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News: Arm announces the next generation of its processor architecture

• March 30, 2021
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Arm today announced Armv9, the next generation of its chip architecture. Its predecessor, Armv8 launched a decade ago and while it has seen its fair share of changes and updates, the new architecture brings a number of major updates to the platform that warrant a shift in version numbers. Unsurprisingly, Armv9 builds on V8 and

Arm today announced Armv9, the next generation of its chip architecture. Its predecessor, Armv8 launched a decade ago and while it has seen its fair share of changes and updates, the new architecture brings a number of major updates to the platform that warrant a shift in version numbers. Unsurprisingly, Armv9 builds on V8 and is backward compatible, but it specifically introduces new security, AI, signal processing and performance features.

Over the last five years, more than 100 billion Arm-based chips have shipped. But Arm believes that its partners will ship over 300 billion in the next decade. We will see the first ArmV9-based chips in devices later this year.

Ian Smythe, Arm’s VP of Marketing for its client business, told me that he believes this new architecture will change the way we do computing over the next decade. “We’re going to deliver more performance, we will improve the security capabilities […] and we will enhance the workload capabilities because of the shift that we see in compute that’s taking place,” he said. “The reason that we’ve taken these steps is to look at how we provide the best experience out there for handling the explosion of data and the need to process it and the need to move it and the need to protect it.”

That neatly sums up the core philosophy behind these updates. On the security side, ArmV9 will introduce Arm’s confidential compute architecture and the concept of Realms. These Realms enable developers to write applications where the data is shielded from the operating system and other apps on the device. Using Realms, a business application could shield sensitive data and code from the rest of the device, for example.

Image Credits: Arm

“What we’re doing with the Arm Confidential Compute Architecture is worrying about the fact that all of our computing is running on the computing infrastructure of operating systems and hypervisors,” Richard Grisenthwaite, the chief architect at Arm, told me. “That code is quite complex and therefore could be penetrated if things go wrong. And it’s in an incredibly trusted position, so we’re moving some of the workloads so that [they are] running on a vastly smaller piece of code. Only the Realm manager is the thing that’s actually capable of seeing your data while it’s in action. And that would be on the order of about a 10th of the size of a normal hypervisor and much smaller still than an operating system.”

As Grisenthwaite noted, it took Arm a few years to work out the details of this security architecture and ensure that it is robust enough — and during that time Spectre and Meltdown appeared, too, and set back some of Arm’s initial work because some of the solutions it was working on would’ve been vulnerable to similar attacks.

Image Credits: Arm

Unsurprisingly, another area the team focused on was enhancing the CPU’s AI capabilities. AI workloads are now ubiquitous. Arm had already done introduced its Scalable Vector Extension (SVE) a few years ago, but at the time, this was meant for high-performance computing solutions like the Arm-powered Fugaku supercomputer.

Now, Arm is introducing SVE2 to enable more AI and digital signal processing (DSP) capabilities. Those can be used for image processing workloads, as well as other IoT and smart home solutions, for example. There are, of course, dedicated AI chips on the market now, but Arm believes that the entire computing stack needs to be optimized for these workloads and that there are a lot of use cases where the CPU is the right choice for them, especially for smaller workloads.

“We regard machine learning as appearing in just about everything. It’s going to be done in GPUs, it’s going to be done in dedicated processors, neural processors, and also done in our CPUs. And it’s really important that we make all of these different components better at doing machine learning,” Grisenthwaite said.

As for raw performance, Arm believes its new architecture will allow chip manufacturers to gain more than 30% in compute power over the next two chip generations, both for mobile CPUs but also the kind of infrastructure CPUs that large cloud vendors like AWS now offer their users.

“Arm’s next-generation Armv9 architecture offers a substantial improvement in security and machine learning, the two areas that will be further emphasized in tomorrow’s mobile communications devices,” said Min Goo Kim, the executive vice president of SoC development at Samsung Electronics. “As we work together with Arm, we expect to see the new architecture usher in a wider range of innovations to the next generation of Samsung’s Exynos mobile processors.”

