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Some weeks, tech ethics is in the news. And some weeks, it IS the news. This week was one of the latter.
There were so many ethically fraught news stories about technology companies over these past few days, I had trouble keeping track of them all. So I’m delighted that my latest interviewee for this series on ethics and technology is TechCrunch’s own Kate Clark, a reporter covering startups and venture capital.
Kate is one of the tech reporters on whom I rely most heavily for insight into what the hell is going on in Silicon Valley, and not just because she’s prolific, a fine writer, and so hardworking she seems to attend every VC dinner and startup product launch in Northern California (though she is all of those things).
I also turn to her (well actually, I turn to her Twitter — we’ve never met in person) because, though she would never claim to have any special training or authority in ethics, she has three of the top qualities I look for in an ethical leader: a passion for equitable inclusion; a well-modulated bullshit detector; and enough compassion for humanity to expect better of us all.
When Kate and I spoke on Wednesday afternoon, she was as harried as you might expect, at least based on her tweets.
Alright anyone else that tries to generate headlines today is selfish and rude and must be stopped!!!
— Kate Clark (@KateClarkTweets) September 25, 2019
Greg Epstein: I’ve been looking forward to talking to you for a while now, and I certainly picked a busy day.
Kate Clark: Not as bad as yesterday.
Epstein: I follow your work closely; it informs mine. I’m sitting here in Cambridge, Massachusetts, where I work, and I’m thinking about the ethics of technology.
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Workplace collaboration software business Slack (NYSE: WORK) has added Sheila Jordan, a senior vice president and chief information officer of Symantec, as an independent member of its board of directors. The hiring comes three months after the business completed a direct listing on the New York Stock Exchange.
Jordan, responsible for driving information technology strategy and operations for Symantec, brings significant cybersecurity expertise to Slack’s board. Prior to joining Symantec in 2014, Jordan was a senior vice president of IT at Cisco and an executive at Disney Destination for nearly 15 years.
With the new appointment, Slack appears to be doubling down on security. In addition to the board announcement, Slack recently published a blog post outlining the company’s latest security strategy in what was likely part of a greater attempt to sway potential customers — particularly those in highly regulated industries — wary of the company’s security processes. The post introduced new features, including the ability to allow teams to work remotely while maintaining compliance to industry and company-specific requirements.
Jordan joins Slack co-founder and chief executive officer Stewart Butterfield, former Goldman Sachs executive Edith Cooper, Accel general partner Andrew Braccia, Nextdoor CEO Sarah Friar, Andreessen Horowitz general partner John O’Farrell, Social Capital CEO Chamath Palihapitiya and former Salesforce chief financial officer Graham Smith on Slack’s board of directors.
“I believe there is nothing more critical than driving organizational alignment and agility within enterprises today,” Jordan said in a statement. “Slack has developed a new category of enterprise software to help unlock this potential and I’m thrilled to now be a part of their story.”
Slack closed up nearly 50% on its first day of trading in June but has since stumbled amid reports of increased competition from Microsoft, which operates a Slack-like product called Teams.
Slack co-founder and chief technology officer Cal Henderson will join us onstage at TechCrunch Disrupt San Francisco next week to discuss the company’s founding, road to the public markets and path forward. Buy tickets here.
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San Francisco-based accelerator 500 Startups is expanding its executive team with the hiring of Tony Wang.
Wang is joining the early-stage firm from Color Genomics, a venture-backed developer of genetic testing kits where he had served as chief operating officer since 2014. Prior to Color, Wang was the vice president of global partnerships and development at Twitter and managing counsel for Google’s international operations.
“The venture capital world is undergoing a dramatic shift towards globalization where 500 Startups has been the leader and investing for the past decade,” Wang said in a statement. “There’s no question there are talented founders around the world, as proven by the number of unicorn companies in the 500 family.”
500 Startups, led by chief executive officer Christine Tsai, is an early investor in TalkDesk, Twilio, GitLab, Canva and several others.
Through its four-month seed program, the 500 Startups seed fund invests $150,000 in participating companies in exchange for 6% equity. Here’s a closer look at all the startups to finish 500 Startups’ latest program.
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WeWork’s co-founder and chief executive officer Adam Neumann has stepped down as CEO and will serve as non-executive chairman of the board, the company confirmed in a press release Tuesday following a report from The Wall Street Journal. WeWork’s vice chairman Sebastian Gunningham and the company’s president and chief operating officer Artie Minson will serve as co-CEOs.
