The 6 most important things to know about SaaS+ product architecture

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By Walter Thompson

Tuesday, August 29, 2023

Welcome to TechCrunch+ Tuesday

Welcome to TechCrunch+ Tuesday image

Image Credits: Isabel Alcal / Getty Images

“SaaS+” refers to software companies that augment their core products and services with value-adding features like embedded e-commerce, insurance or payments processing.

Baking these features into the product pipeline creates secondary convenience that delights customers — along with new revenue streams that thrill investors.

Drawing from their experience building a platform for youth athletics, Justin Kaufenberg (managing director at Rally Ventures) and Greg Blasko (co-founder of Monoline) explain how to “build the foundation of your SaaS+ house correctly” with multimerchant cart technology, parent-child data models, and other ideas.

All six recommendations include detailed examples of software architecture choices made inside companies like Kayak, Amazon and Shopify that combine to boost the number of transactions each user makes.

“Being aligned on these concepts will drive product roadmap, core technical architecture, pricing strategy and product marketing,” according to the authors.

Thanks very much for reading TC+!

Walter Thompson
Editorial Manager, TechCrunch+

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Never express your 'use of funds' slide as percentages

Never express your 'use of funds' slide as percentages image

Image Credits: Haje Kamps / TechCrunch+

Building a pitch deck is like four-dimensional chess: Founders need to give investors a convincing narrative that will carry the company from this fundraising round into the next one.

Some teams like to share slides that explain how they plan to allocate funding, but Haje Jan Kamps says percentage breakdowns are a “red flag” to potential investors.

“How much tech do you need to have developed? How many customers and how much revenue do you need? What staff do you need to develop that tech, sell to those customers, and support them?

In other words: “You're raising for milestones, not for percentages or runway.”

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4 ways to show customers they can trust your generative AI enterprise tool

4 ways to show customers they can trust your generative AI enterprise tool image

Image Credits: umdash9 / Getty Images

In light of our ongoing debate about the existential dangers of AI, it was interesting to sit in a theater last night and watch a three-hour epic about the dawn of the Atomic Age.

Eight decades later, we’re once again rushing into a new technological era without first creating a framework for ethics, safety, trust, or a thousand other considerations.

Since there are no industry standards or government agencies guiding AI development, startups need to establish new best practices, according to TC+ contributors Luigi La Corte and Leo Arango.

“Providers that take active steps to reduce the potential for LLM ‘randomness’ and build the most trust will be outsized winners.”

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Pitch Deck Teardown: BusRight's $7M Series A deck

Pitch Deck Teardown: BusRight's $7M Series A deck image

Image Credits: BusRight

America’s school buses comprise the country’s largest public transportation fleet: According to one estimate, students take 10 billion trips each year.

School-bus management platform BusRight recently raised a $7 million Series A with a “well-designed” deck that’s “full of careful touches,” according to Haje Jan Kamps:

  1. Cover
  2. Go to market
  3. Target audience
  4. Market size
  5. Problem
  6. Solution/product
  7. Traction
  8. Sales process
  9. Business model/unit economics
  10. Testimonials
  11. Sales decision dynamic
  12. Growth projection
  13. Team
  14. Closing/contact

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Ask Sophie: What are the visa options for a startup founder with family?

Ask Sophie: What are the visa options for a startup founder with family? image

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

I'm a startup founder in Berlin. I just returned from a visit to Silicon Valley where I met with a new customer. On the trip I realized I need to be based in the U.S. to grow our base with U.S. customers.

What are the best visa options for my family and me? Will any of them allow my husband to work and continue his career?

— Seeking Scale

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Looking for your next book? These 9 authors have reading recommendations for you

Looking for your next book? These 9 authors have reading recommendations for you image

Image Credits: Daniel Grizelj / Getty Images

Anna Heim asked several tech writers: "What book have you read this summer that you think others might enjoy?" Here’s who responded:
  • Adam DuVander
  • Phil Rosen
  • Adi Polak
  • Andrew Lee Miller
  • David Kadavy
  • Sarah E. Brown
  • Zeke Faux
  • David Spinks
  • Purna Virji

Read More

Making AI trustworthy: Can we overcome black-box hallucinations?

Making AI trustworthy: Can we overcome black-box hallucinations? image

Image Credits: Customdesigner / Getty Images

Characters in cartoons might imagine giant hot dogs when they're hungry, but a large language model (LLM) can hallucinate for a variety of reasons, such as poor data quality or an unclear prompt.

Major AI platforms "infer and extrapolate based on what they believe to be the most likely answer, not actual data," according to Dr. Mike Capps, CEO and co-founder of Diveplane.

Instance-based learning, on the other hand, compares training data points "against each other to gain insight into the dataset and the predictions," says Capps. "In other words, IBL 'shows its work.’"

Read More

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PSNI officers disciplined after Sean Graham bookmakers arrest was to ensure Sinn Fein support for police says judge

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Implementation of post-Brexit border checks delayed for fifth time Government has confirmed
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California Today: Testing a program that pays drug users to stay sober

The state is testing a program, run through Medicaid, that lets methamphetamine users earn gift cards by testing negative.
Author Headshot

By Soumya Karlamangla

California Today, Writer

It's Tuesday. California is testing a program that pays drug users to stay sober. Also, waves along California's coast are getting bigger.

Dr. Siddarth Puri, left, an addiction psychiatrist, greeting Damion Corral, 45, a participant in contingency management, a treatment approach that offers rewards for avoiding drug use at Skid Row.Christina House / Los Angeles Times via Getty Images

California began a bold experiment this year: paying people to stay sober.

