Playbook PM: How can you step in it from the basement?

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May 22, 2020 View in browser
 
POLITICO Playbook PM

By Jake Sherman, Anna Palmer, Garrett Ross and Eli Okun

Presented by

JOE BIDEN -- the Democratic Party's presumptive nominee -- said in a radio interview that "you ain't black" if it's hard for you to decide between supporting him and DONALD TRUMP.

BIDEN appeared on "THE BREAKFAST CLUB" with host Charlamagne tha God and said: "If you have a problem figuring out whether you're for me or Trump, then you ain't black." CTG responded: "It don't have nothing to do with Trump, it has to do with the fact I want something for my community." More from Quint Forgey Full interview

CLEANUP! … BIDEN SPOKESWOMAN @SymoneDSanders: "The comments made at the end of the Breakfast Club interview were in jest, but let's be clear about what the VP was saying: he was making the distinction that he would put his record with the African American community up against Trump's any day. Period."

-- "LET'S BE CLEAR" or "make no mistake" are the two phrases that usually precede a walkback.

IF YOU WONDER why the TRUMP TEAM is suggesting more debates than usual, here's your answer. AS NYT's JONATHAN MARTIN said on Twitter: "This morning should end once and for all the question of which party is more eager to get Biden out of his basement. … The Trump premise is essentially that Biden will gaffe his way into making the race competitive — more of a choice less of a referendum. It's possible. But it's also possible voters won't care and a static race will remain so."

-- NYT'S ASTEAD HERNDON: "if this happened in the primary, every reporter would've been dispatched to South Carolina and listen to 100 people tell them 'we don't care'"

MORE FROM THE BIDEN INTERVIEW … TO PEOPLE QUESTIONING HIS COGNITIVE HEALTH: "I say I can hardly wait to meet with that guy who is the stable genius."

-- CTG asked BIDEN why he won't admit the 1994 crime bill was damaging for the black community. BIDEN: "It wasn't the crime bill. It was the drug legislation. It was the institution of mandatory minimums -- which I opposed."

-- ON MARIJUANA: "I know a lot of weed smokers."

-- VEEPSTAKES: "I'm not acknowledging anybody who is being considered, but I guarantee you there are multiple black women being considered. Multiple."

MORE … BIDEN appeared on CNBC's "SQUAWK BOX" this morning:

-- ON THE BIPARTISAN PPP: "What we're doing now is upside down: The bigger you are, the faster you get the money. The smaller you are, you don't get the money."

-- ON AMAZON: "I think Amazon should start paying their taxes, OK? I don't think any company -- I don't give a damn how big they are, the lord almighty -- should absolutely be in a position where they pay no tax and make billions and billions and billions of dollars, number one. Number two: I think that companies should be in a position where they start paying their employees a decent wage and protect their employees. …

"The whole notion of this is, are you playing the game fairly -- like it was set up long before? What's the capitalist system all about? The capitalist system [is] about everybody dealing fairly and dealing straight up with the American people and with their employees."

-- ON REPEALING TRUMP TAX CUTS DURING THE PANDEMIC: "I would repeal the $2 trillion tax cut for the folks making over a million bucks a year. … The corporate tax rate I'd move back to what I had proposed, at 28%."

 

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BREAKING -- "Tara Reade's lawyer drops her as a client," by Natasha Korecki: "In a statement, Douglas Wigdor, who has represented victims of sexual assault in the past, said the decision did not have to do with the question of whether Joe Biden sexually assaulted her in 1993, as Reade has alleged. The announcement came a day after defense lawyers in California said they were reviewing whether she misrepresented her credentials in past cases where she testified as an expert witness.

"Wigdor asserted he made the decision earlier in the week. … Wigdor, a 2016 donor to President Trump and the Republican National Committee who has also represented accusers of Hollywood film producer Harvey Weinstein, reiterated his belief that Reade was subjected to unfair media scrutiny." POLITICO

Happy Friday afternoon.

CALLING ALL CHINA WATCHERS: The trajectory of the U.S.-China relationship will determine whether this century is judged a bright or a dismal one. POLITICO's David Wertime is launching a new China newsletter that will be worth the read. Sign up here.