The eclectic executive has faced increasing pressure to relinquish his throne after another report from the WSJ highlighted his drug use and desires to become Israel’s prime minister, among other strange behaviors.
“As co-founder of WeWork, I am so proud of this team and the incredible company that we have built over the last decade,” Neumann said in a statement. “Our global platform now spans 111 cities in 29 countries, serving more than 527,000 members each day. While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive. Thank you to my colleagues, our members, our landlord partners, and our investors for continuing to believe in this great business.”
Neumann’s wife and WeWork co-founder Rebekah Neumann is said to have stepped down from her role as well. Rebekah has had several titles over the years, including chief impact officer, chief brand officer and most recently, co-founder and CEO of WeGrow, WeWork’s “conscious entrepreneurial school.”
SoftBank, the Japanese investor that has funneled billions into the star co-working business, is said to have encouraged — rather, enforced — Neumann’s reported transition out of the CEO role ahead of the company’s anticipated initial public offering. Per the WSJ, moving to the chairman seat would “allow [Neumann] to stay at the company he built into one of the country’s most valuable startups, but inject fresh leadership to pursue an IPO that would bring We the cash it needs to keep up its torrid growth.”
WeWork revealed its unusual IPO prospectus last month after raising more than $8 billion in equity and debt funding. The New York-based company had been valued at a whopping $47 billion, thanks largely to SoftBank’s repeated investments despite financials that show losses of nearly $1 billion in the six months ending June 30.
Wall Street investors were skeptical of the eye-popping valuation, leading to reports WeWork would seek a valuation of as low as $15 billion instead, a magnificent defeat for one of the most valuable private companies in the world. Ultimately, WeWork delayed its float altogether, claiming it planned to go public “by the end of the year.”
In additional efforts to appease Wall Street, WeWork amended its S-1 filing to include the appointment of an independent lead director and its first female board member, Frances Frei. On top of that, the company decreased the strength of Class B and Class C shares so Neumann would not have 20 times the voting power of other shareholders, and removed Neumann’s wife from succession planning at the company.
According to the latest news, Neumann’s voting shares will be reduced from 10:1 to 3:1.
Meanwhile, WeWork is working with bankers to reduce the cost of its money-losing operation, with a new report from The Information stating the business may cut as many as 5,000 roles, or one-third of its entire workforce.
The WeWork IPO saga draws many parallels to Uber’s pre-IPO struggles. Both companies were led, for years, by outspoken executives, Neumann and Travis Kalanick, respectively. Both men were ousted, in essence, by frustrated board members who were concerned at the potential outcome of multi-billion-dollar IPOs.
Given WeWork’s struggle to complete a public listing and Uber’s disappointing performance on the public markets, perhaps private market investors will realize Silicon Valley’s pixie dust doesn’t carry the same weight on Wall Street.
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After 13 years at the helm of video advertising company Eyeview, founder Oren Harnevo is stepping down as CEO.
The company’s new chief executive is Rob Deichert, who was most recently COO at digital advertising company 33Across. The company is also announcing two other new hires — Sean Simon as senior vice president of sales and Risa Crandell as vice president of sales.
Harnevo, meanwhile, will remain on Eyeview’s board of directors.
“It’s been a long and incredible ride for the last 13 years since I co-founded Eyeview, and I feel it’s time to let a new leader help propel Eyeview to its next chapter,” he said in a statement. “2019 has been a great year for Eyeview. With strong revenue growth, and seasoned additions to our leadership team, it’s the perfect time to bring on
[ad] Empty ad slot (#1)!
industry veterans like Rob, Sean and Risa to accelerate our business as I depart to work on my next venture while supporting Eyeview on the board of directors.”Deichert acknowledged that it can be challenging to step into the shoes of a company’s founder, but he said he consulted with Harnevo before taking the job.
“I was just emailing with him today,” he added. “He’s going to be a great partner going forward.”
Rob Deichert
Deichert also said he has a standard on-boarding process when he joins a new company, which involves holding 30-minute, one-on-one meetings with every single person. (In this case, that means holding nearly 100 meetings.)
And while Eyeview has been around for more than a decade, Deichert suggested that there’s still plenty of room for its “outcome-based video marketing” (its specialty is video ads that are personalized based on viewer data) to grow.
In particular, he predicted that as direct-to-consumer brands are “maxing out on Facebook,” they’ll start turning back to traditional ad channels like television. With Eyeview, they can do that without losing the measurement and customization of online video.
