Monthly Archives: January 2021

News: Smart lock maker Latch teams with real estate firm to go public via SPAC

This week, Latch becomes the latest company to join the SPAC parade. Founded in 2014, the New York-based company came out of stealth two years later, launching a smart lock system. Though, like many companies primarily known for hardware solutions, Latch says it’s more, offering a connected security software platform for owners of apartment buildings.

This week, Latch becomes the latest company to join the SPAC parade. Founded in 2014, the New York-based company came out of stealth two years later, launching a smart lock system. Though, like many companies primarily known for hardware solutions, Latch says it’s more, offering a connected security software platform for owners of apartment buildings.

The company is set to go public courtesy of a merger with blank check company TS Innovation Acquisitions Corp. As far as partners go, Tishman Speyer Properties makes strategic sense here. The New York-based commercial real estate firm is a logical partner for a company whose technology is currently deployed exclusively in residential apartment buildings.

“With a standard IPO, you have all of the banks take you out to all of the big investors,” Latch founder and CEO Luke Schoenfelder tells TechCrunch. “We felt like there was an opportunity here to have an extra level of strategic partnership and an extra level of product expansion that came as part of the process. Our ability to go into Europe and commercial offices is now accelerated meaningfully because of this partnership.

The number of SPAC deals has increased substantially over the past several months, including recent examples like Taboola. According to Crunchbase, Latch has raised $152 million, to date. And the company has seen solid growth over the past year — not something every hardware or hardware adjacent company can say about the pandemic.

As my colleague Alex noted on Extra Crunch today, “Doing some quick match, Latch grew booked revenues 50.5% from 2019 to 2020. Its booked software revenues grew 37.1%, while its booked hardware top line expanded over 70% during the same period.”

“We’ve been a customer and investor in Latch for years,” Tishman Speyer President and CEO Rob Speyer tells TechCrunch. “Our customers — the people who live in our buildings — love the Latch product. So we’ve rolled it out across our residential portfolio […] I hope we can act as both a thought partner and product incubator for them.”

While the company plans to expand to commercial offices, apartment buildings have been a nice vertical thus far — meaning the company doesn’t have to compete as directly in the crowded smart home lock category. Among other things, it’s probably a net positive if you’re going head to head against, say Amazon. That the company has built in partners in real estate firms like Tishman Speyer is also a net positive.

Schoenfelder says the company is looking toward such partnerships as test beds for its technology. “Our products have been in the field for many years in multifamily. The usage patterns are going to be slightly different in commercial offices. We think we know how they’re going to be different, but being able to get them up and running and observe the interaction with products in the wild is going to be really important.”

The deal values Latch at $1.56 billion and is expected to close in Q2.

News: Fintechs could see $100 billion of liquidity in 2021

We believe one of the most important trends to gain traction in the last three years to be point-of-sale financing, now referred to as Buy Now Pay Later (BNPL).

Jake Jolis
Contributor

Jake Jolis is a partner at Matrix Partners and invests in seed and Series A technology companies including marketplaces and software.
Dana Stalder
Contributor

Dana Stalder is a partner at Matrix Partners, where he invests predominantly in fintech, consumer marketplaces and enterprise software.
Ben Altshuler
Contributor

Ben Altshuler is a partner at Matrix Partners who focuses on fintech and infrastructure investments.

Three years ago, we released the first edition of the Matrix Fintech Index. We believed then, as we do now, that fintech represents one of the most exciting major innovation cycles of this decade. In 2020, all the long-term trends forcing change in this sector continued and even accelerated.

The broad movement away from credit toward debit, particularly among younger consumers, represents one such macro shift. However, the pandemic also created new, unforeseen drivers. Among them, millennials decamped from their rentals in crowded cities to accelerate their first home purchase, to the benefit of proptech companies and challenger mortgage players alike.

E-commerce saw an enormous acceleration in growth rates, furthering adoption of online payments platforms. Lastly, low interest rates and looming inflation helped pave the way for the price of Bitcoin to charge toward $30,000. In short, multiple tailwinds combined to produce a blockbuster year for the category.

