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Technology
After months of back-and-forth negotiations, Washington moved rapidly this past week to fend off the increasing transcendence of Chinatech industry, with Congress passing expanded national security controls over M-A transactions and the Trump administration heaping more pressure on China with threats of increased tariffs.
We&ve been following the reforms to CFIUS — the Committee on Foreign Investment in the United States — since the proposal was first floated late last year. The committee is charged with protecting Americaeconomic interests by preventing takeovers of companies by foreign entities where the transaction could have deleterious national security consequences. The committee and its antecedents have slowly gained powers over the past few decades since the Korean War, but this week, it suddenly gained a whole lot more.
Through the Foreign Investment Risk Review Modernization Act of 2018, which was rolled into the must-pass National Defense Authorization Act and passed by Congress this week, CFIUS is gaining a number of new powers, more resources and staff, more oversight, and a charge to massively expand its influence in any M-A process involving foreign entities.
Lawfare has a great summary of the final text of the bill and its ramifications, but I want to highlight a few of the changes that I think are going to have an outsized effect on Silicon Valley and the tech industry more widely.
One of the top priorities of this legislation was to make it more difficult for Chinese venture capital firms to invest in American startups and pilfer intellectual property or acquire confidential user data.
Congress fulfilled that goal in two ways. First, the definition of a &covered transaction& has been massively expanded, with a focus on &critical technology& industries. In the past, there was an expectation that a foreign entity had to essentially buy out a company in order to trigger a CFIUS review. That jurisdiction has now been expanded to include such actions as adding a member to a companyboard of directors, even in cases where an investment is essentially passive.
That means that the typical VC round could now trigger a review in Washington — and in the fast timelines of startup fundraising, that might be enough friction to keep Chinese venture capital out of the American ecosystem. Given that Chinese venture capital (at least by some measures) has outpaced U.S. venture capital in the first half of this year, this provision will have huge ramifications for startups and their valuations.
The second element Congress added was requiring that CFIUS receive all partnership agreements that a company has signed with a foreign investor. Often in a transaction, there is a main agreement spelling out the overall structure of a deal, and then side agreements with individual investors with special terms not shared with the wider syndicate, such as the right to access internal company data or intellectual property. By requiring further disclosure, CFIUS will have a more holistic picture of a deal and any risks it might add for national security.
Itimportant to note that Congress was keen on balancing the need for investment with the need of national security. Through oversight provisions, including allowing CFIUS decisions to be contested in the DC Court of Appeals, Congress has designed the reform to be fairer, even as it takes a harder line on certain transactions.
It will take many months for the provisions to come in full force, so some of the effects of this bill won&t be felt until the end of next year. Nonetheless, Congress has sent a clear message of its intent.
Congress& national security concerns in financial transactions are also crossing the Atlantic. British Prime Minister Theresa May and her government are spearheading new controls over foreign investment transactions, and the EU has also launched more screenings to ensure that transactions are in the best interests of the continent. All of these legislative moves are a response to Chinese foreign direct investment, which has skyrocketed in Europe while almost disappearing in North America.
President Trump signed tariffs on China earlier this year. Now, the administration wants to more than double them.
That disappearance is a function of the on-going trade dispute between the U.S. and China, which crescendoed this past week. The Trump administration said it is considering increasing tariffs from 10% to 25% on $200 billion worth of Chinese goods, significantly heightening the tariffs it had put in place earlier this year.
That threat got a swift response from China overnight, with the Chinese Commerce Ministry saying that it would put tariffs on $60 billion worth of American goods in retaliation if the U.S. followed through with its threat.
So far, the tech industry appears to have been more insulated from the back-and-forth than expected, although the increasing scope and intensity of tariffs could change that calculus. Apple updated its quarterly filing this week to include a new risk around trade disputes, saying that &Tariffs could also make the Companyproducts more expensive for customers, which could make the Companyproducts less competitive and reduce consumer demand.& Legal boilerplate for sure, but it is the first time the company has included such a provision in its filing.
