Laurel Bowden of VC firm 83North on the European deep tech and startup ecosystems

London and Tel Aviv based VC firm 83North has closed out its fifth fund at $300 million, as we reported earlier. It last raised a $250 million fund in 2017 and expects to continue the same investment mix, while tracking developments in emerging areas like healthcare AI and autonomous vehicles.

In a conversation with general partner Laurel Bowden, the veteran investor shared a few further thoughts with Extra Crunch — talking about the tech scene in Europe vs Israel, what the firm looks for in a team and tips on scaling globally.

83North closes $300M fifth fund focused on Europe, Israel

The interview has been lightly edited for clarity.

TechCrunch: Is Europe starting to catch up to Israel when it comes to deep tech startups?

Laurel Bowden: We clearly think we have in our portfolio some deep tech. And in other VC portfolios too — thereclearly some deep tech [coming out of Europe]. And then on the reverse side you&ve seen more consumer-related stuff coming out of Israel. But still if you take a blanket look, we see more data infrastructure, security, storage coming out of Israel than we see in Europe — thatfor sure.

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Armenia and the technology of diaspora

Ita tough world out there for small countries. Technology is the future, everyone knows that; but how do you claim your share of that future when you&re competing with America, China, the EU and India?

How do you build a thriving ecosystem of tech wealth and tech education — successful international businesses whose alumni found and invest in burgeoning startups — when you face the triple threats of a small population, limited capital and a potential brain drain? Even nations as wealthy and successful as my homeland Canada often struggle with this.

So imagine what itlike for, say, Armenia, from which I write, a former Soviet republic turned tiny nation of three million, sandwiched between unfriendly neighbors in the Caucasus Mountains. I&m here because the Armenian government is, at obvious expense1, hosting one of the worldseemingly countless / endless Major Tech Conferences, this time the World Congress of Information Technology, presumably in the hopes of garnering international attention for — and investment in — Armeniatech sector.

This may seem quixotic. Armenia styles itself as &the Silicon Valley of the former Soviet Union,& and its tech sector is successful enough to have played a prominent role in last year&velvet revolution.& But itstill a country of three million in a relatively obscure corner of the world. However, Armenia has a fascinating secret weapon — its diaspora.

Thanks to their homelandtroubled 20th-century history, many more Armenians live scattered around the world than in Armenia proper, including, most famously, hundreds of thousands in Los Angeles. It is &one of the largest and most sophisticated diasporas in the world.& Obviously therecultural drift — but at the same time, I&m repeatedly assured ita rare Armenian who doesn&t have a distant friend or relative in LA and/or Moscow.

The effects of this unusually large and loose-knit diasporal web are significant. It leads, sometimes directly, often indirectly, to American clients, German universities and Russian partners; to international connections to venture capitalists and startup incubators; to brain gain as well as drain. It means Armenia isn&t just a landlocked nation of three million, but the beating cultural heart of 10 million, inadvertently strategically scattered across the globe. Thata far, far stronger position.

I&ve argued before that as technology shortens and tightens the bonds between distributed communities, they&ll grow more significant culturally, financially and, eventually, politically. (And of course tech also makes entire sub-industries even possible; one of WCITsponsors here is a slick and fast-growing crowdfunding marketing company, not exactly a traditional strength of the former Soviet bloc.) The Armenian diaspora is almost a natural experiment testing this theory.

This natural experiment will test whether this secret weapon will help Armenia continue to punch further and further above its weight in technology, tourism and other diaspora-enhanced fields. If that happens, and I expect it to, it will be especially interesting to see which other distributed communities follow in its wake … and whether those will be affiliated with any nation-state at all.


1Including paying the travel costs for your correspondent. Assume unconscious bias accordingly.

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The Daily Crunch is TechCrunchroundup of our biggest and most important stories. If you&d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. And the winner of Startup Battlefield at Disrupt SF 2019 is… Render

In the beginning, there were 20 startups. After three days of fierce competition, we now have a Battlefield champion.

That winner is Render, which has created a managed cloud platform to serve as an alternative to traditional cloud providers such as AWS, Azure and GCP. And the runner-up is OmniVis, which aims to make cholera detection as quick, simple and cheap as a pregnancy test.

