties’ in a lot of social conversation), presumably ready to take hostages.

“Most users (the mob) will be back on Parler if it returns, and in the meantime, they are moving to other apps that mimic the social experience of Twitter and Facebook, like MeWe.”

Still, Morgan says that research shows “deplatforming” extremists and conspiracy-spreaders is an effective strategy and efforts by “tech companies from Airbnb to AWS” will reduce the chances of violence in the coming days.

Cleaning up platforms can help turn the masses away from dangerous views, he explained, but the same efforts might further galvanize people with an existing intense commitment to those beliefs. With the winds shifting, already heterogeneous groups will be scattered too, making their efforts desperate and less predictable.

Deplatforming works, with risks

Jonathan Greenblatt, CEO of the Anti-Defamation League, told TechCrunch that social media companies still need to do much more to prepare for inauguration week. “We saw platforms fall short in their response to the Capitol insurrection,” Greenblatt said.

He cautioned that while many changes are necessary, we should be ready for online extremism to evolve into a more fractured ecosystem. Echo chambers may become smaller and louder, even as the threat of “large scale” coordinated action diminishes.

“The fracturing has also likely pushed people to start communicating with each other via encrypted apps and other private means, strengthening the connections between those in the chat and providing a space where people feel safe openly expressing violent thoughts, organizing future events and potentially plotting future violence,” Greenblatt said.

By their own standards, social media companies have taken extraordinary measures in the U.S. in the last two weeks. But social networks have a long history of facilitating violence abroad, even as attention turns to political violence in America.

Greenblatt’s repeated calls for companies to hire more human moderators, a suggestion often made by experts focused on extremism. He believes social media could still take other precautions for inauguration week, like introducing a delay into livestreams or disabling them altogether, bolstering rapid response teams and suspending more accounts temporarily rather than focusing on content takedowns and handing out “strikes.”

“Platforms have provided little to nothing in the way of transparency about learnings from last week’s violent attack in the Capitol,” Greenblatt said.

“We know the bare minimum of what they ought to be doing and what they are capable of doing. If these platforms actually provided transparency and insights, we could offer additional — and potentially significantly stronger — suggestions.”

Original Content podcast: Martin Scorsese and Fran Lebowitz have a good time in ‘Pretend It’s A City’

The concept behind the new Netflix documentary series “Pretend It’s A City” is pretty straightforward: Author Fran Lebowitz talks, while Martin Scorsese (who’s both director and an on-camera presence) listens and laughs.

Lebowitz’s musings across seven episodes are organized by loose themes, such as “Metropolitan Transit” and “Library Services,” with the more recent footage interspersed with clips from older interviews. That’s pretty much it as far as structure goes; while Lebowitz shares a number of amusing anecdotes, there’s no attempt to explore the broader arc of her career or explain why we’re watching a show about her.

And yet, as we discuss on the latest episode of the Original Content podcast, we both enjoyed watching the entire show.

Darrell describes Lebowitz as the consummate party guest, full of aphorisms and provocative opinions on everything from technology to sports to the New York York City subway. And there’s something delightful about watching an accomplished director like Scorsese just relaxing and having a good time.

The downside: It could be a little exasperating when we didn’t find Lebowitz’s remarks quite as hilarious as Scorsese did, and watching one episode after another meant that she eventually wore out her welcome. So it’s probably best to enjoy the series an episode at a time, rather than binging the whole thing at once.

In addition to reviewing “Pretend It’s A City,” we also discussed Nielsen’s rankings of the most popular streaming services of 2020.

You can listen to our review in the player below, subscribe using Apple Podcasts or find us in your podcast player of choice. If you like the show, please let us know by leaving a review on Apple. You can also follow us on Twitter or send us feedback directly. (Or suggest shows and movies for us to review!)

If you’d like to skip ahead, here’s how the episode breaks down:
0:00 Intro
0:34 Listener email
5:46 Nielsen streaming data discussion
14:03 “Pretend It’s a City” review

After a record year for Israeli startups, 16 investors tell us what’s next

Israel’s startup ecosystem raised record amounts of funding and produced 19 IPOs in 2020, despite the pandemic. Now tech companies across industries are poised for an even better year, according to more than a dozen investors we talked to in the country.

Mainstay sectors like cybersecurity continue to matter, they said, but are maturing (more about that here). Some people are more excited by emerging areas like artificial intelligence, which has been a focus of the country’s military for years, and like cybersecurity is now producing many fresh teams of founders. Other investors felt that a broader range of industries, like fintech and biotech, would eventually produce the biggest companies in the country.

Overall, local investors cited the country’s focus on global markets from day one, general support from the Israeli government and deep relationships with Silicon Valley and other global tech centers as additional factors that are powering it forward today.

Here are the investors in their own words, for any TechCrunch reader who is interested in hiring, investing or founding a company in the country. Oh, and one more thing. We just launched Extra Crunch in Israel. Subscribe to access all of our investor surveys, company profiles and other inside tech coverage for startups everywhere. Save 25% off a one- or two-year Extra Crunch membership by entering this discount code: THANKYOUISRAEL

The investors:


Boaz Dinte, Qumra Capital

What trends are you most excited about investing in, generally?
At Qumra, we get excited about companies that disrupt traditional industries while doing good and improving quality of life. Our portfolio includes some great examples such as Fiverr that has disrupted the labor market by unlocking the global talent pool, or Talkspace, which is providing access to therapy to all.

What’s your latest, most exciting investment?
Our latest investment is At-bay, the insurance company for the digital age. At-bay offers an end-to-end solution with comprehensive risk assessment, a tailored cyber insurance policy, and active, risk-management service.

Traditional insurers don’t have the know-how to properly and continually assess risk and approach digital risk the same way they approach physical products, through a statistical model that tries to predict the future based on past events. This a great example of company that is disrupting a traditional market.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
As a growth fund, we are sector agnostic and diversify our investments across multiple industries. Would be happy to add proptech and agritech startups to our portfolio.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
We stay clear of nonregulated industries and do not invest in cryptocurrency-related companies, gambling, etc.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
We are focused on Israeli and Israeli-related companies. As growth companies they may have moved to NY or CA with their headquarters and maintained their R&D in Israel.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
A great amount of talent is cultivated in the military, which has spawned innovative cyber, AI and machine-learning companies. Also, significant experience and know-how have been accumulated here in big data analytics. SaaS models and cloud technologies have eliminated some of the barriers for Israeli companies and enable companies to quickly set up and set up a proof of concept.

A few highlights in our portfolio include AppsFlyer, JoyTunes, Riskified, Talkspace and Guardicore.

Data-driven AppsFlyer, spearheaded by Oren Kaniel, is an exciting mobile-attribution company that is rapidly growing ($200 million+ ARR in 2020) yet maintains a unique DNA. JoyTunes, led by Yuval Kaminka has developed a music-learning platform that has skyrocketed in 2020. The platform has been widely adopted doing so much good for so many people in a short amount of time. Guardicore is disrupting the traditional firewall market by providing fine-grained segmentation for greater attack resistance. Led by CEO Pavel Gurevich the company is seeing excellent traction. Riskified makes e-ommerce easier and safer and enables a thriving e-commerce environment. Founder duo Eido Gal and Assaf Feldman are a powerhouse of vision and execution capabilities. Talkspace has not only created the leading online therapy business, but is actually improving the quality of life of hundreds of thousands of Americans, which are gaining access to therapy for the first time. Founding husband and wife Oren and Roni Frank are the ultimate power couple — creating an incredible business while creating some real impact.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Tech investors must make sure that Israel is part of their portfolio. Same as VC funds are deeply acquainted with Silicon Valley, tech investors cannot ignore this hub of innovation that has produced global market leading companies and serial entrepreneurs

What are the opportunities startups may be able to tap into during these unprecedented times?
Products and services that require anything requiring on-site visits and integration as well as a long sales cycle involving face-to-face meetings and customer education are negatively impacted during this time. The upside is that companies that will develop a remote and simplified approach can reap gains from this time. Such an example is Augury from our portfolio that has developed an end-to-end solution to provide manufacturers with early, actionable and comprehensive insights into machine health and performance. This has proved to be of crucial value in the supply chain during the pandemic.

How has COVID-19 impacted your investment strategy?
Earlier in the month we have closed our third fund, Qumra III, at $260 million. This was done in a short time in a period when traveling and face-to-face meetings were impossible. Commitments to this fund, which is larger than its predecessor, included increased investments form existing LPs as well as new LPs from new geographies. This is a vote of confidence in the Israeli growth market in general and in Qumra in particular and has been a great achievement and source of hope going forward.

Rafi Carmeli, Viola Growth

What trends are you most excited about investing in, generally?
Platforms that are transforming how people and businesses operate, go about their business or leverage their core assets, using superior products, data and AI.

What’s your latest, most exciting investment?
Zoomin Software.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
Transformation of the CFO and treasury suite of tools.

What are you looking for in your next investment, in general?
A+ team, superior product demonstrated with business/market traction and a sizable market opportunity.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?

Any area that needs to compete both with incumbents and also a set of already successful “new age” companies that made the first step of meaningful disruption.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
More than 50%.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?

Plenty of interesting opportunities but like many places, competitive around the best of the best.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
Definitely see changes in evolution of young startups given the behavioral changes caused by COVID.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
Any area that is exposed to mass physical engagement (pockets in travel, food, sports, etc.) are at risk. Remote engagement and productivity have potential to disrupt more industries, such as corporate events/virtual events.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
Founders are generally resilient and based on their view on the company’s position post-COVID (winner/at risk) and the capital resources available, should decide on appropriate level of caution/aggressiveness.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Yes in many areas. In general software has proven to be a winner and specifically SaaS as a business model has proven its resilience.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
The speed and decisiveness at which humanity acted to adjust to the effects and aftermath of the pandemic, and importantly to proactively get us all out of the health and economic crisis as quickly as possible (e.g., the speed of creating vaccines).

Any other thoughts you want to share with TechCrunch readers?
If something won’t matter in five years, don’t waste more than five minutes worrying about it now — easier said than done!

Yonatan Mandelbaum, TLV Partners

What trends are you most excited about investing in, generally?
Fintech (specifically embedded finance or financial SaaS), synthetic bio. This is in addition to traditional focus areas that we remain bullish on — cloud infrastructure, ML infra and cyber.

