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Decrypted: Grayshift raises $47M, Apple bugs under attack, video game maker hacked

The election is over, but not without a hitch or two. Some voters in Georgia and Ohio had to use paper ballots after hand sanitizer leaked into voting machines — an unexpected casualty of the pandemic. And a slew of robocalls across a number of swing states urged voters to “stay safe and stay home,” in an effort to disenfranchise voters from going to the polls. With record voter turnout, there’s little evidence to show it worked.

But we saw nothing like the hack-and-leak operations like we did four years ago, which delivered an “October surprise” that derailed the election for Hillary Clinton, despite winning the popular vote by three million votes.

Government officials and cybersecurity firms said there were no significant or damaging cyberattacks during Election Day. One Homeland Security official called it “another Tuesday on the internet,” but conceded there was still cause for concern in the election aftermath.

With the bulk of the votes counted, government officials pointed to the threat of “foreign influence” campaigns — or misinformation — that would try to cast doubt on the election results. In reality, much of the false and misleading claims ended up coming from inside the White House as the Trump administration tried to cling onto power. After being caught out four years ago, the social media giants put into place measures and policies that limited the spread of false news — including Trump’s repeated attempts to claim victory.

Fears that the 2020 election could turn into a national, or even an international security matter did not come to fruition. The U.S. is in a better place than it was four years ago by simply learning the lessons from Russia’s efforts to interfere with the election. Imagine where we could be in another four?

Since you, like us, were glued to the television screens last week, here’s more from the week you might have missed.


THE BIG PICTURE

Grayshift, the maker of phone unlocking tech, raises a Series A round

Grayshift, the secretive startup behind the U.S. government’s favorite phone unlocking technology, has raised $47 million in fresh funding. The Series A round was led by PeakEquity Partners, and — as first reported by Forbes — is a huge round for a little-known phone forensics firm.

One of only a few photos of the mysterious GrayKey phone unlocking devices. Image Credits: Malwarebytes

Grayshift exploded onto the mobile forensics scene in 2018, months after the company began quietly selling its proprietary GrayKey technology to federal agencies for about $15,000 each. The FBI and other agencies use their purchased GrayKey devices to break into encrypted phones without needing the passcode.

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The PlayStation 4 will be able to play PlayStation 5 games remotely

Well, isn’t this a nice little surprise? This morning some PlayStation 4 owners are reporting the sudden and unexpected arrival of a new “PS5 Remote Play” app. While the app doesn’t do much yet (the PS5 isn’t out yet, after all), it seems meant to let you keep a PlayStation 5 in one room and stream it to (and control it from) a PlayStation 4 in another.

Now, that’s not quite the same as actually having another PS5 in that second room; Remote Play tends to introduce a little bit of lag into the mix, so you probably won’t want to turn to it for twitchy games where every millisecond counts. But given that last-gen’s console tends to eventually find itself gathering dust or tucked into another room as a wildly overpowered Blu-ray/Netflix player, this is a pretty great way to extend the PS4’s lifespan. IGN spotted the app this morning, and it appears to be rolling out to users in batches

Sony hasn’t said much about how it’ll all work, so there are still plenty of questions to be had about compatibility — will all games work, or just some? Will PS4 controllers work on PS5 games via Remote Play, whereas Sony has otherwise said they’ll only work on the PS5 when playing backwards compatible PS4 titles? An FAQ on the PlayStation blog does confirm that it’s meant for playing PS5 games on the PS4, but doesn’t go any deeper than that:

We’re updating PS4’s Remote Play feature. Now, in addition to being able to access your PS4 from a PC or a mobile device, your PS4 can access other consoles via Remote Play too, right on your TV. This includes the ability to connect to your PS5 and stream a PS5 game to your PS4 so you can play it there.

Sony also notes that Remote Play will now support multiple remote users simultaneously, allowing you to play local multiplayer games with friends who aren’t actually, you know, local.

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5 UX design research mistakes you can stop making today

Jason Buhle
Contributor

Jason Buhle is a professor in the online Master of Science in the Applied Psychology program at the University of Southern California and Director of UX Strategy at AnswerLab, the largest independent consultancy exclusively focused on UX research.

