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This week on Extra Crunch, I am exploring innovations in inclusive housing, looking at how 200+ companies are creating more access and affordability. Yesterday, I focused on startups trying to lower the costs of housing, from property acquisition to management and operations.
Today, I want to focus on innovations that improve housing inclusion more generally, such as efforts to pair housing with transit, small business creation, and mental rehabilitation. These include social impact-focused interventions, interventions that increase income and mobility, and ecosystem-builders in housing innovation.
Nonprofits and social enterprises lead many of these innovations. Yet because these areas are perceived to be not as lucrative, fewer technologists and other professionals have entered them. New business models and technologies have the opportunity to scale many of these alternative institutions — and create tremendous social value. Social impact is increasingly important to millennials, with brands like Patagonia having created loyal fan bases through purpose-driven leadership.
While each of these sections could be their own market map, this overall market map serves as an initial guide to each of these spaces.

These innovations address:
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There’s a seemingly insatiable demand for Theranos content. John Carreyrou’s best-selling book, “Bad Blood,” has already inspired an HBO documentary, The Inventor; an ABC podcast called The Dropout, a prestige limited series starring SNL’s Kate McKinnon, was just announced; and Jennifer Lawrence is reportedly going to star in the feature film version of this tawdry “true crime meets tech” tale. That’s before getting started on the various and sundry cover stories and think pieces about her fraud.
I think it’s fair to say the Theranos story has been sufficiently well-documented, and I’m worried that this negative perception may be reinforced now that uBiome founder Jessica Richman has been placed on administrative leave. While it’s hard to pass on a chance to stoke startup schadenfreude, perhaps we could focus less on these rare, unrepresentative and dispiriting examples? Instead, Hollywood could put the spotlight on women who pioneered the bleeding edge of tech and actually produced billion-dollar successes. Here are a few candidates ready for their close-ups:
Judith Faulkner, founder and chief executive officer, Epic Systems
In the late 1970s, the picture of a working woman in Wisconsin was likely Laverne or Shirley. Little did anyone know that in the basement of a Victorian manse in Madison, the future of healthcare was being coded by Judith Faulkner, the founder and CEO of what would become Epic Systems. Epic is arguably the most impactful startup in the history of health software, and Faulkner was building medical scheduling software before most people could even picture a PC. Her efforts established the Electronic Medical Records market as we know it and today. Her company manages records for more than 200 million people, employs nearly 10,000 and generates around $2.7 billion per year in revenue — not bad for a math graduate who never raised any venture capital.
One might argue that the origins of medical software are too tepid to make for exciting TV, but something tells me the kind of CEO who hires Disney alums to design her corporate campus and dresses up like a wizard to address her employees might make for a compelling subject.
SANTA BARBARA, CA – FEBRUARY 09: Lynda Weinman speaks onstage (Photo by Rebecca Sapp/Getty Images for SBIFF)
Lynda Weinman might have the most esoteric path to becoming a billion-dollar entrepreneur in history. After getting a humanities degree from Evergreen College, where she was classmates with “Simpsons” creator Matt Groenig, Lynda opened a pair of punk rock fashion boutiques on LA’s Sunset Strip.
After those folded in the early 1980s, she taught herself enough computer graphics to become a freelance animator on movies like “Bill & Ted’s Excellent Adventure,” which in turn led to her becoming a teacher at the prestigious Art Center College of Design. Her academic pedigree provided the launching pad to write an influential textbook; that, in turn, gave her the star power to strike out on her own as one of the first web celebrities.
Keep in mind; this dramatic arc only covers the time before she started the eponymous Lynda.com, and bootstrapped it to a $1.5 billion exit in edtech — an industry most VCs and entrepreneurs fear to tread. In terms of material for a memoir, Hannah Horvath has nothing on Lynda Weinman.
FRAMINGHAM, MA – MAY 30: Shira Goodman, former chief executive at Staples, poses for a portrait in Framingham, MA on May 30, 2017 (Photo by Suzanne Kreiter/The Boston Globe via Getty Images)
Shira Goodman has arguably done more for online shopping in the U.S. than anyone not named Bezos. She didn’t found Staples, but she did start and scale its “delivery business,” as she humbly calls it, to the point where it became the fourth largest e-commerce company in the U.S.
At a time when more nimble startups were disrupting big-box retailers, Shira did what few of her contemporaries could do — rapidly shifted a multi-billion-dollar legacy company in an ancient industry into the future, and eventually became CEO of the entire enterprise. She did this while also raising three children and supporting her husband when he decided to change careers and go to Rabbinical school. Sitcoms have been premised on less, and since two versions of “The Office” have captivated audiences, perhaps it’s time to provide the perspective from the CEO of Dunder-Mifflin HQ?
Helen Greiner, co-founder, iRobot
From C. A. Rotwang in “Metropolis” to Tony Stark in the Marvel movies, there have been plenty of cinematic explorations of robot builders, but the story of iRobot co-founder Helen Greiner might be more interesting than anything yet committed to celluloid. As a recent grad from MIT, Greiner spent a substantial chunk of the 1990s applying her mechanical genius to everything from a mechatronic dinosaur for Disney to a store cleaning robot with the potential for mass destruction for SC Johnson.
Far from an ivory-tower academic, Grenier helped the government deploy search and rescue efforts at Ground Zero after 9/11 and cave-clearing ‘bots in Afghanistan, and the bomb-disposing Packbot she developed has saved the lives of thousands of service members. Grenier, at age 38, took her company public and made the Jetson’s vision of a robot housekeeper a reality in the form of the Roomba.
CAMBRIDGE, MA – MARCH 15: Kelsey Wirth, who has a grassroots organization called Mothers Out Front: Mobilizing For A Livable Climate (Photo by Essdras M Suarez/The Boston Globe via Getty Images)
While the original startup bros were inflating the tech bubble in the late 1990s, Kelsey Wirth was pioneering 3D printing, which at the time was as fantastical as anything Theranos promised. Wirth’s story as the co-founder of Align Technology is especially compelling in the way it shares some surface similarities with Holmes’ narrative. Prominent skeptics of Invisalign cast doubts on the company in its early days, noting that the startup’s PR had outstripped its clinical validation. Wirth had to solve seemingly intractable technical challenges, including scanning misaligned incisors, developing algorithms to overcome underbites, pioneering new manufacturing process, convincing the FDA to clear the product and then selling it across the country — armed only with an English lit degree and an MBA. Despite the long odds of curing crossbites with software, Wirth started what has become a publicly traded business that is currently worth more than 20 billion dollars.