What’s your latest, most exciting investment?
Unit.co, meshpayments.com.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
There simply isn’t enough innovation in fintech from the Israeli ecosystem. Our locale has managed to produce three of the most prolific insurtech companies (Next, Lemonade and Hippo), has a strong history of successful fintech companies (Payoneer, Forter, Riskified) and even has a few very promising earlier-stage ventures (Unit, Melio). That said, only about 10% of our overall deal flow are fintech companies. Areas such as vertical banking, embedded finance, compliance as a service and consumer finance consistently get overlooked by young Israeli founders.

What are you looking for in your next investment, in general?
The cliche VC answer: strong team, big market. This remains constant during all times.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
(1) Cybersecurity — with one caveat. Israel will always be at the forefront of cyber innovation, and thus there will always be an opportunity for fledgling cyber companies in Israel. That said, it is 100% oversaturated, and there are too many examples of strong technical founders creating “yet another” SaaS security startup. (2) Remote work collaboration — clearly an issue that needs solving, but we have unsurprisingly seen an absurd amount of companies in the space. They are largely reactionary companies, and the companies that will prove to be the winners in this market have already been in the market for quite some time (Zoom, Alack, Miro, etc.).

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
More than 50%.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Fintech and bio are very well-positioned to thrive in Israel. In 10 years I wouldn’t be surprised if Israel is more well-known for those two sectors than it is for its cyber companies. Some companies to keep an eye on: Next Insurance, Unit, Mesh Payments, Aidoc, Deepcure, Immunai.

How should investors in other cities think about the overall investment climate and opportunities in your city?
I’m not saying anything new, but Israel is known as the startup nation for a reason. There is an incredible, thriving entrepreneurship culture that breeds fascinating companies weekly. Interestingly, valuation trends seem to trail the U.S. by about 12-18 months. So for later-stage VCs around the globe, Israel can represent an interesting opportunity to do deals of the same quality that they are doing in their locale, but for a more reasonable price.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
Not particularly. Israel a small country, and even if there may be a residential exodus from Tel Aviv, there won’t be a commercial one.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
Travel and proptech are more exposed due to COVID-19.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
COVID hasn’t impacted our investment strategy much. We have remained steady in our search for interesting early-stage software opportunities and our commitment to invest substantial amounts even at the seed round. The biggest worries of the portfolio founders surround slower enterprise sales cycles due to WFH and smaller budgets from potential customers. Our early advice to founders was to ensure runway for 18 months in order to weather the storm. Recently however, after witnessing the incredibly founder-friendly fundraising landscape, our advice has been to put the pedal to the metal, reach certain benchmarks and raise capital.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
No, there still hasn’t been enough time. That said, I will say that the initial enthusiasm of WFH has faded. The vast majority of our companies are clamoring to be back in the office.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
My grandparents both recently passed away from COVID-19. Despite the tragic loss that it was for my family, there was one moment that truly gave me hope. I had the opportunity to visit my grandmother in the COVID ward at a local hospital before she passed (in full protective gear of course). Before entering the ward, while the nurses were going over the protocols with me and four other individuals who were there to visit their sick family members, I was surprised to realize that the five of us in the room were an eclectic bunch. Jewish, Muslim, religious and not, young and old. In that moment, we all gave each other strength, wished each other well and it gave me hope that we can truly become a unified country in the near future. The next exponential growth that occurs in the Israeli ecosystem will be when there is an influx of minorities (Arabs, ultra-Orthodox) into the workforce.

Natalie Refuah, Viola Growth

What trends are you most excited about investing in, generally?
DevOps, martech, digital health.

What’s your latest, most exciting investment?
RapidAPI.

What are you looking for in your next investment, in general?
Exciting team, hypergrowth, disruptiveness.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Cyber, automotive.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
Close to 100%.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
DevOps, cyber, enterprise software.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Very positively.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
There will be changes, that’s for sure.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19?

E-commerce tech-related companies will thrive.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
We lowered our check size per company. My advice — if you are “with COVID trend” push hard, if you are “against COVID trend” — preserve cash.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
More time with my kids, but in general I miss hugging people when i meet them, and I prefer meeting people face to face.

Any other thoughts you want to share with TechCrunch readers?
Let the vaccine go!

Daniel Cohen, Viola Ventures

What trends are you most excited about investing in, generally?
Games, vertical AI and AI agencies, digital health.

What’s your latest, most exciting investment?
Hyperguest, creating direct connectivity between hotels and OTAs. It’s the perfect next-gen travel infrastructure for the world post-pandemic.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
The biggest trend in the post-COVID world will be the new work environment. We would love to see more startups that will create corporate solutions that are focused on the future of work. That can be at the workplace or at the home.

What are you looking for in your next investment, in general?
Unique, innovative go-to-market. Leveraging technology to reach consumers in a more innovative way. It’s basically innovation in growth hacking, not only in great products.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Cybersecurity — the market is real and important, but there are too many startups with small niche solutions.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
More than 50%.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
The most exciting trends locally are everything AI with focus on B2B apps. Same goes with digital health and consumer-focused health applications.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Israel is the #1 region globally in unicorn production, probably the hottest startup region right now.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
No.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?

The biggest change has been on company culture, which is hard to maintain in a distributed work-from-home environment. Companies need to be innovative and creative in maintaining/building culture, which was so much easier pre-COVID.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic? What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.

The announcements around the vaccines make it clear that the end of the pandemic is near. I think 2021 will be amazing.

Ben Wiener, Jumpspeed Ventures

What trends are you most excited about investing in, generally?
Jumpspeed invests exclusively in pre-seed and seed-stage startups from the Jerusalem startup ecosystem.

What’s your latest, most exciting investment?
MDGo.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
Not really, we are sector agnostic/bottom-up rather than thesis driven.

What are you looking for in your next investment, in general?
10x better, paradigm-shift solution to a large, near-term, acute business problem, produced and led by a complementary founding team (hacker+hustler+designer).

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Cybersecurity, crypto, telehealth.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
EXCLUSIVELY, see above.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Jerusalem is well-positioned in certain clusters such as computer vision, general enterprise SaaS, AI/ML and healthtech.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Our city’s startup ecosystem is underexploited and generates a few fantastic under-the-radar opportunities per year.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
Yes.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
Little direct impact on strategy because by definition I am investing in things that will go to market and ripen over years.

Founders’ biggest worries are employee well-being, after that access to overseas customers and markets.

Advice to founders: Stay calm and healthy, play the long game, take care of yourself, your family and your employees, don’t panic or cut staff reactively.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Yes but not that I can attribute directly to the pandemic.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
No specific moment, just the general resilience and ability to adapt to the radically changing new realities that our portfolio founders have exhibited.

Any other thoughts you want to share with TechCrunch readers?
“Entrepreneurship in advanced technology, is not merely a matter of decision-making; it is a matter of imposing cognitive order on situations that are repeatedly ill-defined.” — W. Brian Arthur, “The Nature of Technology”

No situation has been this ill-defined in the past century. Keep calm and carry on 🙂

Inbal Perlman, TAU Ventures

What trends are you most excited about investing in, generally?
At TAU, we are interested in a variety of sectors and evaluate each potential investment independently. In regards to trends, we look at trends with a grain of salt understanding that trends might come and go. When we see a particular trend, we try to understand if there is a need behind the trend and see beyond the initial hype. We want to assure that a startup is meeting a real need in the market. We are particularly interested in technologies that do not require too much time and capital to get to market.

What’s your latest, most exciting investment?
We invested in a company called Xtend, which is creating human-machine telepresence allowing us to “step into” a machine, anywhere in the world, breaking the limits of physical reality. In particular, it develops solutions that allow people to interact with drones and other unmanned machine technologies. The company’s technology enables humans to extend themselves into the action by allowing them to virtually sit inside the drone for various tactical missions. What is exciting about Xtend is how the technology can be implemented in a variety of ways from defense and homeland security to reimagining entertainment, gaming and cinematography.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
We like to see startups that are disrupting traditional industries by solving basic challenges and needs with innovative means. There are some industries that haven’t changed in many years. And if you create a technology that can be simply integrated into existing markets, it has the potential to gain significant traction and drastically change an industry. So we would love to see more startups going “back to the basics” asking questions about commonly felt pain points and innovating to solve those pains.

What are you looking for in your next investment, in general?
We want to get the feeling from the entrepreneur that they are professional, ready for the entrepreneurial journey, have the right mindset and skill set and will conquer the world. We understand that with early-stage startups, the product or service will likely change and therefore pay significant attention to the entrepreneurs themselves as an early indicator of future success.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Technology trends that often come and go can create an oversaturated market for startups. For example, previously there was hype around drones. Now, only the strongest companies in the drone industry have stuck around. Today, there are many startups responding to needs exacerbated by the COVID-19 pandemic such as remote learning and remote work. It is important to filter out whether these are solutions that will be around for a while and survive a post-COVID world or are temporary.

We are more cautious about particular industries. In edtech, those who have successfully done exits, have done so at low amounts ($200 million-$300 million). For us, we are seeking larger exits. Blockchain is a difficult sector because it lacks a clear regulatory environment, subsequently raising many questions. Similarly, the cannabis industry also does not have a fixed regulatory environment across countries. Any small regulation change can highly impact the company. These are the sectors and areas that we are more cautious around.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
We invest in startups that are exclusively Israeli startups but are targeted for a global market. At TAU Ventures, we have 1,000 sq. meter coworking office space where majority of our portfolio companies and accelerator program companies sit on a daily basis. On a daily basis we are engaging with our startups through kitchen chats and hallway encounters. Through our coworking space, we are directly investing in our local ecosystem both supporting entrepreneurs and identifying rising entrepreneurs.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
In Israel, many Israeli entrepreneurs bring a high level of technical capabilities that they learn in the army such as in cyber and AI. After acquiring this knowledge and ability, they are well-prepared and able to transfer it to the commercial area. This is why we see many successful startups coming out of Israel particularly in these fields.
For example, founders of our portfolio company, SWIMM all come from leading elite tech training units in the army (Aram, Talpiot) and before founding SWIMM, established ITC (Israel Tech Challenge, a nonprofit high-tech academy that offers in-demand tech training programs in English in Tel Aviv, inspired by the IDF’s 8200 unit).
Furthermore, Tel Aviv University (TAU), our affiliated university, is a leading research institute and academic leader in AI, engineering and other sciences and is producing entrepreneurs with high levels of knowledge. 50% of entrepreneurs in Israel have studied at TAU. And TAU ranked eighth worldwide as a top university producing VC-backed entrepreneurs, and the first outside of the US. So we are very excited by the added advantage we have in being affiliated closely with the university and the talent which it is producing.

