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News: 44.01 secures $5M to turn billions of tons of carbon dioxide to stone

Reducing global greenhouse gas emissions is an important goal, but another challenge awaits: lowering the levels of CO2 and other substances already in the atmosphere. One promising approach turns the gas into an ordinary mineral through entirely natural processes; 44.01 hopes to perform this process at scale using vast deposits of precursor materials and a

Reducing global greenhouse gas emissions is an important goal, but another challenge awaits: lowering the levels of CO2 and other substances already in the atmosphere. One promising approach turns the gas into an ordinary mineral through entirely natural processes; 44.01 hopes to perform this process at scale using vast deposits of precursor materials and a $5M seed round to get the ball rolling.

The process of mineralizing CO2 is well known among geologists and climate scientists. A naturally occurring stone called peridotite reacts with the gas and water to produce calcite, another common and harmless mineral. In fact this has occurred at enormous scales throughout history, as witnessed by large streaks of calcite piercing peridotite deposits.

Peridotite is normally found miles below sea level, but on the easternmost tip of the Arabian peninsula, specifically the northern coast of Oman, tectonic action has raised hundreds of square miles of the stuff to the surface.

Talal Hasan was working in Oman’s sovereign investment arm when he read bout the country’s coast having the largest “dead zone” in the world, a major contributor to which was CO2 emissions being absorbed by the sea and gathering there. Hasan, born into a family of environmentalists, looked into it and found that, amazingly, the problem and the solution were literally right next to each other: the country’s mountains of peridotite, which theoretically could hold billions of tons of CO2.

Around that time, in fact, the New York Times ran a photo essay about Oman’s potential miracle mineral, highlighting the research of Peter Kelemen and Jeurg Matter into its potential. As the Times’ Henry Fountain wrote at the time:

If this natural process, called carbon mineralization, could be harnessed, accelerated and applied inexpensively on a huge scale — admittedly some very big “ifs” — it could help fight climate change.

That’s broadly speaking the plan proposed by Hasan and, actually, both Kelemen and Matter, who make up the startup’s “scientific committee.” 44.01 (the molecular weight of carbon dioxide, if you were wondering) aims to accomplish mineralization economically and safely with a few novel ideas.

First is the basic process of accelerating the natural reaction of the materials. It normally occurs over years as CO2 and water vapor interact with the rock — no energy needs to be applied to make the change, since the reaction actually results in a lower energy state.

“We’re speeding it up by injecting a higher CO2 content than you would get in the atmosphere,” said Hasan. “We have to drill an engineered borehole that’s targeted for mineralization and injection.”

Diagram showing how carbon can be sequestered as a mineral.

Image Credits: 44.01

The holes would maximize surface area, and highly carbonated water would be pumped in cyclically until the drilled peridotite is saturated. Importantly, there’s no catalyst or toxic additive, it’s just fizzy water, and if some were to leak or escape, it’s just a puff of CO2, like what you get when you open a bottle of soda.

Second is achieving this without negating the entire endeavor by having giant trucks and heavy machinery pumping out new CO2 as fast as they can pump in the old stuff. To that end Hasan said the company is working hard at the logistics side to create a biodiesel-based supply line (with Wakud) to truck in the raw material and power the machines at night, while solar would offset that fuel cost at night.

It sounds like a lot to build up, but Hasan points out that a lot of this is already done by the oil industry, which as you might guess is fairly ubiquitous in the region. “It’s similar to how they drill and explore, so there’s a lot of existing infrastructure for this,” he said, “but rather than pulling the hydrocarbon out, we’re pumping it back in.” Other mineralization efforts have broken ground on the concept, so to speak, such as a basalt-injection scheme up in Iceland, so it isn’t without precedent.

Third is sourcing the CO2 itself. The atmosphere is full of it, sure, but it’s not trivial to capture and compress enough to mineralize at industrial scales. So 44.01 is partnering with Climeworks and other carbon capture companies to provide an end point for their CO2 sequestration efforts.

Plenty of companies are working on direct capture of emissions, be they at the point of emission or elsewhere, but once they have a couple million tons of CO2, it’s not obvious what to do next. “We want to facilitate carbon capture companies, so we’re building the CO2 sinks here and operating a plug and play model. They come to our site, plug in, and using power on site, we can start taking it,” said Hasan.

How it would be paid for is a bit of an open question in the exact particulars, but what’s clear is a global corporate appetite for carbon offsetting. There’s a large voluntary market for carbon credits beyond the traditional and rather outdated carbon credits. 44.01 can sell large quantities of verified carbon removal, which is a step up from temporary sequestration or capture — though the financial instruments to do so are still being worked out. (DroneSeed is another company offering a service beyond offsets that hopes to take advantage of a new generation of emissions futures and other systems. It’s an evolving and highly complex overlapping area of international regulations, taxes, and corporate policy.)

For now, however, the goal is simply to prove that the system works as expected at the scales hoped for. The seed money is nowhere near what would be needed to build the operation necessary, just a step in that direction to get the permits, studies, and equipment necessary to properly perform demonstrations.

“We tried to get like minded investors on board, people genuinely doing this for climate change,” said Hasan. “It makes things a lot easier on us when we’re measured on impact rather than financials.” (No doubt all startups hope for such understanding backers.)

Apollo Projects, a early stage investment fund from Max and Sam Altman, led the round, and Breakthrough Energy Ventures participated. (Not listed in the press release but important to note, Hasan said, were small investments from families in Oman and environmental organizations in Europe.)

Oman may be the starting point, but Hasan hinted that another location would host the first commercial operations. While he declined to be specific, one glance at a map shows that the peridotite deposits spill over the northern border of Oman and into the eastern tip of the UAE, which no doubt is also interested in this budding industry and, of course, has more than enough money to finance it. We’ll know more once 44.01 completes its pilot work.