News: Google starts trialing its FLoC cookie alternative in Chrome

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Google today announced that it is rolling out Federated Learning of Cohorts (FLoC), a crucial part of its Privacy Sandbox project for Chrome, as a developer origin trial. FLoC is meant to be an alternative to the kind of cookies that advertising technology companies use today to track you across the web. Instead of a

Google today announced that it is rolling out Federated Learning of Cohorts (FLoC), a crucial part of its Privacy Sandbox project for Chrome, as a developer origin trial.

FLoC is meant to be an alternative to the kind of cookies that advertising technology companies use today to track you across the web. Instead of a personally identifiable cookie, FLoC runs locally and analyzes your browsing behavior to group you into a cohort of like-minded people with similar interests (and doesn’t share your browsing history with Google). That cohort is specific enough to allow advertisers to do their thing and show you relevant ads, but without being so specific as to allow marketers to identify you personally.

This “interest-based advertising,” as Google likes to call it, allows you to hide within the crowd of users with similar interests. All the browser displays is a cohort ID and all your browsing history and other data stay locally.

Image Credits: Google / Getty Images

The trial will start in the U.S., Australia, Brazil, Canada, India, Indonesia, Japan, Mexico, New Zealand and the Philippines. Over time, Google plans to scale it globally. As we learned earlier this month, Google is not running any tests in Europe because of concerns around GDPR and other privacy regulations (in part, because it’s unclear whether FLoC IDs should be considered personal data under these regulations).

Users will be able to opt out from this origin trial, just like they will be able to do so with all other Privacy Sandbox trials.

Unsurprisingly, given how FLoC upends many of the existing online advertising systems in place, not everybody loves this idea. Advertisers obviously love the idea of being able to target individual users, though Google’s preliminary data shows that using these cohorts leads to similar results for them and that advertisers can expect to see “at least 95% of the conversions per dollar spent when compared to cookie-based advertising.”

Google notes that its own advertising products will get the same access to FLoC IDs as its competitors in the ads ecosystem.

But it’s not just the advertising industry that is eyeing this project skeptically. Privacy advocates aren’t fully sold on the idea either. The EFF, for example, argues that FLoC will make it easier for marketing companies that want to fingerprint users based on the various FLoC IDs they expose, for example. That’s something Google is addressing with its Privacy Budget proposal, but how well that will work remains to be seen.

Meanwhile, users would probably prefer to just browse the web without seeing ads (no matter what the advertising industry may want us to believe) and without having to worry about their privacy. But online publishers continue to rely on advertising income to fund their sites.

With all of these divergent interests, it was always clear that Google’s initiatives weren’t going to please everyone. That friction was always built into the process. And while other browser vendors can outright block ads and third-party cookies, Google’s role in the advertising ecosystem makes this a bit more complicated.

“When other browsers started blocking third-party cookies by default, we were excited about the direction, but worried about the immediate impact,” Marshall Vale, Google’s product manager for Privacy Sandbox, writes in today’s announcement. “Excited because we absolutely need a more private web, and we know third-party cookies aren’t the long-term answer. Worried because today many publishers rely on cookie-based advertising to support their content efforts, and we had seen that cookie blocking was already spawning privacy-invasive workarounds (such as fingerprinting) that were even worse for user privacy. Overall, we felt that blocking third-party cookies outright without viable alternatives for the ecosystem was irresponsible, and even harmful, to the free and open web we all enjoy.”

It’s worth noting that FLoC, as well as Google’s other privacy sandbox initiatives, are still under development. The company says the idea here is to learn from these initial trials and evolve the project accordingly.

News: Ballot counting for Amazon’s historic union vote starts today

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Vote counting begins today in the historic effort to unionize Amazon’s Bessemer, Alabama fulfillment center. The warehouse — which opened exactly a year ago to meet ramping up demand as COVID-19 bore down on the U.S. — has become ground zero for one of the most import labor efforts in modern American history. Voting began

Vote counting begins today in the historic effort to unionize Amazon’s Bessemer, Alabama fulfillment center. The warehouse — which opened exactly a year ago to meet ramping up demand as COVID-19 bore down on the U.S. — has become ground zero for one of the most import labor efforts in modern American history.