How should investors in other cities think about the overall investment climate and opportunities in your city?
The significant advantage of Israel is its small size. Because there is little to no local market, startups automatically think globally in their marketing and growth strategies. To best understand Israel and Israelis, it’s important to understand the influence of the military and the reality of thriving in a complex political environment in the Middle East. Military service is compulsory for all Israelis at the age of 18. The army plays an important role in the socialization, education, skills development, social network and fabric of Israeli society. Many personal and professional networks are the result of army service. As Israelis, we live in an environment where we need to constantly be innovative and one step ahead to survive. This innovative mindset has been instilled in our state of mind and cultural DNA.
We are proud that In Israel we have academics at the highest level in the world across a variety of fields. Multinationals from all over the world have local R&D centers or innovation hubs in Israel to source from the local talent pool. This presence of multinationals creates mutual exposure for both startups and corporates alike.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
At TAU Ventures, the majority of our portfolio and accelerator companies sit next to us at our 1,000 sq. meter coworking space. At our offices, we love seeing our founders and their employees on a regular basis. This is how we have successfully created a strong familial culture at our VC. Throughout COVID, companies have continued to come in person to the office. This has reinforced to us that there is no exchange for face-to-face engagement. As early-stage investors, we understand that at this stage it is all about the people. At the end of the day, people want to be around people and you can not replace the experience of sharing a cup of coffee and shaking someone’s hand.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19?
COVID affected companies in different ways. For some, it boosted business and for others it led them to shift their strategy and approach. Our companies who had clients in the travel industry or airports were obviously affected. In this situation, the company looked at their technology and reconsidered where and how their technology could be relevant to other consumers and industries. This particular company saw an opportunity to shift to logistics and supply chain clients. COVID is presenting opportunities for companies to reevaluate their target market and discover new applications of their technology for different purposes.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
As a result of COVID, we have come to understand that things simply are taking more time, such as processes of raising funds or achieving the next milestone. We are patient and empathetic to the experiences of our startups.

The startups’ most significant worry is that they will not succeed to raise enough funds before reaching their next milestone. And more so, if they are unable to prove their achievement milestones in time, then they might be forced to close business. As a result, our startups are raising more funds during this time to assure a longer runway. Our startups are also keenly aware of how periods of crisis might call on them to pivot and adapt to the current circumstances. Startups are making decisions around adjusting budgets, determining whether customers are still relevant, anticipating whether the circumstances are temporary or will renormalize and ultimately whether there is a completely new path to pivot to.
In light of the circumstances, we are advising our portfolio startups to raise more funds in next rounds to have runway for at least 1.5 years and not to be afraid of making drastic changes (i.e., pivots, changing budget, raising more funds).

As a fund, we are assuring our entrepreneurs that if they choose to change paths, it is okay. Working from a coworking space alongside many of our founders enables us to stay updated on the startups, foster a strong internal ecosystem and network, and provide ongoing psychological safety for our entrepreneurs, which is ever so needed during these unprecedented times for startups.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Two of our portfolio companies have experienced impressive growth and are thriving in 2020.
1. Gaviti is a SaaS company that specializes in receivable collections acceleration. Its system maps out the collection process to spot inefficiencies and optimize clients’ procedures. Specifically during COVID, many companies had increased economic pain points related to generating cash flow on a timely, efficient basis. Gaviti’s solution helps companies manage their collection payments. As a result of of the economic crisis this year, Gaviti saw fast growth in clients and have thrived during 2020.
2. Medorion understands that health companies and hospitals want us to get regular health checkouts. Using AI and behavioral science, Medorion is driving people to take action for their own health by increasing engagement and communication between insurance companies and patients. During COVID, they are combating the coronavirus pandemic by applying their technology to create highly personalized engagement and communication plans targeted at those individuals who are at highest risk of COVID-19.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
In recent months, it is inspiring to see our entrepreneurs continue fighting despite the uncertain economic and global circumstances. Many of our companies are continuing to recruit and hire. Our founders are resilient and are finding creative means to succeed. It is also a blessing to have a large coworking space hosting the offices of 10 startups and to see employees continue to come in to the office day in and day out working with their teams.

Any other thoughts you want to share with TechCrunch readers?
TAU Ventures is a venture capital fund, affiliated with Tel Aviv University, for investing in early-stage, cutting-edge technologies based in Israel. TAU Ventures is the first and only university-affiliated VC in Israel.

The fund has a unique, triangle model creating ecosystem connections between industry, academy and entrepreneurs. We connect to available resources at Tel Aviv University, foster strong partnerships in the high-tech industry and support entrepreneurs as they work side by side in the coworking office space of the VC located on the university campus.

TAU Ventures also runs incubation programs in a variety of tech fields and offers a vibrant hub for entrepreneurs with concrete opportunities for design partnerships with international leading companies: AlphaC program (in partnership with NEC, Checkpoint, Innogy, Team8 and Cybereason) and The Xcelerator (an acceleration program with the Israeli Security Agency).
In 2018, IVC awarded TAU Ventures an award for one of the most active VCs in Israel. And in 2019, Geektime ranked TAU Ventures among the top five best VCs in Israel.

David (Dede) Goldschmidt, Samsung Catalyst Fund

What trends are you most excited about investing in, generally?
Digital transformation and AI.

What’s your latest, most exciting investment?
Solarisbank (Germany).

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
AI-acceleration technologies seems to be overcrowded.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
Less than 50%.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
AI, cyber security. Excited about our portfolio company Innoviz (LiDAR). Excited about Avigdor Willenz, serial entrepreneur, including our portfolio company Habana Labs that was acquired for $2 billion.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Highly dynamic and competitive, very global approach of entrepreneurs, risk takers, “can-do” approach.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
I don’t expect that to happen because a strong ecosystem of entrepreneurs, investors and service providers would be needed, and it takes years for that to grow.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19?
Industries serving brick-and-mortars are likely to get weakened by accelerated transition to online.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
Our advice has been to be careful with cash. There is a disconnect between the strong momentum in the tech financing vis-a-vis overall economic crisis (unemployment, governments deficits, etc.). We have yet to see the full impact of COVID-19 on tech startups and better be prepared for that.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Yes, for pure digital plays.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
Frankly, I remain concerned because of the disconnect alluded to above. Vaccine momentum brings some hope, but too early to tell.

Any other thoughts you want to share with TechCrunch readers?
I am very concerned from potential crunch in early stage. While overall financing numbers are growing almost across all geographies, investments are heavily weighted toward later stage and unicorns, and much fewer new companies are being formed. This will have dramatic impact on the tech ecosystem a few years out, if it does not change in 2021.

Dror Nahumi, Norwest Venture Partners

What trends are you most excited about investing in, generally?
We are a large fund that invests in early-to-late-stage companies across a wide range of sectors with a focus on consumer, enterprise and healthcare. My focus is primarily in Israeli companies and I’m seeing many exciting startups in security, SaaS, enterprise and cloud infrastructure, robotics and semiconductors.

What’s your latest, most exciting investment?
We are naturally excited about all our latest investments. I recently invested in three seed-stage companies that are in stealth mode: an open-source cloud infrastructure company, a people analytics (HR) SaaS company and a next-generation business-intelligence platform.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
I believe there is a massive opportunity for startups to develop new solutions to fuel the digitization of next-generation enterprises. We’re seeing innovation and activity in this sector, but there’s so much more to be done, especially in light of challenges and vulnerabilities that COVID-19 has exposed. The hottest areas will be in human resources, production, security, infrastructure, sales and remote work.

What are you looking for in your next investment, in general?
We look for a great team, strong intellectual property and compelling execution. The new product idea can be a replacement (i.e., replace existing products that are aging, low performance) or a new category. Gong.io is a great example of a new category we invested in early on. We created the new “revenue intelligence” category that offers businesses automated, unfiltered and real-time insights on customer interactions and deals. This helps businesses understand what’s actually being said to transform the way they go to market.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Security is currently oversaturated. There are too many companies doing similar things, which can make it difficult for newcomers to break through. Additionally, most emerging security startups are all claiming to use machine learning and AI to combat the next level of breaches. These are important areas to focus on, but it’s getting harder for these companies to differentiate themselves. That aside, we have made several great investments in security over the years and will continue to invest in great teams.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
Our team in Israel is 100% focused on our local market.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Numerous industries in the Israeli market are poised to thrive and are doing so currently. Examples include startups in the security, SaaS, enterprise and the cloud infrastructure space, and even consumer services. We are especially excited to continue to witness the growth and success of Gong, VAST Data, WekaIO, Cynet, Wiliot, ActiveFence, Ermetic and SundaySky while building new companies who are still in the stealth stage.

How should investors in other cities think about the overall investment climate and opportunities in your city?
At Norwest and especially among our Israel portfolio companies, we’ve been able to let our companies mature. We’ve given them the time and support they need to reach maturity. This is a very different approach than what we are seeing in other environments.

Today, growth comes before M&A and companies get valuations much quicker. In past years, it was hard to raise money but it’s not so difficult now. In Israel, inside sales and marketing analytics allow companies to sell more effectively now than in the last decade. This gives entrepreneurs flexibility, room to expand into other markets and the ability to hire top talent globally versus just within their own region.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
Israel is so small that you are never really too far outside a major city. We expect our startup hub to stay intact even if individuals and businesses choose to move slightly outside of the main CBD.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
The travel industry has been massively impacted in every market globally since the COVID-19 outbreak. That said, that means there is a huge opportunity to fill gaps based on business and consumer needs as we approach a post-pandemic normal.

I would say that solutions with huge potential are those centered on hybrid workforces as enterprises rethink the future of work. These have the potential to significantly benefit from the pandemic in the short and long term.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
COVID-19 has not impacted our investment strategy. However, in recent conversations with our portfolio companies, it’s clear that brands can emerge stronger than ever with an adaptable strategy, adjusted expectations, strong marketing and B2C communications, and compassionate leadership.

Over the past several months, we’ve advised companies in our portfolio to focus on building their business while prioritizing the safety of their workforce, which could mean further extending work-from-home policies or making remote work a standard option in their hiring practices. Companies’ ability to innovate and adapt while building their business around the new normal will be better positioned to succeed in a post-COVID landscape.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
While it’s not one particular moment, there were many times this past year where our portfolio companies faced major challenges due to the pandemic and were still able to continue to expand their businesses. Every sales quarter that shows growth and success gives me hope.

