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Deep tech VC fund The Engine raises $230M for its second fund from MIT and new backer Harvard

Deep tech. Hard tech. Or, as The Engine dubs it, Tough Tech.

Venture investing today is essentially identical to what happens on Wall Street, focused on data rooms, spreadsheets, SaaS churn models and cohort analysis. Yet, the history of venture capital firms is heavily interwoven with universities and their research. Some of the most famous VC funds like Kleiner Perkins got their start funding compelling research projects out of laboratories and financing their commercialization toward scale.

Technical risk is something many VCs like to avoid, but The Engine has built an entire brand and thesis around it. Centered around Kendall Square and the broader MIT ecosystem, The Engine debuted a couple of years ago with a focus on “tough tech” problems that are perhaps a touch too early for other VCs. That’s led to investments in companies like Boston Metal, which builds environmentally-friendly steel alloys, WoHo, which is rethinking modular building construction that we profiled last week, and Commonwealth Fusion Systems, which is developing fusion power.

Indeed, the firm’s portfolio page has to be one of the most interesting in the industry today.

The good news is that the firm’s ambitious funding strategy looks set to continue. It announced this morning that it has raised $230 million toward the firm’s second fund, which on top of the firm’s first fund brings it to a total of $435 million under management. In a press statement, the firm said that it has funded 27 portfolio companies out of its first fund. While MIT continues to be the anchor LP, Harvard joined for Fund 2, creating a cross-Cambridge, MA venture platform.

Katie Rae remains CEO and managing partner of the fund, and her team has expanded over the past few years as the firm has scaled up.

The Engine’s Reed Sturtevant, Katie Rae, and Ann DeWitt prepare for the Tough Tech Summit today. Photo via The Engine.

One interesting point that we haven’t noted previously is that MIT is building The Engine a 200,000 square foot building near its campus that will offer massive space for startups and portfolio companies to start and grow over time. That building is expected to open in 2022, hopefully when this whole pandemic situation allows for in-office collaboration again.

Boston has become something of a hub for deeper technical projects. Local startup Desktop Metal, which builds 3D printers that can print metal, is going through a SPAC process that values the company at roughly $2.5 billion. With this latest news from The Engine, it seems clear that Boston’s tough tech ecosystem will continue to have a pipeline of interesting and compelling companies.

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Dropbox begins shift to high-efficiency Western Digital Shingled Magnetic Recording disks

Last year, Dropbox talked about making a shift to Shingled Magnetic Recording, or SMR disks for short, because of the efficiency they can give a high-volume storage platform like theirs. Today, Western Digital announced that Dropbox was one of the first companies to qualify their Ultrastar® DC HC650 20TB host-managed SMR hard disks.

Dropbox’s modern infrastructure story goes back to 2017, when it decided to shift most of its business from being hosted on AWS to building their own infrastructure. As they moved through the process of making that transition in the following years, they were looking for new storage technology ideas to help drive down the cost of running their own massive storage system.

As principal engineer James Cowling told TechCrunch last year, one of the ideas that emerged was using SMR:

What emerged was SMR, which has high storage density and a lower price point. Moving to SMR gave Dropbox the ability to do more with less, increasing efficiency and lowering overall costs — an essential step for a company trying to do this on its own. “It required expertise obviously, but it was also exciting to bring a lot of efficiencies in terms of cost and storage efficiency, while pulling down boundaries between software and hardware,” Cowling said.

As it turns out, Dropbox VP of engineering Andrew Fong says that the company has been working with Western Digital for a number of years and the new SMR technology is the latest step in that partnership.

Western Digital says these drives deliver this cost savings through increased storage density and lower power requirements. “When considering exabyte-scale needs, and associated capital and operating cost of the data center, the long-term value in terms of lower cost-per-TB, higher density, low power and high reliability can help benefit the bottom line,” the company said in a statement.

