Due to bad travel logistics (thanks SFO), I wasn’t able to get the mid-week edition of the Extra Crunch roundup newsletter out. Sorry about that. Instead, here is everything we published this week on Extra Crunch in one fell swoop — and my, we covered a lot of ground. Hope you enjoy some great weekend reading.
Much like the equinoxes that synchronize Earth’s calendar, Y Combinator’s biannual demo days are a key fixture of the Silicon Valley calendar. This year was no different, with 166 companies presenting from the summer batch (and occasionally from previous batches if they chose to delay their presentation).
We had a full squad on site not only covering the 84 companies from day one and 82 companies from day two, but our team also put their collective heads together to identify the top companies from each set exclusively for Extra Crunch members.
Read our favorite 11 startups from day one, which included:
PopSQL provides collaborative SQL query editing. You can store SQL queries you run regularly, grouping them into folders that can be kept private or shared amongst your team. Version history tracks changes so it can be reverted if/when something breaks. It currently has more than 100 paying companies, and is making $13K per month. It plans to build a marketplace for apps that run on top of your company’s database.
Why it’s one of our favorites: SQL database queries can be a nightmare, especially if they’re not something you’re used to dealing with every day. PopSQL lets you hammer on queries collaboratively until they’re working exactly as you want — then you can save them for future use and share them amongst your team members. And when you’ve spent the last 45 minutes trying to figure out why your query isn’t working only for a team mate to fix it in thirty seconds, you can use version control to see exactly what they changed. PopSQL says its product has already found customers in companies like Instacart, Redfin, and DoorDash.
Read our favorite 12 startups from day two, which included:
Business Score is helping companies automate background checks on other businesses. The startup is looking to stamp out tired manual processes that largely mean picking up the phone and scouring documents. The single API taps data sources across the web to build out real-time profiles that can help customers scan businesses in an effort to prevent fraud, qualify leads and onboard new clients.
Why it’s one of our favorites: Though it’s yet another startup in the batch catering to other startups, we thought Business Score stood out. The company integrates with thousands of data providers to help companies verify other startups and enterprises they are considering doing business with, using a system they’ve dubbed “the business passport.” There’s an opportunity here to create a tool essential to company-building across industry.
Finally, amidst all the zany craziness of watching 166 companies present over two days (there should be a YC company for unmelting your brain), our venture capital reporter Kate Clark stepped back to assess what all the various companies in the batch indicated about the accelerator’s strategy these days.
YC knows its sweet spot: enterprise SaaS. One might go as far as to say it’s transitioning into a full-on SaaS incubator. Why? Because one of the greatest advantages of going through YC is the network of alumni companies you can tap into. Many successful B2B companies have emerged from the program, raised boat loads of venture capital funding and rocketed to the moon (hello Stripe, Brex, Gusto and Atrium). With that in mind, YC is doubling down on its resources for startups that sell products to other startups, which brings us to our first piece of news.
YC chief executive officer Michael Seibel and president Geoff Ralston announced this week that the accelerator has implemented something called CTO and HR demo days. In short, CTO and HR demo days are an opportunity for B2B startups to pitch their products to YC alum companies’ CTO and/or head of HR. Seibel and Ralston said 60 CTOs attended the event, as well as 30 HR heads. In total, 42 startups presented and we’re guessing a bunch of those companies booked a few customers.
I did a bit of a double take when I first saw this announcement. IDrive, an online cloud storage and backup service, is launching a face recognition API today that goes up against the likes of AWS Rekognition and others. That seems like a bit of an odd move for a backup company, but it turns out that IDrive has actually been in the face recognition game for a while. Last year, the company launched IDrive People to help its users find faces in photos they’ve backed up on its service. With its API, IDrive is targeting a very different market, though, and entering into the API business for the first time.
IDrive Face, as the service is called, includes the standard tools for detecting and analyzing multiple faces within a still image that are at the core of every face detection API. For this, the API provides the usual bounding boxes and metadata for all faces. There are also a face comparison and verification features to identify people by their face, and a gender, age and emotion detection option. All requests to the API are encrypted and using the API looks to be pretty straightforward.
IDrive promises that its tool’s accuracy and performance is comparable to AWS Rekognition, but at a lower price. The company offers a developer plan for $49.50/month plus $0.0001 per transaction, at up to 75 transactions per minute, with unlimited storage included. There’s also a business plan for $124.50/month, $0.0001 per transaction and up to 500 transactions per minute, as well as custom enterprise plans and free trials for those who want to give the service a try.
AWS’ pricing is, as usual, a bit more complicated and while there’s no monthly cost, most serious users will end up paying more for Rekognition than IDrive Face, though Rekognition offers a number of features like text, object, scene and celebrity recognition that aren’t available in the competing product, which only focuses on faces.
The day of reckoning for the ‘flexible office space as a startup’ is coming, and it’s coming up fast. WeWork’s IPO filing has fired the starting gun on the race to become the game-changer both in the future of property and real estate but also the future of how we live and work. As Churchill once said, ‘we shape our buildings and afterwards our buildings shape us’.
Until recently WeWork was the ruler by which other flexible space startups were measured, but questions are now being asked if it deserves its valuation. The profitable IWG plc, formerly Regus, has been a business providing serviced offices, virtual offices, meeting rooms, and the rest, for years and yet WeWork is valued by ten times more.
That’s not to mention how it exposes landlords to $40 billion in rent commitments, something which a few of them are starting to feel rather nervous about.
