COVID-19
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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.
The app industry saw a record 204 billion downloads and $120 billion in consumer spending in 2019, according to App Annie’s “State of Mobile” annual report. People are now spending 3 hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.
In this Extra Crunch series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.
This week, we’re continuing our special coverage of how the COVID-19 outbreak is impacting apps and the wider mobile app industry as more COVID-19 apps appear — including one from Apple built in partnership with the CDC, among others. We also take a look at the gains made by social and video apps in recent weeks as people struggle to stay connected while stuck at home in quarantine. In other headlines, we dig into Instagram’s co-watching feature, the Google for Games conference news, Apple’s latest releases and updates, Epic Games expansion into publishing and more.
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Yesterday, I had the pleasure of hopping on Zoom with betaworks’ John Borthwick and Matt Hartman to discuss the tech world’s adaptation to this new locked-down world, the future of new media and answer questions from the audience.
We discussed whether new media companies can raise capital right now, and touched on emerging trends around audio, voice, AR, live events, travel-related companies and many other topics.
It was a delight, and I’m excited to do more of these in the future.
For those of you who missed the Zoom, here’s a rundown of what we discussed (audio embed below).
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One of the newer companies attempting to join the rarified group of private space launch startups actually flying payloads to orbit has redirected its entire UK-based manufacturing capacity towards COVID-19 response. Skyrora, which is based in Edinburgh, Scotland, is answering the call of the UK government and the NHS to manufacturers to do what they can to provide much-needed healthcare equipment for frontline responders amid the coronavirus crisis.
Skyrorary says that the entirety of its UK operations, including all human resources and its working capital are now dedicated to COVID-19 response. The startup, which was founded in 2017, had been working towards test flights of its first spacecraft, making progress including an early successful engine test using its experimental, more eco-friendly rocket fuel that was completed in February.
For now, though, Skyrora will be focusing full on building hand sanitizer, its first effort to support the COVID-19 response. The company has already produce their initial batch using WHO guidelines and requirements, and now aims to scale up its production efforts to the point where it can manufacture the sanitizer at a rate of over 10,000 250 ml bottles per week.
There’s actually a pretty close link between rocketry and hand sanitizer: Ethanol, the form of alcohol that provides the fundamental disinfecting ingredient for hand sanitizer, has been used in early rocket fuel. Skyrora’s ‘Ecosene’ fuel is a type of kerosene, however, which is a much more common modern aviation and rocket fuel.
In addition to sanitizer, Skyrora is now in talks with the Scottish Government to see where 3D-printed protective face masks might have a beneficial impact on ensuring health worker safety. It’s testing initial prototypes now, and will look to mass produce the protective equipment after those tests verify its output.
Plenty of companies are pitching in where they can, including by shifting their production lines and manufacturing capacity towards areas of greatest need. It’s definitely an ‘all-hands-on-deck’ moment, but there’s definitely a question of what happens to businesses that shift their focus this dramatically once the emergency passes, especially for young startups in emerging industries.
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When looking for answers, where do people first turn? For many, it’s Google.
During the first half of March, we saw Google searches for “work from home” reach a 12-month high, garnering at least 50% more search interest than the anticipated peak, which usually occurs within the first week of January. This number will continue to grow as outside circumstances evolve.
This search behavior reflects the world around us. Today, employees and employers alike are grappling with the new norm — at least for the short-term — which is working remotely. While having a remote-ready model in place was once viewed as a competitive advantage to attract talent, it’s now a must-have to keep organizations afloat.
With vacant positions costing organizations around $680 daily, the impact that interrupted recruiting efforts can have on a business’ bottom line is jarring. As such, HR professionals were early adopters of successful remote communication practices, learning lessons that can be applied across the business to successfully make personal connections without being in-person. Employers are doing all they can to address their existing employee base at this critical time, while also working hard to maintain their hiring efforts.
