Daily Archives: March 24, 2021

News: Facebook caught Chinese hackers using fake personas to target Uyghurs abroad

Facebook on Wednesday announced new actions to disrupt a network of China-based hackers leveraging the platform to compromise targets in the Uyghur community. The group, known to security researchers as “Earth Empusa,” “Evil Eye” or “Poison Carp” targeted around 500 people on Facebook, including individuals living abroad in the United States, Turkey, Syria, Australia and

Facebook on Wednesday announced new actions to disrupt a network of China-based hackers leveraging the platform to compromise targets in the Uyghur community.

The group, known to security researchers as “Earth Empusa,” “Evil Eye” or “Poison Carp” targeted around 500 people on Facebook, including individuals living abroad in the United States, Turkey, Syria, Australia and Canada. Through fake accounts on Facebook, the hackers posed as activists, journalists and other sympathetic figures in order to send their targets to compromised websites beyond Facebook.

Facebook’s security and cyberespionage teams began seeing the activity in 2020 and opted to disclose the threat publicly to maximize the impact on the hacking group, which has proven sensitive to public disclosures in the past.

Though Facebook says social engineering efforts on the platform are “a piece of the puzzle,” most of the hacking group’s efforts take place elsewhere online. They focus on attempts to gain access to targets’ devices with watering hole attacks and lookalike domains, including a fake Android app store offering prayer apps and Uyghur-themed keyboard downloads.

When downloaded, those fake apps infected devices using two strains of Android trojan malware, ActionSpy and PluginPhantom. On iOS devices, the hackers leveraged malware known as Insomnia.

While the hackers targeted a small number of users relative to what the company sees in disinformation operations, Facebook stressed that a small, well-chosen group of targets can result in huge impacts. “You can imagine surveillance, you can imagine a range of secondary consequences” Facebook Head of Security Policy Nathaniel Gleicher said.

The Uyghurs are a predominantly Muslim ethnic minority in China that continues to face brutal repression from the Chinese government, including being forced into labor camps in the country’s Xinjiang province.

Facebook declined to link what it observed to the Chinese government, saying that it defers to the broader security community to make those determinations when it lacks the technical indicators to do so itself. Researchers believe that adjacent hacking campaigns are Beijing’s efforts to extend its surveillance of communities it already subjugates within China’s bounds.

News: Staying ahead of the curve on Google’s Core Web Vitals

While many view Google’s Core Web Vitals as a big hoop to jump through to please the search powers that be, others are seeing — and seizing — the opportunities that come along with this change.

Amir Glatt
Contributor

Amir Glatt is the CTO and co-founder of Duda, a leading white-label web design platform for agencies, SaaS platforms and other web professionals that serve small businesses. Prior to co-founding Duda, Amir worked in SAP, the world’s largest maker of business applications.

One year.

That’s how long Google gave developers to start implementing required changes to improve user experience. In early May 2020, Google published a modest post on one of its developer blogs introducing Core Web Vitals — a set of metrics that will result in major changes to the way websites are ranked by the search engine. In May 2021, Google will officially add those Core Web Vitals to the various other “page experience” signals it analyzes when deciding how to rank websites.

The quest to improve a website’s position in search results has spawned hundreds (if not thousands) of how-to articles over the years. Businesses that are scared about taking a hit to SEO from Google’s new metrics have been pushing developers to optimize company websites. At the same time, developers have been frustrated because there’s a lot that goes into user experience that isn’t reflected in the Core Web Vitals. A lot of details have to be juggled.

Aside from improved SEO, small business websites optimizing for the new metrics will reap the rewards of an improved user experience for their site visitors.

But what about the startups, tech companies and small business owners who handle their own websites in-house? What about the agencies and enterprise platforms that manage or host hundreds or even thousands of websites for clients? While many are looking at the Core Web Vitals as a big hoop to jump through to please the search powers that be, others are seeing — and seizing — the opportunities that come along with this change.

Improving user experience will be rewarded

Small businesses wondering “What’s in it for me?” should recognize that if all other things are equal, optimizing for the Core Web Vitals is going to be a significant tiebreaker between websites. If a company’s site is ranking really well with these rigorous metrics, it will have an edge against competitors in searches when content and ranking are otherwise comparable.

