Extra Crunch Tuesday: Here's what you missed at TechCrunch Early Stage

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Tuesday, July 28, 2020 By Walter Thompson

Welcome to Extra Crunch Tuesday

Welcome to Extra Crunch Tuesday image

As an early-stage investor, Floodgate's Ann Miura-Ko looks for startups that have experienced two breakthroughs: inflection insight and product-market fit.

At last week’s TechCrunch Early Stage virtual event, several founders and investors took part in breakout sessions focused on fundraising, growth, recruiting and other top-of-mind topics for anyone who’s getting a company off the ground.

Miura-Ko used her session to share the new framework Floodgate is using to identify opportunities: “Your insight, if it's nonconsensus, means that it's more of a secret, and it gives you more time to be able to pursue it.

Obviously, if your insight is wrong, there's not much we can do about it. But the fact that it's nonconsensus, and it has the potential to be right, that's the kind of insight I like to bet on.”

We’ve recapped several interviews and panels in today’s newsletter, with more to come.

Have a great week,

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

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Why is SAP spinning Qualtrics out via an IPO?

Why is SAP spinning Qualtrics out via an IPO? image

Image Credits: Nigel Sussman

In yesterday’s edition of The Exchange, Alex Wilhelm unpacked SAP’s announcement that it plans to take “experience management” firm Qualtrics public.

SAP purchased Qualtrics for $8 billion in 2018, an acquisition that “put Utah’s startup scene on the map,” Alex writes.

To better understand the spin-out, he looked back at Qualtrics’ past earnings and growth to get a sense of the company’s potential value in the public markets.

“Did SAP overpay? Did it get a deal? Let's find out what Qualtrics might look like in 2020.”

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Join Playground Global co-founder Peter Barrett for a live Q&A today at at 11 a.m.PT/2 p.m. ET/6 p.m. GMT

Sponsored by TechCrunch

We plan to cover a lot — you don't want to miss it.

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Lo Toney's product manager playbook for pitch deck successs

Lo Toney's product manager playbook for pitch deck successs image

Image Credits: GV

At TC Early Stage, Lo Toney, founding managing partner at Plexo Capital, advised founders crafting pitch decks to think like product managers when telling their story.

“The framework of product management is very similar to the same playbook used by an early-stage investor and early-stage investors in the absence of an abundance of data,” Toney said.

“They're really thinking very similar to a product manager to evaluate an opportunity.”

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Building your startup's customer advisory board

Building your startup's customer advisory board image

Image Credits: massimo colombo / Getty Images

In a TC Early Stage panel titled, “How to get your enterprise idea to product-market fit,” Frederic Lardinois talked to Greylock partner Saam Motamedi about why startups should create a customer advisory board.

A CAB consisting of three to six customers dramatically shortens the time it takes to gather actionable intelligence from users, Motamendi said.

"The idea here is [that] you have this feedback loop from customers back to your product where you build, you go get feedback, you iterate — and the tighter this feedback loop is, the faster you'll get to product-market fit."

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Tech at Work: Black gig workers speak out, Uber's commitment to anti-racism and Facebook's diversity report

Tech at Work: Black gig workers speak out, Uber's commitment to anti-racism and Facebook's diversity report image

Image Credits: Photo by Drew Angerer/Getty Images / Getty Images

In the latest edition of her “roundup and analysis of labor, and diversity and inclusion in tech,” Megan Rose Dickey reported on Uber’s plans to expand D&I, representation in leadership roles and examined how interest in anti-racism is reflected in Google Trends.

She also spoke to CODE 2040 CEO Karla Moterroso about performative wokeness by corporations after George Floyd’s murder, took a closer look at Facebook’s diversity and covered the latest developments in gig life.

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Neo's Ali Partovi on best practices for hiring early-stage startup engineers

Neo's Ali Partovi on best practices for hiring early-stage startup engineers image

Image Credits: Kilito Chan / Getty Images

As co-founder and CEO of Neo, a VC fund and mentorship community that connects young engineers and industry veterans, Ali Partovi is an authority on recognizing engineering talent.