Most of these founders faced setbacks, including external obstacles and those of their own making. There were layoffs, bad deals and few of these stories had perfectly happy endings. Still, while a contemporary startup can earn plaudits for simply repackaging CBD and pushing it on Facebook, these entrepreneurs demonstrated a level of ambition rarely seen among modern upstarts.
The sensational focus on Elizabeth Holmes’ misdeeds steal focus from a group of landmark female entrepreneurs and waste a tremendous opportunity to inspire the next generation with heroic tales instead of fables of fabrication. None of these accounts have the black and white morality of the Theranos debacle, but these founders cleared hurdles both scientific and social. They flipped the script and made history; surely Hollywood can find some drama in that.
Thanks to Parul Singh, Elizabeth Condon and Alyssa Rosenzweig for reviewing drafts of this post.
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As tech has grown, policy debates have become an important pastime. Today’s tech industry aspires to replace human drivers with self-driving cars, secretaries with AI assistants, permanent jobs with gigs — and as a result, the human impact of tech has become an everyday conversation.
No other idea is as emblematic of this as Universal Basic Income, a policy that would distribute a monthly sum to every adult regardless of their income or employment status.
The conversation is widespread. Mark Zuckerberg and Elon Musk have said that UBI may be desirable or necessary. Y-Combinator Research and Facebook co-founder Chris Hughes are running basic income studies. Tech-friendly presidential hopefuls Bernie Sanders and Andrew Yang support the issue.
But should the average tech entrepreneur or investor support UBI? The answer is not entirely clear.
The good news is that the tech industry is deeply familiar with risk, which is an important component of arguments for UBI. The bad news: risk isn’t the whole story, and both positive and negative evidence for the policy are currently thin.
Image via H. Armstrong Roberts/ClassicStock/Getty Images
Entrepreneurs understand the risk component of UBI because it’s the same risk they take in starting companies. Many entrepreneurs start with savings or seed funding that reduce their downside risk — and it’s not hard for them to imagine that others lack these resources. A UBI could solve the issue.
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Five years after Dropbox acquired their startup Zulip, Waseem Daher, Jeff Arnold and Jessica McKellar have gained traction for their third business together: Pilot.
Pilot helps startups and small businesses manage their back office. Chief executive officer Daher admits it may seem a little boring, but the market opportunity is undeniably huge. To tackle the market, Pilot is today announcing a $40 million Series B led by Index Ventures with participation from Stripe, the online payment processing system.
The round values Pilot, which has raised about $60 million to date, at $355 million.
“It’s a massive industry that has sucked in the past,” Daher told TechCrunch. “People want a really high-quality solution to the bookkeeping problem. The market really wants this to exist and we’ve assembled a world-class team that’s capable of knocking this out of the park.”
San Francisco-based Pilot launched in 2017, more than a decade after the three founders met in MIT’s student computing group. It’s not surprising they’ve garnered attention from venture capitalists, given that their first two companies resulted in notable acquisitions.
Pilot has taken on a massively overlooked but strategic segment — bookkeeping,” Index’s Mark Goldberg told TechCrunch via email. “While dry on the surface, the opportunity is enormous given that an estimated $60 billion is spent on bookkeeping and accounting in the U.S. alone. It’s a service industry that can finally be automated with technology and this is the perfect team to take this on — third-time founders with a perfect combo of financial acumen and engineering.”
The trio of founders’ first project, Linux upgrade software called Ksplice, sold to Oracle in 2011. Their next business, Zulip, exited to Dropbox before it even had the chance to publicly launch.
It was actually upon building Ksplice that Daher and team realized their dire need for tech-enabled bookkeeping solutions.
“We built something internally like this as a byproduct of just running [Ksplice],” Daher explained. “When Oracle was acquiring our company, we met with their finance people and we described this system to them and they were blown away.”
It took a few years for the team to refocus their efforts on streamlining back-office processes for startups, opting to build business chat software in Zulip first.
Pilot’s software integrates with other financial services products to bring the bookkeeping process into the 21st century. Its platform, for example, works seamlessly on top of QuickBooks so customers aren’t wasting precious time updating and managing the accounting application.
“It’s better than the slow, painful process of doing it yourself and it’s better than hiring a third-party bookkeeper,” Daher said. “If you care at all about having the work be high-quality, you have to have software do it. People aren’t good at these mechanical, repetitive, formula-driven tasks.”
Currently, Pilot handles bookkeeping for more than $100 million per month in financial transactions but hopes to use the infusion of venture funding to accelerate customer adoption. The company also plans to launch a tax prep offering that they say will make the tax prep experience “easy and seamless.”
“It’s our first foray into Pilot’s larger mission, which is taking care of running your companies entire back office so you can focus on your business,” Daher said.
As for whether the team will sell to another big acquirer, it’s unlikely.
“The opportunity for Pilot is so large and so substantive, I think it would be a mistake for this to be anything other than a large and enduring public company,” Daher said. “This is the company that we’re going to do this with.”
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Artificial intelligence applied to information security can engender images of a benevolent Skynet, sagely analyzing more data than imaginable and making decisions at lightspeed, saving organizations from devastating attacks. In such a world, humans are barely needed to run security programs, their jobs largely automated out of existence, relegating them to a role as the button-pusher on particularly critical changes proposed by the otherwise omnipotent AI.
Such a vision is still in the realm of science fiction. AI in information security is more like an eager, callow puppy attempting to learn new tricks – minus the disappointment written on their faces when they consistently fail. No one’s job is in danger of being replaced by security AI; if anything, a larger staff is required to ensure security AI stays firmly leashed.
