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May 22, 2019
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Suse is once again an independent company

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Open-source infrastructure and application delivery vendor Suse — the company behind one of the oldest Linux distributions — today announced that it is once again an independent company. The company today finalized its $2.5 billion acquisition by growth investor EQT from Micro Focus, which itself had acquired it back in 2014.

Few companies have changed hands as often as Suse and yet remained strong players in their business. Suse was first acquired by Novell in 2004. Novell was then acquired by Attachmate in 2010, which Micro Focus acquired in 2014. The company then turned Suse into an independent division, only to then announce its sale to EQT in the middle of 2018.

It took a while for Micro Focus and EQT to finalize the acquisition, though, but now, for the first time since 2004, Suse stands on its own.

Micro Focus says that when it acquired Attachmate Group for $2.35 billion, Suse generated just 20 percent of the group’s total revenues. Since then, Suse has generated quite a bit more business as it expanded its product portfolio well beyond its core Linux offerings and into the more lucrative open-source infrastructure and application delivery business by, among other things, offering products and support around massive open-source projects like Cloud Foundry, OpenStack and Kubernetes.

Suse CEO Nils Brauckmann will remain at the helm of the company, but the company is shaking up its executive ranks a bit. Enrica Angelone, for example, has been named to the new post of CFO at Suse, and Sander Huyts is now the company’s COO. Former Suse CTO Thomas Di Giacomo is now president of Engineering, Product and Innovation. All three report directly to Brauckmann.

SUSE buys HPE’s OpenStack and Cloud Foundry assets

“Our genuinely open, open source solutions, flexible business practices, lack of enforced vendor lock-in and exceptional service are more critical to customer and partner organizations, and our independence coincides with our single-minded focus on delivering what is best for them,” said Brauckmann in today’s announcement. “Our ability to consistently meet these market demands creates a cycle of success, momentum and growth that allows SUSE to continue to deliver the innovation customers need to achieve their digital transformation goals and realize the hybrid and multi-cloud workload management they require to power their own continuous innovation, competitiveness and growth.”

Since IBM recently bought Red Hat for $34 billion, though, it remains to be seen how long Suse’s independent future will last. The market for open source is only heating up, after all.

News Source = techcrunch.com

Taxing your privacy

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Data collection through mobile tracking is big business and the potential for companies helping governments monetize this data is huge. For consumers, protecting yourself against the who, what and where of data flow is just the beginning. The question now is: How do you ensure your data isn’t costing you money in the form of new taxes, fees and bills?  Particularly when the entity that stands to benefit from this data — the government — is also tasked with protecting it?

The advances in personal data collection are a source of growing concern for privacy advocates, but whereas most fears tend to focus on what type of data is being collected, who’s watching and to whom is your data being sold, the potential for this same data to be monetized via auditing and compliance fees is even more problematic.

The fact is, you don’t need massive infrastructure to now track/tax businesses and consumers. State governments and municipalities have taken notice.

The result is a potential multi-billion dollar per-year business that, with mobile tracking technology, will only grow exponentially year over year.

Yet, while the revenue upside for companies helping smart cities (and states) with taxing and tolling is significant, it is also rife with contradictions and complications that could, ultimately, pose serious problems to those companies’ underlying business models and for the investors that bet heavily on them.

Photo courtesy of Getty Images/chombosan

The most common argument when privacy advocates bring up concerns around mobile data collection is that consumers almost always have the control to opt out. When governments utilize this data, however, that option is not always available. And the direct result is the monetization of a consumer’s privacy in the form of taxes and tolls. In an era where states like California and others are stepping up as self-proclaimed defenders of citizen privacy and consent, this puts everyone involved in an awkward position — to say the least.

The marriage of smart cities and next-gen location tracking apps is becoming more commonplace.  AI, always-on data flows, sensor networks and connected devices are all being employed by governments in the name of sustainable and equitable cities as well as new revenue.