Aside from improved SEO, small business websites optimizing for the new metrics will reap the rewards of an improved user experience for their site visitors. Internet users frequently complain about long wait times as pages are loading, or problems with an entire page shifting just as the user goes to click a specific button — which results in them clicking the wrong button and causing further delays. For online retail websites, a poor user experience leads to lost revenue as users abandon shopping carts and never return to a site. Once the Core Web Vitals go into effect, companies that have made the efforts to provide smooth and speedy performance for visitors will win out against competitors that retain sluggish designs.

Sparking overdue conversations

News: Rec Room raises at $1.25B valuation from Sequoia and Index as VCs push to find another Roblox

Investor FOMO following Roblox’s blockbuster public debut is pushing venture capitalists who missed out on that gaming giant to invest in competing platforms. Today, Rec Room announced it has raised $100 million from Sequoia and Index, with participation from Madrona Venture Group. The deal is a huge influx of capital for Rec Room, which had

Investor FOMO following Roblox’s blockbuster public debut is pushing venture capitalists who missed out on that gaming giant to invest in competing platforms.

Today, Rec Room announced it has raised $100 million from Sequoia and Index, with participation from Madrona Venture Group. The deal is a huge influx of capital for Rec Room, which had raised less than $50 million before this round, including a $20 million Series C that closed in December. In 2019, we reported that the company had raised its Series B at a $126 million valuation, this latest deal values the company at $1.25 billion, showcasing how investor sentiment for the gaming space has shifted in the wake of Roblox’s monster growth.

Rec Room launched as a virtual reality-only platform, but as headset sales creeped along slowly, the company embraced traditional game consoles, PC and mobile to expand its reach.

In a press release accompanying today’s funding announcement, Rec Room detailed it has surpassed 15 million “lifetime users” and had shown 566% year-over-year revenue growth. In December, CEO Nick Fajt told TechCrunch that the company has tripled its player base in the past 12 months.

The company has been following in Roblox’s footsteps in many ways as it build out its creator tools and seeks to build out an on-platform economy for game creators. The company says that two million players have created content on the platform and that Rec Room is on track to pay out more than $1 million to them this year.

News: Competition challenge to Facebook’s ‘superprofiling’ of users sparks referral to Europe’s top court

A German court that’s considering Facebook’s appeal against a pioneering pro-privacy order by the country’s competition authority to stop combining user data without consent has said it will refer questions to Europe’s top court. In a press release today the Düsseldorf court writes [translated by Google]: “…the Senate has come to the conclusion that a

A German court that’s considering Facebook’s appeal against a pioneering pro-privacy order by the country’s competition authority to stop combining user data without consent has said it will refer questions to Europe’s top court.

In a press release today the Düsseldorf court writes [translated by Google]: “…the Senate has come to the conclusion that a decision on the Facebook complaints can only be made after referring to the Court of Justice of the European Union (ECJ).

“The question of whether Facebook is abusing its dominant position as a provider on the German market for social networks because it collects and uses the data of its users in violation of the GDPR can not be decided without referring to the ECJ. Because the ECJ is responsible for the interpretation of European law.”

The Bundeskartellamt (Federal Cartel Office, FCO)’s ‘exploitative abuse’ case links Facebook’s ability to gather data on users of its products from across the web, via third party sites (where it deploys plug-ins and tracking pixels), and across its own suite of products (Facebook, Instagram, WhatsApp, Oculus), to its market power — asserting this data-gathering is not legal under EU privacy law as users are not offered a choice.

The associated competition contention, therefore, is that inappropriate contractual terms allow Facebook to build a unique database for each individual user and unfairly gain market power over rivals who don’t have such broad and deep reach into user’s personal data.

The FOC’s case against Facebook is seen as highly innovative as it combines the (usually) separate (and even conflicting) tracks of competition and privacy law — offering the tantalizing prospect, were the order to actually get enforced, of a structural separation of Facebook’s business empire without having to order a break up of its various business units up.