News: Felt raised $4.5 million to get you to ‘think in maps’

From vaccine distribution plans to fire trackers to bar crawls for your best friend’s birthday, maps help people visualize space and express impact. And Felt, a new Oakland-based startup co-founded by Sam Hashemi and Can Duruk, is on a mission to make the medium more mainstream. Felt is a collaborative software company that wants to

From vaccine distribution plans to fire trackers to bar crawls for your best friend’s birthday, maps help people visualize space and express impact. And Felt, a new Oakland-based startup co-founded by Sam Hashemi and Can Duruk, is on a mission to make the medium more mainstream.

Felt is a collaborative software company that wants to make it easier for people to build maps on the internet. It announced today that it has raised $4.5 million led by Bain Capital Ventures, with participation from Designer Fund, Allison Pickens, Akshay Kothari (COO of Notion), Dylan Field (CEO of Figma) John Lily (former CEO of Firefox), Julia and Kevin Hartz, and Keval Desai.

The millions will be used to help Felt grow its fully distributed six-person team to bring on more front-end, back-end and product engineers, as well as product and brand designers. Along with the financing, the company announced it is launching a private beta to better understand what early adopters it attracts, and how those users engage with the platform.

Felt allows users to build a map with data sets integrated into it. A user can open a map of California, for example, and then turn to Felt’s data library to add information about bits like wildfires and smoke patterns. The map’s power grows as more integrations are used to build out its background; using the prior anecdote, for example, the wildfire map integrated with census data could allow decision makers to see how many businesses could be impacted by incoming smoke.

Over time, Felt users will be able to see other user-generated maps and team projects on the interface — which they can then copy to add their own flair, or leave comments to support the community.

While consumers will eventually be able to access a free tier, the big test for Felt is if it can find a customer base that is willing to pay, and consistently use mapping software in meaningful ways. The company is in a unique spot. It’s not a GPS service, so it won’t serve the consumer who only turns to maps for directions. Instead, its build-a-map service is better suited for companies that already use it in their day-to-day.

Felt is meant to be a continuation of the collaborative software movement underscored by everyday tools like Google Docs and top companies like Notion and Figma, as well as a sequel to Hashemi’s previous company, Remix. Recently bought by Via for $100 million, Remix is a city transportation planning startup born out of Code for America Hackathon. As Hashemi spent nearly seven years building Remix, he was introduced to the inadequacies of map-making, namely that there are many use cases for maps but not many people who have the skill set to create a professional product. He hopes Felt will take mapping beyond city planning and into a variety of industries, from education to science to media.

“We really want to be much more aspirational in what we’re trying to accomplish and go much more broader [so it] results in a totally different kind of company,” Hashemi said. Perhaps its biggest competitor is ESRI’s GIS, a mapping software tool founded in 1969 and still used by hundreds of thousands of companies today.

Climate change could be a catalyst that brings more customers into the collaborative mapping space. Duruk, who built products at Uber and VGS, spoke about the importance of crisis response after last year’s wildfires and the resulting eerie orange sky in the Bay Area.

“Everyone in the Bay Area would wake up, go to the air quality map, weather map and the fire map,” Duruk said. “Everyone was trying to do something with maps, but only a few companies in the world had the resources to build something….it was broken.” Felt wants to go broad in its integrations, but did confirm that climate data will be a priority.

The challenge with building a powerful, creative tool is that there is a chance for people to misuse maps for abuse or targeting, Duruk said. Felt is thinking about ways to build in accountability and systematic processes to limit bad actors from using mapping information in the wrong way.

In the meantime, though, the early-stage startup is focusing on expression as a key way to understand its own product’s bounds. With millions more, Felt is aiming at increasing the capability of people by growing the map-ability of the world.

News: Kiwibot partners with hospitality giant Sodexo to bring food delivery robots to more college campuses

Kiwibot, the robotic sidewalk delivery startup, has announced a partnership with food services and facilities management giant Sodexo to bring its robots to U.S. college campuses. As of this month, students and faculty at New Mexico State University, Loyola Marymount University and Gonzaga University should have the option to order fresh meals via cute little

Kiwibot, the robotic sidewalk delivery startup, has announced a partnership with food services and facilities management giant Sodexo to bring its robots to U.S. college campuses. As of this month, students and faculty at New Mexico State University, Loyola Marymount University and Gonzaga University should have the option to order fresh meals via cute little robots from Sodexo-serviced locations on campuses.

This is not the first time Kiwibot is delivering food for over-caffeinated, hungover, exhausted college kids. Its robots, which are designed to look adorable and can move at around two miles per hour, were born at the University of Berkeley, California. There, the company was able to rack up 150,000 deliveries and prove its use case for expansion to other campuses, like the University of Denver and Stanford University. 

Sodexo provides the food for the cafeterias and dining halls of hundreds of colleges across the U.S., so this partnership could prove to be massively fruitful for Kiwibot. It’ll need the boost in order to keep up with its main competition, Starship Technologies, which completed one million delivery rides in January and operates in many college campuses, as well. 

Campuses are often a natural choice for startups in autonomous development. Not only are universities open to experimenting with new ideas, but given the unit economics on a campus, the revenue growth prospects are more favorable than working B2B in a city, says Diego Varela Prada, chief operating officer at Kiwibot. 

“Additionally, university campuses provide an advantage as they tend to be a more controlled environment than public streets in regards to things such as public infrastructure complexity and car traffic and congestion,” Prada told TechCrunch.

As part of the partnership, students will be able to use their meal plans for Kiwibot delivery through their Sodexo Bite+ app. Those without a meal plan can pay a la carte, including $2 flat fee plus 10% of the order amount. 

“We’re starting with 10 bots at Loyola, 10 bots at Gonzaga and 30 bots at New Mexico State, and that’s just the beginning,” said Prada. “We’re hoping to have many more. As a B2B business, we’re able to work very closely with our partner to increase the capacity of the bots as demand ramps up.”

Last year, many college campuses were forced to shut down amid the pandemic. Now, as school is about to be in session again, the U.S. is experiencing the highest caseload since February, averaging about 100,000 new cases everyday. There’s no telling what kinds of shutdowns or lockdowns we’ll see on college campuses this year, but Prada sees Kiwibot providing an avenue for students to order food safely.

“We have a procedure to disinfect the bots between orders,” he said. “If you’re a student and you don’t want to mix into large crowds, I think it’s much safer to order food through Kiwibot and have it delivered to the library or your dorm.”