Some analysts even say WeWork’s IPO is a ‘masterpiece of obfuscation’
The UK’s health data watchdog, the National Data Guardian (NDG), has published correspondence between her office and the national privacy watchdog which informed the ICO’s finding in 2017 that a data-sharing arrangement between an NHS Trust and Google-owned DeepMind broke the law.
The exchange was published following a Freedom of Information request by TechCrunch.
In fall 2015 the Royal Free NHS Trust and DeepMind signed a data-sharing agreement which saw the medical records of 1.6 million people quietly passed to the AI company without patients being asked for their consent.
The scope of the data-sharing arrangement — ostensibly to develop a clinical task management app — was only brought to light by investigative journalism. That then triggered regulatory scrutiny — and the eventual finding by the ICO that there was no legal basis for the data to have been transferred in the first place.
Despite that, the app in question, Streams — which does not (currently) contain any AI but uses an NHS algorithm for detecting acute kidney injury — has continued being used in NHS hospitals.
DeepMind has also since announced it plans to transfer its health division to Google. Although — to our knowledge — no NHS trusts have yet signed new contracts for Streams with the ad giant.
In parallel with releasing her historical correspondence with the ICO, Dame Fiona Caldicott, the NDG, has written a blog post in which she articulates a clear regulatory position that the “reasonable expectations” of patients must govern non-direct care uses for people’s health data — rather than healthcare providers relying on whether doctors think developing such and such an app is a great idea.
The ICO had asked for guidance from the NDG on how to apply the common law duty of confidentiality, as part of its investigation into the Royal Free NHS Trust’s data-sharing arrangement with DeepMind for Streams.
In a subsequent audit of Streams that was a required by the regulator, the trust’s law firm, Linklaters, argued that a call on whether a duty of confidentiality has been breached should be judged from the point of view of the clinician’s conscience, rather than the patient’s reasonable expectations.
Caldicott writes that she firmly disagrees with that “key argument”.
“It is my firm view that it is the patient’s perspective that is most important when judgements are being made about the use of their confidential information. My letter to the Information Commissioner sets out my thoughts on this matter in some detail,” she says, impressing the need for healthcare innovation to respect the trust and confidence of patients and the public.
“I do champion innovative technologies and new treatments that are powered by data. The mainstreaming of emerging fields such as genomics and artificial intelligence offer much promise and will change the face of medicine for patients and health professionals immeasurably… But my belief in innovation is coupled with an equally strong belief that these advancements must be introduced in a way that respects people’s confidentiality and delivers no surprises about how their data is used. In other words, the public’s reasonable expectations must be met.”
“Patients’ reasonable expectations are the touchstone of the common law duty of confidence,” she adds. “Providers who are introducing new, data-driven technologies, or partnering with third parties to help develop and test them, have called for clearer guidance about respecting data protection and confidentiality. I intend to work with the Information Commissioner and others to improve the advice available so that innovation can be undertaken safely: in compliance with the common law and the reasonable expectations of patients.
“The National Data Guardian is currently supporting the Health Research Authority in clarifying and updating guidance on the lawful use of patient data in the development of healthcare technologies.”
We reached out to the Royal Free NHS Trust and DeepMind for comment on the NDG’s opinion. At the time of writing neither had responded.
In parallel, Bloomberg reported this week that DeepMind co-founder, Mustafa Suleyman, is currently on leave from the company. (Suleyman has since tweeted that the break is temporary and for “personal” reasons, to “recharge”, and that he’s “looking forward to being back in the saddle at DeepMind soon”.)
The AI research company recently touted what it couched as a ‘breakthrough’ in predictive healthcare — saying it had developed an AI model for predicting the same condition that the Streams app is intended to alert for. Although the model was built using US data from the Department of Veterans Affairs which skews overwhelmingly male.
As we wrote at the time, the episode underscores the potential value locked up in NHS data — which offers population-level clinical data that the NHS could use to develop AI models of its own. Indeed, a 2017 government-commissioned review of the life sciences sector called for a strategy to “capture for the UK the value in algorithms generated using NHS data”.
The UK government is also now pushing a ‘tech-first’ approach to NHS service delivery.
Earlier this month the government announced it’s rerouting £250M in public funds for the NHS to set up an artificial intelligence lab that will work to expand the use of AI technologies within the service.
Last fall health secretary, Matt Hancock, set out his tech-first vision of future healthcare provision — saying he wanted “healthtech” apps and services to support “preventative, predictive and personalised care”.
So there are certainly growing opportunities for developing digital healthcare solutions to support the UK’s National Health Service.
As well as — now — clearer regulatory guidance that app development that wants to be informed by patient data must first win the trust and confidence of the people it hopes to serve.
Solving information scatter inside enterprises seems to be the founding idea behind dozens of enterprise software startups. Capacity, which recently rebranded from Jane.ai, is raising new cash to tackle the issue with its corporate data search platform.
The company just closed a $13.2 million Series B was funded entirely by Midwestern private investors and angels.
The St. Louis workplace startup helps its customers pull all of their organizational data together into a platform that makes company information more accessible to people inside the company. It’s all done through a chat interface and directory that employees can use to search for information. There’s a pretty high degree of flexibility in customizing how questions are answered and when a line of questioning gets routed to a person onsite.
Alongside Capacity’s name change, the company has opened up its platform to let its customers’ developers connect apps to the Capacity network so that more information can be shared and accessed more easily.
