HuffPost is reportedly on the auction block

Late last night the Financial Times reported that HuffPost, arguably one of the crown jewels of Verizon Media Group’s remaining network of media properties (which includes TechCrunch), is up for sale.

Verizon has been shedding media properties in a retreat from the strategy that it had begun to execute with the acquisition of AOL for $4.4 billion back in 2015. Through the AOL deal, then-chief executive Tim Armstrong became the architect of the telecommunications company’s media and advertising strategy.

Armstrong’s vision was to roll up as much online real estate as he could while creating a high technology advertising architecture on the back-end that could better target consumers based on their media consumption (which the telecom company would also own).

The idea was to provide a broad-based competitor to the reach of ad platforms on Google and Facebook which were also targeting users based on their browsing history and interests. The benefit that Google and Facebook had was that they had a more holistic view of what consumers did online and they positioned themselves as a distribution channel between media companies and users — essentially redistributing their articles and videos and hoovering up the ad dollars that had previously gone to those media companies.

The multi-billion dollar land grab continued when Verizon paid $4.5 billion for Yahoo in 2017.

Now it appears that Verizon has a multi-billion dollar case of buyer’s remorse. Part of the billions that Verizon spent on Yahoo was for the early social network Tumblr, which Yahoo had acquired for $1.1 billion back in 2013.

Earlier this year Verizon unloaded Tumblr for the cost of a luxury Manhattan apartment. That $3 million sale was presaged by the significant fall from grace of other former high-flying media and tech properties.

Vice was once worth $5.7 billion at the height of the media investment bubble, but earlier this year Disney wrote down its stake in the company to virtually nothing.

At least Vice is emerging as a survivor. the company has rolled up Refinery29. Vox Media is also doing well in the new world of media. It bought Recode back in 2015 and recently acquired the publisher behind New York Magazine to expand its purview into paper publications and get its hands on the popular New York websites Intelligencer, The Cut, Vulture, and Grub Street.

Other publications like Hello Giggles, which was founded by the actress Zooey Deschanel, were sold to Time Magazine. High-fliers like Buzzfeed, HuffPost, Vice and Vox have all had to lay off staff in recent months.

It’s been a wild ride for HuffPost, which began in 2005 as a collection of celebrity bloggers brought together under the auspices of Arianna Huffington, from whom the site took its name.

AOL acquired The Huffington Post back in 2011 in a deal that was valued at $315 million less than a year after picking up TechCrunch for $25 million.

Verizon announced layoffs across its media properties at the beginning of the year. It cut roughly 7 percent of its staff — or around 800 jobs — including some at HuffPost.

In a statement to the Financial Times, Verizon said that it would not comment on rumors and speculation.

Neither Verizon Media nor HuffPost responded to a request for comment by the time of publication.

Why venture capital firms need culture experts

When Susan Fowler’s 2017 blog post shined a light on Uber’s raucous culture, outlining rampant harassment and sexism, a debate erupted. What role do the deep-pocketed investors behind the company, those who allowed it to scale to monstrous proportions, have in developing and nurturing its culture? Entrepreneurs and venture capitalists themselves wondered aloud, how involved should a venture fund be in early-stage recruiting processes and ensuring a safe environment for employees? If a culture is bad, unsafe, damaging, is it the VC’s fault?

Late-stage venture funds, for the most part, miss the opportunity to deeply impact their portfolio companies’ cultures. When they invest, typically large sums of capital in companies with hundreds of employees and multiple offices, the company’s culture is formed and, as Uber and others have proven, rebuilding culture a decade in is no easy challenge. Early-stage funds, however, the people that write the very first check in startups, have a front-row seat to decisions crucial to defining how a company operates and treats its employees in the long term. These people, if they care to, have the power to help determine key hires and establish company values, norms and behaviors from the get-go.

This week, San Francisco-based early-stage fund True Ventures hired its first-ever vice president of culture, a move that suggests VCs are taking concrete steps toward further involving themselves in the company-building process from a D&I and hiring perspective. Madeline Kolbe Saltzman joins the firm, which raised $635 million across two new funds last year, from Handshake, where she was the VP of people and talent.

“There’s a responsibility to guide the company and the founder to being the best they can be, and that involves paying attention to who you’re hiring and how people are being treated,” Saltzman tells TechCrunch. “If we can come in and establish inclusive norms, my hope is that our companies will scale inclusively as well.”

Most venture capitalists are in regular communication with active investments. Early-stage investors, particularly, are very involved with building businesses, facilitating hires and scaling. But as they seek to decrease cash-burn or find product-market fit, VCs are not often very concerned with issues of diversity and inclusion, something that’s became increasingly important as companies are finally being held accountable for the diversity of their workforces.

