Steve Thomas - IT Consultant

Many teachers and parents in Indonesia rely on WhatsApp to keep in touch, creating “multiple groups that often become messy and highly ineffective, and result in confusion or lost threads,” says Rizky Aniez, the co-founder and chief executive officer of Gredu. The Jakarta-based startup was created to give everyone involved in the educational process—school administrators, teachers, parents, guardians and students—apps that let them keep track of everything and communicate with one another. Today it is announcing a $4 million Series A, led by Intudo Ventures, an Indonesia-focused venture capital firm, with participation from returning investor Vertex Ventures. 

While some teachers use Google Classroom, Gredu was created to work with Indonesia’s K-12 National Curriculum and Islamic Curriculum programs, used in both private and public schools. The startup is also developing new verticals, including software for preschools and university programs. 

Founded in September 2016, Gredu is now used by more than 400 schools, with a total of 400,000 users.  Its Series A will be used to expand in the Greater Jakarta Region and into major cities throughout Indonesia, plus product development and hiring. 

Gredu’s subscription software is centered around a management system that lets administrators and teachers keep on touch of all their their tasks—including syllabuses, teaching schedules and communicating with parents and students. Aniez told TechCrunch that the onboarding process is simple, and “in an ideal solution, it can be done within hours.” Gredu was designed to be modular, so it can be customized to a school or district’s needs. 

The platform currently has four main parts. Gredu School Management System was created for administrators, while Gredu Teacher lets educators track student attendance, create and score exams and arrange class activities. Gredu Parents enables parents and guardians to keep track of their kids’ performance and talk to teachers. Gredu Student, meanwhile, lets students look up their test scores, attendance records and school activities. 

Gredu launched an Online Assignment feature before COVID-19 and during the pandemic, it added Interactive Class to enable remote learning. Aniez said the company plans to add new features and adapt Interactive Class for other uses once in-person schooling becomes the norm again. “We believe that many of the digitization in schools adopted during the pandemic will continue to be used for the future, changing the way administrators manage schools and improving transparency for local education authorities, teachers and parents,” he added.

Gredu is part of a crop of Indonesian edtech startups that have recently raised funding, including tuition platform InfraDigital; homework help and tutoring app CoLearn; and ErudiFi for education financing. 

In a statement, Intudo Ventures founding partner Patrick Yip said, “Working with school districts and administrators, GREDU provide innovative solutions specifically tailored to enhance the quality, transparency and effectiveness of Indonesia’s education system. We are proud to support GREDU at this critical juncture as they help more schools digitize their operations and create positive impact for students throughout Indonesia.” 

Shares of Chinese ride-hailing business Didi are off 22% this morning after the company was hit by more regulatory activity over the holiday weekend. The recently public company traded as high as $18.01 per share since it held an IPO last week; today, shares of Didi are worth just $12.09, off around a third from their 52-week high.


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The decline in value follows a review by a Chinese cybersecurity agency that led to Didi being unable to onboard new users, a decision that arrived as last week rolled to a close.

Over the weekend, Didi was hit with more regulatory action. This time, the Cyberspace Administration of China said, via an internet translation, that “after testing and verification, the ‘Didi Travel’ App [was found to have] serious violations of laws and regulations in collecting and using personal information,” which led the agency to command app stores “to remove the ‘Didi Travel’ app, and required [the company] to strictly follow the legal requirements and refer to relevant national standards to seriously rectify existing problems.”

Being yanked from relevant app stores was enough for Didi to alert investors that its mobile app “had the problem of collecting personal information in violation of relevant PRC laws and regulations.” Didi said that the change in its app availability “may have an adverse impact on its revenue in China.”

Understatement of the year, I reckon.

But there’s more going on than what Didi is enduring. As CNBC reported:

As firework volleys launched out of New York City harbor last night, a very different celebration was likely taking place just a few blocks down the street at Verizon’s official headquarters in Midtown.

The telco, which owns TechCrunch for hopefully just a few more weeks pending the close of the Apollo acquisition of our parent company Verizon Media, announced overnight that it had signed an agreement with Z Holdings, a division of Japan’s SoftBank Group, to sell trademarks within the Japan market around the Yahoo brand and related tech infrastructure for approximately $1.6 billion.

The extremely descriptive Z Holdings owns SoftBank’s internet businesses in Japan, most notably Yahoo Japan, whose web portal remains the country’s most trafficked news website. Under its most current agreement with Verizon Media (formerly Oath, formerly AOL + Yahoo), Yahoo Japan paid a regular royalty for the rights to use the Yahoo brand name in Japan and associated technologies. Those royalties will now stop in lieu of a one-time upfront payment.

The resolution of the agreement was one of the key nuances left to figure out in Apollo’s $5 billion buyout of Verizon Media. The deal will give Verizon significant additional consideration as it works to pare down its debt load acquired from a spending spree on wireless spectrum auctions, such as its $52.9 billion acquisition of C-band spectrum earlier this year.

In a press statement from Z Holdings, the company said that “Although the Yahoo Japan License Agreement will be terminated, Yahoo Japan and Verizon Media will retain their cooperative business and technology relationship. Yahoo Japan will continue to deliver more convenient and innovative services under the ‘Yahoo! JAPAN’ brand, based on its mission statement: ‘UPDATE JAPAN.’” Expect further patches to Japan to be delivered shortly, I guess.

Shares of Chinese ride-hailing provider Didi are sharply lower this morning after news broke that its domestic regulators are investigating the newly public company. A loose translation of the probe’s official notice indicates that the cybersecurity review is “in order to prevent national data security risks, maintain national security, and protect the public interest.”

Yesterday, regulators ordered Didi to stop registering new users during the investigation.

The move comes amid a larger reset of relations between China’s burgeoning technology sector and its autocratic government. Other fallouts from the campaign included the effective silencing of Jack Ma, the embarrassing cancellation of the Ant IPO, and a crackdown on data collection from technology companies more broadly.


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China is not the only nation grappling with its technology sector; India has made consistent noise in recent months regarding tech firms inside its borders, for example. And there is effort inside the U.S. Congress to put some cap on Big Tech’s scale and power, though of the trio, the United States appears the least likely to take a real swipe at technology companies’ market influence.

