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Box hires former SAP exec as chief information security officer

Box announced today that it has hired Lakshmi Hanspal to be the company’s new chief information security officer (CISO). She boasts 20 years of security experience, including holding executive security roles at SAP Ariba and Bank of America. She also spent time in a senior role at PayPal.

In a blog post announcing the hire, the company defined her role this way: “In the role of CISO, Lakshmi will be responsible for Box’s cyber security practice, security operations and data and platform protection.”

Hanspal sees similarities in Box from her time at SAP Ariba, but she recognizes that she will face a different set of challenges. “My role at Box is similar to what I focused on at SAP Ariba with the biggest difference being Box’s geographical footprint. Box is a born in the cloud company and expanding rapidly globally, so my focus will also include securing public cloud operations (future stack) and risk transparency for our customers,” she told TechCrunch.

She said that will involve improving service maturity and sustainability through automation, while continuing to ensure the highest level of security of both Box corporate and product platforms.

Box CEO Aaron Levie indicated that security is central to everything Box does, so finding the right chief information security officer was absolutely critical. “Not only does Lakshmi bring with her an impressive and diverse leadership experience from her time at SAP, PayPal and Bank of America, but she’s an incredible team builder and culture add for Box that will take our security team to the next level,” Levie said.

Hanspal is the third woman on Box’s executive team, joining Stephanie Carullo, who was hired as chief operating officer in 2017 and chief people officer, Christie Lake.

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HQ Trivia launches HQ Words as reinstalled CEO seeks a game-changer

HQ’s expansion beyond trivia is emerging from beta, but the question is whether it’s different and accessible enough to revive the startup’s growth. HQ Words opens to everyone today with games at 6:30pm PT within the HQ Trivia app after several weeks of closed beta testing of the Wheel of Fortune-style game. The launch will be the first big move of Rus Yusupov now that he’s been officially renamed CEO a week after the tragic death of fellow co-founder and former CEO Colin Kroll, HQ confirms to TechCrunch.

“Intermedia Labs introduced the world to a category-defining product, HQ Trivia. Once again, with HQ Words, Intermedia Labs is poised to captivate the world with a revolutionary experience that will bring people together in new ways around live mobile video,” Yusupov tells us. “HQ Words is the most interactive experience we’ve ever made.”

Kroll’s passing comes at a tough time for HQ. Its daily player count has declined since it became a phenomenon a year ago. The novelty has begun to wear off, and with so many experienced trivia whizzes, cash jackpots are often split between enough people that winners only get a few bucks. Interrupting your days or nights to play at a particular time can be inconvenient compared to the legions of always-available other games. Yusupov, who was HQ’s CEO until Kroll took over in September, will have to figure out what will attract casual crosswords players and those who flocked to Zynga’s Words with Friends — the kind of disruptive thinking Kroll excelled at.

“Colin and I shared many incredible life moments over the last 7 years. We embarked on an incredible journey co-founding two breakthrough companies together – and the lessons we learned at Vine and HQ will continue to have a big impact on me. Like many relationships, we’ve also had our challenges – but it was during these challenging times that Colin’s kind soul and big heart would truly shine,” Yusupov wrote in a statement about his co-founder that was originally published by Digiday in a touching memorial post. Between building Vine and HQ together, the pair have reimagined mobile entertainment, giving millions a chance to show off their wits and creativity. “He had this incredible ability to make everyone feel special. He listened well. He thought deeply. But above all, he cared about people more than work. The driving force behind his innovations was the positive impact they would have on people and world. Colin’s innovations and inventions have changed many people’s lives for the better and will continue to impact the world for years to come.”

HQ Trivia’s co-founder and former CEO Colin Kroll passed away earlier this month

How to play HQ Words

In HQ Words, players compete live to solve word puzzles by correctly choosing which letters are hidden. You can find the game inside the existing HQ Trivia iOS and Android apps. Host Anna Roisman pluckily provides a clue and then dispenses hints as the 25-second timer for each puzzle counts down. If the clue is “gemstone” and you’re shown “_ _ _ m _ _ _”, you’ll have to tap D, I, A, O, and N in any order. Choose three wrong letters or fail to fill out the words and you lose. You’ll spin a wheel before the game starts to get one letter that’s automatically revealed each round.

Make it through 10 rounds and you and other winners get a cut of the cash prize, with the three who solved the puzzles fastest scoring a bigger chunk of the jackpot. The startup earns money through selling you extra lives inside Words, though it will probably feature sponsored games and product placement like Trivia does to pull in marketing dollars. Words will go live daily at 6:30pm Pacific after Trivia’s 6:00 game, so you can turn it into HQ hour with family and friends.

HQ Words is much more frenetic than Trivia. Rather than picking a single answer, you have to rapidly tap letters through a combination of educated and uneducated guesses. That means it really does feel more interactive, since you’re not sitting for minutes with just a sole answer tap to keep you awake. And because it doesn’t require deep and broad trivia knowledge, Words could appeal to a wider audience. The spinner also adds an element of pure luck, as a weaker player who gets to auto-reveal a vowel might fare better than a wiser player who gets stuck with a “Z” like I always seem to.