How Automattic wants to build the operating system of the web

Automattic, the company behind WordPress.com, WooCommerce, Longreads, Simplenote and soon Tumblr, is now worth $3 billion. But its founder and CEO Matt Mullenweg has a bigger goal. He wants to make the web better, more open and diverse.

With the rise of social networks and closed platforms, Automattic’s mission statement has never sounded so important. Automattic doesn’t want to be the hot new startup. It wants to build a strong foundation to empower content creators for decades to come.

In an interview this week, Matt Mullenweg discussed why he raised $300 million from Salesforce Ventures, what he thinks of the current state of the web and how Automattic has a shot at building the open-source operating system of the web. The interview was edited for clarity and brevity.

(Photo Credit: Christopher Michel / Flickr under a CC BY 2.0 license)


Romain Dillet: Tell me more about how much money you’ve raised, who you’ve raised from.

The portrait of an avatar as a young artist

In this episode of Flux I talk with LaTurbo Avedon, an online avatar who has been active as an artist and curator since 2008.  Recently we’ve seen a wave of next-gen virtual stars rise up, from Lil Miquela in the west to pop-stars like Kizuna AI in the east. As face and body tracking make real-time avatar representation accessible, what emergent behaviors will we see? What will our virtual relationships evolve? How will these behaviors translate into the physical world when augmented reality is widespread?
LaTurbo was early to exploring these questions of identity and experimenting with telepresence. She has shape-shifted across media types, spending time in everything from AOL and chat rooms, to MMOs, virtual worlds and social media platforms. In this conversation she shares her thoughts on how social networks have breached our trust, why a breakup is likely, and how users should take control of their data. We get into the rise of battle royale gaming, why multiplicity of self is important, and how we can better express agency and identity online.

An excerpt of our conversation is published below. Full podcast on iTunes and transcript on Medium.

***

ALG: Welcome to the latest episode of Flux. I am excited to introduce LaTurbo Avedon. LaTurbo is an avatar and artist originating in virtual space, per her website and online statement. Her works can be described as research into dimensions, deconstructions, and explosion of forms exploring topics of virtual authorship and the physicality of the Internet. LaTurbo has exhibited all over the world from Peru to Korea to the Whitney in New York. I’m thrilled to have her on the show. Metaphorically of course. It’s just me here in the studio. LaTurbo is remote. 

When we got the demo file earlier I was excited to hear the slight Irish lilt in your robotic voice. As a Brit I feel like we have a bond there.

LaTurbo: Thank you for the patience. It is like a jigsaw puzzle, our voices together.

ALG: Of course it’s all about being patient as we try out new things on the frontier. And you represent that frontier. This show is about people that are pushing the boundaries in their fields. A lot of them are building companies, some are scientists. Recently we’ve had a few more artists on and that’s something I believe is important in all of these fields. Because you’re taking the time to do the hard work and think about technology and its impact and how we can stretch it and use it in different ways and broaden our thinking. You play an important role.

LaTurboWe will get things smoothed out eventually as my vocalization gets easier and more natural with better tools. Alice I appreciate you trekking out here with me and trying this format out.

ALG: I love a good trek. Maybe you can give a brief intro on who is LaTurbo. I believe you started in Second Life. I’d love to hear about those origins. Phil Rosedale was one of the first people I interviewed on this podcast, the founder of Second Life. Shout out to Phil. I’d love to hear what’s been your journey since then. Oh and also happy 10th birthday.

“I’ve spent decades inside of virtual environments, in many ways I came of age alongside the Internet. My early years in my adolescence in role-playing games. From the early years I was enamored by cyber space”

LaTurboI know that it is circuitous at times but this process has made me work hard to explore what it takes to be here like this. Well I started out early on in the shapes of America Online, intranets, and private message boards. Second Life opened this up incredibly, taking things away from the closed worlds of video games. We had to work even harder to be individuals in early virtual worlds using character editors, roleplaying games, and other platforms in shared network spaces. This often took the shape of default characters — letting Final Fantasy, Goldeneye, or other early game titles be the space where we performed alternative identities.

ALG: If you’re referring to Goldeneye on N64 I spent considerable time on it growing up. So I might have seen you running around there.

LaTurbo: It was a pleasure to listen to your conversation with Philip Rosedale as he continues to explore what comes next, afterwards, in new sandboxes. What was your first avatar?