Having the right technology in place to sustain work-from-home practices is more important now than ever before. There are four steps that employers can take to successfully integrate and adapt successful virtual hiring technologies into their business continuity plans, considering all outside circumstances, and without sacrificing their productivity and unique company culture.
Prepare and plan. Employers have an obligation to provide their people with clear direction in times of disruption.
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No one wants to prepare for their fundraising round to fail. Many founders spend months (or even years) getting their businesses to a point where they’re ready to pitch investors. But there are times when, no matter how hard you try, you’re just not going to be able to close a deal.
With the current COVID-19 pandemic, the entire VC community is in a state of uncertainty, and there is no clear answer when it comes to the question, “can I still raise funds for my company?” However, there’s hope for early-stage startups. We used the 2020 DocSend Startup Index to track Pitch Deck Interest among investors and found that last week, despite seismic changes across the country, pitch deck interest has only been 11.6% lower than the same week in 2019 so far.
We will be monitoring the Pitch Deck Interest Metric in the coming weeks, but if you’re an early-stage startup and you were planning to raise, there is still opportunity to come away with a term sheet. But if things don’t go as planned, how do you know if it’s time to give up or if you just need to push through?
According to recent DocSend data, you’ll know pretty quickly if it’s time to call it quits. While the average founder who was successful in fundraising contacted 63 investors during their process, startups that weren’t able to raise funds stopped at 27. Why stop? Because the founder listened to the feedback they were getting. If you hear the same concern or piece of feedback twice you should take it to heart, but if you hear it three times you probably need to stop and rethink things.
The Pitch Deck Interest Metric declined 11.6% compared to the same week in 2019
According to our study on the fundraising process of pre-seed startups, founders who were unsuccessful in raising had just nine meetings. That should give you enough feedback to know if you have a deal breaker in your deck.
But negative feedback doesn’t mean all is lost. In fact, of startups studied in the 2020 DocSend Startup Index, 86% reported that they were going to try to fundraise again after addressing the feedback they’d received.
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Many founders will have kicked off the new year with a new fundraising round. According to the data we shared last year, March, October and November were the months when VCs were reviewing the most decks.
But the COVID-19 pandemic has ground to a halt many industries, and there are even warnings that this will affect the next two quarters in regards to fundraising.
We’ve reviewed the data in our 2020 DocSend Startup Index and we’ve begun tracking the Pitch Deck Interest Metric. With San Francisco under a shelter-in-place order and many VCs scrambling to adjust their processes to an all-remote world, we saw pitch deck interest drop 11.6% when compared to the same week in 2019. While there has been a drop in interest so far, there is still a lot of activity, and VCs seem to still be reading pitch decks.
We will be monitoring the Pitch Deck Interest Metric in the coming weeks, but if you’re an early-stage startup and are in the middle of your fundraise, or are about to fundraise, there are some things you can do to help insure your startup is ready for funding before you meet with any (more) investors.
The Pitch Deck Interest Metric declined 11.6% compared to the same week in 2019
If you were about to kick off a fundraising round, you should have been prepared to contact 50 or more investors, have 20-30 meetings and spend somewhere around 20 weeks before you signed your term sheet. That’s a lot of time and energy to invest, especially when the economy is poised for a downturn and you’re most likely needed in other parts of your business.
If you’ve already started your round and are wondering if you should push through, I’ve written a piece on knowing when to quit and recalibrate versus when to push through (Extra Crunch membership required).
Many factors play into navigating a successful fundraising round, and the expectations of investors are constantly changing — specifically when it comes to the pre-seed round.
Investors are now looking for market-ready products and want to see pitch decks that feature the content they’re expecting. We expect to see this focus intensify over the coming months as VCs have more time to spend not just to review pitch decks, but on due diligence for companies in which they plan to invest. Our new report outlines advice for pre-seed startups that are looking to adjust their fundraising strategy.
Our analysis reveals a shift in the level of readiness required by institutional investment to receive pre-seed funding. In the past, pre-seed startups could get by with just an MVPP (Minimum Viable PowerPoint). But now, investors are placing their bets on pre-seed startups that have already entered the market and developed an alpha, beta or shipping product.