APRIL UNEMPLOYMENT RATES BY STATE, per new BLS data … NEVADA is by far the highest, at 28.2%, followed by MICHIGAN (22.7%) and HAWAII (22.3%). The release

HYDROXYCHLOROQUINE LATEST -- "Antimalarial drug touted by President Trump is linked to increased risk of death in coronavirus patients, study says," by WaPo's Ariana Eunjung Cha and Laurie McGinley: "The study, published Friday in the medical journal the Lancet, is the largest analysis to date of the risks and benefits of treating covid-19 patients with antimalarial drugs. It is based on a retrospective analysis of medical records, not a controlled study in which patients are divided randomly into treatment groups — a method considered the gold standard of medicine. But the sheer size of the study was convincing to some scientists. …

"For those given hydroxychloroquine, there was a 34 percent increase in risk of mortality and a 137 percent increased risk of a serious heart arrhythmias. For those receiving hydroxychloroquine and an antibiotic — the cocktail endorsed by Trump — there was a 45 percent increased risk of death and a 411 percent increased risk of serious heart arrhythmias." WaPo The study

HMM -- "'This is a bad practice': Doctors question FDA protocol for plasma treatment of coronavirus patients," by Yahoo's Alexander Nazaryan: "In its understandable rush to make convalescent plasma available, the FDA did not mandate that blood banks test the blood they collect for the very coronavirus antibodies that make the treatment promising. Of the three levels of testing donated blood for antibodies, only the least rigorous — and hence the least exact — is mandated.

"That has put the medical establishment in an uncomfortable position, with many touting the treatment but some also warning against it. … Promising as the treatment may be, it has been administered in what some say is a counterproductive manner. And while convalescent plasma has doubtlessly helped many people, its benefits have been blunted by what critics say is a haphazard federal response." Yahoo

 

HELP THOSE WHO NEED IT MOST: Families in the DMV have been crushed by layoffs, and they are trying to keep kids home from school and are worried about their health. Our neighbors need us now more than ever. You can help. From grab-and-go dinners for kids to boxes of groceries for seniors, your support will help provide millions of meals for people in the greater Washington, D.C., community who need it the most during this crisis. Please support the Capital Area Food Bank's Covid-19 response today.

 
 

VEEPSTAKES -- "Two Very Different Democrats: What a Biden-Warren Ticket Might Be Like," by NYT's Adam Nagourney and Jonathan Martin: "Joseph R. Biden Jr. speaks with Elizabeth Warren about once a week. They review the latest developments on the Covid-19 crisis and the collapsing economy. They trade ideas about how a Democratic president, like Mr. Biden, might rescue the country. They exchange tales about their lives sheltered in place …

"Should Mr. Biden select Ms. Warren, the Democratic ticket would be a marriage of contrasting policy ideas and governing philosophies unlike any seen since Jimmy Carter, the moderate governor of Georgia, chose Walter F. Mondale … In a sign of Ms. Warren's willingness to demonstrate flexibility, an aide said that if asked to do so, whether or not she was on the ticket, she would drop her opposition to high-dollar fund-raising." NYT

-- VAL DEMINGS talks to BUZZFEED'S HENRY GOMEZ: "'I believe my real life, on-the-ground experience — dealing with real people, real families, real issues, critical issues, crisis management — would be a valued asset to Vice President Biden,' Demings told BuzzFeed News. 'I started out as a social worker right out of college working with families that needed emergency services and abused children, children that were in foster care.'

"'Police work is tough, right? But working with broken children and broken families? That's a job that will really break your heart. But it was all done with the goal of restoring, rebuilding, and healing. And then I became a law enforcement official with a social worker's heart. I've seen people at their best and I've seen people at their worst.'" BuzzFeed

IMMIGRATION FILES -- "Trump Administration Changes Rules for Migrant Children During Pandemic," by WSJ's Michelle Hackman, Alejandro Lazo and Alicia Caldwell: "The Trump administration is reversing longstanding policies on the treatment of children and families who come into the U.S. illegally, citing laws and court rulings related to the coronavirus pandemic as reasons for changes it has long sought.

"The government has in recent weeks returned minors who cross the border alone to their home countries faster than before—sometimes in a matter of hours. It has also begun making parents decide whether their children should be released or held with them indefinitely in immigration detention … In court documents filed Friday of last week, ICE listed 'parent does not wish to separate' as the reason for denying the release of 177 children." WSJ

WHO'S ON FIRST -- "U.S. wants WHO review of COVID-19 response to start 'now,'" by AP's Jamey Keaten in Geneva: "The United States says it wants the World Health Organization to start work 'now' on a planned independent review of its coordinated international response to the COVID-19 outbreak, at a time the Trump administration has repeatedly criticized the agency and is threatening to cut off U.S. funding for it.