2. Next Insurance raises $250M from Munich Re, becomes a unicorn

Next Insurance sells insurance products to small businesses. And Germany-based Munich Re, one of the worldlargest reinsurers, was the sole investor in its new round.

3. Roku to launch low-cost versions of its soundbar and subwoofer under Walmartonn brand

In September, Roku debuted the Smart Soundbar and Wireless Subwoofer, both at $180 each. The Walmart onn-branded Smart Soundbar and Wireless Subwoofer, meanwhile, will only cost $129 each.

4. No one could prevent another ‘WannaCry-style& attack, says DHS official

Jeanette Manfra, the assistant director for cybersecurity for Homeland SecurityCybersecurity and Infrastructure Security Agency, said at Disrupt SF that the 2017 WannaCry cyberattack was uniquely challenging because it spread so quickly: &I don&t know that we could ever prevent something like that.&

5. NASA shares 3D Moon data for CG artists and creators

The data set includes not just imagery but depth data, making it simple to build an incredibly detailed 3D map of the Moon.

6. As Sinai Ventures returns first fund, partner Jordan Fudge talks new LA focus

Fudge and co-founder Eric Reiner are centralizing the Sinai Ventures team in Los Angeles for its next fund — a bet on the rising momentum of the local startup ecosystem and their vision to be the cityleading Series A and B firm. (Extra Crunch membership required.)

7. This weekTechCrunch podcasts

We&ve got a new episode of Equity recorded at Disrupt, with Alex and Kate discussing why San Francisco remains a startup hub. (And keep an eye out later today for a bonus episode of Original Content.)

Daily Crunch: Render wins the Startup Battlefield

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Amazon introduces a Kindle for kids

While ittrue that many parents are doing their best to reduce screen time as much as possible, theresomething to be said for the Kindle Kids Edition. The best and worst things about the device are its limitations. Itpurpose-built for reading, and thatabout it.

For that reason, the Kindle line makes a lot of sense to get the kid treatment. Kids can&t really play games or get into too much trouble on the E Ink display — not any more than they&d be able to get into at the local library, at least. The Dewey Decimal system is a gateway to all sorts of shenanigans.

From the looks of it, the Kindle Kids Edition is basically a repurposing of the standard Kindle — much as Amazon did with the Echo Dot. Itgot a six-inch, 167 PPI E Ink screen with a front light, coupled with the standard weeks-long battery. The color, drop-friendly case is included in the $200 price. As is one year of FreeTime Unlimited and a two-year warranty. There also are a slew of different kid-friendly features, including activity badges, kid wallpaper and vocabulary-building tools.

A few weeks after introducing a ridiculous number of new Echo devices, the company is revealing a bunch of new kid-focused products in addition to the new Kindle. Therea new version of the Fire 10 Kids Edition, featuring 12 hours of battery and a USB-C port — the latter of which appears to be a first for these Fire devices.

FreeTime, meanwhile, will also be arriving on Fire TV, first through the Fire TV Stick, followed by Fire TV Edition smart TVs. Echo Show devices are getting access to the app, as well.

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President Trump this morning randomly addressed a recent court ruling on net neutrality, calling it a &great win& that will &lead to many big things including 5G.& Perhaps he didn&t read the ruling closely, because it in fact is an enormous blow to the FCC and the &unhinged& logic on which it based the rollback of net neutrality.

You can find a full analysis of the decision here, but Trumptweet ought to be addressed directly, because it is wrong in several ways.

First and most important, the FCC didn&t win this. Certainly it was a partial victory in that it wasn&t struck down and many of Mozilla et al.objections were dismissed (sometimes almost flippantly). But not only were several issues, such as the legal abandonment of the Lifeline program, sent back to the FCC to be addressed, the entire Restoring Internet Freedom rule had its teeth pulled by the removal of the agencyability to preempt state laws.

The FCC had relied on specious arguments throughout, but one of the least convincing was that it had the authority to overrule states that had established their own, stronger net neutrality rules, as California is doing. This attempt to &create preemption authority out of thin air& was completely unjustified by any law or precedent, the court ruled, and that entire section of the new rules was struck down.

