Into Africa: tech leaders weigh in on Jack Dorsey’s planned move to the continent

It’s not every day that the CEO of a large Silicon Valley tech company decides to relocate to a different part of the world in order to learn more about it — particularly a frequently maligned and often overlooked by big-business part.

But Jack Dorsey, the American tech entrepreneur who co-founded and leads not one, but two publicly listed companies (Twitter and Square) is not your typical CEO. Dressed down, bearded, often wearing a wooly hat and speaking in a slow, quiet voice, you might even call Dorsey the anti-CEO. He eschews many of the stereotypical trappings of the executive life and mannerisms in favor of taking silent retreats and traveling to countries like Burma.

In November 2019, Dorsey’s itchy feet took him to Africa, where he visited Nigeria, Ghana, South Africa and Ethiopia on a listening tour. He had meetings at incubators in Lagos and Addis Ababa; and talked to a number of African tech-leaders, including Tayo Oviosu, the CEO of Nigerian payments startup Paga; and Yeli Bademosi, the director of Binance Labs.

And before he departed back for the US, he did something more: he announced that he would return in 2020 to live somewhere on the continent for up to six months.

“Africa will define the future (especially the bitcoin one!). Not sure where yet, but I’ll be living here for 3-6 months mid 2020,” he Tweeted from Ethiopia.

Why Africa?

And where? And when? If you have ever spoken to Dorsey — or more likely read an interview with him — you’ll note that the he can be somewhat oblique. It’s rare that he gives straight answers to straight questions, even if he always responds with something.

So when spokespeople from both Twitter and Square declined to comment on what his plans will be and if they will relate to those two companies, it might be just as likely that they don’t want to disclose anything as they don’t actually know.

But one thing is clear: Africa’s 54 countries and 1.2 billion people is one of the last blue oceans for global tech growth (one that not only Dorsey has identified).

To that end, TechCrunch talked to several people from Africa’s tech world to get their thoughts on what he could do, and what bears remembering as the world follows Dorsey’s spotlight.

The state of the market

When you look at year-over-year expansion in VC investment in the region, startup formation and incubators, the African continent is one of the fastest-growing technology markets in the world — even if today, by monetary value, it’s tiny by Shenzhen or Silicon Valley standards.

Three of the top destination countries for startup investment — Kenya, Nigeria and South Africa — collectively surpassed $1 billion in investment for the first time in 2018, with fintech businesses currently receiving the bulk of the capital and dealflow, according to Partech and WeeTracker stats.

By most accounts, Dorsey’s first foot forward last November was to make himself a student of the continent’s innovation scene — but specifically as it relates to fintech (and by association, his affiliation with Square and latterly Bitcoin).

“It was more them listening than anything else. Not just Jack, but the other senior members of his team,” CcHub’s CEO Bosun Tijani said of Dorsey’s meetings at the incubator.

After acquiring Kenya’s iHub, CcHub is the largest incubator in Africa. Other members of Dorsey’s team who joined him there included Twitter CTO Parag Agrawal and Product Lead Kayvon Beykpour.

“[Dorsey] said the main reason [he was in Ethiopia and Africa] was to listen and to learn what’s going on in the region,” said Ice Addis’ Markos Lemma .

Jack Dorsey CcHub Bosun Tijani Damilola Teidi

Dorsey with CcHub’s Bosun Tijani and Damilola Teidi

Over recent years, Nigeria has become Africa’s leader in startup formation, VC, and the entry of big tech players, such as Facebook — which opened an incubator in Lagos in 2018.

Since 2014, the country of 200 million has held the dual distinction as Africa’s most populous nation and largest economy. This makes it a compelling market for fintech and social media apps.

Twitter in Africa, according to sources, was less of a topic during Jack Dorsey’s meetings with founders and techies. This makes some sense. The service has lower penetration in the region estimated at 7.46%, higher than Instagram but lower than Pinterest — and that essentially means that the business opportunities there are fewer, since the majority of Twitter’s revenues comes from advertising.

“The only concrete thing in all this communication…is he seems to be interested in Bitcoin,” said Tijani.

Markos Lemma had the same takeaway after talking with Dorsey. “I think he’s specifically interested in Bitcoin,” he said.

Crypto

Dorsey’s crypto focus in Africa isn’t such a surprise, given his bullish stance on Bitcoin and blockchain-based technology.

In October, he invested $10 million in CoinList, a startup that facilities and manages token sales. And rather than create its own cryptocurrency, like Facebook’s Libra experiment, Square is using Bitcoin as the basis for its digital-currency strategy. The company added Bitcoin trades to CashApp, its P2P payment and investment product, in 2018 and its Square Crypto effort announced this year aims to “support and promote Bitcoin” through open source development.

A recent interview with Australia’s Financial Review could offer further insight into Dorsey’s crypto Africa vision.

“I think the internet will have a native currency and anything we can do to make that happen we’ll do,” he said in reference to Square’s moves.

“In the long term it will help us be more and more like an internet company where we can launch a product…and the whole world can use it, instead of having to go from market to market, to bank to bank to bank and from regulatory body to regulatory body.”

Square Bitcoin

What Dorsey is describing, in part, is the primary use case for cryptocurrency in Africa — where there remain all kinds of inefficiencies around moving money. The continent’s people pay the highest remittance costs in the world largely due to fragmented (and often inadequate) financial infrastructure and expensive cross-border transaction costs.