Time will tell if these disks deliver as promised, but they certainly show a lot of potential for a high-volume user like Dropbox.

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OnePlus’s 8T handset brings faster charging and a 120Hz display for $749 

OnePlus continues its twice-yearly smartphone cycle with today’s arrival of the 8T. The latest device isn’t a huge upgrade over April’s OnePlus 8, but continues the company’s longstanding tradition of offering some of the most solid Android handsets at a reasonable price point. The cost has edged up a bit in recent years, but $749 is still pretty good for what the 8T offers.

The big updates this time out are the 120Hz refresh rate for its 6.55-inch display and super-fast charging via the Warp Charge 65. That should get the 4,450 mAh of battery capacity up to a full day’s charge in 15 minutes, with a full charge taking a little less than 40 minutes.

There are an abundance of cameras here — four in total. That includes a 48-megapixel main (with built in optical image stabilization), 16-megapixel ultra-wide angle and, more surprisingly, a macro and monochrome lens. The handset joins the even more affordable Nord, which is set to arrive in the U.S. in the near future at a sub-$500 price point.

OnePlus has been undergoing some corporate changes in recent weeks, as well. Co-founder Carl Pei recently announced he will be leaving the company. “These past years, OnePlus has been my singular focus, and everything else has had to take a backseat,” he told TechCrunch. “I’m looking forward to taking some time off to decompress and catch up with my family and friends,” he wrote. “And then follow my heart on to what’s next.”

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Analogue takes on the TurboGrafx-16 with its Duo retro console

Analogue’s beautiful, functional retro gaming consoles provide a sort of “archival quality” alternative to the cheap mini-consoles proliferating these days. The latest system to be resurrected by the company is the ill-fated, but still well-thought-of TurboGrafx-16 or PC Engine.

The Duo, as Analogue’s device is called, is named after a later version of the TurboGrafx-16 that included its expensive CD-ROM add-on — and indeed the new Duo supports both game cards and CDs, provided they have survived all this time without getting scratched.

Like the rest of Analogue’s consoles, and unlike the popular SNES and NES Classic Editions from Nintendo (and indeed the new TurboGrafx-16 Mini), the Duo does not use emulation in any way. Instead, it’s a painstaking recreation of the original hardware, with tweaks to introduce modern conveniences like high-definition video, wireless controllers and improvements to reliability, and so on.

Image Credits: Analogue

As a bonus, it’s all done in FPGA, which implies that this hardware is truly one of a kind in service of remaking the console accurately. Games should play exactly as they would have on the original hardware, down to the annoying glitches and slowdowns of that era of consoles.

And what games! Well, actually, few of them ever reached the status of their competitors on Nintendo and Sega consoles here in the U.S., where the TurboGrafx-16 sold poorly. But titles like Bonk’s Adventure, Bomberman ’93, Ninja Spirit, Splatterhouse and Devil’s Crush should be played more widely. Shmup fans like myself were spoiled with originals and arcade ports like R-Type and Blazing Lazers. The Ys series also got its start on the PC Engine (if you could afford the CD attachment). Here’s a good retrospective.

I wouldn’t mind having an HDMI port on the back of my SNES. Oh, Analogue makes one…

Analogue’s consoles are made for collectors who would prefer not to have to baby their original hardware, or want to upscale the signal and play wirelessly without too much fuss. I still have my original SNES, but 240p just doesn’t look as crisp as it did on a 15-inch CRT in the ’90s.

At $199, it’s more expensive than finding one at a garage sale, but good luck with that. The original and its CD add-on cost a fortune, so if you think about it from that perspective, this is a real bargain. Analogue says limited quantities are available, and will be shipping in 2021.

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Google Pixel 5 review: Keeping it simple

I’m going to be totally honest with you. I don’t really understand Google’s phone strategy right now. And for what it’s worth, I’m not really sure Google does either. I wrote about it here, but I’ll save you from having to read an additional 800 words on top of all these. The short version is that Google has three phones on the market, and there isn’t a whole heck of a lot of distinction between them.