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How do you keep your startup secure?
That’s the big question we explored at TC Sessions: Enterprise earlier this month. No matter the size, every startup is an enterprise. Every startup will grow in size as it builds out. But as a company expands, that rapid growth can lead to a distraction from the foundational principle of any modern company — keeping it secure.
Security isn’t just a buzzword. As some of the largest companies in Silicon Valley have shown, security can be difficult. From storing passwords in plaintext to data breaches galore, how can startups learn from some of the biggest security lapses in the tech industry’s history?
Our panel consisted of three of the brightest minds in enterprise security: Wendy Nather, head of advisory CISOs at Duo Security, is an enterprise security expert; Martin Casado, general partner at Andreessen Horowitz, is a security and enterprise startup investor; and Emily Heath, United’s chief information security officer, oversees the security operations of the largest U.S. airlines.
This is what advice they had.
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Brexit has taken over discourse in the UK and beyond. In the UK alone, it is mentioned over 500 million times a day, in 92 million conversations — and for good reason. While the UK has yet to leave the EU, the impact of Brexit has already rippled through industries all over the world. The UK’s technology sector is no exception. While innovation endures in the midst of Brexit, data reveals that innovative companies are losing the ability to attract people from all over the world and are suffering from a substantial talent leak.
It is no secret that the UK was already experiencing a talent shortage, even without the added pressure created by today’s political landscape. Technology is developing rapidly and demand for tech workers continues to outpace supply, creating a fiercely competitive hiring landscape.
The shortage of available tech talent has already created a deficit that could cost the UK £141 billion in GDP growth by 2028, stifling innovation. Now, with Brexit threatening the UK’s cosmopolitan tech landscape — and the economy at large — we may soon see international tech talent moving elsewhere; in fact, 60% of London businesses think they’ll lose access to tech talent once the UK leaves the EU.
So, how can UK-based companies proactively attract and retain top tech talent to prevent a Brexit brain drain? UK businesses must ensure that their hiring funnels are a top priority and focus on understanding what matters most to tech talent beyond salary, so that they don’t lose out to US tech hubs.
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This fall, nearly half a million international students will begin or return to STEM degree programs at U.S. colleges and universities. If you’re among them, congratulations — look forward to being wooed by talent-hungry U.S. tech firms when you graduate. But there’s bad news, too: Under current immigration rules, switching from a student visa to an employment visa can be tricky, so it’s important to understand what’s required and how the latest policy upheavals could impact your journey.
In theory, it’s a great time to be a STEM graduate. U.S. STEM jobs are expected to grow by nearly 11% — or about 10.3 million positions — between 2016 and 2026, faster than all U.S. occupations. In practice, however, it can be tough for international students to secure permanent residence in the United States. The H-1B skilled-worker visa system is badly clogged; a federal lawsuit could slam the door on many STEM graduates, and the White House is shaking up both the skilled-worker and student visa systems.
But don’t despair: There’s still a pathway to a future in the United States — you just might face a bumpy ride. Whether you’re starting your studies or preparing to graduate, it’s crucial to understand your options.
An employment-based green card requires an executive-level job, a truly extraordinary résumé, or an employer willing to pony up thousands of dollars in fees and labor-certification costs. Because it’s hard to get a green card, most international STEM students aim for an H-1B visa, which lets you work for a specified U.S. employer for up to six years. It’s not a permanent solution, but it can be a useful launchpad for your career.
Even getting an H-1B isn’t easy, though. There’s a hard cap on H-1Bs: This year, there were more than 200,000 applicants vying for just 85,000 visas. Recipients are selected via lottery, and while you could land an H-1B on your first attempt, many tech workers have to try again — and again, and again — before they finally get lucky.
In the meantime, international students typically start out using the temporary work authorization through their student visa until they transfer to an H-1B.
Let’s dig into the details of what’s allowed under your student visa:
The F-1 student visa is one of the main on-ramps to the U.S. tech sector for foreign-born workers. That’s largely thanks to Bush- and Obama-era changes that expanded the Optional Practical Training (OPT) program, which allows F-1 holders to work at American companies after graduating, from 12 to 36 months.
Graduates with multiple STEM degrees (such as a bachelor’s and master’s degrees) can also chain together their OPT periods, working for up to six years in total before switching to another visa. That’s great news because each year of OPT is another chance to play the H-1B lottery, increasing your odds of winning a visa.