Fill in the blank

The concern is that at its core, Words is still quite similar to Trivia. They’re both real-time, elimination round-based knowledge games played against everyone for money. Both at times feel like they use cheap tricks to eliminate you. A recent Words puzzle asked you to name a noisy instrument, but the answer wasn’t “kazoo” but “buzzing kazoo” — something I’m not sure anyone has ever formally called it. Given the faster pace of interaction, even tiny glitches or moments of lag can be enough to make you lose a round. An HQ Words beta game earlier this week failed to show some users the keyboard, causing mass elimination. The pressure to get HQ’s engineering working flawlessly has never been higher.

The phrasing of some HQ Words answers seems like a stretch

HQ originally agreed to let TechCrunch interview Kroll about what makes Words different enough to change the startup’s momentum. Yusupov was supposed to fill in after Kroll was sadly found dead last Friday of an apparent drug overdose. He later declined to talk or provide written responses. That’s understandable during this time of mourning and transition. But HQ will still need to build an answer into its app. Meanwhile, Chinese clones and U.S competitors have begun co-opting the live video quiz idea. Facebook has even built a game show platform for content makers to create their own.

HQ could benefit from a better onboarding experience that lets people play a sample game solo to get them hooked and tide them over until the next scheduled broadcast. Mini-games or ways to play along after you’re eliminated could boost total view time and the value of brand sponsorships. A “quiet mode” that silences the between-round chatter and distills HQ to just the questions and puzzles might make it easier to play while multi-tasking. Head-to-head versions of Trivia and Words might help HQ feel more intimate, and there’s an opportunity to integrate peer-to-peer gambling like ProveIt trivia.  And branching out beyond knowledge games into more social or arcade-style titles would counter the idea that HQ is just for brainiacs.

Around the height of HQ’s popularity it raised a $15 million funding round at a $100 million valuation. That seems justified, given HQ will reportedly earn around $10 million in revenue this year. Gamers are fickle, though, and today’s Fortnite can wind up tomorrow’s Pokémon GO — a flash in the pan that fizzles out. Words is a great bridge to a world outside of Trivia, but HQ must evolve, not just iterate.

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HQ Trivia launches HQ Words tonight under reinstalled CEO

HQ’s expansion beyond trivia emerges from beta tonight, but the question is whether it’s different and accessible enough to revive the startup’s growth. HQ Words opens to everyone with today’s 6:30pm pacific broadcast within the HQ Trivia app after several weeks of closed beta testing of the Wheel Of Fortune-style game. The launch will be the first big move of Rus Yusupov now that’s been officially renamed CEO a week after the tragic death of fellow co-founder and former CEO Colin Kroll, HQ confirms to TechCrunch.

“Intermedia Labs introduced the world to a category defining product, HQ Trivia. Once again, with HQ Words, Intermedia Labs is poised to captivate the world with a revolutionary experience that will bring people together in new ways around live mobile video” Yusupov tells us. “HQ Words is the most interactive experience we’ve ever made.”

Kroll’s passing comes at a tough time for HQ. Its daily player count has declined since it became a phenomenon a year ago. The novelty has begun to wear off, and with so many experienced trivia whizzes, cash jackpots are often split between enough people that winners only get a few bucks. Interrupting your days or nights to play at a particular time can be inconvenient compared to the legions of always-available other games. Yusupov, who was HQ’s CEO until Kroll took over in September, will have to figure out what will attract casual crosswords players and those who flocked to Zynga’s Words With Friends — the kind of disruptive thinking Kroll excelled at.

“Colin and I shared many incredible life moments over the last 7 years. We embarked on an incredible journey co-founding two breakthrough companies together – and the lessons we learned at Vine and HQ will continue to have a big impact on me. Like many relationships, we’ve also had our challenges – but it was during these challenging times that Colin’s kind soul and big heart would truly shine” Yusupov wrote in a statement about his co-founder that was originally published by Digiday in a touching memorial post. Between building Vine and HQ together, the pair have reimagined mobile entertainment, giving millions a chance to show off their wits and creativity. “He had this incredible ability to make everyone feel special. He listened well. He thought deeply. But above all, he cared about people more than work. The driving force behind his innovations was the positive impact they would have on people and world. Colin’s innovations and inventions have changed many people’s lives for the better and will continue to impact the world for years to come.”

HQ Trivia’s co-founder and former CEO Colin Kroll passed away earlier this month

How To Play HQ Words

In HQ Words, players compete live to solve word puzzles by correctly choosing what letters are hidden. You can find the game inside the existing HQ Trivia iOS and Android apps. Host Anna Roisman pluckily provides a clue and then dispenses hints as the 25-second timer for each puzzle counts down. If the clue is “gemstone” and you’re shown “_ _ _ m _ _ _”, you’ll have to tap D, I, A, O, and N in any order. Choose three wrong letters or fail to fill out the words and you lose. You’ll spin a wheel before the game starts to get one letter that’s automatically revealed each round.

