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White House refuses to endorse the ‘Christchurch Call’ to block extremist content online

Posted by on May 15, 2019 in Australia, California, Canada, censorship, Facebook, France, freedom of speech, Google, hate crime, hate speech, New Zealand, Social Media, Software, TC, Terrorism, Twitter, United Kingdom, United States, White House, world wide web | 0 comments

The United States will not join other nations in endorsing the “Christchurch Call” — a global statement that commits governments and private companies to actions that would curb the distribution of violent and extremist content online.

“While the United States is not currently in a position to join the endorsement, we continue to support the overall goals reflected in the Call. We will continue to engage governments, industry, and civil society to counter terrorist content on the Internet,” the statement from the White House reads.

The “Christchurch Call” is a non-binding statement drafted by foreign ministers from New Zealand and France meant to push internet platforms to take stronger measures against the distribution of violent and extremist content. The initiative originated as an attempt to respond to the March killings of 51 Muslim worshippers in Christchruch and the subsequent spread of the video recording of the massacre and statements from the killer online.

By signing the pledge, companies agree to improve their moderation processes and share more information about the work they’re doing to prevent terrorist content from going viral. Meanwhile, government signatories are agreeing to provide more guidance through legislation that would ban toxic content from social networks.

Already, Twitter, Microsoft, Facebook and Alphabet — the parent company of Google — have signed on to the pledge, along with the governments of France, Australia, Canada and the United Kingdom.

The “Christchurch Call” is consistent with other steps that government agencies are taking to address how to manage the ways in which technology is tearing at the social fabric. Members of the Group of 7 are also meeting today to discuss broader regulatory measures designed to combat toxic combat, protect privacy and ensure better oversight of technology companies.

For its part, the White House seems more concerned about the potential risks to free speech that could stem from any actions taken to staunch the flow of extremist and violent content on technology platforms.

“We continue to be proactive in our efforts to counter terrorist content online while also continuing to respect freedom of expression and freedom of the press,” the statement reads.”Further, we maintain that the best tool to defeat terrorist speech is productive speech, and thus we emphasize the importance of promoting credible, alternative narratives as the primary means by which we can defeat terrorist messaging.”

Signatories are already taking steps to make it harder for graphic violence or hate speech to proliferate on their platforms.

Last night, Facebook introduced a one-strike policy that would ban users who violate its live-streaming policies after one infraction.

The Christchurch killings are only the latest example of how white supremacist hate groups and terrorist organizations have used online propaganda to create an epidemic of violence at a global scale. Indeed, the alleged shooter in last month’s attack on a synagogue in Poway, Calif., referenced the writings of the Christchurch killer in an explanation for his attack, which he published online.

Critics are already taking shots at the White House for its inability to add the U.S. to a group of nations making a non-binding commitment to ensure that the global community can #BeBest online.


Source: The Tech Crunch

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Shiok Meats takes the cultured meat revolution to the seafood aisle with plans for cultured shrimp

Posted by on Mar 15, 2019 in Asia, asia pacific, Australia, food and drink, India, meat, Singapore, Southeast Asia, TC, United Nations, Y Combinator | 0 comments

Rising consumer interest in alternative proteins and meat replacements has brought hundreds of millions of dollars to companies trying to grow or replace beef or chicken, but few companies have turned their attention to developing seafood alternatives.

Now Shiok Meats is looking to change that. The company has raised pre-seed financing from investors like AIM Partners, Boom Capital, and Ryan Bethencourt and is now part of the recent Y Combinator cohort presenting next week.

Co-founders Sandhya Sriram and Ka Yi Ling are both stem cell scientists working at Singapore’s Agency for Science, Technology and Research who decided to leave their cushy government posts for life in the fast lane of entrepreneurship. 

The two have set themselves a goal of creating a shrimp substitute that would be similar to what’s typically found in the freezer section of most grocery stores — and a minced shrimp-replacement for use in dumplings.

There’s a huge market for seafood across the globe, but especially in Asia and Southeast Asia where crustaceans are a huge part of the diet. Chinese consumers alone account for the consumption of some 3.6 million tons of crustaceans, according to a 2015 study from the Food and Agriculture Department of the United Nations .

Shrimp cultivation as it stands is also a pretty dirty business. The industry is constantly being criticized for poor working conditions, unsanitary farms, and ancillary environmental damage. A blockbuster report from the Associated Press revealed instances of modern slavery in the Thai seafood industry.