Prada says Kiwibot’s robots, which are in their fourth generation, are advancing to Level 4 autonomy, but are currently at Level 3. The Society of Automotive Engineers describes both Levels 3 and 4 as a full self-driving system, but with Level 3, a human operator may be required to take over if there’s an issue, whereas a Level 4 system is expected to handle all driving on its own. 

“We have a feature that’s called corner-to-corner, and so what that does is it captures data around an indoor space and feeds that into an algorithm that basically makes decisions for the bot,” said Prada. “It handles the navigation for the robot in between high complexity situations, like cars, people, pets, little kids, people that work on campus. So we are not in a position yet to let the bot go on the campus on its own. Our remote operators have a feature where they switch to corner-to-corner and if the bot senses, for example, a street pass, then the remote operator or supervisor will take over.”

The engineers at Kiwibot are working on getting a bot to navigate indoor-to-outdoor and outdoor-to-indoor, so that it can pick up orders in a kitchen, go outside to deliver it and then navigate inside a building so that it can deliver an order to someone’s room or desk.

News: Following the IPCC’s report, we need more technology to respond to more disasters

This week, the Intergovernmental Panel on Climate Change released its major sixth assessment report on the physical science of climate change. The details are grim, if getting more precise as better and more comprehensive data becomes available. As my colleague Mike Butcher summarized yesterday, it’s “stern and blunt in its conclusions.” UN’s IPCC report on

This week, the Intergovernmental Panel on Climate Change released its major sixth assessment report on the physical science of climate change. The details are grim, if getting more precise as better and more comprehensive data becomes available. As my colleague Mike Butcher summarized yesterday, it’s “stern and blunt in its conclusions.”

While many of the themes of the report will be familiar to any person not living under (an ever increasingly hot) rock, one part jumped out at me as I was perusing through the documents. The working group assessed that regardless of mitigation and adaptation strategies, many of the negative changes happening to Earth will continue unabated in all future scenarios. From the summary report:

Many changes due to past and future greenhouse gas emissions are irreversible for centuries to millennia, especially changes in the ocean, ice sheets and global sea level. […] Mountain and polar glaciers are committed to continue melting for decades or centuries (very high confidence). Loss of permafrost carbon following permafrost thaw is irreversible at centennial timescales (high confidence) …

In short, there is already momentum toward a warmer and more chaotic world, and we have limited tools to stop many of these trends.

There has been a rush of initiatives, investments, and startups bubbling around the theme of climate tech, with projects focused on everything from improving the yields and decreasing the emissions of agriculture and food production, to improving the power grid, and to reducing the emissions from air conditioning in buildings. Those initiatives are fine and important, but they don’t get at one of the toughest challenges facing us this century: that disasters are here, they are coming, and they are going to continue to get more intense as the century rolls on.

Just this past week, we have seen the second largest fire in California’s state history with the Dixie Fire, currently blazing across hundreds of thousands of acres in the northern reaches of the state. Meanwhile in Greece, hundreds of wildfires are causing an unprecedented crisis in that country. Droughts, floods, hurricanes, typhoons and more are intensifying and ravaging ever more billions of people across every continent.

One response to solving this problem is improving resilience — building up cities and structures as well as food and water systems that are fortified against these natural calamities. Many of those projects though are costly and also time-consuming, measured over the course of decades rather than months.

Instead, we need a more immediate push to develop better disaster response technology today. I’ve covered a wide segment of these companies over the past few months. There’s RapidSOS, which is adding more data into emergency calls to make responses faster and more efficient. There’s Qwake, which raised $5.5 million to build hardware and cloud services to allow firefighters to visualize their environments in smoky conditions. Meanwhile, YC-backed Gridware has also raised more than $5 million to create sensors to identify failures in the power grid faster.

In short, there are a growing crop of disaster tech startups — but more are going to be needed to fight the panoply of disasters that will strike in the years ahead.

There’s so much to do: better mental health resources for victims and first responders, easier access to recovery funds to heal lives, higher-quality sensors and data analyses to identify disasters earlier, faster logistics to evacuate people out of harm’s way. In fact, there are quite literally dozens of fields that need more investment and founder attention.

It’s not an easy market, as I pointed out in an analysis of sales cycles. Budgets are tight, disasters are random, and technology is often an afterthought. In some ways though, that friction is a font of creativity — how to build these next-generation of services and how to sell them is the risk that leads to the potential high return.

As the IPCC’s report made clear this week, the chaotic weather and intense disasters we’ve seen the past few decades aren’t going to abate any time soon. But with ingenuity, we can respond better to the disasters that are already on their way, and save lives and treasure in the process.

News: Salesforce wants Salesforce+ to be the Netflix of biz content

Salesforce just closed a $28 billion mega-deal to buy Slack, generating significant debt along the way, but it’s not through spending big money. Today the CRM giant announced it was taking a leap into streaming media with Salesforce+, a forthcoming digital media network with a focus on video that, in the words of the company,

Salesforce just closed a $28 billion mega-deal to buy Slack, generating significant debt along the way, but it’s not through spending big money.

Today the CRM giant announced it was taking a leap into streaming media with Salesforce+, a forthcoming digital media network with a focus on video that, in the words of the company, “will bring the magic of Dreamforce to viewers across the globe with luminary speakers.” (Whether that’s a good thing or not is in the eye of the beholder.)

Over the last year, Salesforce has watched companies struggle to quickly transform into fully-digital entities. The Slack purchase is part of Salesforce’s response to the evolving market, but the company believes it can do even more with an on-demand video service providing business content around the clock.

Salesforce president and CMO Sarah Franklin said in an official post that her company has had to “reimagine how to succeed in the new digital-first world.” The answer apparently is involves getting the larger Salesforce community together is a new live, and recorded video push.

In a Q&A with Colin Fleming, Salesforce’s senior vice president of Global Brand Marketing, he sees it as a way to evolve the content the company has been sharing all along. “As a result of the pandemic, we looked at the media landscape, where people are consuming content, and decided the days of white papers in a business-to-business setting were no longer interesting to people. We’re staring at a cookie-less future. And looking at the consumer world, we reflected on that for Salesforce and asked, “Why shouldn’t we be thinking about this too,” he said in the Q&A.