“We got to this point where we realized that we’re never going to be the experts in building out every one of these tailored apps, so opening up our developer platform has been crucial to helping expand the number of apps that we’ll be able to connect to,” CEO David Karandish told TechCrunch.
These automated chat bots aren’t silver bullets but the fact is a lot of this content is usually found in disparate places, and tools that can crawl through documents and pull out the key context solve a pretty clear pain point for companies.
As the technologies that were once considered science fiction become the purview of science, the venture capital firms that were once investing at the industry’s fringes are now finding themselves at the heart of the technology industry.
Investing in the commercialization of technologies like genetic engineering, quantum computing, digital avatars, augmented reality, new human-computer interfaces, machine learning, autonomous vehicles, robots, and space travel that were once considered “frontier” investments are now front-and-center priorities for many venture capital firms and the limited partners that back them.
Earlier this month, Lux Capital raised $1.1 billion across two funds that invest in just these kinds of companies. “[Limited partners] are now more interested in frontier tech than ever before,” said Bilal Zuberi, a partner with the firm.
He sees a few factors encouraging limited partners (the investors who provide financing for venture capital funds) to invest in the firms that are financing companies developing technologies that were once considered outside of the mainstream.
Netflix is still the No. 1 subscription streaming service in the U.S., according to a new report from eMarketer, but rivals including Amazon Prime Video and Hulu are starting to cut into its market share. The analyst firm forecasts 182.5 million U.S. consumers will subscribe to over-the-top streaming services this year, or 53.3% of the population. Netflix is still the too choice here, with 158.8 million viewers in 2019 and it is continuing to grow. However, its share of the U.S. over-the-top subscription market will decline even as its total subscriber numbers climb, the report said.
Though Netflix announced in Q2 the first drop in U.S. users in nearly a decade, eMarketer says Netflix will see strong growth throughout the rest of the year — up 7.6% over 2018. This will be driven by the new seasons of popular series like Orange is the New Black and Stranger Things, as well as Academy Award-winning director Martin Scorsese’s new movie, The Irishman.
But Netflix is no longer the only option for streaming video these days. Back in 2014, it had 90% of the market. In 2019, its share will have shrunk to 87%.
This decline in market share is attributed to the rise of rival services, like Hulu and Prime Video.
Hulu, for example, is estimated to reach 75.8 million U.S. viewers this year, or 41.5% of subscription service users. The number of viewers will also increase by 17.5% in 2019, but this is a drop from 2018’s big growth spurt of 49.6%
Prime Video, meanwhile will remain the second-largest subscription over-the-top video provider in the U.S. in 2019, the report says, with 96.5 million viewers. That’s up 8.8% over last year.
The firm estimates Prime Video will reach a third of the U.S. population by 2021.
Netflix market share dominance is about to face new threats as well, most notably from the Disney-Hulu-ESPN bundle, which is priced the same as a standard U.S. Netflix subscription.
“Netflix has faced years of strong competition for viewers, coming from streaming video platforms, pay-TV services, and even video games,” said eMarketer forecasting analyst Eric Haggstrom. “While there is no true ‘Netflix killer’ on the market, Disney’s upcoming bundle with Disney+, Hulu and ESPN+ probably comes closest. Netflix’s answer has been to stick to what has made it the market leader—outspending the competition on both licensed and original content, offering customers a competitive price,” he added.
Disney isn’t the only one with a new streaming service in the works, though.
Apple TV+ is poised to launch later this year, and is said to be spending $6 billion on content — far more than the $1 billion that had been reported. It’s also said to be considering a competitive $9.99 per month price point.
NBCUniversal and AT&T WarnerMedia are also poised to enter the market, the latter with HBO Max. And following the CBS-Viacom merger, the combined company is looking to beef up its own platforms, CBS All Access and the ad-supported Pluto TV, with the newly acquired content.
“The market for streaming video has been driven by an explosion in high-end original content and low subscription costs relative to traditional pay TV,” Haggstrom noted. “A strong consumer appetite for new shows and movies has driven viewer growth for services like Netflix, Hulu and Amazon Prime Video, as well as the broader market.”
Once considered the most boring of topics, enterprise software is now getting infused with such energy that it is arguably the hottest space in tech.
It’s been a long time coming. And it is the developers, software engineers and veteran technologists with deep experience building at-scale technologies who are energizing enterprise software. They have learned to build resilient and secure applications with open-source components through continuous delivery practices that align technical requirements with customer needs. And now they are developing application architectures and tools for at-scale development and management for enterprises to make the same transformation.
“Enterprise had become a dirty word, but there’s a resurgence going on and Enterprise doesn’t just mean big and slow anymore,” said JD Trask, co-founder of Raygun enterprise monitoring software. “I view the modern enterprise as one that expects their software to be as good as consumer software. Fast. Easy to use. Delivers value.”
The shift to scale out computing and the rise of the container ecosystem, driven largely by startups, is disrupting the entire stack, notes Andrew Randall, vice president of business development at Kinvolk.
In advance of TechCrunch’s first enterprise-focused event, TC Sessions: Enterprise, The New Stack examined the commonalities between the numerous enterprise-focused companies who sponsor us. Their experiences help illustrate the forces at play behind the creation of the modern enterprise tech stack. In every case, the founders and CTOs recognize the need for speed and agility, with the ultimate goal of producing software that’s uniquely in line with customer needs.