That means states can set their own rules and the FCC can&t interfere — and if a few states set strong rules, companies will likely choose to simply comply with those nationally rather than create a collection of state-specific ones. This is a huge setback for the FCC, essentially removing its authority to enforce its own rules. So are they really even rules?

Commission Impossible: How and why the FCC created net neutrality

Second, this wasn&t &the& big court case on net neutrality. This was a major one to be sure, but it is only the latest, and certainly not the last, in a long line of cases that have been kicking this issue back and forth for decades. In fact, circuit judge Patricia Millett, in her statement accompanying the decision, essentially said they expect it to eventually rise to the Supreme Court.

Third, it isn&t a &great win for the future and speed of the internet.& Very little will change for end users, just as very little changed in 2015 when net neutrality was established, or three years later, when it was abolished. The broadband industry has generally not let these swings of the pendulum affect its plans and investments, many of which have been in the works for years. And really, outside of some very specific circumstances like throttling, net neutrality (or the lack thereof) doesn&t affect the speed of the internet, either directly or by interfering with broadband providers.

Last, it won&t lead to 5G. 5G is a new global mobile standard that has very little to do with net neutrality and everything to do with spectrum, hardware, fiber backhaul and things like that. The deployment of 5G has been underway for years and has been almost completely unaffected by this side of the regulatory landscape.

The net neutrality battle is far from over, but this court case made things extremely difficult for the FCC. Without the threat of being overruled, states are free to make their own net neutrality rules as strong or stronger than 2015&s. So in a way, the president was right. This is a great win and will lead to many great things — just not the way he thought.

Court says FCC‘unhinged& net neutrality repeal can&t stop state laws

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For years now, Applebeen judicious with its MacOS updates. Understandably so. Given the massive online outcry every time Facebook changes the placement of a button, itin UX designers& best interest to keep changes gradual and subtle. These days, the overarching philosophy of operating system design seems to be more about guiding the userhand and making pronounced changes over time.

By the standard of annual consumer electronic upgrades that Apple has played a key role in perpetuating, updates to MacOS have, perhaps, been too subtle to foster the same sort of excitement. And honestly, thatperfectly fine. If a laptop is a flashy new car, the operating system is the great steering wheel that doesn&t whiff out the window while you&re driving.

Catalina bucks the trend of recent MacOS updates a bit, in that the updates feel more pronounced. While ittrue that the underlying principles are the same, there are some fundamental changes to day-to-day applications that both impact current use and lay the groundwork for future evolutions of the desktop operating system.

The most pronounced change is the much ballyhooed death of iTunes. The name will continue to exist in some residual instances, but for most intents and purposes, iTunes is being laid to rest with Catalina. Eighteen years was a pretty good run, of course, and signs of the once mighty music application will very much live on in Apple Music. But the new operating system finds the company very much planting its flag with premium content plays, the undisputed future of Applemassive revenue generating machine.

That extends, of course, to the arrival of an upgraded TV app, which sets the stage for TV+ and Arcade, which also gets a handful of new arrivals to celebrate todaypublic release of Catalina. Podcasts also gets its own desktop app, but for now, at least, thatnot a direct revenue source for the company. It is, however, important for the company to lay claim to the rapidly mainstreaming medium to which it indirectly gave name.

The arrival of Catalyst, meanwhile, lays the seeds for the future of Mac apps. Following the arrival of Appleown News, Stocks, Voice Memos and Home, the company has opened the program up to all iPad developers to easily port their apps to the desktop. In a broader sense, the move continues to blur the lines between the two operating systems, for better and worse. For Apple, however, the decision is much more pragmatic: Mac software development has stalled as iOS has boomed. This is a simple solution to help keep thing this in check.

Accessibility gets some much welcome updates, too, including much improved Voice Control, while Apple continues to add updates on the security side.

For the sake of this writeup, however, I&m going to start with the bit that gets me the most excited: Sidecar. From my own perspective, Apple tends to bury the lede in its own feature set. Though I completely understand that itsimply not as universal an application as, say, Music, TV or (likely) Arcade. Maybe itbecause I&m just getting back from yet another work trip (we held a little event in San Francisco), but Sidecar is a legit productivity game changer for me.

