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The Knight Foundation launches $750,000 initiative for immersive technology for the arts

The John S. and James L. Knight Foundation is looking for pitches on how to enhance and augment traditional creative arts through immersive technologies.

Through a partnership with Microsoft the foundation is offering a share of a $750,00 pool of cash and the option of technical support from Microsoft, including mentoring in mixed-reality technologies and access to the company’s suite of mixed reality technologies.

“We’ve seen how immersive technologies can reach new audiences and engage existing audiences in new ways,” said Chris Barr, director for arts and technology innovation at Knight Foundation, in a statement. “But arts institutions need more knowledge to move beyond just experimenting with these technologies to becoming proficient in leveraging their full potential.”

Specifically, the foundation is looking for projects that will help engage new audiences; build new service models; expand access beyond the walls of arts institutions; and provide means to distribute immersive experiences to multiple locations, the foundation said in a statement.

“When done right, life-changing experiences can happen at the intersection of arts and technology,” said Victoria Rogers, Knight Foundation vice president for arts. “Our goal through this call is to help cultural institutions develop informed and refined practices for using new technologies, equipping them to better navigate and thrive in the digital age.”

Launched at the Gray Area Festival in San Francisco, the new initiative is part of the Foundation’s art and technology focus, which the organization said is designed to help arts institutions better meet changing audience expectations. Last year, the foundation invested $600,000 in twelve projects focused on using technology to help people engage with the arts.

“We’re incredibly excited to support this open call for ways in which technology can help art institutions engage new audiences,” says Mira Lane, Partner Director Ethics & Society at Microsoft. “We strongly believe that immersive technology can enhance the ability for richer experiences, deeper storytelling, and broader engagement.”

Here are the winners from the first $600,000 pool:

  • ArtsESP – Adrienne Arsht Center for the Performing Arts

Project lead: Nicole Keating | Miami | @ArshtCenter

Developing forecasting software that enables cultural institutions to make data-centered decisions in planning their seasons and events.

  • Exploring the Gallery Through Voice – Alley Interactive

Project lead: Tim Schwartz | New York | @alleyco@cooperhewitt@SinaBahram

Exploring how conversational interfaces, like Amazon Alexa, can provide remote audiences with access to an exhibition experience at Cooper Hewitt, Smithsonian Design Museum.

  • The Bass in VR – The Bass

Project lead: T.J. Black | Miami Beach | @TheBassMoA

Using 360-degree photography technology to capture and share the exhibit experience in an engaging, virtual way for remote audiences.

  • AR Enhanced Audio Tour – Crystal Bridges Museum of American Art

Project lead: Shane Richey | Bentonville, Arkansas | @crystalbridges

Developing mobile software to deliver immersive audio-only stories that museum visitors would experience when walking up to art for a closer look.

  • Smart Label Initiative – Eli and Edythe Broad Art Museum at Michigan State University

Project lead: Brian Kirschensteiner | East Lansing, Michigan | @msubroad

Creating a system of smart labels that combine ultra-thin touch displays and microcomputers to deliver interactive informational content about artwork to audiences.

  • Improving Arts Accessibility through Augmented Reality Technology – Institute on Disabilities at Temple University, in collaboration with People’s Light

Project lead: Lisa Sonnenborn | Philadelphia | @TempleUniv,@IODTempleU@peopleslight 

Making theater and performance art more accessible for the deaf, hard of hearing and non-English speaking communities by integrating augmented reality smart glasses with an open access smart captioning system to accompany live works.

  • ConcertCue – Massachusetts Institute of Technology (MIT); MIT Center for Art, Science & Technology

Project lead: Eran Egozy | Cambridge, Massachusetts | @EEgozy,@MIT,@ArtsatMIT@MIT_SHASS

Developing a mobile app for classical music audiences that receives real-time program notes at precisely-timed moments of a live musical performance.

  • Civic Portal – Monument Lab

Project lead: Paul Farber and Ken Lum | Philadelphia | @monument_lab@PennDesign@SachsArtsPhilly@paul_farber

Encouraging public input on new forms of historical monuments through a digital tool that allows users to identify locations, topics and create designs for potential public art and monuments in our cities.

  • Who’s Coming? – The Museum of Art and History at the McPherson Center

Project lead: Nina Simon | Santa Cruz, California | @santacruzmah@OFBYFOR_ALL

Prototyping a tool in the form of a smartphone/tablet app for cultural institutions to capture visitor demographic data, increasing knowledge on who is and who is not participating in programs.

  • Feedback Loop – Newport Art Museum, in collaboration with Work-Shop Design Studio

Project lead: Norah Diedrich | Newport, Rhode Island | @NewportArtMuse

Enabling audiences to share immediate feedback and reflections on art by designing hardware and software to test recording and sharing of audience thoughts.