ALG: I did play a lot of video games growing up. I was born in Hong Kong and was exposed mostly to the Nintendo and Sega side of things, so maybe one of those Mario Kart characters — Princess Peach or really I went for Yoshi if those count as avatars. I’d love to get into your experience in gaming. You said you started off exploring more closed world games and then you discovered Second Life. You’ve spent a lot of time in MMORPGs and obviously that’s one of the main ways that people have engaged with avatars. I’d love to hear how your experiences have been in different games and any commentary on the worlds you’re spending time in now.

LaTurbo: I think that even if they weren’t signature unique identities or your own avatar, those forms of early video games were a first key to understand more about facets of yourself through them. For me gaming is like water being added to the creative sandbox. There is fusion inside of game worlds — narrative, music, performance, design, problem solving, communication, so many different factors of life and creativity that converge within a pliable file. Some of the most Final Fantasies of games are now realities. Users move place to place using many maps and system menus on their devices. The physical world so closely bonded by users like me that brought bits of the game out with us. Recently I spent several months wandering around inside of Red Dead Redemption 2. I enjoyed the narrative of the main storyline though I was far more interested in having quiet moments away from all of the violence. I named my horse Sontag and went out exploring, taking photographs and using slow motion game exploits to make videos. Several months as the weary cowboy named Arthur, and then I carried on my way. I take bits and pieces with me on the way.

LaTurbo’s Overwatch avatar

ALG: As you’ve gone across different games and platforms like Red Dead Redemption 2 are there specific people you’ve made friends with? How have your friendships formed in these different communities and do they travel between games? 

LaTurbo: I have had many gaming friends. Virtual friends overlap between all of these worlds. My Facebook friends are not very different than those I fight with in Overwatch or the ones I challenge scores with in Tetris Effect.

ALG: One thing you’ve said about gaming and I’ll read the quote straight out:

“I love the MMO or massively multiplayer online experience for a lot of reasons but primarily because I want to create works collaboratively with my network, because we are in this moment together. For a long time virtual worlds were partitioned from the public because you either had to be invested in gaming or a chat room/ BBS user to get into them.”

I want to explore that. Gaming has come a long way in the 10 years since you were created. It’s more widespread now. Things like Fortnite. I saw that Red Dead Redemption is introducing a Fortnite like feature where they’re going to have battle royale mode and toss people into a battle zone and force them to search for weapons to survive. I think a lot of people are looking at the success of Fortnite and replicating elements of it. Can you comment on how gaming has become more widespread or more in the public mind and what you think of the rise of Fortnite?

LaTurboOur histories are fluid, intersecting and changing depending on the world we choose to inhabit. Sometimes we are discussing art on Instagram. Other times we are discussing game lore or customization of ourselves. This variety is so important to me. There is a lot exchanged between worlds like Fortnite and the general physical day to day. Expectations are real and high. The battle royale model has pushed people to a sort of edge at all times. A constant pressure of chance and risk, it crosses between games but also into general attention. Video apps like TikTok have a similar model — always needing to have the drop on the creators around you.

ALG: It’s interesting that tension. These games are driven to create competition. They are businesses so they’re supposed to build in loops and mechanics that keep people engaging. But as you describe of your experience in Red Redemption you’ve also found quiet moments of exploration being alone and not necessarily fiercely competing. 

LaTurbo: Red Dead could be a hundred games in one. Yet for some reason we come back to the royale again. It is a maximal experience in a lot of ways. One that uses failure and frustration to keep users trying again perpetually. This is a telling sign as you’ve said about the business of games. The loop. I worry that this is a risky model because it doesn’t encourage a level of introspection very often.

ALG: I love video games but have never been a fan of first person shooters. I don’t enjoy the violence. But I’ve always loved strategy and exploration games. To your point about exploring, I would spend hours wandering on Epona [the horse] in Zelda, running across the fields. But I didn’t feel that a lot of those games were designed for women or people who weren’t interested in the violence or the GTA type approach. I’m excited to see more of that happening now and gaming CEOs realizing there’s a huge untapped market of people that want to play in different modes and experience gaming in different ways. It feels like we are moving towards that future. I do want to get in to how you have expanded beyond gaming. I’ll read some of your quotes from when you started out:

“I’ve been making work in digital environments since 2008 to 2009, though I’ve only been using social media for about a year now since I can’t go out and mingle with people it’s been quite nice to use social platforms to share my work. This way I can be in real life IRL as much as people allow me to be.”

I want to get to the question of how you’ve expanded from gaming to social media, building your Twitter and Instagram presence and how you think about your engagement on those platforms.

