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Smartphone woes continue as global market dips 9% • ZebethMedia

More doom and gloom for smartphone manufacturers, as global smartphone shipments experience the third consecutive decline this year. Per numbers from Canalys, shipments dropped a lowly 9% last quarter, marking the worst Q3 for the category since 2014. Apple is a rare bright spot among the numbers, with some positive growth as the rest of the top five posted declining numbers from the same time last year. Samsung remains in first place, with 22% if the overall market, while Apple, Xiaomi, Oppo and Vivo round out the top five. If you’ve followed the category with any regularity, none of this will come as any surprise, of course. Following years of explosive growth, numbers plateaued and began dropping off, due to aspects like pricing and market saturation. Things, naturally, were only accelerated by the pandemic, courtesy of lockdowns and economic struggles. Since then, supply chain shortages, inflation and the like have only served to exacerbate the situation. Image Credits: Canalys “The smartphone market is highly reactive to consumer demand and vendors are adjusting quickly to the harsh business conditions,” says Canalys Analyst Amber Liu. “For most vendors, the priority is to reduce the risk of inventory building up given deteriorating demand. Vendors had significant stockpiles going into July, but sell-through gradually improved from September owing to aggressive discounting and promotions.” For now, at least, the category shows no signs of future improvement.

Biden’s new restrictions on exporting semiconductor tools hit China where it hurts • ZebethMedia

Chinese semiconductor manufacturers and their U.S. suppliers should have seen the Biden administration’s latest export restrictions coming. It’s possible they did. The question is whether they’re prepared. Years ago, the Trump administration sent the first shot across the bow, first cutting off Huawei from advanced chips and later successfully pressing the Dutch government to bar the sale of EUV lithography machines made by Netherlands-based ASML to leading Chinese semiconductor firm SMIC. The EUV ban kept SMIC and, by association, China, from getting a chance at producing leading-edge chips with smaller transistors. Smaller transistors make for faster, more energy-efficient chips, and there were concerns that EUV-made Chinese chips would have facilitated myriad military and surveillance applications, including hypersonic missiles and AI-powered video and cyber monitoring tools. Though SMIC said it could produce chips that were similar to some of its competitors’ second-best designs, the yields were reportedly atrocious. Without EUV, the process was unlikely to be profitable anytime soon. China is likely trying to develop its own version, but it’ll be a long road. Even if Chinese companies could get their hands on EUV and related technologies, whether through espionage or some other means, they still would have to duplicate ASML’s global supply chain of more than 5,000 suppliers, some of which are the only ones that have the expertise to make those specific parts.

Calm launches clinical mental health offering, Calm Health • ZebethMedia

Calm, the subscription-based mindfulness app, today announced its first foray into a clinical mental health offering: Calm Health. Offered through payers, providers and self-insured employers, Calm Health includes condition-specific programs designed to “bridge the gap between mental and physical healthcare,” according to the company. Calm Health both replaces Calm’s previous employer offering, Calm for Business, and builds off of Calm’s acquisition of tech startup Ripple Health Group in early February. Using Ripple’s technology, Calm Health connects users with different healthcare options, starting with support for patients suffering from anxiety or depression or using programs in-between therapy sessions. Calm plans to eventually add mental health programs for people with physical conditions like hypertension, obesity, heart disease and cancer. “Mental health has risen to the forefront of our nation’s health concerns,” Calm CEO David Ko said in a statement. “From the tolls of the pandemic to financial uncertainty and workplace anxieties, people have turned to Calm over the past ten years to manage their mental health. As we move into healthcare, our goal is to reach even more people with clinical mental health tools and destigmatize the importance of regular mental healthcare.” The rollout of Calm Health comes after a bit of a rough patch for Calm, which laid off 20% of its staff in August as usage fell from a pandemic peak. Prior to the layoffs, Ripple CEO David Ko became Calm’s chief executive, signaling the company’s ambitions to move into new market opportunities. As of December 2020, Calm was valued at $2 billion and had raised $218 million from investors including Insight Venture Partners, Ashton Kutcher’s Sound Ventures and Creative Artists Agency. It competes against rivals including Headspace Health, the result of a 2021 merger between mental health company Ginger and mindfulness-focused Headspace. Headspace Health recently acquired Shine and Sayana as the macroeconomic climate spurred consolidation in the health tech space.

