Steve Thomas - IT Consultant

Following the recent news about the Badoo and Bumble and Badoo exit there is more consolidation in the dating app space. It seems many dating apps are running for the exits ahead of the launch of dating on Facebook.

The Dating.com Group – an investment of SDVentures – has acquired Dil Mil, a San Francisco-based dating app for expats from India and other South Asian countries. The acquisition was via a combination of cash and Dating.com Group stock. According to Dating.com, the deal values the company at up to $50 million. 

CEO and founder KJ Dhaliwal will continue to manage the company and will join Dating.com Group’s M&A and Strategy committees, as well as the Dating.com Group Advisory Board.

Dil Mil has effectively become the ‘Tinder for South Asians’, has over 1 million users in the US, UK, & Canada, and has spread its influence both via the app, as well as events, music, and art. It’s run campaigns with Bollywood superstars like Shilpa Shetty, “Love is” with leading South Asian influencers, and events like the Sessions Music Festival in New York City.

The portfolio of Dating.com Group already includes numerous brands including Dating.com, DateMyAge, LovingA, Tubit, AnastasiaDate, ChinaLove and others.

Dhaliwal said in a statement: “When we started Dil Mil, our vision was to empower the world to find love. I’m glad Dil Mil can continue to realize this vision with the support of Dating.com Group. As the dating app market becomes more competitive with companies like Facebook entering, we wanted to partner with a strong strategic player in this space.”

The idea for Dil Mil came to him after he realized his friends and family were having a hard time finding partners. He saw an opportunity to build a modern, reliable, safe platform specifically for South Asians to connect with each other. Existing methods like arranged marriages were outdated, while services offered by other apps were just not culturally appropriate.
 
Maria Sullivan (Vice President of Dating.com Group & Board Director at Dil Mil) commented: “Dating.com Group sees great potential in Indian and other South Asian markets. Dil Mil’s small yet talented team managed to build the leading company in its niche. The team will continue to manage the company while Dating.com Group will provide additional resources to help Dil Mil grow further. Dating.com Group plans to continue to acquire successful companies in the social discovery space.”

On average, Indians have the highest family income and postgraduate education ratio among foreign-born populations in America. The Indian diaspora is the largest in the world (30 million people). Continued growth is also expected since India is on pace to have the world’s largest population, surpassing China around 2027.

In less than two weeks, two major reports have been published that contain leaked Chinese government documents about the persecution of Uighurs and other Muslim minorities in China. Details include the extent to which technology enables mass surveillance, making it possible to track the daily lives of people at unprecedented scale.

The first was a New York Times article that examined more than 400 pages of leaked documents detailing how government leaders, including President Xi Jinping, developed and enforced policies against Uighurs. The latest comes from the International Consortium of Investigative Journalists, an independent non-profit, and reports on more than 24 pages of documents that show how the government is using new technologies to engage in mass surveillance and identify groups for arrest and detainment in Xinjiang region camps that may now hold as many as a million Uighurs, Kazakhs and other minorities, including people who hold foreign citizenship.

These reports are significant because leaks of this magnitude from within the Communist Party of China are rare and they validate reports from former prisoners and the work of researchers and journalists who have been monitoring the persecution of the Uighurs, an ethnic group with more than 10 million people in China.

As ICIJ reporter Bethany Allen-Ebrahimian writes, the classifed documents, verified by independent experts and linguists, “demonstrates the power of technology to help drive industrial-scale human rights abuses.” Furthermore, they also force members of targeted groups in Xinjiang region to live in “a perpetual state of terror.”

The documents obtained by the ICIJ detail how the Integrated Joint Operations Platform (IJOP), an AI-based policing platform, is used by the police and other authorities to collect personal data, along with data from facial-recognition cameras and other surveillance tools, which is then fed into an algorithm to identify entire categories of Xinjiang residents for detention. The Human Rights Watch began reporting on the IJOP’s police app in early 2018 and the ICIJ report shows how powerful the platform has become.

The Human Rights Watch reverse-engineered the IJOP app used by police and found that it prompts them to enter a wide range of personal information about people they interrogate, including height, blood type, license plate numbers, education level, profession, recent travel and even household electric-meter readings, data which is then used by an algorithm that determines which groups of people should be viewed as “suspect.”