  • The Traveling Stanzas Listening Wall – Wick Poetry Center at Kent State University Foundation

Project lead: David Hassler | Kent, Ohio | @DavidWickPoetry,@WickPoetry,@KentState@travelingstanza

Producing touchscreen installations in public locations that allow users to create and share poetry by reflecting on and responding to historical documents, oral histories, and multimedia stories about current events and community issues.

  • Wiki Art Depiction Explorer – Wikimedia District of Columbia, in collaboration with the Smithsonian Institution

Project lead: Andrew Lih | Washington, District of Columbia | @wikimedia@fuzheado

Using crowdsourcing methods to improve Wikipedia descriptions of artworks in major collections so people can better access and understand art virtually.

Lyft’s imminent IPO could value the company at $23B

Ridehailing firm Lyft will make its Nasdaq debut as early as next week at a valuation of up to $23 billion, The Wall Street Journal reports. The business will reportedly price its shares at between $62 and $68 apiece, raising roughly $2 billion in the process.

With a $600 million financing, Lyft was valued at $15.1 billion in June.

Lyft filed paperwork for an initial public offering in December, mere hours before its competitor Uber did the same. The car-sharing behemoths have been in a race to the public markets, igniting a pricing war ahead of their respected IPOs in a big to impress investors.

Uber’s IPO may top $120 billion, though others have more modestly pegged its initial market cap at around $90 billion. Uber has not made its S-1 paperwork public but is expected to launch its IPO in April.

Lyft has not officially priced its shares. Its S-1 filing indicated a $100 million IPO fundraise, which is typically a placeholder amount for companies preparing for a float. Lyft’s IPO roadshow, or the final stage ahead of an IPO, begins Monday.

San Francisco-based Lyft has raised a total of $5.1 billion in venture capital funding from key stakeholders including the Japanese e-commerce giant Rakuten, which boasts a 13 percent pre-IPO stake, plus General Motors (7.76 percent), Fidelity (7.1 percent), Andreessen Horowitz (6.25 percent) and Alphabet (5.3 percent). Early investors, like seed-stage venture capital firm Floodgate, also stand to reap big returns.

Lyft will trade under the ticker symbol “LYFT.” JPMorgan Chase & Co., Credit Suisse Group AG and Jefferies Financial Group Inc. are leading the IPO.

Lyft recorded $2.2 billion in revenue in 2018 — more than double 2017’s revenue — on a net loss of $911 million.

Lyft declined to comment.

We’re kicking off Startup Battlefield MENA, here are the startups and agenda

We’re kicking off Startup Battlefield MENA here in Beirut, where 15 startups will be taking the stage, along with speakers from Facebook (our partner on the event through its FB Start program), Instabug, Eventus, Wuzzuf, Careem and Myki.

For those of you who can’t be here in person, check back on TechCrunch later today, where we’ll be sharing videos and other highlights from the event. And of course, announcing the winner!

For the first time, TechCrunch is holding Startup Battlefield MENA in partnership with FB Start. After scouring does dozens of countries, sifting through hundreds and hundreds of extremely talented startups, TechCrunch selected 15 elite companies across the region to compete in prestigious global Startup Battlefield competition for $25,000 equity-free prize, a trip for 2 to TechCrunch Disrupt San Francisco 2019 and the coveted title of “Middle East & North Africa’s Favorite Startup”.

After weeks of intense coaching from the TC team, these startups are primed for international launch. For the semi-final round, each founder will pitch for 6 minutes, with a live demo on stage, followed by 6 minutes of Q&A with our expert panel of judges. After, our judges will deliberate and 5 teams will be selected to compete in the final round of Startup Battlefield – same pitch, but with an even more intense Q&A.

So, who are these chosen few? From creating new forms of fast setting concrete to quickly build houses in areas recovering from natural disasters to agricultural monitoring technology preventing water-related conflict, this batch of companies is truly changing the world. Companies also include financial investment AI platforms, edible insect based protein powder, to culturally relevant dating apps. Founders in the automotive industry are poised to change everything from how we pick the cars we want to buy to how we optimize their maintenance. From innovations to hydroponic gardens, educational tutoring platforms to modernizing technology for hotel chains, Startup Battlefield MENA is set to highlight the regions most promising startups. Videos from the event will be posted on TechCrunch.com after the event. Stay tuned!