‘Investors got scared off by Amazon’s attack’ • ZebethMedia

Way back in 2010, Marc Lore struck a more than half-a-billion dollar deal to sell Quidsi — the company behind Diapers.com and Soap.com — to Amazon. The blow-out acquisition helped turn Amazon into “the everything store,” but twelve years later, Lore described the sale as “upsetting.” “We sold out,” said Lore — who co-founded both Quidsi.com and Jet.com — at Disrupt 2022. “With Walmart, we were happy to sell; we saw that as a way to accelerate our vision,” said the billionaire of the 2016 sale of Jet.com to Walmart. The “Amazon situation was different. It was a forced situation. We did not want to sell,” Lore said on stage in conversation with ZebethMedia’s Ingrid Lunden. To stick it to the competition, Amazon “cut the price of diapers by 30%, right? Which is unheard of,” recalled Lore. But in the face of ratcheting pressure, the former Quidsi executive claimed his now-defunct business was “still growing nicely.” Lore claimed this was among the reasons why Amazon ultimately decided snapped up the brand. But before that point, Lore believed that Quidsi needed to raise at least $100 million more to adequately challenge Amazon— an especially hefty sum at the time. Only, he couldn’t secure it. (In all, Quidsi raised around $79 million in equity and debt from investors, including Accel, Bessemer Venture Partners and Pinnacle Ventures.) “That’s what it would have taken to feel like we had enough capital to really do it,” said Lore. “And yeah, the investors got scared off by Amazon’s attack.” In a side note, Lore claimed that Quidsi also “had an offer from another company” for “like $100 million more,” yet the co-founder enigmatically declined to share additional details. A day after the Amazon-Quidsi transaction closed, Lore said that he and others from the company went to a bar, “drinking our tears away” over “how upsetting it was, because we sold out.” “We were building something really special,” Lore added, citing Wag.com and other sites under the now-extinct Quidsi umbrella. In the eyes of the co-founder, Quidsi’s customer experience back then “was a lot better than you’d find on Amazon or anywhere else.” But $100 million “was a lot of money” back then, and Lore concluded: “People were just scared of Amazon.”

Sony’s $200 DualSense Edge wireless controller will release on January 26 • ZebethMedia

Sony’s DualSense Edge wireless controller for the PS5 is launching globally on January 26, the company announced on Tuesday. The new wireless controller will be priced at $199.99. Pre-orders for the controller will be available starting on October 25 at select retailers. You’ll also be able to purchase replaceable stick modules for $19.99. The new controller includes several personalization options, including button remapping, the ability to fine-tune stick sensitivity and triggers, options to swap between multiple control profiles and an on-controller user interface. The DualSense Edge also includes the signature features of the DualSense wireless controller, such as haptic feedback and adaptive triggers. “You can make the DualSense Edge wireless controller uniquely yours with the included three changeable sets of stick caps and two changeable sets of back buttons,” Sony said in a blog post. “Everything will come bundled in the included carrying case, and you can even charge the controller via USB connection while it’s stored in the case to make sure you’re always ready for your next play session.” The purchase will include a USB braided cable, two standard caps, two high dome caps, two low dome caps, two half dome back buttons, two lever back buttons, connector housing and a carrying case.

a16z GP on investing billions in Adam Neumann • ZebethMedia

Andreessen Horowitz (a16z) general partner Chris Dixon shed some light on the firm’s recent investments in controversial WeWork founder Adam Neumann on stage at ZebethMedia Disrupt 2022. Neumann raised $350 billion from the venture firm back in August in a deal that reportedly valued his new real estate venture, Flow, at $1 billion before it had even launched. That investment, which marked the largest check a16z had ever written for a single company and its second bet on a Neumann startup in 2022, drew criticism from VCs and founders. Many noted Neumann’s less-than-ideal track record at WeWork, which under his tenure tanked in value from ~$47 billion to ~$8 billion and gained a reputation for mismanagement and poor treatment of employees. Marc Andreessen, the venture firm’s founder who led the Flow deal, saw Neumann’s track record differently, Dixon told interviewer Lucas Matney. “He’s one of the few founders — I mean, he’s one of the only people in the world who has built a real estate brand name,” Dixon said. The funding news in August also came on the heels of the release of WeCrashed, an Apple TV+ show that depicted Neumann’s rise, fall and exit from WeWork with actor Jared Leto playing the founder. The show, which portrayed Neumann as a narcissistic, chaotic leader, was inspired by actual events but did not purport to be a documentary. “I know there’s a lot of stuff written about [Neumann] and things we did, but we do our own research. We just don’t rely on books and movies for our diligence. We do our own research, and we just came to a different conclusion on a lot of what happened,” Dixon said.