Arguably, AI’s highest use case currently is to add futuristic sheen to traditional security tools, rebranding timeworn approaches as trailblazing sorcery that will revolutionize enterprise cybersecurity as we know it. The current hype cycle for AI appears to be the roaring, ferocious crest at the end of a decade that began with bubbly excitement around the promise of “big data” in information security.
But what lies beneath the marketing gloss and quixotic lust for an AI revolution in security? How did AL ascend to supplant the lustrous zest around machine learning (“ML”) that dominated headlines in recent years? Where is there true potential to enrich information security strategy for the better – and where is it simply an entrancing distraction from more useful goals? And, naturally, how will attackers plot to circumvent security AI to continue their nefarious schemes?
The year AI debuted as the “It Girl” in information security was 2017. The year prior, MIT completed their study showing “human-in-the-loop” AI out-performed AI and humans individually in attack detection. Likewise, DARPA conducted the Cyber Grand Challenge, a battle testing AI systems’ offensive and defensive capabilities. Until this point, security AI was imprisoned in the contrived halls of academia and government. Yet, the history of two vendors exhibits how enthusiasm surrounding security AI was driven more by growth marketing than user needs.
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The days when you could simply grow a basil plant from a seed by placing it on your windowsill and watering it regularly are gone — there’s no point now that machine learning-optimized hydroponic “cyber-agriculture” has produced a superior plant with more robust flavors. The future of pesto is here.
This research didn’t come out of a desire to improve sauces, however. It’s a study from MIT’s Media Lab and the University of Texas at Austin aimed at understanding how to both improve and automate farming.
In the study, published today in PLOS ONE, the question being asked was whether a growing environment could find and execute a growing strategy that resulted in a given goal — in this case, basil with stronger flavors.
Such a task is one with numerous variables to modify — soil type, plant characteristics, watering frequency and volume, lighting and so on — and a measurable outcome: concentration of flavor-producing molecules. That means it’s a natural fit for a machine learning model, which from that variety of inputs can make a prediction as to which will produce the best output.
“We’re really interested in building networked tools that can take a plant’s experience, its phenotype, the set of stresses it encounters, and its genetics, and digitize that to allow us to understand the plant-environment interaction,” explained MIT’s Caleb Harper in a news release. The better you understand those interactions, the better you can design the plant’s lifecycle, perhaps increasing yield, improving flavor or reducing waste.
In this case the team limited the machine learning model to analyzing and switching up the type and duration of light experienced by the plants, with the goal of increasing flavor concentration.
A first round of nine plants had light regimens designed by hand based on prior knowledge of what basil generally likes. The plants were harvested and analyzed. Then a simple model was used to make similar but slightly tweaked regimens that took the results of the first round into account. Then a third, more sophisticated model was created from the data and given significantly more leeway in its ability to recommend changes to the environment.
To the researchers’ surprise, the model recommended a highly extreme measure: Keep the plant’s UV lights on 24/7.
Naturally this isn’t how basil grows in the wild, since, as you may know, there are few places where the sun shines all day long and all night strong. And the arctic and antarctic, while fascinating ecosystems, aren’t known for their flavorful herbs and spices.
Nevertheless, the “recipe” of keeping the lights on was followed (it was an experiment, after all), and incredibly, this produced a massive increase in flavor molecules, doubling the amount found in control plants.
“You couldn’t have discovered this any other way,” said co-author John de la Parra. “Unless you’re in Antarctica, there isn’t a 24-hour photoperiod to test in the real world. You had to have artificial circumstances in order to discover that.”
But while a more flavorful basil is a welcome result, it’s not really the point. The team is more happy that the method yielded good data, validating the platform and software they used.
“You can see this paper as the opening shot for many different things that can be applied, and it’s an exhibition of the power of the tools that we’ve built so far,” said de la Parra. “With systems like ours, we can vastly increase the amount of knowledge that can be gained much more quickly.”
If we’re going to feed the world, it’s not going to be done with amber waves of grain, i.e. with traditional farming methods. Vertical, hydroponic, computer-optimized — we’ll need all these advances and more to bring food production into the 21st century.
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NYC and Boston were handed huge setbacks this week when Amazon and GE decided to bail on their commitments to build headquarters in the respective cities on the same day. But it’s worth pointing out that while these large tech organizations were pulling out, Google was expanding in both locations.
Yesterday, upon hearing about Amazon’s decision to scrap its HQ2 plans in Long Island City, New York City Mayor de Blasio had this to say: “Instead of working with the community, Amazon threw away that opportunity. We have the best talent in the world and every day we are growing a stronger and fairer economy for everyone. If Amazon can’t recognize what that’s worth, its competitors will.” One of them already has. Google had already announced a billion-dollar expansion in Hudson Square at the end of last year.
In fact, the company is pouring billions into NYC real estate, with plans to double its 7,000-person workforce over the next 10 years. As TechCrunch’s Jon Russell reported, “Our investment in New York is a huge part of our commitment to grow and invest in U.S. facilities, offices and jobs. In fact, we’re growing faster outside the Bay Area than within it, and this year opened new offices and data centers in locations like Detroit, Boulder, Los Angeles, Tennessee and Alabama, wrote Google CFO Ruth Porat.”
Just this week, as GE was making its announcement, Google was announcing a major expansion in Cambridge, the city across the river from Boston that is home to Harvard and MIT. Kendall Square is also home to offices from Facebook, Microsoft, IBM, Akamai, DigitalOcean and a plethora of startups.
Google will be moving into a brand new building that currently is home to the MIT Coop bookstore. It plans to grab 365,000 square feet of the new building when it’s completed, and, as in NYC, will be adding hundreds of new jobs to the 1,500 already in place. Brian Cusack, Google Cambridge Site lead points out the company began operations in Cambridge back in 2003 and has been working on Search, Android, Cloud, YouTube, Google Play, Research, Ads and more.
“This new space will provide room for future growth and further cements our commitment to the Cambridge community. We’re proud to call this city home and will continue to support its vibrant nonprofit and growing business community,” he said in a statement.