Voting began by mail on February 8, after Amazon repeatedly attempted to delay the vote or force workers to submit ballots in-person, in spite of pandemic restrictions. Things have gotten predictably heated in the days and weeks leading up to yesterday’s official deadline. Though even by the standards of Amazon’s aggressive public relations strategy, thing went surprisingly far.

In particular, the e-commerce giant leveraged Twitter feeds as part of an aggressive anti-union strategy. The company simultaneously sought to bolster its image of existing working conditions while confronting progressive/leftist politicians like Vermont Senator Bernie Sanders, who played a key role in pushing the company toward the $15/hour warehouse minimum wage it now celebrates.

According to reports, the company’s scorched-earth approach against Sanders and fellow New England Senator Elizabeth Warren were spurred on from the top. Founder Jeff Bezos — who will abdicate his CEO position later this year — was said to have encouraged the offensive. Employees at the companies were said to have flagged the offending tweets internally for suspicious activity. Those tickets were reportedly closed.

After antagonist tweets and denying widespread and longstanding reports about Amazon workers peeing in bottles over fears of falling behind on quotas, the Amazon News Twitter reverted to a more positive approach. It has however, continued activity around the vote, including a bid to install video cameras for monitoring boxes carrying ballots — a bid the National Labor Relations Board (NLRB) has since rejected.

While the vote counting kicks off today, don’t expect immediate results. The process is a methodical and deliberate one. Among other things, there are processes in place for either side to object. It’s clear from Amazon’s recent behavior that the company is well aware that this is far more consequential than the 6,000 or so workers currently employed by the Bessemer location. If the company prevails, it will position the decision as validation of its working conditions. If workers vote to unionize, meanwhile, this could well start a chain reaction across the company.

BIRMINGHAM, AL – MARCH 05: A truck passes as Congressional delegates visit the Amazon Fulfillment Center after meeting with workers and organizers involved in the Amazon BHM1 facility unionization effort, represented by the Retail, Wholesale, and Department Store Union on March 5, 2021 in Birmingham, Alabama. Workers at Amazon facility currently make $15 an hour, however they feel that their requests for less strict work mandates are not being heard by management. (Photo by Megan Varner/Getty Images)

This week, workers at Amazon’s Germany facilities are going on strike for four days, following a similar move in Italy last week.

“It’s not just workers in Alabama, it’s workers everywhere who are saying to Jeff Bezos that enough is enough. No matter what language they speak, Amazon workers around the globe will not stand for the working conditions they’ve been forced to endure for too long,” Retail, Wholesale and Department Store Union (RWDSU) President Stuart Applebaum said in a statement.

The NLRB oversees the vote counting. If workers vote to unionize, Bessemer workers will join the RWDSU. The organization has also seen its share of pushback from Amazon. As the company told TechCrunch last week:

Stuart Appelbaum, Chief Disinformation Officer of RWDSU, in an attempt to save his long declining union, is taking alternative facts to a whole new level. But our employees are smart and know the truth—starting wages of $15 or more, health care from day one, and a safe and inclusive workplace. We encourage all of our employees to vote.

Ballots have been sent to the NLRB’s Birmingham offices. There are a number of grounds on which either side can contest the results. These include everything from signatures to whether the person who cast a vote is, in fact, an eligible employee of Amazon. Even after votes are counted, things are likely to drag on. Court battles seem a likely outcome, moving forward. From there, things could ultimately stretch on for weeks or months.

The battle is a high stakes one that has made unusual political allies from opposite sides of the aisle. There aren’t too many events that have united politicians ranging from Marco Rubio on one side and Sanders, Warren and Joe Biden on the other. That goes double for something as traditionally divisive as labor unions.

“This campaign has already been a victory in many ways,” Appelbaum said in a statement issued late last week. “Even though we don’t know how the vote will turn out, we believe we have opened the door to more organizing around the country.”