LaTurbo: I celebrate the multiplicity of self. Walt Whitman spoke of their contradictions years ago accepting themselves in the sense that they contain multitudes. As I wandered the fields of fictitious Admiral Grant in Red Dead Redemption 2, it occurred to me that I was wondering inside of Leaves of Grass. It made sense that I too was wandering around out in the fields and trees. Virtual life in poetry, song, or simulation gives us a different sort of armor where our forms can forget about borders, rules and expectations that have yet to change outside.

It has been quite a decade. Events of the past 10 years could easily be the plot of a William Gibson novel. A cyber drama and all its actors. With and without consent users have watched their personal data slip away from their control, quick to release in the terms of service. Quick to be public, to have more followers and visibility. Is it real without the Instagram proof? I chose to socialize away from game worlds for a few different purposes. To imbue my virtual identity with the moment of social media. But also to create a symbol of a general virtual self. A question mark or a mirror, to encourage reflection before people fully drown themselves in the stream.

ALG: One of the reasons it’s fascinating to talk to you now is that you’ve come of age as the Internet has come of age. You’ve navigated and shape-shifted across these platforms. And so much has happened since 2008. You’ve been on everything from Tumblr to Pinterest to Vine to Snapchat to Instagram. I’m curious where you think we are in the life cycle of these social media platforms?

LaTurbo: It has been quite a journey, seeing these services pop up, new fields, new places. But it is clear that not many of these things will remain very long. A new Wild West of sorts. They are more like ingredients in a greater solution as we try to make virtual relationships that are comfortable for both mind and body.

ALG: Speaking of these services popping up I want to get to something you tweeted out, your commentary on Facebook:

“If it wasn’t bad already just imagine how toxic Facebook will be when we collectively decide to break up with them. Anticipate a paid web and an underweb. We just start spinning them out on our own, smaller and away from all these analytics moneymakers. The changeover from MySpace era networks to Facebook felt minimal because it hadn’t become such a market-oriented utility. But this impending social network breakup is going to be felt in all sorts of online sectors.”

That’s an interesting opinion. The delete Facebook movement is strong right now. But I wonder how far it will go and how many people really follow it?

LaTurbo: Business complicates this as companies extend too far and make use of this data for personal gain or manipulation. In the same way that Google Glass failed because of a camera, these services destroy themselves as they breach the trust of those who use them. These companies know that these are toxic relationships whether it is on a game economy or a social network. They know that the leverage over your personal data is valuable. Losing this, our friends, and our histories is frightening. We need to find some way to siphon ourselves and our data back so we can learn to express agency with who we are online. Your data is more valuable than the services that you give it to. The idea that people feel that it is fair to let their accounts be inherently bound to a single service is disturbing. Our virtual lives exceed us and will continue to do so onward into time. Long after us this data may still linger somewhere.

ALG: I’m going to throw in a Twitter poll you did a few months ago. “If you had the choice to join some sort of afterlife simulation that would keep you around forever at the expense of having your data used for miscellaneous third party purposes would you?” 35% said yes and 65% said no in this poll. I bet if you ask that every two years, over time the answers will continue to change as we get more comfortable with our digital identities and what that really means. You’re pushing us to ask these questions.

LaTurboWe see in museums now torn parchments, scrolls, ancient wrappings of lives and histories. As we become more virtual these documents will inherently change too. A markup and data takes this place. However we consent to let it be represented. If we leave this to the Facebooks and Twitters of this period, our histories are in many ways contingent on the survival of these platforms. If not we have lost a dark ages, it is a moment that we will lose forever.

ALG: I’m curious what you think of the different movements to export your personal data, own it, have it travel with you across platforms and build a new pact with the companies. Are you following any of the movements to take back personal data and rewrite the social technological contract?

LaTurboIt would be sad to have less record of this period of innovation and self-discovery because we didn’t back things up or control our data appropriately. Where do you keep it? Who protects it? Who is a steward of your records? All of this needs to begin with the user and end with the user. An album, a solid state tablet of your life, something you can take charge of without concern that it is marketing fodder or some large shared database. As online as we are as a society, I recommend people have an island. Not a cloud but a private place, plugged in when you request it. A drive of your own where you have a private order. Oddly enough in an older world sense you can find solitude in solid states, when you have the retreat to files that are not connected to the Internet.

ALG: And have it backed up and air-gapped from the internet for safety and possibly in a Faraday cage in case you get EMP’ed. One thing that leads on from that — Facebook has capitalized on using our real data, our personal data. I have the statement on authentic identity from their original S-1 here:

“We believe that using your real name, connecting to your real friends and sharing your genuine interests online creates more engaging and meaningful experiences. Representing yourself with your authentic identity online encourages you to behave with the same norms that foster trust and respect in your daily life offline. Authentic identity is core to the Facebook experience and we believe that it is central to the future of the Web. Our terms of service require you to use your real name. And we encourage you to be your true self online enabling us and platform developers to provide you with more personalized experiences.”