Session 1: 9:30am – 10:30am

BuildinkHarmonicaMaterialSolvedMoneyFellowsNeotic AI

Session 2: 11:10am – 12:10am

NutransaSeabex by IT GrapesIN2SeezAutotell 

Session 3: 1:40pm – 2:40pm

SynkersVerboseMakerbraneArgineeringPureHarvest


Welcome Remarks
9:05 am – 9:25 am

Infrastructure and Connectivity: A Regional Perspective with Imad Kreidieh (Ogero Telecom) and Ari Kesisoglu (Facebook)
Access to the internet and connectivity is the driving force for the 4th industrial revolution. Join a conversation about how the Telco industry is changing in Lebanon and the region, and what that means for businesses and consumers. Sponsored by Facebook

9:25 am – 10:30 am

Startup Battlefield Competition – Flight #1
TechCrunch’s iconic startup competition is here and for the first time in MENA, as entrepreneurs from around the region pitch expert judges and vie for US$25,000 no-equity cash prize and a trip for two to compete in the Startup Battlefield at TechCrunch Disrupt in 2019.

10:30 am – 10:50 am

BREAK
10:50 am – 11:10 am

Jennifer Fong (Facebook)
Hear from Facebook’s head of the Developer Circles Program about their work with developers, startups and businesses to build, grow, measure, and monetize using Facebook and Messenger platform products. Sponsored by Facebook

11:10 am – 12:10 am

Startup Battlefield Competition – Flight #2
TechCrunch’s iconic startup competition is here and for the first time in MENA, as entrepreneurs from around the region pitch expert judges and vie for US$25,000 no-equity cash prize and a trip for two to compete in the Startup Battlefield at TechCrunch Disrupt in 2019.

12:10 pm – 1:10 pm

BREAK
12:15 pm – 1:15 pm

Workshop: Automated Driving Mobility in MENA with Mandali Khalesi (Toyota)
Toyota’s Global Head of Automated Driving Mobility and Innovation will share Toyota’s latest automated driving research findings and its plans for the future. There will be 30 minutes set aside for consultation, where the audience will have the opportunity to advise Toyota on both how it should go about developing automated driving mobility for MENA, as well as how best to work together with entrepreneurs in the region.

1:15 pm – 1:40 pm

Lessons 10 Years On with Omar Gabr (Instabug), Nour Al Hassan (Tarjama), Mai Medhat (Eventtus) and Ameer Sherif (Wuzzuf) – Moderated by Editor at Large Mike Butcher
Ten years ago the Middle East and North Africa’s tech ecosystem was worth perhaps tens of millions of dollars. Today it’s in the hundreds of millions, and beyond. A decade ago the societal landscape was very different from today. Let’s discuss the huge changes that have happened and challenges and opportunities ahead.

1:40 pm – 2:40 pm

Startup Battlefield Competition – Flight #3
TechCrunch’s iconic startup competition is here and for the first time in MENA, as entrepreneurs from around the region pitch expert judges and vie for US$25,000 no-equity cash prize and a trip for two to compete in the Startup Battlefield at TechCrunch Disrupt in 2019.

2:40 pm – 3:00 pm

Fireside Chat with Magnus Olsson (Careem) – Moderated by Managing Editor Matt Burns
How do you scale a big startup in MENA? We hear from Magnus Olsson, founder and Managing Director of ride-hailing giant Careem on how they joined the unicorn club with Lyft and Uber.

3:00 pm – 3:25 pm

Where Will the Exits Come From with Henri Asseliy (Leap Ventures), Priscilla Elora Sharuk (Myki), and Kenza Lahlou (Outlierz Ventures) – Moderated by News Editor Ingrid Lunden
Both VCs and startups in MENA alike are furiously building the companies of the future. But you can’t have a startup without an acquisition or IPO, so where are they going to come from? We’ll hear from both the founder and investor perspectives.

3:25 pm – 4:40 pm

Startup Battlefield Competition – Final Round
TechCrunch’s iconic startup competition is here and for the first time in MENA, as entrepreneurs from around the region pitch expert judges and vie for US$25,000 no-equity cash prize and a trip for two to compete in the Startup Battlefield at TechCrunch Disrupt in 2019.

4:40 pm – 4:55 pm

BREAK
4:55 pm – 5:20 pm

MENA Content Plays with Paul Chucrallah (BeryTech Fund), Hussam Hammo (Tamatem) and Rami Al Qawasmi (Mawdoo3) – Moderated by News Editor Ingrid Lunden
A little-known fact about the MENA market is the sheer lack of Arabic language content online for consumers, whether it be media, music, games or events. Arabic-specific sites have appeared, tailor-made to the market. We’ll get the perspective of key entrepreneurs in this space.