In fact, 92% of companies with successful pitch decks had either an alpha, beta or shipping product, where only 68% of companies with unsuccessful pitch decks presented the same type of product readiness.

As the economy moves closer to a downturn we can expect VCs to be more cautious with their investments. The current data already shows a preference for companies that have live products; it’s worth the time and effort to be product-ready coming into a pre-seed round or if you’re a startup ready to tackle the round again with a fresh perspective.
That said, even if you do have an MVP, rethinking your pitch deck may be something else to consider. Here’s a good test. Using your pitch deck, spend three to four minutes (that’s all the time you’ll get from a VC) to pitch your business to a friend or family member who knows nothing about your business. Afterward, ask them for a one-sentence description of your company. If they’re not clearly describing what your company does and the problem it’s trying to solve, you probably need to rethink your pitch deck.
According to our recent report, a “less is more” attitude toward creating a compelling pitch deck for meetings could mean more success in pre-seed fundraising.
Your pitch deck will be your main calling card right now. As community events are being replaced with online gatherings during the COVID-19 pandemic, we can expect to see less one-to-one engagement at these events. So pitching a VC in person is not likely to happen anytime soon. Whether you’re sending them a cold email, or getting a warm intro from a portfolio company, you’re going to need to lead with your pitch deck.
Despite the product taking a more prominent role in the fundraising round, the pitch deck is still a focal point and should be tailored to tell your story in the most effective way, as investors are spending less time evaluating them. On average, investors are spending just 3 minutes and 21 seconds on the pitch deck and the average deck is just 20 slides.
If you are in the process of reevaluating your pitch deck, it could be helpful to make sure your slides feature the right content in the right order. Investors spend nearly 50% more time on the product slides in successful pitch decks and over 18% longer on the business model in unsuccessful pitch decks. Additionally, investors spent more time on solution slides in successful decks than unsuccessful decks.

Another area that could benefit from reevaluation is the number of investors contacted, meetings held and the number of weeks spent in a funding round. Generally speaking, the average amount of investors contacted for successful fundraising rounds is 56, resulting in 26 meetings. On average, successful pre-seed startups will spend 20.5 weeks on fundraising.
When it comes to fundraising, there are diminishing returns for investor outreach. You shouldn’t need to send your deck to more than 60-70 investors and have more than 20-30 meetings. If you’re doing more than that, the ROI on your time just isn’t worth it. Because the current crisis is affecting VCs’ willingness to invest, you’re better off finding a small list of investors who are active and targeting your pitch to them. If you’ve reached out to more than 70 investors, but you’re still faced with a wall of “nos” you’re better off pausing your fundraising and addressing the feedback you’ve received so far. For more on when you should quit and reevaluate versus push through you can read my article here (Extra Crunch membership required).

Another area pre-seed startups should evaluate is the number of founders of a company. Our data shows investors still prefer teams of two-three founders, though our data shows that being a solo founder is preferable to having too many founders. For teams of five founders, they averaged earning $195,085 while founding teams of three garnered $511,522.
This may be the right time to find a co-founder. With many people working from home or out of work, this could be the opportunity to take your idea and bring on the technical founder you need. There are online groups and events popping up everywhere in response to social distancing. If you’re worried being a solo founder is going to hold you back, you may want to invest time in those new communities.

For many startups, especially if you are not in Silicon Valley where a substantial amount of funding happens, the process of fundraising can be very opaque. DocSend’s purpose in analyzing this data is to bring some transparency to the process. This in turn provides perspective.
But what founders should do, if they haven’t done so already, is to get some additional perspective. Talk to experts outside your immediate circle of influence. Don’t have a mentor or advisors? Find them. Get a different take on your product idea or the market conditions. Especially now that community events are going virtual, location doesn’t have to hold you back from joining the startup community and finding people to offer feedback on your product or company.