With overdose deaths on the rise, the state's Medicaid program recently became the first in the nation to begin offering financial rewards to drug users who abstain from using stimulants like cocaine and methamphetamine. The program is an innovative, science-backed effort with many supporters, but it has raised some eyebrows.

"It's really a brave choice of California to try this against potential backlash and misunderstanding," said Catherine Teare, an associate director at the nonprofit California Health Care Foundation, noting that stimulant use is a particularly severe problem among the state's growing homeless population. "This isn't going to solve it," she said, "but I think it's well worth trying."

There aren't any targeted medications to combat addiction to stimulants, as there are for opioids and alcohol, so stimulant addictions are among the hardest to treat. That's why state officials are banking on this pilot program to fight cocaine and methamphetamine abuse.

Deaths from these kind of stimulants in California quadrupled from 2011 to 2019, according to an analysis by the California Health Care Foundation. Emergency department visits related to amphetamines rose nearly 50 percent in two years, from 2018 to 2020, the analysis found.

"The public health burden of methamphetamine use disorder is enormous," said Brian Hurley, the medical director for substance abuse prevention and control in the Los Angeles County Department of Public Health. "We're excited to be able to offer this treatment — we needed this tool for stimulant use disorder."

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Los Angeles County, which has about 20 outpatient treatment centers enrolling patients in the program, is one of two dozen counties, including San Francisco, Alameda and Orange, that are participating in the initiative. According to state officials, 88 percent of California's Medi-Cal population lives in the participating counties. The program is expected to cost roughly $50 million, most of it paid for with federal funding.

The program, which lasts 24 weeks for participants, employs what's known as contingency management, essentially a kind of positive reinforcement. The goal is to rewire people's brains so that they associate not using drugs with good outcomes.

A meta-analysis published in JAMA Psychiatry in 2021 found that 80 percent of studies that tested this approach for stimulant use showed that it reduced drug use. According to the California Department of Health Care Services, contingency management "is the only treatment that has demonstrated robust outcomes for individuals living with stimulant use disorder."

Here's how the state program works: After people who have been diagnosed with a stimulant use disorder enroll, they undergo regular urine testing and are paid for each test that comes back negative for stimulants. The reward, which begins at $10 and rises with each consecutive clean test, comes in the form of a gift card for a grocery store or a retail store. If participants stay clean for 24 weeks, they can earn a total of $599. (Any more than that would have to be reported to the I.R.S.)

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Participants are also offered therapy, counseling, medication to help manage the use of other drugs and connections to community resources. Those services continue for up to six months after the initial 24 weeks.

After six months, "the hope is that the participant has developed recovery skills," Hurley told me. "That said, we would like to see this program continue, and we'd understand if patients needed multiple trials of it."

Enjoy all of The New York Times in one subscription — the original reporting and analysis, plus puzzles from Games, recipes from Cooking, product reviews from Wirecutter and sports journalism from The Athletic. Experience it all with a New York Times All Access subscription.

Surfers braving the waves during a rainstorm at Venice Beach in Los Angeles this year. Colossal waves could make life on the coast even more challenging in the future.Keith Birmingham/The Orange County Register, via Associated Press

The rest of the news

  • A study recently published in The Journal of Geophysical Research shows that climate change is fueling storms that have increased the size and frequency of large ocean waves, including those along California's coast.

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Southern California

Central California

Northern California

  • The Bay Area Air Quality Management District extended an air quality advisory because of smoke from several wildfires burning near the California-Oregon border, The San Francisco Examiner reports.
Beachgoers on an overcast day in Oceanside.Maggie Shannon for The New York Times

Where we're traveling

Today's tip comes from Claire Trageser, who recommends visiting Oceanside, just north of San Diego:

"In the past year, Oceanside has gotten a real revamp, including new or renovated hotels, the Mission Pacific Hotel and the Seabird Resort, that are right by the pier.

They each offer fantastic dining, like the new Michelin-starred restaurant Valle at Mission Pacific. There are also other great places to eat, including 333 Pacific and the Lab.

The area is still sleepier than other oceanside cities, but there's plenty to do, including walking along the ocean, shopping, sightseeing along the pier and visiting the original 'Top Gun' house."

Tell us about your favorite places to visit in California. Email your suggestions to CAtoday@nytimes.com. We'll be sharing more in upcoming editions of the newsletter.

The de Young Museum in San Francisco.George Rose/Getty Images

And before you go, some good news

The de Young Open, a triennial art competition and exhibition organized by the Fine Arts Museums of San Francisco, is returning this fall for its second installment.

The competition, which debuted in 2020, invites visual artists 18 years and older from across the Bay Area's nine counties to submit recent work for a sprawling exhibition celebrating the region's vibrant art scene. Its founding principle is inclusivity. Held at the de Young Museum, it's free to enter and judged anonymously by a panel of local artists and curators.

This year's show will spotlight 887 works across nine different media and explore the issues that shape contemporary life in the Bay Area, as well as the creative preoccupations of the region's artists.

"The de Young Open is a joyful celebration of the creativity that abounds throughout the Bay Area," Thomas P. Campbell, the director of the Fine Arts Museums of San Francisco, said in a news release. "We are delighted to bring it back this fall as a triennial exhibition."

The exhibition, which will open on Sept. 30 and run through Jan. 7, 2024, is free to the public on Saturdays. Read more about the show and how to see it here.

Thanks for reading. I'll be back tomorrow. — Soumya

Briana Scalia and Maia Coleman contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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