In this year’s refresh of the Matrix Fintech Index, we’ll divide our attention into three parts. First, a look at the public stocks’ performance. Second, liquidity. Third, we highlight one major trend in the sector: Buy Now Pay Later, or BNPL.

Public fintech stocks rose 97% in 2020

For the fourth straight year, the publicly traded fintechs massively outperformed the incumbent financial services providers as well as every mainstream stock index. While the underlying performance of these companies was strong, the pandemic further bolstered results as consumers avoided appearing in-person for both shopping and banking. Instead, they sought — and found — digital alternatives.

For the fourth straight year, the publicly traded fintechs massively outperformed the incumbent financial services providers as well as every mainstream stock index.

Our own representation of the public fintechs’ performance is the Matrix Fintech Index — a market cap-weighted index that tracks the progress of a portfolio of 25 leading public fintech companies. The Matrix fintech Index rose 97% in 2020, compared to a 14% rise in the S&P 500 and a 10% drop for the incumbent financial service companies over the same time period.

 

2020 performance of individual fintech companies vs. SPX

2020 performance of individual fintech companies versus S&P 500. Image Credits: PitchBook

 

Fintech incumbents and new entrants vs. the S&P 500

Fintech incumbents and new entrants versus the S&P 500. Image Credits: PitchBook

E-commerce undoubtedly stood out as a major driver. As a category, retail e-commerce grew 35% YoY as of Q3, propelling PayPal and Shopify to add over $160 billion of market capitalization over the year. For its part, PayPal in the third quarter signed up 15 million net new active accounts (its highest ever).

News: Walking with Dolly

A walk is, more often than not, a solitary experience. As far as the age of COVID-19 is concerned, that’s probably more bug than feature. It’s a way to escape the confines of a shutdown for a few glorious moments, to get some air and, for better or worse, reflect on the day that’s passed

A walk is, more often than not, a solitary experience. As far as the age of COVID-19 is concerned, that’s probably more bug than feature. It’s a way to escape the confines of a shutdown for a few glorious moments, to get some air and, for better or worse, reflect on the day that’s passed or the one to come.

It can, like many things these days, however, be isolating.

For me, long weekend walks have been a sort of lifesaver throughout this bizarre year. Following two months of being completely sidelined over (non-COVID) health issues, I began walking more per week than I ever have. It was a slow process at first — frankly, never leaving my one-bedroom apartment for April and May made it so it was physically painful to walk around the block when I finally felt comfortable going outside.

These days, I walk every morning, regularly crossing the bridge into Brooklyn and Manhattan. Until I started using Apple’s new Fitness+ service a few times a day, it was easily my main source of exercise. In November, however, my Apple Watch Activity bars swapped the more generic gray for the Fitness+ yellow. But even as I’ve made a point to do a couple of indoor exercises a day, I still start each day with a walk. Rain, snow, this weekend’s sub-freezing weather — skipping a day would feel like breaking a promise to myself.

My actual bars (not sure what happened in September — maybe testing a competitor’s device)

This morning Apple dropped the first five installments (episodes?) of Time to Walk. The feature is an attempt to expand the Fitness+ experience beyond the confines of its titular iOS app. A largely Watch-based experience, the feature leverages much of the wearable’s existing features (and Apple’s growing software ecosystem) to offer a more tailored and multimedia experience than you would get listening to a podcast or music alone.

As with the canny arrival of Fitness+ (December) and handwashing for watchOS (September), Apple says the timing was something of a happy coincidence. The company had been working on the feature well before COVID-19 entered the picture.

“Everything from Time to Walk and our launch of Fitness+ was something we had been working on well before COVID,” the company’s senior director of Fitness Technologies Jay Blahnik tells TechCrunch. “From the very beginning, we thought of Fitness+ as a place where everyone was welcome. We wanted it to feel like a place where, whether you’re new to fitness or very fit, there was something for everyone.”

For many, a walk (or push, in the case of those who use a wheelchair for mobility) is square one when it comes to daily workouts. For my part, I was certainly far more comfortable taking quick strolls around the neighborhood. With limits on space and no real exercise equipment to speak of beyond a kettlebell and yoga mat, attempting to approximate the gym experience at home has seemed a fool’s errand.