To use OPT, you’ll need to get a work permit (“Employment Authorization Document,” or EAD) as you near graduation. You’ll also need to file for visa extensions in order to make the most of your OPT entitlement.
Similar to the F-1, the J-1 visa is designed for students involved in cultural exchange programs or who receive substantial funding from governments or institutions.
As a J-1 student, you won’t get OPT but 18 months of Academic Training (AT). Any internships or jobs you take during your studies will count toward your AT allotment, so it’s possible to finish your degree with less than 18 months of work authorization remaining. And while a second 18-month AT period is available for postdoctoral research, there’s no automatic extension for STEM degree holders: Once your 18 months are up, you’ll need to leave the United States.
There’s another catch: Many J-1 visas come with a home residency requirement (HRR), requiring holders to return to their home country for two years before seeking a work-based or family-sponsored U.S. visa — that or apply for an HRR waiver.
The M-1 visa is used by students at technical and vocational schools, not academic programs. As student visas go, it’s very restrictive: You won’t be able to work off-campus and can’t work for more than six months. You also won’t be able to switch to an F-1 visa and won’t find it easy to transition to an H-1B. If you hope to stay in the United States long-term, think carefully about whether an M-1 is right for you.
If you don’t have a job offer, there are other ways to stay in the United States after finishing your studies. One popular option is to enter a graduate program: Getting a master’s degree could extend your student visa by a year or two, while upgrading to a PhD program could get you several additional years. In fact, an advanced U.S. degree under your belt effectively doubles your chances of getting an H-1B in the same lottery.
If you can’t find work and don’t want to keep studying, you’ll need existing family ties to a U.S. citizen or lawful permanent resident (green card holder). If you’re the direct relative of one (for example, a spouse or child), then things are relatively easier: You have a clear path toward a family-based green card, allowing you to live and work permanently in the United States. That’s true even if you’ve become a family member through marriage: You’ll be able to obtain a marriage-based green card more quickly and easily than an H-1B or other employment-based green cards.
If you’re the spouse or child of someone on a temporary visa, such as an H-1B or O-1 visa holder, you can usually obtain a dependent’s visa. Such visas often allow you to study, but you won’t qualify for OPT after graduating. It’s also getting harder for H4 visa holders to obtain work permits, so don’t count on using a dependent’s visa to launch your career in Silicon Valley. In many cases, OPT is still a better springboard to an H-1B or green card.
If the person who claims you as a dependent applies for permanent residence, you may be able to get a green card through “derivative” benefits, meaning their green card eligibility trickles down to you.
Whatever immigration status you currently have or want to get, you’ll need to plan ahead. In some cases, you might need to start planning your next step almost as soon as you begin your studies, in order to make sure you aren’t left without a valid visa.
Whatever your plans, remember that immigration rules are constantly changing — and seldom in ways that benefit new immigrants. If you can, file your visa or green card application right away to avoid nasty surprises.
It’s important not only to understand your current visa but also to recognize that the U.S. immigration system is in flux — and many of the planned changes spell bad news even for immigrants with advanced degrees and vitally needed skills.
The new public charge rule, for instance, will make it harder to get a green card if you’ve used public benefits and allows the U.S. government to deny your application if they suspect you’ll fall on hard times in the future. For STEM grads with solid job offers, that might not seem like a major concern, but the new rule will apply even to those on temporary visas, including H-1Bs, who wish to extend or change their immigration status. At the least, it’s a sign of how much harder the immigration process is getting.
The Trump administration is also targeting students with a new “unlawful presence” rule that imposes tough punishments for minor violations of student visa terms. Fortunately, the rule is tied up in court, but if it goes through, it could lead to lengthy bans on future work visas if you overstay on your student visa, work in ways that aren’t authorized, or otherwise fail to play by the rules.
Such changes underscore the importance of doing your own due diligence and not simply relying on your college or employer to steer you right. Figuring out your immigration options can feel overwhelming — but as the many thousands of foreign-born STEM graduates who’ve successfully built careers in the United States can tell you, it’s well worth the effort.
Have a question about the complex and shifting immigration process? Boundless can help. Please send your immigration-related questions to our resident immigration expert, Anjana Prasad, at ask.anjana@boundless.com. We will consider your question for a future column on the Boundless blog.
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Electric-bike maker Cowboy has recruited a well-known name when it comes to mobile app design. Jeremy Le Van co-founded Sunrise, a well-designed calendar app that was acquired by Microsoft back in 2015. Le Van will become VP of Product and lead the development of Cowboy’s mobile app.