For an Early Stage breakout session, he spoke to TechCrunch’s Brian Heater about best practices for hiring early engineers, including some insight about the fierce competition for talent in Silicon Valley:

“If somebody is more excited about the perks of working at Google, they're probably not the person you want anyway,” he said.

“I wouldn't try to compete on that dimension at all. The type of person you want is someone who is going to be from the beginning a missionary and ideologue.”

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Watch the first TechCrunch Early Stage 'Pitch Deck Teardown'

Watch the first TechCrunch Early Stage 'Pitch Deck Teardown' image

When I was about five years old, I disassembled my parents’ alarm clock with a screwdriver to better understand how it worked. Looking back, asking for permission instead of forgiveness was probably a better choice, but I definitely learned a lot.

For our first Pitch Deck Teardown, no one got a stern talking-to. Instead, Accel's Amy Saper and Bessemer's Talia Goldberg offered advice to the founders of The Charging Company, Alfi, Food Group and Centerly about how to tell their stories for maximum impact.

We’re planning on bringing this event to Disrupt this fall, but if you missed it, click through to watch the entire conversation.

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Without desks and a demo day, are accelerators worth it?

Without desks and a demo day, are accelerators worth it? image

Image Credits: Bryce Durbin / Bryce Durbin

I’ve been backstage at demo days, and it’s a unique experience.

The tension and anxiety in the air is palpable, but it’s balanced by overwhelming optimism that radiates off each participant. Attendees share a strong camaraderie, deals are made in hallways and lives can change in an instant.

But if your accelerator goes virtual, do those benefits still persist? Natasha Mascarenhas spoke to Cleo Capital founding partner Sarah Kunst, Y Combinator CEO Michael Seibel and others about how online-only accelerators are adapting during COVID-19.

"We're learning this right now,” said Seibel.

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VCs and startups consider HaaS model for consumer devices

VCs and startups consider HaaS model for consumer devices image

Image Credits: Nura

Hardware as a service is still fairly uncommon, but Melbourne-based consumer electronics company Nura is using the HaaS model to market its NuraNow headphones that offer customized sound profiles.

“If it's providing continuous value, then it should be worth paying for,” Y Combinator Partner Eric Migicovsky told TechCrunch.

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Boston's Q2 shows that the startup rebound isn't ahead of us, it's upon us

Boston's Q2 shows that the startup rebound isn't ahead of us, it's upon us image

Image Credits: alexsl / Getty Images

When Natasha Mascarenhas and Alex Wilhelm asked 13 Boston-area VCs for a near-term forecast several weeks ago they received a mix of opinions.

As it turned out, “the more bullish were more right than the bears,” as Q2 financing in the region saw its highest level since Q3 2018.

Year-over-year, the amount of total dollars invested in Boston rose 61% in Q2, “while total rounds in the city slipped by a little under 5%.”

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Crisis management tips from startup whisperer Margit Wennmachers

Crisis management tips from startup whisperer Margit Wennmachers image

Image Credits: Peter Dazeley / Getty Images

At some point, your startup will have a Very Bad Day, and you will need a response plan.

Unfortunately, many of us assume that woe will befall someone else, which means you may find yourself sorting through “crisis management” web search results.

TechCrunch Editor-in-Chief Matthew Panzarino moderated a panel with Margit Wennmachers, operating partner at Andreessen Horowitz, and Miguel Helft, editorial director at Message Lab, about how to be the best at preparing for the worst.

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Playbook PM: Trump’s lonely fight for a new FBI building

Presented by the American Cancer Society Cancer Action Network: POLITICO's must-read briefing on what's driving the afternoon in Washington
Jul 28, 2020 View in browser
 
POLITICO Playbook PM

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

Presented by

MARK MEADOWS and Treasury Secretary STEVEN MNUCHIN will be in the Capitol all afternoon. They plan to go to the Senate GOP lunch, then to meet with Speaker NANCY PELOSI and Senate Minority Leader CHUCK SCHUMER, then Senate Majority Leader MITCH MCCONNELL.