“We chose to start with shrimp because it’s an easier animal to deal with compared to crabs and lobsters,” says Shriram. But the company will be expanding its offerings over time to those higher-end crustaceans.

Right now, the focus is squarely on shrimp. The company’s early tests have proved successful and the company estimates that it can make a kilogram of shrimp meat for somewhere around $5,000.

While that may sound expensive, it’s still much less than many of the lab-grown meat companies are pending to produce their replacement beef.

“We’re still relatively low compared to the other clean meat companies, which are still at hundreds of thousands of dollars,” says Ling.

The company is looking to bring its first product to market in the next three-to-five years and will initially target the Asia-Pacific consumer.

That means initially selling into their home market of Singapore and expanding into Hong Kong, India and eventually, Australia.

 


Source: The Tech Crunch

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Cardinal George Pell of Australia Sentenced to Six Years in Prison

Posted by on Mar 13, 2019 in Australia, Ballarat (Australia), Child Abuse and Neglect, Francis, Melbourne (Australia), Pell, George (1941- ), Priests, Sex Crimes, Victoria (Australia) | 0 comments

The 77-year-old cardinal, once an adviser to Pope Francis, was sentenced to six years in prison by a Melbourne court on Wednesday morning.
Source: New York Times

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Boeing is moving to address potential issues in new 737s as Europe bans its plane

Posted by on Mar 12, 2019 in airline, all nippon airways, Australia, aviation, Boeing, boeing 737, Brazil, China, Donald Trump, ethiopia, Europe, European Union, Federal Aviation Administration, Indonesia, Jakarta, sensors, Singapore, TC, Transportation, United States | 0 comments

In the wake of the second fatal crash in six months involving Boeing 737 Max 8 airplanes, the European Aviation and Safety Administration is grounding the planes as Boeing said it was taking additional steps to address an issue that may have contributed to the crash.

On Sunday, a Boeing 737 Max 8 plane operated by Ethiopian Airlines crashed just minutes after takeoff, killing all 157 on board the flight. Last October, a Lion Air flight departing from Jakarta crashed in similar circumstances, killing all 189 people on board. The plane involved was also a 737 Max 8.

Responding to the incidents, the European Union Aviation and Safety Administration has banned the plane from operating in European airspace.

Here’s the statement from the EASA:

Following the tragic accident of Ethiopian Airlines flight ET302 involving a Boeing 737 MAX 8, the European Union Aviation Safety Agency (EASA) is taking every step necessary to ensure the safety of passengers.

As a precautionary measure, EASA has published today an Airworthiness Directive, effective as of 19:00 UTC, suspending all flight operations of all Boeing Model 737-8 MAX and 737-9 MAX aeroplanes in Europe. In addition EASA has published a Safety Directive, effective as of 19:00 UTC, suspending all commercial flights performed by third-country operators into, within or out of the EU of the above mentioned models.

Meanwhile, Boeing has issued a statement saying that it has been developing a software update following the Lion Air crash. “This includes updates to the Maneuvering Characteristics Augmentation System flight control law, pilot displays, operation manuals and crew training.”

Essentially, faulty sensors may have been to blame for the Lion Air crash. “The enhanced flight control law incorporates angle of attack (AOA) inputs, limits stabilizer trim commands in response to an erroneous angle of attack reading, and provides a limit to the stabilizer command in order to retain elevator authority,” Boeing said in a statement about its software update.

Essentially, the sensors think the plane is stalling and they apply an opposite remedial action which trims an airplane down, Flying Magazine columnist and small-plane pilot Peter Garrison tells me. It then takes enormous force from the pilots to hold the nose up, rendering them unable to address the problem, he adds.

“Once you are holding on to the controls for dear life you don’t have any hands left to correct the problem,” says Garrison. “You expect that confronted in an emergency the pilot will analyze what’s happening and act accordingly. Human beings don’t necessarily panic, but they lose their ability to reason clearly and to weigh alternative hypotheses when they are under basically what is a threat of death. Even though it may seem obvious that all you have to do is interrupt the autopilot, amazingly that may not occur to a pilot who is hundreds of feet off the ground and has to pull back on a control yoke with hundreds of pounds of force.”

According to Garrison, the blame on Boeing may be misplaced.