New York, LA and Seattle are all implementing (or considering implementing) congestion pricing that would ultimately rely on harvesting personal data in some form or another. Oregon, which passed the first gas tax in 1919, began it’s OreGo Program two years ago utilizing data that measured miles driven to levy fees on drivers so as to address infrastructure issues with its roads and highways.

Image Courtesy of Shutterstock

As more state and local governments look to emulate these kinds of policies the revenue opportunity for companies and investors harvesting this data is obvious.  Populus, (and a portfolio company) a data platform that helps cities manage mobility, captures data from fleets like Uber and Lyft to help cities set policy and collect fees.

Similarly, ClearRoad  is a “road pricing transaction processor” that leverages data from vehicles to help governments determine road usage for new revenue streams.  Safegraph, on the other hand, is a company that daily collects millions of trackers from smartphones via apps, APIs and other delivery methods often leaving the business of disclosure up to third parties. Data like this has begun to make its way into smart city applications which could impact industries as varied as the real estate market to the Gig Economy.

“There are lots of companies that are using location technology, 3D scanning, sensor tracking and more.  So, there are lots of opportunities to improve the effectiveness of services and for governments to find new revenue streams,” says Paul Salama, COO of ClearRoad . “If you trust the computer to regulate, as opposed to the written code, then you can allow for a lot more dynamic types of regulation and that extends beyond vehicles to noise pollution, particulate emissions, temporary signage, etc.”

While most of these platforms and technologies endeavor to do some public good by creating the baseline for good policy and sustainable cities they also raise concerns about individual privacy and the potential for discrimination.  And there is an inherent contradiction for states ostensibly tasked with curbing the excesses of data collection then turning around and utilizing that same data to line the state’s coffers, sometimes without consent or consumer choice.

Image courtesy Bryce Durbin

“People care about their privacy and there are aspects that need to be hashed out”, says Salama. “But we’re talking about a lot of unknowns on that data governance side.  There’s definitely going to be some sort of reckoning at some point but it’s still so early on.”

As policy makers and people become more aware of mobile phone tracking and the largely unregulated data collection associated with it, the question facing companies in this space is how to extract all this societally beneficial data while balancing that against some pretty significant privacy concerns.

“There will be options,” says Salama.  “An example is Utah which, starting next year, will offer electric cars the option to pay a flat fee (for avoiding gas taxes) or pay-by-the-mile.  The pay-by-the-mile option is GPS enabled but it also has additional services, so you pay by your actual usage.”

Ultimately, for governments, regulation plus transparency seems the likeliest way forward.

Image courtesy Getty Images

In most instances, the path to the consumer or tax payer is either through their shared economy vehicle (car, scooter, bike, etc.) or though their mobile device.  While taxing fleets is indirect and provides some measure of political cover for the governments generating revenue off of them, there is no such cover for directly taxing citizens via data gathered through mobile apps.

The best case scenario to short circuit these inherent contradictions for governments is to actually offer choice in the form of their own opt-in for some value exchange or preferred billing method, such as Utah’s opt-in as an alternative way to pay for road use vs. gas tax.   It may not satisfy all privacy concerns, particularly when it is the government sifting through your data, but it at least offers a measure of choice and a tangible value.

If data collection and sharing were still mainly the purview of B2B businesses and global enterprises, perhaps the rising outcry over the methods and usage of data collection would remain relatively muted. But as data usage seeps into more aspects of everyday life and is adopted by smart cities and governments across the nation questions around privacy will invariably get more heated, particularly when citizen consumers start feeling the pinch in their wallet.

As awareness rises and inherent contradictions are laid bare, regulation will surely follow and those businesses not prepared may face fundamental threats to their business models that ultimately threaten their bottom line.