We’ll explore these topics in more depth at The New Stack pancake breakfast and podcast recording at TC Sessions: Enterprise. Starting at 7:45 a.m. on Sept. 5, we’ll be serving breakfast and hosting a panel discussion on “The People and Technology You Need to Build a Modern Enterprise,” with Sid Sijbrandij, founder and CEO, GitLab, and Frederic Lardinois, enterprise writer and editor, TechCrunch, among others. Questions from the audience are encouraged and rewarded, with a raffle prize awarded at the end.
Traditional virtual machine infrastructure was originally designed to help manage server sprawl for systems-of-record software — not to scale out across a fabric of distributed nodes. The disruptors transforming the historical technology stack view the application, not the hardware, as the main focus of attention. Companies in The New Stack’s sponsor network provide examples of the shift toward software that they aim to inspire in their enterprise customers. Portworx provides persistent state for containers; NS1 offers a DNS platform that orchestrates the delivery internet and enterprise applications; Lightbend combines the scalability and resilience of microservices architecture with the real-time value of streaming data.
“Application development and delivery have changed. Organizations across all industry verticals are looking to leverage new technologies, vendors and topologies in search of better performance, reliability and time to market,” said Kris Beevers, CEO of NS1. “For many, this means embracing the benefits of agile development in multicloud environments or building edge networks to drive maximum velocity.”
Enterprise software startups are delivering that value, while they embody the practices that help them deliver it.
Speed matters, but only if the end result aligns with customer needs. Faster time to market is often cited as the main driver behind digital transformation in the enterprise. But speed must also be matched by agility and the ability to adapt to customer needs. That means embracing continuous delivery, which Martin Fowler describes as the process that allows for the ability to put software into production at any time, with the workflows and the pipeline to support it.
Continuous delivery (CD) makes it possible to develop software that can adapt quickly, meet customer demands and provide a level of satisfaction with benefits that enhance the value of the business and the overall brand. CD has become a major category in cloud-native technologies, with companies such as CircleCI, CloudBees, Harness and Semaphore all finding their own ways to approach the problems enterprises face as they often struggle with the shift.
“The best-equipped enterprises are those [that] realize that the speed and quality of their software output are integral to their bottom line,” Rob Zuber, CTO of CircleCI, said.
Speed is also in large part why monitoring and observability have held their value and continue to be part of the larger dimension of at-scale application development, delivery and management. Better data collection and analysis, assisted by machine learning and artificial intelligence, allow companies to quickly troubleshoot and respond to customer needs with reduced downtime and tight DevOps feedback loops. Companies in our sponsor network that fit in this space include Raygun for error detection; Humio, which provides observability capabilities; InfluxData with its time-series data platform for monitoring; Epsagon, the monitoring platform for serverless architectures and Tricentis for software testing.
“Customer focus has always been a priority, but the ability to deliver an exceptional experience will now make or break a “modern enterprise,” said Wolfgang Platz, founder of Tricentis, which makes automated software testing tools. “It’s absolutely essential that you’re highly responsive to the user base, constantly engaging with them to add greater value. This close and constant collaboration has always been central to longevity, but now it’s a matter of survival.”
DevOps is a bit overplayed, but it still is the mainstay workflow for cloud-native technologies and critical to achieving engineering speed and agility in a decoupled, cloud-native architecture. However, DevOps is also undergoing its own transformation, buoyed by the increasing automation and transparency allowed through the rise of declarative infrastructure, microservices and serverless technologies. This is cloud-native DevOps. Not a tool or a new methodology, but an evolution of the longstanding practices that further align developers and operations teams — but now also expanding to include security teams (DevSecOps), business teams (BizDevOps) and networking (NetDevOps).
“We are in this constant feedback loop with our customers where, while helping them in their digital transformation journey, we learn a lot and we apply these learnings for our own digital transformation journey,” Francois Dechery, chief strategy officer and co-founder of CloudBees, said. “It includes finding the right balance between developer freedom and risk management. It requires the creation of what we call a continuous everything culture.”
Leveraging open-source components is also core in achieving speed for engineering. Open-source use allows engineering teams to focus on building code that creates or supports the core business value. Startups in this space include Tidelift and open-source security companies such as Capsule8. Organizations in our sponsor portfolio that play roles in the development of at-scale technologies include The Linux Foundation, the Cloud Native Computing Foundation and the Cloud Foundry Foundation.
“Modern enterprises … think critically about what they should be building themselves and what they should be sourcing from somewhere else,” said Chip Childers, CTO of Cloud Foundry Foundation . “Talented engineers are one of the most valuable assets a company can apply to being competitive, and ensuring they have the freedom to focus on differentiation is super important.”
You need great engineering talent, giving them the ability to build secure and reliable systems at scale while also the trust in providing direct access to hardware as a differentiator.
The bleeding edge can bleed too much for the likings of enterprise customers, said James Ford, an analyst and consultant.
“It’s tempting to live by mantras like ‘wow the customer,’ ‘never do what customers want (instead build innovative solutions that solve their need),’ ‘reduce to the max,’ … and many more,” said Bernd Greifeneder, CTO and co-founder of Dynatrace . “But at the end of the day, the point is that technology is here to help with smart answers … so it’s important to marry technical expertise with enterprise customer need, and vice versa.”
How the enterprise adopts new ways of working will affect how startups ultimately fare. The container hype has cooled a bit and technologists have more solid viewpoints about how to build out architecture.