That Didi has run afoul of China’s regulatory bodies is not a surprise; it’s a well-known tech company in the country with lots of consumer data. Similar data-rich tech shops in the country have come under increased scrutiny as well.

But to see Didi get taken to task mere days after its U.S. debut puts a bad taste in our mouths.

The way that this saga reads from the cynical perspective is that the Chinese Communist Party was willing to let the company go public in the United States, allowing it to raise billions of dollars from foreign sources. And that the ruling party was then content to leave them holding a mid-sized bag by announcing its cybersecurity probe.

Hanlon’s Razor is at play in this situation, naturally.

Didi has not published a new SEC filing since June 30, and, as of the time of writing, its investor relations page is devoid of any information regarding today’s news.

While going public, it’s worth noting that Didi did warn investors that it faces a host of risks relating to its status as a Chinese company, namely its government, and as a Chinese company going public in the United States. Observe the following risk factors that it shared while going public (emphasis added) that dealt with the company’s business operations:

  • Our business is subject to numerous legal and regulatory risks that could have an adverse impact on our business and future prospects.
  • Our business is subject to a variety of laws, regulations, rules, policies and other obligations regarding privacy, data protection and information security. Any losses, unauthorized access or releases of confidential information or personal data could subject us to significant reputational, financial, legal and operational consequences.

The American IPO market is hot for many companies, but surprisingly cool for others. The gap between the two cohorts of private companies looking to list is becoming notable.

When Chinese ride-hailing giant Didi first set an IPO price range, The Exchange was curious about why the company felt so inexpensive. Compared to its American comps, shares in Didi simply felt underpriced at its proposed valuation interval. Recently, Didi stuck to its initial expectations by pricing at $14 per share, the upper end of its range, but no higher.

This week also brought a lackluster float for Chinese grocery-delivery company DingDong, which cut its IPO raise but only managed a flat American debut. Another China-based online grocery delivery service that went public domestically last week, Missfresh, is doing even worse.

With just those few data points, you’d be hard-pressed to be particularly bullish about U.S.-listed IPOs. Why go public in the United States if you are going to be underpriced and then trade poorly? The answer is that while many Chinese companies are seemingly struggling to find the demand that they expect for their shares on American exchanges, domestic companies are seeing some opposite results.


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We’re talking tech companies here, I should add; The Exchange doesn’t track IPO results for commodities diggers and biotech labs. It’s a big world. We have to focus.

There are contrary data points to our general thesis. Nio’s recent share price appreciation could be construed as such. But if we parse recent IPO news from SentinelOne and Xometry in contrast to what we’ve seen from Chinese tech companies’ own paths to the American public markets, there really does seem to be a gap forming.

Uneven ground

Didi’s IPO price of $14 per share values the company at around $67 billion on a non-diluted basis, and as high as $70 billion if we counted more shares in its market cap calculations. As we previously calculated, with around $6.5 billion in total Q1 2021 revenue and positive net income, the company is trading at a stiff multiples discount to Uber.

Indeed, Uber’s trailing price/sales ratio is north of 8x. If we valued Didi’s revenues from the last twelve months at the same price, it would be worth nearly $179 billion. It’s not. And that’s the gap that we want to stress.

That a few other Chinese tech IPOs listed in the United States underperformed in the last week is contrasted by a blizzard of positive IPO results from domestic companies from just this week:

Istanbul in Turkey continues to prove itself as very fertile ground for casual gaming startups, which appear to be growing from small seedlings into sizable trees. In the latest development, Dream Games — a developer of mobile puzzle games — has raised $155 million in funding, a Series B that values the startup at $1 billion.

This is a massive leap for the company, which raised $50 million (the largest Series A in Turkey’s startup history) only 3.5 months ago. This latest round is being co-led by Index Ventures and Makers Fund, with Balderton Capital, IVP and Kora also participating. It also comes in the wake of a bigger set of deals in the world of gaming and developers in Turkey, the most prominent of which saw Zynga acquire Peak Games for $1.8 billion, amid other acquisitions. Dream is one of several startups in the region founded by alums from Peak.

The focus of the funding, and currently of Dream Games itself, is Royal Match, a puzzle game (iOS, Android) that launched globally in March.

The game has been a huge hit for Dream, with 6 million monthly active users and $20 million/month in revenues from in-game purchases (not ads), according to figures from AppAnnie. (A source close to the company confirmed the figures are accurate, but Dream did not disclose its revenue numbers or revenues directly.) This has catapulted it into the top-20 grossing games categories in the U.S., U.K., and Germany, the same echelon as much older and bigger titles like Candy Crush and Homescapes.

“The funding will be used for heavy user acquisition in every channel and every geography,” Soner Aydemir, co-founder and CEO, Dream Games, told me in an interview. He said Asia would be a focus in that, specifically Japan, South Korea and China. “Our main target is to scale the game so that it becomes one of the biggest games in the global market.”

The world of mobile gaming has in many respects been a very cyclical and fickle one: today’s hot title becomes tomorrow’s has-been, while for developers, they can go through dozens of development processes and launches (and related costs) before they find a hit, if they find a hit. The role of app-install ads and other marketing tools to juice numbers has also been a problematic lever for growth: take away the costs of running those and often the house of cards falls apart.

Aydemir agrees, and while the company will be investing in those aforementioned in-game ads to encourage more downloads of Royal Flush, he also said that this strategy can work, but only if the fundamentals of the game are solid, as is the case here.

“If you don’t have good enough metrics, even with all the money in the world it’s impossible to scale,” he said. “But our LTV [lifetime value] is high, and so we think it can be scaled in a sustainable way because of the quality of the game. It always depends on the product.”

In addition to its huge growth, Dream has taken a very focused approach with Royal Flush, working on it for years before finally releasing it.

“We spent so much time on tiny details, so many tests over several years to create the dynamics of the game,” he said. “But we also have a feel for it,” he added, referring to the team’s previous lives at Peak Games. “Our users really appreciate this approach.”

For now, too, the focus will just one the one game, he said. Why not two, I asked?

“We believe in Pixar’s approach,” Aydemir said. “When Pixar started, it was very low frequency, a movie every 2-3 years but eventually the rate increased. And it will be similar for us. This year we need to focus on Royal Match but if we can find a way to create other games, we will.”