However enforcement at this point — some five years after the FCO started investigating Facebook’s data practices in March 2016 — is still a big if.

Soon after the FCO’s February 2019 order to stop combining user data, Facebook succeeded in blocking the order via a court appeal in August 2019.

But then last summer Germany’s federal court unblocked the ‘superprofiling’ case — reviving the FCO’s challenge to the tech giant’s data-harvesting-by-default.

The latest development means another long wait to see whether competition law innovation can achieve what the EU’s privacy regulators have so far failed to do — with multiple GDPR challenges against Facebook still sitting undecided on the desk of the Irish Data Protection Commission.

Albeit, it’s fair to say that neither route looks capable of ‘moving fast and breaking’ platform power at this point.

In its opinion the Düsseldorf court does appear to raise questions over the level of Facebook’s data collection, suggesting the company could avoid antitrust concerns by offering users a choice to base profiling on only the data they upload themselves rather than on a wider range of data sources, and querying its use of Instagram and Oculus data.

But it also found fault with the FCO’s approach — saying Facebook’s US and Irish business entities were not granted a fair hearing before the order against its German sister company was issued, among other procedural quibbles.

Referrals to the EU’s Court of Justice can take years to return a final interpretation.

In this case the ECJ will likely be asked to consider whether the FCO has exceeded its remit, although the exact questions being referred by the court have not been confirmed — with a written reference set to be issued in the next few weeks, per its press release.

In a statement responding to the court’s announcement today, a Facebook spokesperson said:

“Today, the Düsseldorf Court has expressed doubts as to the legality of the Bundeskartellamt’s order and decided to refer questions to the Court of Justice of the European Union. We believe that the Bundeskartellamt’s order also violates European law.”

News: Announcing the TC Early Stage Pitch-Off startups

Next week, TechCrunch is hosting Early Stage — a virtual bootcamp for founders to gain the critical insight needed to launch and scale their companies. Day one is all about how-to’s. What about day two? April 2 is the inaugural TC Early Stage Pitch-Off featuring 10 exceptional early-stage startups. The Pitch-Off is split into two

Next week, TechCrunch is hosting Early Stage — a virtual bootcamp for founders to gain the critical insight needed to launch and scale their companies. Day one is all about how-to’s. What about day two? April 2 is the inaugural TC Early Stage Pitch-Off featuring 10 exceptional early-stage startups.

The Pitch-Off is split into two segments. For the semifinals, each company will pitch for five minutes followed by a Q&A with our expert panel of judges. Check them out here, you might see some names you recognize. Three startups will make it into the final round — same pitch but a new batch of judges with a deeper Q&A.

We know you are excited to see who has made it. Tune in on April 2 to watch TC’s first Early Stage Pitch-Off event. Without further ado:

Session 1: 9:00 a.m. – 9:50 a.m. PDT

Clocr (Austin, Texas) — Clocr provides an all-in-one digital legacy planning and disbursement platform backed by patent-pending security.

Crispify (Tel Aviv, Israel) — Crispify provides air-quality monitoring and management solutions for mobility-as-a-service fleets like Uber, Avis and Zipcar.

Fitted (Philadelphia, Pennsylvania) — Fitted is the ultimate closet management service. [Fitted] combines a subscription laundry service with integrated technology that assists urban dwellers discover, clean and donate their clothes.

hi.health (Vienna, Austria) — hi.health provides zero friction financing for out-of-pocket health expenses, currently in Germany. The offering enables direct reimbursement solutions for pharmacies, medical product and service providers — where previously the insured person had to spend their own money and then file for reimbursement.

Pivot Market (Miami, Florida) — Pivot Market is a B2B marketplace where consumer brands gain immediate distribution in physical stores. Brand rent spaces inside B&M stores and stores earn money by managing those spaces on behalf of the brands.

Session 2: 10:00 a.m. – 10:45 a.m. PDT

Soon (Salt Lake City, Utah) — Soon’s patent-pending cash flow algorithm automates investing from start to finish, with the best combination of simplicity and wealth generation in a personal finance solution. Soon functions across all assets from your checking account to your savings and more.