HERE'S A QUESTION: Why did the TRUMP ADMINISTRATION try to shoehorn $150 billion for a new FBI building in this Covid spending bill? They have exactly zero allies backing them on this, and it has opened a new line of attack for Democrats and Republicans.

-- HERE'S SEN. RICHARD SHELBY (R-Ala.), chair of the Senate Appropriations Committee: "That was an administration request. … I think some of them will have trouble with that. Some of the Virginia people want it built in Virginia, and Maryland Democrats want the new FBI building built there."

-- SHELBY WAS ASKED why they wanted it in this: "It's needed. The question is: Is it needed now, was it needed yesterday, will it be needed tomorrow? It's certainly going to be needed tomorrow." (h/t NYT's Emily Cochrane) … Sen. PAT TOOMEY (R-Pa.) on the FBI building: "Yeah, I was a little surprised by that." (h/t NBC's Julie Tsirkin)

GOP KEEPS SHOVELING LEVERAGE TO PELOSI … Sen. LINDSEY GRAHAM (R-S.C.) on the Republican proposal: "You can see a bunch of people already pushing back that we haven't spent Phase Three yet, and concerns about the deficit. I get all that. I think if Mitch can get half the conference that'd be quite an accomplishment."

NEW MCCONNELL AD … IF YOU WERE WONDERING what TEAM MCCONNELL thinks is a winning message in 2020, watch this 30-second spot. It lauds the PPP and links AMY MCGRATH to PELOSI. (h/t WaPo's Paul Kane)

RIGHT BEFORE BIG TECH TESTIFIES … "Twitter restricts Donald Trump Jr.'s account after he shared viral video on coronavirus," by Quint Forgey: "Twitter has restricted Donald Trump Jr.'s account on the social media platform after determining the president's eldest son violated its policies against spreading misinformation about the coronavirus pandemic. …

"Twitter's communications team clarified in a tweet that Trump's account 'has not been permanently suspended.' 'Per the screenshot, the Tweet requires deletion because it violates our rules (sharing misinformation on COVID-19), and the account will have limited functionality for 12 hours,' the Twitter spokespeople wrote." POLITICO

ABOUT THAT VIDEO -- ONLY THE BEST PEOPLE … "Trump's New Favorite COVID Doctor Believes in Alien DNA, Demon Sperm, and Hydroxychloroquine," by The Daily Beast's Will Sommer: "A Houston doctor who praises hydroxychloroquine and says that face masks aren't necessary to stop transmission of the highly contagious coronavirus has become a star on the right-wing internet, garnering tens of millions of views on Facebook on Monday alone. Donald Trump Jr. declared the video of Stella Immanuel a 'must watch,' while Donald Trump himself retweeted the video.

"Before Trump and his supporters embrace Immanuel's medical expertise, though, they should consider other medical claims Immanuel has made—including those about alien DNA and the physical effects of having sex with witches and demons in your dreams."

A.G. BILL BARR this morning acknowledged discussing reelection with the president, but otherwise has made little news so far. Some Democrats, including former impeachment prosecutor Dan Goldman, have given House Judiciary Chair JERRY NADLER (D-N.Y.) harsh reviews. Kyle Cheney and Betsy Woodruff Swan's running story WaPo live hearing updates

Good Tuesday afternoon. TRUMP is holding a news conference at 5 p.m.

CONVENTIONAL WISDOM -- "Trump says he will accept Republican nomination in North Carolina after all," by Max Cohen: "'I'll be in North Carolina, and that's a very big deal because we have a lot of the delegates there and that'll be a nomination process,' Trump told WRAL, a Raleigh, N.C. television station. 'And that's essentially where the nomination, where it's formalized. And I'm really honored to do it in North Carolina.' Trump told WRAL he would announce the exact location of his North Carolina acceptance speech in the coming week." POLITICO The WRAL interview

 

A message from the American Cancer Society Cancer Action Network:

Congress addressed the affordability of Covid-19 testing and treatment. Cancer care needs the same. It's time to reduce out-of-pocket costs and ensure cost-sharing assistance benefits cancer patients. Congress: cancer patients need you to act quickly to remove hurdles to quality care.