Fundraising is both an art and science. Combining the insights from our data with the benefit of your own community can help you get back on your feet and pitching your company with hopefully a better outcome.
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We look at an in-depth screener app for COVID-19, U.S. stocks take another tumble and Apple extends its free trial for Final Cut Pro and Logic Pro. Here’s your Daily Crunch for March 27, 2020.
Stay safe and socially distanced this weekend!
1. Clearstep’s COVID-19 chat-based screener goes in-depth to preserve healthcare resources
There are a growing number of symptom checker and screening tools that you can use at home if you suspect you might have contracted the new coronavirus that is causing the global COVID-19 pandemic. Most of these are relatively simple, including three or four questions that cover the top reported symptoms experienced by anyone who has confirmed to have had the disease.
In contrast, chatbot-based symptom checking software startup Clearstep has created its own COVID-19 screener, which goes more in-depth to combine symptom checking with screening for potential exposure to the virus.
2. Stocks fall sharply Friday morning as the mid-week recovery falls short
The major American stock market indices are down sharply this morning at the open, with stocks falling after a multi-day rally helped shave some losses off their calendar-year results.
3. Apple extends free trials for its pro creative apps
Apple announced today that they are temporarily extending the free trials on Final Cut Pro X and Logic Pro X from 30 days to 90 days, giving potential customers stuck at home a longer window of time to try out the software. With this announcement, Apple joins a number of other software companies extending the free trials of their products in the midst of the COVID-19 crisis.
4. Yelp pauses GoFundMe Covid-19 fundraising after opt-out outcry
A fundraising program that Yelp and GoFundMe put in place this week to help local businesses impacted by the COVID-19 pandemic has been paused after public outcry over how it was rolled out — specifically, controversy over how the two provided no easy and quick way to opt out of the fundraising.
5. Smart telescope startups vie to fix astronomy’s satellite challenge
The stakes involved are high, with projects like Starlink (the satellite branch of SpaceX) potentially being central to the future of global internet coverage, especially as new infrastructure implements 5G and edge computing. At the same time, satellite clusters — whether from Starlink or national militaries — could threaten the foundations of astronomical research. (Extra Crunch membership required.)
6. Notarize to add 1,000 online notaries to address demand for remote transactions
The startup is partnering with the National Notary Association to verify notaries have been screened and have the necessary insurance or bonding. The service is available to Americans in all 50 states or abroad, but notaries must be physically located in Florida, Nevada, Texas or Virginia to join the platform.
7. Social Bluebook was hacked, exposing 217,000 influencers’ accounts
Social Bluebook, a Los Angeles-based company, allows advertisers to pay social media “influencers” for posts that promote their products and services. The company claims it has some 300,000 influencers on its books, but in October 2019, its entire backend database was stolen in a data breach.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.
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Bird is the latest startup hit by the COVID-19 pandemic. Today, Bird laid off about 30% of its employees amid the uncertainty caused by the coronavirus, TechCrunch has learned.
“The unprecedented COVID-19 crisis has forced our leadership team and the board of directors to make many extremely difficult and painful decisions relating to some of your teammates,” Bird CEO Travis VanderZanden wrote to staffers in a memo, obtained by TechCrunch, today. “As you know, we’ve had to pause many markets around the world and drastically cut spending. Due to the financial and operational impact of the ongoing COVID-19 crisis, we are saying goodbye to about 30% of our team.”
Bird has confirmed the layoffs and says it is providing four weeks of pay, three months of health coverage* and an extended time frame of 12 months to exercise their stock options. According to a source, Bird’s balance sheet is strong but it needed to reduce burn in order to extend its runway into 2021.
Bird’s layoffs come shortly after news broke that Lime is looking for a funding round that would cut its valuation from $2.4 billion to $400 million.
Last week Bird and Lime suspended their respective services in response to the pandemic.