Make it through ten rounds and you and other winners get a cut of the cash prize, with the three who solved the puzzles fastest scoring a bigger chunk of the jackpot. The startup earns money through selling you extra lives inside Words, though it will probably feature sponsored games and product placement like Trivia does to pull in marketing dollars. Words will go live daily at 6:30pm pacific after Trivia’s 6:00 game, so you can turn it into HQ hour with family and friends.

HQ Words is much more frenetic than Trivia. Rather than picking a single answer, you have to rapidly tap letters through a combination of educated and uneducated guesses. That means it really does feel more interactive since you’re not sitting for minutes with just a sole answer tap to keep you awake. And because it doesn’t require deep and broad trivia knowledge, Words could appeal to a wider audience. The spinner also adds an element of pure luck, as a weaker player who gets to auto-reveal a vowel might fare better than a wiser player who gets stuck with a “Z” like I always seem to.

Fill In The Blank

The concern is that at its core, Words is still quite similar to Trivia. They’re both real-time, elimination round-based knowledge games played against everyone for money. Both at times feel like they use cheap tricks to eliminate you. A recent Words puzzle asked you to name a noisy instrument, but the answer wasn’t “kazoo” but “buzzing kazoo” — something I’m not sure anyone has ever formally called it. Given the faster pace of interaction, even tiny glitches or moments of lag can be enough to make you lose a round. An HQ Words beta game earlier this week failed to show some users the keyboard, causing mass elimination. The pressure to get HQ’s engineering working flawlessly has never been higher.

The phrasing of some HQ Words answers seems like a stretch

HQ originally agreed to let TechCrunch interview Kroll about what makes Words different enough to change the startup’s momentum. Yusupov was supposed to fill in after Kroll was sadly found dead last Friday of an apparent drug overdose. He later declined to talk or provide written responses. That’s understandable during this time of mourning and transition. But HQ will still need to build an answer into its app. Meanwhile, Chinese clones and US competitors have begun co-opting the live video quiz idea. Facebook has even built a game show platform for content makers to create their own.

HQ could benefit from a better onboarding experience that lets people play a sample game solo to get them hooked and tide them over until the next scheduled broadcast. Mini-games or ways to play along after you’re eliminated could boost total view time and the value of brand sponsorships. A “quiet mode” that silences the between-round chatter and distills HQ to just the questions and puzzles might make it easier to play while multi-tasking. Head-to-head versions of Trivia and Words might help HQ feel more intimate, and there’s an opportunity to integrate peer-to-peer gambling like ProveIt trivia.  And branching out beyond knowledge games into more social or arcade-style titles would counter the idea that HQ is just for brainiacs.

Around the height of HQ’s popularity it raised a $15 million funding round at a $100 million valuation. That seems justified given HQ will reportedly earn around $10 million in revenue this year. Gamers are fickle, though, and today’s Fortnite can wind up tomorrow’s Pokemon Go — a flash in the pan that fizzles out. Words is a great bridge to a world outside of Trivia, but HQ must evolve not just iterate.

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LG replaces the head of its struggling mobile business after just one year

Mission impossible: A new executive at LG is charged with fixing the company’s long-time loss-making smartphone division following a leadership change.

Hwang Jeong-hwan took the job as president of LG Mobile Communications last October, and this week LG announced that he will be replaced by Brian Kwon, who is head of LG’s hugely profitable home entertainment business, starting December 1.

“Mr. Kwon played a critical role in transforming LG’s TV, audio and PC business into category leaders and his knowledge and experience in the global marketplace will be instrumental in continuing LG’s mobile operations turnaround,” LG wrote in an announcement.

The company said Jeong-hwan had “successfully bolstered the operation’s quality assurance and product development efficiency.”

Those are interesting words; none of them mention the crisis that has seen LG’s mobile business continue to post big losses. This year to date, it lost the wider company some $410 million, including a $130.5 million net loss in the last quarter. In contrast, Kwon’s unit was the standout performer of the quarter, generating total sales of 3.71 trillion RKW ($3.31 billion) and a 325.1 billion KRW ($289.9 million) profit.That burn rate was cut during Hwang Jeong-hwan’s tenure, but it seems like there’s still much work to be done. Kwon — who LG describes as a “turnaround expert” — will combine his new role at the mobile business with his existing position as president of LG’s Home Entertainment Company. Hwang Jeong-hwan will move on to lead the company’s “Convergence Business Development Office.”

LG has also shuffled at the top of the tree. CEO Jo Seong-jin will “focus more on strategy and planning for the future,” with president and CFO David Jung taking over a number of day-to-day responsibilities. LG has also restructured its vehicle component and business services divisions.

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Meet Uber’s newly promoted chief product officer, Manik Gupta

Manik Gupta got his first taste of solving logistics nightmares when, fresh out of college, he was delivering Palm Pilots around Singapore. He’d started a precursor to Groupon called BuyItTogether. “We were a full-stack marketplace where we were also delivering the goods. That’s what caused us to not have good profit margins. Actually, zero profit margins,” he recalls with a laugh.