April found me trying some YouTube yoga classes with limited efficacy. Like most attempts to exercise, it didn’t stick. Walking every day was the only thing that did. And for the first time in my life, COVID-19 found me walking without any particular destination in mind. That old cliché about it being about the journey not the destination is fine when you don’t mind constantly being late to meetings. Walking for the sake of itself, however, changes the dynamic significantly. I speak to artists, writers and musicians on a regular basis for my podcast. The common sentiment is a familiar one: You simply can’t force creativity. But for those who make a point to regularly walk and run, it’s perhaps the most surefire way to kickstart the process.

Time to Walk is Apple’s attempt to capture some of that lightning in a bottle — to follow a rotating cast of big names as they walk through locations that mean something to them. The company says it’s been making an effort to meet guests where they are and essentially coach them through the process. The ability to do so is, of course, depends on their given location — especially with all of the sorts of travel restrictions that have been in place since early last year.

Ultimately, Apple says, the decisions of where to record are made by the guests. “Some guests said, ‘this is where I want to go,’ ” says Blahnik. “And some guests were like, ‘no, I want to to do the walk I normally do.’ For us, it’s not about Shawn Mendes in the Grand Canyon, it’s about where they want to go. Sometimes that’s limited by COVID, but what we found delightful was for many people, they loved to take the walk they loved to take.”

The first four guests — Mendes, Dolly Parton, Draymond Green and Uzo Aduba — run the gamut on approaches. “We think about the stories, we think about the diverse guest,” says Blahnik. We think about all of the ways you’d like the conversations to go. But what was important to us was that the idea resonated with them. The idea of going out for a walk, having a lovely conversation and hearing stories that could give you a different perspective.”

Parton, who turned 75 earlier this month, recorded her session in a studio — in contrast to the other three names. She relates a handful of stories largely revolving around her upbringing in Sevier County (pronounced “severe”), Tennessee. There’s a story about a Christmas tree and one about opening a literacy center with the help of her father (who struggled with his own ability to read and write).

She somewhat self-effacingly relates a story about the time her hometown erected a statue of her. “So I went home, and I said, ‘Daddy, did you know they’re putting a statue of me? Do you know about the statue down at the courthouse?’ ” Parton explains. “And Daddy said, ‘Well, yeah, I heard about that.’ He said, ‘Now, to your fans out there, you might be some sort of an idol. But to them pigeons, you ain’t nothing but another outhouse.’ ”

According to Parton, her father would visit the statue at night with a bucket of soap and water to clean the pigeons’ mess off his daughter’s likeness. Her segment culminates with something approaching a behind the music-style segment, describing stories behind three of her own songs: “Coat of Many Colors,” “Circle of Love” and “9 to 5.” The latter is the real gem of the bunch, contrasting her morning routines to costars Jane Fonda and Lily Tomlin, while describing the role her acrylic nails played in the songwriting and recording process.

Image Credits: Apple

Green’s stories are more emblematic of the rest. On a walk around Malibu, the Warriors power forward discusses some inspiration stories on and off the court, from being told he would never be a star to a time he tried and failed to cheat on a test in school. The stories are purposefully personal. Aduba relates some of her own struggles to break into acting, as she walks her amusingly named dog Fenway Bark through Fort Green Park in Brooklyn.

The guests share images relating to their stories or snapshots of where they go on their walks, which are delivered to the wrist with a haptic buzz. At they end of the journey, they share three handpicked songs that can be saved to a playlist on Apple Music, similar to what the company has done for its Fitness+ workouts.

Write-ups of the Time to Walk have thus far compared it to podcasting — understandably so, given that it’s an on-demand, audio-first experience. Though the feature, which downloads directly onto the Watch when the new installment drops once a week, has its own flavor, according to Apple.

“Often podcasts are hosted,” Blahnik says, by way of distinction. “In our journey to build out this experience, we certainly considered if there should be a host walking with this person. What we realized is that, for what we were trying to create, the intimacy of having the singular guest talk to you felt a lot more like you were on a walk with them. The notion that it’s not happening in a studio (in almost all cases), that they’re walking someplace that inspires them. You’ll hear that with Draymond and Shawn — with Shawn he’s huffing and puffing up that hill and it’s kind of nice because you’re in that moment together.”