The Open 3D Engine adds improved terrain creation and collaboration tools • ZebethMedia

For a long time, the world of 3D engines — especially for game developers — was all about Unity and Epic’s Unreal Engine. Then, when Amazon started its ill-fated attempt to get into gaming, it launched the Lumberyard engine (which itself was based on Crytek’s CryEngine). And while you hopefully don’t remember the disappointment that was Crucible, the fact that those games didn’t pan out had an interesting effect. Amazon, which hasn’t always been known as a champion of open source, open-sourced Lumberyard and launched the Open 3D Foundation (under the Linux Foundation banner). Since then, Adobe, Microsoft, Intel, Huawei, Niantic, LightSpeed Studios and, most recently, Epic signed on as Premier foundation members. This week, the foundation, which is now just over a year old, is hosting its 3DCon conference and launching the latest version of the Open 3D Engine. The newest release (22.10) focuses on quality-of-life improvements around performance, workflow and usability. There is a new onboarding experience for new users, for example, and new tools for collaborating with other team members on remote projects, something that has only become more important in this day and age. Teams can now share and download projects by just sharing a URL, for example, and new project templates make it easier for new team members to get started. The developers also launched new features to make setting up and debugging multi-player applications easier, and for artists, it’s now easier to bring their animations in the Open 3D Engine. And for all of those developers building open-world games and experiences, there’s now an improved Terrain system that can scale up to 16x16km worlds. Image Credits: O3D Foundation “With this latest version, our community continues to focus on making it easier for developers, artists and content creators worldwide to build amazing 3D experiences, with an emphasis on performance, core stability and usability enhancements,” said Royal O’Brien, general manager of digital media and games at the Linux Foundation and executive director of O3DF. “It is gratifying to see the results of their hard work as the Open 3D Engine’s maturity accelerates on the path to becoming the go-to choice for creators who want a modular approach to building immersive experiences.” Image Credits: O3D Foundation It is, of course, interesting that the likes of Epic are joining an effort like the Open 3D Engine, which at first may seem like a competitor — and a free one at that. When I talked to O’Brien about this, he noted that this isn’t all that different from other open source projects that bring together competing vendors. Not only are these engines becoming increasingly complex, but a lot of what they offer at this point is also table stakes. Efforts like the Open 3D Foundation allow them to focus on the features that really set them apart. It helps that Lumberyard and now the Open 3D Engine were, from the outset, meant to be modular. But on top of that, the foundation also provides a neutral place for working on shared standards for interoperability to help developers and artists use the tools they want and then bring them into the engine of their choice, no matter whether they are building games or new AR/VR experiences.  

Code analysis tool AppMap wants to become Google Maps for developers • ZebethMedia