A recent article in Entrepreneur magazine listed “inadequate testing” as the top reason why startups fail. Inadequate testing essentially means inadequate or sub-par user research that leads to poor UX design which, not surprisingly, usually ends in failure. While working with startups and tech companies, I have also seen how even when people know how important user research is, they may not necessarily know how to conduct it in optimal ways.

Let’s look, then, at some of the biggest UX research mistakes companies make and what I wish I had known when I first started.

Conduct UX research early and throughout product development

When considering any potential product or service, it’s best to get certain questions answered as soon as possible. Is it actually going to be something useful and feasible for the target users and their organizations? Are your initial; assumptions correct? Ideas that seem good at first may not seem so great after research, and many commonly criticized failures were likely results of insufficient research. This is why it’s vital to begin user research early before product development has even begun.

While it is important to conduct foundational research early on, you also want to make sure to conduct evaluative research by continuously testing your product as you build or upgrade it. One of the reasons why Google products product like Gmail or YouTube are relatively easy to use for most people is that Google has teams continuously testing their products, making sure that their users know where to find what they’re looking for.

Don’t do all of the user research yourself

One of the mistakes I see many startups and entrepreneurs make (and that I myself made early on) is doing all of the UX research themselves. In some ways, books like Lean Startup” have bolstered this tendency by stressing the need to “get out of the building” and get to know your users. In itself this isn’t a bad idea—it’s good to know who your users are and to build empathy for their experiences. Likewise, this isn’t to say that you should not do any research yourselves.

However, you also want to be sure to complement that by having professional, third party UX researchers do research for you as well. When you are heavily invested in your research, as you invariably would be if it is your own product, it is difficult to conduct it in an unbiased way. And when your research participants know that you are asking them about your own project, they are not likely to provide you with good signal that can actually help you improve your product.

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Early-bird savings ends this Friday for TC Sessions Space 2020

Could there be a tech sector more thrilling and daunting than space? We think not. If that’s your orbit, don’t miss TC Sessions: Space 2020 on December 16-17. It’s where you’ll find the industry’s greatest thinkers, makers, shakers and investors.

More on that in a minute. Right now, a reminder that the $125 admission price remains in play for just five more days. Buy your Early-Bird ticket — and keep $100 in your wallet — before November 13 at 11:59 p.m. (PT).

We have an impressive slate of presenters ready to talk about the current state of space tech, what the future holds, investment strategies and what it takes to build successful cosmic startups.

Here are just some of the luminaries you’ll hear from and engage with during main stage interviews, panel discussions, breakout sessions and interactive Q&As.

  • Lockheed Martin VP Lisa Callahan
  • Rocket Lab CEO Peter Beck
  • Lt. General John F. Thompson, U.S. Space Force
  • Will Roper, assistant secretary, U.S. Air Force
  • Relativity Space CEO Tim Ellis

Check out some of the topics and find more in the event agenda.

Building Up a Business Looking Down at Earth: Earth observation is one of the real moneymakers in the space category. See what’s ahead for the industry.

Bridging Today and Tomorrow’s Tech: Corporate VC funds are a key source of investment for space startups, in part because they often involve partnerships that help generate revenue, and because they understand the timelines involved. We’ll discuss how they fit with more standard ventures to power the ecosystem.

We offer discount ticket options for students ($50) and for government, military and nonprofits ($95). Buy yours before November 13 at 11:59 p.m. PST. Bonus: Extra Crunch subscribers receive a 20% discount on passes.

Strut your right stuff: Want to increase your exposure to event attendees around the world? Buy a Startup Exhibitor Package. The $360 package includes three tickets, digital exhibition space and the ability to generate leads. Bonus: Exhibiting founders get five minutes to pitch their company — live — to thousands of attendees.

TC Sessions: Space 2020 takes place on December 16-17. Whether you’re a founder, investor, engineer, student or an aspiring entrepreneur, it’s where you’ll find the space industry’s most important people across public, private and defense sectors. Buy your pass before November 13 at 11:59 p.m. (PT) and save $100.Could that be any more exciting?