“People like to talk about this as the airplane is defective and they’re correcting it with software,” he says. “That’s all nonsense. Planes today are a mix of automatic systems — and by automatic I of course mean digital electronic systems and mechanical ones — and the natural aerodynamics of the airplane, and you can’t separate these.”

If Boeing had made any mistakes, Garrison believes it was in the company’s inability to adequately communicate the problem to pilots and get them ready for taking action in the event of a malfunction.

Even in perfectly designed systems, the transition from automated controls to manual manipulation is difficult to achieve, says Garrison. “It’s not that hard to understand that automation does not make a smooth interface with human control. There’s a break there and it’s a dangerous break,” he said.

Here’s an explanation from Business Insider over the latest thinking around the Lion Air crash that provides further detail.

At the heart of the controversy surrounding the 737 Max is MCAS, the Maneuvering Characteristics Augmentation System. To fit the Max’s larger, more fuel-efficient engines, Boeing had to redesign the way it mounts engines on the 737. This change disrupted the plane’s center of gravity and caused the Max to have a tendency to tip its nose upward during flight, increasing the likelihood of a stall. MCAS is designed to automatically counteract that tendency and point the nose of the plane downward.

Initial reports from the Lion Air investigation, however, indicate that a faulty sensor reading may have triggered MCAS shortly after the flight took off. Observers fear that a similar thing may have happened in Sunday’s Ethiopian Airlines flight.

“Boeing has been working closely with the Federal Aviation Administration (FAA) on development, planning and certification of the software enhancement, and it will be deployed across the 737 MAX fleet in the coming weeks,” the company said in a statement. “The update also incorporates feedback received from our customers.”

Boeing expects the update to be completed across its fleet by April.

In the interim, U.S. politicians have been pleading with the Federal Aviation Administration to take the same steps as countries from around the globe, including the entire European Union, China, Ethiopia, Australia, Singapore and Indonesia, as well as Norwegian Air, Aeromexico, Gol Airlines from Brazil, the South Korean airline, Easair, the South African airline, Comair and others.

No less an authority on aviation than President Donald Trump has also weighed in on the crashes and attendant controversy.

Setting aside the president’s calls to return aviation to the early part of the 20th century, several aviation administrations and airlines have grounded the Boeing 737 Max.

So the FAA is among the only civil aviation administrations in the world to keep the Boeing 737 Max 8 airborne.

“An FAA team is on-site with the NTSB in its investigation of Ethiopian Airlines Flight 302. We are collecting data and keeping in contact with international civil aviation authorities as information becomes available,” the FAA said in a statement yesterday. “The FAA continuously assesses and oversees the safety performance of U.S. commercial aircraft. If we identify an issue that affects safety, the FAA will take immediate and appropriate action.”

A spokesperson for the administration said there were no other statements from the administration available at this time.

Earlier today, politicians from both sides of the aisle — including the Republican Utah Senator Mitt Romney and Democratic Senator and presidential hopeful Elizabeth Warren — pleaded with the FAA to reverse their decision, according to Politico.

“Today, immediately, the FAA needs to get these planes out of the sky,” Warren said Tuesday.

That’s not just the view of this columnist. It’s also the opinion of Ray LaHood, the former U.S. Secretary of Transportation, who grounded the 787 Dreamliner following fires in its lithium-ion battery packs in 2013.

“The flying public has to be assured that these planes are safe, and they don’t feel that way now,” LaHood told Bloomberg. “The Secretary of Transportation should announce today that these planes will be grounded until there is 100 percent assurance from Boeing that these planes are safe to fly, because unless they can give that assurance they’re not holding up their promise to be the top safety agency in the U.S.”

Such a move could be bad for Boeing. The 737 is Boeing’s most popular aircraft and the heart of the company’s fleet.

The company has been struggling to keep up with demand for its newest model of the 737, according to reports in The Seattle Times. And the new plane was Boeing’s best seller, keeping the stock buoyant.

A report from National Public Radio showed just how robust sales were for the new aircraft. It’s the fastest-selling plane that Boeing has ever produced. Expectations from executives were for the Max model to account for 90 percent of all 737 deliveries in 2019, according to a statement from the company’s chief financial officer, Gregory Smith, NPR reported.

Boeing stock is down nearly 6 percent in trading on the New York Stock Exchange.