The Pixel is a portrait of a hardware division in transition. That applies to a number of aspects, from strategy to the fact that the company recently saw a minor executive exodus. It’s pretty clear the future of Google’s mobile hardware division is going to look quite different from its present — but 2020’s three phones are most likely a holdover from the old guard.

What you’re looking at here is the Pixel 5. It’s Google’s flagship. A device that sports — among other things — more or less the same mid-range Qualcomm processor as the 4a announced earlier this year. It distinguishes itself from that budget handset, however, with the inclusion of 5G. But then here comes the 4a 5G to further muddy the waters.

There are some key distinctions that separate the 5 and 4a 5G, which were announced at the same event. The 5’s got a more solid body, crafted from 100% recycled aluminum to the cheaper unit’s polycarbonate. It also has waterproofing and reverse wireless charging, a fun feature we’ve seen on Samsung devices for a few generations now. Beyond that, however, we run into something that’s been a defining issue since the line’s inception. If you choose not to use hardware to define your devices, it becomes difficult to differentiate your devices’ hardware.

Image Credits: Brian Heater

Since the very beginning of the Pixel line, the company has insisted that it will rely on software advances to push the products forward. It’s a nice sentiment after years of feature arms races between the likes of Apple and Samsung. But that means when it comes time to introduce new devices, the results can be fairly lackluster. That certainly applies to the Pixel 5.

From a hardware perspective, it’s not a particularly exciting phone. That’s probably fine for many. Smartphones have, after all, become more commodity than luxury item, and plenty of users are simply looking for one that will just get the job done. That said, Google’s got some pretty stiff competition at the Pixel 5’s price point — and there are plenty of Android devices that can do even more.

There are certainly some upgrades in addition to the above worth pointing out, however. Fittingly, the biggest and most important of all is probably the least exciting. The Pixel 4 was actually a pretty solid device hampered by one really big issue: an abysmal battery life. The 2,800mAh capacity was a pretty massive millstone around the device’s neck. That, thankfully, has been addressed here in a big way.

Google’s bumped things up to 4,080mAh. That’s also a pretty sizable bump over the 4a and 4a 5G, which sport 3,885mAh and 2,130mAh, respectively. That extra life is extra important, given the addition of both Battery Share and 5G. For the sake of disclosure, I should mention that I still live in an area with basically no 5G (three cheers for working from home), so your mileage will vary based on coverage. But using LTE, I was able to get about a day and a half of use out of the handset, besting the stated “all-day battery).

This is helped along by a (relatively) compact display. Gone are the days of the XL (though, confusingly, the 4a 5G does have a larger screen with a bit lower pixel density). The flagship is only available in a six-inch, 2,340 x 1,080 size. It’s larger than the Pixel 4’s 5.7 inches, but at a lower pixel density (432 versus 444 ppl). The 90Hz refresh rate remains. Compared to all of the phones I’ve been testing lately, the Pixel 5 feels downright compact. It’s a refreshing change to be able to use the device with one hand.

Image Credits: Brian Heater

The camera is probably the aspect of the handset where the opposing hardware-first and software-first approaches are the most at conflict with one another. Google was fairly convinced it could do everything it wanted with a single lens early on, but eventually begrudgingly gave in to a two-camera setup. The hardware is pretty similar to last year’s model, but the 16-megapixel 2x optical telephoto has been replaced by a 16-megapixel ultra-wide. Whether that represent progress is largely up to your own personal preference. Frankly, I’d prefer a little more non-distorted zooming.

Google, of course, is building on a solid foundation. I really loved the Pixel 4’s photos. The things Google’s imaging team has been able to do with relative hardware constraints is really impressive, and while you’re lacking the scope of a premium Samsung device or high-end iPhone, casual photo snappers are going to be really happy with the shots they get on the Pixel 5.