The company’s efforts are not small. Axios reports that there are “50 editorial leads” aboard the project to help it launch, and “hundreds of people at Salesforce currently working on Salesforce+” more broadly.

Notably Salesforce does not have near-term monetization plans for Salesforce+. The service will be free, and will not feature external advertising. Salesforce+ will launch in September in conjunction with Dreamforce and include four channels: Primetime for news and announcements, Trailblazer for training content, Customer 360 for success stories and Industry Channels for industry-specific offerings.

The company hopes that by combining the announcement with Dreamforce, it will help drive interest in what Salesforce has cooked up. After the Dreamforce push, Salesforce+ will enter into interesting territory. How much do Salesforce customers, and the larger business community really want what the company describes as “compelling live and on-demand content for every role, industry and line of business,” and “engaging stories, thought leadership and expert advice”?

Salesforce is considered the most successful SaaS-first company in history, and as such may have an opinion that people are interested in hearing. In its most recent quarterly earnings report in May, the company disclosed $5.96 billion in revenue, up 23% compared to the year-ago quarter, putting it close to a $25 billion run rate. The company also generates lots of cash. But being cash-rich doesn’t absolve the question of whether this new streaming effort will prove to be a money pit, costing buckets of cash to produce with limited returns.

The service sounds a bit like your LinkedIn feed brought to life, but in video form. At the very least, it’s probably the largest content marketing scheme of all time, but can it ever pay for itself either as a business unit or through some other monetization plans (like advertising) down the road?

Brent Leary, founder and principal analyst at CRM essentials says that he could see Salesforce eyeing advertising revenue with this venture and having it all tie into the Salesforce platform. “A customer could sponsor a show, advertise a show, or possibly collaborate on a show. And have leads generated from the show directly tied to the activity from those options while tracking ROI, and it’s all done on one platform. And the content lives on with ads living on with them,” Leary told TechCrunch.

Whether that’s the ultimate goal of this venture remains to be seen, but Salesforce has proven that there is market appetite for Dreamforce content at least in the physical world with over a hundred thousand people involved in 2019, the last time the company was able to hold a live event. While the pandemic shifted most traditional conference activity into the digital realm, making Dreamforce and related types of content available year-round in video format makes some sense in that context.

Precisely how the company will justify the sizable addition to its marketing budget will be interesting; measuring ROI from video products is not entirely straightforward when it is not monetized directly. And sooner or later it will have to have some direct or indirect impact on the business or face questions from shareholders on the purpose of the venture.

News: The art of startup storytelling with Julian Shapiro

“Signal is more important than frequency in an era where we’re overloaded with content.”

Although he’s coming from a numbers-driven background, growth expert Julian Shapiro focuses on the emotional power of storytelling these days.

“I like to think of successful brand-building as creating a company that customers would be upset to separate from their identity,” he says in an interview below. “For example, they’d cease to be the man with Slack stickers all over his laptop. Or the woman who no longer wears Nike shoes every day. And that bugs them.”

A prolific Twitter user, writer and now podcaster, he advises startups to “just blow your own mind” to best explain the value of what you are offering. Don’t overthink it. Your own excitement will take your audience on a journey with you in ways that paid acquisition can’t.

He’s informed by years working with hundreds of startups as the cofounder of Demand Curve (growth training courses) and Bell Curve (a growth agency), but also as a repeat startup founder, angel investor and open-source web developer (Velocity.js).

In the discussion below, he tells us more about the path he’s taken through the startup world, how companies are changing their public communication and what he’s most excited about.

An illustration of Julian Shapiro

Image Credits: Julian Shapiro

 

What has led you from web development and startups to growth marketing in recent years, and most recently to your own personal writing for the public on Twitter, etc.? Many people in your position would be more comfortable just founding new tech companies, or investing in crypto or what-have-you.

I try to avoid being contained by momentum. If something’s going well in one field (engineering) but I’ve found something more fulfilling (like growth strategy), then I’ll switch. I don’t switch for the sake of switching, but I will keep switching until I find something I love. That eventually brought me to writing, which I will never stop doing.

Trying a little bit of a lot of things gives you exposure to learn what else you could (and should) be doing. To break out of a local maximum, you need to always remain curious: What else don’t I know about?

What I ultimately stick with is whatever process I enjoy (not just enjoy the outcome). This usually means the process is fun, educational, adventurous and helps me meet like-minded people. Writing is a bat signal for like-minded people.

You’re focused on the art of storytelling right now — what are the key things that the startups you work with continue to get wrong here?

The story of a startup is essentially their (1) investor pitch and (2) customer-facing brand.

I like to think of successful brand-building as creating a company that customers would be upset to separate from their identity. For example, they’d cease to be the man with Slack stickers all over his laptop. Or the woman who no longer wears Nike shoes every day. And that bugs them.

To get to that point, you need a mix of goodwill, what-we-stand-for ideology, social prestige and customer delight—among other affinity-building ingredients.

How do you see companies changing the way they talk about themselves to the public in the future, given larger societal trends? Fewer press releases full of canned legalese, more public engagement on social media from the CEO?

Employees with audiences who broadcast corporate messages on a human-to-human level. Plus company social media accounts gaining personality and acting more like their employees.

It’s really hard to grab attention otherwise, especially with the explosion of content creators who are very good at hogging attention and optimizing content for the platforms. Corporate blogs haven’t been competing with them. I’m not sure they could. So much of this is personality-driven, to my point in the previous paragraph.

I’m also hoping, but not expecting, companies to dial back frequency of content production and increase quality of content production. Signal is more important than frequency in an era where we’re overloaded with content.

Given how many startups you work with across YC, etc., and since you are also an angel investor, what are key industry trends that have you most excited?

I’m interested in businesses with product-led growth, brand affinity moats and who get harder to compete with the larger they get. In other words, customers do the selling, customers fall in love and defensibility is in their design.