Source: The Tech Crunch

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Airbnb agrees to acquire last-minute hotel-booking app HotelTonight

Posted by on Mar 7, 2019 in Airbnb, Australia, battery ventures, Europe, First Round Capital, forerunner ventures, Fundings & Exits, Gaest, greg greeley, HotelTonight, Lyft, M&A, Pinterest, Sam Shank, San Francisco, Startups, TC, Uber, unicorn, vacation rental, Venture Capital | 0 comments

As Airbnb gears up for its big leap into the public markets, it’s expanding its accommodations platform to include more than just treehouses and quirky homes.

Today, the company has confirmed its intent to acquire HotelTonight, the developer of a hotel-booking application that lets travelers arrange last-minute accommodations. The deal was previously reported by The Wall Street Journal, which wrote in January that negotiations for the transaction had “gone cold.”

Airbnb is expected to complete an initial public offering as soon as this year, though co-founder and chief executive officer Brian Chesky has refrained from revealing a specific timeline. Like Uber, which plans to become the ultimate transportation company, Airbnb’s long-term ambition is to build an end-to-end travel platform complete with home sharing, hotel booking, business travel arrangements, experiences and more.

Airbnb declined to disclose terms of its HotelTonight acquisition. Once the deal is complete, the HotelTonight app and website will continue to operate independently, with co-founder and CEO Sam Shank reporting to Airbnb’s president of homes, Greg Greeley.

“We started HotelTonight because we knew people wanted a better way to book an amazing hotel room on-demand, and we are excited to join forces with Airbnb to bring this service to guests around the world,” Shank said in a statement. “Together, HotelTonight and Airbnb can give guests more choices and the world’s best boutique and independent hotels a genuine partner to connect them with those guests.”

Founded in 2010, San Francisco-based HotelTonight garnered a valuation of $463 million with a $37 million Series E funding in 2017, according to PitchBook. In total, the startup has raised $131 million in venture capital funding from Accel and Battery Ventures, which have participated in nearly every funding round for HotelTonight. Other early investors include Forerunner Ventures and First Round Capital.

Airbnb, for its part, was valued at $31 billion in 2017, with a $1 billion round. In January, Airbnb said it was profitable for the second consecutive year on an EBITDA (earnings before interest, taxes, depreciation and amortization) basis.

HotelTonight offers discounts at hotels in the Americas, Europe and Australia. The company partners with hotels to offer un-sold rooms, catering to business travelers or those looking to make last-minute arrangements. The deal will make it easier for Airbnb users to book hotels without planning weeks or months in advance and will help Airbnb expand its community beyond short-term rental hosts and guests.

Airbnb introduced boutique hotels to its platform in early 2018 and has boasted its quick growth. In 2018, the business said it more than doubled the number of boutique hotels, bed and breakfasts, hostels and resorts available. Airbnb’s business travel unit, Airbnb for Work, also had quick success. Launched in 2014, it now accounts for 15 percent of bookings. In total, Airbnb offers some 5 million places to stay in 191 countries.

Airbnb is kicking off 2019 with an acquisitive streak. In January, the company acquired Danish startup Gaest, a provider of a marketplace-style platform for people to post and book venues for meetings and other work-related events. The company again declined to pinpoint the price, though given Gaest had raised just $3.5 million in equity funding, the deal pales in comparison to Airbnb’s HotelTonight acquisition.

2019 is stacking up to be a particularly busy year for unicorn IPOs, some of which were likely delayed by a weeks-long government shutdown at the start of the year. Lyft, which recently unveiled its S-1, is poised to be the first billion-dollar company to exit to the stock markets, followed by Uber, Slack and Pinterest. Will Airbnb nudge its way into that lineup? We’ll see.


Source: The Tech Crunch

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Australia’s government and political parties hit by cyber attack from ‘sophisticated state actor’

Posted by on Feb 18, 2019 in Australia, China, computer security, Cyberwarfare, Hack, Hillary Clinton, John Podesta, national security, presidential election, TC, United States | 0 comments

The Australia government suffered a cyber attack that it suspects is the work of a “sophisticated state actor,” according to the country’s Prime Minister.

PM Scott Morrison said today the computer network of the country’s parliament, and those belonging to Liberal, Labor and Nationals parties, were targeted by an attack which took place a few weeks ago, The Sydney Morning Herald reports. Australia is months away federal elections which will take place in May.

Morrison said there is “no evidence of any electoral interference.”

“We have put in place a number of measures to ensure the integrity of our electoral system,” he said, adding that security services “acted decisively to confront it.”