His new gig isn’t earning profits either. Uber lost nearly $1 billion last quarter. But the company sees Gupta’s experience with delivery and maps as crucial to building an app that caters to people’s every desire so they never stray and keep earning it money. That’s why today Uber announced that it’s promoted its VP of maps and marketplace Manik Gupta to become its new chief product officer.

“We look at ourself at Uber as the starting point of all your transportation needs” Gupta tells me. “Here’s a company that’s causing this interesting change in user behavior. With my own knowledge and capability, I thought I could help the company get to the next level of understanding the real world, which is very different from digital habits.” His first big projects will be augmenting GPS for more accurate pickups and making Uber’s new rider and driver loyalty program work in every market.

From entrepreneurship to the massive supply chain of HP, to the top of Google India and now at Uber, Gupta is one of those technologists who lives to eliminate frustration. He framed nearly every question I asked him in the sense of problems and solutions. In the messy physical realm of clogged streets, that mentality goes a long way.

“I grew up in India and things weren’t always very structured” Gupta says when asked where that philosophy came from. “I learned to manage uncertainty and the importance of having a Plan B at a very early age. I faced a lot of real-time micro-problems needing micro-solutions and I guess I’ve honed this skill over time.”

Back in 1999 with BuyItTogether, there were no logistics networks. “We couldn’t get the retailers to do the delivery themselves. So we had to do it,” Gupta remembers, seeming like he’s still a bit exhausted by the experience. He eventually sold BuyItTogether to a Norwegian company called CoShopper and spent a few years bringing the service to Europe. “That was my first foray into doing things in the real world and being focused how we can move things from point A to point B as fast as possible.”

Manik Gupta’s first startup, the very 1990s “BuyItTogether”

From there he joined Hewlett Packard as it struggled to match Dell’s direct-to-consumer sales model, which he says “required building tons of muscles for HP.” After getting an MBA, he joined Google India in Bangalore. “My first week, my manager asked me what are the things I’m interested in, and told me ‘There’s something called Maps that no one seems to be owning. Do you want to work on that?’”

That opportunity would set him on the path to Uber. He launched Google Maps in India and managed MapMaker, the crowdsourcing tool that gave Google feet on the ground in tiny towns around the world. Gupta moved to Mountain View in 2011 to oversee Google’s push to make its own maps, which after seven years at the company set him up to join as Uber’s VP of maps and marketplace in 2015.

Now after nearly three years, and spending the last five months filling in since Uber’s VP of Product Daniel Graf left, Gupta is in the top product spot at Uber. Its previous CPO Jeff Holden who’d focused on flying cars left in May. Gupta is humble about the new gig, repeating “I’m here to help,” rather than to lead or become some tech luminary. He seems happy leaving that to Uber’s CEO Dara Khosrowshahi

Knowing that Uber is spread across so many culturally distinct places, Gupta wants his teams to build what’s right for the world around them rather than trying to make Uber the same everywhere. “One of the things I learned back at Google is that you really have to empower teams that are locally situated.” For example, the India team was fully responsible for the development of its new Uber Lite app for emerging markets with slow connections and old phones.

One thing I hope he develops a coherent cross-border strategy for is helmets. With Uber’s bikes and scooters proliferating, people around the world are increasingly hopping on and hopping off. But the spontaneous nature of the experience means many riders aren’t wearing helmets. If that practice continues, major injuries will stack up. Not only is it a moral imperative that Uber develop a helmet solution, like something collapsible or that attaches to the vehicle between rides, but its relationship with local governments will depend on keeping citizens safe.

As for Gupta’s personal roadmap, he’s concentrating on rolling out the Uber Rewards rider loyalty and Uber Pro driver loyalty initiatives. “Both of these programs are just getting started, so I’m focused on getting them installed in the communities we serve.”

Drawing on his Google Maps experience, Gupta is developing a new way to make sure drivers and riders can always find each other.We’re rethinking GPS to solve a major pain point for riders and drivers: pick up location. These locations are particularly tricky for GPS to find when they’re in “urban jungles” or areas with a lot of tall buildings” Gupta explains. “The technology we’re piloting in a handful of cities improves GPS performance in these cities by using maps and satellite signal strengths to help drivers find pick up points more easily.” The means you might not have to run across four lanes of traffic to get to your ride.

But knowing Uber’s history of culture issues, Gupta wants to ensure his team lives by Dara’s new mantra of ‘Do the right thing. Period.’ “This is a super important topic as well. I believe that the way you set culture starts at the top. Dara has been a phenomenal agent of change within the company. Over the course of this year we have attracted excellent talent for the product team — from the Facebooks and Googles of the world. We have this melting pot of people from all different backgrounds.” To build for everyone, he knows each of those voices must be heard.

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Facebook Lasso app lead Brady Voss leaves for Netflix right after launch

Facebook Lasso has a steep uphill climb ahead as it hopes to chase the musical video app it cloned, China’s TikTok (which merged with Musically). Lasso lets you overlay popular songs on 15-second clips of you lip syncing, dancing or just being silly — kind of like Vine with a soundtrack. It’s off to a slow start since launching Friday, having failed to reach the overall app download charts as it falls from No. 169 to No. 217 on the U.S. iOS Photo and Video App chart, according to App Annie. Sensor Tower estimates Lasso has been downloaded fewer than 10,000 times across both iOS and Android.