He added that the challenge — one that many startups know all too well — is that building a new product, in this case a new game, can take the focus away when you are a small team and also working on sustaining and maintaining a current game. “That is the most difficult and challenging part. If we can manage it we will be successful; otherwise we will fail because our business model is basically creating new IP.” He added that it’s likely that another game will be released out into the world at the beginning of next year.

The focus, in any case, was one of the selling points for its investors. “The Dream Games team’s deep genre insight, laser-focus on detail and team chemistry has helped create the early success of Royal Match,” said Michael Cheung, General Partner at Makers Fund, in a statement. “We’re excited to be on the journey with them as they grow Royal Match globally.”

In terms of monetization, Dream Games is pretty firmly in the camp of “no ads, just in-app purchases,” he said. “It’s really bad for user experience and we only care about user experience, so if you put ads in, it conflicts with that.”

Some of the struggles of building new while improving old product will of course get solved with this cash, and the subsequent hiring that Dream Games can do (and it’s doing a lot of that, judging by the careers section of its website). As more startups emerge out of the country — not just in gaming but also areas like e-commerce, where startups like Getir are for example making big waves in instant grocery delivery — it will be interesting to see how that bigger talent pool evolves.

“Since its launch in early March, Royal Match has become one of the top casual puzzle titles globally, driven by once in a decade retention metrics. It speaks to the sheer quality of the title that the Dream Games team has built and the flawless polish and execution across the board,” commented Stephane Kurgan, venture partner at Index Ventures and former COO of King. Index is also the backer of Roblox, Discord, King and Supercell, in a statement.

China is one of the world’s wealthiest digital economies today, with a hardware supply chain that is unrivaled and a panoply of prominent and massively profitable companies like Alibaba, Tencent and ByteDance taking a leading role in the world. Yet, all of this cutting-edge innovation rests on a forty-year-old solution to one of the great computing challenges: the development of Chinese word processing.

Beginning in the early 1980s, China dramatically expanded its computing purchases from the United States and the West, importing just 600 foreign-built microcomputers in the year 1980, as compared to 130,000 in 1985. Companies in the United States, Japan, and Europe clamored to get in on this “buying binge,” as one observer called it.

There was a major problem, however, both for potential Chinese computer users and Western manufacturers: no Western-built personal computer, printer, monitor, operating system, program, or otherwise was capable of handling Chinese character input or output—not in the early and mid-1980s, anyway, and certainly not “out of the box.” Without some major overhauls, mass-manufactured personal computers were effectively useless for anyone wanting to operate in Chinese.

One of the most important reasons was the problem of memory—specifically the memory required for Chinese fonts. At the advent of Latin alphabetic computing, Western engineers and designers determined that a font for English could be built upon a 5-by-7 bitmap grid—requiring only 5 bytes of memory per symbol. Although far from aesthetically pleasing, this grid offered sufficient resolution to render the letters of the Latin alphabet legibly on a computer terminal or a paper printout. Storing the 95 printable characters of US ASCII required just 475 bytes of memory—a tiny fraction of, for example, the Apple II’s then 48K of motherboard memory. 

To achieve comparable, bare-minimum legibility for Chinese characters, the 5-by-7 grid was far too small. When designing a bitmap font for Chinese, engineers had no choice but to increase the size of the Latin alphabetic grid geometrically, from 5-by-7 pixels to upwards of 16-by-16 pixels or larger, or at least 32 bytes of memory per Chinese character. The total memory required to store just the bitmaps (in either simplified or traditional form, but not both, and with no accompanying metadata) would equal approximately 256K for the 8,000 most commonly used Chinese characters, or four times the total capacity of most off-the-shelf personal computers in the early 1980s. All this, even before accounting for the RAM requirements for the operating system and application software.

Draft bitmaps from the Sinotype III Chinese font, prepared prior to digitization. Courtesy of Louis Rosenblum Papers, Stanford University Special Collections.

Such is the context for one of the great engineering histories of modern computing, a tale of entrepreneurial daring and engineering ingenuity that provides a unique look into the global development of the digital revolution.

This is the first of two articles on TechCrunch in which I examine the Sinotype III, an experimental machine which was among the first personal computers to handle Chinese-language input and output. Built atop a store-bought Apple II—but outfitted with a custom-programmed word processor and operating system—Sinotype III served as a “proof of concept” which demonstrated how one could “translate” Western-manufactured computers into Chinese, and thereby open up a vast new marketplace.

In this first part, I will examine the profound technical challenges around computer memory, fonts, and operating systems faced by the creators of Sinotype III, and how they devised novel solutions to overcome them.

The chutzpah of a newly minted graduate who had no immediate job prospects”

Our story begins with the Graphic Arts Research Foundation (GARF)—the organization where, arguably, Chinese computing was born. The Ideographic Composing Machine, also known as the Sinotype, was invented in the late 1950s by MIT electrical engineer, Samuel Hawks Caldwell with GARF funding. Following his untimely death in 1960, the project came to a standstill. During the 1960s and 1970s, the Sinotype project was kept alive by a number of different parties, including the Itek Corporation, RCA, and finally, GARF once again.

Keyboard of Sinotype I, designed by Samuel Caldwell in the late 1950s. Courtesy of Louis Rosenblum Papers, Stanford University Special Collections.

Sinotype’s homecoming was thanks in large part to one man: Louis Rosenblum. Born in 1921 in New York City, he was yet another member of the MIT family, graduating in 1942 with an undergraduate degree in Applied Math. Studying under Harold Edgerton, the world-renowned professor of Electrical Engineering (and who shot the famous “milk drop coronet” photo in in the 1930s), Rosenblum took a job at Polaroid immediately following graduation, working with Edwin Land on a variety of projects, including the development of instant photography. In 1954, he moved to Photon—where he worked on photocomposition of non-Latin writing systems. Deeply familiar with the late Caldwell’s pioneering work on Sinotype, Rosenblum effectively adopted the project, and revived it when he joined GARF as a consultant in the mid-1970s.

Diagram showing configuration of Sinotype II system, running on a Nova 1200 CPU. Courtesy of Louis Rosenblum Papers, Stanford University Special Collections.

GARF continued to work on the Sinotype project well into the early 1980s, by which point it had developed an advisory board featuring a host of renowned scholars, as well as those with deep China experience. Harvard linguist Susumo Kuno came on board; as did Richard Solomon, known for his pivotal role in Richard Nixon’s visit to the PRC in 1972 and then head of the Social Science Department at the RAND Corporation.