News Source = techcrunch.com

SimbaPay launches Kenya to China payment service via WeChat

in africa/Barclays/ceo/China/Column/coo/Delhi/east africa/Economy/electronics/Europe/India/internet access/kenya/London/M-Pesa/mobile payments/money/Nairobi/north america/Politics/Safaricom/Software/TechStars/Tencent/United Kingdom/Vodafone/WeChat/western union by

Forging another link between Africa and China’s digital economies, the African-focused money transfer startup SimbaPay and Kenya’s Family Bank are partnering with WeChat to launch an instant payment service from East-Africa to China.

The product partnership is aimed at Kenyan merchants who purchase goods from China—Kenya’s largest import source.

Using QR codes, SimbaPay developed a third-party payment aggregator that enables funds delivery into WeChat’s billion plus user network.

Individuals and businesses can now send funds to China through Family Bank’s PesaPap app, Safaricom’s M-Pesa, or by texting USSD using the code *325#.

The service opens up a faster and less expensive money transfer option between Kenya and China through the TenCent-owned WeChat social media platform.

“Kenya imports about $4 billion goods from China. That’s the total market that we’re getting into. We’re looking at a single digit market share of the transactional volume around that,” SimbaPay Founder and CEO Sagini Onyancha told TechCrunch.

“The users [of the new product] are primary small Kenyan businesses, that import phones, gadgets, electronics…small to medium size traders who import goods from China,” he said.

SimbaPay and Family Bank will generate revenues on the WeChat based transfer service through a fee share arrangement on transactions. “We have a sliding scale of charges [for the service]. For example, to send the equivalent of $80 will cost $3.50,” said Sagini.

This presents a significant reduction of fees and opportunity cost for Kenyan traders who import from China, according to Sagini and Family Bank.

Current available payment methods to China for Kenyan businesses are less secure and more expensive options such as traditional money transmitters (Western Union), SWIFT, and off the grid services, according to Sagini and Family Bank Chief Operation Officer (COO) Godfrey Kariuki Kamau.

“There are informal channels on the street who will take your money, get it paid out to the recipient [in China] one or two days later and take a percentage,” said Sagini.

SimbaPay and Family Bank estimate over seven million customers and businesses will be able to access their China WeChat payment service, based on projections of Kenya’s current SMEs.

Located in Nairobi, Family Bank has a current customer base of 600,000 account holders (including SMEs) across 92 branches, according to COO Kariuki Kamau.

Prior to the SimbaPay-Family Bank China service, he said a number of Family Bank’s small business customers “were taking cash from our counters and pooling with…informal transmitters” to pay Chinese vendors.

Kariuki Kamau estimates the immediate transactional potential for the new SimbaPay WeChat based service will be $1 million in the first three months.

“The businesses in Kenya import over $4 billion from China, so this could be conservative. We could see this grow 4 to 5 times beyond that when people hear they can send money directly,” said Kariuki Kamau.

On regulation of this new service, he confirmed “Family Bank got the approval of the [Kenyan] Central Bank for SimbaPay to move in the market and…we confirmed with the UK financial regulators that SimbaPay is allowed to do this business.

Headquarted in London, SimbaPay launched in 2015 to facilitate more cost effective and efficient transfer of funds across Africa. The platform works as a gateway payment product “for banks and mobile money providers to offer their customers without having to make any major technical integration” to send funds across Africa’s borders, explained Sagini.

“We’ve created the platform in such a way that we’re able to provide this service like a SaaS B2B service to banks and telcos…and our service is available without internet access,” Sagini said—noting the platform’s USSD capabilities.

The startup has focused more on capturing intra-Africa and out-of-Africa payments volumes, compared to a number of fintech companies with an eye on the multi-billion dollar remittance market for funds sent to Africa from regions such as Europe and North America.

SimbaPay transfers funds to 11 countries—9 in Africa then to China and India. “Early next year we’ll increase this to 29 countries,” said Sagini. This includes offering the WeChat China payment service elsewhere in East Africa.

SimbaPay has raised $1 million in seed funds from TechStars, Barclays Accelerator, and local angel investors, according its CEO.