Night Sight has been improved and now turns on when the phone’s light sensor detects a dark scene. My morning walks have gotten decidedly darker in recent weeks as the season has changed, and the phone automatically enters the mode for those pre-dawn shots (COVID-19 has made me an early riser, I don’t know what to tell you). The feature has also been added to portrait mode for better focused shots.

The Pixel’s Portrait Mode remains one of the favorites — though it’s still imperfect, running into issues with things like hair or complex geometries. It really doesn’t know what to do with a fence much of the time, for instance. The good news is that Google’s packed a lot of editing options into the software here — particularly for Portrait Mode.

You can really go crazy in terms of bokeh levels and placement and portrait lighting, a relatively subtle effect that lends the appearance of changing a light source. Changing the effects can sometimes be a bit laggy, likely owing to the lower-end processing power. All said, it’s a good and well-rounded photo experience, but as usual, I would really love to see what Google’s imaging team would be able to do if the company ever gives it a some real high-end photography hardware to play around with. Wishful thinking for whatever the Pixel 6 becomes, I suppose.

In the end, the two biggest reasons to recommend upgrading from the Pixel 4 are 5G and bigger battery. The latter is certainly a big selling point this time out. The former really depends on what coverage is like in your area. The 5G has improved quite a bit of late, but there are still swaths of the U.S. — and the world — that will be defaulting to LTE on this device. Also note that the $200 cheaper 4a 5G also offers improvements in both respects over last year’s model.

Still, $700 is a pretty reasonable price point for a well-rounded — if unexciting — phone like the Pixel 5. And Google’s got other things working in its favor, as well — pure Android and the promise of guaranteed updates. If you’re looking for something with a bit more flash, however, there are plenty of options in the Android world.

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What the iPhone 12 tells us about the state of the smartphone industry in 2020

The smartphone industry was in transition well before COVID-19 was a blip on anyone’s radar. More than 13 years after the launch of the original iPhone, these products have long since transitioned from luxury items to commodities, losing some of their luster in the process. The past several years have seen slower upgrade cycles as consumers grew reluctant to pay $1,000 or more for new devices.

And while the iPhone 12 was no doubt in development long before the current pandemic, the pandemic’s global shutdown has only exacerbated many existing problems for smartphone makers. The clearest representation of Apple’s reaction is in the sheer number of iPhones announced at today’s “Hi Speed” event. Long gone are the days when a company could rest on a single flagship or two.

Today’s event brought a grand total of four new iPhone models, ranging in price from $699 to $1,099: the 12, 12 mini, 12 Pro and 12 Pro Max. As with the Apple Watch, the company is keeping last year’s iPhone 11 around and has cut the price to $599. That puts the older model in the high-mid-range for Android devices, but represents a far cheaper entry point than we’re accustomed to for Apple phones.

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Huawei plans to divest budget phone unit Honor: reports

Besieged by U.S. tech sanctions, Huawei may be looking to shake up its smartphone business that has taken a hit after losing core semiconductor parts and software services.

The Chinese giant is in talks with Digital China Group to sell parts of Honor, its low-end, budget phone unit, for 15-25 billion yuan ($2.2-3.7 billion), Reuters reported on Wednesday. 

A Hong Kong-listed firm, Digital China is a spin-off from the Legend Group (later Lenovo) and a major distributor and close ally of Huawei.

Smartphone sales and other consumer-facing electronics today make up the bulk of revenue for Huawei, which began by selling telecommunications gear in the late 1980s.

The news came days after a Chinese tech news blogger claimed Huawei is planning to sell Honor. Respected Apple analyst Ming-Chi Kuo also noted in a report that it’s in Huawei’s benefit to divest Honor so the business could be free of trade restrictions and Huawei gets to focus on high-end phones under its namesake brand.

Sources close to Huawei denied the planned sale of Honor, Tencent News reported last week. A Huawei representative contacted by TechCrunch declined to comment.