Sharin Fisher, Fort Ross Ventures

What trends are you most excited about investing in, generally?
I’m mostly excited about AI/ML technologies, cybersecurity companies and the global opportunity in B2B SaaS companies in general; companies that help to optimize business processes and boost efficiency (e.g., one of our portfolio companies, Kryon, is operating in the robotic process automation space, evaluating business processes, and recommending which ones to automate in order to free up underutilized human talent). We are seeing many successful Israeli SaaS companies across the board, from marketing and collaboration tools, business intelligence products, to payment systems.

What’s your latest, most exciting investment?
My latest investment was in a B2B SaaS company that disrupts a huge market. I’m mostly excited about the team, which contains senior executives and second-time entrepreneurs with domain expertise.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?

We are looking for companies that have a big market, a compelling story and a clear path to building a large business. When we invest, companies already have traction, a diverse customer base, established and repeatable sales process and metrics. So, when we dive deeper into the company’s metrics we would like to see they support the company’s assumptions and ability to scale up properly.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
WFH enablement tools (from security to communication tools).

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
We are a global VC with a distributed team, focused on investing in midstage companies based in the U.S. and Israel, that can become global leaders. I’m leading our investments in the Israeli companies, globally.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Israel is well-positioned to build and grow large companies that can become segment leaders. We are seeing many leading companies across multiple sectors such as mobility (Moovit, Mobileye), cybersecurity (Armis, Cybereason, SentinelOne), fintech (Lemonade, Payoneer, eToro), information technology (Jfrog, Snyk), etc.

How should investors in other cities think about the overall investment climate and opportunities in your city?
The Israeli ecosystem has matured significantly over the last decade, mainly due to repeat entrepreneurs who bring knowledge and relevant experience to the table. They aspire to build meaningful companies. On top of that, there’s more available late-stage capital, allowing companies to stay private longer and become mega-acquisitions/IPO.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
The COVID-19 crisis has impacted Israeli founders in terms of how and from where they work. As many Israeli startups aim to tap into the U.S. market, they usually relocate pretty early on, mainly to build relationships with potential customers. Since the pandemic has created a situation where you have to sell your product/service remotely, physical location has become less relevant. In the short term, I believe we’ll see more Israeli founders working out of Israel, especially when taking into account the advantages (e.g., lower cost of living compared to other places like NYC/San Francisco). In the long run, there’s a high probability that founders who can keep the same sales efficiency remotely will continue to work out of their home country.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
All of the segments we look at are thriving or haven’t changed significantly. I’m mostly interested in startups that are able to sell remotely and have an established inside sales team with a simple integration/deployment, because I believe they are in a better position to scale faster even in this climate.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
Our investment strategy remains the same; we are still looking to back companies that can become global leaders and aspire to disrupt huge markets. In terms of the work with our portfolio companies, our founders have already made the needed adjustments and are now more focused on capital efficiency and expanding the runway.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Most of our portfolio adapted to the crisis quite fast and have enough runway to reach their next milestone. For some of our portfolio companies, especially those that support the digital transformation, the pandemic has created business opportunities and accelerated the adoption of their technology. As a result, we deployed additional capital to help them leverage this momentum.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
Although the pandemic has created uncertainty for all of us, we have still been seeing more (+14) Israeli companies reaching unicorn status/going public during the past months.

Adi Levanon Chazan, Flint Capital

What’s your latest, most exciting investment?
Sensi.ai.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
A bit over 50% of the portfolio are Israeli startups, the remaining 50% divide between Europe and the U.S.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Fintech has been continuing to grow and will thrive over time. I’m excited about companies like Melio, Unit, Acrocharge and Rapyd.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Very important to have local partners and try to expand the local network as much as possible, best would be to have a person on the ground dedicated to Israeli investments.

Chaim Meir Tessler, partner, OurCrowd

What trends are you most excited about investing in, generally?
Fintech, cloud services, quantum software, cyber.

What’s your latest, most exciting investment?
Closed at time of writing this: D-ID.
Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
Built from the ground up remote educational platforms.

What are you looking for in your next investment, in general?
Founders I like to work with and believe in.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Micromobility, autonomous car sensors.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
60%-70% local.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Cyber, computer vision, semiconductor, quantum computing all thrive.

The banking infrastructure companies starting to emerge look fantastic.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Great market, easy to network, mostly friendly to coinvestment.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
With the world becoming flat, innovation will definitely sprout up in new areas.

How has COVID-19 impacted your investment strategy?
COVID hasn’t strongly affected our overall strategy other than a slowdown in March/April. The biggest worry is inadequate funding/runway.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
Realizing that we landed in this pandemic on a moment in history that we had the tools needed to enable a large amount of the world’s population to continue working without having to be in a specific physical location.

Noam Kaiser, Intel Capital

What trends are you most excited about investing in, generally?
Cloud adoption through digital transformation to hybrid cloud, 5G, vertical AI-based SaaS.

What’s your latest, most exciting investment?
Cellwize — basically opening up RAN (4G and 5G) to any API, cloud environment compatibility.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
Solution allowing application to run across data sources in multiple buckets across hybrid/multicloud environments.

What are you looking for in your next investment, in general?
Deep understanding of the area and the customer needs, a complementing trend, high revenue potential within five years.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
MLOps, too many, too quickly, Storage at large.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
More.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Safebreach — Red Team automation for cybersecurity teams, Verbit — vertical AI, transcription.

How should investors in other cities think about the overall investment climate and opportunities in your city?
It hasn’t slowed down, plenty of opportunity, you have to move fast.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
I don’t see the pandemic having that effect. Hubs will remain as are.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19?
Anything relying on on-prem slowed down; this can be semiconductors and retail. but it’s recovering.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
Not really, we invest the same amount into the same amount of companies at same stages as before.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Yes, deals are closing, financing is taking place as well as M&As.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
Simply lively investment atmosphere, new up rounds and several M&A processes emerging.

Any other thoughts you want to share with TechCrunch readers?
Careful optimism, raise aggressively and cash up when possible, refresh the pipeline and get to it, corporates are back into closing deals.

Tal Slobodkin, StageOne Ventures

What trends are you most excited about investing in, generally?
Cloud computing and​ software infrastructure​/cybersecurity/DevOps/connected everything/deep compute, big data and AI/next-generation storage and data center.

What’s your latest, most exciting investment?
R-Go Robotics are pioneering an artificial perception technology that enables mobile robots to understand complex surroundings and operate autonomously just like humans.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
More sophisticated cyber solutions, additional MLOps technologies, AI solutions.

What are you looking for in your next investment, in general?
Deep-tech technology solving complex enterprise challenges.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
We see a lot of could monitoring services/SaaS cloud startups all competing with very similar technologies.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
Israel 85%; USA 15% — always looking to expand in the U.S. market as well.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
StageOne portfolio companies: Coralogix, Silverfort, Epsagon, Avanan, Neuroblade. Other companies: OwnBackup/RunAI/Verbit/Indegy — all based in Israel.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
Less relevant for Israel and more for the U.S., but yes we will probably see new founders from different geographies, which is a good thing, giving new opportunities to people that before may have not considered starting a company.

What are the opportunities startups may be able to tap into during these unprecedented times?
We do see that COVID-19 has less of an effect on the cybersecurity industry as many organizations are looking for new solutions, as the risk of cyberattacks increases due to remote working and refocusing a lot of their activity to the digital world.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
Our companies continue to adapt and make the necessary changes and plans for the near future. Most of the companies have continued the work-from-home policy.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Seeing our companies continue to grow and expand both in people and product. They all adapted to the situation for both the short term and long run. They have continued to raise funds and some companies have even developed additional products to assist with COVID-19-related issues.

Ayal Itzkoviz, managing partner, Pitango First

What trends are you most excited about investing in, generally?
Disruption in traditional markets yearning innovation, such as retail, insurtech, logistics, etc.

B2B2B: Companies no longer wish to build things they can buy. Buying key components of the product/software enables companies to focus on the innovation side. One example is Frontegg — the company provides a set of pre-built, essential SaaS product capabilities that can easily and seamlessly integrate within any new or existing SaaS application. This enables dev teams to focus on perfecting the truly differentiating and valuable features at the heart of their SaaS offering. Another viable example is Stripe and its offering in the payments market.

Cyber: 2020 taught us many lessons, one of them is that tech is just getting more exciting as digital transformation is enhanced, and the other is that the digital revolution presents cyber challenges that didn’t exist before. This results in continued opportunities for disruption in this domain.

What’s your latest, most exciting investment?
Frontegg — a startup that transforms the way SaaS is being built, so that developers don’t need to develop nondifferentiating code and features. Frontegg provides a state of the art SaaS-as-a-service platform, perfectly integrated within the company’s stack and allowing it to do what it’s best at: building their own product. Frontegg is the first pre-built suite of universal SaaS capabilities, enabling teams to focus on core features, shorten time-to-market and drive user adoption. Frontegg’s mission is to accelerate the delivery of enterprise-grade SaaS applications while providing the safest, most secure and optimal user experience.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
First: more open-source projects. They do exist, but usually operate under the radar and come out of stealth mode when they’re already mature and beyond the phase of seed and stage on which Pitango First is focused.

Quantum computing, in our view, has reached a point of no return. We’ll be happy to see entrepreneurs, scientists and business people in Israel jumping on the opportunity wagon already now, and build companies now, before the quantum market begins what will surely be an exponential growth.

Lastly are startups with a double bottom line, i.e., startups that while solving a pain point in the market they’re in and have a potential to become category leader, also address an impact category. Pitango is the first VC to integrate ESG practices into its mainstream activities. As part of this strategy, and as a first step, we are focusing on our vast portfolio of companies and work closely with them to embed

ESG into their core practices through a “migration” process.

Pitango aims to move the needle in the venture capital space through the “AND” philosophy: profit AND purpose, capital AND impact. Pitango is introducing a new paradigm of how venture capital does impact and integrates the “AND” philosophy by turning to a new opportunity set: the impact migrants. i.e., those startups that, although might not have been created under the SDG narrative, have the potential and a desire to embrace and track their impact. They will define their impact mission, integrate SDG targets within their business performance and track impact in alignment with financial targets, all without losing sight of their primary mission to deliver superior financial returns.

Furthermore, Pitango applies this AND philosophy beyond its existing portfolio and onto future deal flow review. We call it the “mainstreaming” of impact investing.