News: ConsenySys launches a more energy-efficient NFT ecosystem with a project from artist Damien Hirst as its first drop

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The NFT craze has been an intriguing moment for digital artists who have seen seen great leaps in how tech has allowed them to create their work, but not as much progress in shifting how they profit off of it. Though crypto’s early adopter artists have seemed to gain the most attention thus far, more

The NFT craze has been an intriguing moment for digital artists who have seen seen great leaps in how tech has allowed them to create their work, but not as much progress in shifting how they profit off of it.

Though crypto’s early adopter artists have seemed to gain the most attention thus far, more institutionally present artists are dipping their feet into the token world. One of the bigger barriers has been the environmental concerns tied to the Ethereum blockchain which required intense energy usage to mint new artwork, tied to incredibly high transaction fees, something that has invited controversy for early artists because of climate change cocerns.

There have been a number of blockchain products to emerge in recent months that promise the benefits of Ethereum with greater speed, lower costs and lower energy usage, most notably Dapper Labs’ Flow blockchain which powers their NBA Top Shot product. Today, we saw the debut of a new “layer-two” entrant from ConsenSys, called Palm, which operates as a sidechain on Ethereum’s main network but will be supported via the popular crypto wallet MetaMask.

As part of Palm’s launch, the artist Damien Hirst announced he will be launching an NFT project, his first, called The Currency Project on the platform’s Palm NFT Studio.

Ethereum has already committed to transitioning to a more energy-efficient proof-of-stake consensus structure, but it’s unclear how quickly that’s going to happen. The network currently relies on a proof-of-work system (as does bitcoin), which use an energy-intensive manner of prioritizing where the next block in a chain is mined that gets more intensive as a network sees more traffic. It’s a reason why crypto mining operations have had to consistently invest in the latest hardware to maintain an edge and use more power. Proof-of-work does away with most of that, instead choosing nodes on the network to mine the next block based on reputation or their existing stake. There are some real security tradeoffs which have required workarounds though plenty in the crypto community aren’t quite satisfied with the compromises, though proponents argue that environmental concerns should take precedent.

In a press release, the team behind Palm says the ecosystem is “99% more energy efficiency than proof of work systems.”

Unlike Dapper Labs’ Flow, Palm benefits from its interconnectedness with the community of Ethereum developers, something that was present in today’s announcement which showcased several industry partnerships including Nifty. The news arrived alongside details this morning of Dapper Labs’ monster $305 million fund raise which will give the company backing to build on the momentum of Top Shot which has given the broader NFT space the wave of enthusiasm it’s currently experiencing.

News: Google launches Stack, an app that digitizes personal docs and extracts key information

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Google’s in-house incubator, Area 120, is today releasing its latest project called Stack, an app that will help you digitize your documents, receipts and other papers you have lying around the house, and then automatically save them to Google Drive. The app will also helpfully suggest a name for your scans and the right category

Google’s in-house incubator, Area 120, is today releasing its latest project called Stack, an app that will help you digitize your documents, receipts and other papers you have lying around the house, and then automatically save them to Google Drive. The app will also helpfully suggest a name for your scans and the right category — or “stack,” as it’s called.

At launch, Stack can handle scanning a range of differently-sized documents — like bills, shopping receipts, or even IDs — which are then turned into PDFs and organized, while important information from within the file is detailed using A.I. technology.

The idea for Stack comes from Christopher Pedregal, who previously co-founded the edtech startup Socratic which was acquired by Google back in 2018. 

Pedregal notes that, at Socratic, they had taken advantage of Google’s computer vision and language understanding technologies to make learning easier for high school students. While at Google, he began to think about how those same technologies could be put to work for better organizing documents. To experiment with the idea, he teamed up with Matthew Cowan. The two first worked together on DocAI, a team in Google Cloud that was developing A.I. technology that could analyze billions of documents.

They realized that they could also apply DocAI’s enterprise technology to users’ personal documents, which led to the creation of Stack.

With the Stack app, initially available for Android, users can take a photo of a document and the app will automatically name it and “stack” it into the correct category — like Vehicles, Banking, IDs, Receipts, Home, or Bills. Users can also star their most important scans for quicker access.