One notable trend to watch: The role of cloud services through projects such as Firecracker. AWS Lambda is built on Firecracker, the open-source virtualization technology, built originally at Amazon Web Services . Firecracker serves as a way to get the speed and density that comes with containers and the hardware isolation and security capabilities that virtualization offers. Startups such as Weaveworks have developed a platform on Firecracker. OpenStack’s Kata containers also use Firecracker.
“Firecracker makes it easier for the enterprise to have secure code,” Ford said. It reduces the surface security issues. “With its minimal footprint, the user has control. It means less features that are misconfigured, which is a major security vulnerability.”
Enterprise startups are hot. How they succeed will determine how well they may provide a uniqueness in the face of the ever-consuming cloud services and at-scale startups that inevitably launch their own services. The answer may be in the middle with purpose-built architectures that use open-source components such as Firecracker to provide the capabilities of containers and the hardware isolation that comes with virtualization.
Hope to see you at TC Sessions: Enterprise. Get there early. We’ll be serving pancakes to start the day. As we like to say, “Come have a short stack with The New Stack!”
T-Mobile customers across the U.S. said they couldn’t make calls or send text messages following an outage.
We tested with a T-Mobile phone in the office. Both calls to and from the T-Mobile phone failed. When we tried to send a text message, it said the message could not be sent. Access to mobile data appeared to be unaffected.
The outage began around 6pm ET.
Users took to social media to complain about the outage. Users across the U.S. said they were affected. A T-Mobile support account said the cell giant “engaged our engineers and are working on a resolution.”
In a tweet two hours into the outage, chief executive John Legere acknowledged the company was struggling to get back online but noted that the company had “already started to see signs of recovery.”
By 10:34pm ET, the issue had been resolved, tweeted T-Mobile chief technology officer Neville Ray, without saying what caused the four-hour long outage.
T-Mobile is the third largest cell carrier after Verizon (which owns TechCrunch) and AT&T. The company had its proposed $26.5 billion merger with Sprint approved by the Federal Communications Commission, despite a stream of state attorneys general lining up to block the deal.
Updated with acknowledgement by chief executive John Legere, and later from Neville Ray.
Porsche’s venture arm has acquired a minority stake in TriEye, an Israeli startup that’s working on a sensor technology to help vehicle driver-assistance and self-driving systems see better in poor weather conditions like dust, fog and rain.
The strategic investment is part of a Series A financing round that has been expanded to $19 million. The round was initially led by Intel Capital and Israeli venture fund Grove Ventures. Porsche has held shares in Grove Ventures since 2017.
TriEye has raised $22 million to date. Terms of Porsche’s investment were not disclosed.
The additional funding will be used for ongoing product development, operations and hiring talent, according to TriEye.
The advanced driver-assistance systems found in most new vehicles today typically rely on a combination of cameras and radar to “see.” Autonomous vehicle systems, which are being developed and tested by dozens of companies such as Argo AI, Aptiv, Aurora, Cruise and Waymo, have a more robust suite of sensors that include light detection and ranging radar (lidar) along with cameras and ultrasonic sensors.
For either of these systems to function properly, they need to be able to see in all conditions. This pursuit of sensor technology has sparked a boom in startups hoping to tap into demand from automakers and companies working on self-driving car systems.
TriEye is one of them. The premise of TriEye is to solve the low visibility problem created by poor weather conditions. The startup’s co-founders argue that fusing existing sensors such as radar, lidar and standard cameras don’t solve this problem.
TriEye, which was founded in 2017, believes the answer is through short-wave infrared (SWIR) sensors. The startup said it has developed an HD SWIR camera that is a smaller size, higher resolution and cheaper than other technologies. The camera is due to launch in 2020.
The technology is based on advanced nano-photonics research by Uriel Levy, a TriEye co-founder and CTO who is also a professor at the Hebrew University of Jerusalem.
The company says its secret sauce is its “unique” semiconductor design that will make it possible to manufacture SWIR HD cameras at a “fraction of their current cost.”
TriEye’s technology was apparently good enough to get Porsche’s attention.
Michael Steiner, a Porsche AG board member focused on R&D, said the technology was promising, as was the team, which is comprised of people with expertise in deep learning, nano-photonics and semiconductor components.
“We see great potential in this sensor technology that paves the way for the next generation of driver assistance systems and autonomous driving functions,” Steiner said in a statement. “SWIR can be a key element: it offers enhanced safety at a competitive price.”
Chinese search giant Baidu on Monday posted a revenue of 26.33 billion yuan ($3.73 billion) for the quarter that ended in June, beating analysts’ estimates of 25.77 billion yuan ($3.65 billion) as its video streaming service iQIYI continues to see strong growth. The 19-year-old firm’s shares were up over 9% in extended trading.
The company, which is often called Google of China, said revenue of its core businesses grew 12% from the same period last year “despite the weak macro environment, our self-directed healthcare initiative, industry-specific policy changes and large influx of ad inventory.” Net income for the second quarter dropped to 2.41 billion yuan ($344 million).
“With Baidu traffic growing robustly and our mobile ecosystem continuing to expand, we are in a good position to focus on capitalizing monetization and ROI improvement opportunities to deliver shareholder value,” Herman Yu, CFO of Baidu, said in a statement.
Today’s results for Baidu, which has been struggling of late, should help calm investors’ worries. In recent years, as users move from desktop to mobile and rivals such as ByteDance win hundreds of millions of users through their mobile apps, many have cast doubt on Baidu’s ability to maintain its momentum and hold onto its advertising business. (On desktop, Baidu continues to command over three quarters of the Chinese market share.)