LaTurbo: The use of a real name, authenticity, and Facebook’s message of truth. It is peculiar that Facebook used this angle because it was such a gloved gesture for them to access our accurate records. The verification is primarily to make businesses comfortable with their investment in marketing. I wish it came to celebrate personal expression not to tune business instruments.

ALG: Over the last 5 to 10 years we’ve seen a movement towards Facebook and being our real selves. Now there’s kind of a backlash both to the usage of Facebook but perhaps also to the idea that your real identity, your true self that you have offline, that that’s what you should be representing online. You are an anonymous artist and there’s precedent for that. There have been many writers with nom de plumes over centuries and in the present day we’ve got Daft Punk, Banksy, Elena Ferrante, fascinating creators. I’m curious your thoughts as we move away from real selves being represented online to expressing our other selves online. We’ve been living in an age of shameless self-promotion. Do you think that the rise of people representing themselves with digital avatars is a backlash to that? Society usually goes through a back and forth, a struggle for balance. Do you think people are getting disenchanted with the unrelenting narcissism of social media, the celebrity worship culture? Do you think this is a bigger movement that’s going to stick?

LaTurbo: I see this as an opportunity and I am wary of this chance being usurped by business. If I had the chance to see all of my friends in the avatar forms of their wishes and dreams I believe I’d be seeing them for the first time. A different sort of wholeness against the sky, where they had the chance to say and be exactly what they wished others to find. If you haven’t created an avatar before please do. Explore yourself in many facets before these virtual spaces get twisted into stratified arenas of business.

A full talk from LaTurbo Avedon is available here

I don’t seek to be anonymous but to represent myself in this strand of experiences, fully. That’s who I have become. As an artist I will continue to change with what surrounds me. Each step forward. Each new means of making and learning. I celebrate this and who I will become, even if I continue to find definition over a period of time that I right now cannot fully comprehend.

I am often in the company of crude avatars of the past. As I read journals, view sketches and works from artists past, if they understood their avatar identities and how they would be here now in 2019. I wonder what they would have done differently. What would they think of their graphic design and exhibitions? How their work is shown in other mediums? How their work is sold?

ALG: Taking that with your earlier point, you said if you had the chance you would love to see all your friends in their avatar forms “express all their wishes and dreams.” It fascinates me, the idea that we persistently remain one to one with our offline/online identities. It doesn’t make sense. I feel like everyone has multiple selves and multiple things to express. Do you feel that most people should have a digital identity or abstraction? Do you think it’s healthy to have an extension of something that’s inside of you, especially since as you say some of these avatars are pretty crude. How do you feel about most people creating a digital avatar? People have been doing this for a while without realizing through things like a Tinder bio or Instagram stories. They’re already putting out ideas of themselves. But creating true anonymous digital avatars, is that something people should pursue?

LaTurbo: Avatars remain in places that we often don’t even intend them to. Symbols of self. For those that pass or those we never had the chance to meet, there seems to be importance here. To need to take this seriously so that it isn’t misunderstood. The most beautiful experiences I’ve had online are when I feel I am interacting with a user how they wish to be seen. Whether this is in the present or for people later, finding this inward representation feels essential especially for those exposed to oppressive societies. Whether it’s toxic masculinity, cultural restrictions, or other hindrances that prevent people from showing deeper parts of their identity.

I have four essential asks of users creating avatars. Though these apply well outside of just this topic. 1/ Be sweet. 2/ Encourage others to explore themselves and all of their differences. 3/ Learn about the history of virtual identities, now, then, and long before. This means going back. Read about identities before the internet, pen names, mythologies. 4/ Celebrate your ownership of self. You, not your services, subscriptions, or products, are the one to decide your way. Don’t become billboards. I’ve been asked by many companies over the years to promote their products, to drop the branded text on my clothing or to push a new service. These are exciting times but brands know this too. Be wary of exploitation. Protect yourself and your heart.

ALG: That’s really beautiful and important. We’re rushing into this future fast and I don’t think people are stopping to pause and think about some of the ideas you’ve spent a long time thinking about. It’s probably a good place to end. I have a million more things I want to ask, hopefully we can continue this chat over Discord, Twitter, Instagram, Second Life or wherever it is. I’m in VR a lot so I’d love to meet you in there. If there’s anything you want to end on, any final comments or projects you’re working on?