While the ability to quickly digitize documents by photographing them isn’t new — Microsoft has offered Office Lens for years, for example —  Stack will also be able to identify key information from within the documents, like the “due date” on a bill, the “total amount due” or “account number.” It can then pull that info out to make it easier to find later on.

The app additionally allows users to search through the full text of the documents, not just the title, to find information they need. To keep the items protected, Stack’s documents can be secured by either your fingerprint or face scan, similar to how Google Drive works today. And Drive users can have all their scans automatically synced over to Google Drive.

Google says the app is currently available on Android, as a free download with no in-app purchases.

News: Volkswagen really is becoming ‘Voltswagen’ in the U.S.

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Automaker Volkswagen wants you to know it’s serious about electric vehicles — so serious, in fact, that it’s officially rebranding around a pun in the U.S. The company revealed in a press release that it’s changing its name from “Volkswagen of America” to “Voltswagen of America” in a press release today. News this could happen

Automaker Volkswagen wants you to know it’s serious about electric vehicles — so serious, in fact, that it’s officially rebranding around a pun in the U.S. The company revealed in a press release that it’s changing its name from “Volkswagen of America” to “Voltswagen of America” in a press release today. News this could happen leaked late Monday, but many speculated it might be an April Fool’s joke that got out a bit early, but the automaker seems serious about switching the official brand from May 2021 onwards given the official release on its newsroom.

Voltswagen (neé Volkswagen) says that the reason behind the change is to firmly demonstrate its commitment “future-forward investment in e-mobility,” which said more simply, implies that it’s super serious about its electric drivetrain plans. In a more literal sense, ‘Volkswagen’ is actually from the German for ‘the people’s car,’ which suggests that Voltswagen is a car for… volts?

Sort of, but not really, says VW (hey that still works!):

“We have said, from the beginning of our shift to an electric future, that we will build EVs for the millions, not just millionaires,” explained VW CEO and President Scott Keogh in the release announcing the swap. “This name change signifies a nod to our past as the peoples’ car and our firm belief that our future is in being the peoples’ electric car.”

This announcement comes just as Volkswagen has begun shipping its all-electric SUV, the ID.4, in the U.S. It ha a price tag of $33,995, before either federal and tax incentives, so that is indeed on the more affordable side of the existing U.S. electric vehicle market, with even more options set to come for cost-conscious consumers in future as the company spurs uses its commitments of lowering emissions by achieving one million global EV sales by 2025, and playing host to a lineup of mover 70 models across VW and its subrands worldwide by 2029.

Voltswagen branding will include use of a higher blue tone on the VW logo for all-electric vehicles, while gas cars will retain the more traditional dark blue look. The actual word ‘Voltswagen’ will be used on EVs in addition to the initials logo, with the icon graphic itself will be the sole branding on gas cars in the U.S. going forward.

News: HighRadius raises $300M, triples valuation to $3.1B for AI-powered fintech software

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HighRadius, which has developed AI-powered fintech software, announced Tuesday it has raised $300 million in a Series C funding round led by D1 Capital and Tiger Global. The round values Houston-based HighRadius at $3.1 billion, triple its valuation of “more than $1 billion” at the time of its $125 million Series B in January of

HighRadius, which has developed AI-powered fintech software, announced Tuesday it has raised $300 million in a Series C funding round led by D1 Capital and Tiger Global.

The round values Houston-based HighRadius at $3.1 billion, triple its valuation of “more than $1 billion” at the time of its $125 million Series B in January of 2020. With this latest financing, HighRadius has raised $475 million in funding.

Existing backers ICONIQ Growth and Susquehanna Growth Equity also participated in the round along with a slew of high-profile CEOs, including Snowflake Chairman and CEO Frank Slootman; Snowflake CFO Michael Scarpelli; Procore Technologies CEO Tooey Courtemanche and Airtable co-founder and CEO Howie Liu.

HighRadius said it will use the new capital “to fuel product innovation and expand global go-to-market reach.”

At the beginning of 2020, HighRadius had more than 400 customers, including over 200 of the Forbes Global 2000 such as Walmart, Nike and Procter & Gamble, and claimed to process more than $1 trillion in transactions per year.