Is your company interested in sponsoring TC Sessions: Space 2020? Click here to talk with us about available opportunities.

 

 

 

 

 

 

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Spora Health launches primary care network for Black people and people of color

A number of healthcare disparities exist for Black people in America, but they can oftentimes go unaddressed due to the lack of education and understanding among medical professionals. Spora Health, which launches today for patients in Virginia, Tennessee, Pennsylvania and Florida, aims to fix that.

“An equitable healthcare system has never existed in America, especially for Black folks and that is the goal,” Spora Health founder and CEO Dan Miller told TechCrunch.

Spora Health is a primary care provider for Black people and people of color. Initially, Spora Health is taking a telemedicine approach, but eventually plans to open physical locations.

Spora Health patients get access to its care delivery platform and care team that consists of doctors, nurse practitioners, nutritionists and more. Its machine learning-driven technology also can predict risk profiles for patients and look for chronic conditions like pre-diabetes, hypertension, emphysema and more.

Image Credits: Spora Health

Spora Health costs $9.99 per month. On the first visit, patients pay their normal co-pay. For those without insurance, they pay a one-time $99 fee on their first visit. You can think of it almost as a One Medical, which charges $199 per year, but with the specific needs of Black people and people of color in mind.

“Being a young startup, we can compete on price,” Miller said. “For us, we can make the offering more affordable because we have less overhead as well as tech that allows us to be more thoughtful.”

While the goal is to better serve Black people and people of color, not all of Spora Health’s providers fall into those demographics.

“We want to overindex on providers of color but supply and demand doesn’t match up,” Miller said. “There’s a shortage of providers of color becoming physicians. So we need to invest in the reeducation of providers.”

In order to become a provider on Spora Health, medical professionals must go through an interview process and participate in the Spora Institute. The Spora Institute serves to reeducate providers and help them understand their implicit biases.

“Within med school, there is a curriculum around health equity but that only happens in the first year of the program,” Miller said. “What tends to happen by the end of residency is that a lot of these implicit biases tend to surface again because the training curriculum and environment does not incorporate equity and doesn’t think about disparities in certain populations.”

Spora Health is actively raising a $1.2 million seed round. So far, the company has closed $1 million of that round.

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Cookware startup Great Jones raises $1.75M as it expands into bakeware

Great Jones is expanding into a new area of the kitchen tomorrow, with what co-founder and CEO Sierra Tishgart described as the startup’s biggest launch since it released its first products two years ago.

Ahead of launching the new bakeware line, Great Jones is announcing that it has raised $1.75 million in new funding.

The money comes from notable figures in the e-commerce world — Fellow founder Jake Miller and Very Great founders Eric Prum and Josh Williams — along with restauranteurs including Mimi Cheng’s co-founder Hannah Cheng, Lilia founder Sean Feeny, Kopitiam co-owner Moonlynn Tsai and Konbi co-owner Akira Akuto.

NEA partner Liza Landsman invested as well, and Tishgart said that Sweetgreen’s Nic Jammet and Parachute’s Ariel Kaye have joined the startup’s board of directors. Tishgart noted that Great Jones has worked on collaborations and product partnerships with many of these investors, and she also pointed to Kaye and Parachute as providing a model for how Great Jones can grow.

“To me, starting with sheets, [Kaye] has taken a product which people loved and thoughtfully expanded to a broad selection,” Tishgart said.

She sees a similar path for Great Jones — just as Parachute has become a “one-stop shop” for the home, Tishgart wants her startup to do the same for your kitchen. Great Jones launched with pots, pans and a Dutch oven, then added a baking sheet and is now expanding into a whole line of bakeware.

Great Jones

Image Credits: Great Jones

The new bakeware products (many of them inspired by classic Pyrex designs) include the Sweetie Pie ceramic pie dish, the Hot Dish ceramic casserole dish, the Breadwinner loaf pan, the Patty Cake cake pan and a new broccoli-colored version of the Holy Sheet baking sheet. You can buy the pieces à la carte (the Holy Sheet is $35, the pie pans are $45 and the bread pans are $65 for a pair) or purchase the whole set for $245.