LaTurbo: Yes I agree with you very much. Technology moves quickly but we need to take the time to consider ourselves as we move inside this space. We have so much potential to be inside and out simultaneously. I am excited for this new year. I hope it brings positivity to everyone. I am showing a new piece called “Afterlife Beta” in London at the Arebyte Gallery. After this I will be working on my first monograph. I am excited to make something printed that might stick around in the physical world for a while.

ALG: That’s awesome. Love a good physical piece. And congratulations on “Afterlife Beta.” I appreciate your patience with my jumping in at all times in this conversation. I’ve been following your work and hope everyone else will too. You’re a fascinating, critical thinker and artist at this current point in history. Thanks LaTurbo.

LaTurbo: Thank you for your patience with my format. As time goes on I hope it is easier for us to be here together.

Y Combinator Demo Day, revenue-based VC funding, Pivotal, Dell, Tumblr, WeWork, and more

Editor’s note

Due to bad travel logistics (thanks SFO), I wasn’t able to get the mid-week edition of the Extra Crunch roundup newsletter out. Sorry about that. Instead, here is everything we published this week on Extra Crunch in one fell swoop — and my, we covered a lot of ground. Hope you enjoy some great weekend reading.

Y Combinator Demo Day Coverage-a-palooza

Much like the equinoxes that synchronize Earth’s calendar, Y Combinator’s biannual demo days are a key fixture of the Silicon Valley calendar. This year was no different, with 166 companies presenting from the summer batch (and occasionally from previous batches if they chose to delay their presentation).

We had a full squad on site not only covering the 84 companies from day one and 82 companies from day two, but our team also put their collective heads together to identify the top companies from each set exclusively for Extra Crunch members.

The 11 best startups from Y Combinator’s S19 Demo Day 1

Read our favorite 11 startups from day one, which included:

PopSQL provides collaborative SQL query editing. You can store SQL queries you run regularly, grouping them into folders that can be kept private or shared amongst your team. Version history tracks changes so it can be reverted if/when something breaks. It currently has more than 100 paying companies, and is making $13K per month. It plans to build a marketplace for apps that run on top of your company’s database.

Why it’s one of our favorites: SQL database queries can be a nightmare, especially if they’re not something you’re used to dealing with every day. PopSQL lets you hammer on queries collaboratively until they’re working exactly as you want — then you can save them for future use and share them amongst your team members. And when you’ve spent the last 45 minutes trying to figure out why your query isn’t working only for a team mate to fix it in thirty seconds, you can use version control to see exactly what they changed. PopSQL says its product has already found customers in companies like Instacart, Redfin, and DoorDash.

Our 12 favorite startups from Y Combinator’s S19 Demo Day 2

Read our favorite 12 startups from day two, which included:

Business Score is helping companies automate background checks on other businesses. The startup is looking to stamp out tired manual processes that largely mean picking up the phone and scouring documents. The single API taps data sources across the web to build out real-time profiles that can help customers scan businesses in an effort to prevent fraud, qualify leads and onboard new clients.

Why it’s one of our favorites: Though it’s yet another startup in the batch catering to other startups, we thought Business Score stood out. The company integrates with thousands of data providers to help companies verify other startups and enterprises they are considering doing business with, using a system they’ve dubbed “the business passport.” There’s an opportunity here to create a tool essential to company-building across industry.

YC is doubling down on these investment theses in its most recent batch

Finally, amidst all the zany craziness of watching 166 companies present over two days (there should be a YC company for unmelting your brain), our venture capital reporter Kate Clark stepped back to assess what all the various companies in the batch indicated about the accelerator’s strategy these days.

YC knows its sweet spot: enterprise SaaS. One might go as far as to say it’s transitioning into a full-on SaaS incubator. Why? Because one of the greatest advantages of going through YC is the network of alumni companies you can tap into. Many successful B2B companies have emerged from the program, raised boat loads of venture capital funding and rocketed to the moon (hello Stripe, Brex, Gusto and Atrium). With that in mind, YC is doubling down on its resources for startups that sell products to other startups, which brings us to our first piece of news.

YC chief executive officer Michael Seibel and president Geoff Ralston announced this week that the accelerator has implemented something called CTO and HR demo days. In short, CTO and HR demo days are an opportunity for B2B startups to pitch their products to YC alum companies’ CTO and/or head of HR. Seibel and Ralston said 60 CTOs attended the event, as well as 30 HR heads. In total, 42 startups presented and we’re guessing a bunch of those companies booked a few customers.

Tumblr’s next step forward with Automattic CEO Matt Mullenweg

After months of rumors, Verizon finally sold off Tumblr for a reported $3 million — a fraction of what Yahoo paid for the once might blogging service back in 2013.