As we learned this week, big company commitments can vanish just as quickly as they are announced, but for now at least, it appears that Google is serious about its commitment to New York and Boston and will be expanding office space and employment to the tune of thousands of jobs over the next decade.
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UK startup Fabula AI reckons it’s devised a way for artificial intelligence to help user generated content platforms get on top of the disinformation crisis that keeps rocking the world of social media with antisocial scandals.
Even Facebook’s Mark Zuckerberg has sounded a cautious note about AI technology’s capability to meet the complex, contextual, messy and inherently human challenge of correctly understanding every missive a social media user might send, well-intentioned or its nasty flip-side.
“It will take many years to fully develop these systems,” the Facebook founder wrote two years ago, in an open letter discussing the scale of the challenge of moderating content on platforms thick with billions of users. “This is technically difficult as it requires building AI that can read and understand news.”
But what if AI doesn’t need to read and understand news in order to detect whether it’s true or false?
Step forward Fabula, which has patented what it dubs a “new class” of machine learning algorithms to detect “fake news” — in the emergent field of “Geometric Deep Learning”; where the datasets to be studied are so large and complex that traditional machine learning techniques struggle to find purchase on this ‘non-Euclidean’ space.
The startup says its deep learning algorithms are, by contrast, capable of learning patterns on complex, distributed data sets like social networks. So it’s billing its technology as a breakthrough. (Its written a paper on the approach which can be downloaded here.)
It is, rather unfortunately, using the populist and now frowned upon badge “fake news” in its PR. But it says it’s intending this fuzzy umbrella to refer to both disinformation and misinformation. Which means maliciously minded and unintentional fakes. Or, to put it another way, a photoshopped fake photo or a genuine image spread in the wrong context.
The approach it’s taking to detecting disinformation relies not on algorithms parsing news content to try to identify malicious nonsense but instead looks at how such stuff spreads on social networks — and also therefore who is spreading it.
There are characteristic patterns to how ‘fake news’ spreads vs the genuine article, says Fabula co-founder and chief scientist, Michael Bronstein.
“We look at the way that the news spreads on the social network. And there is — I would say — a mounting amount of evidence that shows that fake news and real news spread differently,” he tells TechCrunch, pointing to a recent major study by MIT academics which found ‘fake news’ spreads differently vs bona fide content on Twitter.
“The essence of geometric deep learning is it can work with network-structured data. So here we can incorporate heterogenous data such as user characteristics; the social network interactions between users; the spread of the news itself; so many features that otherwise would be impossible to deal with under machine learning techniques,” he continues.
Bronstein, who is also a professor at Imperial College London, with a chair in machine learning and pattern recognition, likens the phenomenon Fabula’s machine learning classifier has learnt to spot to the way infectious disease spreads through a population.
“This is of course a very simplified model of how a disease spreads on the network. In this case network models relations or interactions between people. So in a sense you can think of news in this way,” he suggests. “There is evidence of polarization, there is evidence of confirmation bias. So, basically, there are what is called echo chambers that are formed in a social network that favor these behaviours.”
“We didn’t really go into — let’s say — the sociological or the psychological factors that probably explain why this happens. But there is some research that shows that fake news is akin to epidemics.”
The tl;dr of the MIT study, which examined a decade’s worth of tweets, was that not only does the truth spread slower but also that human beings themselves are implicated in accelerating disinformation. (So, yes, actual human beings are the problem.) Ergo, it’s not all bots doing all the heavy lifting of amplifying junk online.
The silver lining of what appears to be an unfortunate quirk of human nature is that a penchant for spreading nonsense may ultimately help give the stuff away — making a scalable AI-based tool for detecting ‘BS’ potentially not such a crazy pipe-dream.
Although, to be clear, Fabula’s AI remains in development at this stage, having been tested internally on Twitter data sub-sets at this stage. And the claims it’s making for its prototype model remain to be commercially tested with customers in the wild using the tech across different social platforms.
It’s hoping to get there this year, though, and intends to offer an API for platforms and publishers towards the end of this year. The AI classifier is intended to run in near real-time on a social network or other content platform, identifying BS.
Fabula envisages its own role, as the company behind the tech, as that of an open, decentralised “truth-risk scoring platform” — akin to a credit referencing agency just related to content, not cash.
Scoring comes into it because the AI generates a score for classifying content based on how confident it is it’s looking at a piece of fake vs true news.
A visualisation of a fake vs real news distribution pattern; users who predominantly share fake news are coloured red and users who don’t share fake news at all are coloured blue — which Fabula says shows the clear separation into distinct groups, and “the immediately recognisable difference in spread pattern of dissemination”.
In its own tests Fabula says its algorithms were able to identify 93 percent of “fake news” within hours of dissemination — which Bronstein claims is “significantly higher” than any other published method for detecting ‘fake news’. (Their accuracy figure uses a standard aggregate measurement of machine learning classification model performance, called ROC AUC.)
The dataset the team used to train their model is a subset of Twitter’s network — comprised of around 250,000 users and containing around 2.5 million “edges” (aka social connections).
For their training dataset Fabula relied on true/fake labels attached to news stories by third party fact checking NGOs, including Snopes and PolitiFact. And, overall, pulling together the dataset was a process of “many months”, according to Bronstein, He also says that around a thousand different stories were used to train the model, adding that the team is confident the approach works on small social networks, as well as Facebook-sized mega-nets.
Asked whether he’s sure the model hasn’t been trained to identified patterns caused by bot-based junk news spreaders, he says the training dataset included some registered (and thus verified ‘true’) users.
“There is multiple research that shows that bots didn’t play a significant amount [of a role in spreading fake news] because the amount of it was just a few percent. And bots can be quite easily detected,” he also suggests, adding: “Usually it’s based on some connectivity analysis or content analysis. With our methods we can also detect bots easily.”
To further check the model, the team tested its performance over time by training it on historical data and then using a different split of test data.
“While we see some drop in performance it is not dramatic. So the model ages well, basically. Up to something like a year the model can still be applied without any re-training,” he notes, while also saying that, when applied in practice, the model would be continually updated as it keeps digesting (ingesting?) new stories and social media content.