As stellar as this brain trust was, however, GARF’s major breakthrough on the Sinotype project—the leap from a minicomputer-based system (Sinotype II) to one based on a microcomputer (Sinotype III)—was catalyzed by a college student whose only experience at GARF to date was a brief, two-week gig working on data management for the Sinotype II project in 1979. He was Bruce Rosenblum, Louis Rosenblum’s son.

Bruce Rosenblum using the Sinotype III system. Courtesy of Louis Rosenblum Papers, Stanford University Special Collections.

As an undergraduate at the University of Pennsylvania and an aspiring photojournalist, Bruce was balancing his time between coursework and his role as Photo Editor for the independent student-run newspaper Daily Pennsylvanian. The paper was remarkably advanced in terms of the equipment it ran, as well as the deep expertise of the students in charge.

By the fall of Bruce’s junior year, the paper’s existing typesetting equipment (two Compugraphic typesetters) were on their last legs and needed to be replaced. Along with three of his student colleagues at the paper, Bruce assisted in the process of researching potential replacements, eventually settling on a combined $125,000 contract with two companies: Mycro-Tek in Wichita, Kansas, and Compugraphic, in Wilmington, Massachusetts.

As for the Sinotype project—one that Bruce was well aware of, thanks to his father, but with which he had no involvement—a pivotal moment came in early May 1981. Bruce had just completed his final exams, and stopped by the offices of the paper. His colleague Eric Jacobs was there, hard at work on a TRS-80 Model II personal computer from Radio Shack. Jacobs was contemplating how this microcomputer might be used to run the newspaper’s business operations. Bruce observed for perhaps thirty minutes, before heading on with his day. 

Those thirty minutes stuck with him, however. “It was the first time I’d ever seen anyone work on a microcomputer,” Bruce recalled by email to me, “and those few minutes were the inspiration that triggered the whole Sinotype III project and eventually my career in computers.”

Later that same week, Bruce made a somewhat off-the-cuff remark in a phone call with his father. Referencing the immense cost of the Data General hardware GARF was then using to build Sinotype II, Bruce remarked that someone could probably program something equivalent or better on a microcomputer for a fraction of the cost—perhaps with as little as $10,000 worth of hardware, as compared to the more-than $100,000 price tag for the equipment GARF was currently funding.

His father was intrigued. Louis asked Bruce if he himself might be up to the task of programming such a machine. Bruce boasted no formal training in computer science, although he had worked intensively with computers in high school, and taught himself both PDP-8 assembly language and BASIC. “Sure,” he responded to his father’s query with “the chutzpah of a newly minted graduate who had no immediate job prospects.”

During his world tour, Bruce Rosenblum continued to work on the Sinotype III project, including on notepaper from New Delhi. Courtesy of Louis Rosenblum Papers, Stanford University Special Collections.

In June 1981, Bruce had a formal meeting in New York with Bill Garth, Prescott Low, and his father Louis, to present his Sinotype III proposal. Bruce dressed for the part, arriving in a three-piece suit. In Bruce’s formal proposal, he cited a total of $7,500 in hardware costs, with an additional $5,000 for programming fees. The plan promised a Chinese word processor, running on an Apple II, delivered in approximately four months’ time. If this worked, it would reduce the cost of such a machine by an order of magnitude.

Bruce got the job and went on to program Sinotype III from June to November 1981, balancing time between this and his full-time job as a tour guide for the National Park Service at Independence Hall in Philadelphia. During daytime breaks he would write out assembly code by hand, transcribing it at night. When Labor Day in 1981 came, and Bruce’s tour guide job ended, he dedicated two months straight to finishing the code, and delivered it to GARF.

Memory hacking 

The first problem that GARF and the Rosenblums faced was that of computer memory. Developers of early Chinese personal computers explored every available option in their effort to juice as much memory as possible out of their systems. We will explore two strategies in particular, sometimes employed in isolation, but often in concert: Adaptive Memory and Chinese Character Cards.

The Sinotype III system comprised five components: a Sanyo DM5012CM 12-inch monitor; an Epson MX-70 printer; a Corvus 10 MB “Rigid Disk Storage” for storing the Chinese character bitmap database and their corresponding “descriptor codes”; an Apple Disk Drive “for storage of text files”; and the Apple II itself.

Out of the box, the Apple II came with 32K of RAM, extensible to 48K on the motherboard. “We maxed that out even before the Apple II left the store,” Bruce Rosenblum remarked by email to me. 48K of memory was still far too little for his purposes, however, and so Bruce opted for what, at the time, was a fully standard modification, commonly employed by so-called “power users” of the era: namely, to insert an additional 16K memory card in Slot 0, thereby bringing the total available memory to 64K. 

Even this was too little, however. “I needed more RAM to store a full encoding system,” he said, “and also the 16-by-16 bitmaps for the 100 most frequent ideographs.”

He began to explore a “mod” of the Apple II that few if any others had tried before. “Somehow,” he said, “I figured out I could put a second 16k board in slot 2 of the Apple II, and that gave me a total of 80k.” “Completely non-standard,” he continued, “but it worked with off-the-shelf components.”

This modification pushed the machine past its own limitations, however. The 6502 microprocessor on the Apple II was only capable of accessing 64K of memory directly—meaning that, even with the additional 16K Bruce had managed to bootstrap in with the second memory board, there was simply no built-in way for the Apple II to simultaneously access these additional addresses in memory. So “non-standard” was this mod that, when he told an Apple engineer about it during one of his many conversations, the Apple rep was shocked—he had never heard of, or thought of, doing such a thing. 

To enable the Apple II to access 80K of memory, rather than just 64K, Bruce dispensed with the out-of-the-box operating system and programmed his own in assembly language. Key to his custom-designed program was the possibility of “selecting between two banks of 16K that overlap each other.” In other words, although only 64K worth of memory locations would be accessible at any one instant, by rapidly oscillating between the two memory expansion cards, he could in effect trick the computer into accessing both at speeds that, from the perspective of the user, would have been negligible. That squeezed 25 percent more memory out of the system, enabling the inclusion of perhaps as many as 400 more Chinese characters in on-board memory.