The documents also say that the Chinese government ordered security officials in Xinjiang to monitor users of Zapya, which has about 1.8 million users, for ties to terrorist organizations. Launched in 2012, the app was created by DewMobile, a Beijing-based startup that has received funding from InnoSpring Silicon Valley, Silicon Valley Bank and Tsinghua University and is meant to give people a way to download the Quran and send messages and files to other users without being connected to the Web.

According to the ICIJ, the documents show that since at least July 2016, Chinese authorities have been monitoring the app on some Uighurs’ phone in order to flag users for investigation. DewMobile did not respond to ICIJ’s repeated requests for comments. Uighurs who hold foreign citizenship or live abroad are not free from surveillance, with directives in the leaked documents ordering them to be monitored as well.

Allen-Ebrahimian describes the “grinding psychological effects of living under such a system,” which Samantha Hoffman, an analyst at the Australian Strategic Policy Institute, says is deliberate: “That’s how state terror works. Part of the fear that this instills is that you don’t know when you’re not OK.”

The reports by the New York Times and the ICIJ are important because they counter the Xi administration’s insistence that the detention camps are “vocational educational and training centers” meant to prevent extremist violence and help minority groups integrate into mainstream Chinese society, even though many experts now describe the persecution and imprisonment of Uighurs as cultural genocide. Former inmates have also reported torture, beatings and sexual violence including rape and forced abortions.

But the Chinese government continues to push its narrative, even as evidence against it grows. The Chinese embassy in the United Kingdom told the Guardian, an ICIJ partner organization, that the leaked documents “pure fabrication and fake news” and insisted that “the preventative measures have nothing to do with the eradication of religious groups.” (The Guardian published the embassy’s response here.)

In October, the United States placed eight companies, including SenseTime and Megvii, on a trade blacklist for the role the Commerce Department says their technology has played in China’s campaign against Uighurs, Kazakhs and other Muslim minority groups. But the  documents published by the New York Times and ICIJ show how deeply entrenched the Chinese government’s surveillance technology has become in the daily life of Xinjiang residents and underscores how imperative it is for the world to pay attention to the atrocities being carried out against minority groups there.

E-commerce now accounts for 14% of all retail sales, and its growth has led to a rise in the fortunes of startups that build tools to enable businesses to sell online. In the latest development, a company called VTEX — which originally got its start in Latin America helping companies like Walmart expand their business to new markets with an end-to-end e-commerce service covering things like order and inventory management; front-end customer experience and customer service — has raised $140 million in funding, money that it will be using to continue taking its business deeper into more international markets.

The investment is being led by SoftBank, specifically via its Latin American fund, with participation also from Gávea Investimentos and Constellation Asset Management. Previous investors include Riverwood and Naspers, and Riverwood continues to be a backer, too, the company said.

Mariano Gomide, the CEO who co-founded VTEX with Geraldo Thomaz, said the valuation is not being disclosed, but he confirmed that the founders and founding team continue to hold more than 50% of the company. In addition to Walmart, VTEX customers include Levi’s, Sony, L’Oréal and Motorola . Annually, it processes some $2.4 billion in gross merchandise value across some 2,500 stores, growing 43% per year in the last five years.

VTEX is in that category of tech businesses that has been around for some time — it was founded in 1999 — but has largely been able to operate and grow off its own balance sheet. Before now, it had raised less than $13 million, according to PitchBook data.

This is one of the big rounds to come out of the relatively new SoftBank Innovation Fund, an effort dedicated to investing in tech companies focused on Latin America. The fund was announced earlier this year at $2 billion and has since expanded to $5 billion. Other Latin American companies that SoftBank has backed include online delivery business Rappi, lending platform Creditas, and proptech startup QuintoAndar.

The common theme among many SoftBank investments is a focus on e-commerce in its many forms (whether that’s transactions for loans or to get a pizza delivered) and VTEX is positioned as a platform player that enables a lot of that to happen in the wider marketplace, providing not just the tools to build a front end, but to manage the inventory, ordering and customer relations at the back end.

“VTEX has three attributes that we believe will fuel the company’s success: a strong team culture, a best-in-class product and entrepreneurs with profitability mindset,” said Paulo Passoni, managing investment partner at SoftBank’s Latin America fund, in a statement. “Brands and retailers want reliability and the ability to test their own innovations. VTEX offers both, filling a gap in the market. With VTEX, companies get access to a proven, cloud-native platform with the flexibility to test add-ons in the same data layer.”