This is in part a reaction to not wanting startups to be so reliant on paid acquisition. And it’s also a reflection of how I want startups to be thinking more about not just providing transactional value to customers but also making customers truly delighted.

News: Amazon says it will now compensate consumers for defective products sold on its marketplace

Amazon today is making a significant change to its returns policy, known as the A-to-Z guarantee, to address issues with defective products sold through Amazon’s marketplace of third-party sellers. In the past, Amazon directed consumers to the sellers in the case where a defective product caused property damage or personal injury. Now, Amazon says it

Amazon today is making a significant change to its returns policy, known as the A-to-Z guarantee, to address issues with defective products sold through Amazon’s marketplace of third-party sellers. In the past, Amazon directed consumers to the sellers in the case where a defective product caused property damage or personal injury. Now, Amazon says it will directly pay customers for their claims under $1,000, which would cover more than 80% of cases, at no cost to sellers.

It also says it may step in to pay claims for higher amounts if the seller rejects a claim or is unresponsive on a claim Amazon understands to be valid.

For years, Amazon has attempted to skirt responsibility for the products sold through its marketplace, saying it was only the platform that enabled these transactions to take place — not the liable party in the event of defective product claims. Some U.S. courts over the years have agreed, but others have not, complicating matters. Most recently, a California appellate court ruled that Amazon could be sued when consumers were injured by third-party products it sold on its website. The case at hand was a lawsuit over a defective hoverboard a mother bought for her son in 2015, which burned the customer’s hands and started a fire.

Meanwhile, as Amazon’s marketplace has grown, how defective products and consumer complaints are handled has become even more of problem. Today, Amazon’s marketplace has 6.3 million total sellers, 1.5 million of which are currently active, according to estimates from Marketplace Pulse.

This situation recently came to a head, when last month Amazon was sued by the U.S. Consumer Product Safety Commission, which aims to force Amazon to accept responsibility for recalling potentially hazardous products sold on Amazon.com. The named products in the complaint included “24,000 faulty carbon monoxide detectors that fail to alarm, numerous children’s sleepwear garments that are in violation of the flammable fabric safety standard risking burn injuries to children, and nearly 400,000 hair dryers sold without the required immersion protection devices that protect consumers against shock and electrocution,” the federal agency said.

As a part of that action, the CPSC also wanted Amazon to step in and issue refunds, naming it as a distributor of these products by way of its FBA (Fulfilled by Amazon) program. It pointed out that Amazon stores products at its warehouse, inventories them and sorts and ships them — and earns fees for doing so. The agency also argued that consumers who then buy these products may “reasonably believe” they are purchasing from Amazon.

Today, Amazon says it will step in to handle these types of consumer complaints. Instead of telling customers to reach out to the seller, it will allow customers to begin their claims process through Amazon Customer Service.

Starting September 1st, Amazon will take the claim information and notify the seller to help them address the claim. If the seller doesn’t respond, Amazon will step in to address the customer concern at its own cost while it separately tries to pursue the seller. And if the seller rejects a claim that Amazon believes is valid, it will compensate the customer.

The retailer says it will use its existing fraud detection and abuse systems and work with external, independent insurance fraud experts to analyze customers’ claims for validity. This will provide an initial layer of seller protection, as Amazon will stop sellers from having to deal with “unsubstantiated, frivolous, or abusive claims,” Amazon explains. It will also offer product liability insurance to sellers through a new service, Amazon Insurance Accelerator, which will offer a selection of trusted providers to shop from.

Amazon likely believes this new policy will help to head off new regulations that could impact how it runs its marketplace business. In announcing the news, Amazon stated that it’s “going far beyond our legal obligations and what any other marketplace service provider is doing today to protect customers” — a message clearly meant to dissuade further regulation.

The changes will roll out initially in the U.S., Amazon says.

News: Interview: Apple’s Head of Privacy details child abuse detection and Messages safety features

Last week, Apple announced a series of new features targeted at child safety on its devices. Though not live yet, the features will arrive later this year for users. Though the goals of these features are universally accepted to be good ones — the protection of minors and the limit of the spread of Child

Last week, Apple announced a series of new features targeted at child safety on its devices. Though not live yet, the features will arrive later this year for users. Though the goals of these features are universally accepted to be good ones — the protection of minors and the limit of the spread of Child Sexual Abuse Material (CSAM), there have been some questions about the methods Apple is using.

I spoke to Erik Neuenschwander, Head of Privacy at Apple, about the new features launching for its devices. He shared detailed answers to many of the concerns that people have about the features and talked at length to some of the tactical and strategic issues that could come up once this system rolls out. 

I also asked about the rollout of the features, which come closely intertwined but are really completely separate systems that have similar goals. To be specific, Apple is announcing three different things here, some of which are being confused with one another in coverage and in the minds of the public. 

CSAM detection in iCloud Photos – A detection system called NeuralHash creates identifiers it can compare with IDs from the National Center for Missing and Exploited Children and other entities to detect known CSAM content in iCloud Photo libraries. Most cloud providers already scan user libraries for this information — Apple’s system is different in that it does the matching on device rather than in the cloud.

Communication Safety in Messages – A feature that a parent opts to turn on for a minor on their iCloud Family account. It will alert children when an image they are going to view has been detected to be explicit and it tells them that it will also alert the parent.

Interventions in Siri and search – A feature that will intervene when a user tries to search for CSAM-related terms through Siri and search and will inform the user of the intervention and offer resources.

For more on all of these features you can read our articles linked above or Apple’s new FAQ that it posted this weekend.

From personal experience, I know that there are people who don’t understand the difference between those first two systems, or assume that there will be some possibility that they may come under scrutiny for innocent pictures of their own children that may trigger some filter. It’s led to confusion in what is already a complex rollout of announcements. These two systems are completely separate, of course, with CSAM detection looking for precise matches with content that is already known to organizations to be abuse imagery. Communication Safety in Messages takes place entirely on the device and reports nothing externally — it’s just there to flag to a child that they are or could be about to be viewing explicit images. This feature is opt-in by the parent and transparent to both parent and child that it is enabled.