Against all recommendations, I opted to run a beta of Catalina on my primary work machine. I know, I know, but when a beta drops while you&re on the road, therereally no other option. I had some issues with the software I won&t go into here, because betas gonna beta. I surprisingly had some issues getting the feature to work again with the latest version of iPadOs and the GM of Catalina, but everything should be smooth sailing by the final release.

Thereno doubt, of course, that this is the latest bit of Sherlocking — Apple integrating its own version of a popular third-party app into the operating system. But with something like this, therereally no competing with native support for most users. For those who need fair more nuanced use of things like Apple Pencil for, say, art making, Duet and Luna may still be worth checking out. If, like me, you just want to use the iPad as a second screen for some added real estate on the road, Sidecarthe thing.

Enabling the feature is as simple as signing into all of your accounts: Make sure all of the relevant wireless protocols are turned on and then select the associated device from the drop-down. Your primary desktop can either be mirrored or used as an extension like a standard external monitor. The primary benefit of mirroring seems to be the ability to essentially use the screen as a touchscreen and iPad input. This should prove appealing for artists and a potential alternative to a pro tablet like the kind Wacom makes.

Screen Shot 2019 10 01 at 3.45.02 PM

For me, the second display is the thing. Hooking up the extending real estate is a big sigh of relief, making it far easier to keep multiple windows open at the same time. Having Slack open on the iPad while I use Pages and Chrome on the main desktop is a pretty significant time saver.

A small quibble: Keeping the Sidecar and display settings separate is a bit of an annoyance. The side I ultimately use for the iPad usually comes down to where I&m sitting. It would be great to be able to swap on the fly. The addition of a virtual sidebar, meanwhile, is an interesting one, but pretty redundant in mirrored mode.

All told, however, Sidecar is far and away the best addition to MacOS in recent memory.

I&m less in love with the loss of iTunes. I totally understand why Apple made the switch, and honestly, I&m a bit surprised it took them this long. I&m a long-time Spotify user with no interest in making the jump to Apple Music. I prefer the device flexibility Spotify affords. Among other things, the move to Music feels like an opportunity to constantly push users to &Try it Free.&

Music can still be used to play a locally stored song, but the move to streaming service has weaned me off of the notion of digital music ownership. Somewhere in my apartment, therea dusty old hard drive with hundreds of gigs of music, including weird old stuff that no one bothered to obscure the distribution rights for. Perhaps one day I&ll dive back in, but honestly itfeeling increasingly less likely.

Screen Shot 2019 10 07 at 1.02.34 PM

The principles of Podcast should be familiar to anyone whoever used the mobile app. Itall pretty simple and, like Music, focused on discovery. Separating it from Apple Music seems to imply that the company doesn&t have much interest in making huge Spotify-esque investments in the category. And for now, at least, why bother? Apple has a pretty massive head start in the space.

Apple TV gets a nice refresh, as well. It, too, is focused on discovery. Even more importantly for Applelong game, however, it lays the groundwork from TV+, which is set to arrive next month. Premium channels like HBO, Showtime and Starz have been integrated here, in a bid to become a more robust cable replacement for cord cutters. Also nice is the arrival of a dedicated Kids section with curated all ages content.

Arcade certainly isn&t what people are referring to when discussing the Maclong journey to becoming a more serious gaming system. And while the titles are largely designed to be played on mobile devices, those subscribing at $5 a month will no doubt welcome the ability to play on the desktop. Therea lot to be said for the ability to take a quick work break with a round of the excellent Zelda knockoff/homage, Oceanhorn 2.

Photos adopts some key features from its mobile counterpart. AI/ML will determine and highlight your best shots, while images are categorized by days/months/years. Photo previews are large and now include live photo and video playback.

On the more pragmatic side of things, syncing and backup get some nice upgrades, now available outside of iTunes. Thata change that certainly makes sense, with those features now accessible through the Finder. Honestly, thatwhere they belong. Accessing them through iTunes always felt like a relic of the early iTunes/iPod days. This information is available directly in the main Finder sidebar.

As ever, thereno hesitation in recommending Mac users update to the latest version of the operating system. Of course, thathelped along by the fact that ita free upgrade. This is one of the more transformative MacOS updates in recent memory, and most of the new features are welcome — as I said, I&m not in love with Music for personal workflow reasons, but Sidecar is a biggie.

MacOS Catalina is now available for all users.

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