In December 2021, a vulnerability in a widely used logging library that had gone unfixed since 2013 caused a full-blown security meltdown.  The 10/10-rated Log4Shell flaw in Log4j, an open source logging software that’s found practically everywhere, from online games to enterprise software and cloud data centers, claimed numerous victims from Adobe and Cloudflare to Twitter and Minecraft due to its ubiquitous presence. It was described by security experts as a “design failure of catastrophic proportions,” and demonstrated the potentially far-reaching consequences of shipping bad code. Boston-based AppMap, going through ZebethMedia Disrupt Startup Battlefield this week, wants to stop this bad code from ever making it into production. The open source dynamic runtime code analysis tool, which the startup claims is the first of its kind, is the brainchild of Elizabeth Lawler, who knows a thing or two about security. Prior to founding AppMap, she founded DevOps security startup Conjur, which was acquired by CyberArk in 2017, and served as chief data officer for Generation Health, later acquired by CVS. After selling two companies into large enterprises with lots of legacy software, Lawler witnessed firsthand how developers were struggling to understand the systems they were tasked with improving, and finding it difficult to deliver fast and secure code in complex microservices and cloud applications. “It’s surprising to me that people have a mental model of how things work that is actually disconnected from how it actually works,” Lawler tells ZebethMedia. “When we don’t know how our software works, we’re making best guesses when we write code.”  Image Credits: AppMap That led to the creation of AppMap, which was built on the simple idea that developers should be able to see the behavior of software as they write it so they can prevent problems when the software runs. Unlike static analysis tools that don’t show runtime information, AppMap — which was built from the ground up over a three-year period — runs within the code editor to show developers which components are communicating with which components, at what throughput and latency, at what network speed and whether there are any errors between them, enabling developers to get actionable insights and make improvements quicker than before. All of this is done within an interactive code editor extension, which AppMap designed with the help of comic book artists and musicians in order to make it as easy to use and intuitive as possible.  “I’m a data scientist, so I know how overwhelming data can be,” said Lawler. “Google Maps has elegantly shown us how maps can be personalized and localized, so we used that as a jumping off point for how we wanted to approach the big data problem.” To coincide with ZebethMedia Disrupt, AppMap is launching three new features: the ability to share and collaborate with other engineers; performance analysis that alerts developers when code changes will impact performance and scalability; and security analysis that can identify software runtime code issues within a developer’s code editor before they commit their code, be it leaking customer data and secrets into log files or missing or improper authentication or authorization. “We can see the kinds of issues that are now the rising OWASP Top 10. Static issues have gone down in prevalence because we have good scanners for them, but what we don’t have great scanners for are these dynamic issues that are design in nature. If you look at the CWE Top 25, almost half of these are code design issues.” As it’s based on open source, which is evident from the startup’s community-sourced approach to changing its product and adding new features, AppMap is free for developers to use. “We don’t believe you should be charged for self-awareness in programming,” Lawler said. “If we’re going to integrate with your GitHub and we have to provide some background functions or storage, then those are paid services.” Image Credits: AppMap AppMap, which is a seed-stage VC-backed pre-revenue startup, currently has more than 20,000 customers — a figure that’s growing by 20% every month — with developers at IBM, NASA, Sonos and Salesforce using its product. It’s also growing its team, which is made up of employees that have coded at some point in their career and hold deep DevOps, automation, cybersecurity and test-driven development experience. Kevin Gilpin, AppMap’s technical co-founder, describes his career highlight as delivering “build your vehicle online” pages for Ford.  Though it only launched in 2021, the startup’s vision goes far beyond preventing developers from shipping bad code. “We spend a lot of time and energy instrumenting things that are downstream of our application, but we’ve never instrumented the creative process. We’ve never really watched people think, design and create in this way. I think that by having observability data in that moment, it’s going to open up a lot of opportunities. As AppMap evolves, I’d like to think about how this gets even bigger than performance analysis and becomes more of an assistive technology in that realm.”

a16z’s Chris Dixon announces new accelerator program for crypto founders in LA • ZebethMedia

Andreessen Horowitz (a16z) is one of the most influential players in the web3, funding entrepreneurs in the space amid “crypto winter.” Founded and helmed by general partner Chris Dixon, the venture firm’s crypto arm raised a massive $4.5 billion fund in May for its fourth dedicated sector fund to continue backing early-stage founders just as the crypto downturn had begun to take root. Now, it’s doubling down on its programming for crypto founders, Dixon, an early Coinbase backer who has been investing at a16z since 2012, revealed on stage at Disrupt 2022 in San Francisco on Tuesday in an interview with ZebethMedia’s Lucas Matney. On stage, Dixon announced a16z’s plans to expand its educational “Crypto Startup School” initiative to include a new accelerator program for entrepreneurs. The inaugural accelerator program will take place in-person in March in Los Angeles, Dixon said, adding that he has noticed particular excitement in the city around the creator economy and its potential intersections with crypto. Participants in the 12-week program will each get $500k in seed funding and access to mentors and advisors as well as the opportunity to participate in a Demo Day at the end of the course, according to the website. Applications for the accelerator are now open, Dixon said, though he did not share details on the expected cohort size. “This one will be different than the last one in that we will also provide capital and take equity, similar to an accelerator and Startup School combined,” Dixon said of the new program, contrasting it with the current version of “Crypto Startup School.” “Crypto Startup School” first launched in 2020 as a seven-week course meant to educate people on how to build a crypto company. The in-person cohort had 40 founders participating, including those behind companies such as Phantom and Notional Finance, and raised a collective $300 million+ in venture funding, according to a16z. a16z Crypto also released video segments of its lectures for the public to view, which it says have been watched by over 1 million people. Instructors for the first program included Dixon, Stanford computer science professor Dan Boneh, Coinbase founder Brian Armstrong and other well-known industry leaders. Dixon noted that the new program will remain crypto-focused and that a16z is “not trying to build some sort of new startup accelerator,” saying the new offering is instead intended to be an educational program with funding that is tied to the “very specific” sector. When asked about what makes the firm’s offering unique from accelerators such as Y Combinator, Dixon said there isn’t a “grand master plan” for this launch and that it was built as a response to feedback he had been hearing from founders. “We literally just meet entrepreneurs all the time, who say, hey, I wish that conversation we had was available online … so we’re just listening [to them],” Dixon said.