Nalagenetics (Singapore City, Singapore) — Nalagenetics designs and develops preemptive genetic tests for developing markets. By combining genetic, clinical and behavioral data from patients, Nalagenetics builds localized risk-prediction models for minorities, starting with Asian populations

The Last Gameboard (Boulder, Colorado) — Gameboard is a gaming device and platform that unleashes the power of digital media with tactile movements of physical game pieces, creating a new genre of phygital gaming for tabletop fans.

Attention Quotient  by Mindwell Labs (New York, New York) — Mindwell Labs is a precision healthcare technology startup. Its first consumer product is AQ™ — the first personalized mental fitness tracking and training app that uses our unique biomarkers to measure and improve attention.

FLX Solutions (Bethlehem, Pennsylvania) — FLX Solutions is pioneering functional applications for robotics with highly intelligent robots that are miniaturized to operate in spaces that humans and traditional robots cannot easily access. Our first product, The FLX BOT, is a patented 1″ diameter snake-like robot that is able to fit into these spaces to inspect, map, and then autonomously perform any required maintenance.

Finals11:00 a.m. – 11:30 a.m. PDT

 

News: Dear Sophie: When can I finally come to Silicon Valley?

I was originally looking at opening an office in Silicon Valley to be close to software engineers and investors, but then… COVID-19 🙂 A lot has changed over the last year – can I still come?

Sophie Alcorn
Contributor

Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.

Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.


Dear Sophie:

I’m a startup founder looking to expand in the U.S. I was originally looking at opening an office in Silicon Valley to be close to software engineers and investors, but then… COVID-19 🙂

A lot has changed over the last year – can I still come?

— Hopeful in Hungary

Dear Hopeful:

How and where work is getting done in Silicon Valley (as well as in much of the world)  shifted during the COVID-19 pandemic. That said, yes, it can still make business sense for many to join the Silicon Valley ecosystem.

According to a recent report from PitchBook, Silicon Valley will continue to be the center for VC investment and high-tech talent, even though several large tech companies relocated out of Silicon Valley and implemented full-time work-from-home policies — and many predicted that “the Bay Area tech scene as we know it would be lost, and VC would find a new home.”

Clearly, while the pandemic’s impact on the venture industry will be felt in years to come, VC will continue to be centered in Silicon Valley. In a recent episode of my podcast, I discussed work trends and how to use immigration to support company priorities as well as attract and retain talent in the United States.

The PitchBook report points out that Silicon Valley “has kept a tight hold on fundraising in the U.S., closing on commitments exceeding $151 billion over the past five years, more than the rest of the U.S. ecosystems combined. LPs have continued to funnel capital to area VCs because of the region’s track record of success, which includes 17 of the 22 U.S. companies to ever receive a private valuation of $10 billion or more.”

A composite image of immigration law attorney Sophie Alcorn in front of a background with a TechCrunch logo.

Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window)

So while VCs will likely return to the old ways of networking and funding post-pandemic, we’ll see a hybrid of online and in-person meetings because there are so many benefits to in-person networking and exchanging ideas.

News: Slack’s new DM feature Connect is, thankfully, opt-in

I’m sure I’m not the only one who had a minor meltdown on seeing that Slack had finally added the Connect feature it announced in October. I’m a firm believer that there are already entirely too many ways to get ahold of me. On top of the countless inbox pitches I field on a daily

I’m sure I’m not the only one who had a minor meltdown on seeing that Slack had finally added the Connect feature it announced in October. I’m a firm believer that there are already entirely too many ways to get ahold of me. On top of the countless inbox pitches I field on a daily basis, Twitter, LinkedIn and Facebook have contributed to the barrage — and Clubhouse seems to be elbowing its way in.

Surely not Slack, too? That bastion of workplace productivity and Simpsons gifs has (mostly) been a safe haven. Today, the company added Connect, promising, “Employees at more than 74,000 organizations and counting can now securely direct message anyone – inside or outside their company.”