Somewhat terrifyingly, the model could also be used to predict virality, according to Bronstein — raising the dystopian prospect of the API being used for the opposite purpose to that which it’s intended: i.e. maliciously, by fake news purveyors, to further amp up their (anti)social spread.
“Potentially putting it into evil hands it might do harm,” Bronstein concedes. Though he takes a philosophical view on the hyper-powerful double-edged sword of AI technology, arguing such technologies will create an imperative for a rethinking of the news ecosystem by all stakeholders, as well as encouraging emphasis on user education and teaching critical thinking.
Let’s certainly hope so. And, on the educational front, Fabula is hoping its technology can play an important role — by spotlighting network-based cause and effect.
“People now like or retweet or basically spread information without thinking too much or the potential harm or damage they’re doing to everyone,” says Bronstein, pointing again to the infectious diseases analogy. “It’s like not vaccinating yourself or your children. If you think a little bit about what you’re spreading on a social network you might prevent an epidemic.”
So, tl;dr, think before you RT.
Returning to the accuracy rate of Fabula’s model, while ~93 per cent might sound pretty impressive, if it were applied to content on a massive social network like Facebook — which has some 2.3BN+ users, uploading what could be trillions of pieces of content daily — even a seven percent failure rate would still make for an awful lot of fakes slipping undetected through the AI’s net.
But Bronstein says the technology does not have to be used as a standalone moderation system. Rather he suggests it could be used in conjunction with other approaches such as content analysis, and thus function as another string on a wider ‘BS detector’s bow.
It could also, he suggests, further aid human content reviewers — to point them to potentially problematic content more quickly.
Depending on how the technology gets used he says it could do away with the need for independent third party fact-checking organizations altogether because the deep learning system can be adapted to different use cases.
Example use-cases he mentions include an entirely automated filter (i.e. with no human reviewer in the loop); or to power a content credibility ranking system that can down-weight dubious stories or even block them entirely; or for intermediate content screening to flag potential fake news for human attention.
Each of those scenarios would likely entail a different truth-risk confidence score. Though most — if not all — would still require some human back-up. If only to manage overarching ethical and legal considerations related to largely automated decisions. (Europe’s GDPR framework has some requirements on that front, for example.)
Facebook’s grave failures around moderating hate speech in Myanmar — which led to its own platform becoming a megaphone for terrible ethnical violence — were very clearly exacerbated by the fact it did not have enough reviewers who were able to understand (the many) local languages and dialects spoken in the country.
So if Fabula’s language-agnostic propagation and user focused approach proves to be as culturally universal as its makers hope, it might be able to raise flags faster than human brains which lack the necessary language skills and local knowledge to intelligently parse context.
“Of course we can incorporate content features but we don’t have to — we don’t want to,” says Bronstein. “The method can be made language independent. So it doesn’t matter whether the news are written in French, in English, in Italian. It is based on the way the news propagates on the network.”
Although he also concedes: “We have not done any geographic, localized studies.”
“Most of the news that we take are from PolitiFact so they somehow regard mainly the American political life but the Twitter users are global. So not all of them, for example, tweet in English. So we don’t yet take into account tweet content itself or their comments in the tweet — we are looking at the propagation features and the user features,” he continues.
“These will be obviously next steps but we hypothesis that it’s less language dependent. It might be somehow geographically varied. But these will be already second order details that might make the model more accurate. But, overall, currently we are not using any location-specific or geographic targeting for the model.
“But it will be an interesting thing to explore. So this is one of the things we’ll be looking into in the future.”
Fabula’s approach being tied to the spread (and the spreaders) of fake news certainly means there’s a raft of associated ethical considerations that any platform making use of its technology would need to be hyper sensitive to.
For instance, if platforms could suddenly identify and label a sub-set of users as ‘junk spreaders’ the next obvious question is how will they treat such people?
Would they penalize them with limits — or even a total block — on their power to socially share on the platform? And would that be ethical or fair given that not every sharer of fake news is maliciously intending to spread lies?
What if it turns out there’s a link between — let’s say — a lack of education and propensity to spread disinformation? As there can be a link between poverty and education… What then? Aren’t your savvy algorithmic content downweights risking exacerbating existing unfair societal divisions?
Bronstein agrees there are major ethical questions ahead when it comes to how a ‘fake news’ classifier gets used.
“Imagine that we find a strong correlation between the political affiliation of a user and this ‘credibility’ score. So for example we can tell with hyper-ability that if someone is a Trump supporter then he or she will be mainly spreading fake news. Of course such an algorithm would provide great accuracy but at least ethically it might be wrong,” he says when we ask about ethics.
He confirms Fabula is not using any kind of political affiliation information in its model at this point — but it’s all too easy to imagine this sort of classifier being used to surface (and even exploit) such links.
“What is very important in these problems is not only to be right — so it’s great of course that we’re able to quantify fake news with this accuracy of ~90 percent — but it must also be for the right reasons,” he adds.
The London-based startup was founded in April last year, though the academic research underpinning the algorithms has been in train for the past four years, according to Bronstein.
The patent for their method was filed in early 2016 and granted last July.
They’ve been funded by $500,000 in angel funding and about another $500,000 in total of European Research Council grants plus academic grants from tech giants Amazon, Google and Facebook, awarded via open research competition awards.
(Bronstein confirms the three companies have no active involvement in the business. Though doubtless Fabula is hoping to turn them into customers for its API down the line. But he says he can’t discuss any potential discussions it might be having with the platforms about using its tech.)
Focusing on spotting patterns in how content spreads as a detection mechanism does have one major and obvious drawback — in that it only works after the fact of (some) fake content spread. So this approach could never entirely stop disinformation in its tracks.
Though Fabula claims detection is possible within a relatively short time frame — of between two and 20 hours after content has been seeded onto a network.
“What we show is that this spread can be very short,” he says. “We looked at up to 24 hours and we’ve seen that just in a few hours… we can already make an accurate prediction. Basically it increases and slowly saturates. Let’s say after four or five hours we’re already about 90 per cent.”