In the quarter that ended in March this year, Baidu posted its first quarterly loss since 2015, the year it went public.
Robin Li, Baidu co-founder and CEO, said Baidu app was being used by 188 million users everyday, up 27% from the same period last year. “In-app search queries grew over 20% year over year and smart mini program MAUs reached 270 million, up 49% sequentially,” said.
Baidu’s video streaming service iQIYI has now amassed over 100.5 million subscribers, up 50% year over year, the company said. Revenue from iQIYI stood at 7.11 billion yuan ($1.01 billion), up 15% since last year.
“On Baidu’s AI businesses, DuerOS voice assistant continues to experience strong momentum with installed base surpassing 400 million devices, up 4.5 fold year over year, and monthly voice queries surpassing 3.6 billion, up 7.5 fold year over year, in June. As mobile internet penetration in China slows, we are excited about the huge opportunity to provide content and service providers a cross-platform distribution channel beyond mobile, into smart homes and automobiles,” he added.
Revenue from online marketing services, which makes a significant contribution to overall sales, fell about 9% to 19.2 billion yuan ($2.72 billion).
Popular enterprise news and research site The New Stack is coming to TechCrunch Sessions: Enterprise on September 5 for a special Pancake & Podcast session with live Q&A, featuring, you guessed it, delicious pancakes and awesome panelists!
Here’s the “short stack” of what’s going to happen:
You can only take part in this fun pancake-breakfast podcast if you register for a ticket to TC Sessions: Enterprise. Use the code TNS30 to get 30% off the conference registration price!
Here’s the longer version of what’s going to happen:
At 8:15 a.m., The New Stack founder and publisher Alex Williams takes the stage as the moderator and host of the panel discussion. Our topic: “The People and Technology You Need to Build a Modern Enterprise.” We’ll start with intros of our panelists and then dive into the topic with Sid Sijbrandij, founder and CEO at GitLab, and Frederic Lardinois, enterprise reporter and editor at TechCrunch, as our initial panelists. More panelists to come!
Then it’s time for questions. Questions we could see getting asked (hint, hint): Who’s on your team? What makes a great technical team for the enterprise startup? What are the observations a journalist has about how the enterprise is changing? What about when the time comes for AI? Who will I need on my team?
And just before 9 a.m., we’ll pick a ticket out of the hat and announce our raffle winner. It’s the perfect way to start the day.
On a side note, the pancake breakfast discussion will be published as a podcast on The New Stack Analysts.
But there’s only one way to get a prize and network with fellow attendees, and that’s by registering for TC Sessions: Enterprise and joining us for a short stack with The New Stack. Tickets are now $349, but you can save 30% with code TNS30.
OKRs, or Objectives and Key Results, are a popular planning method in Silicon Valley. Like most of those methods that make you fill in some form once every quarter, I’m pretty sure employees find them rather annoying and a waste of their time. Ally wants to change that and make the process more useful. The company today announced that it has raised an $8 million Series A round led by Access Partners, with participation from Vulcan Capital, Founders Co-op and Lee Fixel. The company, which launched in 2018, previously raised a $3 million seed round.
Ally founder and CEO Vetri Vellore tells me that he learned his management lessons and the value of OKR at his last startup, Chronus. After years of managing large teams at enterprises like Microsoft, he found himself challenged to manage a small team at a startup. “I went and looked for new models of running a business execution. And OKRs were one of those things I stumbled upon. And it worked phenomenally well for us,” Vellore said. That’s where the idea of Ally was born, which Vellore pursued after selling his last startup.
Most companies that adopt this methodology, though, tend to work with spreadsheets and Google Docs. Over time, that simply doesn’t work, especially as companies get larger. Ally, then, is meant to replace these other tools. The service is currently in use at “hundreds” of companies in more than 70 countries, Vellore tells me.
One of its early adopters was Remitly . “We began by using shared documents to align around OKRs at Remitly. When it came time to roll out OKRs to everyone in the company, Ally was by far the best tool we evaluated. OKRs deployed using Ally have helped our teams align around the right goals and have ultimately driven growth,” said Josh Hug, COO of Remitly.
Vellore tells me that he has seen teams go from annual or bi-annual OKRs to more frequently updated goals, too, which is something that’s easier to do when you have a more accessible tool for it. Nobody wants to use yet another tool, though, so Ally features deep integrations into Slack, with other integrations in the works (something Ally will use this new funding for).
Since adopting OKRs isn’t always easy for companies that previously used other methodologies (or nothing at all), Ally also offers training and consulting services with online and on-site coaching.
Pricing for Ally starts at $7 per month per user for a basic plan, but the company also offers a flat $29 per month plan for teams with up to 10 users, as well as an enterprise plan, which includes some more advanced features and single sign-on integrations.
The vast enterprise tech category is Silicon Valley’s richest, and today it’s poised to change faster than ever before. That’s probably the biggest reason to come to TechCrunch’s first-ever show focused entirely on enterprise. But here are five more reasons to commit to joining TechCrunch’s editors on September 5 at San Francisco’s Yerba Buena Center for an outstanding day (agenda here) addressing the tech tsunami sweeping through enterprise.
#1 Artificial Intelligence.