By several estimates, Africa is also home to the largest share of the world’s banked and underbanked consumer and SME populations.

Roughly 66% of Sub-Saharan Africa’s 1 billion people don’t have a bank account, according to World Bank data.

There are hundreds of payments startups across the region looking to move that needle by getting these people on the financial map — and more opportunistically, getting them to use their products.

To be fair, the adoption of digital finance products, such as M-Pesa in Kenya, have succeeded in reaching tens of millions.

A characteristic of successful African fintech products, however, is that their use has been geographically segregated, with few apps able to scale widely across borders. Some of that relates to vastly different regulatory structures and the difficulty in shaping product-market-fit from country to country.

Cryptocurrency’s potential to bypass inefficient or deficient finance structures has been getting attention in Africa.

The last two years saw several ICOs on the continent. One of the largest coin offerings ($7 million) was in 2018 by SureRemit — a startup that launched a crypto-token aimed at Africa’s incoming and intra-country remittance markets.

SureRemit’s CEO, Adeoye Ojo, sees the relevance and timing of Jack Dorsey’s interest in cryptocurrencies on the continent.

“Right now a lot of people and governments in Africa are aware of blockchain and cryptocurrencies, compared to two years ago, and asking questions about how this can be leveraged; what kind of products can we build around this,” Ojo told TechCrunch.

Bitcoin, according to Ojo, is finding utility on the continent. “It has helped people with value transfer significantly. A lot of businesses trying to make payments outside Nigeria…frustrated with access to forex or access to USD, are leveraging Bitcoin to make payments directly to vendors or suppliers in Asia and Europe,” he said.

On business motivations for Dorsey’s move to Africa, “I think he is definitely looking at the opportunity to get more people to adopt payments on Bitcoin, buying Bitcoin with Square here,” Ojo said — based on the collective information he’s followed re Dorsey’s crypto motives and what emerged from Jack’s recent trip. 

Square has yet to launch any services in Africa, but if there is a business purpose to Dorsey’s residency, one could be considering how and if the company has scope for building out services in the region, specifically one based around cryptocurrency.

SureRemit CEO Adeoye Ojo believes Dorsey could also look to establish a unique African Bitcoin exchange.

But Ojo underscored the specific hurdles to cryptocurrency adoption on the continent. The first is regulation. Regulatory reviews on digital-currency use are ongoing in major economies Nigeria and Kenya. South Africa’s Central Bank is considering rules that would limit use of cryptocurrencies for foreign transfers.

“Even if the application for crypto works here, if the regulations that come forward don’t support it, it won’t happen,” said Ojo.

As with other parts of the world, Africa also faces a trust issue on digital currency adoption, he added, due to Bitcoin’s implication in several scams — most notably to defraud millions of Nigerians in the Mavrodi Mundial Moneybox (MMM) ponzi scheme.

“For many Nigerians, their first introduction to Bitcoin was this MMM scam…People have been adopting  mobile money in Africa, but it’s gonna take a bit of market education for them to understand using Bitcoin isn’t just some scam,” he said.

Advice for Dorsey

On where Dorsey should spend time on his return, Cellulant CEO Ken Njoroge, thinks Kenya is a must, given its lead as one of the top countries in the world for mobile-money adoption.

“Coming to live in the ecosystem is a good thing…it’s the best way to really understand…and get the nuances of business in Africa,” he said.

Cellulant CEO Ken Njoroge

Njoroge, whose Nairobi-based fintech company processes payments in 35 African countries, also suggested Dorsey understand any tech play in Africa requires a long-game commitment, given the infrastructure challenges in the ecosystem compared to others.

On that topic, Ice Addis co-founder Markos Lemma suggested Dorsey provide founders advice on operating around and influencing tech-regulation. “He’s had a lot experience navigating the U.S. and other markets with Twitter and Square. I don’t know any entrepreneur in Ethiopia or other African markets who has that experience navigating and negotiating regulations,” he said.

For all the likelihood Dorsey’s pending move could be motivated by Square and Bitcoin, three of the founders interviewed by TechCrunch — Bosun Tijani, Ken Njoroge, and Markos Lemma — underscored the rise of Twitter in Africa’s civic and political spheres.

Square doesn’t operate in Africa but Twitter is the fourth most used social media app on the continent and sells ads in Africa through partner, Ad Dynamo, a Twitter spokesperson confirmed.

Social Media Stats 2019 Africa“Twitter is quite powerful in Nigeria,” CcHub’s CEO said of the social media platform in the country, which has been plagued by theft of state resources in the hundreds of billions.

“It’s not just a social media platform for Nigeria. It’s changing the dynamics between people with power and those that they’re meant to serve,” Tijani explained.

Twitter (along with Facebook) has also been implicated in Africa’s first (notable) social media political interference campaigns.

“There’s a lot of hate speech and misinformation that’s been showing up on social media,” said Ice Addis’ Markos Lemma. “With [Ethiopia’s] 2020 elections on the horizon, I think it would be important for him to address how Twitter can mitigate that risk.”

Dorsey has faced flak from some analysts and Twitter board members for his planned move outside the U.S., given risks associated with Twitter and the upcoming American election.

So Dorsey’s 2020 Africa move could certainly uncover opportunities for cryptocurrency and Square on the continent.

It could also become a reminder that wherever he travels so too do the complications of his social media company back home.