Although VTEX has been expanding into markets like the US (where it acquired UniteU earlier this year), the company still makes some 80% of its revenues annually in Latin America, Gomide said in an interview.

There, it has been a key partner to retailers and brands interested in expanding into the region, providing integrations to localise storefronts, a platform to help brands manage customer and marketplace relations, and analytics, competing against the likes of SAP, Oracle, Adobe, and Salesforce (but not, he said in answer to my question, Commercetools, which builds Shopify -style API tools for mid- and large-sized enterprises and itself raised $145 million last month).

E-commerce, as we’ve pointed out before, is a business of economies of scale. Case in point, while VTEX processes some $2.5 billion in transactions annually, it makes a relative small return on that: $69 million, to be exact. This, plus the benefit of analytics on a wider set of big data (another economy of scale play), are two of the big reasons why VTEX is now doubling down on growth in newer markets like Europe and North America. The company now has 122 integrations with localised payment methods.

“At the end of the day, e-commerce software is a combination of knowledge. If you don’t have access to thousands of global cases you can’t imbue the software with knowledge,” Gomide said. “Companies that have been focused on one specific region and now realising that trade is a global thing. China has proven that, so a lot of companies are now coming to us because their existing providers of e-commerce tools can’t ‘do international.'” There are very few companies that can serve that global approach and that is why we are betting on being a global commerce platform, not just one focused on Latin America.”

The future of the connected home, connected car, and connected everything will have a lot of imaging technology at the center of it: sensors to track the movement of people and things will be a critical way for AI brains to figure out what to do next. Now, with a large swing towards more data protection — in part a reaction to the realization of just how much information about us is being picked up — we’re starting to see some interesting solutions emerge that can still provide that imaging piece, but with privacy in mind. Today one of the startups building such solutions is announcing a big round of funding.

Vayyar, an Israeli startup that builds radar-imaging chips and sensors as well as the software that reads and interprets the resulting images which is used in automotive and IoT applications (among others) — providing accurate information about what is going on a specific place, even if it’s behind a wall or another object, but without the kind of granular detail that would actually be able to personally identify someone — has picked up $109 million, money that it will use to expand the range of applications that it can cover and to double down on key markets like the US and China.

From what I understand from sources close to the deal, this round is being done at a valuation “north” of $600 million, which is a big step up on the company’s valuation in its C-round in 2017, which was at around $245 million post-money, according to PitchBook data.

Part of the reason for the big multiple is because the company already has a number of big customers on its books, including the giant automotive supplier Valeo and what Raviv Melamed — Vayyar’s co-founder, CEO and chairman — described to me as a “major Silicon Valley company” working on using Vayyar’s technology in its smart home business.

I was going to write that the funding is notable for the large size, but it feels these days that $100 million is the new $50 million (which is to say, it’s becoming a lot more common to raise so much). What’s perhaps more notable is the source of the funding. The Series D is being led by Koch Disruptive Technologies, with Regal Four and existing investors including Battery Ventures, Bessemer Ventures, ICV, ITI, WRVI Capital, Claltech all also participating. The total raised by the startup now stands at $188 million.

Koch Disruptive Technologies is the venture arm of Koch Industries, the multinational giant that works across a range of oil and gas, manufacturing, ranching and other industries. It’s founded by the Koch brothers, Charles and the late David, who are mostly known in popular culture for their strong support of right-wing politicians, businesses and causes. It’s an image that hasn’t really helped the VC arm and its partners seem to be trying to downplay it these days.

Putting that to one side, the Vayyar investment has a lot of potential applicability across the many industries where Koch has holdings.

“Advancements in imaging sensors are vital as technology continues to disrupt all aspects of society,” said Chase Koch, president of Koch Disruptive Technologies. “We see incredible potential in combining Vayyar’s innovative technology and principled leadership team with Koch’s global reach and capabilities to create breakthroughs in a wide range of industries.”

Over the last several years, the startup has indeed been working on a number of ways of applying its technology on behalf of clients, who in turn develop ways of productising it. There are a few exceptions where Vayyar itself has built ways of using its tech in direct consumer products: for example, the Walabot, a hand-held sensor that works in conjunction with a normal smartphone to give people the ability to, say, detect if a pipe is leaking behind a wall.

But for the most part, Melamed says that its focus has been on building technology for others to use. These have, for example, included in-car imaging sensors that can detect who is sitting where and what is going on inside the vehicle, useful for example for making sure that no one is dangerously blocking an airbag, or accidentally setting off a seatbelt alarm when not actually in a seat, or (in the case of a sleeping baby) being left behind on accident creating potentially dire outcomes.