“We never worked with anything that was lower than hours but we could look,” he continues. “It really depends on the news. Some news does not spread that fast. Even the most groundbreaking news do not spread extremely fast. If you look at the percentage of the spread of the news in the first hours you get maybe just a small fraction. The spreading is usually triggered by some important nodes in the social network. Users with many followers, tweeting or retweeting. So there are some key bottlenecks in the network that make something viral or not.”
A network-based approach to content moderation could also serve to further enhance the power and dominance of already hugely powerful content platforms — by making the networks themselves core to social media regulation, i.e. if pattern-spotting algorithms rely on key network components (such as graph structure) to function.
So you can certainly see why — even above a pressing business need — tech giants are at least interested in backing the academic research. Especially with politicians increasingly calling for online content platforms to be regulated like publishers.
At the same time, there are — what look like — some big potential positives to analyzing spread, rather than content, for content moderation purposes.
As noted above, the approach doesn’t require training the algorithms on different languages and (seemingly) cultural contexts — setting it apart from content-based disinformation detection systems. So if it proves as robust as claimed it should be more scalable.
Though, as Bronstein notes, the team have mostly used U.S. political news for training their initial classifier. So some cultural variations in how people spread and react to nonsense online at least remains a possibility.
A more certain challenge is “interpretability” — aka explaining what underlies the patterns the deep learning technology has identified via the spread of fake news.
While algorithmic accountability is very often a challenge for AI technologies, Bronstein admits it’s “more complicated” for geometric deep learning.
“We can potentially identify some features that are the most characteristic of fake vs true news,” he suggests when asked whether some sort of ‘formula’ of fake news can be traced via the data, noting that while they haven’t yet tried to do this they did observe “some polarization”.
“There are basically two communities in the social network that communicate mainly within the community and rarely across the communities,” he says. “Basically it is less likely that somebody who tweets a fake story will be retweeted by somebody who mostly tweets real stories. There is a manifestation of this polarization. It might be related to these theories of echo chambers and various biases that exist. Again we didn’t dive into trying to explain it from a sociological point of view — but we observed it.”
So while, in recent years, there have been some academic efforts to debunk the notion that social media users are stuck inside filter bubble bouncing their own opinions back at them, Fabula’s analysis of the landscape of social media opinions suggests they do exist — albeit, just not encasing every Internet user.
Bronstein says the next steps for the startup is to scale its prototype to be able to deal with multiple requests so it can get the API to market in 2019 — and start charging publishers for a truth-risk/reliability score for each piece of content they host.
“We’ll probably be providing some restricted access maybe with some commercial partners to test the API but eventually we would like to make it useable by multiple people from different businesses,” says requests. “Potentially also private users — journalists or social media platforms or advertisers. Basically we want to be… a clearing house for news.”
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Young founders who want to start companies while still in school have an increasing number of resources to tap into that exist just for them. Students that want to learn how to build companies can apply to an increasing number of fast-track programs that allow them to gain valuable early stage operating experience. The energy around student entrepreneurship today is incredible. I’ve been immersed in this community as an investor and adviser for some time now, and to say the least, I’m continually blown away by what the next generation of innovators are dreaming up (from Analytical Space’s global data relay service for satellites to Brooklinen’s reinvention of the luxury bed).
Bill Gates in 1973
First, let’s look at student founders and why they’re important. Student entrepreneurs have long been an important foundation of the startup ecosystem. Many students wrestle with how best to learn while in school —some students learn best through lectures, while more entrepreneurial students like author Julian Docks find it best to leave the classroom altogether and build a business instead.
Indeed, some of our most iconic founders are Microsoft’s Bill Gates and Facebook’s Mark Zuckerberg, both student entrepreneurs who launched their startups at Harvard and then dropped out to build their companies into major tech giants. A sample of the current generation of marquee companies founded on college campuses include Snap at Stanford ($29B valuation at IPO), Warby Parker at Wharton (~$2B valuation), Rent The Runway at HBS (~$1B valuation), and Brex at Stanford (~$1B valuation).
Some of today’s most celebrated tech leaders built their first ventures while in school — even if some student startups fail, the critical first-time founder experience is an invaluable education in how to build great companies. Perhaps the best example of this that I could find is Drew Houston at Dropbox (~$9B valuation at IPO), who previously founded an edtech startup at MIT that, in his words, provided a: “great introduction to the wild world of starting companies.”

Student founders are everywhere, but the highest concentration of venture-backed student founders can be found at just 5 universities. Based on venture fund portfolio data from the last six years, Harvard, Stanford, MIT, UPenn, and UC Berkeley have produced the highest number of student-founded companies that went on to raise $1 million or more in seed capital. Some prospective students will even enroll in a university specifically for its reputation of churning out great entrepreneurs. This is not to say that great companies are not being built out of other universities, nor does it mean students can’t find resources outside a select number of schools. As you can see later in this essay, there are a number of new ways students all around the country can tap into the startup ecosystem. For further reading, PitchBook produces an excellent report each year that tracks where all entrepreneurs earned their undergraduate degrees.

Student founders have a number of new media resources to turn to. New email newsletters focused on student entrepreneurship like Justine and Olivia Moore’s Accelerated and Kyle Robertson’s StartU offer new channels for young founders to reach large audiences. Justine and Olivia, the minds behind Accelerated, have a lot of street cred— they launched Stanford’s on-campus incubator Cardinal Ventures before landing as investors at CRV.
StartU goes above and beyond to be a resource to founders they profile by helping to connect them with investors (they’re active at 12 universities), and run a podcast hosted by their Editor-in-Chief Johnny Hammond that is top notch. My bet is that traditional media will point a larger spotlight at student entrepreneurship going forward.
New pools of capital are also available that are specifically for student founders. There are four categories that I call special attention to:
While it is difficult to estimate exactly how much capital has been deployed by each, there is no denying that there has been an explosion in the number of programs that address the pre-seed phase. A sample of the programs available at the Top 5 universities listed above are in the graphic below — listing every resource at every university would be difficult as there are so many.