Forme Facebook Lead Product Designer Brady Voss

And now one of the Lasso team’s bosses, Brady Voss, is leaving Facebook for a job at Netflix. He’d spent five years as a lead product designer at Facebook working on standalone apps like Hello and major feature launches like Watch, Live, 360 video and the social network’s smart TV app. He previously designed products for TiVo and Microsoft’s Xbox.

“After five life-changing years at Facebook, my last day will be this Friday, 11/16,” Voss wrote on Facebook. “Following our launch of our new app, Lasso, a project I’ve been working on for a while now, the timing works well to explore what’s coming next…. As for what’s next? I have accepted a position at Netflix in Los Gatos, California.” A Facebook spokesperson responded that “Yes, I can confirm that Brady is leaving Facebook.”

Voss added some color about joining Facebook, noting, “There was actually a discussion about whether or not I’d be a great culture fit because I wore a tie to my interviews–which is funny because we don’t believe dressing like that is what enables people to bring their best everyday. Thankfully, they saw past the common clichés–because suits and ties are not me.” As for Facebook’s troubles, he wrote that “I was even there for the big freak out moments along the way–we’ll keep them unnamed 🙃”, which could refer to his work on Facebook Live that spawned big problems with real-time broadcasts of violence and self-harm.

While it’s reasonable for anyone to want a change of pace after five years, especially after the brutal year Facebook’s had in the press, his departure just a week after Lasso’s launch doesn’t inspire a ton of confidence in the app’s trajectory. It might have been a sensible stopping point haven gotten the app out the door, but you’d also think that if Lasso had a real shot at popularity, he’d have wanted to stick around to oversee that growth.

Lasso’s first rodeo

TechCrunch first broke the news last month that Lasso was in development, citing Voss as one of the team’s heads. But in the meantime, the world’s highest valued private startup ByteDance managed to push its TikTok app past Instagram, Snapchat and YouTube on the download charts. It’s now at No. 5 on the U.S. iOS overall charts and No. 1 in Photo and Video. Facebook seems to have shooed Lasso out a little prematurely before losing more ground, given it lacks many of the augmented reality features and filters found in Instagram, Snapchat and TikTok .

Facebook Lasso

TechCrunch asked the company for some more details about the Lasso roadmap. A spokesperson told me that Facebook will be evolving Lasso and adding new features with time, and may test a feature for uploading videos instead of being restricted to shooting them in-app right now. Voss’ departure post includes a “Made With Lasso” video featuring an augmented reality effect with him conjuring Facebook Like thumbs-ups out of his hand. [Update: He tells me he added this in AfterEffects, but it shows that Facebookers think AR should be part of Lasso.]

As for monetization, Facebook tells me there are no plans to show ads right now. Typically, Facebook tries to build products to have hundreds of millions of users before it potentially endangers growth by layering in revenue generators. I asked if users might be able to pay their favorite video creators with tips, and the company says that while that’s not currently available, it hopes to explore ways to allow creators to earn money in the future. Instagram said the same thing about IGTV when it launched in June, and we still haven’t heard anything on that front. Facebook likely won’t be able to lure creators to new platforms with smaller audiences than their main channels unless it’s going to let them earn money there.

If Facebook is truly serious about challenging TikTok, it may need to build closer ties between Lasso and Instagram. Facebook left its previous standalone video apps like Slingshot and Poke out to dry, eventually shuttering them after providing little cross-promotion. Given the teen audience Lasso craves is already on Instagram, it will be fascinating to see if former VP of News Feed Adam Mosseri, who’s now running Instagram, will insert some links to Lasso. A Facebook spokesperson says that Facebook may investigate promoting Lasso on its other apps down the line.

And one final concern regarding Lasso is that Facebook isn’t doing much to prevent underage kids below 13 from getting on the app. Tweens flocked to Musically, leading to some worrisome content. Ten-year-old girls in revealing clothing singing along to the scandalous lyrics of pop songs frequently populated the Musically leaderboard. That prompted me to question Musically CEO Alex Zhu onstage at TechCrunch Disrupt London 2015 about whether his app violated the Child Online Privacy Protection Act (COPPA) that prohibits online services from collecting photos or videos of kids under 13. He denied wrongdoing with flimsy excuses, claiming parents were always aware of what kids were doing, and stormed out of the backstage area after our talk.

So I asked Facebook how it would prevent such issues on Lasso, where all content is public and adults can follow children. A spokesperson told me that you need a Facebook or Instagram account to sign up for Lasso, and those services require people to be 13 older. But “require” isn’t exactly the right word. It asks people to state they’re of age, but doesn’t do anything to confirm that. Lasso does have a report button for flagging inappropriate content, and the company claims to be taking privacy and safety seriously.

But if the tech giants are going to build apps purposefully designed for young audiences, asking for kids to merely promise they’re old enough to join may not be sufficient.