There is apparently no indication that data was accessed following the attack.

Where exactly it originated from remains unclear.

Sources told SMH that the sophistication of the attack was “unprecedented,” but nobody in the government is naming suspects. Reportedly, the incident sports “the digital fingerprints of China” but there remains the possibility that the attack was framed to look like it originated from China.

The incident recalls the hacking of the Democrat Party around the U.S. Presidential election in 2016. The attackers, who are widely suspected to be linked to the Russian government, accessed are to have accessed 19,252 emails and 8,034 attachments from DNC email accounts, John Podesta, who was the campaign chairman for Hillary Clinton.

Australia itself has a history of parliamentary hacks. The national government was attacked in 2015 by a “foreign government” (later named as China) that reportedly used computers at the Bureau of Meteorology as its entry point. The incident is said to have given China the records of 14 million federal employees.


Source: The Tech Crunch

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China continues 5G push despite economic slowdown and Huawei setbacks

Posted by on Jan 30, 2019 in 5g, Asia, Australia, Beijing, Canada, China, Government, Huawei, LTE, manufacturing, mobile technology, network technology, spy, telecommunications, Transportation, virtual reality, Wearables, wireless technology | 0 comments

China will fast-track the issuance of commercial licenses for 5G as part of a national plan to boost consumer spending, said a notice published this week by the National Development and Reform Commission. The move appears to be multifaceted, for 5G plays a key role in China’s bid to lead the global technology race and one of its biggest 5G champions, Huawei, has been facing troubles on a global scale.

In its statement, the economic regulator calls on local governments to support the promotion and showcase of services utilizing the super-fast network technology. Ultra-high definition TVs, virtual/augmented reality handsets and other futuristic products will be eligible for government subsidies, though the regulator didn’t outline the detailed criteria.

The acceleration of 5G licenses comes as Beijing copes with a weakening national economy, a move that will “drum up demand with upgraded technology experiences across devices, automotive and manufacturing leveraging 5G technology,” said Neil Shah, research director at Counterpoint Research, to TechCrunch. 5G is on course to generate 6.3 trillion yuan ($947 billion) worth of economic output and 8 million jobs for China by 2030, according to estimates from the China Academy of Information and Communications Technology.

Beijing has been gearing up to be the world leader in the next-generation network tech, pouring resources into 5G research and infrastructure. But it has been hit with a speed bump overseas as western countries grow increasingly wary of spy threat posed by Chinese 5G equipments. A souped-up domestic drive, therefore, could help neutralize some of the global setbacks faced by its 5G crown jewels like Huawei.

The U.S. and Australia have banned local firms from procuring equipment from Huawei, and Canada and the U.K. are currently reviewing whether to continue using 5G parts made by the Chinese telecom equipment giant. Meanwhile, Huawei is facing a list of criminal charges from the U.S. for stealing state secrets and its financial chief Meng is accused of bank fraud.

“Aaccelerating 5G licenses should indirectly help Huawei gain competitive edge for 5G considering it will be supplying solutions to the world’s largest mobile cellular market, China,” observes Counterpoint’s Shah. “This also gives Huawei an early platform to showcase its technology to the world and attract more global business.”

Huawei has continued with its 5G push despite being dogged by a string of global woes. Last week, the Shenzhen-based conglomerate unviled a 5G chipset for multiple commercial uses across smartphones, home and work. The chip, dubbed the Balong 5000, will be launching in February at a Barcelona tech trade show.


Source: The Tech Crunch

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Canada’s Telus says partner Huawei is ‘reliable’: reports

Posted by on Jan 21, 2019 in 3g, 5g, Ambassador, Asia, Australia, Beijing, Canada, China, Donald Trump, Huawei, Justin Trudeau, Meng Wanzhou, New Zealand, Policy, Ren Zhengfei, Security, spy, telecommunications, telus, the wall street journal, United Kingdom, United States, vancouver, White House, zte | 0 comments

The US-China tension over Huawei is leaving telecommunications companies around the world at a crossroad, but one spoke out last week. Telus, one of Canada’s largest phone companies showed support for its Chinese partner despite a global backlash against Huawei over cybersecurity threats.

“Clearly, Huawei remains a viable and reliable participant in the Canadian telecommunications space, bolstered by globally leading innovation, comprehensive security measures, and new software upgrades,” said an internal memo signed by a Telus executive that The Globe and Mail obtained.