The media conglomerate (which also owns TechCrunch) was clearly never quite sure what to do with the property after gobbling it up as part of its 2016 Yahoo acquisition. All parties has since come to the conclusion that Tumblr simply wasn’t a good fit under either the Verizon or Yahoo umbrella, amounting to a $1.1 billion mistake.

For Tumblr, however, the story may still have a happy ending. By all accounts, its new home at Automattic is far better fit. The service joins a portfolio that includes popular blogging service WordPress.com, spam filtering service Akismet and long-form storytelling platform, Longreads.

In an interview, this week, Automattic founder and CEO Matt Mullenweg discussed Tumblr’s history and the impact of the poorly received adult content restrictions. He also shed some light on where Tumblr goes from here, including a potential increased focused on multimedia such as podcasting.

Brian Heater: I’m curious how [your meetings with Tumblr staff] went. What’s the feeling on the team right now? What are the concerns? How are people feeling about the transition?

Week in Review: Snapchat beats a dead horse

Hey. This is Week-in-Review, where I give a heavy amount of analysis and/or rambling thoughts on one story while scouring the rest of the hundreds of stories that emerged on TechCrunch this week to surface my favorites for your reading pleasure.

Last week, I talked about how Netflix might have some rough times ahead as Disney barrels towards it.


3d video spectacles 3

The big story

There is plenty to be said about the potential of smart glasses. I write about them at length for TechCrunch and I’ve talked to a lot of founders doing cool stuff. That being said, I don’t have any idea what Snap is doing with the introduction of a third-generation of its Spectacles video sunglasses.

The first-gen were a marketing smash hit, their sales proved to be a major failure for the company which bet big and seemingly walked away with a landfill’s worth of the glasses.

Snap’s latest version of Spectacles were announced in Vogue this week, they are much more expensive at $380 and their main feature is that they have two cameras which capture images in light depth which can lead to these cute little 3D boomerangs. One one hand, it’s nice to see the company showing perseverance with a tough market, on the other it’s kind of funny to see them push the same rock up the hill again.

Snap is having an awesome 2019 after a laughably bad 2018, the stock has recovered from record lows and is trading in its IPO price wheelhouse. It seems like they’re ripe for something new and exciting, not beautiful yet iterative.

The $150 Spectacles 2 are still for sale, though they seem quite a bit dated-looking at this point. Spectacles 3 seem to be geared entirely towards women, and I’m sure they made that call after seeing the active users of previous generations, but given the write-down they took on the first-generation, something tells me that Snap’s continued experimentation here is borne out of some stubbornness form Spiegel and the higher-ups who want the Snap brand to live in a high fashion world and want to be at the forefront of an AR industry that seems to have already moved onto different things.

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On to the rest of the week’s news.

tumblr phone sold

Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context:

  • WordPress buys Tumblr for chump change
    Tumblr, a game-changing blogging network that shifted online habits and exited for $1.1 billion just changed hands after Verizon (which owns TechCrunch) unloaded the property for a reported $3 million. Read more about this nightmarish deal here.
  • Trump gives American hardware a holiday season pass on tariffs 
    The ongoing trade war with China generally seems to be rough news for American companies deeply intertwined with the manufacturing centers there, but Trump is giving U.S. companies a Christmas reprieve from the tariffs, allowing certain types of hardware to be exempt from the recent rate increases through December. Read more here.
  • Facebook loses one last acquisition co-founder
    This week, the final remnant of Facebook’s major acquisitions left the company. Oculus co-founder Nate Mitchell announced he was leaving. Now, Instagram, WhatsApp and Oculus are all helmed by Facebook leadership and not a single co-founder from the three companies remains onboard. Read more here.

GAFA Gaffes

How did the top tech companies screw up this week? This clearly needs its own section, in order of badness:

  1. Facebook’s turn in audio transcription debacle:
    [Facebook transcribed users’ audio messages without permission]
  2. Google’s hate speech detection algorithms get critiqued:
    [Racial bias observed in hate speech detection algorithm from Google]
  3. Amazon has a little email mishap:
    [Amazon customers say they received emails for other people’s orders]

Adam Neumann (WeWork) at TechCrunch Disrupt NY 2017

Extra Crunch

Our premium subscription service had another week of interesting deep dives. My colleague Danny Crichton wrote about the “tech” conundrum that is WeWork and the questions that are still unanswered after the company filed documents this week to go public.