Time to Walk isn’t raw, exactly. It is an Apple production, after all. The company’s certainly not tossing out found audio here. But the content does seem more off-the-cuff than many of its productions, even as it’s packaged together with a slick intro and a trio of songs at the end. But it’s a nice change of pace for those looking for something that feels a little more personal than we’re accustom to from some of the names involved.

Your own mileage will vary, depending on, among other things, your interest in the guest. Though, there’s always a chance someone you’ve never been particularly interested in — or even heard of — will offer some unique tidbit or interesting way of looking at things. That’s one of the potential upsides of having Apple doing the curating here — there’s some interesting potential for discovery. And even in the case of artists you’re familiar with, there’s good potential to discover something new.

The weekly 20 to 45-minute audio supplement won’t make the actual act of walking any less solitary — but for a little while, at least, it’s nice to feel like someone’s along for the ride.

News: Facebook will give academic researchers access to 2020 election ad targeting data

Starting next month, Facebook will open up academic access to a dataset of 1.3 million political and social issue ads, including those that ran between August 3 and November 3, 2020 — Election Day in the U.S. Facebook’s Ad Library, launched in 2019, offers a searchable database of all ads running on Facebook and Instagram.

Starting next month, Facebook will open up academic access to a dataset of 1.3 million political and social issue ads, including those that ran between August 3 and November 3, 2020 — Election Day in the U.S.

Facebook’s Ad Library, launched in 2019, offers a searchable database of all ads running on Facebook and Instagram. Implemented after the 2016 Russian election interference fiasco, the database allows researchers and reporters to drill down into ads by topic, company and candidate, displaying data about when an ad ran, who saw it and how much it cost.

Facebook says the decision to offer a deeper look into ads on the platform comes after feedback from the research community, which specifically requested more information about targeting. Facebook’s extremely granular ad targeting tools are of particular interest to researchers, who will soon have access to why certain people saw ads, including data on location and interest.

“We recognize that understanding the online political advertising landscape is key to protecting elections, and we know we can’t do it alone,” Facebook Product Manager Sarah Clark Schiff wrote in the announcement.

The company’s ad targeting systems have plunged the company into hot water in the past. In 2016, Facebook disabled a targeting option for “ethnic affinity” in credit, housing and employment-related ad categories following reporting on how those tools could be abused for illegal discrimination. In 2018, the company removed 5,000 additional ad targeting options due to similar potential for discriminatory advertising practices. And the extent to which the Trump campaign sailed into the White House on the strength of its micro-targeting Facebook ad operations is still a matter of debate.

Regardless of how you feel about the tools themselves, Facebook’s public-facing ad library has been invaluable tool for reporters, providing both issue-specific deep dives and an easy at-a-glance view of political spending by party, race and candidate. The new targeting data won’t live on the public Ad Library but will instead be limited to the Facebook Open Research & Transparency platform, which is only accessible by university-linked researchers.

News: Qualtrics raises IPO pricing ahead of debut

This morning, Qualtrics, a software company that tracks customer and employee sentiment, filed a new S-1 document. The new filing raises Qualtrics’ expected IPO price range, providing the Utah-based unicorn with a higher potential valuation in its impending debut. Qualtrics previously sold to SAP for $8 billion while on the path to going public; after

This morning, Qualtrics, a software company that tracks customer and employee sentiment, filed a new S-1 document. The new filing raises Qualtrics’ expected IPO price range, providing the Utah-based unicorn with a higher potential valuation in its impending debut.

Qualtrics previously sold to SAP for $8 billion while on the path to going public; after a time inside the larger software company, Qualtrics announced it would spin out as its own public company. TechCrunch previously explored the company’s initial IPO filing and its first IPO pricing interval.

At the time, we described it as just that: Qualtrics’ first IPO price range. We expected the company to raise its targets. Why? At its initial $22 to $26 per-share price range, it simply felt undervalued compared to current-market analogs and benchmarks.

Let’s talk about its new price range.

Pricing

Qualtrics is a SaaS company that is growing at a moderate clip and is nearly break-even if you remove the cost of share-based compensation. And at a run rate of around $800 million in its most recent quarter, it’s a large firm.