One alumni-centric fund to highlight is the Alumni Ventures Group, which pools LP capital from alumni at specific universities, then launches individual venture funds that invest in founders connected to those universities (e.g. students, alumni, professors, etc.). Through this model, they’ve deployed more than $200M per year! Another highlight has been student scout programs — which vary in the degree of autonomy and capital invested — but essentially empower students to identify and fund high-potential student-founded companies for their parent venture funds. On campuses with a large concentration of student founders, it is not uncommon to find student scouts from as many as 12 different venture funds actively sourcing deals (as is made clear from David Tao’s analysis at UC Berkeley).
Investment Team at Rough Draft Ventures
In my opinion, the two institutions that have the most expansive line of sight into the student entrepreneurship landscape are First Round’s Dorm Room Fund and General Catalyst’s Rough Draft Ventures. Since 2012, these two funds have operated a nationwide network of student scouts that have invested $20K — $25K checks into companies founded by student entrepreneurs at 40+ universities. “Scout” is a loose term and doesn’t do it justice — the student investors at these two funds are almost entirely autonomous, have built their own platform services to support portfolio companies, and have launched programs to incubate companies built by female founders and founders of color. Another student-run fund worth noting that has reach beyond a single region is Contrary Capital, which raised $2.2M last year. They do a particularly great job of reaching founders at a diverse set of schools — their network of student scouts are active at 45 universities and have spoken with 3,000 founders per year since getting started. Contrary is also testing out what they describe as a “YC for university-based founders”. In their first cohort, 100% of their companies raised a pre-seed round after Contrary’s demo day. Another even more recently launched organization is The MBA Fund, which caters to founders from the business schools at Harvard, Wharton, and Stanford. While super exciting, these two funds only launched very recently and manage portfolios that are not large enough for analysis just yet.
Over the last few months, I’ve collected and cross-referenced publicly available data from both Dorm Room Fund and Rough Draft Ventures to assess the state of student entrepreneurship in the United States. Companies were pulled from each fund’s portfolio page, then checked against Crunchbase for amount raised, accelerator participation, and other metrics. If you’d like to sift through the data yourself, feel free to ping me — my email can be found at the end of this article. To be clear, this does not represent the full scope of investment activity at either fund — many companies in the portfolios of both funds remain confidential and unlisted for good reasons (e.g. startups working in stealth). In fact, the In addition, data for early stage companies is notoriously variable in quality, even with Crunchbase. You should read these insights as directional only, given the debatable confidence interval. Still, the data is still interesting and give good indicators for the health of student entrepreneurship today.
Dorm Room Fund and Rough Draft Ventures have invested in 230+ student-founded companies that have gone on to raise nearly $1 billion in follow on capital. These funds have invested in a diverse range of companies, from govtech (e.g. mark43, raised $77M+ and FiscalNote, raised $50M+) to space tech (e.g. Capella Space, raised ~$34M). Several portfolio companies have had successful exits, such as crypto startup Distributed Systems (acquired by Coinbase) and social networking startup tbh (acquired by Facebook). While it is too early to evaluate the success of these funds on a returns basis (both were launched just 6 years ago), we can get a sense of success by evaluating the rates by which portfolio companies raise additional capital. Taken together, 34% of DRF and RDV companies in our data set have raised $1 million or more in seed capital. For a rough comparison, CB Insights cites that 40% of YC companies and 48% of Techstars companies successfully raise follow on capital (defined as anything above $750K). Certainly within the ballpark!
Source: Crunchbase
Dorm Room Fund and Rough Draft Ventures companies in our data set have an 11–12% rate of survivorship to Series A. As a benchmark, a previous partner at Y Combinator shared that 20% of their accelerator companies raise Series A capital (YC declined to share the official figure, but it’s likely a stat that is increasing given their new Series A support programs. For further reading, check out YC’s reflection on what they’ve learned about helping their companies raise Series A funding). In any case, DRF and RDV’s numbers should be taken with a grain of salt, as the average age of their portfolio companies is very low and raising Series A rounds generally takes time. Ultimately, it is clear that DRF and RDV are active in the earlier (and riskier) phases of the startup journey.
Dorm Room Fund and Rough Draft Ventures send 18–25% of their portfolio companies to Y Combinator or Techstars. Given YC’s 1.5% acceptance rate as reported in Fortune, this is quite significant! Internally, these two funds offer founders an opportunity to participate in mock interviews with YC and Techstars alumni, as well as tap into their communities for peer support (e.g. advice on pitch decks and application content). As a result, Dorm Room Fund and Rough Draft Ventures regularly send cohorts of founders to these prestigious accelerator programs. Based on our data set, 17–20% of DRF and RDV companies that attend one of these accelerators end up raising Series A venture financing.
Source: Crunchbase
Dorm Room Fund and Rough Draft Ventures don’t invest in the same companies. When we take a deeper look at one specific ecosystem where these two funds have been equally active over the last several years — Boston — we actually see that the degree of investment overlap for companies that have raised $1M+ seed rounds sits at 26%. This suggests that these funds are either a) seeing different dealflow or b) have widely different investment decision-making.
Source: Crunchbase
Dorm Room Fund and Rough Draft Ventures should not just be measured by a returns-basis today, as it’s too early. I hypothesize that DRF and RDV are actually encouraging more entrepreneurial activity in the ecosystem (more students decide to start companies while in school) as well as improving long-term founder outcomes amongst students they touch (portfolio founders build bigger and more successful companies later in their careers). As more students start companies, there’s likely a positive feedback loop where there’s increasing peer pressure to start a company or lean on friends for founder support (e.g. feedback, advice, etc).Both of these subjects warrant additional study, but it’s likely too early to conduct these analyses today.
Dorm Room Fund and Rough Draft Ventures have impressive alumni that you will want to track. 1 in 4 alumni partners are founders, and 29% of these founder alumni have raised $1M+ seed rounds for their companies. These include Anjney Midha’s augmented reality startup Ubiquity6 (raised $37M+), Shubham Goel’s investor-focused CRM startup Affinity (raised $13M+), Bruno Faviero’s AI security software startup Synapse (raised $6M+), Amanda Bradford’s dating app The League (raised $2M+), and Dillon Chen’s blockchain startup Commonwealth Labs (raised $1.7M). It makes sense to me that alumni from these communities that decide to start companies have an advantage over their peers — they know what good companies look like and they can tap into powerful networks of young talent / experienced investors.