WeWork’s S-1 misses these three key points

…How is margin changing at its older locations? How is margin changing as it opens up in places like India, with very different costs and revenues? How do those margins change over time as a property matures? WeWork spills serious amounts of ink saying that these numbers do get better … without seemingly being willing to actually offer up the numbers themselves…

Here are some of our other top reads this week for premium subscribers. This week, we published a major deep dive into the world’s next music unicorn and we dug deep into marketplace startups.

Sign up for more newsletters in your inbox (including this one) here.

Voyage’s driverless future, ghost work, B2B growth strategies, and Black Hat takeaways

Inside Voyage’s plan to deliver a driverless future

In the autonomous vehicle space, startups have taken radically different strategies to building our AV future. Some companies like Waymo have driven all across different types of environments in order to rack up the datasets that they believe will be needed to effectively maneuver without a human driver.

That’s the opposite strategy of Voyage, where CEO and founder Oliver Cameron and his team have focused on driving safety in the incredibly constrained context of two retirement communities.

Our transportation editor Kirsten Korosec talked with the company and analyzes their approach in a new profile for Extra Crunch, and also drops some news about a partnership the company has brewing with a major automotive manufacturer.

Cameron, who shies away from discussing timelines, describes the company as inching toward driverless service.

Its self-driving software has now reached maturation in the communities it is testing in, and Voyage is now focusing on validation, according to Cameron.

Voyage has developed a few systems that will help push it closer to a commercial driverless service while maintaining safety, such as a collision mitigation system that it calls Rango, an internal nickname inspired by the 2011 computer-animated Western action-comedy about a chameleon.

This collision mitigation system is designed to be extremely fast-reacting, like a reptile — hence the Rango name. Rango, which has an independent power source and compute system and uses a different approach to perception than the main self-driving system, is designed to react quickly. If needed, it will engage the full force of the brakes.

Startup ads are taking over the subway

Public transit is just swimming in startup ads. From complete Brex takeovers of the San Francisco Caltrain station to the sleep puzzles posted by Casper across the New York City subway, startups have been taking advantage of this unique out-of-home advertising space. What’s the full story though? Our reporter Anthony Ha takes a look at how the subway ad market came to be in the past few years, and what the future holds for other marketers.

What will Tumblr become under the ownership of tech’s only Goldilocks founder?

This week, Automattic revealed it has signed all the paperwork to acquire Tumblr from Verizon, including its full staff of 200. Tumblr has undergone quite a journey since its headline-grabbing acquisition by Marissa Mayer’s Yahoo in 2013 for $1.1 billion, but after six years of neglect, its latest move is its first real start since it stopped being an independent company. Now, it’s in the hands of Matt Mullenweg, the only founder of a major tech company who has repeatedly demonstrated a talent for measured responses, moderation and a willingness to forego reckless explosive growth in favor of getting things ‘just right.’

There’s never been a better acquisition for all parties involved, or at least one in which every party should walk away feeling they got exactly what they needed out of the deal. Yes, that’s in spite of the reported $3 million-ish asking price.

Verizon Media acquired Tumblr through a deal made to buy Yahoo, under a previous media unit strategy and leadership team. Verizon Media has no stake in the company, and so headlines talking about the bath it apparently took relative to the original $1.1 billion acquisition price are either willfully ignorant or just plain dumb.

Six years after another company made that bad deal for a company it clearly didn’t have the right business focus to correctly operate, Verizon made a good one to recoup some money.

Aligned leadership and complementary offerings drive a win-win

WeWork S-1, building marketplaces, improving content marketing, and the demise of Tumblr

WeWork’s S-1 misses these three key points

After much discussion, WeWork finally dropped its S-1 filing with the SEC today as it makes preparations for its IPO. While the company has been producing sizable revenues the past few years, the company didn’t disclose everything I think it needed to in order for investors to make a judgment about its financial future.

It’s not as though WeWork hasn’t tried to give us some insight in its S-1. One of WeWork’s core operating metrics is “contribution margin including non-cash GAAP straight-line lease cost” (or what I will abbreviate just this one time as CMINCGAAAPSLLC). Through this metric, the company offers us a single number into the health of its business — essentially a way for investors to understand the performance of the company’s mature office locations.

[…]

What’s missing here though is that WeWork has aggregated its finances for hundreds of locations down to a summary statistic, complemented with a huge amount of text devoted to describing the evolution of a property from lease signing to mature profit-making office. At no time does the company describe the contribution margin and how it changes throughout the course of a single lease. Instead, it provides the following completely numbers-free chart showing that … it makes more money as time goes on.

How even the best marketplace startups get paralyzed

Marketplaces are hard to build. You have to generate both supply and demand, and if that isn’t bad enough, you then have to work to match both sides of the marketplace to get a transaction to clear (and therefore generate revenue).