5:20 pm – 5:35 pm

Startup Battlefield Closing Awards Ceremony
Watch the crowning of the latest winner of the Startup Battlefield

Coinbase plots to become the New York Stock Exchange of crypto securities

The future of Coinbase looks something like the New York Stock Exchange. That’s according a vision laid out by CEO Brian Amstrong who was interviewed on stage at TechCrunch Disrupt in San Francisco today.

Coinbase is known for being the most popular exchange for converting fiat currency into crypto — most of the largest traded exchanges are crypto-to-crypto — but he foresees a future in which it plays host to a growing number of cryptocurrencies as it becomes standard for companies to create their own token, which runs alongside equity as an alternative investment system.

“It makes sense that any company out there who has a cap table… should have their own token. Every open source project, every charity, potentially every fund or these new types of decentralized organizations [and] apps, they’re all going to have their own tokens,” Armstrong said.

“We want to be the bridge all over the world where people come and they take fiat currency and they can get it into these different cryptocurrencies,” he added.

Brian Armstrong (Coinbase) says crypto regulation will result in the next version of the stock market #TCDisrupt pic.twitter.com/2kyxAmhPSZ

— TechCrunch (@TechCrunch) September 7, 2018

That tokenized future could see Coinbase host hundreds of tokens within “years” and even potentially “millions” in the future, according to Armstrong. That’s a big jump on the five cryptocurrencies that it currently supports today, and it would make it way larger than financial institutions like the New York Stock Exchange, which is actually a Coinbase investor and is getting into Bitcoin, or the NASDAQ.

One of the critical pieces of making this vision a reality is, of course, regulation. This week at Disrupt, others in crypto space have argued that a lack of clarity around crypto regulation is costing the U.S. as innovation and startups are being developed in overseas markets. As the founder of a U.S.-based crypto startup that is valued at over $1 billion and is hiring hard, Armstrong doesn’t subscribe to that thesis but he did admit that there is “a big open question” over whether the majority of the new rush of tokens he foresees will be securities or not.

Still, Coinbase has made moves to add security tokens to its portfolio with the acquisition of a securities dealer earlier this year.

“We do feel a substantial subset of these tokens will be securities,” he said. “Our approach has always been to be the most trusted [exchange] and the easiest to use. So we want to be the legal compliant place where you can start to trade these tokens that are classified as securities.”

“Web 1.0 was about publishing information, web 2.0 was about interaction and web 3.0 is going to be about value transfer on the internet because now the web has this native currency and so applications can be built that instantly tap into this global economy on the internet,” Armstrong added.

How international can crypto become? The Coinbase CEO thinks that the total number of people in the crypto ecosystem can reach one billion within the next five years, up from around 40 million today.

You can watch the full video from Armstrong’s interview below.

Note: The author owns a small amount of cryptocurrency. Enough to gain an understanding, not enough to change a life.

Lime just dropped some serious e-scooter drama

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E-scooters can really rile people up — whether it’s cities trying to contain the onslaught of the mini motorized vehicles, or celebs such as actor-turned-venture-capitalist Ashton Kutcher fighting for their rights at a tech conference, it seems we are a nation divided.

And sometimes, it’s the scooter companies that can get all hot and bothered.

Take Lime, for example. Last week, the San Francisco Municipal Transit Agency shut down any aspirations the scooter-share company had of operating in the city, instead giving two newer companies, Scoot and Skip, permits to test scooters within the city for the next year.  Read more…

More about Uber, San Francisco, Scooters, Lime, and Tech

San Francisco skies turn orange as wildfires return to Northern California

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San Francisco took on a post-apocalyptic shade of orange, after smoke from Northern Californian wildfires reached the city on Sunday.

Just under a year since the deadliest firestorms in state history, intense wildfire has returned to the region, fanned by high winds and hot temperatures.

Smoke and ash from fires burning in the Yolo and Lake counties filled the sky about 75 miles south in the San Francisco Bay Area on Sunday morning, giving the city a foreboding orange filter.

San Francisco sky is bizarre right now. Rayleigh scattering through this cloud is depleting all the blues and leaving us with a sepia skypic.twitter.com/weUDCkulsN

— Rick Zuzow (@RickZuzow) July 1, 2018 Read more…

More about California, San Francisco, Fire, California Fire, and California Wildfires

Shared housing startups are taking off

When young adults leave the parental nest, they often follow a predictable pattern. First, move in with roommates. Then graduate to a single or couple’s pad. After that comes the big purchase of a single-family home. A lawnmower might be next.

Looking at the new home construction industry, one would have good reason to presume those norms were holding steady. About two-thirds of new homes being built in the U.S. this year are single-family dwellings, complete with tidy yards and plentiful parking.

In startup-land, however, the presumptions about where housing demand is going looks a bit different. Home sharing is on the rise, along with more temporary lease options, high-touch service and smaller spaces in sought-after urban locations.