Bruce delivered the final code to GARF the week before Thanksgiving, and then set out on a world backpacking tour that would take him across Europe and Asia. From this point on, development of Sinotype III would be largely in the hands of Louis Rosenblum and GARF, although Bruce continued to serve as a consultant, exchanging frequent correspondence with his father from wherever in Europe, China, India, or elsewhere he found himself at the moment.

Speeding toward real-time Chinese typing

Even with his ingenious mod, however, Louis and Bruce estimated that a mere 600 to 1000 Chinese characters would be able to fit in on-board memory. When accounting for the size of Sinotype III’s operating system, program applications, and the memory requirements of each Chinese character, the vast majority of Chinese characters in the machine’s lexicon would need to be stored somewhere else, whether on floppy disks, an external hard drive, or via some other hardware solution. 

Sinotype III Computer Monitor. Courtesy of Louis Rosenblum Papers, Stanford University Special Collections.

Early on, Bruce briefly contemplated using PROM (Programmable Read-Only Memory) chips—but this idea quickly revealed itself to be a dead end. Circa 1981 and 1982, the largest PROM chips on the market maxed out at 2K of memory, which translated into a mere 28 to 51 Chinese characters. In order to store 7,000 Chinese characters in this fashion, then, Bruce would have needed either 138 or 250 PROM chips. “That’s a lot of chips,” he remarked.

Bruce then considered the possibility of storing characters on floppy disks. This, too, proved unworkable, not only because of the large number of disks it would have required, but also the slow access and retrieval speeds involved in fetching character bitmaps from floppy drive storage. GARF opted instead for a third solution: to outfit Sinotype III with an external hard drive, which at the time was an almost unheard-of microcomputer accessory. In order to overcome the profound memory limitations, GARF would store thousands of lower-frequency Chinese characters “off-site” in the system’s external hard drive: a 10 MB Corvus “Rigid Disk Storage.”

This had negative implications for the operating speed of Sinotype III, however. Within the space-time continuum of computing, in which most operations take place at blazing sub-second speeds, hard drives were cumbersome beasts. Particularly at this time, they relied on rigid magnetic disks—“platters”—that rotated within the device, not unlike a record player. The contents of various “tracks” were read by a head, similar to how the grooves on a record are read by the needle. Retrieval speeds depended upon the location of the head, and the particular rotational position of the disk at the moment of the retrieval request. Not unlike arriving at the stop to find that the bus has just departed, one had no option except to wait until the bus came back around again.

In concrete terms, retrieval times for Chinese characters stored on the hard drive were 10 times slower than those stored in RAM. Specifically, the retrieval time for those Chinese characters stored in RAM could be achieved in approximately 100 milliseconds per character—a unit of time imperceptible by human cognition. As for the characters stored in external storage, however, the input of any of these characters required as much as a full second to access and retrieve—a unit of time well within the threshold of human perception.

A one-second input time would have proven devastatingly slow within the context of mid-1980s personal computing, where users in English-language contexts were quickly becoming accustomed to real-time typing. In addition, one second is, obviously, ten times as long as 100 milliseconds, meaning that the average user would be able to feel this differential each and every time he or she wished to input lower-frequency characters.

In order to mitigate this problem, Louis Rosenblum hit upon an idea which he referred to as “adaptive temporary storage.” Sinotype III would be able to adjust the set of characters stored in RAM depending upon what the user had recently inputted. Upon initial boot, Sinotype III’s on-board RAM would be outfitted only with a predetermined set of high-frequency characters. The inputting of any hard-drive-based infrequent character would take up to one second, as noted above. However, “as each of the less frequent ideographs is keyboarded,” he explained in a letter at the time, “its code and dot matrix pattern will be noted in the random access memory.” In other words, such characters would be temporarily copied from the hard drive to on-board RAM cache, thereby reducing subsequent retrieval times.

Internal GARF document showing Sinotype III character database and metadata. Courtesy of Louis Rosenblum Papers, Stanford University Special Collections.

Chinese-on-a-Chip

Even with recourse to toggling and adaptive memory, there remained many thousands of characters that fell beyond the limits of such strategies. While high-frequency Chinese characters accounted for a large percentage of overall usage, the production of any kind of technical or specialist content would have certainly brought the user repeatedly into the “off-site” repository of Chinese characters. More of these “low-frequency” characters needed to be brought “on-site” if the experience of Chinese computing was ever going to approach the same feeling of instantaneity enjoyed by English-language counterparts. 

Engineers in the late 1970s and early 1980s began to explore a different hardware solution, referred to as “Chinese Character Cards” (Hanka), “Chinese Cards” (Zhongwenka), “Chinese Character Generators,” “Chinese Font Generators” (Hanzi zimo fashengqi) or, as one article delightfully referred to them, “Chinese-on-a-Chip.” Much like memory cards and graphic cards, “Chinese character cards” were designed to be installed directly into motherboard expansion slots. Hardwired into these cards were thousands of Chinese bitmaps and input encodings. In effect, they served the same role as an external hard drive, but at far faster speeds and with more reliable performance. 

“Chinese-on-a-chip” cards were not the focus of research at GARF. Rather, they grew out of the earlier era of custom-designed Chinese systems, all prior to the personal computing revolution. These included systems such as the Ideographix IPX, by Chan Yeh, and the Olympia 1011, which were outfitted with microprocessors whose sole purpose was the generation of character bitmaps and the storage of input descriptors. On the Olympia 1011 Chinese word processor—basically a single-purpose electric Chinese typewriter—one of the three Intel 8085 processors was dedicated exclusively to Chinese character generation.

During the early 1980s, such character generators were commoditized and turned into saleable products themselves. No longer did one need to buy a full-fledged word processor, such as the Olympia 1011, to gain access to this kind of on-board character generator. Instead, one could purchase a “Chinese Character Card” and then install it on one’s personal computer of choice. 

Among the earliest centers of Chinese computing to focus on Chinese Character Cards was Tsinghua University, where researchers developed an early card capable of storing approximately 6,000 Chinese bitmap patterns in 32-by-32 dot matrix format. By the mid- and late-1980s, there were dozens of different “Hanka” on the market, manufactured and marketed by companies across Japan, China, Taiwan, Hong Kong, the United States and elsewhere.