The Vancouver-based firm is among a handful of Canadian companies that could potentially leverage the Shenzhen-based company to build out 5G systems, the technology that speeds up not just mobile connection but more crucially powers emerging fields like low-latency autonomous driving and 8K video streaming. TechCrunch has contacted Telus for comments and will update the article when more information becomes available.

The United States has long worried that China’s telecom equipment makers could be beholden to Beijing and thus pose espionage risks. As fears heighten, President Donald Trump is reportedly mulling a boycott of Huawei and ZTE this year, according to Reuters. The Wall Street Journal reported last week that US federal prosecutors may bring criminal charges against Huawei for stealing trade secrets.

Australia and New Zealand have both blocked local providers from using Huawei components. The United Kingdom has not officially banned Huawei but its authorities have come under pressure to take sides soon.

Canada, which is part of the Five Eyes intelligence-sharing network alongside Australia, New Zealand, the UK and the US, is still conducting a security review ahead of its 5G rollout but has been urged by neighboring US to steer clear of Huawei in building the next-gen tech.

China has hit back at spy claims against its tech crown jewel over the past months. Last week, its ambassador to Canada Lu Shaye warned that blocking the world’s largest telecom equipment maker may yield repercussions.

“I always have concerns that Canada may make the same decision as the US, Australia and New Zealand did. And I believe such decisions are not fair because their accusations are groundless,” Lu said at a press conference. “As for the consequences of banning Huawei from 5G network, I am not sure yet what kind of consequences will be, but I surely believe there will be consequences.”

Last week also saw Huawei chief executive officer Ren Zhengfei appear in a rare interview with international media. At the roundtable, he denied security charges against the firm he founded in 1987 and cautioned the exclusion of Chinese firms may delay plans in the US to deliver ultra-high-speed networks to rural populations — including to the rich.

“If Huawei is not involved in this, these districts may have to pay very high prices in order to enjoy that level of experience,” argued Ren. “Those countries may voluntarily approach Huawei and ask Huawei to sell them 5G products rather than banning Huawei from selling 5G systems.”

The Huawei controversy comes as the US and China are locked in a trade war that’s sending reverberations across countries that rely on the US for security protection and China for investment and increasingly skilled — not just cheap — labor.

Canada got caught between the feuding giants after it arrested Huawei’s chief financial officer Meng Wanzhou, who’s also Ren’s daughter, at the request of US authorities. The White House is now facing a deadline at the end of January to extradite Meng. Meanwhile, Canadian Prime Minister Justin Trudeau and Trump are urging Beijing to release two Canadian citizens who Beijing detained following Meng’s arrest.


Source: The Tech Crunch

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President Bolsonaro should boost Brazil’s entrepreneurial ecosystem

Posted by on Jan 12, 2019 in Amazon, Australia, Bank, Brazil, chicago, chief, Chile, Column, Congress, department of justice, executive, Finance, General Partner, head, Japan, Latin America, Ministry of Economy, petrobras, Politics, president, sao paulo, Singapore, South Korea, switzerland, The New York Times, the wall street journal, United States, University of Chicago, Venture Capital | 0 comments

In late October following a significant victory for Jair Bolsonaro in Brazil’s presidential elections, the stock market for Latin America’s largest country shot up. Financial markets reacted favorably to the news because Bolsonaro, a free-market proponent, promises to deliver broad economic reforms, fight corruption and work to reshape Brazil through a pro-business agenda. While some have dubbed him as a far-right “Trump of the Tropics” against a backdrop of many Brazilians feeling that government has failed them, the business outlook is extremely positive.

When President-elect Bolsonaro appointed Santander executive Roberto Campos as new head of Brazil’s central bank in mid-November, Brazil’s stock market cheered again with Sao Paulo’s Bovespa stocks surging as much as 2.65 percent on the day news was announced. According to Reuters, “analysts said Bolsonaro, a former army captain and lawmaker who has admitted to having scant knowledge of economics, was assembling an experienced economic team to implement his plans to slash government spending, simplify Brazil’s complex tax system and sell off state-run companies.”

Admittedly, there are some challenges as well. Most notably, pension-system reform tops the list of priorities to get on the right track quickly. A costly pension system is increasing the country’s debt and contributed to Brazil losing its investment-grade credit rating in 2015. According to the new administration, Brazil’s domestic product could grow by 3.5 percent during 2019 if Congress approves pension reform soon. The other issue that’s cropped up to tarnish the glow of Bolsonaro coming into power are suspect payments made to his son that are being examined by COAF, the financial crimes unit.