Into Africa: tech leaders weigh in on Jack Dorsey’s planned move to the continent

It’s not every day that the CEO of a large Silicon Valley tech company decides to relocate to a different part of the world in order to learn more about it — particularly a frequently maligned and often overlooked by big-business part.

But Jack Dorsey, the American tech entrepreneur who co-founded and leads not one, but two publicly listed companies (Twitter and Square) is not your typical CEO. Dressed down, bearded, often wearing a wooly hat and speaking in a slow, quiet voice, you might even call Dorsey the anti-CEO. He eschews many of the stereotypical trappings of the executive life and mannerisms in favor of taking silent retreats and traveling to countries like Burma.

In November 2019, Dorsey’s itchy feet took him to Africa, where he visited Nigeria, Ghana, South Africa and Ethiopia on a listening tour. He had meetings at incubators in Lagos and Addis Ababa; and talked to a number of African tech-leaders, including Tayo Oviosu, the CEO of Nigerian payments startup Paga; and Yeli Bademosi, the director of Binance Labs.

And before he departed back for the US, he did something more: he announced that he would return in 2020 to live somewhere on the continent for up to six months.

“Africa will define the future (especially the bitcoin one!). Not sure where yet, but I’ll be living here for 3-6 months mid 2020,” he Tweeted from Ethiopia.

Why Africa?

And where? And when? If you have ever spoken to Dorsey — or more likely read an interview with him — you’ll note that the he can be somewhat oblique. It’s rare that he gives straight answers to straight questions, even if he always responds with something.

So when spokespeople from both Twitter and Square declined to comment on what his plans will be and if they will relate to those two companies, it might be just as likely that they don’t want to disclose anything as they don’t actually know.

But one thing is clear: Africa’s 54 countries and 1.2 billion people is one of the last blue oceans for global tech growth (one that not only Dorsey has identified).

To that end, TechCrunch talked to several people from Africa’s tech world to get their thoughts on what he could do, and what bears remembering as the world follows Dorsey’s spotlight.

The state of the market

When you look at year-over-year expansion in VC investment in the region, startup formation and incubators, the African continent is one of the fastest-growing technology markets in the world — even if today, by monetary value, it’s tiny by Shenzhen or Silicon Valley standards.

Three of the top destination countries for startup investment — Kenya, Nigeria and South Africa — collectively surpassed $1 billion in investment for the first time in 2018, with fintech businesses currently receiving the bulk of the capital and dealflow, according to Partech and WeeTracker stats.

By most accounts, Dorsey’s first foot forward last November was to make himself a student of the continent’s innovation scene — but specifically as it relates to fintech (and by association, his affiliation with Square and latterly Bitcoin).

“It was more them listening than anything else. Not just Jack, but the other senior members of his team,” CcHub’s CEO Bosun Tijani said of Dorsey’s meetings at the incubator.

After acquiring Kenya’s iHub, CcHub is the largest incubator in Africa. Other members of Dorsey’s team who joined him there included Twitter CTO Parag Agrawal and Product Lead Kayvon Beykpour.

“[Dorsey] said the main reason [he was in Ethiopia and Africa] was to listen and to learn what’s going on in the region,” said Ice Addis’ Markos Lemma .

Jack Dorsey CcHub Bosun Tijani Damilola Teidi

Dorsey with CcHub’s Bosun Tijani and Damilola Teidi

Over recent years, Nigeria has become Africa’s leader in startup formation, VC, and the entry of big tech players, such as Facebook — which opened an incubator in Lagos in 2018.

Since 2014, the country of 200 million has held the dual distinction as Africa’s most populous nation and largest economy. This makes it a compelling market for fintech and social media apps.

Twitter in Africa, according to sources, was less of a topic during Jack Dorsey’s meetings with founders and techies. This makes some sense. The service has lower penetration in the region estimated at 7.46%, higher than Instagram but lower than Pinterest — and that essentially means that the business opportunities there are fewer, since the majority of Twitter’s revenues comes from advertising.

“The only concrete thing in all this communication…is he seems to be interested in Bitcoin,” said Tijani.

Markos Lemma had the same takeaway after talking with Dorsey. “I think he’s specifically interested in Bitcoin,” he said.

Crypto

Dorsey’s crypto focus in Africa isn’t such a surprise, given his bullish stance on Bitcoin and blockchain-based technology.

In October, he invested $10 million in CoinList, a startup that facilities and manages token sales. And rather than create its own cryptocurrency, like Facebook’s Libra experiment, Square is using Bitcoin as the basis for its digital-currency strategy. The company added Bitcoin trades to CashApp, its P2P payment and investment product, in 2018 and its Square Crypto effort announced this year aims to “support and promote Bitcoin” through open source development.

A recent interview with Australia’s Financial Review could offer further insight into Dorsey’s crypto Africa vision.

“I think the internet will have a native currency and anything we can do to make that happen we’ll do,” he said in reference to Square’s moves.

“In the long term it will help us be more and more like an internet company where we can launch a product…and the whole world can use it, instead of having to go from market to market, to bank to bank to bank and from regulatory body to regulatory body.”

Square Bitcoin

What Dorsey is describing, in part, is the primary use case for cryptocurrency in Africa — where there remain all kinds of inefficiencies around moving money. The continent’s people pay the highest remittance costs in the world largely due to fragmented (and often inadequate) financial infrastructure and expensive cross-border transaction costs.