Regulations will make having better safety detection a must over time, Melamed noted, and more immediately, “By 2022-2023 it will be a must for all new cars to be able to detect [the presence of babies getting left behind when you leave the car] if you want to have a five-star safety rating.”

The focus (no pun intended) on privacy is a somewhat secondary side-effect of what Vayyar has built to date, but that same swing of regulation is likely to continue to put it into the fore, and make it as much of a feature as the imaging detection itself.

Vayyar is not the only company using radar to build up better imaging intelligence: Entropix, Photonic Vision, Noitom Technology and Aquifi and ADI are among the many companies also building imaging solutions based on the same kind of technology. Melamed says that this is where the company’s software and algorithms help it to stand out.

“I think when you look at what we have developed for example for cars, these guys are far behind and it will take some time to close the gap,” he added.

 

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support, and the money that flows through it all. What are the developers talking about? What Do app publishers and marketers need to know? How is international politics playing out in the App Store? What apps is everyone using?

As November kicks off, we’re looking at a number of big apps launches from Microsoft and Adobe — as well as what went wrong. We’re also looking at the iOS bug-squashing release, a bunch of data about app install trends around the world, Google Play’s new loyalty program and what it means for developers, the continued scrutiny of Chinese apps by the U.S. government, and more.

Fast Facts

eMarketer remindS us that it recently put out a big report on app installs with a ton of insights. It’s actually been live for a few months, but ICYMI, here are some of the key data points and highlights:

  • The average iPhone user in the U.S. downloaded 47 apps in 2018, up from 44 in 2017.
  • The average number of apps installed is rising — up 15% from 2016. In the U.S., Japan, South Korea, and Australia, users had more than 100 apps downloaded in 2018.
  • Smartphone users spend the most time using their top 5 apps. In 2017, the top 5 accounted for 87% of usage. Now (Apr. 2019) it’s 83%. The No. 1 app had a 49% share of the time spent, now it’s 44%.
  • The number of smartphone users in the U.S. will grow just 3% in 2019, compared with 13.2% in India and 12.1% in Indonesia.
  • Related, app downloads grew 165% in India from 2016 to 2018. In China, 70%. In Indonesia, 55%. And in Brazil, 25%. The U.S. app downloads grew just 5%.
  • In June 2019, the App Store had 1.8 million apps compared with Google Play’s 3.1 million.
  • 43% of iOS app install referrals came from Facebook properties, and only 6.6% came from Google properties.
  • Apple Search Ads drove 12% of non-organic installs in May 2019.
  • In-app video ads outperform display ads. Install-to-register rates for video were 35.1% in Q1
    2019 on the Liftoff network, compared with 28.5% for display ads.
  • App engagement drop-off rates after day one are the biggest in shopping apps. (25% engagement after the first day, but 8% at 30 days). Travel also sees a big drop-off. (20% after the first day and 6% after 30 days).

Headlines

iOS Bug Squashing: Apple fixed the iOS bug that killed your background apps. Apple this week finally squashed a very annoying bug in iOS 13 that made the OS overly aggressive about killing background apps and tasks. Apps like Safari, YouTube, Overcast and others were impacted, leading users to lose emails or the video they were watching just when they switched away for a few seconds. What Apple can’t fix is a growing concern that Apple has “lost the plot” following a series of extremely buggy software updates across its product line, which made users hesitant to upgrade to macOS Catalina, and bricked people’s HomePods.

Google admits it can’t secure the Play Store on its own: Google this week announced partnerships with security firms ESET, Lookout, and Zimperium to form what it has branded the “App Defense Alliance.” The goal, the company says, is to unite the security industry to fight malicious apps across Android’s ecosystem of 2.5 billion devices. Basically, Google will integrate its own detection systems with each partner’s scanning engine to help it uncover potential risks and threats. However, the fact that Google is now essentially outsourcing security to a partner ecosystem is an admission of failure, to some extent, about its abilities to keep the Play Store free from bad actors on its own. (But of course, we all knew that already, right?)

Photoshop for iPad is tanking: Adobe released its most important mobile app ever with this week’s launch of Photoshop for iPad. But fans panned the app because it’s missing several key features. Like RAW support! The app now has 2 stars out of 5…yikes. So what went wrong?