Seeking roommates and venture capital

Crunchbase News analysis of residential-focused real estate startups uncovered a raft of companies with a shared and temporary housing focus that have raised funding in the past year or so.

This isn’t a U.S.-specific phenomenon. Funded shared and short-term housing startups are cropping up across the globe, from China to Europe to Southeast Asia. For this article, however, we’ll focus on U.S. startups. In the chart below, we feature several that have raised recent rounds.

Notice any commonalities? Yes, the startups listed are all based in either New York or the San Francisco Bay Area, two metropolises associated with scarce, pricey housing. But while these two metro areas offer the bulk of startups’ living spaces, they’re also operating in other cities, including Los Angeles, Seattle and Pittsburgh.

From white picket fences to high-rise partitions

The early developers of the U.S. suburban planned communities of the 1950s and 60s weren’t just selling houses. They were selling a vision of the American Dream, complete with quarter-acre lawns, dishwashers and spacious garages.

By the same token, today’s shared housing startups are selling another vision. It’s not just about renting a room; it’s also about being part of a community, making friends and exploring a new city.

One of the slogans for HubHaus is “rent one of our rooms and find your tribe.” Founded less than three years ago, the company now manages about 80 houses in Los Angeles and the San Francisco Bay Area, matching up roommates and planning group events.

Starcity pitches itself as an antidote to loneliness. “Social isolation is a growing epidemic—we solve this problem by bringing people together to create meaningful connections,” the company homepage states.

The San Francisco company also positions its model as a partial solution to housing shortages as it promotes high-density living. It claims to increase living capacity by three times the normal apartment building.

Costs and benefits

Shared housing startups are generally operating in the most expensive U.S. housing markets, so it’s difficult to categorize their offerings as cheap. That said, the cost is typically lower than a private apartment.

Mostly, the aim seems to be providing something affordable for working professionals willing to accept a smaller private living space in exchange for a choice location, easy move-in and a ready-made social network.

At Starcity, residents pay $2,000 to $2,300 a month, all expenses included, depending on length of stay. At HomeShare, which converts two-bedroom luxury flats to three-bedrooms with partitions, monthly rents start at about $1,000 and go up for larger spaces.

Shared and temporary housing startups also purport to offer some savings through flexible-term leases, typically with minimum stays of one to three months. Plus, they’re typically furnished, with no need to set up Wi-Fi or pay power bills.

Looking ahead

While it’s too soon to pick winners in the latest crop of shared and temporary housing startups, it’s not far-fetched to envision the broad market as one that could eventually attract much larger investment and valuations. After all, Airbnb has ascended to a $30 billion private market value for its marketplace of vacation and short-term rentals. And housing shortages in major cities indicate there’s plenty of demand for non-Airbnb options.

While we’re focusing here on residential-focused startups, it’s also worth noting that the trend toward temporary, flexible, high-service models has already gained a lot of traction for commercial spaces. Highly funded startups in this niche include Industrious, a provider of flexible-term, high-end office spaces, Knotel, a provider of customized workplaces, and Breather, which provides meeting and work rooms on demand. Collectively, those three companies have raised about $300 million to date.

At first glance, it may seem shared housing startups are scaling up at an off time. The millennial generation (born roughly 1980 to 1994) can no longer be stereotyped as a massive band of young folks new to “adulting.” The average member of the generation is 28, and older millennials are mid-to-late thirties. Many even own lawnmowers.

No worries. Gen Z, the group born after 1995, is another huge generation. So even if millennials age out of shared housing, demographic forecasts indicate there will plenty of twenty-somethings to rent those partitioned-off rooms.

How did Thumbtack win the on-demand services market?

Earlier today, the services marketplace Thumbtack held a small conference for 300 of its best gig economy workers at an event space in San Francisco.

For the nearly ten-year-old company the event was designed to introduce some new features and a redesign of its brand that had softly launched earlier in the week. On hand, in addition to the services professionals who’d paid their way from locations across the U.S. were the company’s top executives.

It’s the latest step in the long journey that Thumbtack took to become one of the last companies standing with a consumer facing marketplace for services.

Back in 2008, as the global financial crisis was only just beginning to tear at the fabric of the U.S. economy, entrepreneurs at companies like Thumbtack andTaskRabbit were already hard at work on potential patches.

This was the beginning of what’s now known as the gig economy. In addition to Thumbtack and TaskRabbit, young companies like Handy, Zaarly, and several others — all began by trying to build better marketplaces for buyers and sellers of services. Their timing, it turns out, was prescient.

In snowy Boston during the winter of 2008, Kevin Busque and his wife Leah were building RunMyErrand, the marketplace service that would become TaskRabbit, as a way to avoid schlepping through snow to pick up dog food .