Apple’s Communication Safety in Messages feature. Image Credits: Apple

There have also been questions about the on-device hashing of photos to create identifiers that can be compared with the database. Though NeuralHash is a technology that can be used for other kinds of features like faster search in photos, it’s not currently used for anything else on iPhone aside from CSAM detection. When iCloud Photos is disabled, the feature stops working completely. This offers an opt-out for people but at an admittedly steep cost given the convenience and integration of iCloud Photos with Apple’s operating systems.

Though this interview won’t answer every possible question related to these new features, this is the most extensive on-the-record discussion by Apple’s senior privacy member. It seems clear from Apple’s willingness to provide access and its ongoing FAQ’s and press briefings (there have been at least 3 so far and likely many more to come) that it feels that it has a good solution here. 

Despite the concerns and resistance, it seems as if it is willing to take as much time as is necessary to convince everyone of that. 

This interview has been lightly edited for clarity.

TC: Most other cloud providers have been scanning for CSAM for some time now. Apple has not. Obviously there are no current regulations that say that you must seek it out on your servers, but there is some roiling regulation in the EU and other countries. Is that the impetus for this? Basically, why now?

Erik Neuenschwander: Why now comes down to the fact that we’ve now got the technology that can balance strong child safety and user privacy. This is an area we’ve been looking at for some time, including current state of the art techniques which mostly involves scanning through entire contents of users libraries on cloud services that — as you point out — isn’t something that we’ve ever done; to look through user’s iCloud Photos. This system doesn’t change that either, it neither looks through data on the device, nor does it look through all photos in iCloud Photos. Instead what it does is gives us a new ability to identify accounts which are starting collections of known CSAM.

So the development of this new CSAM detection technology is the watershed that makes now the time to launch this. And Apple feels that it can do it in a way that it feels comfortable with and that is ‘good’ for your users?

That’s exactly right. We have two co-equal goals here. One is to improve child safety on the platform and the second is to preserve user privacy, And what we’ve been able to do across all three of the features, is bring together technologies that let us deliver on both of those goals.

Announcing the Communications safety in Messages features and the CSAM detection in iCloud Photos system at the same time seems to have created confusion about their capabilities and goals. Was it a good idea to announce them concurrently? And why were they announced concurrently, if they are separate systems?

Well, while they are [two] systems they are also of a piece along with our increased interventions that will be coming in Siri and search. As important as it is to identify collections of known CSAM where they are stored in Apple’s iCloud Photos service, It’s also important to try to get upstream of that already horrible situation. So CSAM detection means that there’s already known CSAM that has been through the reporting process, and is being shared widely re-victimizing children on top of the abuse that had to happen to create that material in the first place. for the creator of that material in the first place. And so to do that, I think is an important step, but it is also important to do things to intervene earlier on when people are beginning to enter into this problematic and harmful area, or if there are already abusers trying to groom or to bring children into situations where abuse can take place, and Communication Safety in Messages and our interventions in Siri and search actually strike at those parts of the process. So we’re really trying to disrupt the cycles that lead to CSAM that then ultimately might get detected by our system.

The process of Apple’s CSAM detection in iCloud Photos system. Image Credits: Apple

Governments and agencies worldwide are constantly pressuring all large organizations that have any sort of end-to-end or even partial encryption enabled for their users. They often lean on CSAM and possible terrorism activities as rationale to argue for backdoors or encryption defeat measures. Is launching the feature and this capability with on-device hash matching an effort to stave off those requests and say, look, we can provide you with the information that you require to track down and prevent CSAM activity — but without compromising a user’s privacy?

So, first, you talked about the device matching so I just want to underscore that the system as designed doesn’t reveal — in the way that people might traditionally think of a match — the result of the match to the device or, even if you consider the vouchers that the device creates, to Apple. Apple is unable to process individual vouchers; instead, all the properties of our system mean that it’s only once an account has accumulated a collection of vouchers associated with illegal, known CSAM images that we are able to learn anything about the user’s account. 

Now, why to do it is because, as you said, this is something that will provide that detection capability while preserving user privacy. We’re motivated by the need to do more for child safety across the digital ecosystem, and all three of our features, I think, take very positive steps in that direction. At the same time we’re going to leave privacy undisturbed for everyone not engaged in the illegal activity.

Does this, creating a framework to allow scanning and matching of on-device content, create a framework for outside law enforcement to counter with, ‘we can give you a list, we don’t want to look at all of the user’s data but we can give you a list of content that we’d like you to match’. And if you can match it with this content you can match it with other content we want to search for. How does it not undermine Apple’s current position of ‘hey, we can’t decrypt the user’s device, it’s encrypted, we don’t hold the key?’

It doesn’t change that one iota. The device is still encrypted, we still don’t hold the key, and the system is designed to function on on-device data. What we’ve designed has a device side component — and it has the device side component by the way, for privacy improvements. The alternative of just processing by going through and trying to evaluate users data on a server is actually more amenable to changes [without user knowledge], and less protective of user privacy.

Our system involves both an on-device component where the voucher is created, but nothing is learned, and a server-side component, which is where that voucher is sent along with data coming to Apple service and processed across the account to learn if there are collections of illegal CSAM. That means that it is a service feature. I understand that it’s a complex attribute that a feature of the service has a portion where the voucher is generated on the device, but again, nothing’s learned about the content on the device. The voucher generation is actually exactly what enables us not to have to begin processing all users’ content on our servers which we’ve never done for iCloud Photos. It’s those sorts of systems that I think are more troubling when it comes to the privacy properties — or how they could be changed without any user insight or knowledge to do things other than what they were designed to do.

One of the bigger queries about this system is that Apple has said that it will just refuse action if it is asked by a government or other agency to compromise by adding things that are not CSAM to the database to check for them on-device. There are some examples where Apple has had to comply with local law at the highest levels if it wants to operate there, China being an example. So how do we trust that Apple is going to hew to this rejection of interference If pressured or asked by a government to compromise the system?

Well first, that is launching only for US, iCloud accounts, and so the hypotheticals seem to bring up generic countries or other countries that aren’t the US when they speak in that way, and the therefore it seems to be the case that people agree US law doesn’t offer these kinds of capabilities to our government. 