To read more, subscribe to Extra Crunch.

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

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

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

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

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

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

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

The husband and wife co-founders behind the direct-to-consumer cookware and dinnerware startup retailer OurPlace are big believers in the notion that the doorway to inclusive communities opens through the kitchen. 

Amir Tehrani, the company’s co-founder and chief executive spent, his life in the cookware and kitchen business, while his wife, Shiza Tehrani, is the co-founder of the Malala Fund, supporting educational initiatives for young women around the world, and Now Ventures, an impact seed investment fund based in Los Angeles.

The Los Angeles-based company is taking Shiza’s belief in social missions and the power of entrepreneurialism to transform communities, and Amir’s knowledge of the multibillion-dollar cookware and dinnerware business, to create a consumer-focused business that celebrates the culture surrounding cooking and uses it as a way to educate and inform — all while selling high-end pots, pans, plates and glasses to an audience of socially conscious consumers.

The project has received its initial capital from some pretty high-end backers. So far, the company has raised $2.35 million in financing from investors, including the venture arm of Los Angeles’ startup retail giant, FabFitFun and Will Smith’s Dreamers VC.

Two of the new products available from startup direct to consumer cookware and dinnerware brand OurPlace

The company’s initial line of dinnerware and cookware is manufactured in China and its glassware is manufactured in Thailand.

But the two executives have plans to source its future collections from artisans living in emerging markets around the world. “Our next collection is sourced from Oaxaca,” says Tehrani. “The Oaxaca line… it’s artisans making things out of their home. They’re making everything by hand and there’s no sophisticated machinery to speak of.”

The challenge, says Amir Tehrani, is to help these artisans begin producing products at scale, while staying true to the artisanal nature of the products.

Ultimately, the idea is to educate and inform consumers about the cultural context behind the products they buy, according to the company’s two founders.

There’s also a financial incentive to launch a direct-to-consumer brand, the founders say. It’s an industry that has yet to be disrupted by the technological innovations that have reshaped so many other retail markets, they say… and one that’s equally as large as the mattress industry.

By 2021, the cookware and dinnerware market is projected to be $12.7 billion, according to a study by Freedonia Focus Reports. By comparison, mattresses are about a $14 billion market in the U.S.

And it’s a market that Amir Tehrani knows well. His grandfather founded TableTops Unlimited, one of the largest white-label suppliers of kitchenware, cookware and dinnerware in the U.S. That experience is what brought investors like FabFitFun to the table.

“They understand our capabilities around the family business and they want to help bring it to their community as well,” says Amir Tehrani. “Aside from what they were already doing around fashion and cosmetics the largest opportunity they weren’t already doing was around cookware.”

ByteDance has responded to a report in the Financial Times that said the Chinese Internet startup plans to go public in Hong Kong as early as the first quarter of next year. “There is absolutely zero truth to the rumors that we plan to list in Hong Kong in Q1,” said a spokesperson for the company, the owner of TikTok.

The Financial Times reported that ByteDance, which was founded in 2012 and is backed by investors including SoftBank, is preparing for a public listing by retaining law firm K&L Gates and hiring a chief legal officer and former U.S. officials to help address concerns by U.S. lawmakers that TikTok can pose “national security risks,” such as being compelled to turn over data from American users to Chinese authorities.

Speculation that ByteDance is gearing up for an IPO started last year when it closed a $3 billion funding round that put its valuation between $75 billion to $78 billion, making it the world’s most valuable startup.

ByteDance’s apps also include Douyin, the Chinese version of TikTok, news app Toutiao and TopBuzz, a news aggregation app for the U.S. market that the Financial Times reports it is planning to sell as it prepares for an IPO.

In September, Reuters reported that ByteDance had made between $7 billion and $8.4 billion in revenue for the first half of the year and had posted a profit in June.

Veronica Chou’s family has made its fortune at the forefront of the fast fashion business through investments in companies like Michael Kors and Tommy Hilfiger . But now, the heiress to an estimated $2.1 billion fortune is launching her own company, Everybody & Everyone, to prove that the fashion industry can be both environmentally sustainable and profitable.

There’s no argument about the negative impacts of the fashion industry on the environment.

The textiles industry primarily uses non-renewable resources — on the order of 98 million tons per year. That includes the oil to make synthetic fibers, fertilizers to grow cotton, and toxic chemicals to dye, treat, and produce the textiles used to make clothes. The greenhouse gas footprint from textiles production was roughly 1.2 billion tons of CO2 equivalent in 2015 — more than all international flights and maritime shipments combined (and a lot of those maritime shipments and international flights were hauling clothes).