 

CORONAVIRUS FALLOUT -- "Kodak Lands $765 Million U.S. Loan in Start of Medical Supply Chain Fix," by WSJ's Rachael Levy: "Eastman Kodak Co. has won a $765 million government loan under the Defense Production Act, the first of its kind. The purpose: to help expedite domestic production of drugs that can treat a variety of medical conditions and loosen the U.S. reliance on foreign sources.

"The onetime leader in photography sales is gearing up to produce ingredients for generic drugs, including the antimalarial drug hydroxychloroquine that President Trump has touted in the treatment of coronavirus. Meanwhile, the U.S. is aiming to shift from relying on countries such as China and India … The loan is from the U.S. International Development Finance Corporation." WSJ

-- AP: "U.S. consumer confidence tumbles in July as COVID-19 spreads," by Martin Crutsinger: "U.S. consumer confidence tumbled in July to a reading of 92.6 as coronavirus infections spread in many parts of the country. The Conference Board, a New York research organization, reported Tuesday that its Consumer Confidence Index fell from a June reading of 98.3."

THE PANDEMIC ELECTION -- "How Local Covid Deaths Are Affecting Vote Choice," by The Upshot's Lynn Vavreck and Christopher Warshaw: "The gap between stated voting support for Mr. Trump and Joseph R. Biden Jr. grows by about 2.5 percentage points in Mr. Biden's favor when a county has extremely high levels of coronavirus-related deaths relative to when it has low levels. …

"Republicans running for the U.S. House and Senate lose just as much support as Mr. Trump does when deaths rise locally. It may feel as if all politics is national, but it is not. Research shows that when people are killed in action during wartime, residents of the place the victims are from tend to hold elected leaders in Congress and the White House accountable. … Coronavirus-related deaths seem to be having a similar effect." NYT

THE REOPENING -- "AFT threatens 'safety strikes' in school reopening talks," by Juan Perez Jr.

-- "Coronavirus means many school bus riders could be left with no seat," by CNN's Bianna Golodryga and Meridith Edwards: "As arguments rage about whether it is safe to have children back in classrooms amid coronavirus, there is another major hurdle -- how to get them there. More than 25 million students typically use buses to get to and from school, but with social distancing needs, there will just not be enough space." CNN

LATEST RESEARCH -- "Mask Advocates Cite Plane Transmission Study in Call for Mandate," by Bloomberg's Alan Levin: "The 44-year-old man was chatting with his wife and son on a flight from Singapore to China earlier this year when he let his guard down, allowing his face mask to slip below his nose. That lapse appears to have been how he became infected with Covid-19.

"The case, cited in a recently published study of an outbreak among passengers on a January flight, is one of the first to document a probable transmission on an airliner and is reviving calls for government rules requiring masks. It comes as safety concerns raise questions about whether passengers will return in sufficient numbers to keep airline companies from collapsing." Bloomberg

NOTABLE QUOTABLE , via WAPO'S JACKIE ALEMANY: "'Texas is 22 [expletive] media markets,' said one Biden adviser. 'That is never going to happen. It's just not going to happen. Everyone knows that. I don't know why people are still even talking about it.'

 

HAPPENING TOMORROW @ 12 p.m. EDT – A DEEP DIVE INTO 2020 CAMPAIGN POLLING : With less than 100 days remaining until Election Day, it's time for a deep dive into campaign polling with POLITICO senior campaign and elections editor Steven Shepard and national political reporter Laura Barrón-López. Hear from expert pollsters Margie Omero and Jon McHenry on how the polls look today and what they portend for the future, how the industry corrected mistakes made in 2016, and the impact of Covid-19 on their work. REGISTER HERE.