A convenient new resource for open communications? Or a Pacific Rim-style breach waiting to send a never-ending barrage of horrors into your workplace chat? Obviously that depends on a lot of things — including who you are and what you do. We have, however, reached out to Slack to get clarification on a few things, including just how open workplaces across the world will be to the aforementioned 74,000 organizations.

A spokesperson for the company told TechCrunch:

[A]n organization’s IT admins can control who has access to this feature, disable this feature for their teams, and monitor all external connections, including Slack Connect DMs. Once this feature is enabled, DMs can be initiated without the need for additional admin approval. If an organization has disabled Slack Connect DMs, their users cannot send or accept Slack Connect DM invitations. If an organization has limited the ability to accept Slack Connect DMs to those coming from verified organizations, their users will not be able to accept Slack Connect DMs from non-verified organizations. This will also help in preventing spam and phishing attempts.

In other words, the feature is opt-in, not opt-out. If the IT admins don’t turn the feature on, their users won’t be able to either send or receive DMs through the new system. One of the upshots of the feature is third-party app integration through services like Calendly (for scheduling) and DocuSign (for, erm, document signing).

 

News: Dual-event ticket prices to TC Early Stage 2021 increase this Friday

We’ve all heard the adage, less is more. But when it comes to learning all the complex ins and outs of building and launching a successful startup, more is definitely the way to go. Enter not one, but two bootcamp experiences for the early-stage crowd: TC Early Stage: Operations and Fundraising on April 1-2 and TC

We’ve all heard the adage, less is more. But when it comes to learning all the complex ins and outs of building and launching a successful startup, more is definitely the way to go. Enter not one, but two bootcamp experiences for the early-stage crowd: TC Early Stage: Operations and Fundraising on April 1-2 and TC Early Stage: Marketing and Fundraising on July 8-9.

Here’s another relevant adage: A penny saved is a penny earned. Kill two adages with one click, buy a dual-event pass at the early-bird price and you’ll save $100 or more. More knowledge for less money — what’s not to love?

Big, fat caveat: Procrastinate at your own peril. Prices on dual-event passes go up this Friday, March 26 at precisely 11:59 pm (PST).

Both TC Early Stage events focus on the essential skills every founder needs to succeed, and you’ll learn from leading industry experts. Each bootcamp features a discrete set of speakers, range of topics and presentations, but they’re all dedicated to helping founders in the early stages of the startup journey build a solid foundation.

We have a tremendously talented group of people ready to share their expertise and experience with you. Check out the TC Early Stage agenda for April.

Here’s another cool commonality: Day two of each bootcamp features a TC Early Stage Pitch-Off. You’ll tune in live to watch 10 global early-stage companies pitch to a panel of top VCs. The ultimate winner will be featured on TechCrunch.com, receive an annual Extra Crunch subscription and attend TC Disrupt this September — gratis.

Contenders for the April pitch-off are ready to go, but we’ll be opening the application process for July soon, so keep checking back for your chance to bring the heat.

We’re busy building out the agenda for July’s TC Early Stage: Marketing and Fundraising, but we’re thrilled to share that Lisa Wu, a partner at Norwest —with investments like Calm, Plaid, Opendoor and Grove Collaborative — will join us to discuss how to ace a 1-hour pitch. Spoiler alert: think like a VC.

Get more and spend less is the best possible adage (okay, we made that up). But hey, saving up to $100 on a dual-event pass to TC Early Stage in April and July is just a smart way to go. Buy your pass before the deadline hits this Friday, March 26 at 11:59 pm (PST).

News: Salesforce updates includes sales info overlay for Zoom meetings

The pandemic has clearly had an impact on the way we work, and this is especially true for salespeople. Salesforce introduced a number updates to Sales Cloud this morning including Salesforce Meetings, a smart overlay for Zoom meetings that gives information and advice to the sales team as they interact with potential customers in online

The pandemic has clearly had an impact on the way we work, and this is especially true for salespeople. Salesforce introduced a number updates to Sales Cloud this morning including Salesforce Meetings, a smart overlay for Zoom meetings that gives information and advice to the sales team as they interact with potential customers in online meetings.