The litany of catastrophes that can be attributed to the clothing industry extends to pollution as well. About 20% of industrial water pollution globally can be traced to the dyeing and treatment of textiles — and microplastics from polyester, acrylic and nylon are polluting the world’s oceans.

Meanwhile, the rise of fast fashion has encouraged consumers to accelerate waste. Roughly one garbage truck full of clothes is landfilled around the world every second, according to a 2017 report from the Ellen MacArthur Foundation. That means consumers are throwing away around $400 billion worth of valuable goods every year as low prices and more “seasons” create an illusion of disposability.

Screen Shot 2019 10 27 at 10.21.17 PM

Image courtesy of World Resources Institute

As the fashion business has expanded so has the wealth of the Chou family. South Ocean Knitters, the knitwear manufacturer started by Chou’s grandfather was responsible for one of the first foreign investments into mainland China in 1974. It is now one of the largest suppliers of knitwear in the world and together with the Hong Kong manufacturer Li & Fung, is behind the Cobalt Fashion Holding, conglomerate.

And her father, Silas Chou, made millions as an investor in Michael Kors and Tommy Hilfiger. As an executive at Iconix Brand Group China, Veronica Chou played a role in the acceleration of the industry — bringing American brands to Chinese consumers. Chou also served as the cofounder of the Beijing-based private equity fund China Consumer Capital and a director of Karl Lagerfeld Greater China.

For Chou, an understanding of the environmental toll that the family business was taking on the planet began six years ago — a few years before Iconix Brand Group acquired the China subsidiary she had co-founded with her father in a transaction reportedly worth $56 million.

It was around the time that Chou had her children, she says, that she realized the importance of making a brand that was both environmentally sustainable and inclusive.

“It was six years ago I started learning about sustainability and five years ago that I said that I needed to have a sustainable brand,” says Chou. 

Since that revelation Chou dove into the world of sustainable manufacturing head-first. Through her family’s investment vehicles she has worked with companies like Modern Meadow, which uses bio-engineering to make leather goods in a lab. Chou has also led investments in Thousand Fell, a soon-to-launch manufacturer of fully recyclable shoes; Dirty Labs, which is developing more sustainable laundry cleaning products; and Carbon Engineering, which is developing a direct air capture technology for carbon dioxide.

Everybody & Everyone applies the lessons that Chou has learned about sustainability to a new fashion brand that she hopes can serve as a model for how to weave sustainability into every facet of the industry.

The new brand, which sells women’s clothes for every size from 00 to 24 and at prices ranging from $18 to $288 (most fall in the $50 to $150 range, given a quick scroll through the company’s new website) partners with companies like Naadam and Ecoalf for sustainable cashmere and recycled fabrics made from plastic.

“For our brand, recycled is a big story for us,” says Chou. “Our t-shirts, our socks, our packaging, our mailers, our labels, our stickers are all made from recycled materials that can be recycled again.”

The company’s attention to its environmental impact also extends to its supply chain. “Most of our fabrics are knit close to where our garments are manufactured. That is definitely reducing our carbon footprint,” says Chou. “I put an emphasis on having factories in America… our denim is manufactured in America and in the future we’re looking at t-shirts and athletics to be manufactured in America.”

Some clothes are also made with fabrics that have recycled silver in them — so that the clothes can be worn multiple times without smelling or the need for a wash. 

Digital printing is used in place of screens to prevent tons of water waste, the company said, and several of the company’s fabrics are not dyed at all. instead, the company relies on an upcycling process by separating recycled fibers mechanically by color.

Everybody & Everyone has also partnered with the organization One Tree Planted to plant a tree for each purchase that’s made with the company. In addition, the company has calculated its carbon footprint from all of its pre-launch activities and has bought and retired offsets to balance its emissions, Chou says.

“I started building Everybody & Everyone from the ground-up, first by getting the best team in place then by finding the right vendors, manufacturers and partners who were already making strides in the sustainability space,” Chou said in a statement. “I wanted this brand to be for every woman, so body positivity, inclusivity and sustainability were going to be the backbone of everything we did. We then constructed the brands sustainable & technical pillars, which consist of activation, recycled, dyeing & printing, naturals done better, bio-based fibers and end use to ensure our products would minimize negative impacts. We are sustainable down to the labels sewn into each garment.”