So it’s not just another fast-growing SaaS firm that’s crested $100 million in ARR that is still running stiff deficits, it’s a different beast. That makes the effort to triangulate its valuation all the more fun.

At its new interval and with some minor share-count tweaks detailed in its new filing, Qualtrics will raise as much as $1.68 billion in its debut, a figure that is exclusive of some transactions associated with the IPO.

With its new $27 to $29 per-share IPO price range, Qualtrics is shooting a little bit higher than before. But before we get too sure that the company is being conservative, let’s get some new valuation numbers:

News: Chamath Palihapitiya’s SPAC for Sunlight Financial is another sign of a renewables boom

Former Facebook employee and current enfant terrible of high finance Chamath Palihapitiya is making news again with a $1.3 billion twofer SPAC and PIPE deal into the solar energy financing company, Sunlight Financial. Sunlight Financial is essentially a lending company that gives solar installers a way to provide loans to homeowners to finance solar power

Former Facebook employee and current enfant terrible of high finance Chamath Palihapitiya is making news again with a $1.3 billion twofer SPAC and PIPE deal into the solar energy financing company, Sunlight Financial.

Sunlight Financial is essentially a lending company that gives solar installers a way to provide loans to homeowners to finance solar power and battery installations and other home improvement projects.

While it may be another indication of the Roaring ’20s come back to haunt global financial markets in the lead-up to a catastrophic meltdown of the global financial system, there’s at least some method to the madness with Sunlight.

That’s because there’s a lot of tailwinds behind a business that’s lending money to provide better access to solar power, energy storage and energy efficiency upgrades.

The investment, alongside Coatue, Franklin Templeton and BlackRock, will value the lender at $1.3 billion. A healthy figure, but one that’s not astronomical, especially given the $705 million in financing that Sunlight Financial has raised over its history, according to Crunchbase.

As Alex Wilhelm noted earlier today, Sunlight Financial would have likely tapped public markets sooner or later, given a pretty solid financial performance — even during the pandemic:

Looking at the numbers, it’s somewhat clear that the company could have gone public in a year or two; another year’s growth, and it would have had enough revenue to pursue a traditional debut. Via this SPAC-led deal it will get out sooner and have more cash while it scales. Perhaps that is the value of the SPAC here for Sunlight.

Sunlight also has the benefit of being a publicly traded renewable energy play at a time when those companies are in short supply and high demand from institutional investors.

Over the course of 2020, big money moved to find ways to support businesses that can help mitigate the effects of climate change or slow the rapidly warming temperatures on the planet.

“Industry commitments to mitigate climate change risk is providing investors with visibility that there is momentum among decision-makers to drive change,” said Richard Manley, the managing director and head of sustainable investing at CPP Investments, in an interview last year. “There’s an appreciation within the public markets that the exciting transition solutions either within core operating subsidiaries or investments in the VC arms of corporate companies haven’t provided public equity investors the really focused opportunities they’ve wanted.”

With the launch of Palihapitiya’s latest SPAC, that trend seems set to continue in 2021. As Rob Day, a longtime investor in climate tech wrote in a direct message late last year:

“[The] current wave [of SPACs] is because over the past 24 months the institutional investor universe has come fully into believing that climate solutions are going to be a major growth area in the 2020s and beyond, but they weren’t seeing options available to them for investing into,” according to Day.

“The available publicly traded ‘green’ companies were already getting really bought up, and the private equity options were underwhelming as well (smallish in the case of VC, low returns in the case of large-format projects). Throw in a Robinhood market of retail investors with a lot of enthusiasm for EVs and such, and you have a nice recipe for this to happen.”

News: Twitter’s Birdwatch fights misinformation with community notes

Twitter is launching what it calls “a community-based approach to misinformation.” The Birdwatch project first came to light last fall thanks to product sleuth Jane Manchun Wong. Now Twitter has launched a pilot version via the Birdwatch website. The goal, as explained in a blog post by Twitter’s Vice President of Product Keith Coleman, is

Twitter is launching what it calls “a community-based approach to misinformation.”

The Birdwatch project first came to light last fall thanks to product sleuth Jane Manchun Wong. Now Twitter has launched a pilot version via the Birdwatch website.