At once the most consequential and most hyped technology, no one doubts that AI will change business software and increase productivity like few if any, technologies before it. To peek ahead into that future, TechCrunch will interview Andrew Ng, arguably the world’s most experienced AI practitioner at huge companies (Baidu, Google) as well as at startups. AI will be a theme across every session, but we’ll address again it head-on in a panel with investor Jocelyn Goldfein (Zetta), founder Bindu Reddy (Reality Engines) and executive John Ball (Salesforce / Einstein).
#2. Data, The Cloud and Kubernetes.
If AI is at the dawn of tomorrow, cloud transformation is the high noon of today. 90% of the world’s data was created in the past two years, and no enterprise can keep its data hoard on-prem forever. Azure’s CTO Mark Russinovitch (CTO) will discuss Microsft’s vision for the cloud. Leaders in the open-source Kubernetes revolution, Joe Beda (VMWare) and Aparna Sinha (Google) and others will dig into what Kubernetes means to companies making the move to cloud. And last, there is the question of how to find signal in all the data – which will bring three visionary founders to the stage: Benoit Dageville (Snowflake), Ali Ghodsi (Databricks), Murli Thirumale (Portworx).
#3 Everything else on the main stage!
Let’s start with a fireside chat with SAP CEO Bill McDermott and Qualtrics Chief Experience Officer Julie Larson-Green. We have top investors talking where they are making their bets, and security experts talking data and privacy. And then there is quantum, the technology revolution waiting on the other side of AI: Jay Gambetta, the principal theoretical scientist behind IBM’s quantum computing effort, Jim Clarke, the director of quantum hardware at Intel Labs, and Krysta Svore, style="font-weight: 400;"> who leads the Microsoft’s quantum effort.
All told, there are 21 programming sessions.
#4 Network and get your questions answered.
There will be two Q&A breakout sessions with top enterprise investors for founders (and anyone else) to query investors directly. Plus, TechCrunch’s unbeatable CrunchMatch app makes it really easy to set up meetings with the other attendees, an incredible array of folks, plus the 20 early-stage startups exhibiting on the expo floor.
Enterprise giant SAP is our sponsor for the show, and they are not only bringing a squad of top executives, they are producing four parallel track sessions featuring key SAP Chief Innovation Officer Max Wessel, SAP Chief Designer and Futurist Martin Wezowski and SAP.IO’s managing director Ram Jambunathan (SAP.iO) in sessions including, how to scale-up an enterprise startup, how startups win large enterprise customers, and what the enterprise future looks like.
Check out the complete agenda. Don’t miss this show! This line-up is a view into the future like none other.
Grab your $349 tickets today, and don’t wait till the day of to book because prices go up at the door!
We still have 2 Startup Demo Tables left. Each table comes with 4 tickets and a prime location to demo your startup on the expo floor. Book your demo table now before they’re all gone!
Depending on your connection and the size of your household, video streaming can get downright post-apocalyptic — bandwidth is the key resource, and everyone is fighting to get the most and avoid a nasty, pixelated picture. But a new way to control how bandwidth is distributed across multiple, simultaneous streams could mean peace across the land — even when a ton of devices are sharing the same connection and all are streaming video at the same time.
Researchers at MIT’s Computer Science and Artificial Intelligence Lab created a system they call “Minerva” that minimizes stutters due to buffering, and pixelation due to downgraded stream, which it believes could have huge potential benefits for streaming services like Netflix and Hulu that increasingly serve multiple members of a household at once. The underlying technology could be applied to larger areas, too, extending beyond the house and into neighborhoods or even whole regions to mitigate the effects of less than ideal streaming conditions.
Minerva works by taking into account the varying needs of different delivery devices streaming on a network — so it doesn’t treat a 4K Apple TV the same as an older smartphone with a display that can’t even show full HD output, for instance. It also considers the nature of the content, which is important because live-action sports require a heck of a lot more bandwidth to display in high quality when compared to say a children’s animated TV show.
Video is then served to viewers based on its actual needs, instead of just being allocated more or less evenly across devices, and the Minerva system continually optimizes delivery speeds in accordance with their changing needs as the stream continues.
In real-world testing, Minerva was able to provide a quality jump equivalent to going from 720p to 1080p as much as a third of the time, and eliminated the need for rebuffing by almost 50%, which is a massive improvement when it comes to actually being able to seamlessly stream video content continuously. Plus, it can do all this without requiring any fundamental changes to network infrastructure, meaning a streaming provider could roll it out without having to require any changes on the part of users.
Healthtech is apparently in a golden age. Just a few weeks ago, Livongo and Health Catalyst raised a combined $500 million through IPOs with a joint valuation reaching $3.5 billion. Deals such as these are catalyzing a record-breaking 2019, with digital health deal activity expected to surpass the $8.1 billion invested in 2018.
Amidst such abundance, the digital health ecosystem is thriving: as of 2017, greater than 300,000 mobile applications and 340 consumer wearable devices existed—with 200 new mobile applications added daily. No theme has been more important to this fundraising than artificial intelligence and machine learning (AI/ML), a space which captured more than one-quarter of healthtech funding in 2018.
Yet, how many of these technologies will prove valuable in medical, ethical, or financial terms?
Our research group at Stanford addressed this question by taking a deeper dive into the saying that, in AI/ML, “garbage in equals garbage out.” We did this by distinguishing digital health algorithms leveraging AI/ML from their underlying training data, documenting the numerous consequences to the outputs of these technologies should the inputs resemble, well, “garbage.”
For example, the utility of genetic risk scores provided by companies such as 23andMe and AncestryDNA (which have estimated valuations of $1.75 and $2.6 billion, respectively) may be limited due to diagnostic biases stemming from the underrepresentation of diverse populations.