Beyond Dorm Room Fund and Rough Draft Ventures, some venture capital firms focus on incubation for student-founded startups. Credit should first be given to Lightspeed for producing the amazing Summer Fellows bootcamp experience for promising student founders — after all, Pinterest was built there! Jeremy Liew gives a good overview of the program through his sit-down interview with Afterbox’s Zack Banack. Based on a study they conducted last year, 40% of Lightspeed Summer Fellows alumni are currently active founders. Pear Ventures also has an impressive summer incubator program where 85% of its companies successfully complete a fundraise. Index Ventures is the latest to build an incubator program for student founders, and even accepts founders who want to work on an idea part-time while completing a summer internship.
Let’s now look at students who want to join a startup before founding one. Venture funds have historically looked to tap students for talent, and are expanding the engagement lifecycle. The longest running programs include Kleiner Perkins’ class=”m_1196721721246259147gmail-markup–strong m_1196721721246259147gmail-markup–p-strong”> KP Fellows and True Ventures’ TEC Fellows, which focus on placing the next generation’s most promising product managers, engineers, and designers into the portfolio companies of their parent venture funds.
There’s also the secretive Greylock X, a referral-based hand-picked group of the best student engineers in Silicon Valley (among their impressive alumni are founders like Yasyf Mohamedali and Joe Kahn, the folks behind First Round-backed Karuna Health). As these programs have matured, these firms have recognized the long-run value of engaging the alumni of their programs.
More and more alumni are “coming back” to the parent funds as entrepreneurs, like KP Fellow Dylan Field of Figma (and is also hosting a KP Fellow, closing a full circle loop!). Based on their latest data, 10% of KP Fellows alumni are founders — that’s a lot given the fact that their community has grown to 500! This helps explain why Kleiner Perkins has created a structured path to receive $100K in seed funding to companies founded by KP Fellow alumni. It looks like venture funds are beginning to invest in student programs as part of their larger platform strategy, which can have a real impact over the long term (for further reading, see this analysis of platform strategy outcomes by USV’s Bethany Crystal).
KP Fellows in San Francisco
Venture funds are doubling down on student talent engagement — in just the last 18 months, 4 funds have launched student programs. It’s encouraging to see new funds follow in the footsteps of First Round, General Catalyst, Kleiner Perkins, Greylock, and Lightspeed. In 2017, Accel launched their Accel Scholars program to engage top talent at UC Berkeley and Stanford. In 2018, we saw 8VC Fellows, NEA Next, and Floodgate Insiders all launch, targeting elite universities outside of Silicon Valley. Y Combinator implemented Early Decision, which allows student founders to apply one batch early to help with academic scheduling. Most recently, at the start of 2019, First Round launched the Graduate Fund (staffed by Dorm Room Fund alumni) to invest in founders who are recent graduates or young alumni.
Given more time, I’d love to study the rates by which student founders start another company following investments from student scout funds, as well as whether or not they’re more successful in those ventures. In any case, this is an escalation in the number of venture funds that have started to get serious about engaging students — both for talent and dealflow.
Student entrepreneurship 2.0 is here. There are more structured paths to success for students interested in starting or joining a startup. Founders have more opportunities to garner press, seek advice, raise capital, and more. Venture funds are increasingly leveraging students to help improve the three F’s — finding, funding, and fixing. In my personal view, I believe it is becoming more and more important for venture funds to gain mindshare amongst the next generation of founders and operators early, while still in school.
I can’t wait to see what’s next for student entrepreneurship in 2019. If you’re interested in digging in deeper (I’m human — I’m sure I haven’t covered everything related to student entrepreneurship here) or learning more about how you can start or join a startup while still in school, shoot me a note at sxu@dormroomfund.com. A massive thanks to Phin Barnes, Rei Wang, Chauncey Hamilton, Peter Boyce, Natalie Bartlett, Denali Tietjen, Eric Tarczynski, Will Robbins, Jasmine Kriston, Alicia Lau, Johnny Hammond, Bruno Faviero, Athena Kan, Shohini Gupta, Alex Immerman, Albert Dong, Phillip Hua-Bon-Hoa, and Trevor Sookraj for your incredible encouragement, support, and insight during the writing of this essay.
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A system that uses a technique called constructive solid geometry (CSG) is allowing MIT researchers to deconstruct objects and turn them into 3D models, thereby allowing them to reverse-engineer complex things.
The system appeared in a paper entitled “InverseCSG: Automatic Conversion of 3D Models to CSG Trees” by Tao Du, Jeevana Priya Inala, Yewen Pu, Andrew Spielberg, Adriana Schulz, Daniela Rus, Armando Solar-Lezama, and Wojciech Matusik.
“At a high level, the problem is reverse engineering a triangle mesh into a simple tree. Ideally, if you want to customize an object, it would be best to have access to the original shapes — what their dimensions are and how they’re combined. But once you combine everything into a triangle mesh, you have nothing but a list of triangles to work with, and that information is lost,” said Tao Du to 3DPrintingIndustry. “Once we recover the metadata, it’s easier for other people to modify designs.”
The process cuts objects into simple solids that can then be added together to create complex objects. Because 3D scanning is imperfect, the creation of mesh models of various objects rarely leads to a perfect copy of the original. Using this technique, individual parts are cut away, analyzed and reassembled, allowing for a more precise scan.
“Further, we demonstrated the robustness of our algorithm by solving examples not describable by our grammar. Finally, since our method returns parameterized CSG programs, it provides a powerful means for end-users to edit and understand the structure of 3D meshes,” said Du.
The system detects primitive shapes and then modifies them. This allows it to recreate almost any object with far better accuracy than in previous versions of the software. It’s a surprisingly cool way to begin hacking hardware in order to understand it’s shape, volume and stability.
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