Bill Patterson, EVP and General Manager of CRM applications at Salesforce says that the company wanted to help sales teams manage these types of interactions better and take advantage of the fact they are digital.

“There’s a broad recognition, not just from Salesforce, but really from every sales organization that selling is forever changed, and I think that there’s been a broad understanding, and maybe a surprise in learning how effective we can be in the from anywhere kind of times, whether that’s in office or not in office or whatever,” Patterson explained.

Salesforce Meetings gives that overlay of information, whether it’s advice to slow down the pace of your speech or information about the person speaking. It can also compile action items and present a To Do list to participants at the end of each meeting to make sure that tasks don’t fall through the cracks.

This is made possible in part through the Einstein intelligence layer that is built across the entire Salesforce platform. In this case, it takes advantage of a new tool called Einstein Intelligent Insights, which the company is also exposing as a feature for developers to build their own solutions using this tool.

For sales people who might find the tool a bit too invasive, you can dial the confidence level of the information up or down on an individual basis, so that you can get a lot of information or a little depending on your needs.

For now, it works with Zoom and the company has been working closely with the Zoom development team to provide the API and SDK tooling it needs to pull something like this off, according to Patterson. He notes that plans are in the works to make it compatible with WebEx and Microsoft Teams in the future.

While the idea was in the works prior to the pandemic, COVID created a sense of urgency for this kind of feature, as well as other features announced today like Pipeline Inspection, which uses AI to analyze the sales pipeline. It searches for changes to deals over time with the goal of finding the ones that could benefit most from coaching or managerial support to get them over the finish line.

Brent Leary, founder and principal analyst at CRM Essentials says that this ability to capture information in online meetings is changing the way we think about CRM.

“The thing the caught my attention is how tightly integrated video meetings/collaboration is now into sales process. This is really compelling because meeting interactions that may not find their way into the CRM system are now automatically captured,” Leary told me.

Salesforce Meetings is available today, while Pipeline Inspection is expected to be available this summer.

News: A look at 4 IPO updates and 2 late-stage funding rounds

Covering YC Demo Day yesterday was good fun, but I missed a few items while watching several hundred startup pitches. A few years ago, these stories might have been the biggest news of the week. But with the venture capital market red-lining its engines while public markets remain sympathetic to growing, unprofitable companies, there’s lots

Covering YC Demo Day yesterday was good fun, but I missed a few items while watching several hundred startup pitches. A few years ago, these stories might have been the biggest news of the week.

But with the venture capital market red-lining its engines while public markets remain sympathetic to growing, unprofitable companies, there’s lots going on. So, as a follow-up to our first late-stage roundup that we published yesterday morning, here’s another.


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


This time we’re discussing IPO news from DigitalOcean (context), Kaltura (context), Robinhood (context), and Zymergen, and big rounds for Lattice and goPuff. That’s a lot to chew on, but I’ll be brief and to the point.

We’ll commence with the IPO news and then pivot into the late-stage rounds, just in case more drops this morning while we’re typing our way through yesterday’s news. Let’s go!

IPO updates

Today’s most pressing news is that DigitalOcean, a provider of cloud services to small businesses, priced its IPO at $47 per share last night. That was right at the top of its public-offering price range of $44 to $47. Before counting shares reserved for its underwriters, DigitalOcean is worth just under $5 billion.

And the company raised a gross $775.5 million in the offering, giving DigitalOcean a massive war chest to pursue its vision. As the company has proved increasingly unprofitable on a GAAP basis in recent years, the extra cash isn’t a problem: DigitalOcean plans to reduce its aggregate debt load with some of the proceeds, which will improve its profitability.

The company won’t trade for hours, so we’re done with DigitalOcean for now. File it in your mind as a win, as the company raised $50 million last year at a $1.1 billion valuation (PitchBook data). That’s a quick 5x.

Next up from the IPO treadmill is Kaltura, which released a first guess of its market value as a public company. Targeting $14 to $16 per share in its impending debut, the video software company is worth around $2 billion at the top end of its range, not counting shares reserved for its underwriting banks or other shares tied up in vested options and recruited stock units (RSUs).

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