By several estimates, Africa is also home to the largest share of the world’s banked and underbanked consumer and SME populations.

Roughly 66% of Sub-Saharan Africa’s 1 billion people don’t have a bank account, according to World Bank data.

There are hundreds of payments startups across the region looking to move that needle by getting these people on the financial map — and more opportunistically, getting them to use their products.

To be fair, the adoption of digital finance products, such as M-Pesa in Kenya, have succeeded in reaching tens of millions.

A characteristic of successful African fintech products, however, is that their use has been geographically segregated, with few apps able to scale widely across borders. Some of that relates to vastly different regulatory structures and the difficulty in shaping product-market-fit from country to country.

Cryptocurrency’s potential to bypass inefficient or deficient finance structures has been getting attention in Africa.

The last two years saw several ICOs on the continent. One of the largest coin offerings ($7 million) was in 2018 by SureRemit — a startup that launched a crypto-token aimed at Africa’s incoming and intra-country remittance markets.

SureRemit’s CEO, Adeoye Ojo, sees the relevance and timing of Jack Dorsey’s interest in cryptocurrencies on the continent.

“Right now a lot of people and governments in Africa are aware of blockchain and cryptocurrencies, compared to two years ago, and asking questions about how this can be leveraged; what kind of products can we build around this,” Ojo told TechCrunch.

Bitcoin, according to Ojo, is finding utility on the continent. “It has helped people with value transfer significantly. A lot of businesses trying to make payments outside Nigeria…frustrated with access to forex or access to USD, are leveraging Bitcoin to make payments directly to vendors or suppliers in Asia and Europe,” he said.

On business motivations for Dorsey’s move to Africa, “I think he is definitely looking at the opportunity to get more people to adopt payments on Bitcoin, buying Bitcoin with Square here,” Ojo said — based on the collective information he’s followed re Dorsey’s crypto motives and what emerged from Jack’s recent trip. 

Square has yet to launch any services in Africa, but if there is a business purpose to Dorsey’s residency, one could be considering how and if the company has scope for building out services in the region, specifically one based around cryptocurrency.

SureRemit CEO Adeoye Ojo believes Dorsey could also look to establish a unique African Bitcoin exchange.

But Ojo underscored the specific hurdles to cryptocurrency adoption on the continent. The first is regulation. Regulatory reviews on digital-currency use are ongoing in major economies Nigeria and Kenya. South Africa’s Central Bank is considering rules that would limit use of cryptocurrencies for foreign transfers.

“Even if the application for crypto works here, if the regulations that come forward don’t support it, it won’t happen,” said Ojo.

As with other parts of the world, Africa also faces a trust issue on digital currency adoption, he added, due to Bitcoin’s implication in several scams — most notably to defraud millions of Nigerians in the Mavrodi Mundial Moneybox (MMM) ponzi scheme.

“For many Nigerians, their first introduction to Bitcoin was this MMM scam…People have been adopting  mobile money in Africa, but it’s gonna take a bit of market education for them to understand using Bitcoin isn’t just some scam,” he said.

Advice for Dorsey

On where Dorsey should spend time on his return, Cellulant CEO Ken Njoroge, thinks Kenya is a must, given its lead as one of the top countries in the world for mobile-money adoption.

“Coming to live in the ecosystem is a good thing…it’s the best way to really understand…and get the nuances of business in Africa,” he said.

Cellulant CEO Ken Njoroge

Njoroge, whose Nairobi-based fintech company processes payments in 35 African countries, also suggested Dorsey understand any tech play in Africa requires a long-game commitment, given the infrastructure challenges in the ecosystem compared to others.

On that topic, Ice Addis co-founder Markos Lemma suggested Dorsey provide founders advice on operating around and influencing tech-regulation. “He’s had a lot experience navigating the U.S. and other markets with Twitter and Square. I don’t know any entrepreneur in Ethiopia or other African markets who has that experience navigating and negotiating regulations,” he said.

For all the likelihood Dorsey’s pending move could be motivated by Square and Bitcoin, three of the founders interviewed by TechCrunch — Bosun Tijani, Ken Njoroge, and Markos Lemma — underscored the rise of Twitter in Africa’s civic and political spheres.

Square doesn’t operate in Africa but Twitter is the fourth most used social media app on the continent and sells ads in Africa through partner, Ad Dynamo, a Twitter spokesperson confirmed.

Social Media Stats 2019 Africa“Twitter is quite powerful in Nigeria,” CcHub’s CEO said of the social media platform in the country, which has been plagued by theft of state resources in the hundreds of billions.

“It’s not just a social media platform for Nigeria. It’s changing the dynamics between people with power and those that they’re meant to serve,” Tijani explained.

Twitter (along with Facebook) has also been implicated in Africa’s first (notable) social media political interference campaigns.

“There’s a lot of hate speech and misinformation that’s been showing up on social media,” said Ice Addis’ Markos Lemma. “With [Ethiopia’s] 2020 elections on the horizon, I think it would be important for him to address how Twitter can mitigate that risk.”

Dorsey has faced flak from some analysts and Twitter board members for his planned move outside the U.S., given risks associated with Twitter and the upcoming American election.

So Dorsey’s 2020 Africa move could certainly uncover opportunities for cryptocurrency and Square on the continent.

It could also become a reminder that wherever he travels so too do the complications of his social media company back home.