 
 

PARSCALE WATCH -- "Complaint Says Trump Campaign Payments Broke Rules," by WSJ's Julie Bykowicz: "President Trump's re-election effort is alleged to have paid more than $170 million to companies affiliated with former campaign manager Brad Parscale without disclosing the ultimate recipients of the money, a campaign-finance oversight group says in a new complaint.

"The Campaign Legal Center says in the complaint filed Tuesday with the Federal Election Commission that other records show the campaign has used an external firm to buy TV and radio advertising, but that company isn't named in disclosure filings, nor were some other vendors that have been publicly connected to the campaign. … The Trump campaign said the complaint was without merit." WSJ

YOU CAN'T ALWAYS GET WHAT YOU WANT -- "Lorde, Mick Jagger and More Sign Open Letter Demanding Clearance for Campaign Songs," by Rolling Stone's Claire Shaffer: "Dozens of high-profile musicians in pop, rock and hip-hop have partnered with the Artist Rights Alliance in an open letter demanding that politicians get clearance on the music they play at campaign rallies and other public events.

"The letter calls for major political party committees in the U.S. to 'establish clear policies requiring campaigns to seek consent of featured recording artists, songwriters and copyright owners before publicly using their music in a political or campaign setting.' … The letter's signees include the Rolling Stones' Mick Jagger and Keith Richards, Aerosmith's Steven Tyler and Joe Perry, Sia, Regina Spektor, R.E.M, Lorde, Blondie, Elvis Costello, Sheryl Crow, Rosanne Cash, Lionel Richie, Pearl Jam and Green Day." Rolling Stone

VEEPSTAKES … WAPO DEEP DIVE: "Being police chief powered Val Demings's political rise but could complicate her hopes of becoming Biden's running mate," by WaPo's Cleve Wootson Jr. in Orlando: "Back in Orlando, critics describe Demings as a status-quo chief who did little to improve the culture of a police department that, at one point, used force at nearly twice the rate of similarly sized cities. Demings was well-liked, they said, but not viewed as someone who strongly challenged entrenched interests such as the police union or the heavily white, male roster of officers who worked under her.

"Demings recalls the situation differently. In a recent interview, she described herself as a champion of community policing who disbanded a dysfunctional plainclothes drug unit, focused police resources on the city's most violent repeat offenders and marshaled city services to deal with the societal roots of crime." WaPo

PORTLAND LATEST -- "Trump administration plans to keep federal presence in Portland into October, email shows," by CNN's Priscilla Alvarez

ICYMI ... WSLS: "Police: Richmond riots instigated by white supremacists disguised as Black Lives Matter"

HISTORY LESSON -- "How John Lewis Transformed American Politics," by Joshua Zeitz in POLITICO Magazine: "In his youth, long before he became a civil rights icon … Lewis stood firmly in the American radical tradition. No less strident in his condemnation of American hypocrisy than Frederick Douglass or W.E.B DuBois before him, he shined a spotlight on systemic injustice. He deployed nonviolence with an implicit understanding that it would generate social and economic disturbance and compel civic and business leaders to bend to the movement's demands. He was the scourge of liberals inside the Kennedy administration, conservatives on the editorial board of the National Review and centrists who counseled moderation and patience. In short, his role was to make Americans profoundly uncomfortable.

"But radicalism is only one half of Lewis' legacy. The other half is how Lewis, along with other movement activists who later held elective office … took his radicalism inside the establishment, forever changing the character of the Democratic Party and, with it, the political direction of America itself. They made civil rights an unnegotiable strain of the party's DNA and built Black-led political organizations of a sort unknown since the heyday of Reconstruction."