"Adm. Brett Giroir, an assistant secretary in the U.S. Department of Health and Human Services, sent a letter to the U.N. health agency's executive board meeting on Friday saying the United States believes the WHO can 'immediately initiate' preparations such as bringing together independent health experts and setting up guidelines for the review." AP

 

GO BEYOND OUR BORDERS FROM YOUR HOME: Global Translations, presented by Bank of America, is the only newsletter focused on essential global news, trends and decisions layered with critical contextual analysis from the sharpest minds around the world. From how countries are dealing with economic crisis, to technology advances, trade challenges and climate change, Global Translations offers a unique perspective that cannot be found anywhere else. SUBSCRIBE TODAY.

 
 

FOLLOW THE MONEY … "'Dark money' networks hide political agendas behind fake news sites," by the Center for Responsive Politics' Anna Massoglia: "Acronym is behind Courier Newsroom, a network of websites emulating local news outlets. Courier has faced scrutiny for exploiting the collapse of local journalism to spread 'hyperlocal partisan propaganda.' It claims to operate 'independent from' Acronym and says ownership is shared with 'other investors.' But a new tax return obtained by OpenSecrets lists Acronym as the full owner of Courier as of Dec. 31, 2018, the most recent date on record.

"Websites affiliated with Courier Newsroom that appear to be free-standing local news outlets are actually part of a coordinated effort with deep ties to Democractic political operatives. … Courier's newest digital operation masquerading as local news outlet, Cardinal & Pine, spent more than $20,000 on digital advertising targeting North Carolina since launching its first Facebook ad campaigns in late March. The page's ads give the appearance of news but are mostly focused on the coronavirus pandemic or on criticizing President Donald Trump."

CASH DASH -- "Joe Biden Finds Bernie Sanders's Donors Elusive," by WSJ's Chad Day and Julie Bykowicz: "About 60,000 people who gave to the Vermont senator during the Democratic primary had also chipped in to Mr. Biden's campaign by the end of April, according to the Journal's analysis of Federal Election Commission data filed this week. That group amounted to just under 3% of the roughly 2.2 million total Sanders donors the Journal identified in public filings." WSJ

PROTOCOL'S EMILY BIRNBAUM: "Who's advising Joe Biden on tech policy? No one in particular": "At a moment when the biggest issues in technology are ascendant in national politics, Joe Biden has often been difficult to pin down. And that may not change anytime soon: The presumptive Democratic nominee does not have a top adviser focused on tech policy, according to campaign materials and party veterans, including some who have offered informal advice to Biden on tech.

"The lack of tech leadership in the campaign marks a contrast with his Democratic predecessors, as well as some of Biden's competitors in the Democratic primary, and reflects a belief that issues like online misinformation, privacy regulation and alleged anticompetitive behavior by tech's giants will not be pivotal to unseating President Trump. To some advocates for reforming the tech industry, though, Biden — whose written policy prescriptions largely avoid venturing into tech — is missing an opportunity to lead in areas that have gained new prominence and urgency." Protocol

FOR YOUR RADAR -- NYT/ISLAMABAD: "Jetliner With 99 Aboard Crashes Into Crowded Pakistani Neighborhood," by Salman Masood

BONUS BIRTHDAY OF THE DAY: James Hooley, head of the British Embassy's political section. A fun fact about him: "When I was at high school I had a small part in a children's TV program and the odd walk-on part in a couple of other shows on at the time. It felt very exciting, and I thought I might go to drama school or something like that. But I decided against and ended up studying political science instead. I did a couple of university productions, but I'm certain the acting world has not been deprived of a great talent!" Playbook Q&A

 

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Extra Crunch Friday: This UX specialist opened 12 UK bank accounts and ‘logged everything’

Extra Crunch Newsletter
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Friday, May 22, 2020 By Walter Thompson

Welcome to Extra Crunch Friday

Welcome to Extra Crunch Friday image

Pitch deck analysis is good and useful, but a methodical UX teardown can serve as a roadmap for founders and product teams who are pressed for time.

Steve O’Hear interviewed Peter Ramsey, a user-experience expert who opened a dozen bank accounts with incumbent and challenger banks so he could record “every click, screen and action.”

"Quite literally, I opened 12 real bank accounts," he explains. "You remember the stress of opening one account? I did that 12 times, [and] it was probably a terrible idea. But I really needed to control as many variables as possible, and this was the only way of doing that."