It has been a tough week for China-U.S. relations. Vice President Mike Pence ratcheted up the administration’s rhetoric yesterday, calling the NBA “a wholly owned subsidiary of the authoritarian regime” in China while the league’s commissioner Adam Silver continued to try to tamp down the intensity of criticism over the league’s business, saying in an interview with the Wall Street Journal that “We have no choice but to engage and to attempt to have better understanding of other cultures and try to work through issues.”

The NBA was hardly the only challenge between the U.S. and China. This week saw the intensification of two threads of national security concerns continue to get airtime on Capitol Hill that could have massive ramifications for startups.

The first and potentially most potent thread is swirling around TikTok, the epically popular social video app that also happens to be owned and operated by China-based ByteDance. This week, senate majority leader Chuck Schumer and senator Tom Cotton of Arkansas circulated a bipartisan letter requesting an assessment of TikTok’s national security risks.

ByteDance remains the world’s highest-valued unicorn (which, perhaps in the wake of WeWork’s collapse the past two weeks, is not an epithet that any startup wants to actually hold these days). It has received major funding from the likes of Sequoia Capital China, and is currently valued at $75 billion.

Sequoia is clearly preparing for the worst around these national security reviews. Last week, the firm confirmed to The American Lawyer that Donald Vieira, a partner at top law firm Skadden, would be joining the venture firm as chief legal officer. Vieira has spent the last few years working on cases surrounding CFIUS, the Committee on Foreign Investment in the United States (WTF is CFIUS?), and earlier, was chief of staff of none other than the Department of Justice’s national security division.

That expertise will be critical as Sequoia potentially faces a tough reception for ByteDance in the national security circuit on Capitol Hill. Earlier this year, CFIUS required video game publisher Beijing Kunlun to retroactively divest itself of its purchase of gay-dating app Grindr over concerns that the app’s user data could provide Chinese intelligence and law enforcement officials with compromising material that would allow for individual blackmail.

While Grindr’s text messages may be far more compromising than the average TikTok viral video, the app’s small user base is dwarfed by TikTok, which has seen more than 100 million downloads in the U.S. alone. That potentially wide surveillance net is of acute concern for U.S. intelligence officials.

On top of that, of course, is the media’s heightened discussion the past few weeks that ByteDance could carefully calibrate the virality of videos on TikTok to hew toward Beijing’s censorship dictates. That has led to some teens posting various memes about the Hong Kong protests to see how far they can push the platform’s red lines (as teens are wont to do).

Strategically, the China angle has become very useful for Facebook, who faces a viable threat in TikTok’s popularity according to my colleague Josh Constine. Mark Zuckerberg has made China’s potential censorship within TikTok a major speaking point, which he emphasized in a major policy speech at Georgetown:

While our services, like WhatsApp, are used by protesters and activists everywhere due to strong encryption and privacy protections, on TikTok, the Chinese app growing quickly around the world, mentions of these protests are censored, even in the US.

Is that the internet we want?

Facebook’s strategic messaging starts to lead us to the other national security thread happing these days in DC. There have been wide concerns over the past few months on Capitol Hill over bids for subway, rail, bus, and other transit contracts from Chinese companies like state-owned CRRC and electric bus and battery manufacturer BYD . There have been motions to ban federal transit funding for projects that use vehicles from Chinese-subsidized sources.

A new report published this morning by Radarlock, a data-driven research organization, argues that Beijing is using access to these contracts to enhance its ‘civil-military fusion,’ by which China means learning how to manufacture and build leading global supply chains that help it in both private sector competitiveness and in military superiority. As the research leads Emily de La Bruyère and Nathan Picarsic write:

Through both data collection and technology, CRRC contributes to Beijing’s military and military-civil fusion [“MCF”] projects: Explicitly declaring, in its company documents, a role in the military-civil fusion strategy, CRRC has set up an investment fund dedicated to MCF; operates in MCF industry zones; shares technology, resources, and data with military-and MCF-affiliates; and assigns the MCF label to high-profile projects and centers.

Like Facebook though, these results are being highlighted by industry sources, with Politico Pro noting that Securing America’s Future Energy and the Alliance for American Manufacturing have been pushing the report around DC.

And that gets back to the challenges of future economic ties between the two superpowers, notwithstanding the latest developments in the trade war negotiation (which seem as likely to conclude as Brexit is to happen).