Huawei rolled out independent brand Honor in 2011 as Xiaomi’s low-budget phones were taking China by storm. Like Xiaomi, Honor started out by focusing on online sales and young consumers. BBK Group’s Oppo, Vivo and Realme have since made significant inroads into the budget phone market.

Honor’s brand, research and development capabilities and related supply chain management business could be for sale, sources told Reuters. The tech news blogger said Honor will operate and procure independently after the sale.

Other bidders include Xiaomi and TCL, according to Reuters, as well as Gree and BYD, according to the tech news blogger.

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Daily Crunch: Apple introduces the iPhone 12

Apple embraces 5G, Facebook Messenger gets better integrated with Instagram and Kahoot raises $215 million. This is your Daily Crunch for October 13, 2020.

The big story: Apple introduces the iPhone 12

Apple’s big event today kicked off with the announcement of the HomePod Mini, but the real focus was on the iPhone — specifically, the iPhone 12.

Pricing for the new iPhone starts at $799. New features include 5G, a magnetic adapter for various accessories (including wireless chargers) and a more durable Corning glass display.

There are four models, so if you’re trying to decide which one you want, we’ve even created a handy chart to keep them all straight.

The tech giants

Alphabet’s latest moonshot is a field-roving, plant-inspecting robo-buggy — Announced with little fanfare in a blog post and site, the Mineral project is still very much in the experimental phase.

Messenger’s latest update brings new features, cross-app communication with Instagram – The changes are a part of Facebook’s overhauled messaging platform, announced in late September, which introduced the ability for Instagram users to communicate with people on Facebook.

Startups, funding and venture capital

Kahoot picks up $215M from SoftBank for its user-generated, gamified e-learning platform — After announcing a modest $28 million raise earlier this year, the user-generated gamified e-learning platform revealed a much bigger round today.

Astroscale raises $51M in Series E funding to fuel its orbital sustainability ambitions — The Japan-based company has been focused on delivering new solutions for orbital end-of-life.

Caliber, with $2.2M in seed funding, launches a fitness coaching platform — The company says it brings on about five of every 100 applications for coaches on the platform, accepting only the very best trainers.

Advice and analysis from Extra Crunch

Is the Twilio-Segment deal expensive? — A quick look at the deal’s historical analogs and what we can tell from the numbers.

Should you replace your developer portal with a hybrid integration platform? — Changing your integration approach can reduce time to market and boost revenue.

(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Walt Disney announces reorganization to focus on streaming — Disney’s media businesses, ads and distribution and Disney+ will now operate under the same business unit.

Original Content podcast: Netflix’s ‘Enola Holmes’ is thoroughly mediocre — I did not enjoy this movie.

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 3pm Pacific, you can subscribe here.

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Apple’s iPhone 12, 12 mini, 12 Pro and 12 Pro Max: what’s the difference?

Gone are the days a company like Apple could simply roll out a single flagship handset or two. Consumer demands have evolved quite a bit in the more than 13 years since the company released its first smartphone, and its offerings have had to evolve with it. That means now, more than ever, offering a broad range of choice in terms of feature set, size and price.

Apple actually announced four phones at today’s event: the iPhone 12, 12 mini, 12 Pro and 12 Pro Max. Add to that the fact that the company is keeping the 11 around at a lower price point, and that leaves iOS devotees with more options than ever when it comes to purchasing a new handset, with starting prices ranging from $599 to $1,099. And, of course, configurations go up from there.

All of the new devices announced today share some key common features: 5G connectivity, the new magnetic MagSafe connector, OLED displays and the A14 chip, for starters. They also get the new iPad Pro-style design, complete with straight edges that allow for the placement of additional antennas for the next-gen wireless connectivity. From there, however, things get more complicated. There’s a range here in size, cameras and capacity for starters.

Here’s a handy chart to keep it all straight:

chart comparing iPhone 12 models

[click to enlarge]

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