Tishgart added that the company has had a “really, really busy year” with lockdowns and social distancing.

“People are cooking more than ever,” she said. “This is a category and an industry that have really been able to thrive on this.”

At the same time, Tishgart emphasized that the growing interest from millennials and younger consumers is a long-term trend that won’t go away when the pandemic is over — with the rise of celebrity chefs, high-profile restaurants and more food content than ever, food and cooking have become a bigger “cultural force” than ever.

There have been challenges as well, particularly as the pandemic has affected supply chains. Tishgart said the company has spent much of the year “chasing product,” but it benefited from using a variety of materials and working with a variety of manufacturers.

“This is one thing that upfront made for a more complicated supply chain,” she said. “But it’s a strong saving grace now, because we’re not reliant on one factory or one part of the world.”

The funding, Tishgart said, will allow Great Jones to invest in further product development and production. And while there are plenty of other cookware startups raising funding, she said that “it’s motivating, it’s exciting to see how other people interpret it” and that the different brands “all speak to different customers.”

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What happens to high-flying startups if the pandemic trade flips?

So much can change in a day.

This morning, news that a trial COVID-19 vaccine candidate had an effective rate of more than 90% shook the financial world. The Pfizer vaccine is reportedly so effective, the company “will have manufactured enough doses to immunize 15 to 20 million people” by the end of the year, according to the New York Times, appears to have given investors the green light to pile back into companies harmed by the pandemic.


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


The shift of money from shares that proved popular during the summer is massive and abrupt. Zoom and Peloton are down sharply this morning, while Uber and Lyft are soaring. Indeed, the Dow Jones Industrial Average and S&P 500 indices are up around 4.8% and 3.3% respectively, while SaaS and cloud share are off 3.5%.

Investors are taking money out of companies that were expected to do well thanks to the pandemic and moving that capital into firms that were weakened by the pandemic.

Our question for this morning: what do these changes mean for the economic forces that have broadly favored venture-backed startups? What happens to high-flying startups if the pandemic trade flips? What’s next for insurtech, edtech, fintech and SaaS? Let’s discuss.

Hot sectors, warm futures?

Short-term market movements do not always predict the future accurately, so we should not treat today’s trading as gospel.

That said, it’s not hard to draw some basic conclusions from the trading activity. Here’s what I think we can deduce from today’s stock market activity:

  • Corporate software spend growth will slow: The broad decline in the value of software companies today appears to indicate that investors expect slower growth in the future. This is especially sharp in companies boosted by the pandemic itself, and, it appears, less acute in companies that were less helped by the COVID-19 economy. Our read? Investors are betting that growth amongst the companies that most benefited from a switch to remote work, for example, will see the greatest deceleration from recent forecasts. For startups, the lesson here is plain. Go look at your public comps and consider your own valuation likely trading along similar lines.

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Uzabase sells Quartz to the site’s CEO and staff

Quartz is going private, with co-founder and CEO Zach Seward buying the business news site from its current owner Uzabase.

In his post announcing the deal, Seward described the move as a management buyout that will also see Editor in Chief Katherine Bell and the rest of the Quartz staff taking equity in the new company.

“Most of the time, I hope, Quartz’s finances and our corporate parentage are irrelevant, as long as we’re doing our job well,” he wrote. “But this is an important moment in the life of our company, and we want to share it with all of you, whose readership and enthusiasm for Quartz have carried us successfully through the past eight years.”

Seward suggested that while Uzabase’s ownership was “helpful,” the company is “better off right now as a startup, freer to chart our own path.” And as a startup, it’s looking to raise outside funding.

The Wall Street Journal, which broke the news that Uzabase wanted to sell the property, also reported that Uzabase CEO Yusuke Umeda (pictured above) has made a personal loan to support the site.

Quartz was founded in 2012 by Atlantic Media, then acquired by Uzabase (a Japanese financial data and media company) for $86 million in 2018.