Today, the HighRadius platforms for Order-to-Cash and Treasury Management help more than 600 clients, including more than 200 of the Forbes Global 2000, “optimize their working capital.”

Founded in 2006, HighRadius may not technically be a “startup” in the literal sense of the word. It has, however, notably only taken external capital in recent years. 

The company describes itself as a “SaaS provider for integrated receivables, such as credit, cash application, EIPP, collections, deductions, and payments.” In other words, the platform aims to automate routing receivables and payments processes  (such as predicting invoice payment dates, for example) across a variety of functions via AI and machine learning. Its white-labeled software is integrated into its partners’ offerings.

John Curtius, Partner at Tiger Global Management, said HighRadius is” in the opening innings of defining the next big software market for the Office of the CFO.”

News: Duo goes passwordless

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Duo, the authentication service Cisco acquired for $2.35 billion in 2018, today announced its plans to launch a passwordless authentication service that will allow users to log in to their Duo-protected services through security keys or platform biometrics like Apple’s Face ID or Microsoft’s Windows Hello. The infrastructure-agnostic service will go into public preview in

Duo, the authentication service Cisco acquired for $2.35 billion in 2018, today announced its plans to launch a passwordless authentication service that will allow users to log in to their Duo-protected services through security keys or platform biometrics like Apple’s Face ID or Microsoft’s Windows Hello. The infrastructure-agnostic service will go into public preview in the summer.

“Cisco has strived to develop passwordless authentication that meets the needs of a diverse and evolving workforce and allows the broadest set of enterprises to securely progress towards a passwordless future, regardless of their IT stack,” said Gee Rittenhouse, SVP and GM of Cisco’s Security Business Group. “It’s not an overstatement to say that passwordless authentication will have the most meaningful global impact on how users access data by making the easiest path the most secure.”

If you’re using Duo or a similar product today, chances are that you are using both passwords and a second factor to log into your work applications. But users are notoriously bad about their password hygiene — and to the despair of any IT department, they also keep forgetting them.

In the standard two-factor authentication scheme, the second factor is basically an extra moat around your password. Passwordless is essentially another form of two-factor authentication, but it instead of passwords, it relies on cryptographic key pairs, be that with the help of a hardware security key or biometric authentication.

Duo’s passwordless service relies on the Web Authentication standard which ensures that your data is stored locally and not on a centralized server, too.

According to Duo’s own data, we have now reached a point where the hardware is ready for passwordless, with 80 percent of mobile devices now offering support for biometrics.

“Passwordless is a journey requiring incremental changes in users and IT environments alike, not something enterprises can enable overnight,” said Wolfgang Goerlich, Advisory Chief Information Security Officer, Duo Security at Cisco. “Duo can help enterprises transition their environments and workforces securely and minimize user friction while simultaneously increasing trust in every authentication.”

News: The Tonal EC-1

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Back in the halcyon days of 2019, we piloted a new format for Extra Crunch we dubbed the EC-1. Modeled after the Form S-1 filing that late-stage startups submit to the SEC as part of the IPO process, EC-1s are authoritative, deep analyses into growth-stage startups. We profiled and analyzed a number of companies like

Back in the halcyon days of 2019, we piloted a new format for Extra Crunch we dubbed the EC-1. Modeled after the Form S-1 filing that late-stage startups submit to the SEC as part of the IPO process, EC-1s are authoritative, deep analyses into growth-stage startups. We profiled and analyzed a number of companies like Patreon, Niantic, Roblox, Kobalt and Unity, looking at everything from their product design, to their customer relations, to their events strategy and to the changing economics of music licensing.

They were very popular and we had huge ambitions for the series, but then 2020 hit, COVID-19 swept in, and suddenly our ability to travel and meet with a dozen executives in-person at a company was curtailed (there was also just a wee bit of breaking news to cover as well!) We didn’t want to cut back on quality, so we bided our time.

Well, with some level of normality finally kicking in, we’re excited to restart this series in 2021. We have nearly ten EC-1s in the works right now, and I am excited to introduce our first EC-1 profile of this new batch — a company that has truly skyrocketed amidst that dark pandemic year.

