Canaan Partners gives $20 million to its two youngest employees to invest in consumer startups

Canaan Partners, the venture capital firm that has backed companies like Skybox Imaging, Match.com and Lending Club, has a new investment strategy. Called Canaan Beta, it entails setting aside $20 million of its $800 million fund to its two youngest employees, and then empowering them to make their own investment decisions as a duo. The bet is that, just how Jeremy Liew found out about Snapchat from his teenage daughter, Canaan’s youngest staffers will find other potentially lucrative opportunities.

As the speed of technological innovation continues to increase, the barriers to starting a tech company decline and the demographics in the U.S. go in the direction of non-white, Canaan envisions its Beta program being potentially game-changing for the firm. Since January, Hootan Rashidifard (28 years old) and Adina Tecklu (27 years old) have invested in five seed stage startups, with checks ranging in size from $250,000 – $500,000 each. Before Canaan Beta kicked off, Rashidifard and Tecklu worked as analysts at Canaan, where they have supported partners and founders but have not been autonomous check writers. By empowering its two youngest employees with decision-making power, Canaan hopes to better tap into the non-white, younger consumer market.

Rashidifard and Tecklu, both people of color, have joined an industry where 73 percent of investment professionals are white, according to a report from the Kapor Center for Social Impact. Meanwhile, just 12 percent of all investment professionals are women.

“We can use our backgrounds and our perspectives to see opportunities that others might overlook, which is really awesome,” Rashidifard told TechCrunch. “We might be seeing something that other people aren’t.”

More specifically, Rashidifard and Tecklu are looking at companies in blockchain, gaming, digital media, social and digital health.

“We’re not looking for incremental improvements to products or services,” Tecklu told TechCrunch. “We’re looking at category defining and category creating companies here. So the scope feels quite large but what they all have in common is that we’re really backing tenacious founders with audacious visions for what the future looks like and they’re building towards that.”

To hear more about Tecklu’s new role, and her take on all-things technology and culture, check out the latest episode of CTRL+T.

Voyage teams up with Renovo for self-driving car operating system

In the world of autonomous driving, there exists a layer between the operating system running on the car and the algorithms that make the car truly autonomous. A number of companies use ROS, an open-source middleware for robotics, for prototyping, but you can’t do driverless with it. This is where mobility startup Renovo‘s AWare OS, which is custom-built middleware specifically designed for Level 4 autonomous driving, comes in. As Voyage founder Oliver Cameron described to me, its software and hardware redundancies can ensure a level of safety that ROS can’t match. After being introduced to Renovo, Cameron said he soon realized the value Renovo can offer from the operating system and computer perspective.

“That’s where we saw a ton of value in Renovo, so we ditched our efforts internally and made this switch,” Cameron said.

Cameron envisions this being a long-term partnership with Renovo, which “takes a way a whole bunch of burden from us to manage our resources intelligently and safely think about how we roll out a driverless service.”

The plan is to integrate Renovo’s technology into Voyage’s first fleet of Chrysler Pacifica hybrid minivans. Those will first be deployed in communities in Central Fla and San Jose, Calif. Cameron says he expects to fully integrate Renovo’s technology into its stack in the next couple of months.

“What we like about Voyage is they have laser focus on who their customer is and what the opportunity it,” Renovo CEO Christopher Heiser told TechCrunch. “They stand out because they’re deploying now and have customers using it in real-world situations.”

Renovo handles low-level safety and security systems, Heiser said. That way, Renovo can focus on the infrastructure layer while Voyage can focus on the actual self-driving layer.

While companies like Uber and Waymo are taking more of a vertical approach, Voyage is taking a horizontal approach that entails partnering with other companies in the space.

“The vertical approach is one vision,” Heiser said. “You can vertically integrate, but we think there are lots of risks and challenges. If you miss one technology node, you’re kind of out of luck. With the horizontal approach, Voyage is getting to deliver something that customers like.”