The tariffs drama is going to continue in the weeks and months ahead. But this week in particularly was a watershed for U.S. and China technology relations, and a busy week for tech lobbyists and policy officials.
For startups, most of this news basically boils down to the following: the U.S. is one market, and China is another. Cross-investing and cross-distribution just aren&t going to be easy as they were even a few months ago. Pick a market — one market — and focus your energies there. Clearly, itgoing to be tough times for anyone caught in the middle between the two.
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Read more: Washington hit China hard on tech influence this week
Write comment (99 Comments)For being the richest company ever with $243 billion in cash, Apple sure cuts corners in the stingiest ways. The hardware giant became the first trillion-dollar company this week. Yet ittough to reconcile Apple earning $11 billion in profit per quarter with it still screwing us over on cords and keyboards. The &it just works& philosophy has slipped through the cracks of the money-printing machine. Itnot that Apple couldn&t afford to fix the problems, itjust ensnared in hubris such that it doesn&t see them as important.
We still turn to Apple because it makes the best core products. But the edges of the customer experience have frayed like the wires of a Lightning cable. The key to Applefortune is obviously selling high margin iPhones, not these ways it nickels and dimes us. But the company has an opportunity to raise its standards after this milestone, and win back the faith that could push it to a $2 trillion market cap.
1. Frayed Charging Cables
Apple gives you that tingly feeling in the worst way. Can it not build Lightning cables and MacBook chargers a little sturdier If you avoid losing one long enough to put in some serious use, it inevitably ends up splitting where the cord meets your iPhone or exits the laptop power supply. Whether itwrapping them in electrical tape or the spring of a retractable pen, people have come up with all sorts of Macgyver methods to make their Apple chargers last. It got so bad that Apple was sued into offering a MacBook charger replacement program, but that expired years ago. If these are what allow us to play with the fancy devices it invents, shouldn&t they get the same quality of industrial design
Image via Sophia Cannon
2. Buried iTunes Subscriptions Cancellation
Want to cancel your Apple Music subscription or some other service you got roped into with a free trial ItSUPER easy. First, click the totally unlabeled and generic circle with a blotch in it thatsupposed to be a profile picture icon. You should see a &Manage Subscriptions& option…but you don&t. Instead, you&ll have to know to tap &View Apple ID&. Once you auth in with the same face or thumbprint that opened your phone in the first place you&ll find the option to cut them off. And as thank you for this convenience, you&ll get to pay 30 percent extra on some subscriptions if you pay through Apple. Itclearly exploitative dark pattern design.
3. Keyboard Claptrap
The MacBook keyboard is the on-ramp to the information superhighway, yet a single grain of sand can cause a pile up. Renowned Apple pundit John Gruber called it&one of the biggest design screwups in Apple history&. The new butterfly key design Apple rolled out in 2016 can get jammed by dust, requiring a lengthy disassembly process often requiring a professional to fix. Suddenly your work grinds to a halt. Apple wouldn&t always cover this repair, even under warranty. It took a lawsuit and tons of public backlash for Apple to offer free fixes, and that still typically leaves you without a laptop for a few days. I&m typing this article on a cracked-screen 2013 MacBook Pro because I refuse to upgrade until they make the keyboard design more resilient.
4. Killing Affiliate Fees Blogs Rely On
Apple benefits from a legion of blogs obsessing over its hardware and software, hyping up everything it sells. Just this week it returned that favor by announcing it will cut off one of their core sources of revenue. Websites would previously earn a 7 percent commission from Apple in exchange for affiliate link clicks leading to purchases on the App Store. But over the past few years, Apple has begun to sell ads inside the App Store too, competing for advertisers with those external blogs. Italso built up its own editorial team that curates whatfeatured, and apparently doesn&t want competition in being a king-maker. So in October Apple is shutting down the affiliate program that app review sites like TouchArcade and AppShopper depend on, potentially spelling their doom.