By the mid- and late-1980s, the “Chinese-on-a-chip” approach became so important and common that practically all computers boasting Chinese or Japanese-language capabilities featured a character generator card of one sort or another.

Thus, from the 1950s with Caldwell’s Sinotype to the duo father-son Rosenblum team and GARF around Sinotype III in the 1980s, solving the memory problems associated with Chinese characters was the linchpin to opening the Chinese market to computing. Hacking computers with more memory, creating adaptive memory algorithms for prioritizing characters, and building dedicated hardware bridged the problem and initiated the computer revolution in China.

Yet, the next step was how to expand beyond the computer itself to everything that might connect to it. In part two of this series, coming up shortly on TechCrunch, our discussion will continue with a deep-dive into the challenges of designing and programming early computer monitors, printers, and other peripherals capable of handling Chinese text output. 

Voyager Innovations, the Manila-based owner of PayMaya, one of the Philippines’ most popular payment and financial services apps, announced today it has raised $167 million in new funding to launch more financial services, including a digital bank.

The raise includes $121 million in new funding, and $46 million from previously committed funds. Voyager announced in April 2020 that it had secured up to $120 million in investment commitments from PLDT, KKR, Tencent, the International Finance Group (IFC) and the IFC Emerging Asia Fund.

The latest capital came from existing shareholders PLDT, one of the country’s largest telecoms, KKR and Tencent, and new investors including IFC Financial Institutions Growth Fund, managed by IFC AMC, a member of the World bank Group (another one of Voyager’s investors).

Voyager’s total raised since 2018 now stands at $452 million.

Along with competitors GCash and Coins, PayMaya is one of the most popular financial “super apps” in the Philippines. Its services include a digital wallet, online remittances, bill payments, bank transfers, prepaid cards and an e-commerce feature called PayMaya Mall that connects consumers to 350 merchants.

In its funding announcement today, Voyager said it has applied for a digital bank license with Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank. A representative for the Voyager said the neobank will launch about six months after Voyager secures its license.

PayMaya has more than 250,000 digital-finance access touchpoints, like convenience stores, where users can top-up their accounts. Voyager says this is seven times the number of ATM and bank branches in the Philippines, making PayMaya more accessible than traditional banks, especially in remote or rural areas.

According to the BSP, about 71% of Filipinos were unbanked as of 2019. The BSP has set financial inclusion goals it wants to achieve by 2023, including onboarding 70% of Filipino adults to payment or transaction accounts, and converting 50% of total retail payments into digital form.

PayMaya and Smart Padala by PayMaya, its remittance service, claim its total registered users doubled over 18 months to 38 million as of June 2021. This year, Voyager also began expanding PayMaya’s services with working capital loans for micro- to mid-sized businesses through PayMaya Lending Corp, and PayMaya Protect insurance policies for health coverage and devices.

The pandemic has spurred interest in saving and investment apps around the world, especially ones geared toward newer investors. In Southeast Asia, startups in this space that have raised funding over the past few months include Ajaib, Bibit and Stashaway—and that’s just a (very) partial list. Now Infina, which calls itself the “Robinhood of Vietnam,” is announcing an oversubscribed $2 million seed round.

The seed funding, which was made in two closes, included participation from Saison Capital, Venturra Discovery, 1982 Ventures, 500 Startups, Nextrans, and angel investors like executives at Google and Netflix.

Infina launched its app in January 2021. Most of its users are between the ages of 25 to 40 and looking for alternatives to investing in long-term asset classes like real estate. The app requires a minimum contribution of about $25 USD and lets investors pick from assets including savings accounts, term deposits, fractionalized real estate and mutual funds, which founder and chief executive officer James Vuong told TechCrunch is currently the most popular asset class among Infina’s users. Infina works with financial partners like Dragon Capital, ACB Capital, Mirae Asset Fund Management and Viet Capital Asset Management.

The company notes that only about 3.2% of people in Vietnam have invested in stocks. But according to the Vietnams Securities Depository, about 500,000 trading accounts were opened during the first five months of 2021, a 20% increase from all of 2020. This, along with Vietnam’s high internet penetration rate (about 70% as of January 2020) and the fact that more than 3/4 of of internet users have used online financial services before, lays the groundwork for apps like Infina to take traction.

In statement about its investment, Saison Capital partner Chris Sirise said, “Retail investing in Vietnam is at an inflection point and we have seen multiple other emerging markets reach this break-out point. With an experienced team that is passionate about financial literacy and education, Infina is well-positioned to ride this wave of growth.”

Before founding Infina, Vuong was an engineer in Silicon Valley before returning to Vietnam to serve as vice president of investment and a Kauffman Fellow at IDG Ventures. He also founded a startup called Lana Group that was acquired by Line Group. Vuong told TechCrunch he believes Vietnam is entering a “‘golden decade’ of hyper uninterrupted growth as other Asian Tigers have had in the past,” and created Infina to gives retail investors a chance to partake in Vietnam’s financial trajectory.

While at home during various stages of lockdown in Vietnam, Vuong said many internet users began switching to digital services, including for investments. He added that a series of interest rate cuts by Vietnam’s Central Bank to help businesses during COVID-19 prompted many retail investors to look for alternatives with higher returns than term deposits.

“A majority of our users are new investors,” said Vuong. “Although they are familiar with savings, fixed income or mutual fund investing are relatively new to them.” The app’s interface and content is geared toward them.

When users register, Infina surveys their risk and return profile, then recommends an asset to begin with. As they continue investing, Infina’s users see information about the risk and return profile of each asset category and the issuer’s profile, investment strategy and historical performance. Like other investment apps with many newer investors, Infina also creates its own educational content, like blog posts, daily newsletters and videos.

“We are very transparent in communications on risk and returns, profits and fees, and that’s our advantage compared to other platforms,” said Vuong. He added that part of the new funding will be used to hire people with technical and investment backgrounds to further develop Infina’s KYC (know your customer) system to better analyze their risk appetite, as well as its system for evaluating each asset class.

Other investment apps in Vietnam include Finhay and Tikop. When asked how Infina differentiates from its competitors, Vuong noted its wide range of asset classes, low minimum and transparency about different types of investments. He added that Infina is not majority owned or tied to a particular issuer, “which allows us to be neutral and work with all of the country’s high-quality fund managers.”