Researchers find making a sick reef sound like a healthy one could help its recovery

A new study, published in Nature Communications (via Washington Post), found promising early results from an experiment wherein sounds that you’d hear from a healthy reef are played back at a reef that’s dying. It may sound a bit like a bait-and-switch, but previous research has shown that one way to help reefs that are under duress is to encourage diverse and abundant fish populations, which can help counteract the downward spiral that ultimately leads to reef death.

Over the course of six weeks, researchers from the UK and Australia played audio recordings over speakers installed underwater at dead patches found in Australia’s Great Barrier Reef. The recordings were taken from healthy sections, and included a range of sounds typical to thriving coral communities, including noises made by fish, shrimp, molluscs and other reef-dwellers. These sounds act as cues for young fish looking to settle down and establish communities of their own.

The researchers found that up to twice as many fish ended up populating the reefs where these sounds were played, versus areas in similar states of decay where they were not. They also found that there was more biodiversity at these locations, with up to 50 percent more species in the mix vs. the control sites, and that the new denizens who did make their way to the reefs with the artificial sounds tended to set up to stay.

On its own, bringing fish populations back to dead and dying reefs won’t reverse the damage done. But this technique could be used in tandem with others being developed by scientists and researchers, including re-planting fresh coral and developing heat-resistant coral strains, to return vibrancy and life to portions of the oceans’ reefs where human activity has taken a serious toll.

Facebook bowed to a Singapore government order to brand a news post as false

Facebook added a correction notice to a post by a fringe news site that Singapore’s government said contained false information. It’s the first time the government has tried to enforce a new law against ‘fake news’ outside its borders.

The post by fringe news site States Times Review (STR), contained “scurrilous accusations” according to the Singapore government.

The States Times Review post contained accusations about the arrest of an alleged whistleblower and election-rigging.

Singapore authorities had previously ordered STR editor Alex Tan to correct the post but the Australian citizen said he would “not comply with any order from a foreign government”.

Mr Tan, who was born in Singapore, said he was an Australian citizen living in Australia and was not subject to the law. In a follow-up post, he said he would “defy and resist every unjust law”. He also posted the article on Twitter, LinkedIn and Google Docs and challenged the government to order corrections there as well.

On the note Facebook said it “is legally required to tell you that the Singapore government says this post has false information”. They then embedded the note at the bottom of the original post, which was not altered. Only social media users in Singapore could see the note.

In a statement Facebook said it had applied the label as required under the “fake news” law. The law, known as the Protection from Online Falsehoods and Manipulation bill, came into effect in October.

According to Facebook’s “transparency report” it often blocks content that governments allege violate local laws, with nearly 18,000 cases globally in the year to June.

Facebook — which has its Asia headquarters in Singapore — said it hoped assurances that the law would not impact on free expression “will lead to a measured and transparent approach to implementation”.

Anyone who breaks the law could be fined heavily and face a prison sentence of up to five years. The law also bans the use of fake accounts or bots to spread fake news, with penalties of up to S$1m (£563,000, $733,700) and a jail term of up to 10 years.

Critics say the law’s reach gives Singapore’s government could jeopardize freedom of expression both in the city-state and outside its borders.

Anti-bot startup Kasada raises $7M in Series A from CIA’s venture fund In-Q-Tel

Kasada, an anti-bot startup we profiled earlier this year, has raised $7 million in its Series A led by In-Q-Tel, the non-profit venture arm of the intelligence community.

The Sydney and Chicago-based company helps to fight online bots using its proprietary anti-bot platform Polyform.

Bots don’t just pummel websites with junk traffic to try to knock them offline, they’re used to automate fraudulent purchases and scraping content from sites like airlines and entertainers to try to undercut prices. Bots cost businesses in unnecessary web server and bandwidth costs each year.

The company’s anti-bot platform puts an unsolvable cryptographic challenge on the outer edges of a customer’s website. The platform uses fingerprinting technology to determine if a visitor is a human. If the platform detects a bot, it tricks the bot into trying to solve the impossible math puzzle, churning up server and memory resources on the server from which the bot operates and costing the bot operator in excessive cloud resources.

Kasada’s chief executive and co-founder Sam Crowther said the venture firm’s backing was a “strong validation” of its technology and its team.

The company, which launched in 2015, said it has doubled its engineering and customer-facing teams in the past year, and appointed Pascal Podvin, a former field operations executive, to help ramp up its revenue operations.

In-Q-Tel’s Peter Tague said he was “impressed” by Kasada’s technology. It also marks In-Q-Tel’s first investment in Australia after the venture firm opened an office in Sydney late last year. To date, In-Q-Tel has invested in enterprise data cloud platform Cloudera, cybersecurity giant FireEye, open-source database maker MongoDB, and surveillance software firm Palantir.

The $7 million round will help Kasada grow and expand its customer base, as the company faces increasing competition from its rivals. The fundraise comes hot on the heels of networking and content delivery giant Cloudflare launching its own anti-bot “fight mode” feature — a free opt-in offering to its customers — which the company said will help “frustrate” bots from targeting and attacking its customers.

Crowther said Cloudflare’s own efforts was a “testament” to the importance of ant-bot services, but said that Kasada covers ground where others haven’t.

Microsoft’s HoloLens 2 starts shipping

Earlier this year, at Mobile World Congress in Barcelona, Microsoft announced the second generation of its HoloLens augmented reality visor. Today, the $3,500 HoloLens 2 is going on sale in the United States, Japan, China, Germany, Canada, United Kingdom, Ireland, France, Australia and New Zealand, the same countries where it was previously available for pre-order.