5. Dongle Hell
Whatthe opposite of &it just works& Paying extra to lug around a slew of gangly cord connectors you need just to plug things into your laptop or phone. Dongles are the emblem of Appleabandonment of the user experience. A Thunderbolt 2 to Thunderbolt 3 dongle runs $50 while it will cost you $9 to plug in any pair of headphones from the past half-century once you&ve inevitably lost the Lightning dongle you&re allocated. Apple loves pushing us towards its vision of tomorrow, like Bluetooth headphones (that it sells) and USB-C fast-chargers (that it sells). But ditching headphone jacks and old school USB ports makes Applelatest devices incompatible with sanity. Even its own commercial shows musician Grimes struggling with her dongles. Sorry you can&t pass me the aux cord.I&m from the future.
Image via Notebookcheck
[Featured Image via Instructibles]
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Read more: The greedy ways Apple got to $1 trillion
Write comment (91 Comments)Facebook Dating doesn&t plan to launch a standalone dating app, which should temper expectations about how deeply itdiving into Tinder and Match Groupterritory. The feature will be based inside Facebookmain app, alongside its many other utilities buried beyond the home screen. Itnot ready for the public yet, but company employees are now internally testing it — though they&re warned that itnot for dating their co-workers.
Facebook gave a preview of its Dating features back in May at its F8 conference. Now we&re getting an early look at its onboarding process thanks to screenshots pulled from the Facebook appcode by mobile researcher and frequent TechCrunch tipster Jane Manchun Wong. The designs give a sense of the more mature vibe of Facebook Dating, which seems more purposeful for finding a serious partner than a one-night stand.
Once you opt in to activating Facebook Dating,only other people who have also turned it on will be able to see you, and it won&t be shared to News Feed. You can choose if friends of friends can see you or not, and Dating profiles allow non-binary and transgender and orientation options. You&ll unlock Groups or Events you&re a part of for Dating, and you&ll be able to browse potential matches based on the plethora of info Facebook knows about you. If two people express interest in each other (no swiping), they can text each other over Messenger or WhatsApp.
TechCrunch has learned some new details from Facebook, as well. Facebook is considering a limit on how many people you can express interest in, which would prevent a spammy behavior of rapidly approving everyone you see. Blocking someone on Dating won&t also block them on Facebook, though thatnot finalized.
Facebook has no plan for paid subscriptions to premium Dating features. Itcurrently not going to show ads in Dating, though it could reconsider that later.
Dating will be 18+ only in the U.S. and abide by local laws on who is considered an &adult.&
For now Facebook is taking careful steps toward Dating. Itnot blitzing into the market with a big flashy app. Instead ithoping the feature could create the meaningful relationships that make people appreciate Facebook and stick with it over the years. Thatmore important than ever with all its recent troubles.
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Read more: Facebook Dating will be a feature, not an app; here’s a peek
Write comment (97 Comments)A company calledRentlogichas raised $2.4 million totake the guesswork out of determining whether that cheap, beautiful New York apartment is actually a deathtrap wrapped in a brownstoneclothing.
Renting in New York is murder already, but using Rentlogic, apartment hunters can figure out if their new housing situation could actually kill them (or put them at significant risk of bodily or property harm… or even minor inconveniences).
Investors in the companyseed round include the Urban-X accelerator (which is a partnership between Urban.US and Mini); Urban.Us, an investor in urban technologies; the millennial-entrepreneur-focused investment firm, Kairos; and Seagram beverage company scion Edgar Bronfman, Jr.
Rentlogic already provides a grade for every building in New York — more than 1 million properties — but has added an inspection feature that it charges landlords for so that they can display a rating outside of their building. Itlike the cityscoring grades for restaurants in neighborhoods.
&We grade every single property in New York,& says Yale Fox, the companyfounder and chief executive. &We have inspected 103 properties. Everybody is really happy with it and everybody is going to re-sign and we&re going to start scaling this out to every property in New York.&
Rentlogic scores buildings on a combination of around 150 different variables, including the ability to provide continuous heat and hot water, and whether or not a building has evidence of bed bugs or rodents.