Responding to such observations, we provide a variety of recommendations to the developers, inventors, and founders spearheading the advancement of digital health—as well as the funders supporting this charge forward—to ensure that their innovations are valuable to the stakeholders they target.
Discovering and drilling for the important minerals used for industry and the technology sector remains incredibly important as existing mines are becoming depleted. If the mining industry can’t become more efficient at finding these important deposits, then more unnecessary, harmful drilling and exploration takes place. Applying AI to this problem would seem like a no-brainer for the environment.
Joining this field is now Earth AI, a mineral targeting startup which is using AI to predict the location of new ore bodies far more cheaply, faster, and with more precision (it claims) than previous methods.
It’s now closed a funding round of ‘up to’ $2.5 million from Gagarin Capital, A VC firm specializing in AI, and Y Combinator, in the latter’s latest cohort announced this week. Previously, Earth AI had raised $1.7 million in two seed rounds from Australian VCs, AirTree Ventures and Blackbird Ventures and angel investors.
The startup uses machine learning techniques on global data, including remote sensing, radiometry, geophysical and geochemical datasets, to learn the data signatures related to industrial metal deposits (from gold, copper, and lead to rare earth elements), train a neural network, and predict where high-value mineral prospects will be.
In particular, it was used to discover a deposit of Vanadium, which is used to build Vanadium Redox Batteries that are used in large industrial applications. Finding these deposits faster using AI means the planet will thus benefit faster from battery technology.
In 2018, Earth AI field-tested remote unexplored areas and claims to have generated a 50X better success rate than traditional exploration methods, while spending on average $11,000 per prospect discovery. In Australia, for instance, companies often spend several million dollars to arrive at the same result.
Jared Friedman, YCombinator partner comented in a statement: “The possibility of discovering new mineral deposits with AI is a fascinating and thought-provoking idea. Earth AI has the potential not just to become an incredibly profitable company, but to reduce the cost of the metals we need to build our civilization, and that has huge implications for the world.”
“Earth AI is taking a novel approach to a large and important industry — and that approach is already showing tremendous promise”, Mikhail Taver, partner at Gagarin Capital said.
Earth AI was founded by Roman Tesyluk, a geoscientist with eight years of mineral exploration and academic experience. Prior to starting Earth AI, he was a PhD Candidate at The University of Sydney, Australia and obtained a Master’s degree in Geology from Ivan Franko University, Ukraine. “EARTH AI has huge ambitions, and this funding round will supercharge us towards reaching our milestones,” he said.
This latest investment from Gagarin Capital joins a line of other AI-based products and services and investments it’s made into YC companies, such as Wallarm, Gosu.AI and CureSkin. Gagarin’s exits include MSQRD (acquired by Facebook), and AIMatter (acquired by Google).
Sonos has an event coming up at the end of the month to reveal something new, but leaks have pretty much given away what’s likely to be the highlight announcement at the event: A new, Bluetooth-enabled speaker that has a built-in battery for portable power.
The speaker originally leaked earlier this month, with Dave Zatz showing off a very official-looking image, and The Verge reporting some additional details, including a toggle switch for moving between Bluetooth and Wi-Fi modes, and a USB-C port for charging, along with rough dimensions that peg it as a little bit bigger than the existing Sonos One.
Now, another leak from Win Future has revealed yet more official-looking images, including a photo of the device with its apparent dock, which provides contact charging. The site also says the new speaker will be called the Sonos Move, which makes a lot of sense, given it’ll be the only one that can actually move around and still maintain functionality while portable.
Here’s the TL;DR of what we know so far, across all the existing leaks:
No word yet on official availability or pricing, but it’s reasonable to expect that it’ll arrive sometime this fall, following that late August announcement.
Rocket Lab has successfully launched its eighth mission, an Electron rocket rideshare flight carrying four satellites to orbit for various clients. The Electron launched from Rocket Lab’s Launch Complex 1 in New Zealand, at 12:12 AM NZST (8:12 AM ET). This was its second attempt, after a scrub last week due to adverse weather conditions on the launch range.
On board, it carried a rideshare mission from launch services provider Spaceflight, which works to bring together payloads to simplify the process of finding a provider for smaller payloads and companies. The Spaceflight portion of the payload included three satellites: One satellite from BlackSky, which does Earth-imaging, and which will join its twin launched by Rocket Lab in June already in low-Earth orbit to form a constellation.
Spaceflight’s cargo also included two experimental satellites launched by the U.S. Air Force Space Command, which will carry out tests of new technology related to spacecraft propulsion, power, communications and more, and which are designed to pave the way for deployment of related technologies in future spacecraft.
There’s also a fourth satellite on board, a CubeSat that will be the anchor for a new constellation aimed at providing up-to-date and accurate monitoring of maritime traffic, operated by Unseenlabs.
Rocket Lab’s New Zealand LC-1 will be joined by a second launch site in Virginia, to provide a U.S.-based complimentary launch site for serving customers on a monthly basis.
The company also plans to eventually make its Electron rockets reusable, even though they were originally intended as fully expendable launch vehicles, using a recovery process that involves catching returning rockets mid-air after they re-enter Earth’s atmosphere. Today’s launch included a test of recovery equipment for the Electron’s first stage – an initial test that aimed to have the rocket land back in the Pacific via parachute, where Rocket Lab will attempt to pick it up from the ocean for potential refurbishment.