The EU for all its lethargy, faults and fetishization of bureaucracy, is, ultimately, a good idea. It might be 64 years from the formation of the European Common Market, but it is 28 years since the EU’s formation in the Maastricht agreement, and this international entity is definitely still acting like an indecisive, millennial, happy to flit around tech startup policy. It’s long due time for this digital nomad to commit to one ‘location’ on how it treats startups.

If there’s one thing we can all agree on, this is a unique moment in time. The COVID-19 pandemic has accelerated the acceptance of technology globally, especially in Europe. Thankfully, tech companies and startups have proven to be more resilient than much of the established economy. As a result, the EU’s political leaders have started to look towards the innovation economy for a more sustainable future in Europe.

But this moment has not come soon enough.

The European tech scene is still lagging behind its US and Asia counterparts in numbers of startups created, talent in the tech sector, financing rounds, and IPOs / exits. It doesn’t help, of course, that the European market is so fractionalized, and will be for a long time to come.

But there is absolutely no excuse when it comes to the EU’s obligations to reform startup legislation, taxation, and the development of talent, to “level the playing field” against the US and Asian tech giants.

But, to put it bluntly: The EU can’t seem to get its shit together around startups.

Consider this litany of proposals.

Starting as far back a 2016 we had the Start-Up and Scale-Up Initiative. We even had the Scale-Up Manifesto in the same year. Then there was the Cluj Recommendations (2019), and the Not Optional campaign for options reform in 2020.

Let’s face it, the community of VC´s, founders, and startup associations in Europe has been saying mostly the same things for years, to national and European leaders. 

Finally, this year, we got something approaching a summation of all these efforts.

Portugal, which has the European Presidency for the first half of this year, took the bull by its horns and created something approaching a final draft of what the EU needs.

After, again, intense consultations with European ecosystem stakeholders, it identified eight best practices in order to level the playing field covering the gamut of issues such as fast startup creation, talent, stock options, innovation in regulation, access to finance. You name it, it covered it.

These were then put into the Startup Nations Standard, and presented to the European Council at Digital Day on March 19th, together with the European Commission’s DG CNECT and its Commissioner Tierry Breton. I even wrote about this at the time.

Would the EU finally get a grip, and sign up for these evidently workable proposals?

It seemed, at least, that we might be getting somewhere. Some 25 member states signed the declaration that day, and perhaps for the first time, the political consensus seemed to be forming around this policy.

Indeed, a body set up to shepherd the initiative (the European Startup Nations Alliance) was even announced by Portuguese Prime Minister António Costa which, he said, would be tasked with monitoring, developing, and optimizing the standards, collecting data from the member states on their success and failure, and reporting on its findings in a bi-annual conference aligned with the changing Presidency of the European Council.

It would seem we could pop open a chilled bottle of DOC Bairrada Espumante (Portuguese sparkling wine) and celebrate that Europe might finally start implementing at least the basics from these suggested policies.

But no. With the pandemic still ragging, it seemed the EU’s leaders still had plenty of time on their hands to ponder these subjects.

Thus it was that the Scaleup Europe initiative emerged from the mind of Emmanuel Macron, assembling a select group of 150+ of Europe’s leading tech founders, investors, researchers, corporate CEOs, and government officials to do some more pondering about startups. And then there was the Global Powerhouse Initiative of DG Research & Innovations Commissioner Mariya Gabriel.

Yes, ladies and gentlemen. We were about to go through this process all over again, with the EU acting as if it had the memory span of a giant goldfish.

Now, I’m not arguing that all these collective actions are a bad thing. But, by golly, European startups need more decisive action than this.

As things stand, instead of implementing the very reasonable Portuguese proposals, we will now have to wait for the EU’s wheels to slowly turn until the French presidency comes around next year.

That said, with any luck, a body to oversee the implementation of tech startup policy that is mandated by the European community, composed of organisation like La French Tech, Startup Portugal and Startup Estonia, might finally seem within reach.

But to anyone from the outside, it feels again as if the gnashing of EU policy teeth will have to go on yet longer. With the French calling for a ‘La French Tech for Europe’ and the Portuguese having already launched ESNA, the efforts seem far from coordinated.

In the final analysis, tech startup founders and investors could not care less where this new body comes from or which country launches it.

After years of contributions, years of consultations, the time for action is now.

It’s time for EU member states to agree, and move forward, helping other member states catch up based on established best practices.

It’s time for the long-awaited European Tech Giants to blossom, take on the US-born Big Tech Giants, and for Europe to finally punch its weight.

Stock in many American companies, like Amazon, Alphabet or Tesla, can host hundreds or thousands of dollars per share. Fractional trading, or buying part of a single share through a brokerage, makes them more accessible—at least to people within the United States. Investors in other countries, however, often have to pay high fees through interactive brokers. Gotrade makes fractional trading of U.S. stocks available to people in 150 countries, and charges a minimum of just one dollar.

The Singapore-based startup announced it has raised $7 million in seed funding led by LocalGlobe, with participation from Social Leverage, Y Combinator, Picus Capital and Raptor Group. The round also included angel investors like Matt Robinson, co-founder of GoCardless; Carlos Gonzalez-Cadenas, former chief product officer of Skyscanner; Frank Strauss, former head of Deutsche Bank’s global digital business; and Joel Yarbrough, Asia-Pacific head at Rapyd.

GoTrade was founded in 2019 by David Grant, Norman Wanto and Rohit Mulani. Its app launched three months ago and is currently invite-only. Gotrade claims sign-ups have grown 20% week-on-week, and it now has more than 100,000 users spread across the world. About 65% of Gotrade’s users have traded stocks before, while the rest are first-time investors.

Mulani, the company’s chief executive officer, told TechCrunch that the idea for Gotrade was planted when he became interested in American stocks, but discovered many barriers to trading.

“When I was 18, I actually looked to get access in Singapore, and banks were charging $30 per trade. Effectively, the market taught me that I could not get into the market. Fast forward ten years, I decided to look into it again, and the banks were still charging $25 a trade,” he said. “On top of that, their user interfaces were something I didn’t want to look at. So we decided to build a brokerage platform where anyone can get access.”

“Fractional trading actually came a bit later,” he added. “That was the real MVP for us because fractional really makes investing accessible to anyone globally since all you need is one dollar.”