The looks of the building doesn&t matter, Fox says. Itmore about the conditions of the building.
&Itthe same way a building would get LEED-certified,& says Fox. &Ita good way for one landlord to differentiate their property as higher quality than a competitorin the same neighborhood.&
Launched initially in 2013, Rentlogic was born out of Foxown tragic experience as a new renter in New York. The Canadian transplant (and the son of a family of real estate professionals and small scale landlords) had come to the city for a new job and was looking at an apartment in the West Village.
After shelling out a $12,000 deposit for first monthrent, last monthrent and a security deposit, Fox settled into his abode in the tree-lined luxury of one of Manhattanmost sought-after neighborhoods. The love affair with the building didn&t last long.
Unexpectedly, Fox started to become sick. Several visits to the doctor couldn&t identify a cause for his illness, until, finally, his physician suggested a mold-related illness.
&I asked the landlord to fix it and I wound up having to take the landlord to court,& says Fox.
By the time the court date arrived, Fox had paid to fix the mold problem himself and had little in the way of solid evidence to show a judge. So he built an app that would track the public complaints filed against the landlord and the public assessments that had been done on the building.
&I went to court and I showed the judge this model that I had put together and he said, ‘Welcome to New York and I&m sorry this happened to you… and you should definitely build an app, because New York City needs this.'&

Rentlogic founder Yale Fox
Fox, already enrolled in the TED Fellows program, built the app, initially called &RentCheck& and began marketing it to landlords and renters. &It was just a hobby because I was so angry about how things had happened to me,& says Fox. &We didn&t want to charge renters fees to the site. We thought having equal access to information could prevent this from happening in the future.&
Things continued as a nonprofit for a while until last year Fox hit on a business model. He designed a ratings card for the building based on the data his company had collected and showed it to his current landlord. &She said, ‘How much would you charge for it'& Fox recalled.
Thus RentCheck became Rentlogic and a business was born. Fox charges landlords for assessments and to display a ratings placard that indicates the buildinggrade.
Renters are willing to pay up to an additional $45 per month, according to a white paper, to sign a lease in a building thatbeen independently certified. &People are willing to pay a little bit more just to not deal with the constant headaches that happen in certain kinds of buildings,& he said.
Fox appears to have launched Rentlogic at the right time. The market for housing in New York has softened as luxury apartments flood the market and demand softens, meaning that rents are coming down across the board.
But beyond being more competitive therea defensive aspect to getting rated in a market filled with demanding, complaint-prone consumers that have no qualms savaging any business, from landlords to local restaurants (although oftentimes the landlords and restaurants deserve it).
&A lot of times landlords are purchasing this because thereno way to prove they&re not a one-star landlord,& Fox says.&This is accessible for big landlords and small landlords. In a zero-transparency and low-accountability marketplace, thereno incentive for bad actors to improve their behavior, but with Rentlogic there is.&
The company is already making institutional moves. Fox has inked a deal with Blackstone about providing ratings for their $5.5 billion Stuyvesant Town acquisition on the Lower East Side, according to Fox. In addition, the company has partnered with a number of real estate brokers and roommate-hunting services like Nooklyn and Roomito use its ratings.
While Rentlogic is scrupulous about using data to train its algorithm, italso transparent about how the algorithm works, according to Fox.
&Algorithms control so much whatgoing on in the world and people just don&t understand them,& he says. So in the interest of full transparency, the company is putting together a building simulator where users can add problems and see how it affects a buildingrating on the Rentlogic site. The company also has an algorithmic review committee that reviews the results coming from the building assessments.
And while Rentlogic is starting in New York, the company has plans to use its machine learning system to hoover up publicly available data and provide grades for real estate across the United States.