Ahead of the launch, I got to spend some time with the latest model, after a brief demo in Barcelona earlier this year. Users will immediately notice the larger field of view, which still doesn’t cover your full field of view, but offers a far better experience compared to the first version (where you often felt like you were looking at the virtual objects through a stamp-sized window).

The team also greatly enhanced the overall feel of wearing the device. It’s not light, at 1.3 pounds, but with the front visor that flips up and the new mounting system that is far more comfortable.

In regular use, existing users will also immediately notice the new gestures for opening up the Start menu (this is Windows 10, after all). Instead of a ‘bloom’ gesture, which often resulted in false positives, you now simply tap on the palm of your hand, where a Microsoft logo now appears when you look at it.

Eye tracking, too, has been greatly improved and works well, even over large distances, and the new machine learning model also does a far better job at tracking all of your fingers. All of this is powered by a lot of custom hardware, including Microsoft’s second-generation ‘holographic processing unit.’

Microsoft has also enhanced some of the cloud tools it built for HoloLens, including Azure Spatial Anchors that allow for persistent holograms in a given space that anybody else who is using a holographic app can then see in the same spot.

Taken together, all of the changes result in a more comfortable and smarter device, with reduced latencies when you look at the various objects around you and interact with them.

Facebook is being leaned on by US, UK, Australia to ditch its end-to-end encryption expansion plan

Here we go again. Western governments are once again dialing up their attack on end-to-end encryption — calling for either no e2e encryption or backdoored e2e encryption so platforms can be commanded to serve state agents with messaging data in “a readable and usable format.”

U.S. Attorney General William Barr, acting U.S. Homeland Security Secretary Kevin McAleenan, U.K. Home Secretary Priti Patel and Australia’s minister for home affairs, Peter Dutton, have co-signed an open letter to Facebook calling on the company to halt its plan to roll out e2e encryption across its suite of messaging products. Unless the company can ensure what they describe as “no reduction to user safety and without including a means for lawful access to the content of communications to protect our citizens,” per a draft of the letter obtained by BuzzFeed ahead of publication later today.

If platforms have e2e encryption, a “means for lawful access” to the content of communications sums to a backdoor in the crypto — presumably along the lines of the “ghost protocol” that U.K. spooks have been pushing for the past year. AKA an “exceptional access mechanism” that would require platforms CC’ing a state/law enforcement agent as a silent listener to eavesdrop on a conversation on warranted request.

Facebook -owned WhatsApp was one of a number of tech giants joining an international coalition of civic society organizations, security and policy experts condemning the proposal as utter folly earlier this year.

The group warned that demanding a special security hole in encryption for law enforcement risks everyone’s security by creating a vulnerability which could be exploited by hackers. Or indeed, service providers themselves. But the age-old “there’s no such thing as a backdoor just for you” warning appears to have fallen on deaf ears.

In their open letter to Facebook, the officials write: “Companies should not deliberately design their systems to preclude any form of access to content, even for preventing or investigating the most serious crimes. This puts our citizens and societies at risk by severely eroding a company’s ability to detect and respond to illegal content and activity, such as child sexual exploitation and abuse, terrorism, and foreign adversaries’ attempts to undermine democratic values and institutions, preventing the prosecution of offenders and safeguarding of victims. It also impedes law enforcement’s ability to investigate these and other serious crimes.”

Of course, Facebook is not the only messaging company using e2e encryption, but it’s in the governments’ crosshairs now on account of a plan to expand its use of e2e crypto — announced earlier this year, as part of a claimed “pivot to privacy.” And, well, on account of it having two billion+ users.

The officials claim in the letter that “much” of the investigative activity, which is critical to protecting child safety and fighting terrorism, “will no longer be possible if Facebook implements its proposals as planned.”

“Risks to public safety from Facebook’s proposals are exacerbated in the context of a single platform that would combine inaccessible messaging services with open profiles, providing unique routes for prospective offenders to identify and groom our children,” they warn, noting that the Facebook founder expressed his own concerns about finding “the right ways to protect both privacy and safety.”

In March, Mark Zuckerberg also talked about building “the appropriate safety systems that stop bad actors as much as we possibly can within the limits of an encrypted service.”

Which could, if you’re cynically inclined, be read as Facebook dangling a carrot to governments — along the lines of: “We might be able to scratch your security itch, if your regulators don’t break up our business.”

Ironically enough, the high-profile intervention by officials risks derailing Facebook’s plan to unify the backends of its platforms — widely interpreted as a play to make it harder for regulators to act on competition concerns and break up Facebook’s business empire along messaging product lines: Facebook, WhatsApp, Instagram.

Or, well — alternative scenario — Facebook could choose to strip e2e crypto from WhatsApp, which is currently the odd one out in its messaging suite on account of having proper crypto. Governments would sure be happy if it did that. But it’s the opposite of what Zuckerberg has said he’s planning.

Curiously, the draft letter makes no mention of platform metadata. Which is not shielded by even WhatsApp’s e2e encryption. And thus can be extracted — via a warrant — in a readable format for legit investigative purposes. And let’s not forget U.S. spooks are more than happy to kill people based on metadata.