Bird is not the only startup forced to have layoffs amid the crisis. As The Information reported earlier this week, layoffs are accelerating across Silicon Valley. Meanwhile, Lime is reportedly considering laying off up to 70 people in the San Francisco Bay Area.
Here’s the full memo VanderZanden sent this morning:
We’ve watched the COVID-19 pandemic radically and quickly transform our lives, the world, and our business in less than a month. This once in a decade black swan event presents one of the greatest challenges in history because of the viral impact it has not just on our health, but also on our lives—our families, friends, communities, finances, work, emotions—the list goes on.
The unprecedented COVID-19 crisis has forced our leadership team and the board of directors to make many extremely difficult and painful decisions relating to some of your teammates. As you know, we’ve had to pause many markets around the world and drastically cut spending. Due to the financial and operational impact of the ongoing COVID-19 crisis, we are saying goodbye to about 30% of our team.
In business, I feel like every challenge is surmountable with the right team. And I believe Bird has been building the right team these past few years. Until today, there wasn’t a problem we couldn’t solve together. That’s what makes this such a painful situation. To say goodbye to some of the most incredible, intelligent, scrappy, funny, loving, dedicated members of our Bird Family for reasons totally outside our control, hurts deeply.
I recognize and sympathize that this situation adds to an already difficult time. As you know, we strive to be community-focused at Bird—we always try to care deeply about the people we serve. The impacted individuals are an important part of this community and I hope that our commitment to caring and supporting them during this transition by providing severance pay, extended health insurance, and an extended window to exercise options makes a positive impact during this crisis.
We looked at many different options and scenarios and took as many preventive measures as possible to reduce the impact of the virus. Given the unknown timeline and current economic situation, we were forced to cut back in this way to elongate the trajectory of Bird and our mission. As you know, we just raised hundreds of millions from investors, but given all the uncertainty, we needed to ensure a cash runway to last through the end of 2021.
Moving forward, together
As we all know: yes, the world has changed and continues to change. This will be a difficult season, but we continue to work around the clock to move us forward as a team. As mentioned last week, we’re aggressively shoring up resources and protecting our existing assets. We’ve curbed all spending company-wide that is not directly related to helping us weather this storm together. We appreciate all your help identifying unnecessary spend during this down time.
History also tells us something important: micromobility, especially scooters, will very likely have an important role to play as communities begin to get moving again in the wake of the COVID-19 pandemic.
This is not the first time that a public health crisis has had a direct impact on the micromobility industry. When the SARS outbreak was sweeping through China, e-bike sales surged as riders looked for more personalized alternatives to public transit.
History suggests that people will demand a large scale mobility option that still allows for personal distancing. And Bird will be there, working hand in hand with cities to help communities heal, and help riders regain mobility, in the wake of the most serious global pandemic in recent memory.
I just want to give a heartfelt thank you to everyone who has rallied to keep up with such a rapidly changing situation. We’ll try to keep everyone informed as it relates to changing priorities and business impact. We’ve had successes that allow businesses to persevere in times of uncertainty and, with your trust, patience and determination, we will overcome the challenges we face today as well.
Lean on each other. Over communicate. Support each other. Reach out to your teammates and managers to understand what you can do to keep us moving forward.
*An earlier version of this story said three weeks of health insurance instead of three months. We apologize for the error.
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As part of its response to the public health emergency triggered by the COVID-19 pandemic, the European Commission has been leaning on Europe’s telcos to share aggregate location data on their users.
“The Commission kick-started a discussion with mobile phone operators about the provision of aggregated and anonymised mobile phone location data,” it said today.
“The idea is to analyse mobility patterns including the impact of confinement measures on the intensity of contacts, and hence the risks of contamination. This would be an important — and proportionate — input for tools that are modelling the spread of the virus, and would also allow to assess the current measures adopted to contain the pandemic.”
“We want to work with one operator per Member State to have a representative sample,” it added. “Having one operator per Member State also means the aggregated and anonymised data could not be used to track individual citizens, that is also not at all the intention. Simply because not all have the same operator.