Google releases first diversity report since the infamous anti-diversity memo

Google has released its first diversity report since the infamous James Damore memo and the fallout that resulted from it. Those are both long stories but the TL;DR is that Damore said some sexist things in a memo that went viral. He got fired and then sued Google for firing him. That lawsuit, however, was shot down by the National Labor Relations Board in February. Then, it turned out another employee, Tim Chevalier, alleges he was fired for advocating for diversity, as reported by Gizmodo later that month. Now, Chevalier is suing Google.

“I was retaliated against for pointing out white privilege and sexism as they exist in the workplace at Google and I think that’s wrong,” Chevalier told TechCrunch few months ago about why he decided to sue. “I wanted to be public about it so that the public would know about what’s going on with treatment of minorities at Google.”

In court, Google is trying to move the case into arbitration. Earlier this month, Google’s attorney said Chevalier previously “agreed in writing to arbitrate the claims asserted” in his original complaint, according to court documents filed June 11, 2018.

Now that I’ve briefly laid out the state of diversity and inclusion at Google, here’s the actual report, which is Google’s fifth diversity report to date and by far the most comprehensive. For the first time, Google has provided information around employee retention and intersectionality.

First, here are some high-level numbers:

  • 30.9 percent female globally
  • 2.5 percent black in U.S.
  • 3.6 percent Latinx In U.S.
  • 0.3 percent Native American in U.S.
  • 4.2 percent two or more races in U.S.

Google also recognizes its gender reporting is “not inclusive of our non-binary population” and is looking for the best way to measure gender moving forward. As Google itself notes, representation for women, black and Latinx people has barely increased. Last year, Google was 30.8 percent female, 2.4 percent black and 3.5 percent Latinx.

At the leadership level, Google has made some progress year over year, but the company’s higher ranks are still 74.5 percent male and 66.9 percent white. So, congrats on the progress but please do better next time because this is not good enough.

Moving forward, Google says its goal is to reach or exceed the available talent pool in terms of underrepresented talent. But what that would actually look like is not clear. In an interview with TechCrunch, Google VP of Diversity and Inclusion Danielle Brown told me Google looks at skills, jobs and census data around underrepresented groups graduating with relevant degrees. Still, she said she’s not sure what the representation numbers would look like if Google achieved that. In response to what a job well done would look like, Brown said:

You know as well as we do that it’s a long game. Do we ever get to good? I don’t know. I’m optimistic we’ll continue to make progress. It’s not a challenge we’ll solve over night. It’s quite systemic. Despite doing it for a long time, my team and I remain really optimistic that this is possible.

As noted above, Google has also provided data around attrition for the first time. It’s no surprise — to me, at least — that attrition rates for black and Latinx employees were the highest in 2017. To be clear, attrition rates are an indicator of how many people leave a company. When one works at a company that has so few black and brown people in leadership positions, and at the company as a whole, the unfortunate opportunity to be the unwelcome recipient of othering, micro-aggressions, discrimination and so forth are plentiful.

“A clear low light, obviously, in the data is the attrition for black and Latinx men and women in the U.S.,” Brown told TechCrunch. “That’s an area where we’re going to be laser-focused.”

She added that some of Google’s internal survey data shows employees are more likely to leave when they report feeling like they’re not included. That’s why Google is doing some work around ally training and “what it means to be a good ally,” Brown told me.

“One thing we’ve all learned is that if you stop with unconscious bias training and don’t get to conscious action, you’re not going to get the type of action you need,” she said.

From an attrition stand point, where Google is doing well is around the retention of women versus men. It turns out women are staying at Google at higher rates than men, across both technical and non-technical areas. Meanwhile, Brown has provided bi-weekly attrition numbers to Google CEO Sundar Pichai and his leadership team since January in an attempt to intervene in potential issues before they become bigger problems, she said.

via Google: Attrition figures have been weighted to account for seniority differences across demographic groups to ensure a consistent baseline for comparison.