Meanwhile, in San Francisco, Marco Zappacosta, a young entrepreneur whose parents were the founders of Logitech, and a crew of co-founders including were building Thumbtack, a professional services marketplace from a home office they shared.

As these entrepreneurs built their businesses in northern California (amid the early years of a technology renaissance fostered by patrons made rich from returns on investments in companies like Google and Salesforce.com), the rest of America was stumbling.

In the two years between 2008 and 2010 the unemployment rate in America doubled, rising from 5% to 10%. Professional services workers were hit especially hard as banks, insurance companies, realtors, contractors, developers and retailers all retrenched — laying off staff as the economy collapsed under the weight of terrible loans and a speculative real estate market.

Things weren’t easy for Thumbtack’s founders at the outset in the days before its $1.3 billion valuation and last hundred plus million dollar round of funding. “One of the things that really struck us about the team, was just how lean they were. At the time they were operating out of a house, they were still cooking meals together,” said Cyan Banister, one of the company’s earliest investors and a partner at the multi-billion dollar venture firm, Founders Fund.

“The only thing they really ever spent money on, was food… It was one of these things where they weren’t extravagant, they were extremely purposeful about every dollar that they spent,” Banister said. “They basically slept at work, and were your typical startup story of being under the couch. Every time I met with them, the story was, in the very early stages was about the same for the first couple years, which was, we’re scraping Craigslist, we’re starting to get some traction.”

The idea of powering a Craigslist replacement with more of a marketplace model was something that appealed to Thumbtack’s earliest investor and champion, the serial entrepreneur and angel investor Jason Calcanis.

Thumbtack chief executive Marco Zappacosta

“I remember like it was yesterday when Marco showed me Thumbtack and I looked at this and I said, ‘So, why are you building this?’ And he said, ‘Well, if you go on Craigslist, you know, it’s like a crap shoot. You post, you don’t know. You read a post… you know… you don’t know how good the person is. There’re no reviews.’” Calcanis said. “He had made a directory. It wasn’t the current workflow you see in the app — that came in year three I think. But for the first three years, he built a directory. And he showed me the directory pages where he had a photo of the person, the services provided, the bio.”

The first three years were spent developing a list of vendors that the company had verified with a mailing address, a license, and a certificate of insurance for people who needed some kind of service. Those three features were all Calcanis needed to validate the deal and pull the trigger on an initial investment.

“That’s when I figured out my personal thesis of angel investing,” Calcanis said.

“Some people are market based; some people want to invest in certain demographics or psychographics; immigrant kids or Stanford kids, whatever. Mine is just, ‘Can you make a really interesting product and are your decisions about that product considered?’ And when we discuss those decisions, do I feel like you’re the person who should build this product for the world And it’s just like there’s a big sign above Marco’s head that just says ‘Winner! Winner! Winner!’”

Indeed, it looks like Zappacosta and his company are now running what may be their victory lap in their tenth year as a private company. Thumbtack will be profitable by 2019 and has rolled out a host of new products in the last six months.

Their thesis, which flew in the face of the conventional wisdom of the day, was to build a product which offered listings of any service a potential customer could want in any geography across the U.S. Other companies like Handy and TaskRabbit focused on the home, but on Thumbtack (like any good community message board) users could see postings for anything from repairman to reiki lessons and magicians to musicians alongside the home repair services that now make up the bulk of its listings.

“It’s funny, we had business plans and documents that we wrote and if you look back, the vision that we outlined then, is very similar to the vision we have today. We honestly looked around and we said, ‘We want to solve a problem that impacts a huge number of people. The local services base is super inefficient. It’s really difficult for customers to find trustworthy, reliable people who are available for the right price,’” said Sander Daniels, a co-founder at the company. 

“For pros, their number one concern is, ‘Where do I put money in my pocket next? How do I put food on the table for my family next?’ We said, ‘There is a real human problem here. If we can connect these people to technology and then, look around, there are these global marketplace for products: Amazon, Ebay, Alibaba, why can’t there be a global marketplace for services?’ It sounded crazy to say it at the time and it still sounds crazy to say, but that is what the dream was.”

Daniels acknowledges that the company changed the direction of its product, the ways it makes money, and pivoted to address issues as they arose, but the vision remained constant. 

Meanwhile, other startups in the market have shifted their focus. Indeed as Handy has shifted to more of a professional services model rather than working directly with consumers and TaskRabbit has been acquired by Ikea, Thumbtack has doubled down on its independence and upgrading its marketplace with automation tools to make matching service providers with customers that much easier.