Following Sunrise’s acquisition, Le Van worked for Microsoft. Sunrise has been the foundation for the calendar feature of the Outlook mobile app.
“I am incredibly excited to join the Cowboy team and bring my insights into how we can transform the smart bicycle market to make it more appealing to the mobile-first generation,” he said in a statement.
Of course, Cowboy is a hardware company, as it designs and sells an e-bike. The company wants to make e-bikes more efficient. It features an automatic transmission — motor assistance kicks in automatically when you need it the most, such as when you start pedaling, you accelerate or you go uphill.
Cowboy bikes also feature integrated lights (with a rear light that flashes when you break), a rubber and glass fiber belt and a removable battery. Like VanMoof bikes, it has built-in GPS tracking and an integrated SIM card — you unlock the bike with your phone.
But the mobile app is also an essential part of the experience. You can configure the lights, check the battery and get stats from the app. Let’s see how it evolves with today’s appointment.
Cowboy is currently available in Belgium, France, Germany, the Netherlands and Austria. The startup has raised a €10 million Series A funding round from Tiger Global, Index Ventures, Hardware Club and others.
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John Donovan, CEO of AT&T Communications, announced today his plans to retire effective October 1, 2019. Donovan has for the past two years led AT&T’s largest business unit, which services 100 million mobile, broadband and pay-TV customers in the U.S., as well as millions of business customers, including nearly all the Fortune 1000.
The news comes amid several big changes in that business unit itself, and more in the broader telecom industry.
For starters, AT&T had just rebranded its over-the-top streaming service DIRECTV NOW to AT&T TV NOW, and just last week rolled out a brand-new TV service, AT&T TV, in 10 test markets.
While DIRECTV NOW (aka AT&T TV NOW) is meant to compete with other over-the-top streaming services like Dish’s Sling TV, Hulu with Live TV, YouTube TV and others, the new AT&T TV is a more conventional — though still “over-the-top” — option that can work with any broadband connection.
However, it locks in customers to two-year contracts, requires a set-top box and has packages that range from $60-$80 per month, much like a traditional TV subscription.
Elsewhere at AT&T, its WarnerMedia division is working a streaming service of its own, HBO Max, which is meant to battle more directly with premium offerings, like Disney+ or Apple TV+, for example. AT&T also operates a low-cost streaming service, Watch TV.
And the company continues to offer pay-TV offerings like DIRECTV (satellite service) and U-verse (cable).
It seems AT&T is due to consolidate these efforts at some point, and Donovan’s departure could signal some changes on that front, perhaps. Plus, as The WSJ reported, Donovan and WarnerMedia head John Stankey had a strained relationship at times. That could because HBO Max will end up competing with other AT&T offerings and services, the report suggested.
In addition to its various streaming ambitions, AT&T is also starting to roll out 5G, a move Donovan spearheaded. The company is also preparing for competition from new players, including what arises from a T-Mobile/Sprint merger, and from Dish’s plans to enter the wireless market.
Donovan had been CEO of AT&T Communications for two years, after having joined the company as CTO in 2008. Prior to his CEO role starting in July 2017, he had been promoted to AT&T’s chief strategy officer and group president — AT&T Technology and Operations.
He previously worked at Verisign, Deloitte Consulting and InCode Telecom Group.
Donovan, 58, was nearing the company’s retirement age of 60, but his departure was still unexpected, The WSJ also said.
“It’s been my honor to lead AT&T Communications during a period of unprecedented innovation and investment in new technology that is revolutionizing how people connect with their worlds,” said John Donovan, in a statement. “All that we’ve accomplished is a credit to the talented women and men of AT&T, and their passion for serving our customers. I’m looking forward to the future – spending more time with my family and watching with pride as the AT&T team continues to set the pace for the industry.”
“JD is a terrific leader and a tech visionary who helped drive AT&T’s leadership in connecting customers, from our 5G, fiber and FirstNet buildouts, to new products and platforms, to setting the global standard for software-defined networks,” added Randall Stephenson, AT&T’s chairman and CEO. “He led the way in encouraging his team to continuously innovate and develop their skill sets for the future. We greatly appreciate his many contributions to our company’s success and his untiring dedication to serving customers and making our communities better. JD is a good friend, and I wish him and his family all the best in the years ahead.”
Disclosure: TechCrunch is owned by Verizon by way of Verizon Media Services. This does not influence our reporting.
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