The goal, as explained in a blog post by Twitter’s Vice President of Product Keith Coleman, is to expand beyond the labels that the company already applies to controversial or potentially misleading tweets, which he suggested are limited to “circumstances where something breaks our rules or receives widespread public attention.”

Coleman wrote that the Birdwatch approach will “broaden the range of voices that are part of tackling this problem.” That has brings a broader range of perspectives to these issues and goes beyond the simple question of, “Is this tweet true or not?” It may also take some of the heat off Twitter for individual content moderation decisions.

Users can sign up on the Birdwatch site to flag tweets that they find misleading, add context via notes and rate the notes written by other contributors, based on whether they’re helpful or not. These notes will only be visible on the Birdwatch site for now, but it sounds like the company’s goal is to incorporate them to the main Twitter experience.

“We believe this approach has the potential to respond quickly when misleading information spreads, adding context that people trust and find valuable,” Coleman said. “Eventually we aim to make notes visible directly on Tweets for the global Twitter audience, when there is consensus from a broad and diverse set of contributors.”

Given the potential for plenty of argument and back-and-froth on contentious tweets, it remains to be seen how Twitter will present these notes in a way that isn’t confusing or overwhelming, or how it can avoid weighing in on some of these arguments. The company said Birdwatch will use rank content based on algorithmic “reputation and consensus systems,” with the code shared publicly. (All notes contributed to Birdwatch will also be available for download.) You read more about the initial ranking system here.

“We know there are a number of challenges toward building a community-driven system like this — from making it resistant to manipulation attempts to ensuring it isn’t dominated by a simple majority or biased based on its distribution of contributors,” Coleman said. “We’ll be focused on these things throughout the pilot.”

News: Hear leading voices discuss workplace organizing in tech at TC Sessions: Justice on March 3

In a year defined by economic and civil unrest, it should come as little surprise that workplace organizing has been on the upswing. The COVID-19 pandemic in particular (coupled with the ever-present effects of late capitalism) has brought long-standing questions of employment stability and safety to the forefront of many. Of course, much of this

In a year defined by economic and civil unrest, it should come as little surprise that workplace organizing has been on the upswing. The COVID-19 pandemic in particular (coupled with the ever-present effects of late capitalism) has brought long-standing questions of employment stability and safety to the forefront of many.

Of course, much of this dates to well before the pandemic was in full swing. In February, we noted that both scooter startup Spin and food delivery service Instacart voted to unionize. That same month, Kickstarter became one of the most prominent tech companies to form a union, with online code collaboration tool Glitch following suit in March.

Work place organizing is a broad and expansive topic in the world of technology. It’s a concept that is beginning to take hold in a diverse array of workplaces, ranging from contractors and factory workers at places like Amazon to salaried office jobs.

The subject was a no-brainer for this year’s TC Sessions: Justice on March 3, and we’ve pulled together some great speakers to discuss their experiences, while giving some guidance to those interested in potentially organizing at their own workplaces.

Clarissa Redwine is a fellow at NYU’s Engelberg Center on Innovation Law & Policy. A former senior design and technology outreach lead at Kickstarter, she now hosts Kickstarter Union Oral History, a series of interviews with union organizers. Grace Reckers is the lead Northeastern union organizer for the OPEIU (Office and Professional Employees International Union). Parul Koul, who joined Google as a software engineer in 2019, is the executive chair of the Alphabet Workers.

Learn and discuss workplace organizing at TC Sessions: Justice on March 3. Grab a ticket to join the conversation!

 

 

News: Google claims almost no change in ad revenue from targeting proposals in its Privacy Sandbox — but privacy upside less clear

As Google’s Privacy Sandbox remains under scrutiny over competition concerns, the tech giant has released an update claiming experimental ad-targeting techniques it’s developing as part of the plan to depreciate support for third party cookies on its Chrome browser show results that are “nearly as effective as cookie-based approaches”. Google has been working on a

As Google’s Privacy Sandbox remains under scrutiny over competition concerns, the tech giant has released an update claiming experimental ad-targeting techniques it’s developing as part of the plan to depreciate support for third party cookies on its Chrome browser show results that are “nearly as effective as cookie-based approaches”.