Ramsey is releasing his analysis with case studies on his company’s web site, but Steve landed an interview and early access to some of his key findings in an extensive Extra Crunch Q&A. We’ll even let you know which bank took first place.

We’re off on Monday for Memorial Day, so have a relaxing long weekend. Thanks for reading!

 

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

Read more

12 VCs share their thoughts on enterprise startup trends and opportunities

12 VCs share their thoughts on enterprise startup trends and opportunities image

Image Credits: yangyang / Getty Images

Enterprise reporter Ron Miller reached out to a dozen investors who are active in SaaS companies to find out what they’re looking for in their next investments.

Their responses were detailed and varied, but the future of work and DevOps were recurring topics. If you’re interested in learning what these VCs are thinking and talking about these days, please read:

  • Max Gazor, CRV
  • Navin Chadda, Mayfield
  • Matt Murphy, Menlo Venture Capital
  • Soma Somasagar, Madrona Ventures
  • Jon Lehr, Work-Bench
  • Steve Herrod, General Catalyst
  • Jai Das, Sapphire Ventures
  • Max Gazor, CRV
  • Ed Sim, Boldstart Ventures
  • Martin Cassado, Andreessen Horowitz
  • Vassant Natarajan, Accel
  • Dharmesh Thakker, Battery Ventures

Read more

API startups: So hot right now

API startups: So hot right now image

Image Credits: Juana Mari Moya / Getty Images (Image has been modified)

As Clydesdale-sized unicorns wait on the sidelines for the IPO window to reopen, a number of API-based startups have been “raising capital in rapid-fire fashion,” writes Alex Wilhelm, a signal that these firms have solid business models.

To discern a trend, he studied six recent raises that suggest these high-growth companies are very well-positioned to ride out the current uncertainty.

Read more

GitLab's head of Remote on hiring, onboarding and why Slack is a no-work zone

GitLab's head of Remote on hiring, onboarding and why Slack is a no-work zone image

Image Credits: Darren Murph

As Head of Remote for a company with more than 1,200 employees in 65+ countries, Darren Murph not only helps GitLab shape culture and internal policy, he’s also an evangelist.

In the opener to a two-part interview, Murph offers guidance for companies that were compelled to make WFH their default and talks about building productive teams with shared values — when no one has met each other in real life.

Read more

What people tend to get wrong about remote work

What people tend to get wrong about remote work image

Image Credits: Steve Jennings / Getty Images

In Part 2 of their interview, Darren Murph discusses the massive rush to creating remote work environments, creating work/life balance, and explains the concept of “short toes.”

Read more

Dear Sophie: What is required of employers laying off foreign workers?

Dear Sophie: What is required of employers laying off foreign workers? image

Dear Sophie:

Fallout from COVID-19 is forcing our startup to downsize. What legal requirements do we need to consider if we're laying off foreign-born employees or scaling back their hours?

— HR Manager in San Mateo

Read more

Why VCs say they're open for business, even if they're pausing new deals

Why VCs say they're open for business, even if they're pausing new deals image

Image Credits:

Alexia Bonatsos of Dream Machine and Niko Bonatsos of General Catalyst joined Alex Wilhelm for an episode of Extra Crunch Live this week to talk about where they’re investing their time and money these days.

The conversation touched on a wide range of topics, so Alex gathered some transcribed highlights regarding the future of AI, today’s fundraising climate, “and the possible impact of the downturn on VC-backed founder diversity.”

You can watch/listen to the full chat on YouTube — if you’re an Extra Crunch member.

Read more

Why micromobility is poised to come out of the pandemic stronger than before

Why micromobility is poised to come out of the pandemic stronger than before image

Image Credits: Bryce Durbin / Bryce Durbin

In spite of pandemic-fueled layoffs, acquisitions and other travails, the analyst who coined the term “micromobility” says the industry is poised for a comeback.

"The companies involved may not survive a crisis," Horace Dediu told TechCrunch.

"We don't remember the fact there were 3,000 automobile companies in the United States prior to Henry Ford's Model T. We don't remember all the electrical suppliers out there and the consolidation that took place in the electrical field with Westinghouse.

There's a lot of historic references we can cite. But the fact of the matter is that up until the crisis there was an over-investment where probably too much capital was allocated to the industry chasing business models which are not sustainable…I think there will be a washout with a kind of consolidation and we're seeing that already."