News Source = techcrunch.com

SAP’s SAP.io Foundry debuts the graduates of its second women-focused accelerator

in Accelerator/berlin/blockchain infrastructure/Business/CAD/ceo/coca-cola/coo/Delhi/e-commerce/Economy/India/machine learning/Narrativ/New York/Paris/Politics/San Francisco/sap/Sapphire Ventures/shirley chen/TC/TechStars/Tel Aviv/United States by

SAP, the German-based enterprise software giant, has unveiled the New York-based cohort from its SAP.io Foundry accelerator programs focused on women-led technology companies.

The first program was launched in San Francisco in July 2017, and while the company has launched additional accelerator programs in Berlin and Tel Aviv (with plans for a Paris accelerator in the Fall), it’s SAP’s San Francisco and New York programs that have a specific focus on women and founders of color, according to Vanessa Liu, a vice president in charge of the New York program.

“The first one launched last summer, with San Francisco that was in July. Berlin launched in the fall with TechStars as a partner, Tel Aviv launched with The Junction,” Liu said. 

The partnerships with Techstars in Berlin and The Junction in Tel Aviv were designed solely to gain exposure to those markets, while the San Francisco and New York programs focused on diversity — as well as building out the SAP network among startups.

The Foundry accelerator programs are independent from the company’s $35 million Foundry fund, according to Liu. Companies that progress through the program give up no equity and receive no capital. Rather, the companies involved get access to the SAP network of partners and customers and the companies various technical and support services, Liu said.

“This is more about how do you work together with SAP and customers like GE, Coca Cola, and Stanley Black & Decker,” said Liu. 

For the New York cohort that demoed their wares yesterday, eight of the nine companies that participated were also based in New York, with one group of founders making the trek up from Georgia for the program.

And while there’s been no instance yet where companies that graduate from the accelerator receive a capital commitment later from the Foundry fund, Liu did not rule out the possibility.

That Foundry fund typically will invest between a quarter of a million and one million dollars into companies focused on machine learning, big data, and other enterprise software related applications. Checks are typically $250,000 at the seed stage increasing to $1 million as a company grows into a Series A investment.

In some ways, Liu said, the Foundry fund was a way for SAP to build on the work it had done with startups through its (now independent) Sapphire Ventures fund. That had been the vehicle SAP had previously used to connect with the startup world and early stage tech companies and entrepreneurs.

“We’re definitely not the first to market,” said Liu. “But we’re looking at it not just only in making investments and thinking about how to do that but it’s also about cultivating investments and making sure that we do that right.”

For the Foundry accelerator programs in the U.S. doing it right means focusing on gender and racial diversity. The criteria for the program is that at least one c-suite executive and member of the founding team be female. And of the nine companies in the cohort, only two companies were admitted where women were not serving in the chief executive role, Liu said.

These are the executives and companies that went through the SAP.io Foundry Accelerator in New York.

Tongtong Gong, founder and COO of Amberdata, a provider of monitoring and analytics for blockchain infrastructure and smart contract applications.

Margaret Martin, founder and CEO of CN2, a software service that transforms the CAD, 3D and 2D content they create everyday into compelling mobile X-Reality (AR+VR=XR) applications.

Ariadna Quattoni and Paul Nemirovsky, founders of DMetrics, which enables non-developers to build machine learning algorithms to extract insights from any text, in mere hours, and with zero coding.

Kate Brandley Chernis, co-founder & CEO of Lately, is selling a machine learning-based marketing dashboard to provide more consistent marketing messages across large platforms.

Shirley Chen, founder & CEO of Narrativ, sells a contextually relevant smart linking and ad placement technology

Lisa Xu, co-Founder & CEO of Nopsec, a provider of threat prediction and cyber risk remediation solutions for enterprises to prevent security breaches.

Jade Huang, co-founder & CEO of StyleSage,  which enriches product listings with attributes and then maps those products to eCommerce sites.