WAPO'S SEAN SULLIVAN: "Biden announces plans to boost black and Latino finances": "The plan calls for dedicating $30 billion worth of previously proposed government investments to a small business opportunity fund benefiting black, brown and Native American entrepreneurs. The goal is to spur five times as much in private investments. Biden is also proposing to triple the goal for federal contracting with small disadvantaged businesses … And he is calling for President Trump and Congress to create an emergency housing support program, along with promoting a refundable tax credit." WaPo

 

DON'T MISS - POLITICO'S NEW "FUTURE PULSE" NEWSLETTER: The coronavirus rapidly accelerated the onset of telemedicine, but after an initial boom, the wave of virtual visits is quickly fading. What does the future look like? From Congress and the White House, to state legislatures and Silicon Valley, Future Pulse spotlights the politics, policies, and technologies driving long-term change on the most personal issue for voters: Our health. SUBSCRIBE NOW.

 
 

IMMIGRATION FILES -- "China's Muslim Uighurs Are Stuck in U.S. Immigration Limbo," by WSJ's James Areddy and Michelle Hackman: "China's treatment of Uighurs exploded into the American consciousness around two years ago with reports that China was rounding up around a million Uighurs in what appeared to be concentration camps in the western region of Xinjiang. Roughly around the same time, changes in U.S. asylum policies slowed the process for many of those claiming risk in their home countries. …

"Applicants say that they are grateful the U.S. lets them work while awaiting a decision, but that their options are limited as prospective employers or landlords can be wary about their legal status. Lawyer charges and fees to renew work permits and temporary legal documents like driver's licenses are a constant worry. Their quasi-legal status also leaves them at risk of deportation." WSJ

THE BRAVE NEW WORLD -- "Rite Aid deployed facial recognition systems in hundreds of U.S. stores," by Reuters' Jeffrey Dastin: "In the hearts of New York and metro Los Angeles, Rite Aid installed facial recognition technology in largely lower-income, non-white neighborhoods, Reuters found. Among the technology the U.S. retailer used: a state-of-the-art system from a company with links to China and its authoritarian government."

THE NEW COLD WAR -- "U.S. consulate closure in Chengdu lost 35 years of exchanges, says diplomat's wife," by South China Morning Post's Sarah Zheng: "Tzu-i Chuang, the wife of the US consul general in Chengdu, said 35 years of exchanges between Beijing and Washington had been consigned to history …

"The Taiwanese food writer, who is married to Jim Mullinax, the U.S. consul general in Chengdu, wrote a Facebook post describing her sadness at the impact of the mission's closure on its more than 100 local staff, and on the 23 US diplomats and their family members who had flown back to China only last week after leaving during the country's coronavirus outbreak." SCMP

BOOK CLUB -- "Ex-FBI agent Strzok due out with book about Trump, Russia," by AP's Eric Tucker: "'Compromised: Counterintelligence and the Threat of Donald J. Trump' is due out Sept. 8, publisher Houghton Mifflin Harcourt Books & Media said in a statement to The Associated Press.

"The book will offer an insider's view on some of the most sensational and politically freighted investigations in modern American history, including into whether the 2016 Trump campaign coordinated with Russia to sway the presidential election." AP$30 on Amazon

MEDIAWATCH -- "Krissah Thompson named The Washington Post's first managing editor for diversity and inclusion," by WaPo's Paul Farhi: "Thompson, 41, will be responsible for leading the newsroom's efforts in the recruitment, hiring, promotion and mentoring of staff members, with an eye toward expanding the newsroom's diversity.

"Currently an editor in The Post's Style section, she will join the news organization's masthead as one of four deputies to executive editor Martin Baron. She is the first African American woman to become a managing editor in the newspaper's 143-year history."

TRANSITIONS -- Jenn Brown will be SVP for policy, advocacy and campaigns at Planned Parenthood. She most recently was deputy campaign manager for Cory Booker's presidential campaign. … Casey Clemmons is now coordinated campaign director for the Minnesota DFL Party. He most recently was Michigan campaign director at Organizing Together 2020, and is a Pete Buttigieg and Kirsten Gillibrand campaign alum.

 

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