Tonal is a unique entrant in the upscale fitness market, using a proprietary blend of hardware, software, and content to bring comprehensive strength training to the home in as small and efficient of a package as possible. Sales have zoomed the past year as gyms shut down worldwide, and the company has been pelted by interest from both customers and investors.

Tonal Device. Photo via Tonal.

That success today, though, occludes a lengthy process of iteration over years against the droning negativity of most VCs who never expected a corporate enterprise infrastructure founder to be capable of building a popular consumer hardware device. Tonal is not just a story of willpower, but also an example of how much effort it takes to build a major startup, from product design and launch strategy to careful marketing and building the moats to protect itself from competition in a ferocious market.

TechCrunch’s writer and analyst for this EC-1 is JP Mangalindan. Mangalindan has been covering technology for years now, previously serving as chief tech correspondent for our corporate sister site Yahoo Finance and also publishing across a plethora of other tech publications. He brings a wealth of insight not just into startups and Tonal, but the wider fitness market as well. The lead editor for this package was Danny Crichton, the copyeditor was Richard Dal Porto, and illustrations were created by Nigel Sussman.

Tonal had no say in the content of this analysis and did not get advanced access to it. Mangalindan has no financial ties to Tonal or other conflicts of interest to disclose.

The Tonal EC-1 is comprised of four main articles representing about 10,600 words and a reading time of about 43 minutes. Let’s get started:

• Part 1: Origin Story “How a homegrown experiment became one of the fastest-growing companies in fitness tech” (3,200 words / 13 minutes) — we start with the history of Tonal, the multi-year effort to raise VC funds and iterate on a product while reinventing the definition of strength-training equipment
• Part 2: Product launch “Millions of dollars and 3.5 years, and it all came down to this” (2,800 words / 11 minutes) — explores the tradeoffs and tactics Tonal used to launch its product, a launch that as a hardware company, it couldn’t afford to mess up
• Part 3: Community building “Building online communities for fun, profit and product” (2,200 words / 9 minutes) — analyzes Tonal’s early forays into community building and how it uses community to improve its products while also retaining customers for its critical subscription business
• Part 4: Competitive landscape and future “ Can Tonal become the luxury fitness market champion?” (2,400 words / 10 minutes) — evaluates the keen competition confronting Tonal in this market, and analyzes the company’s next steps to continue its successful growth

We’re always iterating on the EC-1 format. If you have questions, comments, or ideas, please send an email to TechCrunch managing editor Danny Crichton at danny@techcrunch.com.

News: How a homegrown experiment became one of the fastest-growing companies in fitness tech

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The company that would become Tonal had to fight through multiple VC rounds of skeptical investors ready to say that two-letter word that stops all progress.

Fitness is about resistance — running against the wind, firing up muscles against the dead gravity of weights, fortifying the mind against that nagging feeling that a park bench and a scoop of ice cream would probably be just a bit more enjoyable.

For Tonal, resistance isn’t just a value proposition, it’s the very ingredient that conditioned this startup to become one of the darlings of the fitness tech world.

The numbers speak for themselves. The company has raised about $200 million to date from venture capitalists and is becoming a household name with a $2,995 wall-mounted device that employs a digital weight system that can emulate various traditional gym stations. Since Tonal launched in August 2018, the company has carved out a reputation among fitness enthusiasts seeking a strength-training solution at home that saves on space without compromising serious weight-lifting capabilities.

As at-home fitness sales have boomed during the pandemic, Tonal equipment has been one of the beneficiaries, seeing its sales surge 800% from December 2019 to December 2020. The company also announced a partnership with Nordstrom this month which will place 50-square-foot sales stations in the women’s activewear department of at least 40 Nordstrom stores across America, bringing the total number of Tonal physical locations to 60 by the end of 2021.

Like all great athletes though, Tonal’s visible victories belie its massive exertion against the resistance of the world to innovation. Aly Orady, the company’s founder and CEO, had to overcome his own burnout and weight gain while kindling the energy to strike his own path. The company that would become Tonal had to fight through multiple VC rounds of skeptical investors ready to say that two-letter word that stops all progress.