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Facebook reorganizes Oculus for AR/VR’s long-haul

Facebook is again looking to whip Oculus into shape for its 10-year journey towards making virtual reality mainstream. According to two sources, Facebook reorganized its AR and VR team this week from a divisional structure focused around products to a functional structure focused around technology areas of expertise. While no one was laid off, the change could eliminate redundancies by uniting specialists so they can iterate towards long-term progress rather than being separated into groups dedicated to particular gadgets.

Facebook confirmed the reorg to TechCrunch, with a spokesperson providing this statement: “We made some changes to the AR/VR organization earlier this week. These were internal changes and won’t impact consumers or our partners in the developer community.” Oculus CTO John Carmack and Oculus co-founder/newly-promoted Head of PC VR Nate Mitchell will remain in their leadership positions within VP of AR/VR Andrew ‘Boz’ Bosworth’s hardware wing of the company.

The shift obviously communicates that Facebook believes Oculus could be running more effectively. Organizing the company around areas of expertise rather than broader divisions is probably more appropriate for a moonshot effort that can’t afford redundancies, on the other hand, keeping expertise siloed could isolate new approaches and advancements from reaching other teams. As the company builds out its first full lineup of headsets, there seems to be significant overlap in the tech problems and products bring tackled by those working on mobile and PC products.

TechCrunch reported earlier this week that the company is planning to release a new Rift headset as early as 2019, possibly called the Rift S, which will featured upgraded displays and an inside-out tracking system. The company’s “Rift 2” project, codenamed Caspar, was left behind in the reorganization, a source tells us. We can’t confirm whether any other products or concepts have been shelved.

While an immersive virtual world that users can hang out and communicate in certainly seems to fit Facebook’s broader mission, the company has spent the better part of the past few years deciding how a costly, ambitious venture like Oculus fits into its corporate structure.

First, things went smoothly. The company and its empowered co-founders were building out a developer network and prepping for the launch of their Rift headset after creating a successful partnership with Samsung for the Gear VR. Then, the company’s good fortune turned as the Rift headset was racked by expensive delays and Oculus failed to ship the company’s Touch motion controllers at launch losing some initial ground to HTC. 

By the end of 2016, it was announced that co-founder Brendan Iribe was out as CEO and that the company would be reorganizing around divisions focused on things like PC VR, mobile and content with Xiaomi exec Hugo Barra coming aboard as VP of VR to lead the new effort working directly beneath CEO Mark Zuckerberg. An additional layer of oversight has been built in since then, with Bosworth was put in charge of the company’s consumer hardware ambitions with Oculus as a central pillar. His title is now VP of AR/VR.

The absorption of Oculus deeper into Facebook’s corporate structure was a trend that soon replicated itself as the company looked to rein in the independent teams under a more cohesive vision. The culmination of this was a major executive reshuffle earlier this year that changed the landscape for how divisions within the company were managed.

Now, they’re changing things up even more.

Oculus Go

The new structure sounds like it could coordinate efforts around more general lines like hardware and software allowing insights to flow more intuitively across Facebook’s planned devices.

Given the slow adoption of VR and engineering challenges of AR headsets, which at TechCrunch’s LA conference last month Facebook’s head of AR Ficus Kirkpatrick confirmed it was building, this structure could help Oculus iterate its way to long-term success rather than just getting the next product out the door.

If Facebook is going to beat companies solely focused on AR like Magic Leap, and potential incumbent invaders like Apple if it so chooses, it needs to maximize efficiency. And if it’s going to get both developers and users excited about these next-generation computing platforms, it will have to produce products that make cutting-edge technologies feel unified and accessible. That’s a lot easier when everyone’s not stepping on each other’s virtual shoes.

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Lime will open brick-and-mortar scooter ‘lifestyle stores’

How can Lime differentiate its scooters and bikes from the piles of Birds and Spins filling Los Angeles sidewalks? Apparently with a physical storefront where it can convince customers of the wonders of on-demand mobility. According to a job listing from Lime seeking a “Retail Store Manager,” the startup plans to open a “lifestyle brand store in Santa Monica”.

[Update: Following the publication of this article, Lime responded to our inquiry, telling TechCrunch “In the coming year, Lime will be opening brick & mortar storefronts in major US and international markets, starting with Santa Monica, California. Locations will place heavy importance on community engagement, rider education, and brand experience.”]

Lime will rent vehicles directly from the store as well as charge them, with the full-time manager’s role including “monitoring inventory levels” as well as daily operations, and employee recruiting. They’ll also be throwing live events to build Lime’s hype. Given the company is calling this a lifestyle store, the focus will likely be on showing how Lime’s scooters and bikes can become part of people’s lives and enhance their happiness, rather than on maximizing rental volume.

A rendering of Lime’s new office it’s building in San Francisco. The design could hint at what Lime wants to do with its retail store branding.

TechCrunch has confirmed Lime’s plans for the store, and that the deal to build it came through Lime’s investor Fifth Wall Ventures that arranges partnerships between tech companies and real estate developers. As for what will happen at the store, Fifth Wall’s Adam Demuyakor tells me “There will be deployment of scooters, charging of scooters, and some sales of apparel and accessories that are related. There will be demos, tutorials, and presentations on how to be safe.” Growing Lime’s traction is critical to Fifth Wall, which led the startup’s $70 million Series B extension in February, and joined its $335 million Series C in July.