“The data will only be kept as long as the crisis is ongoing. We will of course ensure the respect of the ePrivacy Directive and the GDPR.”
Earlier this week Politico reported that commissioner Thierry Breton held a conference with carriers, including Deutsche Telekom and Orange, asking for them to share data to help predict the spread of the novel coronavirus.
Europe has become a secondary hub for the disease, with high rates of infection in countries including Italy and Spain — where there have been thousands of deaths apiece.
The European Union’s executive is understandably keen to bolster national efforts to combat the virus. Although, it’s less clear exactly how aggregated mobile location data can help — especially as more EU citizens are confined to their homes under national quarantine orders. (While police patrols and CCTV offer an existing means of confirming whether or not people are generally moving around.)
Nonetheless, EU telcos have already been sharing aggregate data with national governments.
Orange in France is sharing “aggregated and anonymized” mobile phone geolocation data with Inserm, a local health-focused research institute — to enable them to “better anticipate and better manage the spread of the epidemic,” as a spokeswoman put it.
“The idea is simply to identify where the populations are concentrated and how they move before and after the confinement in order to be able to verify that the emergency services and the health system are as well armed as possible, where necessary,” she added. “For instance, at the time of confinement, more than 1 million people left the Paris region and at the same time the population of Ile de Ré increased by 30%.
“Other uses of this data are possible and we are currently in discussions with the State on all of these points. But, it must be clear, we are extremely vigilant with regards to concerns and respect for privacy. Moreover, we are in contact with the CNIL [France’s data protection watchdog]… to verify that all of these points are addressed.”
Germany’s Deutsche Telekom is also providing to national health authorities what a spokesperson dubbed “anonymized swarm data” to combat the corona virus.
“European mobile operators are also to make such anonymized mass data available to the EU Commission at its request,” the spokesperson told us. “In fact, we will first provide the EU Commission with a description of data we have sent to German health authorities.”
It’s not entirely clear whether the Commission’s intention is to pool data from such existing local efforts — or whether it’s asking EU carriers for a different, universal data-set to be shared with it during the COVID-19 emergency.
When we asked about this it did not provide an answer. Although we understand discussions are ongoing with operators — and that it’s the Commission’s aim to work with one operator per Member State.
The Commission has said the metadata will be used for modelling the spread of the virus and for looking at mobility patterns to analyze and assess the impact of quarantine measures.
A spokesman emphasized that individual-level tracking of EU citizens is not on the cards.
“The Commission is in discussions with mobile operators’ associations about the provision of aggregated and anonymised mobile phone location data,” the spokesman for Breton told us.
“These data permit to analyse mobility patterns including the impact of confinement measures on the intensity of contacts and hence the risks of contamination. They are therefore an important and proportionate tool to feed modelling tools for the spread of the virus and also assess the current measures adopted to contain the Coronavrius pandemic are effective.”
“These data do not enable tracking of individual users,” he added. “The Commission is in close contact with the European Data Protection Supervisor (EDPS) to ensure the respect of the ePrivacy Directive and the GDPR.”
At this point there’s no set date for the system to be up and running — although we understand the aim is to get data flowing asap. The intention is also to use data sets that go back to the start of the epidemic, with data-sharing ongoing until the pandemic is over — at which point we’re told the data will be deleted.
Breton hasn’t had to lean very hard on EU telcos to share data for a crisis cause.
Earlier this week Mats Granryd, director general of operator association the GSMA, tweeted that its members are “committed to working with the European Commission, national authorities and international groups to use data in the fight against COVID-19 crisis.”
Although, he added an important qualifier: “while complying with European privacy standards.”
The @GSMA and our members are committed to working with the @EU_Commission, national authorities and international groups to use data in the fight against COVID-19 crisis, while complying with European privacy standards. https://t.co/f1hBYT5Lqx
— Mats Granryd (@MatsGranryd) March 24, 2020
Europe’s data protection framework means there are limits on how people’s personal data can be used — even during a public health emergency. And while the legal frameworks do quite rightly bake in flexibility for a pressing public purpose, like the COVID-19 pandemic, it does not mean individuals’ privacy rights automatically go out the window.