Instead the officials write: “We must find a way to balance the need to secure data with public safety and the need for law enforcement to access the information they need to safeguard the public, investigate crimes, and prevent future criminal activity. Not doing so hinders our law enforcement agencies’ ability to stop criminals and abusers in their tracks.”

The debate is being framed by spooks and security ministers as all about content.

Yet a scrambled single Facebook backend would undoubtedly yield vastly more metadata, and higher-resolution metadata, on account of triangulation across the services. So it really is a curious omission.

We’ve reached out to Facebook for its reaction to the letter. BuzzFeed reports that it sent a statement in which it strongly opposes government attempts to build backdoors. So if Facebook holds firm to that stance it looks like another big crypto fight could well be brewing. À la Apple versus the FBI.

Update: Facebook has now sent us this statement:

We believe people have the right to have a private conversation online, wherever they are in the world. As the US and UK governments acknowledge, the CLOUD Act allows for companies to provide available information when they receive valid legal requests and does not require companies to build backdoors.

We respect and support the role law enforcement has in keeping people safe. Ahead of our plans to bring more security and privacy to our messaging apps, we are consulting closely with child safety experts, governments and technology companies and devoting new teams and sophisticated technology so we can use all the information available to us to help keep people safe.

End-to-end encryption already protects the messages of over a billion people every day. It is increasingly used across the communications industry and in many other important sectors of the economy. We strongly oppose government attempts to build backdoors because they would undermine the privacy and security of people everywhere.

Bilateral Data Access Agreement

In another announcement being made today, the U.K. and the U.S. have signed a “world first” Bilateral Data Access Agreement that’s intended to greatly speed up electronic data access requests by their respective law enforcement agencies.

The agreement is intended to replace the current process, which sees requests for communications data from law enforcement agencies submitted and approved by central governments via a process called Mutual Legal Assistance — which can take months or even years.

Once up and running, the claim is the new arrangement will see the process reduced to a matter of weeks or even days.

The agreement will work reciprocally with the U.K. getting data from U.S. tech firms, and the U.S. getting access from U.K. communication service providers (via a U.S. court order).

Any request for data must be made under an authorisation in accordance with the legislation of the country making the request and will be subject to independent oversight or review by a court, judge, magistrate or other independent authority, per the announcement.

The U.K. also says specifically that it has obtained “assurances” which are in line with the government’s continued opposition to the death penalty in all circumstances. Which is only mildly reassuring given the home secretary’s previous views on the topic.

The announcement also makes a point of noting the data access agreement does not change anything about how companies can use encryption — nor prevent them from encrypting data.

For interfering with proper encryption the plan among this trio of signals intelligence allies is, seemingly, to reach for the old PR lever and apply public pressure. So, yeah, here we go again.

Salesforce is building an office tower in Sydney, pledging 1,000 new jobs in the next five years

Salesforce announced this week that it’s building another shiny tower. This one will be in Sydney with views of the harbor and the iconic Sydney Opera House. The company has also committed to adding 1,000 new jobs in the next five years and to building the tower in a sustainable fashion.

In fact, Salesforce is pledging the new tower will be one of the greenest buildings in the country when they are finished. “The building has achieved Sydney’s first-ever WELL core and shell Platinum pre-certification, the highest obtainable pre-certification, and will achieve a 6 Star Green Star Design and As-Built rating, representing world excellence in sustainable design,” Salesforce’s Elizabeth Pinkham wrote in a blog post announcing the project.

As is Salesforce’s way, it’s going to be the tallest building in the city when it’s done, and will sit in the Circular Quay, part of the central business district in the city, and will house shops and restaurants on the main floor. As with all of its modern towers, it’s going to dedicate the top floor to allow for flexible use for employees, customers and partners. The building will also boast a variety of spaces including a Salesforce Innovation Center for customers along with social lounges, mindfulness areas and a variety of spaces for employees to collaborate.

Salesforce has had a presence in Sydney for more than 15 years, according to the company, and this tower is an attempt to consolidate that presence into a single, modern space with room to expand over the next five years and add hundreds of new employees.

The announcement comes on the heels of the one earlier this year that the company was building a similarly grand project in Dublin to centralize operations in that city where it has had a presence since 2001.

Google brings its Jacquard wearables tech to Levi’s Trucker Jacket

Back in 2015, Google’s ATAP team demoed a new kind of wearable tech at Google I/O that used functional fabrics and conductive yarns to allow you to interact with your clothing and, by extension, the phone in your pocket. The company then released a jacket with Levi’s in 2017, but that was expensive, at $350, and never really quite caught on. Now, however, Jacquard is back. A few weeks ago, Saint Laurent launched a backpack with Jacquard support, but at $1,000, that was very much a luxury product. Today, however, Google and Levi’s are announcing their latest collaboration: Jacquard-enabled versions of Levi’s Trucker Jacket.

These jackets, which will come in different styles, including the Classic Trucker and the Sherpa Trucker, and in men’s and women’s versions, will retail for $198 for the Classic Trucker and $248 for the Sherpa Trucker. In addition to the U.S., it’ll be available in Australia, France, Germany, Italy, Japan and the U.K.

The idea here is simple and hasn’t changed since the original launch: a dongle in your jacket’s cuff connects to conductive yarns in your jacket. You can then swipe over your cuff, tap it or hold your hand over it to issue commands to your phone. You use the Jacquard phone app for iOS or Android to set up what each gesture does, with commands ranging from saving your location to bringing up the Google Assistant in your headphones, from skipping to the next song to controlling your camera for selfies or simply counting things during the day, like the coffees you drink on the go. If you have Bose noise-canceling headphones, the app also lets you set a gesture to turn your noise cancellation on or off. In total, there are currently 19 abilities available, and the dongle also includes a vibration motor for notifications.