But even in the case where we’re talking about some attempt to change the system, it has a number of protections built in that make it not very useful for trying to identify individuals holding specifically objectionable images. The hash list is built into the operating system, we have one global operating system and don’t have the ability to target updates to individual users and so hash lists will be shared by all users when the system is enabled. And secondly, the system requires the threshold of images to be exceeded so trying to seek out even a single image from a person’s device or set of people’s devices won’t work because the system simply does not provide any knowledge to Apple for single photos stored in our service. And then, thirdly, the system has built into it a stage of manual review where, if an account is flagged with a collection of illegal CSAM material, an apple team will review that to make sure that it is a correct match of illegal CSAM material prior to making any referral to any external entity. And so the hypothetical requires jumping over a lot of hoops, including having Apple change its internal process to refer material that is not illegal, like known CSAM and that we don’t believe that there’s a basis on which people will be able to make that request in the US. And the last point that I would just add is that it does still preserve user choice, if a user does not like this kind of functionality, they can choose not to use iCloud Photos and if iCloud Photos is not enabled no part of the system is functional.

So if iCloud Photos is disabled, the system does not work, which is the public language in the FAQ. I just wanted to ask specifically, when you disable iCloud Photos, does this system continue to create hashes of your photos on device, or is it completely inactive at that point?

If users are not using iCloud Photos, NeuralHash will not run and will not generate any vouchers. CSAM detection is a neural hash being compared against a database of the known CSAM hashes that are part of the operating system image. None of that piece, nor any of the additional parts including the creation of the safety vouchers or the uploading of vouchers to iCloud Photos is functioning if you’re not using iCloud Photos. 

In recent years, Apple has often leaned into the fact that on-device processing preserves user privacy. And in nearly every previous case and I can think of that’s true. Scanning photos to identify their content and allow me to search them, for instance. I’d rather that be done locally and never sent to a server. However, in this case, it seems like there may actually be a sort of anti-effect in that you’re scanning locally, but for external use cases, rather than scanning for personal use — creating a ‘less trust’ scenario in the minds of some users. Add to this that every other cloud provider scans it on their servers and the question becomes why should this implementation being different from most others engender more trust in the user rather than less?

I think we’re raising the bar, compared to the industry standard way to do this. Any sort of server side algorithm that’s processing all users photos is putting that data at more risk of disclosure and is, by definition, less transparent in terms of what it’s doing on top of the user’s library. So, by building this into our operating system, we gain the same properties that the integrity of the operating system provides already across so many other features, the one global operating system that’s the same for all users who download it and install it, and so it in one property is much more challenging, even how it would be targeted to an individual user. On the server side that’s actually quite easy — trivial. To be able to have some of the properties and building it into the device and ensuring it’s the same for all users with the features enable give a strong privacy property. 

Secondly, you point out how use of on device technology is privacy preserving, and in this case, that’s a representation that I would make to you, again. That it’s really the alternative to where users’ libraries have to be processed on a server that is less private.

The things that we can say with this system is that it leaves privacy completely undisturbed for every other user who’s not into this illegal behavior, Apple gain no additional knowledge about any users cloud library. No user’s Cloud Library has to be processed as a result of this feature. Instead what we’re able to do is to create these cryptographic safety vouchers. They have mathematical properties that say, Apple will only be able to decrypt the contents or learn anything about the images and users specifically that collect photos that match illegal, known CSAM hashes, and that’s just not something anyone can say about a cloud processing scanning service, where every single image has to be processed in a clear decrypted form and run by routine to determine who knows what? At that point it’s very easy to determine anything you want [about a user’s images] versus our system only what is determined to be those images that match a set of known CSAM hashes that came directly from NCMEC and and other child safety organizations. 

Can this CSAM detection feature stay holistic when the device is physically compromised? Sometimes cryptography gets bypassed locally, somebody has the device in hand — are there any additional layers there?

I think it’s important to underscore how very challenging and expensive and rare this is. It’s not a practical concern for most users though it’s one we take very seriously, because the protection of data on the device is paramount for us. And so if we engage in the hypothetical where we say that there has been an attack on someone’s device: that is such a powerful attack that there are many things that that attacker could attempt to do to that user. There’s a lot of a user’s data that they could potentially get access to. And the idea that the most valuable thing that an attacker — who’s undergone such an extremely difficult action as breaching someone’s device — was that they would want to trigger a manual review of an account doesn’t make much sense. 

Because, let’s remember, even if the threshold is met, and we have some vouchers that are decrypted by Apple. The next stage is a manual review to determine if that account should be referred to NCMEC or not, and that is something that we want to only occur in cases where it’s a legitimate high value report. We’ve designed the system in that way, but if we consider the attack scenario you brought up, I think that’s not a very compelling outcome to an attacker.

Why is there a threshold of images for reporting, isn’t one piece of CSAM content too many?

We want to ensure that the reports that we make to NCMEC are high value and actionable, and one of the notions of all systems is that there’s some uncertainty built in to whether or not that image matched, And so the threshold allows us to reach that point where we expect a false reporting rate for review of one in 1 trillion accounts per year. So, working against the idea that we do not have any interest in looking through users’ photo libraries outside those that are holding collections of known CSAM the threshold allows us to have high confidence that those accounts that we review are ones that when we refer to NCMEC, law enforcement will be able to take up and effectively investigate, prosecute and convict.

News: Jerry raises $75M at a $450M valuation to build a car ownership ‘super app’

Just months after raising $28 million, Jerry announced today that it has raised $75 million in a Series C round that values the company at $450 million. Existing backer Goodwater Capital doubled down on its investment in Jerry, leading the “oversubscribed” round. Bow Capital, Kamerra, Highland Capital Partners and Park West Asset Management also participated

Just months after raising $28 million, Jerry announced today that it has raised $75 million in a Series C round that values the company at $450 million.