Individual tracking of mobile users for contact tracing — such as Israel’s government is doing — is unimaginable at the pan-EU level. Certainly unless the regional situation deteriorates drastically.
One privacy lawyer we spoke to last week suggested such a level of tracking and monitoring across Europe would be akin to a “last resort.” Though individual EU countries are choosing to respond differently to the crisis — such as, for example, Poland giving quarantined people a choice between regular police check ups or uploading geotagged selfies to prove they’re not breaking lockdown.
While former EU Member the U.K. has reportedly chosen to invite in the controversial U.S. surveillance-as-a-service tech firm Palantir to carry out resource tracking for its National Health Service during the coronavirus crisis.
Under pan-EU law (which the U.K. remains subject to, until the end of the Brexit transition period), the rule of thumb is that extraordinary data-sharing — such as the Commission asking telcos to share user location data during a pandemic — must be “temporary, necessary and proportionate,” as digital rights group Privacy International recently noted.
This explains why Breton’s request is for “anonymous and aggregated” location data. And why, in background comments to reporters, the claim is that any shared data sets will be deleted at the end of the pandemic.
Not every EU lawmaker appears entirely aware of all the legal limits, however.
Today the bloc’s lead privacy regulator, data protection supervisor (EDPS) Wojciech Wiewiórowski, could be seen tweeting cautionary advice at one former commissioner, Andrus Ansip (now an MEP) — after the latter publicly eyed up a Bluetooth-powered contacts tracing app deployed in Singapore.
“Please be cautious comparing Singapore examples with European situation. Remember Singapore has a very specific legal regime on identification of device holder,” wrote Wiewiórowski.
So it remains to be seen whether pressure will mount for more privacy-intrusive surveillance of EU citizens if regional rates of infection continue to grow.
Dear Mr. Commissioner, please be cautious comparing Singapoore examples with European situation. Remember Singapore has a very specific legal regime on identification of device holder.
— Wojtek Wiewiorowski (@W_Wiewiorowski) March 27, 2020
As we reported earlier this week, governments or EU institutions seeking to make use of mobile phone data to help with the response to the coronavirus must comply with the EU’s ePrivacy Directive — which covers the processing of mobile location data.
The ePrivacy Directive allows for Member States to restrict the scope of the rights and obligations related to location metadata privacy, and retain such data for a limited time — when such restriction constitutes “a necessary, appropriate and proportionate measure within a democratic society to safeguard national security (i.e. State security), defence, public security, and the prevention, investigation, detection and prosecution of criminal offences or of unauthorised use of the electronic communication system” — and a pandemic seems a clear example of a public security issue.
Thing is, the ePrivacy Directive is an old framework. The previous college of commissioners had intended to replace it alongside an update to the EU’s broader personal data protection framework — the General Data Protection Regulation (GDPR) — but failed to reach agreement.
This means there’s some potential mismatch. For example the ePrivacy Directive does not include the same level of transparency requirements as the GDPR.
Perhaps understandably, then, since news of the Commission’s call for carrier metadata emerged concerns have been raised about the scope and limits of the data sharing. Earlier this week, for example, MEP Sophie in’t Veld wrote to Breton asking for more information on the data grab — including querying exactly how the data will be anonymized.
Fighting the #coronavirus with technology: sure! But always with protection of our privacy. Read my letter to @ThierryBreton
about @EU_Commission’s plans to call on telecoms to hand over data from people’s mobile phones in order to track&trace how the virus is spreading. pic.twitter.com/55kZo9bMhN
— Sophie in ‘t Veld (@SophieintVeld) March 25, 2020
The EDPS confirmed to us that the Commission consulted it on the proposed use of telco metadata.