Anthill connects frontline workers to company resources through text messaging • ZebethMedia

If the pandemic has made us completely rethink the way we work, that we — the swath of workers at home in pajamas popping into meetings on Zoom — leaves out a massive chunk of the workforce that continues to show up for work in-person, every time. As knowledge workers explore the intricacies of the virtual office, frontline workers from a cross-section of critical industries still lack the basic tools they need to do simple tasks like switching shifts, asking HR a question or seeing when their next paycheck arrives. “This workforce can’t be overlooked, there is a business imperative right now…[and] there is a really exciting opportunity to create more paths to the middle class,” Anthill co-founder and CEO Muriel Clauson told ZebethMedia. Clauson and Anthill co-founder and CTO Young-Jae Kim met in a PhD program for industrial and organizational psychology at the University of Georgia. Through their shared academic research interests, they identified what Clauson described as a “massive gap” in the communication between frontline, deskless workers and their employers — a gap that workers frequently fall into, to everyone’s detriment: [There are] 2.7 billion people globally, who never sit at computers to do their jobs. So they never worked from home over the pandemic and they never will because they can’t actually do their job that way. So most often folks think of manufacturing, distribution — basically anybody who’s out there working with their hands on the field on the floor. These folks do not use software, and especially work software, they just in general do not and the reason being is they’re not sitting at computers, they’re not going to use something on a desktop. They’re probably not using email [and] they probably don’t even have an email address. And they’re also increasingly not downloading or using apps on their phone — or they don’t even have a phone that you can use an app on. For employers who manage an in-person workforce, attrition is a huge issue. Many workers aren’t necessarily fluent in the language of their workplace and face other barriers to connecting at work, creating turnover issues when they’re not able to communicate effectively. Anthill, which pitched on the Startup Battlefield stage at Disrupt, offers a non-app way for employers to communicate with workers — and vice versa — through text messages, the one sure-fire platform that reaches everybody and doesn’t let anyone fall through the cracks. “We knew as researchers if we wanted these folks to talk to us and stay in our studies we had to text them,” Clauson said. “And so we are super bullish on technology that meets people where they are, works within the fiber of how they already work and live their lives, and doesn’t force them to learn a new suite of technologies.” The idea is to give workers a way to access any information they could need — pay schedules, contact with a manager, taking a sick day — all through text message. And a way on the employer side to automate as much of that as makes sense, all while offering a full portal of resources without forcing people to download apps or jump through hoops that not everyone can manage. In the interest of making access to those resources more equitable, Anthill automatically translates its services into more than 100 languages — a feature that could also help employers retain workers who might be alienated by the lingua franca of the workplace. “A lot of us have family members who have not been able to participate in benefit adoption or knowing how to have any kind of outside of work community through their employer around all those critical things like tax season and schedules and just the basics — because language was a barrier,” Clauson said. “There’s a lot of folks who can work in English, but that doesn’t mean it’s their preferred language and it doesn’t mean that’s going to be the language that they can most successfully navigate their ability to work.” Anthill plans to focus on a handful of core industries out of the gate, including manufacturing, distribution (think Amazon warehouses) and agriculture. Kim and Clauson also see opportunities for connecting deskless workers with employers in retail and healthcare, but observe that those areas have a bit more tech already than some other sectors. “We really focused on individual-level needs [and] what they actually need is communication,” Kim told ZebethMedia. “Those workers, they actually need very simple things, but they need the answer right away,” Kim told ZebethMedia. While some employers have gone the route of using chatbots and apps, Anthill lets managers save recent answers to commonly asked questions and personalize the resources in a way that more tech-focused solutions might overlook. It’s probably difficult for knowledge workers or big tech companies to imagine, but Clauson says that the two modes of communication that Anthill replaces most frequently are AM radio followed by an old-fashioned corkboard. “We do try to stay focused within industry verticals. So we’re very focused right now on manufacturing workers inside of plants or distribution workers in distribution centers or truck drivers,” Clauson said. “That’s where we saw the biggest pain points and that’s where we’re focused first.” Anthill first opened in alpha in late 2020, with paid pilots and a beta version of the product the following year. The company launched a full version of the platform in 2022 and currently operates in over 300 job sites in the U.S., with global contracts in the pipeline slated for 2023. According to the company, large employers trying out Anthill often do a test run with a single distribution center or a cluster of regional sites and scale up from there. They can buy Anthill on a per-user, per-month basis, making it relatively straightforward to scale the platform up and out if it’s a good fit. The services are opt-in, not required, but Kim and Clauson have observed swift adoption that travels by word of

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