National security policy is increasingly being used by incumbent players as a cudgel to stifle competition. Many of those national security concerns are valid — and sometimes acutely so — but we also need to be extraordinarily clear that like any market restriction, there is ultimately a consumer cost to these initiatives as well. The Chinese may go without star-studded basketball as much as Americans will go without working subway cars, and that’s the cost of a relationship that has never been built on a foundation of trust.

TikTok today released a new set of safety videos designed to playfully inform users about the app’s privacy controls and other features — like how to filter comments or report inappropriate behavior, among other things. One video also addresses TikTok’s goal of creating a “positive” social media environment, where creativity is celebrated and harassment is banned.

This particular value — that TikTok is for “fun” — is cited whenever the Beijing-based company is pressured about the app’s censorship activity. Today, TikTok hides under claims that it’s all about being a place for lighthearted, positive behavior. But in reality, it’s censoring topics China doesn’t want its citizens to know about — like the Hong Kong protests, for example. Meanwhile, it doesn’t appear to take action on political issues in the U.S., where hashtags like #dumptrump or #maga have millions of views.

To figure out its approach to moderation, TikTok recently hired corporate law firm, K&L Gates, to advise it on how to create policies that won’t have it coming under the eye of U.S. regulators.

In the meantime, TikTok is tackling the job of crafting the sort of community it wants through these instructive videos. But it’s not just issuing its commands from the top-down — TikTok partners with its own creators to participate in the videos and then promote them to fans. The first set of videos, released in February, featured a dozen TikTok creators, for example.

This time around, the company has pulled in a dozen more, including: @nathanpiland@d_damodel@juniortvine@Stevenmckell@supershaund@ourfire@thedawndishsoap@katjaglieson@mahoganylox@chanydakota@shreksdumpster, and @christinebarger.

This is a much different approach to community-setting, compared with Twitter, Facebook or Instagram. Those platforms took years before they addressed users’ basic needs for privacy, security and anti-harassment features, like filtering comments, blocking and muting, and more. In the meantime, social media became a haven for trolls and abuse.

TikTok is approaching the problem from a different standpoint — by consciously creating a community where users are knowledgable and feel empowered to kick out the bad elements from disrupting their fun.

The only problem is that TikTok’s definition of what’s “fun” and appropriate has a political bent.

Creativity and art aren’t only meant for expressing positive sentiments. And given that TikTok is already enforcing China’s censorship of topics like Tiananmen Square, Hong Kong, and Taiwan to its over 500M+ global monthly users, it wouldn’t be a leap to find the company one day censoring all sorts of political speech and other social issues  — effectively becoming a tool for China to spread its government’s views to the wider world. And that’s far less fun.

 

 

In China, Toutiao is literally big news.

Not only has its parent company ByteDance achieved a $75 billion valuation, two of its apps — Toutiao, a news aggregator, and Douyin (Tik Tok in China) — are chipping into WeChat’s user engagement numbers, no small feat considering the central role WeChat plays in the daily lives of the region’s smartphone users.

The success of Toutiao (its name means “headline”) prompts the question: why hasn’t one news aggregator app achieved similar success in the United States? There, users can pick from a roster of news apps, including Google News, Apple News (on iOS), Flipboard, Nuzzel and SmartNews, but no app is truly analogous to Toutiao, at least in terms of reach. Many readers still get news from Google Search (not the company’s news app) and when they do use an app for news, it’s Facebook.

The top social media platform continues to be a major source of news for many Americans, even as they express reservations about the reliability of the content they find there. According to research from Columbia Journalism Review, 43% of Americans use Facebook and other social media platforms to get news, but 57% said they “expect the news they see on those platforms to be largely inaccurate.” Regardless, they stick with Facebook because it’s timely, convenient and they can share content with friends and read other’s comments.

The social media platform is one of the main reasons why no single news aggregator app has won over American users the same way Toutiao has in China, but it’s not the only one. Other factors, including differences between how the Internet developed in each country, also play a role, says Ruiwan Xu, the founder and CEO of CareerTu, an online education platform that focuses on data analytics, digital marketing and research.

While Americans first encountered the Internet on PCs and then shifted to mobile devices, many people in China first went online through their smartphones and the majority of the country’s 800 million Internet users access it through mobile. This makes them much more open to consuming content — including news and streaming video — on mobile.