Read more

What to do when your VC writes your startup off

What to do when your VC writes your startup off image

Image Credits: Bryce Durbin / Bryce Durbin

Managing Editor Danny Crichton writes that VCs are more likely to use veiled language like “we will be engaging less” or “we are unlikely to do our pro rata going forward,” instead of saying, “we are writing you off; don't call us — we'll call you.”

Watching someone cut the rope you’re hanging from is upsetting, but if you can gather information and get clarity on some key issues, you’ll be prepared “to work through this thicket of feeling.”

Read more

Extra Crunch Live: Join Verizon CEO Hans Vestberg for a live Q&A May 26 at 2pm ET/11am PT

Extra Crunch Live: Join Verizon CEO Hans Vestberg for a live Q&A May 26 at 2pm ET/11am PT image

Verizon Communications CEO Hans Vestberg will appear on Extra Crunch Live to discuss the business impacts of the COVID-19 pandemic and the challenges associated with managing 135,000 employees during a global health emergency.

Given his broad portfolio, we’ll see if he has any insights for founders about managing a company at scale, but we’ll also discuss Verizon’s 5G rollout, a subject of interest for many startups.

Sign up here to join Extra Crunch so you’ll have a chance to ask a question during the chat.

Verizon Communications is TechCrunch’s parent company.

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Despite COVID-19, optimism reigns in the Midwest's startup scene

Despite COVID-19, optimism reigns in the Midwest's startup scene image

Image Credits: Marvin E. Newman / Getty Images

A report from Sandalphon Capital offers gloomy news regarding tight cash runways and fundraising in the Midwest’s startup scene, but “it also reflects more optimism and green shoots than we anticipated,” writes Alex Wilhelm.

The report gathered data from 197 CEOs in the region, so Alex examined the study with a focus on COVID-19's direct impacts, runway and fundraising situations, and overall CEO optimism.

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6 CISOs share their game plans for a post-pandemic world

6 CISOs share their game plans for a post-pandemic world image

Image Credits: Jung Getty / Getty Images

Six of the world's leading CISOs shared their COVID-19 experiences and their plans for the future, providing insights on how cybersecurity companies should develop and market their solutions to emerge stronger:

Ian Amit, Cimpress
Colin Anderson, Levi Strauss & Co.
Al Ghous, ServiceMax
Adrian Ludwig, Atlassian
Rinki Sethi, Rubrik
Elwin Wong, Ross Stores

Read more

Beware mega-unicorn paper valuations

Beware mega-unicorn paper valuations image

Image Credits: rudall30 / Getty Images

To gain some insight into the post-unicorn era, Alex Wilhelm revisited a 2010 blog post by developer/entrepreneur David Heinemeier Hansson titled “Facebook is not worth $33,000,000,000.”

“DHH wrote that profits matter, companies are ultimately valued on them, and that companies that don't scale financial results as they add customers (or users) aren't great,” Alex summarized. “All of the arguments work.”

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Create a 90-day timeline after fundraising to strengthen investor-founder ties

Create a 90-day timeline after fundraising to strengthen investor-founder ties image

Image Credits: Richard Drury / Getty Images

After the check is cut, founders and investors enter the next phase of their relationship, which means it’s time to establish good habits when it comes to communication, trust and transparency.

Creating a three-month timeline will help founders who want to get the most value out of their investor relationships — and it’s Entrepreneurship 101.

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Extra Crunch Live: Join Box CEO Aaron Levie May 28th at noon PT/3 pm ET/7 pm GMT

Extra Crunch Live: Join Box CEO Aaron Levie May 28th at noon PT/3 pm ET/7 pm GMT image

Image Credits: TechCrunch / Flickr

Box CEO Aaron Levie started his company 15 years ago in a dorm room, but today, he’s the executive of a publicly-traded company who’s preparing to enter his second economic downturn.

In an Extra Crunch Live chat on May 28, we’ll ask how he’s applying what he learned during the 2008 crisis to the current moment and if he has any guidance for companies that are speeding up their digital transformation during the pandemic.

Extra Crunch members will have a chance to ask questions during the discussion; please sign up here so you can participate.

Read more

Strategies for surviving the COVID-19 Series B squeeze

Strategies for surviving the COVID-19 Series B squeeze image

Image Credits: Peter Dazeley / Getty Images

Forget what you’ve learned, advises Mikael Johnsson, co-founder and general partner of Oxx, a growth-stage VC firm that invests in European SaaS companies. “The world has changed for everyone, and nowhere is this more true than in fundraising.”

To help founders find their balance on this shifting landscape, he offers five basic survival strategies. The first? “Adjust your expectations.”

Read more

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