The company has struggled to make the business side work in recent years, reporting a loss of $18.4 million on revenue of $26.4 million in 2019, and cutting about 80 staff positions earlier this year.

In an assessment of the site’s troubles published in June, Digiday’s Steven Perlberg noted Quartz has been restructuring around its subscription business, but he suggested that it’s been caught in digital media’s “mushy middle”: “Not quite niche enough to be essential to a small group of readers, but not quite big enough to compete at scale.”

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Riverside.fm launches its video podcasting platform

Riverside.fm is a new startup with an easy-to-use platform for recording professional-quality video podcasts.

In fact, although the company only recently came out of stealth, it already has a number of high-profile customers, including TechCrunch’s parent company (Verizon Media) and Hillary Clinton, who’s using Riverside.fm to record her new podcast “You and Me Both with Hillary Clinton.”

“Just imagine, we needed a recording platform that could help us make a podcast during a pandemic, and, boy, did they step up,” Clinton said in a statement.

The startup was founded by brothers Nadav and Gideon Keyson — Nadav, who serves as CEO (Gideon is CTO), explained that they first created a platform where politicians could participate in video debates, but then realized there was a more promising business model for a broader podcasting tool.

In addition to officially launching, Riverside.fm is announcing that it has raised $2.5 million in seed funding led by Oren Zeev .

Gideon gave me a quick demo of the platform, showing me that it’s a fairly straightforward recording experience — the host just shares a link with the guests, no software installation necessary. There are plenty of other browser-based podcasting tools (for example, Zencastr recently expanded beyond audio with video support), but the Keysons suggested that they’ve spent a lot of time solving common technical issues for podcasters.

For one thing, each participants’ audio and video is recorded as a separate track on their device, so that a bad internet connection won’t affect recording quality. The recording is uploaded during the session, so you don’t have to have a long wait for files to upload. And there are automatic backups, in case someone’s browser or computer freezes.

“Stability … is so important,” Nadav said. “[Otherwise,] you could spend half a year to get a certain guest and then you lose their recording.”

Despite its simplicity, Riverside.fm supports 4K video and uncompressed WAV audio. It also includes an interface where podcast producers can monitor each guest’s equipment and adjust audio levels.

“We do really make it easy for the beginner and faster for the professionals,” Nadav said.

Gideon added that Riverside.fm isn’t interested in getting involved in the podcast distribution, but instead focuses on being a reliable production platform, as well as providing cross-platform analytics.

“We don’t want to start competing with Spotify and YouTube,” he said — in fact, Spotify is already a Riverside.fm customer.

The brothers also suggested that even if you’re not interested in creating a full-fledged video podcast, Riverside.fm is still the right choice for recording audio. Plus, you could still use the video recordings to create promotional clips for YouTube and social media.

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Equity Monday: Vaccine news scrambles the stock market, shakes up startups

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our weekly kickoff that tracks the latest big news, chats about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here — and don’t forget to check out last Friday’s episode that we wound up titling “Fortnite is actually a SaaS company.”

It makes sense in context, I promise.

Anyway, here’s what’s on today’s show:

  • Joe Biden was elected president and the stock market is not mad about divided government.
  • Positive vaccine news sent many stocks sharply higher this morning, but not all. Some pandemic-favored tech companies instantly dropped double-digit percentage points of value.
  • Esign raised $151 million, showing strength in the Chinese startup market, and the e-signature space.
  • And this neat Series B for Cellwize caught our attention this morning.
  • Finally, a warning. The stuff that is changing lately may begin to change a bit less. We’ve lived in the pandemic economy long enough now that it’s hard to recall what life was like before. But, we’d best start remembering, as there’s a lot that is going to change in the next few quarters.

This has been a wild day to start the week, but with good news.

I suppose a vaccine was always going to eventually make it to this step, but, that said, the United States is seeing record COVID-19 cases today. So mask up and let’s get as many of us across the line as we can.

Equity drops every Monday at 7:00 a.m. PDT and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

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