Google has been working on a technique — called Federated Learning of Cohorts (FLoC) — to target ads based on clustering users into groups with similar interests, which it claims is superior from a privacy perspective vs the current (dysfunctional) ‘norm’ of targeting individuals based on third parties tracking everything they do online.

It wants FLoCs to enable interest-based advertising to continue after it ends support for third party trackers.

However the proposal has alarmed advertisers who argue it’s anti-competitive. And earlier this month the UK’s Competition and Markets Authority (CMA) opened an investigation of the Privacy Sandbox proposal after complaints from a coalition of digital marketing companies and others from newspapers and technology companies alleging Google is abusing a dominant position by depreciating support for third party trackers.

On the privacy front Google’s self-styled Privacy Sandbox isn’t exactly attracting effusive plaudits, either.

The Electronic Frontier Foundation has, for example, dubbed FLoCs “the opposite of privacy-preserving technology” — warning in 2019 that the approach is akin to a “behavioral credit score”. It said then that the proposals risk sustaining discrimination against vulnerable groups of people, whose online activity would be pattern-matched with others without their say-so; and could also lead to leaking sensitive info about them to third parties — without offering web users any way to escape being put in a ‘interest based’ ad targeting bucket. 

With objections piling up from on sides of the aisle (advertiser vs user) — and now active regulatory scrutiny of the competition issue — Google has its work cut out to sell its preferred replacement for tracking cookies to all the relevant stakeholders. Though advertisers (and competition regulators) currently seem front of mind for the tech giant.

In an update about the Privacy Sandbox proposals today, Google appears to be hoping to alleviate advertisers’ concerns that the demise of tracking cookies will degrade their ability to lucratively target Internet users — writing that tests of the FLoC technology suggest advertisers will continue to see “at least 95% of the conversions per dollar spent when compared to cookie-based advertising”.

It’s not clear how much test data was involved in Google generating that percentage, however. (We asked and Google did not have an immediate response.) So there’s zero meat on the bone of the ‘95% minimum’ claim.

Its spokesman did note that it will be opening up public testing in March — and expects advertisers to join in kicking FLoC’s tires then. So there’s clearly going to be more detail to come on this front.

“Chrome intends to make FLoC-based cohorts available for public testing through origin trials with its next release in March and we expect to begin testing FLoC-based cohorts with advertisers in Google Ads in Q2,” writes Chetna Bindra, group product manager for user trust and privacy in the blog post, adding: “If you’d like to get a head start, you can run your own simulations (as we did) based on the principles outlined in this FLoC whitepaper.”

It’s unsurprisingly that Google continues to emphasize the relative openness with which it’s developing the Privacy Sandbox proposals — as that may help it fight antitrust accusations. But it’s also noteworthy being as the adtech industry, which has been fighting to block/delay its depreciation of third party cookies, is busy spinning up its own contenders to replace trackers — and developing those competing proposals typically with a lot less transparency than Google.

Nonetheless, Google seems a whole more comfortable quantifying FLoC’s potential impact on ad revenue (tiny, per its latest claim) vs articulating what privacy gains Internet users might expect from the proposed shift from individual tracking to run behavioral ads to being stuck in labelled buckets to run behavioral ads.

Google’s blog post has a few fuzzy mentions — like “viable privacy-first alternatives” and ‘hiding individuals “in the crowd”’ — but there’s no metric or data offered on how much privacy users stand to gain if its preferred post-cookie future comes to pass.

Test results it published in October also focused on seeking to demonstrate to advertisers that FLoCs can deliver on other relevant ad metrics. Funnily enough, Internet users’ privacy — and what happens when degrees of privacy are lost — is rather harder for Google’s computer scientists to measure.

“advertisers can expect to see at least 95% of the conversions per dollar spent when compared to cookie-based advertising”. What’s the per cent of privacy improvement? #GDPR #DigitalServicesAct #ePrivacy

— Lukasz Olejnik (@lukOlejnik) January 25, 2021

“The idea is to make it so that no one can reconstruct your cross-site browsing history,” said the company’s spokesman when we asked about how the proposal will improve users’ privacy standing.