As noted above, Google for the first time broke out information around intersectionality. According to the company’s data, women of all races are less represented than men of the same race. That’s, again, not surprising. While Google is 3 percent black, just 1.2 percent of its black population is female. And Latinx women make up just 1.7 percent of Google’s 5.3 percent Latinx employee base. That means, as Google notes, the company’s gains in representation of women has “largely been driven by” white and Asian women.

Since joining Google last June from Intel, Brown has had a full plate. Shortly after the Damore memo went viral in August — just a couple of months after Brown joined — Brown said “part of building an open, inclusive environment means fostering a culture in which those with alternative views, including different political views, feel safe sharing their opinions. But that discourse needs to work alongside the principles of equal employment found in our Code of Conduct, policies, and anti-discrimination laws.”

Brown also said the document is “not a viewpoint that I or this company endorses, promotes or encourages.”

Today, Brown told me the whole anti-diversity memo was “an interesting learning opportunity for me to understand the culture and how some Googlers view this work.”

“I hope what this report underscores is our commitment to this work,” Brown told me. “That we know we have a systemic and persistent challenge to solve at Google and in the tech industry.”

Brown said she learned “not every employee is going to agree with Google’s viewpoint.” Still, she does want employees to feel empowered to discuss either positive or negative views. But “just like any workplace, that does not mean anything goes.”

When someone doesn’t follow Google’s code of conduct, she said, “we have to take it very seriously” and “try to make those decisions without regard to political views.”

Megan Rose Dickey’s PGP fingerprint for email is: 2FA7 6E54 4652 781A B365 BE2E FBD7 9C5F 3DAE 56BD

Uber brings on Facebook product director to lead driver product

Uber has brought on Daniel Danker to serve as a senior director and head of driver product. Prior to joining Uber, he was a product director at Facebook responsible for video and Facebook Live.

“Drivers are the heart of the Uber experience, and Daniel’s passion for our mission and deep product knowledge will ensure we continue to improve and innovate on their behalf,” Uber Head of Product Manik Gupta said in a statement to TechCrunch.

Uber has been without a head of driver product since December, when Aaron Schildkrout left shortly after Uber wrapped up its 180 days of change driver campaign. As head of driver product, Danker will be responsible for planning, strategy and execution. Danker has had a long history in Silicon Valley. Between 2000 and 2010, Danker worked in a couple of roles at Microsoft, where he ended his stint as director of development and operations. He eventually left Microsoft for BBC in 2010 and then made his way to Shazam, where he served as chief product officer for nearly three years.

Danker’s addition to the team comes in lockstep with Uber Chief Brand Officer Bozoma Saint John’s impending departure. This hire also comes a couple of months after Uber unveiled its revamped driver app. The new app was designed to make it easier for drivers to access pertinent information, while ensuring they wouldn’t be distracted behind the wheel. One key added feature was the ability for drivers to recognize where surge, boost and incentivized areas are located.

“Say you’re in a slow area,” Uber Driver Experience Group Manager Yuhki Yamashita told me in April. “We might actually suggest a place to go to instead because it’s much busier. And in this way you get a little bit more information about what’s happening around you. We get to answer questions like ‘well what should you be doing next.’ And you know it feels like the app understands your current situation.”

Under the leadership of CEO Dara Khosrowshahi, Uber has placed a greater emphasis on its drivers. Its commitment to drivers kicked off in June with Uber’s 180 days of change. In that time, Uber added in-app tipping and a number of other features. At the Code Conference last month, Khosrowshahi said despite what former CEO Travis Kalanick said, Uber will never get rid of the driver.

“The face of Uber is the person sitting in the front seat,” Khosrowshahi said.

He also spoke about how Uber is looking for ways to offer benefits and insurance to its drivers.

Self-driving shuttle startup May Mobility partners with auto supplier Magna

Magna, one of the largest tier-one automotive industry suppliers in the world, has teamed up with Michigan-based startup May Mobility for the building and deployment of self-driving shuttles. The plan is to scale May Mobility’s self-driving shuttle fleet across the U.S. The initial fleet will debut for passengers on June 26 in Detroit, Mich.