Late last year the company launched an automated tool serving up job requests to its customers — the service providers that pay the company a fee for leads generated by people searching for services on the company’s app or website.

Thumbtack processes about $1 billion a year in business for its service providers in roughly 1,000 professional categories.

Now, the matching feature is getting an upgrade on the consumer side. Earlier this month the company unveiled Instant Results — a new look for its website and mobile app — that uses all of the data from its 200,000 services professionals to match with the 30 professionals that best correspond to a request for services. It’s among the highest number of professionals listed on any site, according to Zappacosta. The next largest competitor, Yelp, has around 115,000 listings a year. Thumbtack’s professionals are active in a 90 day period.

Filtering by price, location, tools and schedule, anyone in the U.S. can find a service professional for their needs. It’s the culmination of work processing nine years and 25 million requests for services from all of its different categories of jobs.

It’s a long way from the first version of Thumbtack, which had a “buy” tab and a “sell” tab; with the “buy” side to hire local services and the “sell” to offer them.

“From the very early days… the design was to iterate beyond the traditional model of business listing directors. In that, for the consumer to tell us what they were looking for and we would, then, find the right people to connect them to,” said Daniels. “That functionality, the request for quote functionality, was built in from v.1 of the product. If you tried to use it then, it wouldn’t work. There were no businesses on the platform to connect you with. I’m sure there were a million bugs, the UI and UX were a disaster, of course. That was the original version, what I remember of it at least.”

It may have been a disaster, but it was compelling enough to get the company its $1.2 million angel round — enough to barely develop the product. That million dollar investment had to last the company through the nuclear winter of America’s recession years, when venture capital — along with every other investment class — pulled back.

“We were pounding the pavement trying to find somebody to give us money for a Series A round,” Daniels said. “That was a very hard period of the company’s life when we almost went out of business, because nobody would give us money.”

That was a pre-revenue period for the company, which experimented with four revenue streams before settling on the one that worked the best. In the beginning the service was free, and it slowly transitioned to a commission model. Then, eventually, the company moved to a subscription model where service providers would pay the company a certain amount for leads generated off of Thumbtack.

“We weren’t able to close the loop,” Daniels said. “To make commissions work, you have to know who does the job, when, for how much. There are a few possible ways to collect all that information, but the best one, I think, is probably by hosting payments through your platform. We actually built payments into the platform in 2011 or 2012. We had significant transaction volume going through it, but we then decided to rip it out 18 months later, 24 months later, because, I think we had kind of abandoned the hope of making commissions work at that time.”

While Thumbtack was struggling to make its bones, Twitter, Facebook, and Pinterest were raking in cash. The founders thought that they could also access markets in the same way, but investors weren’t interested in a consumer facing business that required transactions — not advertising — to work. User generated content and social media were the rage, but aside from Uber and Lyft the jury was still out on the marketplace model.

“For our company that was not a Facebook or a Twitter or Pinterest, at that time, at least, that we needed revenue to show that we’re going to be able to monetize this,” Daniels said. “We had figured out a way to sign up pros at enormous scale and consumers were coming online, too. That was showing real promise. We said, ‘Man, we’re a hot ticket, we’re going to be able to raise real money.’ Then, for many reasons, our inexperience, our lack of revenue model, probably a bunch of stuff, people were reluctant to give us money.”

The company didn’t focus on revenue models until the fall of 2011, according to Daniels. Then after receiving rejection after rejection the company’s founders began to worry. “We’re like, ‘Oh, shit.’ November of 2009 we start running these tests, to start making money, because we might not be able to raise money here. We need to figure out how to raise cash to pay the bills, soon,” Daniels recalled. 

The experience of almost running into the wall put the fear of god into the company. They managed to scrape out an investment from Javelin, but the founders were convinced that they needed to find the right revenue number to make the business work with or without a capital infusion. After a bunch of deliberations, they finally settled on $350,000 as the magic number to remain a going concern.

“That was the metric that we were shooting towards,” said Daniels. “It was during that period that we iterated aggressively through these revenue models, and, ultimately, landed on a paper quote. At the end of that period then Sequoia invested, and suddenly, pros supply and consumer demand and revenue model all came together and like, ‘Oh shit.’”

Finding the right business model was one thing that saved the company from withering on the vine, but another choice was the one that seemed the least logical — the idea that the company should focus on more than just home repairs and services.

The company’s home category had lots of competition with companies who had mastered the art of listing for services on Google and getting results. According to Daniels, the company couldn’t compete at all in the home categories initially.

“It turned out, randomly … we had no idea about this … there was not a similarly well developed or mature events industry,” Daniels said. “We outperformed in events. It was this strategic decision, too, that, on all these 1,000 categories, but it was random, that over the last five years we are the, if not the, certainly one of the leading events service providers in the country. It just happened to be that we … I don’t want to say stumbled into it … but we found these pockets that were less competitive and we could compete in and build a business on.”