While the jury is still out on Bolsonaro’s impact on Brazilian society at large after being portrayed as the Brazilian Trump by the opposition party, he’s come across as less authoritarian during his first days in office. Since the election, his tone is calmer and he’s repeatedly said that he plans to govern for all Brazilians, not just those who voted for him. In his first speech as president, he invited his wife to speak first which has never happened before.

Still, according to The New York Times, “some Brazilians remain deeply divided on the new president, a former army captain who has hailed the country’s military dictators and made disparaging remarks about women and minority groups.”

Others have expressed concern about his environment impact with the “an assault on environmental and Amazon protections” through an executive order within hours of taking office earlier this week. However, some major press outlets have been more upbeat: “With his mix of market-friendly economic policies and social conservativism at home, Mr. Bolsonaro plans to align Brazil more closely with developed nations and particularly the U.S.,” according to the Wall Street Journal this week.

Based on his publicly stated plans, here’s why President Bolsonaro will be good for business and how his administration will help build an even stronger entrepreneurial ecosystem in Brazil:

Bolsonaro’s Ministerial Reform

President Temer leaves office with 29 government ministries. President Bolsonaro plans to reduce the number of ministries to 22, which will reduce spending and make the government smaller and run more efficiently. We expect to see more modern technology implemented to eliminate bureaucratic red tape and government inefficiencies.

Importantly, this will open up more partnerships and contracting of tech startups’ solutions. Government contacts for new technology will be used across nearly all the ministries including mobility, transportation, health, finance, management and legal administration – which will have a positive financial impact especially for the rich and booming SaaS market players in Brazil.

Government Company Privatization

Of Brazil’s 418 government-controlled companies, there are 138 of them on the federal level that could be privatized. In comparison to Brazil’s 418, Chile has 25 government-controlled companies, the U.S. has 12, Australia and Japan each have eight, and Switzerland has four. Together, Brazil-owned companies employ more than 800,000 people today, including about 500,000 federal employees. Some of the largest ones include petroleum company Petrobras, electric utilities company EletrobrasBanco do Brasil, Latin America’s largest bank in terms of its assets, and Caixa Economica Federal, the largest 100 percent government-owned financial institution in Latin America.

The process of privatizing companies is known to be cumbersome and inefficient, and the transformation from political appointments to professional management will surge the need for better management tools, especially for enterprise SaaS solutions.

STEAM Education to Boost Brazil’s Tech Talent

Based on Bolsonaro’s original plan to move the oversight of university and post-graduate education from the Education Ministry to the Science and Technology Ministry, it’s clear the new presidential administration is favoring more STEAM courses that are focused on Science, Technology, Engineering, the Arts and Mathematics.

Previous administrations threw further support behind humanities-focused education programs. Similar STEAM-focused higher education systems from countries such as Singapore and South Korea have helped to generate a bigger pipeline of qualified engineers and technical talent badly needed by Brazilian startups and larger companies doing business in the country. The additional tech talent boost in the country will help Brazil better compete on the global stage.

The Chicago Boys’ “Super” Ministry

The merger of the Ministry of Economy with the Treasury, Planning and Industry and Foreign Trade and Services ministries will create a super ministry to be run by Dr. Paulo Guedes and his team of Chicago Boys. Trained at the Department of Economics in the University of Chicago under Milton Friedman and Arnold Harberger, the Chicago Boys are a group of prominent Chilean economists who are credited with transforming Chile into Latin America’s best performing economies and one of the world’s most business-friendly jurisdictions. Joaquim Levi, the recently appointed chief of BNDES (Brazilian Development Bank), is also a Chicago Boy and a strong believer in venture capital and startups.

Previously, Guedes was a general partner in Bozano Investimentos, a pioneering private equity firm, before accepting the invitation to take the helm of the world’s eighth-largest economy in Brazil. To have a team of economists who deeply understand the importance of rapid-growth companies is good news for Brazil’s entrepreneurial ecosystem. This group of 30,000 startup companies are responsible for 50 percent of the job openings in Brazil and they’re growing far faster than the country’s GDP.