What Magna brings to the table is the retrofitting of micro transit electric cars. So, while May Mobility is responsible for the design of self-driving shuttles, Magna will be responsible for the assembly. That assembly will entail  a complete rebuild with custom doors, a panoramic moonroof, sensor integration and conversion to an autonomous-ready state. On top of that, May Mobility will add its autonomous driving technology stack. 

“Magna shares our high technical standards and excitement about servicing the growing demand for self-driving vehicles to meet today’s transportation needs, while also laying the path for the future,” said May Mobility founder and CTO Steve Vozar said in a statement. “This deal demonstrates our commitment to scale and accelerate operations with a partner who understands quality and reliability in the build process, and who can match the exacting process that makes us a trusted community partner.”

Earlier this year, May Mobility raised $11.5 million in seed funding from BMW iVentures, Toyota AI and others. Next year, May Mobility plans to offer on-demand services for customers. In March, Magna partnered with Lyft to build a self-driving car platform. Magna also invested $200 million in Lyft in exchange for an equity stake.

An update on black women raising startup funding

Black women are faring a tiny bit better in the tech industry than they (we) were a couple of years ago. While the number of black women who have received more than $1 million in investment is growing, the number is still small. In 2015, there were 12 black women who had raised more than $1 million in funding, according to digitalundivided’s new ProjectDiane report. In 2017, there were 34.

Still, the median amount of funding raised by black women is $0. That’s because the majority of startups founded by black women receive no money. Of the black women who raised less than $1 million in funding, the average raised amount is $42,000. In total, according to digitalundivided, black women have raised just .0006 percent of all tech venture funding since 2009.

Meanwhile, there are more than double the amount of black female-led startups than there were in 2016. in 2016, ProjectDiane found just 84 startups led by black women. Today, there are 227 in its database.

“We are proud to be continuing the push toward a world where all women own their work through entrepreneurship, because that’s the path to real power and economic stability for Black and Latinx communities,” digitalundivided CEO Kathryn Finney said in a press release. “digitalundivided understands the impact of data on policy and startup ecosystems which is why we’re committed to using ProjectDiane to further develop data-driven programs for Black and Latinx women founders and shape the narrative about women of color in startups.”

JPMorgan Chase has also invested $500,000 in digitalundivided to support the organization’s nine-month incubator for 40 startups founded by women of color. In 2016, digitalundivided opened up an innovation center for black and Latinx women founders in Atlanta, GA. The accelerator offers training around how to build a startup, office space and mentors.

Macy’s acquires minority stake in tech retailer b8ta

Macy’s has partnered with b8ta, the retail-as-a-service startup that originally started out as a way to let people try out new tech products. Macy’s has acquired a minority stake in b8ta and will use the startup to enhance The Market, an experiential-based retail concept at Macy’s. By partnering with b8ta, Macy’s envisions being able to scale its Market concept faster, Macy’s President Hal Lawton said in a statement. For b8ta, this is an additional source of revenue.

“At b8ta, we believe physical retail will thrive as a platform for discovering new products and brands,” b8ta CEO Vibhu Norby said in a statement. “Macy’s was the best partner for b8ta to scale our pioneering retail-as-a-service model to a breadth of categories like apparel, beauty, home, and more. With b8ta’s software platform and business model, product makers can go from solely selling online to launching their products with Macy’s in a few clicks. Our platform makes it easy for makers to deploy, manage, analyze, and scale amazing offline retail experiences.”

Earlier this year, b8ta unveiled a Shopify-like solution for retail stores. Called “Built by b8ta,” the solution functions as a retail-as-a-service platform for brands that want a physical presence. b8ta’s software solution includes checkout, inventory, point of sale, inventory management, staff scheduling services and more. Netgear was the first customer to launch a Built by b8ta store this June in Silicon Valley’s Santana Row, and b8ta has plans to deploy additional stores for other brands in that area.