The big motive here is for Lime to repair relationships with the local community. Demuyakor tells me “when e-mobility companies appeared, some people really loved it, but some people said ‘you dropped a bunch of scooters on my sidewalk’” in what he called a “really irresponsible manner”. But with a physical store front, Lime will have human faces to push its side of the story. “Lime would have an opportunity to control the narrative, engage with the local community, and invest in Santa Monica. They can make it clear that they care about the constituency there . . . Educate them on the benefits, educate them on safety, and provide helmets.” That could counter the idea that scooters just get in the way and are an urban eye sore. “The narrative took on legs of its own” Demuyakor explains.

Fifth Wall worked on the Lime retail store deal with one of its core LPs, Macerich, the third-largest owner of shopping malls in the US. Lime will become the exclusive distributor of scooters at the Macerich-owned open-air mall Santa Monica place. The idea is that by linking up with Macerich, Lime will be able to deploy and charge scooters “where people are coming and going from the mall” Fifth Wall co-founder and managing partner Brendan Wallace tells TechCrunch. He explains that scooter companies have thought about expansion too purely from the standpoint of acheiving market saturation. “You have to partner with local organizations both public and private, and real estate organizations because real estate developers are typically the most politically influential.”]

The listing was first spotted by Nathan Pope, a transportation researcher for consultancy Steer, and later by Cheddar’s Alex Heath. We’ve reached out to Lime and will update if we hear back from the company. Glassdoor shows that the store manager job was posted more than 30 days ago, and the site estimates the potential salary at $41,000 to $74,000.

The sheer number of Lime scooters in Santa Monica where the store will arise is already staggering. Supply doesn’t seem to be bottlenecking as it is in some other cities. Instead, it’s the fierce competition from hometown startups like local favorite Bird that Lime wants to overcome through brick-and-mortar marketing. Often you’ll see scooters from Lime and Bird lined up right next to each other. And with similarly cheap pricing, the decision of which to use comes down to brand affinity. According to Apptopia, Bird’s monthly U.S. downloads surpassed Lime’s in July for the first time ever, despite Lime offering bikes as well as scooters.

There are plenty of people who still have never tried an on-demand electric scooter, and going through the process of renting, unlocking and riding them might be daunting to some. If employees at a physical store can teach people that it’s not too difficult to jump aboard, Lime could become their default scooter. This, of course, comes with risks too, as electric scooters can be dangerous to the novice or uncoordinated. More aggressive in-person marketing might pull in users who were apprehensive about scooting for the right reason — concerns about safety. And there’s also the issue of overhead costs. Beyond charging and repair facilities near its major markets, brick-and-mortar stores could crank up the burn rate on Lime’s $467 million in funding.

As cities figure out how to best regulate scooters, I hope we see a focus on uptime, aka how often the scooters actually function properly. It’s common in LA to rent a scooter, then discover the handlebar is loose or the acceleration is sluggish, end the ride and rent another scooter from the same brand or a competitor in hopes of getting one that works right. I ditched several Lime scooters like this while in LA last week.

Regulators should inquire about what percentage of scooter company fleets are broken and what percentage of rides end within 90 seconds of starting, which is typically due to a malfunctioning vehicle. Cities could then award permits to companies that keep their fleets running, rather than that litter the streets with massive paper weights, or worse, vehicles that could crash and hurt people. Scooters are fun, cheap and therefore accessible to more people than Ubers, and reduce traffic. But unless startups like Lime put a bigger focus on helmets and cautious riding behavior, we could trade congestion on the roads for congestion in the emergency room. Hopefully the retail store will drive closer ties between Lime and city governments to prioritize safety.

This article has been updated to include Lime’s statement as well as comments from Fifth Wall Ventures.

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Shasta Ventures is doubling down on security startups with 3 new hires

Early-stage venture capital firm Shasta Ventures has brought on three new faces to beef up its enterprise software and security portfolio amid a big push to “go deeper” into cybersecurity, per Shasta’s managing director Doug Pepper.

Balaji Yelamanchili (above left), the former general manager and executive vice president of Symantec’s enterprise security business unit, joins as a venture partner on the firm’s enterprise software team. He was previously a senior vice president at Oracle and Dell EMC. Pepper says Yelamanchili will be sourcing investments and may take board seats in “certain cases.”

The firm has also tapped Salesforce’s former chief information security officer Izak Mutlu (above center) as an executive-in-residence, a role in which he’ll advise Shasta portfolio companies. Mutlu spent 11 years at the cloud computing company managing IT security and compliance.

InterWest board partner Drew Harman, the final new hire, has joined as a board partner and will work closely with the chief executive officers of Shasta’s startups. Harman has worked in enterprise software for 25 years across a number of roles. He is currently on the boards of the cloud-based monetization platform Aria, enterprise content marketing startup NewsCred, customer retention software provider Totango and others.