The focus on geographical and services breadth — rather than looking at building a business in a single category or in a single geography meant that Zappacosta and company took longer to get their legs under them, but that they had a much wider stance and a much bigger base to tap as they began to grow.

“Because of naivete and this dreamy ambition that we’re going to do it all. It was really nothing more strategic or complicated than that,” said Daniels. “When we chose to go broad, we were wandering the wilderness. We had never done anything like this before.”

From the company’s perspective, there were two things that the outside world (and potential investors) didn’t grasp about its approach. The first was that a perfect product may have been more competitive in a single category, but a good enough product was better than the terrible user experiences that were then on the market. “You can build a big company on this good enough product, which you can then refine over the course of time to be greater and greater,” said Daniels.

The second misunderstanding is that the breadth of the company let it scale the product that being in one category would have never allowed Thumbtack to do. Cross selling and upselling from carpet cleaners to moving services to house cleaners to bounce house rentals for parties — allowed for more repeat use.

More repeat use meant more jobs for services employees at a time when unemployment was still running historically high. Even in 2011, unemployment remained stubbornly high. It wasn’t until 2013 that the jobless numbers began their steady decline.

There’s a question about whether these gig economy jobs can keep up with the changing times. Now, as unemployment has returned to its pre-recession levels, will people want to continue working in roles that don’t offer health insurance or retirement benefits? The answer seems to be “yes” as the Thumbtack platform continues to grow and Uber and Lyft show no signs of slowing down.

“At the time, and it still remains one of my biggest passions, I was interested in how software could create new meaningful ways of working,” said Banister of the Thumbtack deal. “That’s the criteria I was looking for, which is, does this shift how people find work? Because I do believe that we can create jobs and we can create new types of jobs that never existed before with the platforms that we have today.”

Reddit found this dude’s stolen car in a matter of hours

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Getting your car stolen is one of the worst things, but finding it can be MUCH easier than it was a decade ago.

Over Thanksgiving week, Sebastiaan de With, a freelance designer and photographer, got his Land Rover Defender stolen in the San Francisco Bay Area, after just having purchased it a little over a year ago.

Desperate to find any help in locating his car, de With decided to post about it on Twitter and Reddit, asking people to contact him if they happen to see it.

“I thought it’d be pointless to post it, but on the other hand, I really wanted to find my car,” de With told the SF Gate. “They’re extremely hard cars to find in the U.S., and I was waiting on an appraiser to come around to get full coverage, full-value insurance. So it being gone meant I had absolutely nothing, not even a claim payout.” Read more…

More about Twitter, Reddit, San Francisco, Social Media, and Car

Thieves stole more than 300 iPhone X devices from a UPS truck

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Even your iPhones are not safe.

More than 300 iPhones have been stolen from a UPS track in San Francisco, with the thieves making away with some $300,000 worth of products.

The thieves staked out the truck and grabbed a shipment, before it managed to deliver to an Apple store at the Stonestown Galleria shopping mall in San Francisco, according to news outlet CBS SF. 

They broke in and took all the smartphones whilst the UPS driver was at Macy’s making a delivery.

The thieves are still at large, and police are asking for help in tracking them down. 

“A witness observed three unidentified suspects wearing hooded sweatshirts exit a white Dodge van,” San Francisco Police Department Captin Rick Yick said. Read more…

More about Apple, San Francisco, Iphone Theft, Iphone X, and Iphone Theft San Francisco

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Crunch Report | SoftBank Vision Fund Sequels

SoftBank is planning to create $100 billion Vision Fund sequels, Chariot is temporarily paused in San Francisco and Stitch Fix shows us what a good IPO looks like. All this on Crunch Report. Read More

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Watch Cruise’s self-driving Bolt EV navigate smoothly to SF’s Dolores Park

self-dirving-cruise GM-owned Cruise Automation wants you to be able to see the progress it’s making with its self-driving car tests, in a way that’s more tangible than looking at boring lists of disengagement reports. That’s why it’s been publishing videos of its Cruise test cars navigating real city streets, and a new episode of that video series is available now, showing a Bolt EV… Read More

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SF in SF: see Kim Stanley Robinson & Cecelia Holland live in San Francisco this Saturday

The next installment in the extraordinary lecture/reading series features Hugo-winning environmentalist author Kim Stanley Robinson and prolific historical novelist Cecelia Holland: $10 donation at the door, no one turned away for lack of funds. (Images: AllyUnion, CC-BY-SA; Other Change of Hobbit)

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