Bolsonaro’s Pro-Business Cabinet Appointments

President Bolsonaro has appointed a majority of technical experts to be part of his new cabinet. Eight of them have strong technology backgrounds, and this deeper knowledge of the tech sector will better inform decisions and open the way to more funding for innovation.

One of those appointments, Sergio Moro, is the federal judge for the anti-corruption initiative knows as “Operation Car Wash.” With Moro’s nomination to Chief of the Justice Department and his anticipated fight against corruption could generate economic growth and help reduce unemployment in the country. Bolsonaro’s cabinet is also expected to simplify the crazy and overwhelming tax system. More than 40 different taxes could be whittled down to a dozen, making it easier for entrepreneurs to launch new companies.

In general terms, Brazil and Latin America have long suffered from deep inefficiencies. With Bolsonaro’s administration, there’s new promise that there will be an increase in long-term infrastructure investments, reforms to reduce corruption and bureaucratic red tape, and enthusiasm and support for startup investments in entrepreneurs who will lead the country’s fastest-growing companies and make significant technology advancements to “lift all boats.”


Source: The Tech Crunch

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TNB Aura closes $22.7M fund to bring PE-style investing to Southeast Asia’s startups

Posted by on Dec 13, 2018 in Artificial Intelligence, Asia, Australia, Business, economy, entrepreneurship, Finance, funding, Fundings & Exits, golden gate ventures, Google, Indonesia, jungle ventures, manufacturing, money, Monk's Hill Ventures, openspace ventures, Philippines, Private Equity, Singapore, Southeast Asia, Startup company, TC, temasek, Thailand, TradeGecko, United States, Venture Capital, vietnam | 0 comments

TNB Aura, a recent arrival to Southeast Asia’s VC scene, announced today that it has closed a maiden fund at SG$31.1million, or around US$22.65 million, to bring a more private equity-like approach to investing in startups in the region.

The fund was launched in 2016 and it is a joint effort between Australia-based venture fund Aura and Singapore’s TNB Ventures, which has a history of corporate innovation work. It reached a final close today, having hit an early close in January. It is a part of the Enterprise Singapore ‘Advanced Manufacturing and Engineering’ scheme which, as you’d expect, means there is a focus on hardware, IO, AI and other future-looking tech like ‘industry 4.0.’

The fund is targeting Series A and B deals and it has the firepower to do 15-20 deals over likely the next two to three years, co-founder and managing partner Vicknesh R Pillay told TechCrunch in an interview. There’s around $500,000-$4 million per company, with the ideal scenario being an initial $1 million check with more saved for follow-on rounds. Already it has backed four companies including TradeGecko, which raised $10 million in a round that saw TNB Aura invest alongside Aura, and AI marketing platform Ematic.

The fund has a team of 10, including six partners and an operating staff of four. It pitches itself a little differently to most other VCs in the region given that manufacturing and engineering bent. That, Pillay said, means it is focused on “hardware plus software” startups.

“We are very strong fundamentals guys,” Pillay added. We ask what is the valuation and decide what we can get from a deal. It’s almost like PE-style investing in the VC world.”

A selection of the TNB Aura team [left to right]: Samuel Chong (investment manager), Calvin Ng, Vicknesh R Pillay, Charles Wong (partners), Liu Zhihao (investment manager)

Another differentiator, Pillay believes, is the firm’s history in the corporate innovation space. That leads it to be pretty well suited to working in the B2B and enterprise spaces thanks to its existing networks, he said.

“We particularly like B2B saas companies and we believe we can assist them through of our innovation platforms,” Pillay explained.

Outside of Singapore — which is a heavy focus thanks to the relationship with Enterprise Singapore — TNB Aura is focused on Indonesia, the Philippines, Thailand and Vietnam, four of the largest markets that form a large chunk of Southeast Asia’s cumulative 650 million population. With an internet population of over 330 million — higher than the entire U.S. population — the region is set to grow strongly as internet access increases. A recent report from Google and Temasek tipped the region’s digital economy will triple to reach $240 billion by 20205.

The report also found that VC funding in Southeast Asia is developing at a fast clip. Excluding unicorns, which distort the data somewhat, startups raised $2.6 billion in the first half of this year, beating the $2.4 billion tally for the whole of 2017.

There are plenty of other Series A-B funds in the region, including Jungle Ventures, Golden Gate Ventures, Openspace Ventures, Monks Hill Ventures, Qualgro and more.


Source: The Tech Crunch

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