Robinhood, SoFi and Stash all feature fractional trading, but Mulani said those apps are primarily used by U.S. residents. On the other hand, Gotrade is not available to U.S. residents because of financial regulations, so its main competitors are interactive brokers, Saxo Bank and eToro.

Gotrade does not charge commission, custody, inactivity or dividend fees. Instead, it monetizes by collecting a small fee on the currency exchange from deposits, and interest generated from uninvested cash in brokerage accounts. The app is free to use, but plans to add a premium paid subscription program and virtual debit card that users can link to their accounts.

Many of Gotrade’s users are people who have invested in their local stock markets, but weren’t able to trade U.S. stocks before. They vary widely in age, but 25 to 34-year-olds are the app’s biggest segment, and the average account size is about $500.

Gotrade acts as an introducing broker to Alpaca Securities LLC, a U.S. stock brokerage that is regulated by the Financial Industry Regulatory Authority (FINRA) and serves as an intermediary. Alpaca Securities splits its stock inventory into fractions, and Gotrade users can decide how many fractions they want to buy. The app also allows them to set a budget, and automatically calculates the amount of fractional shares they can afford through notional value trading.

User accounts are protected up to $500,000 by the Securities Investor Protection Corporation (SIPC), and money goes through counterparties regulated in Singapore, like Rapyd, and the United States, including Alpaca and First Republic Bank. To protect users, Gotrade works only with fully-funded cash accounts without any margin facility. Mulani explained that a margin account effectively means people are borrowing money to invest, while a fully-funded account means that a user can only invest the money they have already deposited in their account. FINRA and Securities Exchange Commission regulations also mean accounts under $25,000 can only day trade, or buy and sell a security on the same day, up to three times every five trading days.

Like many investment apps aimed at first-time or relatively new traders, Gotrade includes educational content, like pop-ups with definitions for investment terms, and news articles about publicly-traded companies. Its new funding will be used for hiring and product development, with a strong focus on adding more in-app content.

In a statement, LocalGlobe partner Remus Brett said, “Over the past 100 years, U.S. stocks have delivered average annual returns of 10%. With compounding, an investment of $1,000 back then would be worth $13 million today. These returns have fueled wealth creation in the U.S. and other developed markets but most of the world has missed out. We believe Gotrade has the potential to help the world’s 99% gain access the same benefits that the 1% have. We are incredibly excited to be joining Rohit, David and Norman on this journey.”

Viva Republica, the Seoul-based fintech company behind Toss, a super app with more than 40 financial services, announced today it has raised $410 million at a post-money valuation of $7.4 billion. The new funding was led by Alkeon Capital, an American investment firm, and included participation from new investors like Korea Development Bank, and returning backers Altos Ventures and Greyhound Capital.

The company plans to launch Toss Bank, a neobank, in September 2021, which it describes as “the final key component” of its super app strategy. It will also use the funding to continue its expansion in overseas markets, including Vietnam, where Toss launched last year.

Viva Republica, which hit unicorn status in 2018, has now raised more than $940 million in equity funding.

Founder and chief executive officer SG Lee told TechCrunch that Toss Bank will focus on lending, and also offer savings accounts with competitive interest rates.

“A lot of challenger banks and neobanks are focusing on the banking experience, such as cards, so their main revenue source is interchange fees,” he said. “Toss is quite different because we already cover all that. We cover P2P payment, money transfer, cards and all sorts of services. So we are focusing on loans, unsecured loans, mortgages, all sorts of loans. We are going to use this vehicle to give the most competitive interest rates to users, and Toss Bank will not have a separate app, since we have super app strategy.”

Toss founder SG Lee

Toss founder SG Lee

One of the reasons Toss Bank is focusing on loans is because if someone has a middling credit score, many South Korean banks will only offer them loans at subprime interest rates, Lee said. Toss Bank will be able to offer better rates because its risk-scoring model leverages data from its millions of users.

Toss now claims a total of 20 million users (or more than a third of South Korea’s 51.7 population) and of that amount, 11 million are monthly active users.

The app launched as a Venmo-like peer-to-peer money transfer platform in 2015, before adding more services. Now its users can turn to the app for almost all of their financial needs.

For example, they can check their balances at different banks and credit cards on a dashboard. Merchants can use Toss Payments to send and receive online payments and manage their business finances. Other features include budgeting tools, bill payments, a credit score tracker and insurance plans. Lee said more than 20% of bank accounts and credit cards in South Korea are already registered on Toss.

As a financial super app, Toss Bank will be able to supplement information from South Korea’s main credit rating agencies with its own data about user transactions: for example, where do they spend money, how often do they spend, their cash flow and balances.

Lee added that one of South Korea’s leading credit bureaus, KCB (Korea Credit Bureau), backtested Toss’ engine with data from over two million users, and it turned out to be 150% better in terms of differential power analysis and 30% lower in delinquency rates. “This is the first engine that counts this asset-related data, and no machine-learning technologies have been used in credit evaluation” in South Korea, he said. “I think Toss Bank is really well-positioned to disrupt the whole loan market.”

In March, Toss also launched an investment service called Toss Securities, designed to make stock trading accessible to new investors who shy away from traditional brokerages. Over the past three months, it has signed up more than 3.5 million users.

Viva Republica launched Toss in Vietnam, its first international market, in 2020, and the app now has services like no-fee money transfers, debit cards and a financial dashboard through a partnership with CIMB bank. Toss currently claims more than three million monthly active users in Vietnam and says it adds more than 500,000 active users every month. Toss is planning to enter other Southeast Asian markets, too.

Toss hasn’t finalized a timeline, but it is targeting Malaysia for its next market by the end of this year. “The product that we built for Vietnam is actually quite scalable across all Southeast Asia markets, so it’s a matter of time,” Lee said. “But we want to focus on the Vietnam market because it’s scaling increasingly fast and we have to cover the growth.”

As for the possibility of holding an initial public offering or finding another exit opportunity, Lee said the company is still finalizing its plans. “As an Asian company, reaching a $7.4 billion valuation is pretty high, and I think at some point we will face not being able to do more fundraising in the private market. So we’re targeting to raise once more by the end of this year or early next year for over $300 million. That will be our last private fundraising, and then we’re thinking a timeline of three years, and we are reviewing not only for a Korean listing but also a U.S. listing.”