Jag Gill, founder & CEO of Sundar, a software service connecting apparel brands and retailers with suppliers of textiles, raw materials and garments.

Susan Danziger, Co-founder and CEO of Ziggeo, an embeddable video recorder/player that captures video and provides insights.

News Source = techcrunch.com

Nigeria’s Piggybank.ng raises $1.1M, announces group investment product

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Seeking to tap into Africa’s informal savings groups the Nigerian investment startup Piggybank.ng closed $1.1M in seed funding and announced a new product — Smart Target, which offers a more secure and higher return option for Esusu or Ajo group savings clubs common across West Africa.

The financing was led with a $1 million commitment from LeadPath Nigeria, with Village Capital and Ventures Platform contributing $50,000 each.

Founded in 2016, Piggybank.ng offers online savings plans — primarily to low and middle income Nigerians — for deposits of small amounts on a daily, weekly, monthly, or annual basis. There are no upfront fees.

Savers earn interest rates of between 6 to 10 percent, depending on the type and duration of investment, Piggybank.ng’s Somto Ifezue told TechCrunch in Lagos with co-founders Odunayo Eweniyi and Joshua Chibueze.

Users need an account with one of PiggyBank.ng’s bank partners to use the products. The startup generates returns for small-scale savers (primarily) through investment in Nigerian government securities, such as bonds and treasury bills.

PiggyBank.ng generates revenue through asset management and from the float its balances generate at partner banks.

The startup looks to grow clients across younger Nigerians and the country’s informal saving groups.

“The market that we are trying to serve is largely the millennial market, though we do not exclude anyone,” said Eweniyi, the company’s chief operating officer. The venture also looks to meet a demand in Nigeria for accessible investment options, citing a survey they conducted indicating that as a top priority for people with discretionary income.

“Piggybank offers savings, but our vision is not just savings, but to become a holistic platform — a financial warehouse — where other financial providers can plug in their services for PiggyBank users,” said Eweniyi. She cited banks, investment houses, insurance, and pension funds as possible partners.

The company currently has 53,000 registered users — 60 percent of whom are Nigerian Millennials — who have saved in excess of $5M since 2016, according to a release.

PiggyBank.ng will use its $1.1M in new seed funding for “license acquisition and product development.”

The startup has taken preliminary steps to launch in other African countries (Kenya in particular) but could not offer exact details.

Groups will be able to choose savings options and goals through PiggyBank.ng’s app and receive automated disbursement of returns across their individual bank accounts, according to COO Eweniyi .

As for how the company assures savers it won’t become another Ponzi scheme, Piggybank.ng and its lead investor point to the startup’s pending banking license with Nigeria’s Central Bank. The company is in the process of acquiring a micro-finance banking license, something LeadPath Nigeria founder Olumide Soyombo confirmed on a call with TechCrunch. He also pointed to Piggybank’s client balances being held with registered banks, which are protected under Nigeria’s own FDIC type banking insurance.

Soyombo will take a role on Piggybank.ng’s board and he’d like to see them open up new options for individuals to input money on the platform. “The agent network business is a huge play we plan to go into. They’ve basically become like human ATMs,” Soyombo said. He referenced Nigerian digital payment company Paga and Safaricom’s M-Pesa with large agent network stations where clients can fund digital accounts with cash.

While digital payments products have caught on in certain parts of Africa, E-Trade type citizen investment platforms have yet to emerge at any scale.

Soyombo doesn’t see Piggybank.ng moving from fixed income investments to equities just yet. “Maybe down the line stocks could be an interesting play, but not right now. People are currently looking for a more risk free place to e-tail,” he said.

Soyombo believes Piggybank.ng has the potential to become an acquisition target.

“They usually only happen in our market with two main players: banks and telcos,” he said. “The banks have been slow to try new things in this savings space. Piggybank is coming in…and filling a particular need, so they are in a very acquisitive space.”

News Source = techcrunch.com

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