What are you looking for in your next investment, in general?
The Israeli market has evolved tremendously in recent years. While the IPO market used to be out of reach for Israeli-born companies, this is no longer the case. We are looking for the visionaries, the dent blowers, the unconventional types who are eager to solve the biggest of challenges and are aiming at building an IPO-able business rather than an M&A one.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
Pitango First is focused on Israeli/Israeli-related startups. From time to time we identify an investment opportunity in areas we have defined as strategic, in which the Israeli market isn’t mature enough and for which we believe we can add significant value and then invest in non-Israeli companies.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Israel is a super strong innovation hub. One of the major evolution trends of recent years is that the traditional glass ceiling that Israeli startups used to tackle has been shattered. Global players realize that now they can get the same upside like SV-based companies, in much more reasonable terms, and sometimes, less competition.
Somewhat counterintuitively, we see the investment climate in these times of COVID-19 being extremely vibrant and competitive. Strong teams are raising significant rounds at record high valuations, which add up to the current belief that COVID-19 didn’t slow, but accelerated the digital transformation.

What are the opportunities startups may be able to tap into during these unprecedented times?
For many seed early-stage startups that have secured funding, COVID-19 didn’t set setbacks in their plans, as they are further from the market from more mature companies. However, such companies, when backed by strong investors, while they may experience decrease in their revenues, are using this period to gain strength by acquiring companies within their ecosystem and position themselves better toward the out-of-pandemic curve that will eventually be here in a few short quarters.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
The pattern of investing for the long run during the pandemic. Looking far into the horizon, as veterans of previous crises we were able to share our experience and insights and help them better deal with the crisis. Also, this question can’t be answered without mentioning the COVID-19 vaccines, which set a magnificent example to the extent humanity can benefit when tech, medical companies and governments join hands and engage in a group effort.

Ittai Harel, managing partner, Pitango HealthTech

What trends are you most excited about investing in, generally?
The consumerization of healthcare.

What’s your latest, most exciting investment?
HomeThrive — a tech-enabled healthcare services company tackling the aging-in-home challenge and helping families help their loved ones age happily.

What are you looking for in your next investment, in general?
An all-star team building a category-defining or category-leading company with demonstrable clinical AND financial outcomes.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Narrow wearables that do not integrate into a clinical or life workflow.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
Pitango HealthTech is focused on Israeli/Israeli-related startups. From time to time we identify an investment opportunity in areas we have defined as strategic, in which the Israeli market isn’t mature enough and for which we believe we can add significant value, and then invest in non-Israeli companies.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Israel has many thriving healthcare sectors — from RPM and computer vision in digital health to cardiovascular in med devices to drug research in biotech and pharma. We are excited about our portfolio company Variantyx (a provider of whole genome sequencing and analytics unique platform solution) and Alike (a patient-facing platform to allow individuals to access and analyze their medical data and to connect to others similar to them). We are also excited to be part of this ecosystem and to lead thought leadership in it.

How should investors in other cities think about the overall investment climate and opportunities in your city?
The healthcare innovation ecosystem in Israel is thriving. There are incredible entrepreneurs and opportunities with global potential and reach that global investors should be aware of.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
To some extent we are witness more disbursement in Israel, but there is nonetheless a strong draw to co-locating in hubs and we expect to see Tel-Aviv and the central area in Israel to continue dominating in terms of attractiveness to strong teams.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19?

Hospitals have seen a drastic decline in elective procedures and an overall disruption to their operations and budgets. Startups that are able to introduce new technologies to make this shift efficient and painless stand to win from the current trend.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
For the healthcare industry, COVID-19 has brought challenges — but also opportunities. We believe overall that our companies (and the industry overall) stand to gain from the shift as stakeholders are quicker to adopt changes that before took much longer. We advise our — and all — portfolio companies to prepare for the days after COVID and think through what changes in their specific segment will be long-lasting and are “here to stay.”

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
When the first individual in the U.K. — a 90-year-old woman — received the vaccine. A turning point hopefully for the entire world.

No one knows what anything is worth

Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s broadly based on the daily column that appears on Extra Crunch, but free, and made for your weekend reading. Click here if you want it in your inbox every Saturday morning.

Ready? Let’s talk money, startups and spicy IPO rumors.


It was yet another week of startups that became unicorns going public, only to see their valuation soar. Already marked up by their IPO pricing, seeing so many unicorns achieve such rich public-market valuations made us wonder who was mispricing whom.

It’s a matter of taste, a semantic argument, a tempest in a teacup. What matters more is that precisely no one knows what anything is worth, and that’s making a lot of people rich and/or mad.

This is not a new theme. I’ve touched on it for years, but what matters for us today is that there appear to be three distinct valuation bands for companies, and the gaps between them do not appear ready to shrink. You could even argue that they have widened.

Band 1 is the private capital cohort. These are the folks who valued Affirm at $19.93 per share in its September 2020 round and Roblox at $4 billion in February of 2020. Now Affirm is worth $116.58 per share, and Roblox is worth $29.5 billion. Whoops?

Band 2 is the long-term public investing cohort. These are folks critical in the IPO pricing context. They are willing to pay more for startups than the private capital crew. Affirm was not worth under $20 per share to this group, instead it was worth $49 per share just a few months later. Whoops?

Band 3 is the retail cohort, the /r/WallStreetBets, meme-stock, fintech Twitter rabble that are both incredibly fun to watch and also the sort of person you wouldn’t loan $500 to while in Las Vegas. They are willing to pay nearly infinite money for certain stocks — like Tesla — and often far more than the more conservative public money. Demand from the retail squad can greatly amplify the value of a newly listed company by making the supply/demand curve utterly wonky. This is how you get Poshmark more than doubling a strong IPO valuation on its first day.

Most investors do well in today’s world. Though Band 1 likes to blame Band 2 for not being willing to pay Band 3 prices, it always sounds like the private capital folks are merely complaining about sharing some of the winnings with another party.

Regardless, who really knows what anything is worth? I was recently chatting with an early-stage founder who has a history of investing — narrowing it down to 17,823 people, I know — about the price of software companies both private and public and why they may or may not make sense. He said that old valuation models at banks presumed that software companies’ growth would go to zero over time, and that profits would be rare among SaaS concerns. Both concepts were wrong, so prices went up.

But I have yet to have anyone explain to me why companies that would have been valued at 10x next year’s revenues can now get, at median, 18.1x. I have a working theory of what’s going on, but none of it points to sanity, or pricing that is grokkable through a lens that isn’t hype.

 

Milestones and megarounds

On the milestone front, it was a huge week for leaving the private markets and joining the Big Kid Club. Namely for Affirm and Poshmark, which priced well and started to trade. And for Bumble, which filed to go public. They are targeting a good IPO window.

But there was lots more going on, including a milestone that caught my eye. M1 Finance, a fintech startup that brings together lots of pieces of the fintech playbook into a single service, reached $3 billion in assets under management (AUM) this week. The company had reached $2 billion in AUM last September, after reaching $1 billion in February of 2020.

Why do we care? The company previously told TechCrunch that it works to generate revenues worth around 1% of AUM. If that percentage has held past its October, 2020 Series C, the company just added around $10 million in ARR in under half a year. That’s a pace of revenue creation that made me sit up and take notice. (Shoutout to Josh for never shutting up about the Midwest.)

But I really bring up the M1 Finance milestone for a different reason. Namely that I am consistently surprised at how deep certain markets are. Neobanks that are still growing; the OKR software market’s surprising depth; the ability of M1 to accrete deposits in a market with so many incumbents and well-funded startups.

Perhaps this is why prices make no sense; if you can’t see the edge limits of TAM, can anything be overpriced?

Moving on, some quick notes on things from the week that mattered:

  • GitLab is now worth $6 billion and hit $150 million in annual recurring revenue last year. It grew 75%, we presume year-over-year in its most recent quarter.
  • Fintech upstart LendingPoint raised $125 million at an undisclosed valuation.
  • NYC-based Paige raised $100 million. It uses computers to help make diagnoses.

One more VC Visa-Plaid take

Aziz Gilani, a managing director at Mercury Fund and an advocate of Texas (observe his Twitter handle), wrote in late regarding our query for investor notes on the Visa-Plaid breakup. You can read the rest here.

But who are we to deprive you of useful notes. And Gilani is a nice person. So, here are his $0.02:

My big take-away on the Plaid/Visa deal falling apart is about how fast everything in 2021 is moving. Arguably the biggest advantage of SPACs over direct listings and IPOs is how fast those liquidity events can get done. In a world in which valuation[s] change week to week, the delays created by the DOJ can kill a deal — even if the DOJ would eventually lose in court.

I’m philosophically super negative about the government imposing their will, but I’m also personally excited about the current wave of insurgent startups not getting gobbled up by the FAANGs of the world. For the last several years too many startups fell victim to the “quick exit” mentality personified by Mint selling so fast to Intuit. With fast/cheap capital freely available, today’s crop of startups are going big.

Worth chewing on.

Odds/Ends

What a week. I have only a few things left for you, including some early-stage rounds that I could not get thanks to waves arms around generally but wanted to flag all the same.

  • Goldman Sachs chose Marqeta for Marcus. If you know what those words mean, they matter. If you don’t, congrats on having a life.
  • Nayya raised $11 million for what VentureBeat calls “an insurance benefits management platform,” including money from Felicis.
  • Minna raised €15.5 million for what Tech.eu called a “subscription management app.”
  • Muniq closed a  $8.2 million Series A to sell a shake-sort-of-thing that could help with blood sugar control.
  • And from TechCrunch two more highlights, this neat Crossbeam round and more money for Moss.

Hugs,

Alex

Human Capital: Labor issues at GitHub, Facebook’s new civil rights exec and a legal battle against Prop 22

This week kicked off with a report of a GitHub worker who was fired after cautioning his coworkers in the D.C. area to stay safe from Nazis during the assault on the U.S. Capitol. Meanwhile, Facebook created a new executive role pertaining to civil rights and California’s Proposition 22 faced its first legal challenge this year.

All that and more in this week’s edition of Human Capital.

Facebook hires VP of civil rights

Facebook hired Roy Austin to become its first-ever VP of Civil Rights and Deputy General Counsel to create a new civil rights organization within the company. Austin is set to start on January 19 and will be based in Washington, D.C.

Austin most recently served as a civil rights lawyer at Harris, Wiltshire & Grannis LLP. Prior to that, Austin co-authored a report on big data and civil rights and worked with President Barack Obama’s Task Force on 21st Century Policing.

Prop 22 faces lawsuit challenging its constitutionality

A group of rideshare drivers in California and the Service Employees International Union filed a lawsuit alleging Proposition 22 violates California’s constitution. The goal of the suit is to overturn Prop 22, which classifies gig workers as independent contractors in California.