In April, Norby told me there were a handful of other brands that b8ta would announce soon. This year, b8ta expects anywhere from 10 to 15 companies to launch stores built by b8ta across cosmetics, apparel and furniture. It seems that Macy’s was one of those companies.

b8ta initially launched as a store that showcased products like the Gi Flybike, a folding electric bicycle, and Thync, a wearable for achieving mindfulness and boosting energy, into physical stores and enable customers to have real, tactile experiences with them.

Tesla lays off roughly nine percent of workforce

Tesla has laid off about nine percent of its employees, Electrek first reported. This is part of the reorganization Musk talked about in May on the company’s quarterly earnings call. The layoffs reportedly started on Monday and will be made official at some point today.

Tesla, which also operates SolarCity, is only laying off salaried employees. Tesla isn’t letting go any production associates, as the company is trying to ramp up Model 3 production.

“We made these decisions by evaluating the criticality of each position, whether certain jobs could be done more efficiently and productively, and by assessing the specific skills and abilities of each individual in the company,” Tesla CEO Elon Musk wrote to employees in an email obtained by TechCrunch. “As you know, we are also continuing to flatten our management structure to help us communicate better, eliminate bureaucracy and move faster.”

When Tesla acquired SolarCity in 2016, its headcount increased to more than 30,000 employees. Toward the end of 2017, Tesla had around 37,000 employees.

In February, Tesla made a deal with Home Depot to sell the PowerWall and solar panels at 800 of Home Depot’s locations. But Tesla has reportedly not renewed its contract, which means the Tesla employees working at Home Depot won’t be needed anymore. Instead, Musk said in his email that they “will be offered the opportunity to move over to Tesla retail locations.”

The hope with the restructure is to get to profitability. Last quarter, Tesla reported record revenues along with record losses. In Q1 2018, Tesla’s net losses were a record $784.6 million ($4.19 per share).

Here’s the full email Musk wrote to staffers:

As described previously, we are conducting a comprehensive organizational restructuring across our whole company. Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today.

As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9% of our colleagues across the company. These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months.

Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us. What drives us is our mission to accelerate the world’s transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable. That is a valid and fair criticism of Tesla’s history to date.

This week, we are informing those whose roles are impacted by this action. We made these decisions by evaluating the criticality of each position, whether certain jobs could be done more efficiently and productively, and by assessing the specific skills and abilities of each individual in the company. As you know, we are also continuing to flatten our management structure to help us communicate better, eliminate bureaucracy and move faster.

In addition to this company-wide restructuring, we’ve decided not to renew our residential sales agreement with Home Depot in order to focus our efforts on selling solar power in Tesla stores and online. The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations.

I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission. It is very difficult to say goodbye. In order to minimize the impact, Tesla is providing significant salary and stock vesting (proportionate to length of service) to those we are letting go.

To be clear, Tesla will still continue to hire outstanding talent in critical roles as we move forward and there is still a significant need for additional production personnel. I also want to emphasize that we are making this hard decision now so that we never have to do this again.

To those who are departing, thank you for everything you’ve done for Tesla and we wish you well in your future opportunities. To those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are a small company in one of the toughest and most competitive industries on Earth, where just staying alive, let alone growing, is a form of victory (Tesla and Ford remain the only American car companies who haven’t gone bankrupt). Yet, despite our tiny size, Tesla has already played a major role in moving the auto industry towards sustainable electric transport and moving the energy industry towards sustainable power generation and storage. We must continue to drive that forward for the good of the world.

 

Thanks,
Elon

Why Bozoma Saint John is leaving Uber for Endeavor

Earlier today, news broke that Bozoma Saint John is leaving her position as chief brand officer at Uber to head over to Endeavor. At Endeavor, an entertainment industry behemoth, Saint John will serve as chief marketing officer, working across all of Endeavor’s portfolio companies, which includes William Morris Endeavor and IMG.