Existing backer Goodwater Capital doubled down on its investment in Jerry, leading the “oversubscribed” round. Bow Capital, Kamerra, Highland Capital Partners and Park West Asset Management also participated in the financing, which brings Jerry’s total raised to $132 million since its 2017 inception. Goodwater Capital also led the startup’s Series B earlier this year. Jerry’s new valuation is about “4x” that of the company at its Series B round, according to co-founder and CEO Art Agrawal

“What factored into the current valuation is our annual recurring revenue, growing customer base and total addressable market,” he told TechCrunch, declining to be more specific about ARR other than to say it is growing “at a very fast rate.” He also said the company “continues to meet and exceed growth and revenue targets” with its first product, a service for comparing and buying car insurance. At the time of the company’s last raise, Agrawal said Jerry saw its revenue surge by “10x” in 2020 compared to 2019.

Jerry, which says it has evolved its model to a mobile-first car ownership “super app,” aims to save its customers time and money on car expenses. The Palo Alto-based startup launched its car insurance comparison service using artificial intelligence and machine learning in January 2019. It has quietly since amassed nearly 1 million customers across the United States as a licensed insurance broker.

“Today as a consumer, you have to go to multiple different places to deal with different things,” Agrawal said at the time of the company’s last raise. “Jerry is out to change that.”

The new funding round fuels the launch of the company’s “compare-and-buy” marketplaces in new verticals, including financing, repair, warranties, parking, maintenance and “additional money-saving services.” Although Jerry also offers a similar product for home insurance, its focus is on car ownership.

Agrawal told TechCrunch that the company is on track to triple last year’s policy sales, and that its policy sales volume makes Jerry the number one broker for a few of the top 10 insurance carriers.
“The U.S. auto insurance industry is an at least $250 billion market,” he added. “The market opportunity for our first auto financing service is $260 billion. As we enter more car expense categories, our total addressable market continues to grow.”

Image Credits: Jerry

“Access to reliable and affordable transportation is critical to economic empowerment,” said Rafi Syed, Jerry board member and general partner at Bow Capital, which also doubled down on its investment in the company. “Jerry is helping car owners make the most of every dollar they earn. While we see Jerry as an excellent technology investment showcasing the power of data in financial services, it’s also a high-performing investment in terms of the financial inclusion it supports.” 

Goodwater Capital Partner Chi-Hua Chien said the firm’s recurring revenue model makes it stand out from lead generation-based car insurance comparison sites.

CEO Agrawal agrees, noting that Jerry’s high-performing annual recurring revenue model has made the company “attractive to investors” in addition to the fact that the startup “straddles” the auto, e-commerce, fintech and insurtech industries.

“We recognized those investment opportunities could drive our business faster and led to raising the round earlier than expected,” he told TechCrunch. “We’re eager to launch new categories to save customers time and money on auto expenses and the new investment shortens our time to market.”

Agrawal also believes Jerry is different from other auto-related marketplaces out there in that it aims to help consumers with various aspects of car ownership (from repair to maintenance to insurance to warranties), rather than just one. The company also believes it is set apart from competitors in that it doesn’t refer a consumer to an insurance carrier’s site so that they still have to do the work of signing up with them separately, for example. Rather, Jerry uses automation to give consumers customized quotes from more than 45 insurance carriers “in 45 seconds.” The consumers can then sign on to the new carrier via Jerry, which can then cancel former policies on their behalf.

Jerry makes recurring revenue from earning a percentage of the premium when a consumer purchases a policy on its site from carriers such as Progressive.

News: Motional to begin testing autonomous vehicles in LA as part of California expansion plan

Motional, the autonomous vehicle company born out of a $4 billion joint venture with Aptiv and Hyundai, is expanding its presence in California by opening a new operations facility in Los Angeles to support testing on public roads, hiring more engineers and adding an office in Silicon Valley. The investment into the area follows a

Motional, the autonomous vehicle company born out of a $4 billion joint venture with Aptiv and Hyundai, is expanding its presence in California by opening a new operations facility in Los Angeles to support testing on public roads, hiring more engineers and adding an office in Silicon Valley.

The investment into the area follows a hiring spree that has pushed Motional’s total headcount to more than 1,000 people, an expansion into Seoul and its announcement last December to launch fully driverless robotaxi services in major U.S. cities in 2023 using the Lyft ride-hailing network.

While Motional declined to disclose its investment into the California expansion, the company is clearly putting its capital to work with plans to hire dozens of people and scale up operations in Los Angeles and the San Francisco Bay Area.

Motional has had an office in Los Angeles since 2016. The LA office is where some of the company’s machine learning and hardware engineers are based. As part of its expansion plan, Motional has moved the team into a larger location in Santa Monica near the Santa Monica Pier.

Mortional is also opening a new operations facility located a few miles away and plans to more than double the number of employees based in Los Angeles to more than 100 people. The operations facility will support Motional’s plans to begin mapping roads and eventually testing its autonomous vehicles on public roads. Testing routes will initially be centered in and around the Santa Monica area, near its office and operations facility.

Motional said it will use the all-electric Hyundai IONIQ 5, the vehicle that will be the cornerstone of its eventual commercial robotaxi service, in its testing there. The Hyundai IONIQ 5, which was revealed in February 2021 with a consumer release date expected later this year, will be fully integrated with Motional’s driverless system. The vehicles will be equipped with the hardware and software needed for Level 4 autonomous driving capabilities such as lidar, radar and cameras. Level 4, is a designation by SAE, that means the vehicle will handle all driving operations in certain conditions and environments.

For now, the testing will involve autonomous vehicles with a safety driver behind the wheel. The company does not yet have a permit in the state to test its AVs without a human operator behind the wheel. That permit issued by the California Department of Motor Vehicles,

This is first time the company has tested on public roads in Los Angeles. Motional already tests its AVs in Boston, Las Vegas, Pittsburgh and Singapore.

Motional’s President and CEO Karl Iagnemma described this as a “doubling down” of its West Coast footprint. “This expansion is the latest in our growth trajectory and will position Motional with the talent, testing capabilities, and R&D resources we need to deliver on our commercialization roadmap, Iagnemma said, adding that Los Angeles has long been an important part of its global operations.

Motional has also opened an office in Milpitas, a Silicon Valley town located in the southern section of the San Francisco Bay. The company’s compute design team will be based out of this office, Motional said in its announcement.

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