There’s no area today that’s more important than cybersecurity,” Pepper told TechCrunch. “The business of venture has gotten increasingly competitive and it demands more focus than ever before. We aren’t looking for generalists, we are looking for domain experts.”

Shasta’s security investments include email authentication service Valimail, which raised a $25 million Series B in May. Airspace Systems, a startup that built “kinetic capture” technologies that can identify offending unmanned aircrafts and take them down, raised a $20 million round with participation from Shasta in March. And four-year-old Stealth Security, a startup that defends companies from automated bot attacks, secured an $8 million investment from Shasta in February.

The Menlo Park-based firm filed to raise $300 million for its fifth flagship VC fund in 2016. A year later, it announced a specialty vehicle geared toward augmented and virtual reality app development. With more than $1 billion under management, the firm also backs consumer, IoT, robotics and space-tech companies across the U.S.

In the last year, Shasta has promoted Nikhil Basu Trivedi, Nitin Chopra and Jacob Mullins from associate to partner, as well as added two new associates, Natalie Sandman and Rachel Star.

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Zenefits’ Parker Conrad returns with Rippling to kill HR & IT busywork

Parker Conrad likes to save time, even though it’s gotten him in trouble. The former CEO of Zenefits was pushed out of the $4.5 billion human resources startup because he built a hack that let him and employees get faster insurance certifications. But 2.5 years later, he’s back to take the busy work out of staff onboarding as well as clumsy IT services like single sign-on to enterprise apps. Today his startup Rippling launches its combined employee management system, which Conrad calls a much larger endeavor than the minimum viable product it announced while in Y Combinator’s accelerator 18 months ago.

“It’s not an HR system. It’s a level below that,” Conrad tells me. “It’s this unholy, crazy mashup of three different things.” First, it handles payroll, benefits, taxes and PTO across all 50 states. “Except Syria and North Korea, you can pay anyone in the world with Rippling,” Conrad claims. That makes it a competitor with Gusto… and Zenefits.

Second, it’s a replacement for Okta, Duo and other enterprise single-sign on security apps that authenticate staffers across partnered apps. Rippling bookmarklets make it easy to auth into over 250 workplace apps, like Gmail, Slack, Dropbox, Asana, Trello, AWS, Salesforce, GitHub and more. When an employee is hired or changes teams, a single modification to their role in Rippling automatically changes all the permissions of what they can access.

And third, it handles computer endpoint security like Jamf. When an employee is hired, Rippling can instantly ship them a computer with all the right software installed and the hard drive encrypted, or have staffers add the Rippling agent that enforces the company’s security standards. The system is designed so there’s no need for an expert IT department to manage it.

“Distributed, fragmented systems of record for employee data are secretly the cause of almost all the annoying administrative work of running a company,” Conrad explains. “If you could build this system that ties all of it together, you could eliminate all this crap work.” That’s Rippling. It’s opening up to all potential clients today, charging them a combined subscription or à la carte fees for any of the three wings of the product.

Conrad refused to say how much Rippling has raised total, citing the enhanced scrutiny Zenefits’ raises drew. But he says a Wall Street Journal report that Rippling had raised $7 million was inaccurate. “We haven’t raised any priced VC rounds. Just a bunch of seed money. We raised from Initialized Capital, almost all the early seed investors at Zenefits and a lot of individuals.” He cited Y Combinator, YC Growth Fund, YC’s founder Jessica Livingston and president Sam Altman, other YC partners, as well as DFJ and SV Angel.

“Because we were able to raise a bunch of money and court great engineers . . . we were able to spend a lot of time building this fundamental technology,” Conrad tells me. Rippling has about 50 team members now, with about 40 of them being engineers, highlighting just how thoroughly Conrad wants to eradicate manual work about work, starting with his own startup.

The CEO refused to discuss details of exactly what went down at Zenefits and whether he thought his ejection was fair. He was accused of allowing Zenefits’ insurance brokers to sell in states where they weren’t licensed, and giving some employees a macro that let them more quickly pass the online insurance certification exam. Conrad ended up paying about $534,000 in SEC fines. Zenefits laid off 430 employees, or 45 percent of its staff, and moved to selling software to small-to-medium sized businesses through a network of insurance brokers.

But when asked what he’d learned from Zenefits, Conrad looked past those troubles and instead recalled that “one of the mistakes that we made was that we did a lot stuff manually behind the scenes. When you scale up, there are these manual processes, and it’s really hard to come back later when it’s a big hard complicated thing and replace it with technology. You get upside down on margins. If you start at the beginning and never let the manual processes creep in . . . it sort of works.”

Perhaps it was trying to cut corners that got Conrad into the Zenefits mess, but now that same intention has inspired Rippling’s goal of eliminating HR and IT drudgery with an all-in-one tool.

“I think I’m someone who feels the pain of that kind of stuff particularly strongly. So that’s always been a real irritant to me, and I saw this problem. The conventional wisdom is ‘don’t build something like this, start with something much smaller,’ ” Conrad concludes. “But I knew if I didn’t do this, that no one else was gong to do it and I really wanted this system to exist. This is a company that’s all about annoying stuff and making that fucking annoying stuff go away.”

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