A spokesman for the regulator pointed to a letter sent by Wiewiórowski to the Commission, following the latter’s request for guidance on monitoring the “spread” of COVID-19.
In the letter the EDPS impresses on the Commission the importance of “effective” data anonymization — which means it’s in effect saying a technique that does genuinely block re-identification of the data must be used. (There are plenty of examples of “anonymized” data being shown by researchers to be trivially easy to reidentify; while location data typically includes many easily identified individual tells, such as a home address and workplace address.)
“Effective anonymisation requires more than simply removing obvious identifiers such as phone numbers and IMEI numbers,” warns the EDPS, adding too that aggregated data “can provide an additional safeguard.”
We also asked the Commission for more details on how the data will be anonymized and the level of aggregation that would be used — but it told us it could not provide further information at this stage.
So far we understand that the anonymization and aggregation process will be undertaken before data is transferred by operators to a Commission science and research advisory body, called the Joint Research Centre (JRC) — which will perform the data analytics and modelling.
The results — in the form of predictions of propagation and so on — will then be shared by the Commission with EU Member States authorities. The datasets feeding the models will be stored on secure JRC servers.
The EDPS is equally clear on the Commission’s commitments vis-a-vis securing the data.
“Information security obligations under Commission Decision 2017/464 still apply [to anonymized data], as do confidentiality obligations under the Staff Regulations for any Commission staff processing the information. Should the Commission rely on third parties to process the information, these third parties have to apply equivalent security measures and be bound by strict confidentiality obligations and prohibitions on further use as well,” writes Wiewiórowski.
“I would also like to stress the importance of applying adequate measures to ensure the secure transmission of data from the telecom providers. It would also be preferable to limit access to the data to authorised experts in spatial epidemiology, data protection and data science.”
Data retention — or rather the need for prompt destruction of data sets after the emergency is over — is another key piece of the guidance.
“I also welcome that the data obtained from mobile operators would be deleted as soon as the current emergency comes to an end,” writes Wiewiórowski. “It should be also clear that these special services are deployed because of this specific crisis and are of temporary character. The EDPS often stresses that such developments usually do not contain the possibility to step back when the emergency is gone. I would like to stress that such solution should be still recognised as extraordinary.”
teresting to note the EDPS is very clear on “full transparency” also being a requirement, both of purpose and “procedure.” So we should expect more details to be released about how the data is being effectively rendered unidentifiable.
“Allow me to recall the importance of full transparency to the public on the purpose and procedure of the measures to be enacted,” writes Wiewiórowski. “I would also encourage you to keep your Data Protection Officer involved throughout the entire process to provide assurance that the data processed had indeed been effectively anonymised.”
The EDPS has also requested to see a copy of the data model. At the time of writing the spokesman told us it’s still waiting to receive that.
“The Commission should clearly define the dataset it wants to obtain and ensure transparency towards the public, to avoid any possible misunderstandings,” Wiewiórowski added in the letter.
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Described by Sequoia Capital as the black swan event of 2020, the long-term economic fallout of the COVID-19 pandemic on startups is still to be seen. However, one effect which is sure to disrupt the MO of many early-stage startups is the cancellation of events and conferences.
According to Forbes, more than 35.3 million people who were planning to attend an event have been forced to change their plans in recent months. And while some might lament being forced to leave their Metallica T-shirts and 2020 Summer Olympics flags in the cupboard, many startup founders are biting their nails at the prospect of lost leads and connections from events and conferences.
The silver lining: Forcing founders to wean themselves off conferences and events as a “go-to” business development tactic might not be a bad thing in the long run.
Based on my experience, many early-stage startups waste lots of time and resources doing the rounds at events without clear aims, using up lots of the founder’s time, without driving much business value. At an early stage in a startup’s journey, every tactic used needs to drive real ROI and ultimately be driving new business opportunities.
So let’s look at why missing out on events might not be the end of the world, and how startups can focus their time, energy and resources on more scalable and consistent lead-gen activities.
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