The suit, filed in California’s Supreme Court, argues Prop 22 makes it harder for the state’s legislature to create and enforce a workers’ compensation system for gig workers. It also argues Prop 22 violates the rule that limits ballot measures to a single issue, as well as unconstitutionally defines what would count as an amendment to the measure. As it stands today, Prop 22 requires a seven-eighths legislative supermajority in order to amend the measure.

Best tech companies to work for, according to Glassdoor

Glassdoor released its annual ranking of the best companies to work for in 2021. We broke out the top 10 tech companies from the list of large businesses (1,000+ employees) as well as from the small to medium-sized business list.

Despite recent allegations of wrongful firings and demands of better workplace conditions, Google ranked number three on the list of best tech companies, while Facebook ranked fifth. 

Netflix releases first diversity report

This was not the first time Netflix had shared this type of data, but the company had not put a bow on it until now.

Worldwide, women make up 47.1% of Netflix’s workforce. Since 2017, representation of white and Asian employees has been on a slow decline, while representation of Hispanic or Latinx, Black, mixed race and folks from native populations has been on the rise. In the U.S., Netflix is 8.1% Hispanic or Latinx, 8% Black and 5.1% of its employees are mixed race, while 1.3% of employees are either Native American, Native Alaskan, Native Hawaiian, Pacific Islander and/or from the Middle East or North Africa.

Github faces backlash after firing of Jewish employee who made comment about Nazis

On the day a violent mob of Trump supporters stormed the U.S. Capitol, a worried GitHub employee warned his coworkers in the D.C. area to be safe. In an interview with TechCrunch, the now-former employee said he was genuinely concerned about his coworkers in the area, in addition to his Jewish family members. 

TechCrunch agreed to keep the identity of the terminated employee confidential due to fears for his and his family’s safety.

After making a comment in Slack saying, “stay safe homies, Nazis are about,” a fellow employee took offense, saying that type of rhetoric wasn’t good for work, the former employee told me. Two days later, he was fired, with a human relations representative citing a “pattern of behavior that is not conducive to company policy” as the rationale for his termination, he told me.

Now, the terminated employee says he is currently seeking counsel to ensure his family is protected, as well as figure out if he can receive damages or some other form of reconciliation. The fired employee said GitHub has reached out to him for help in the internal investigation, but is waiting to engage with the company until he has legal representation in place.

You can read the full story here.

Dropbox lays off 315 people

Dropbox laid off 11% of its global workforce, which comes to 315 people affected. In an email to employees, CEO Drew Houston said the company simply doesn’t need as much in-office support due to the shift to remote work, “so we’re scaling back that investment and redeploying those resources to drive our ambitious product roadmap.

In the note, Houston said the changes will make Dropbox more efficient and nimble this year.

Apple launches racial justice and equity programs

Apple unveiled a few key projects as part of its $100 million commitment to racial equity and justice. 

The first is a $25 million investment in the Propel Center, an innovation and learning hub for HBCUS. As part of the investment into the Propel Center, Apple employees will help to develop the curriculum and offer mentorship to students. 

In Detroit, Apple will launch a developer academy for young Black entrepreneurs in collaboration with Michigan State University. In all, Apple hopes to reach 1,000 students per year in Detroit.

Additionally, Apple invested $10 million in VC firm Harlem Capital, $25 million in Siebert Williams Shank’s Clear Vision Impact Fund and donated an undisclosed amount to the King Center.

Amazon warehouse workers scheduled to vote on union starting next month

The National Labor Relations Board has scheduled a mail-in voting process for Amazon warehouse workers in Bessemer, Alabama to begin on February 8 and end March 29. Workers at the facility will decide whether to join the Retail, Wholesale and Department Store Union. The bargaining unit includes about 6,000 workers, including hourly full-time and regular part-time fulfillment workers, as well as the hundreds of Amazon’s seasonal workers among others.

Stay gold, ‘Plaid for X’ startups

A failed acquisition usually triggers the same series of questions: What does this mean for early-stage startups in the sector? Will a chilling effect occur and hurt valuations? Will VCs stop funding this category? How will the exit environment look going forward?

This week gave that narrative a bullish twist. Visa and Plaid announced that they have reached a mutual agreement to no longer pursue a merger. The $5.3 billion deal had been under antitrust scrutiny from the DOJ, and eventually ended amid these regulatory challenges.

Fintech VCs and startups alike reacted to the fallen deal with aggressive optimism about Plaid’s future as an independently-owned fintech startup.

The most common arguments?

  • Plaid’s price in this current moment is far beyond $5.3 billion, so now that it is a free bird it will pursue a much larger exit
  • Plaid will go public through SPAC because it is in charge of its own destiny.
  • And my favorite: One day, Plaid will buy Visa.

In an interview with TechCrunch, Plaid CEO Zach Perret wouldn’t give too many details on the future (and whether a SPAC is involved), but he did say he has new ‘clarity’ going forward.

The fact that fintech is bullish on the future of fintech isn’t quite surprising. I will say that while one deal can never make or break a sector, a flopped merger certainly can surface the current temperature in the market. Startups Weekly readers will remember last week’s edition about how P&G’s decision not to acquire Billie could hurt DTC exit opportunities. Fintech seems unbothered and, in fact, celebratory. The only counterargument I got, via Twitter DM, is that it could set a bad precedent on big fintech mergers.

“Or maybe…corporations learn from this and look to make riskier acquisitions earlier in a company’s lifecycle because they know that if they let the company get too big they’ll lose the chance,” Rami Essaid, founder of Finmark, told me.

Only in 2021 could a $5.3 billion break-up and a DOJ investigation be considered a blessing. Rock on, ‘Plaid for X’ startups.

Before we go on, make sure to follow me on Twitter for my bad jokes and early-stage startup coverage. You can also always reach me at natasha.m@techcrunch.com.

Columbus is the new Miami which is new the San Francisco

I hope that sub-hed gave you a headache, because that’s exactly what debates about where the best place to start a company do to me. The rise of Work From Anywhere has emboldened VCs to leave San Francisco for markets such as Miami or Austin in search of the next unsung hero of their portfolios.

For investors, though, the financial benefit of moving to an emerging market might not be apparent within months, but instead years. Venture is a long game (at least most of the time).

Here’s what to know, per Silicon Valley editor Connie Loizos: Drive Capital, a venture capital firm based in Columbus, Ohio, and started by two ex-Sequoia investors now has over $1.2 billion in assets. But before it had breakout companies like Root and Olive AI, Drive had to play the unusual role of investing in a region without key investing infrastructure.

Etc: Founding partner Chris Olsen explained how they set up their roots:

“We’ve had to spend a lot of time going into the universities and putting new seed managers in business and helping them fundraise and sort of building all of this infrastructure from scratch so that the next entrepreneur is out here [versus moves away], and it works. In our first year, we had inbound interest from 1,800 [startups], then it went to about 3,000 and now it’s up to about 7,000, which is more than I’ve heard any other venture firms say that they see in California. And I don’t think it’s because we’re great. I think that’s more [a reflection of the] scale of the opportunity that’s here now. One of the things that we would love to see more of is more venture capitalists coming here, because there’s certainly more opportunity than we can invest in.”

Ideal paper world powered with alternative wind and solar energy. environmental concept.

Image Credits: Paula Dani/ABlse (opens in a new window) / Getty Images

The CFO Tech Stack

If you want to start a company, go to a startup and look where employees are still using an Excel sheet. The best products are the ones fueled by frustrations, right?

Here’s what to know per managing editor Danny Crichton: For a trio of Palantir alums, 15 collective years at the now-public government tech company showed a huge gap in technology for CFOs. So, they started Mosaic, a techstack to help financial officers better communicate and perform their jobs.

Etc: Co-founder Bijan Moallemi describes the mistake other platforms are making:

“Everyone wants to be strategic, but it’s so tough to do because 80% of your time is pulling data from these disparate systems, cleaning it, mapping it, updating your Excel files, and maybe 20% of [your time] is actually taking a step back and understanding what the data is telling you.”

GettyImages 946391800

Image via Getty Images / alashi

The future of consumer hardware startups beyond Peloton

Are wearables still exciting? Is consumer hardware ever going to get easier to pull off? What was the strategy that made Peloton so successful?

These questions and more are answered in the latest consumer hardware-focused Extra Crunch Survey, which brings together VCs from SOSV, Lux Capital, Shasta Ventures, and more.

Here’s what to know: Everyone is studying the Peloton success recipe. But the big question for consumer hardware startups is if the at-home fitness market’s boom is translating to other use cases.

Etc: Cyril Ebersweiler of SOSV noted that supply chain distribution disruption during COVID-19 has been difficult for category startups, but the need for innovative solutions has never been more clear.

“Everybody is waiting for new and mind-blowing experiences, and I guess we’ve all experienced the shortcomings or the magic of some IoT products over the shelter-in-place [orders]. Spatial and ambient technologies that work well will be in demand (audio or visual), while “holographic Skype” will invade households thanks to Looking Glass.”

Also: In another investor survey, five VCs weighed in on the future of cannabis in 2021.

3D render, visualization of a man holding virtual reality glasses, electronic device, head surrounded by virtual data with neon green grid. Player one ready for the VR game. Virtual experience.

Pop goes the public market

We had yet another noisy week of privately-held startups going public to a Very Warm Wall Street reception. The most opulent story of the week was definitely Affirm’s debut, which doubled its already-increased price when it started to officially trade.

Here’s what to know, per our resident IPO reporter Alex Wilhelm, who writes The Exchange:

Etc:

GettyImages 1155292858

NEW YORK, NEW YORK – JUNE 11: PayPal Co-Founder & Affirm CEO Max Levchin visits “Countdown To The Closing Bell” at Fox Business Network Studios on June 11, 2019 in New York City. (Photo by John Lamparski/Getty Images)

Around TechCrunch

Extra Crunch Live is returning in a big way in 2021. We’ll be interviewing VC/founder duos about how their Series A deals went down, and Extra Crunch members will have the chance to get live feedback on their pitch deck. You can check out our plans for ECL in 2021 right here, or hit up this form to submit your pitch deck. Episodes air every Wednesday at 3pm ET/12pm PT starting in February.

And if you’re feeling extra generous, take this survey to help shape the future of TechCrunch

Across the week

Seen on TechCrunch

Glassdoor: Best tech companies to work for in 2021

Signal’s Brian Acton talks about exploding growth, monetization and WhatsApp data-sharing outrage

Two-year-old NUVIA sells to Qualcomm for $1.4 billion

Loop launches out of stealth to make auto insurance more equitable

Nuclear fusion tech developer General Fusion now has Shopify and Amazon founders backing it

Seen on Extra Crunch

Lessons from Top Hat’s acquisition spree

12 ‘flexible VCs’ who operate where equity meets revenue share

Dear Sophie: What’s the new minimum salary required for H-1B visa applicants?