Ultimately, Fox just wants to help improve the tenant-landlord relationship, he says. &I was in a terrible situation with a landlord who went to jail… I launched this site so no one would have to go through what I went through.&
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Read more: Rentlogic lands millions to grade NYC real estate for renters and landlords
Write comment (98 Comments)A company calledRentlogichas raised $2.4 million totake the guesswork out of determining whether that cheap, beautiful New York apartment is actually a deathtrap wrapped in a brownstoneclothing.
Renting in New York is murder already, but using Rentlogic, apartment hunters can figure out if their new housing situation could actually kill them (or put them at significant risk of bodily or property harm… or even minor inconveniences).
Investors in the companyseed round include the Urban-X accelerator (which is a partnership between Urban.US and Mini); Urban.Us, an investor in urban technologies; the millennial-entrepreneur-focused investment firm, Kairos; and Seagram beverage company scion Edgar Bronfman, Jr.
Rentlogic already provides a grade for every building in New York — more than 1 million properties — but has added an inspection feature that it charges landlords for so that they can display a rating outside of their building. Itlike the cityscoring grades for restaurants in neighborhoods.
&We grade every single property in New York,& says Yale Fox, the companyfounder and chief executive. &We have inspected 103 properties. Everybody is really happy with it and everybody is going to re-sign and we&re going to start scaling this out to every property in New York.&
Rentlogic scores buildings on a combination of around 150 different variables, including the ability to provide continuous heat and hot water, and whether or not a building has evidence of bed bugs or rodents.
The looks of the building doesn&t matter, Fox says. Itmore about the conditions of the building.
&Itthe same way a building would get LEED-certified,& says Fox. &Ita good way for one landlord to differentiate their property as higher quality than a competitorin the same neighborhood.&
Launched initially in 2013, Rentlogic was born out of Foxown tragic experience as a new renter in New York. The Canadian transplant (and the son of a family of real estate professionals and small scale landlords) had come to the city for a new job and was looking at an apartment in the West Village.
After shelling out a $12,000 deposit for first monthrent, last monthrent and a security deposit, Fox settled into his abode in the tree-lined luxury of one of Manhattanmost sought-after neighborhoods. The love affair with the building didn&t last long.
Unexpectedly, Fox started to become sick. Several visits to the doctor couldn&t identify a cause for his illness, until, finally, his physician suggested a mold-related illness.
&I asked the landlord to fix it and I wound up having to take the landlord to court,& says Fox.
By the time the court date arrived, Fox had paid to fix the mold problem himself and had little in the way of solid evidence to show a judge. So he built an app that would track the public complaints filed against the landlord and the public assessments that had been done on the building.
&I went to court and I showed the judge this model that I had put together and he said, ‘Welcome to New York and I&m sorry this happened to you… and you should definitely build an app, because New York City needs this.'&

Rentlogic founder Yale Fox
Fox, already enrolled in the TED Fellows program, built the app, initially called &RentCheck& and began marketing it to landlords and renters. &It was just a hobby because I was so angry about how things had happened to me,& says Fox. &We didn&t want to charge renters fees to the site. We thought having equal access to information could prevent this from happening in the future.&
Things continued as a nonprofit for a while until last year Fox hit on a business model. He designed a ratings card for the building based on the data his company had collected and showed it to his current landlord. &She said, ‘How much would you charge for it'& Fox recalled.
Thus RentCheck became Rentlogic and a business was born. Fox charges landlords for assessments and to display a ratings placard that indicates the buildinggrade.
Renters are willing to pay up to an additional $45 per month, according to a white paper, to sign a lease in a building thatbeen independently certified. &People are willing to pay a little bit more just to not deal with the constant headaches that happen in certain kinds of buildings,& he said.
Fox appears to have launched Rentlogic at the right time. The market for housing in New York has softened as luxury apartments flood the market and demand softens, meaning that rents are coming down across the board.