It’s that resistance and its ability to overcome barriers that makes understanding Tonal’s story so compelling.

A founder lifting the weight of the past

The morning after Christmas in 2013, Orady woke up feeling downright abysmal. Over the past 17 years or so, he had toiled as an engineer at companies like Samsung, Sun Microsystems, HP and three enterprise startups, work that had taken a heavy toll on him. His corporate exertions had left behind a slew of health problems; he had become grossly overweight and had developed Type II diabetes and sleep apnea.

“It felt like I was heading toward this point of no return, and I just wasn’t going to be able to reclaim my health if I didn’t do something about it,” he recalls.

The only viable path Orady saw to fixing the situation was a major lifestyle change. A few days later after the holidays, he dialed back his hours as a full-time consultant for Samsung’s TV and display division — a role that meant frequent trips to Korea — and embarked on an ambitious workout plan involving four hours of exercise a day six days a week, usually split between mornings and evening, plus intermittent fasting two days a week.

Many mornings, Orady woke up at 6 a.m. and drove to a Gold’s Gym in San Francisco, where he initially hit the elliptical and also went for outdoor bike rides. He scoured the internet and read books about strength training, and the more he worked out, the more he integrated strength training into his six-days-a-week workout schedule until strength training became the core of his routine. Over the course of nine months in 2014, Orady lost a whopping 70 pounds, all while winding down his consulting work with Samsung.

Tonal CEO Aly Orady. Photo via Tonal.

Yet, although he’d already made significant progress getting in shape — and the results truly spoke for themselves — Orady loathed trekking to the gym each day and wished he could do the same workout at home. Perched on a gym bench one day in March 2015, Orady found himself staring at a cable crossover machine, a 5 foot by 3 foot by 7 foot gym mainstay that lets users perform various exercises with removable weight plates.

“I was looking at this thing, and I realized the reason this thing was so big was because it relied on big metal plates and gravity to work,” he explains. “I thought to myself, if I could replace those big metal plates and gravity with electricity, I could shrink it down and create something really small.”

That was his cue. That same month, Orady founded Ripped Labs, a name he would later change to the simpler and catchier moniker, Tonal.

The many reps of product iteration

The same day Orady observed that cable crossover machine, he began brainstorming ways he could bring weight stations into the home while cutting out most of the bulk. Traditional gym stations often use large, unwieldy weight plates to offer enough resistance for strength training. But what if, Orady thought, he could devise a product that swapped out those big metal plates for something smaller and more compact and bundled that technology with intelligent software that tracked a user’s workout?

“I bet if we could make electromagnetics work, it would be completely revolutionary,” says Orady. “It already is the technology that spins the motors in electric cars, propels high-speed trains … but no one had ever used it for this, and the questions started swirling in my head of whether we could use electromagnetics to make a device feel like a real weight machine.” Having received a bachelor’s degree in computer engineering from McMaster University, Orady had studied the theory of electromagnetics, but he had never actually developed electromagnetic devices in his prior work.

Orady ordered a number of parts online to build his first prototype, a rudimentary device strapped to a wooden workbench in his home that had a cable you pulled back and forth. But those first two versions of “digital weights” didn’t work very well — there was too much friction when pulling the cables and not enough magnets to replicate a wide range of weight like traditional gym equipment. The first version contained one magnet and a usable range of 25-40 pounds, while the second prototype used dozens of magnets, which allowed the resistance to be generated by the magnets themselves and not as much from the cables.

After two more iterations, he had managed to create his own kind of electromagnetic technology that created resistance comparable to weights. By then, the prototype had reached a point where he felt the device replicated the feeling of doing some weight station movements like single-arm cable rows and bicep curls.

A marathon of investor meetings

Parallel to working on the prototype that would one day become Tonal, the Ripped Labs founder started an arduous nine-month process of pitching investors. Orady was an enterprise guy with an enterprise rolodex, having worked at three enterprise infrastructure startups and also serving as an advisor at Mayfield Fund for six months in 2013. He pitched his vision of a compact at-home strength-training product, but investors simply scoffed at the idea.