Equity (and a bonus Equity)

The news keeps coming so we keep recording. This week, the trio chatted about the Plaid-Visa deal, but also about the Palantir mafia‘s next big bet. In early-stage news, I covered a fintech accelerator that pivoted into an edtech accelerator and a new startup coming out of Austin that makes car insurance more equitable. We also debated SPACs for a bit, and Danny was…optimistic?

Listen to our episode, follow the pod on Twitter, and if you so please, tune into our bonus Equity episode that just came out today. It’s an episode dedicated entirely to the barrage of payments and e-commerce funding that came out this week.

Until next week,

Natasha 

Startups look beyond lidar for autonomous vehicle perception

Last CES was a time of reckoning for lidar companies, many of which were cratering due to a lack of demand from a (still) nonexistent autonomous vehicle industry. The few that excelled did so by specializing, and this year the trend has pushed beyond lidar, with new sensing and imaging methods pushing to both compete with and complement the laser-based tech.

Lidar pushed ahead of traditional cameras because it could do things they couldn’t — and now some companies are pushing to do the same with tech that’s a little less exotic.

A good example of addressing the problem or perception by different means is Eye Net’s vehicle-to-x tracking platform. This is one of those techs that’s been talked about in the context of 5G (admittedly still somewhat exotic), which for all the hype really does enable short-distance, low-latency applications that could be life-savers.

Eye Net provides collision warnings between vehicles equipped with its tech, whether they have cameras or other sensing tech equipped or not. The example they provide is a car driving through a parking lot, unaware that a person on one of those horribly unsafe electric scooters is moving perpendicular to it ahead, about to zoom into its path but totally obscured by parked cars. Eye Net’s sensors detect the position of the devices on both vehicles and send warnings in time for either or both to brake.

CG illustration of a bicyclist and car being warned of an imminent collision.

Image Credits: Eye Net

They’re not the only ones attempting something like this, but they hope that by providing a sort of white-label solution, a good size network can be built relatively easily, instead of having none, and then all VWs equipped, and then some Fords and some e-bikes, and so on.

But vision is still going to be a major part of how vehicles navigate, and advances are being made on multiple fronts.

Brightway Vision, for instance, addresses the issue of normal RGB cameras having limited visibility in many real-world conditions by going multispectral. In addition to ordinary visible-light imagery, the company’s camera is mated to a near-infrared beamer that scans the road ahead at set distance intervals many times a second.

CG illustration of a camera using infrared to see further ahead at night.

Image Credits: Brightway Vision

The idea is that if the main camera can’t see 100 feet out because of fog, the NIR imagery will still catch any obstacles or road features when it scans that “slice” in its regular sweep of the incoming area. It combines the benefits of traditional cameras with those of IR ones, but manages to avoid the shortcomings of both. The pitch is that there’s no reason to use a normal camera when you can use one of these, which does the same job better and may even allow another sensor to be cut out.

Foresight Automotive also uses multispectral imagery in its cameras (chances are hardly any vehicle camera will be limited to visible spectrum in a few years), dipping into thermal via a partnership with FLIR, but what it’s really selling is something else.

To provide 360-degree (or close) coverage, generally multiple cameras are required. But where those cameras go differs on a compact sedan versus an SUV from the same manufacturer — let alone on an autonomous freight vehicle. Because those cameras have to work together, they need to be perfectly calibrated, aware of the exact position of the others, so they know, for example, that they’re both looking at the same tree or bicyclist and not two identical ones.

Image showing Foresight cameras being attached magnetically to a car's body.

Image Credits: Foresight Automotive

Foresight’s advance is to simplify the calibration stage, so a manufacturer or designer or test platform doesn’t need to be laboriously retested and certified every time the cameras need to be moved half an inch in one direction or the other. The Foresight demo shows them sticking the cameras on the roof of the car seconds before driving it.

It has parallels to another startup called Nodar that also relies on stereoscopic cameras, but takes a different approach. The technique of deriving depth from binocular triangulation, as the company points out, goes back decades, or millions of years if you count our own vision system, which works in a similar ways. The limitation that has held this approach back isn’t that optical cameras fundamentally can’t provide the depth information needed by an autonomous vehicle, but that they can’t be trusted to remain calibrated.

Nodar shows that its paired stereo cameras don’t even need to be mounted to the main mass of the car, which would reduce jitter and fractional mismatches between the cameras’ views. Attached to the rearview mirrors, their “Hammerhead” camera setup has a wide stance (like the shark’s), which provides improved accuracy because of the larger disparity between the cameras. Since distance is determined by the differences between the two images, there’s no need for object recognition or complex machine learning to say “this is a shape, probably a car, probably about this big, which means it’s probably about this far away” as you might with a single camera solution.

Image Credits: Nodar

The industry has already shown that camera arrays do well in harsh weather conditions, just as human eyes do,” said Nodar COO and co-founder Brad Rosen. “For example, engineers at Daimler have published results showing that current stereoscopic approaches provide significantly more stable depth estimates than monocular methods and lidar completion in adverse weather. The beauty of our approach is that the hardware we use is available today, in automotive-grade, and with many choices for manufacturers and distributors.”

Indeed, a major strike against lidar has been the cost of the unit — even “inexpensive” ones tend to be orders of magnitude more expensive than ordinary cameras, something that adds up very quickly. But team lidar hasn’t been standing still either.

Sense Photonics came onto the scene with a new approach that seemed to combine the best of both worlds: A relatively cheap and simple flash lidar (as opposed to spinning or scanning, which tend to add complexity) mated to a traditional camera so that the two see versions of the same image, allowing them to work together in identifying objects and establishing distances.

Since its debut in 2019 Sense has refined its tech for production and beyond. The latest advance is custom hardware that has enabled it to image objects out to 200 meters — generally considered on the far end both for lidar and traditional cameras.

“In the past, we have sourced an off-the-shelf detector to pair with our laser source (Sense Illuminator). However, our two years of in-house detector development has now completed and is a huge success, which allows us to build short-range and long-range automotive products,” said CEO Shauna McIntyre.

“Sense has created ‘building blocks’ for a camera-like lidar design that can be paired with different sets of optics to achieve different FOV, range, resolution, etc.,” she continued. “And we’ve done so in a very simple design that can actually be manufactured in large volumes. You can think of our architecture like a DSLR camera where you have the ‘base camera’ and can pair it with a macro lens, zoom lens, fisheye lens, etc. to achieve different functions.”

One thing all the companies seemed to agree on is that no single sensing modality will dominate the industry from top to bottom. Leaving aside that the needs of a fully autonomous (i.e., level 4-5) vehicle has very different needs from a driver-assist system, the field moves too quickly for any one approach to remain on top for long.

“AV companies cannot succeed if the public is not convinced that their platform is safe and the safety margins only increase with redundant sensor modalities operating at different wavelengths,” said McIntyre.

Whether that means visible light, near-infrared, thermal imaging, radar, lidar, or as we’ve seen here, some combination of two or three of these, it’s clear the market will continue to favor differentiation — though as with the boom-bust cycle seen in the lidar industry a few years back, it’s also a warning that consolidation won’t be far behind.

This Week in Apps: Parler deplatformed, alt apps rise, looking back at 2020 trends

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.

The app industry is as hot as ever, with a record 218 billion downloads and $143 billion in global consumer spend in 2020.

Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.

Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.

Top Stories

The right-wing gets deplatformed

Last weekend, Google and Apple removed Parler from their respective app stores, the latter after first giving the app 24 hours to come up with a new moderation strategy to address the threats of violence and illegal activity taking place on the app in the wake of the Capitol riot. When Parler failed to take adequate measures, the app was pulled down.

What happened afterwards was unprecedented. All of Parler’s technology backend services providers pulled support for Parler, too, including Amazon AWS (which has led to a lawsuit), Stripe and even Okta, which Parler was only using as a free trial. Other vendors also refused to do business with the app, potentially ending its ability to operate for good.

But although Parler is down, its data lives on. Several efforts have been made to archive Parler data for posterity — and for tipping off the FBI. Gizmodo made a map using the GPS data of 70,000 Parler posts. Another effort, Y’all Qaeda, is also using location data to map videos from Parler to locations around the Capitol building.

These visualizations are possible because the data itself was quickly archived by internet archivist @donk_enby before Parler was taken down, and because Parler stored rich metadata with each user’s post. That means each user’s precise location was recorded when they uploaded their photos and videos to the app.

It’s a gold mine for investigators and a further indication of the privilege these rioters believed they had to avoid prosecution or the extent to which they were willing to throw their life away for their cause — the false reality painted for them by Trump, his allies and other outlets that repeated the “big lie” until they truly believed only a revolution could save our democracy.

The move to kick Parler offline followed the broader deplatforming of Trump, who’s accused of inciting the violence, in part by his refusal to concede and his continued lies about a “rigged election.” As a result, Trump has been deplatformed across social platforms like Twitter, Facebook, Instagram, TikTok, Twitch, YouTube, Reddit, Discord and Snapchat, while e-commerce platform Shopify kicked out Trump merch shops and PayPal refused to process transactions for some groups of Trump supporters.

Alternative social apps post gains following Capitol riot

Parler was the most high-profile app used by the Capitol rioters, but others found themselves compromised by the same crowd. Walkie-talkie app Zello, for instance, was used by some insurrectionists during the January 6 riot to communicate. Telegram, meanwhile, recently had to block dozens of hardcore hate channels that were threatening violence, including those led by Nazis (which were reported for years with no action by the company, some claim).

Now, many in the radical right are moving to new platforms outside of the mainstream. Immediately following the Capitol riot, MeWe, CloutHub and other privacy-focused rivals to big tech began topping the app stores, alongside the privacy-focused messengers Signal and Telegram. YouTube alternative Rumble also gained ground due to recent events. Right-wingers even mistakenly downloaded the wrong “Parlor” app and a local newspaper app they thought was the uncensored social network Gab. (They’re not always the brightest bulbs.)

This could soon prove to be another difficult situation for the platforms to address, as we already came across highly concerning posts distributed on MeWe, which had used extreme hate speech or threatened violence. MeWe claims it moderates its content, but its recent growth to now 15 million users may be making that difficult — especially since it’s inheriting the former Parler users, including the radical far-right. The company has not been able to properly moderate the content, which may make it the next to be gone.