“We’re trying to address non-transparent forms of tracking, across websites, with privacy-safe mechanisms for consumers, and make it so it can’t happen. And to do so while still enabling opportunity and fair compensation for publishers and advertisers. So it’s really not even a matter of trying to approximate a kind of privacy: We’re trying to address a root critical concern of users, full stop,” he added.

FLoCs are just one part of Google’s Privacy Sandbox proposals. The company is working on a slew of aligned efforts to simultaneously replace various other key components of the adtech ecosystem. And it gives an overview of some of these in the blog post — covering proposals for (post-cookie) conversation measurement; ad-fraud prevention; and anti-fingerprinting.

Here it dwells briefly on retargeting/remarketing — referring to a new Chrome proposal (called Fledge) that it says it’s considering for a ‘trusted server’ model “specifically designed to store information about a campaign’s bids and budgets”. This will also be made available for advertisers to test later this year, Google adds.

“Over the last year, several members of the ad tech community have offered input for how this might work, including proposals from Criteo, NextRoll, Magnite and RTB House. Chrome has published a new proposal called FLEDGE that expands on a previous Chrome proposal (called TURTLEDOVE) and takes into account the industry feedback they’ve heard, including the idea of using a ‘trusted server’ — as defined by compliance with certain principles and policies — that’s specifically designed to store information about a campaign’s bids and budgets. Chrome intends to make FLEDGE available for testing through origin trials later this year with the opportunity for ad tech companies to try using the API under a “bring your own server” model,” it writes.

“Technology advancements such as FLoC, along with similar promising efforts in areas like measurement, fraud protection and anti-fingerprinting, are the future of web advertising — and the Privacy Sandbox will power our web products in a post-third-party cookie world,” it adds.

Discussing Fledge’s potential, Dr Lukasz Olejnik, an independent researcher and consultant, said there’s still a lot of uncertainty over how it might impact user privacy. “The Fledge experiment looks potentially interesting but it mixes in various proposals in this test. Such a mix would need to get a specific privacy assessment as the offered privacy qualities might be different than original claimed. Furthermore, the current tests will have many privacy precautions intended for the future, turned off initially. It will be tricky to gradually turn them on,” he told TechCrunch.

News: Calling Swedish VCs: Be featured in The Great TechCrunch Survey of European VC

TechCrunch is embarking on a major project to survey the venture capital investors of Europe, and their cities. Our survey of VCs in Stockholm, and Sweden generally, will capture how the country is faring, and what changes are being wrought amongst investors by the coronavirus pandemic. The deadline is the end of this week. We’d

TechCrunch is embarking on a major project to survey the venture capital investors of Europe, and their cities.

Our survey of VCs in Stockholm, and Sweden generally, will capture how the country is faring, and what changes are being wrought amongst investors by the coronavirus pandemic.

The deadline is the end of this week.

We’d like to know how Sweden’s startup scene is evolving, how the tech sector is being impacted by COVID-19, and, generally, how your thinking will evolve from here.

Our survey will only be about investors, and only the contributions of VC investors will be included. More than one partner is welcome to fill out the survey. (Please note, if you have filled the survey out already, there is no need to do it again).

The shortlist of questions will require only brief responses, but the more you can add, the better.

You can fill out the survey here.

Obviously, investors who contribute will be featured in the final surveys, with links to their companies and profiles.

What kinds of things do we want to know? Questions include: Which trends are you most excited by? What startup do you wish someone would create? Where are the overlooked opportunities? What are you looking for in your next investment, in general? How is your local ecosystem going? And how has COVID-19 impacted your investment strategy?

This survey is part of a broader series of surveys we’re doing to help founders find the right investors.

https://techcrunch.com/extra-crunch/investor-surveys/

For example, here is the recent survey of London.

You are not in Sweden, but would like to take part? That’s fine! Any European VC investor can STILL fill out the survey, as we probably will be putting a call out to your country next anyway! And we will use the data for future surveys on vertical topics.

The survey is covering almost every country on in the Union for the Mediterranean, so just look for your country and city on the survey and please participate (if you’re a venture capital investor).

Thank you for participating. If you have questions you can email mike@techcrunch.com

(Please note: Filling out the survey is not a guarantee of inclusion in the final published piece).

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