I had the chance to catch up with Saint John for a little bit over the phone to learn more about why she left. For starters, “nothing horrible or terrible happened,” she told me in response to a question about if something bad caused her to leave. “I am very thankful for that because we’ve had enough of those stories. We don’t want any more of that.”

Now that we’ve gotten that out of the way, Saint John told me she wasn’t looking to leave Uber. Instead, Endeavor reached out to her and she didn’t want to pass up this opportunity to change the narrative around diversity and inclusion.

“Sometimes people think [pop culture] is superficial,” she told me. “These are where the stories that are being told are created. If we can help influence that, then that’s so much better for the entire narrative of what we need to get across.”

What we need to get across, she said, is “all the deep stuff,” like diversity, inclusion and sexual harassment.

“These are all pop culture issues,” she said. “It’s like, how can all of those things work in concert to make sure the narrative is told in a way that is powerful.”

While Saint John felt the work she was doing at Uber was important, there were other things Uber needed to take care of before she could be most impactful, she said. For example, Uber still has work to do around corporate culture, she said. As you all may remember, Uber had a horrific 2017, with reports of sexual harassment, mismanagement and an overall toxic culture. While Uber has taken some steps in the right direction, there is still work to be done, Saint John said.

“I’m not saying the corporate culture has righted itself 100 percent,” she said. “Or it’s where it needs to be today. It isn’t. There’s still a lot to be done in that regard.”

She went on to say that she never wanted to use Uber’s small wins around human resources and culture as marketing. Instead, it needed to be done because it was the right thing to do — not just to make Uber look good. Unfortunately, that left Saint John with “a huge gaping hole,” she said.

At Uber, Saint John said she had some personal work wins — like the partnership with LeBron James and Kevin Durant. She pointed to how powerful it was when James spoke about being a black man in America.

“I do feel very good about the stuff I was able to do there, but I know I’ll be able to do much more impactful work right now at Endeavor,” Saint John said.

As CMO at Endeavor, Saint John said she envisions being able to impact storytelling in a new type of way. And as industries, including Hollywood, battle with issues around sexual harassment and toxic work environments, Saint John said she wants to be part of crafting the solution — whether or not it’s part of her job.

“Unfair or not — as a black woman, as you know — when you’re in the job, it doesn’t matter what job you’re doing,” she said. “You are sometimes forcibly in the center of the conversation and sometimes, unfairly, given the reigns to fix it, quote unquote. So while I don’t feel the responsibility of actually doing that job — because there are people whose job that is — I do still feel the responsibility of contributing and creating solutions for the company I’m in and the industry for which I work, which is Hollywood.”

Uber’s chief brand officer, Bozoma Saint John, has left

Bozoma Saint John has left Uber for entertainment company Endeavor, Recode first reported. Saint John’s employment at Uber came in the midst of the company’s scandals around sexual harassment, management issues and toxic culture.

“I want to thank Boz for her contributions over the last year,” Uber CEO Dara Khosrowshahi told TechCrunch in an emailed statement. “Boz joined Uber at a time when the company was hurting—but her energy, optimism and creativity have been a key part of our ongoing turnaround. Endeavor is lucky to have her, and I’m excited to watch her work in her new role.”

Before joining Uber, Saint John made a name for herself at Apple, where she led the company’s global consumer marketing division for Apple Music and iTunes. Saint John joined Beats Electronics only a few months before Apple bought the company for $3 billion.

Before that, she spent several years at PepsiCo doing music and entertainment marketing. But it wasn’t until Apple’s Worldwide Developers Conference in 2016 when the masses began to understand her talent. At Endeavor, Saint John will serve as chief marketing officer.

“Boz’s strong creative vision has the power to create cultural moments that are transformative for brands,” said Endeavor CEO Ariel Emanuel said in a statement. “We’re excited for what it means when her vision comes face-to-face with our client roster and portfolio of brands who are shaping the cultural conversation around the world every day.”