2020 annual review

App Annie this week released its annual review of the mobile app industry finding (as noted above) that mobile app downloads grew by 7% year-over-year to a record 218 billion in 2020. Consumer spending also grew by 20% to also hit a new milestone of $143 billion, led by markets that included China, the United States, Japan, South Korea and the United Kingdom. Consumers spent 3.5 trillion minutes on Android devices in 2020. Meanwhile, U.S. users now spend more time in apps (four hours) than watching live TV (3.7 hours).

The full report examines other key trends across social, gaming, finance, e-commerce, video and streaming, mobile food ordering, business apps, edtech and much more. We pulled out some highlights here, such as TikTok’s chart-topping year by downloads, the rise in livestreamed and social shopping, consumers spending 40% more time streaming on mobile YoY and other key trends.

Sensor Tower also released its own annual report, which specifically explored the impact of COVID-19; the growth in business apps, led by Zoom; mobile gaming; and the slow recovery of travel apps, among other things.

Samsung reveals its new flagships

Image Credits: Samsung

Though not “apps” news per se, it’s worth making note of what’s next in the Android ecosystem of high-end devices. This week was Samsung’s Unpacked press event, where the company revealed its latest flagship devices and other products. The big news was Samsung’s three new phones and their now lower prices: the glass-backed Galaxy S21 ($799) and S21 Plus ($999), and the S21 Ultra ($1,199), which is S Pen compatible.

The now more streamlined camera systems are the key feature of the new phones, and include:

  • S21 and S21 Plus: A 12-megapixel ultrawide, 12-megapixel wide and 64-megapixel telephoto with 30x space zoom.
  • S21 Ultra: A 12-megapixel ultra-wide, 108-megapixel wide and, for the first time, a dual-telephoto lens system with 3x and 10x optical zoom. The Ultra also improves low-light shooting with its Bright Night sensor.

The devices support UWB and there’s a wild AI-powered photo feature that lets you tap to remove people from the background of your photos. (How well it works is TBD). Other software imaging updates allow you to pull stills from 8K shooting, better image stabilization and a new “Vlogger view” for shooting from front and back cameras as the same time.

Also launched were Samsung’s AirPods rival, the Galaxy Buds Pro, and its Tile rival, the Galaxy SmartTag.

 

Weekly News

Platforms: Apple

  • Apple releases second iOS 14.2 developer beta. The update brings improvements to the HomePod mini handoff experience and an update to the Find My app to ready it for supporting third-party accessories.
  • Apple will soon allow third-parties to join the Find My app ahead of its AirTags launch. Tile had argued before regulators last year that Apple was giving itself first-party advantage with AirTags in Find My. Apple subsequently launched the Find My Accessory Program to begin certifying third-party products. AirTags’ existence was also leaked again this week.
  • Apple is working to bring its Music and Podcasts apps to the Microsoft Store.
  • Apple may be working on a podcast subscription service, per The Information.

Platforms: Google

  • Google appears to be working on an app hibernation feature for Android 12. The feature would hibernate unused apps to free up space.
  • Google pulls several personal loan apps from the Play Store in India. The company said several of the apps had been targeting vulnerable borrowers, then abusing them and using other extreme tactics when they couldn’t pay. Critics say Google took too long to respond to the outcry, which has already prompted suicides. Police have also frozen bank accounts holding $58 million for alleged scams conducted through 30 apps, none of which had approval from India’s central bank.

Gaming

Image Credits: Sensor Tower

  • 48,000 mobile games were purged from the China App Store in December 2020, reports Sensor Tower. The games removed in 2020 for not having acquired the proper Chinese gaming license, had generated nearly $3 billion in lifetime revenue.
  • The top grossing mobile game in December 2020 was Honor of Kings with $258 million in player spending, up 58% year-over-year, according to Sensor Tower. PUBG Mobile was No. 2. followed by Genshin Impact.
  • Among Us was the most downloaded mobile game in December 2020, per Apptopia. with an estimated 48 million new downloads in the month, most through Google Play.
  • Epic Games demands Fortnite to be reinstated on the App Store, in a U.K. legal filing. The game maker is engaged in multiple lawsuits over the “Apple tax.”

Security

  • Amazon’s Ring app exposed users’ home addresses. Amazon says there’s no evidence the security flaw had been exploited by anyone.
  • New research details how law enforcements gets into iOS and Android smartphones and cloud backups of their data.

Privacy

  • Signal’s Brian Acton says recent outrage over WhatsApp’s terms are driving installs of the private messaging app. Third-party data indicates Signal has around 20 million MAUs as of December 2020. The app also saw a surge due to the U.S. Capitol riots, with 7.5 million downloads from January 6-10.
  • Telegram user base in India was up 110% in 2020. The app now has 115 million MAUs in India, which could allow it to better compete with WhatsApp.
  • Privacy concerns are also driving sign-ups for encrypted email providers, ProtonMail and Tutanota. The former reports a 3x rise in recent weeks, while the latter said usage has doubled size WhatsApp released its new T&Cs.
  • FTC settled with period-tracking app Flo for sharing user health data with third-party analytics and marketing services, when it had promised to keep data private. The app must now obtain user consent and will be subject to an independent review of its practices.
  • FTC settled with Ever, the maker of a photo storage app that had pivoted to selling facial recognition services. The company used the photos it collected to train facial recognition algorithms. It’s been order to delete that data and all face embeddings derived from photos without user consent.
  • Muslim prayer app Salaat First (Prayer Times) was found to be recording and selling user location info to a data broker. The firm collecting the data had been linked to a supply chain that involved a U.S. government contractor who worked with ICE, Customs and Border Protection, and the FBI.
  • TikTok changed the privacy settings and defaults for users under 18. Children 13-15 will have private accounts by default. Other restrictions apply on features like commenting, Dueting, Stitching and more for all under 18. TikTok also partnered with Common Sense Networks to help it curate age-appropriate content for users under 13.

Government & Policy

  • Italy’s data protection agency, the GPDP, said it contacted the European Data Protection Board (EDPB) to raise concerns over WhatsApp’s requirement for users to accept its updated T&Cs to continue to use the service. The law requires that users are informed of each specific use of their data and given a choice as to whether their data is processed. The new in-app notification doesn’t make the changes clear nor allow that option.
  • Turkey starts an antitrust investigation into Facebook and WhatsApp. The investigation was prompted by WhatsApp’s new Terms of Service, effective February 8, which allows data sharing with Facebook.
  • WhatsApp then delayed its T&C changes, as a result.

Health & Fitness

  • Google this week fixed an issue with its Android Exposure Notification System that’s used by COVID-19 tracking apps. The impacted apps took longer to load and carry out their exposure checks.

Edtech

  • Amazon makes an education push in India with JEE preparation app. The company launched Amazon Academy, a service that will help students in India prepare for the Joint Entrance Examinations (JEE), a government-backed entrance assessment for admission into various engineering colleges.

Funding and M&A (and IPOs)

  • PayPal acquired the 30% stake it didn’t already own in China’s GoPay, making it the first foreign firm in China with full ownership of its payments business.
  • Therapy app Talkspace will go public through a $1.4 billion merger with SPAC Hudson Executive Investment Corp.
  • Snap acquired location data startup StreetCred. The team will join the company and work on maps and location-related products for Snapchat.
  • BlaBla raised $1.5 million for its language-learning app that teaches English using TikTok-like videos. The startup, a participant in Y Combinator’s 2020 summer batch, had previously applied to YC seven times. Other investors include Amino Capital, Starling Ventures and Wayra X.
  • Poshmark, the online and mobile app for reselling clothing, IPO’d and closed up more than 140% on day one.
  • Dating app Bumble also filed to go public. The company claims 42 million MAUs, with 2.4 million paying users through the first nine months of 2020. It lost $117 million on $417 million in revenue during that time.
  • Blog platform Medium acquired Paris-based Glose, a mobile app that lets you buy and read books on mobile devices.
  • Indonesian investment app Ajaib raised $25 million Series A led by Horizons Venture and Alpha JWC. Inspired by Robinhood, the app offers low-fee stock trading and access to mutual funds.
  • Mailchimp acquired Chatitive, a B2B messaging startup that helps businesses reach customers over text messages.
  • Chinese fitness app Keep raised $360 million Series F led by SoftBank Vision Fund. The six-year-old startup that allows fitness influencers to host live classes over video is now valued at $2 billion.
  • Google finalized Fitbit acquisition. Google confirmed it will allow Fitbit users to continue to connect with third-party services and said the health data will be kept separate and not used for ads.
  • On-demand U.K. supermarket Weezy raised $20 million Series A for its Postmates-like app that delivers groceries in as fast as 15 minutes, on average.

Downloads

Bandsintown

COVID has cancelled concerts, which required Bandsintown to pivot from helping people find shows to attend to a new subscription service for live music. The company this week launched Bandsintown Plus, a $9.99 per month pass that gives users access to more than 25 concerts per month. The shows offered are exclusive to the platform, and not available on other sites like YouTube, Twitch, Apple Music or Spotify.

Piñata Farms

Image Credits: Piñata Farms

This new social video app lets you put anyone or anything into an existing video to make humorous video memes. The computer vision-powered app lets you do things like crop out a head from a photo, for example, or use thousands of in-app items to add to your existing video. The resulting creations can be shared in the app, privately through messaging or out to other social platforms. Available on iOS only.

Capture App

Image Credits: Numbers Protocol

This new blockchain camera app, reviewed here on TechCrunch, uses tech commercialized by the Taiwan-based startup, Numbers Protocol. The app secures the metadata associated with photos you take on the blockchain, also allowing users to adjust privacy settings if they don’t want to share a precise location. Any subsequent changes to the photo are then traced and recorded. Use cases for the technology include journalism (plus combating fake news), as well as a way for photographers to assure their photos are attributed correctly. The app is available on the App Store and Google Play.

Marsbot for AirPods

Image Credits: Foursquare Labs, Inc.

A new experiment from Foursquare Labs, Marsbot, offers an audio guide to your city. As you walk or bike around, the app gives you running commentary about the places around you using data from Foursquare, other content providers and snippets from other app users. The app is also optimized for AirPods, making it iOS-only.

Loupe

Image Credits: Loupe

Loupe is a new app that modernizes sports card collecting. The app allows users to participate in daily box breaks, host their own livestreams with chats, collect alongside fellow collectors and purchase new sports card singles, packs and boxes when they hit the market, among other things. The app is available on iOS.

 

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