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What’s maybe most important, though, is that this (re-)launch sets up Jacquard as a more modular technology that Google and its partners hope will take it from a bit of a gimmick to something you’ll see in more places over the next few months and years.

“Since we launched the first product with Levi’s at the end of 2017, we were focused on trying to understand and working really hard on how we can take the technology from a single product […] to create a real technology platform that can be used by multiple brands and by multiple collaborators,” Ivan Poupyrev, the head of Jacquard by Google told me. He noted that the idea behind projects like Jacquard is to take things we use every day, like backpacks, jackets and shoes, and make them better with technology. He argued that, for the most part, technology hasn’t really been added to these things that we use every day. He wants to work with companies like Levi’s to “give people the opportunity to create new digital touchpoints to their digital life through things they already have and own and use every day.”

What’s also important about Jacquard 2.0 is that you can take the dongle from garment to garment. For the original jacket, the dongle only worked with this one specific type of jacket; now, you’ll be able to take it with you and use it in other wearables as well. The dongle, too, is significantly smaller and more powerful. It also now has more memory to support multiple products. Yet, in my own testing, its battery still lasts for a few days of occasional use, with plenty of standby time.

jacquard dongle

Poupyrev also noted that the team focused on reducing cost, “in order to bring the technology into a price range where it’s more attractive to consumers.” The team also made lots of changes to the software that runs on the device and, more importantly, in the cloud to allow it to configure itself for every product it’s being used in and to make it easier for the team to add new functionality over time (when was the last time your jacket got a software upgrade?).

He actually hopes that over time, people will forget that Google was involved in this. He wants the technology to fade into the background. Levi’s, on the other hand, obviously hopes that this technology will enable it to reach a new market. The 2017 version only included the Levi’s Commuter Trucker Jacket. Now, the company is going broader with different styles.

“We had gone out with a really sharp focus on trying to adapt the technology to meet the needs of our commuter customer, which a collection of Levi’s focused on urban cyclists,” Paul Dillinger, the VP of Global Product Innovation at Levi’s, told me when I asked him about the company’s original efforts around Jacquard. But there was a lot of interest beyond that community, he said, yet the built-in features were very much meant to serve the needs of this specific audience and not necessarily relevant to the lifestyles of other users. The jackets, of course, were also pretty expensive. “There was an appetite for the technology to do more and be more accessible,” he said — and the results of that work are these new jackets.

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Dillinger also noted that this changes the relationship his company has with the consumer, because Levi’s can now upgrade the technology in your jacket after you bought it. “This is a really new experience,” he said. “And it’s a completely different approach to fashion. The normal fashion promise from other companies really is that we promise that in six months, we’re going to try to sell you something else. Levi’s prides itself on creating enduring, lasting value in style and we are able to actually improve the value of the garment that was already in the consumer’s closet.”

I spent about a week with the Sherpa jacket before today’s launch. It does exactly what it promises to do. Pairing my phone and jacket took less than a minute and the connection between the two has been perfectly stable. The gesture recognition worked very well — maybe better than I expected. What it can do, it does well, and I appreciate that the team kept the functionality pretty narrow.

Whether Jacquard is for you may depend on your lifestyle, though. I think the ideal user is somebody who is out and about a lot, wearing headphones, given that music controls are one of the main features here. But you don’t have to be wearing headphones to get value out of Jacquard. I almost never wear headphones in public, but I used it to quickly tag where I parked my car, for example, and when I used it with headphones, I found using my jacket’s cuffs easier to forward to the next song than doing the same on my headphones. Your mileage may vary, of course, and while I like the idea of using this kind of tech so you need to take out your phone less often, I wonder if that ship hasn’t sailed at this point — and whether the controls on your headphones can’t do most of the things Jacquard can. Google surely wants Jacquard to be more than a gimmick, but at this stage, it kind of still is.

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U.S. security experts admit China’s 5G dominance, push for public investment

U.S. security experts are conceding that China has won the race to develop and deploy the 5G telecommunications infrastructure seen as underpinning the next generation of technological advancement and warn that the country and its allies must develop a response — and quickly.

The challenge we have in the development of the 5G network, at least in the early stage, is the dominance of the Huawei firm,” said Tom Ridge, the former US Secretary of Homeland Security and governor of Pennsylvania on a conference call organized recently by Global Cyber Policy Watch. “To embed that technology into a critical piece of infrastructure which is telecom is a huge national security risk.” 

Already some $500 million is being allocated to the development of end-to-end encryption software and other technologies through the latest budget for the U.S. Department of Defense, but these officials warn that the money is too little and potentially too late, unless more drastic moves are made.

(You can also hear more about this at TechCrunch Disrupt in SF next week, where we’ll be interviewing startup founders and investors who build businesses by working with governments.)

The problems posed by China’s dominance in this critical component of new telecommunications technologies cut across public and private sector security concerns. They range from intellectual property theft to theft of state secrets and could curtail the ways the U.S. government shares critical intelligence information with its allies, along with opening up the U.S. to direct foreign espionage by the Chinese government, Ridge and other security experts warned.