But beyond being more competitive therea defensive aspect to getting rated in a market filled with demanding, complaint-prone consumers that have no qualms savaging any business, from landlords to local restaurants (although oftentimes the landlords and restaurants deserve it).
&A lot of times landlords are purchasing this because thereno way to prove they&re not a one-star landlord,& Fox says.&This is accessible for big landlords and small landlords. In a zero-transparency and low-accountability marketplace, thereno incentive for bad actors to improve their behavior, but with Rentlogic there is.&
The company is already making institutional moves. Fox has inked a deal with Blackstone about providing ratings for their $5.5 billion Stuyvesant Town acquisition on the Lower East Side, according to Fox. In addition, the company has partnered with a number of real estate brokers and roommate-hunting services like Nooklyn and Roomito use its ratings.
While Rentlogic is scrupulous about using data to train its algorithm, italso transparent about how the algorithm works, according to Fox.
&Algorithms control so much whatgoing on in the world and people just don&t understand them,& he says. So in the interest of full transparency, the company is putting together a building simulator where users can add problems and see how it affects a buildingrating on the Rentlogic site. The company also has an algorithmic review committee that reviews the results coming from the building assessments.
And while Rentlogic is starting in New York, the company has plans to use its machine learning system to hoover up publicly available data and provide grades for real estate across the United States.
Ultimately, Fox just wants to help improve the tenant-landlord relationship, he says. &I was in a terrible situation with a landlord who went to jail… I launched this site so no one would have to go through what I went through.&
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Read more: Rentlogic lands millions to grade NYC real estate for renters and landlords
Write comment (100 Comments)Digital media company Kin has announced a slate of new video series from singer/actress Jordin Sparks, Bachelorette JoJo Fletcherand Jordan Rodgers (who successfully proposed to Fletcher over on the series).
The company also revealed more details about its programming with Vanessa Lachey (who had already signed on with her husband Nick). She&ll be hosting a competition series called Beauty School Knockout, where contestants compete to create specific looks using unconventional products.
This is all part of what the company calls its &neighborhood& strategy, where it launches a set of interconnected channels, usually featuring stars who became famous on traditional media. The new announcements bring Kin up to five channels, with the goal of creating three more by the end of the year.
&[Ultimately,] We want to create 20 of these channels … a neighborhood of channels for women inwhat we call the ‘builder& phase of their lives,& Kin CEO Michael Wayne told me. &And they all have sort of the same like-minded, inspirational, accessible feeling to them, in women lifestyle verticals.&
The companyfirst big success with this model wasTia MowryQuick Fix, a series of lifestyle and how-to videos from the Sister, Sister star.
According to research by Nielsen, Quick Fix reached 8.8 million total viewers in the week of June 25, including 3.7 million women between the ages of 18 to 34 — an audience thatcomparable to cable reality hits likeChopped, Property Brothers and Keeping Up with the Kardashians. So Kin said itextending its partnership with Mowry to develop more lifestyle content in addition to Quick Fix.
In Wayneview, it makes more sense for Kin to work with a &mainstream star& like Mowry rather than someone who recently became famous on social media, especially since the first wave of social media influencers is being &completely disrupted by the next wave.&
He said that Mowry, on the other hand, has been in the public consciousness for decades: &No one searches for Tia because she did a smokey eye video.&
Wayne added that he remains focused on a cross-platform strategy, where individual platforms might get early access to the videos (Beauty School Knockout will premiere on Facebook Watch), but the videos ultimately get posted toYouTube, Facebook, Instagram TV and Amazon. He also said itcrucial that the &unit economics& of advertising on each series makes sense, so Kin isn&t relying on the platforms or on custom, branded video deals to subsidize production.
&WithTia, I know exactly how much money I&m spending makingon Facebook, I know howAmazon will monetize,I can chart this investment and know itgoing to pay off and become profitable within 9 to 12 months,& he said.
Update, August 4: Updated to correct Waynefinal quote.
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Read more: Kin expands its celebrity-driven ‘neighborhood’ model for online video
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