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Meta’s vision for the future of VR is a worse version of the past • ZebethMedia

Meta keeps saying VR is the future, but everything it shows us is an inferior rehash of the things we already have. Its event today was, between assurances that everything is great in the Metaverse, a collection of tacit admissions that the best they can hope to do is ape a reality we are all desperately trying to leave behind. The silliest example of this is the new capability to enter a Meta VR environment through an embed on a website. This was described as perhaps the first way many people will experience a virtual environment. It’s hard to know where to start with this notion. With the no doubt internally depressing acceptance that $1,000 VR hardware doesn’t scale well and most people can’t be bothered to try it? With the idea that a shared 3D environment is a new experience? Or that this is something that people actually want to do? Of course people have shared virtual environments for decades. When it’s viewed on a regular monitor, it’s no different than Second Life, or World of Warcraft, or any other of the popular games and platforms that have come and gone (and come again) over the years. The difference is those had a reason to exist: being a game you can progress and share hundreds of hours of unique experiences in, for instance. Meta’s environment is just that: an environment. It’s hard to imagine why anyone would want to join via this web interface unless they had no other option, like if the meeting was only being held in VR. But of course Meta has had trouble even getting its own employees to do that. Meanwhile most people in the world are waiting for VR to be worth the price of a gaming console or laptop. Today’s presentation didn’t really make much progress there. In fact there was an alarming and baffling reiteration of an idea that I thought we left behind a long time ago: a virtual desk. Image Credits: Meta This concept has been cursed for decades, since the most notable failure in the domain: the infamous Microsoft Bob. Meta has very unwisely recreated Bob, a virtual desktop, in ways that have no benefits whatsoever. You can have a worse experience reading emails, or a worse video call, or play games and watch movies on a worse screen. Notably there was very little showing what working at a virtual desk would actually look like, because most of the things people take for granted — effortless multitasking, quick switching between cursor and typing, easy compatibility with apps and websites — don’t exist in VR. Sure, they’re partnering with Microsoft and Accenture and so on, but even so, would Slack or Teams be better in VR, or worse? Like nearly everything, the answer is worse. Virtual meetings with everyone around a virtual office table sound like a nightmare to me. The most telling piece was the admission that the subtleties of human expression are important to communication — someone’s unique smile or posture, a moment of eye contact when the boss flubs a line in a presentation. Their solution is, like nearly everything Meta does, technically impressive and completely misguided. The new headset tracks facial expressions and gaze, meaning it can replicate these in a decent way in a virtual environment, on your new avatars with legs and everything. But it’s so plainly a poor recreation of the real thing, and video calls — for all the issues they have — are actually quite good at catching those little expressions and moments. VR meetings with the expression-tracking tech may be better than VR meetings without, but any VR meeting is still a huge pain in the ass that no one, including the faithful at Meta, would do regularly if they had a choice. Not only that, but working long term within VR doesn’t make sense in most ways, as Meta again admitted without explicitly saying so. The new Quest Pro headset actually has removable eye cups so you can see the real world in your periphery, in order to take some notes, grab your coffee, and so on. They literally cut holes in the headset so you could do normal things that ought to be possible with their much-vaunted mixed reality. Fortunately you won’t have to worry about that because the battery life is very limited. Even if your boss wanted you to be in virtual meetings all day, the headset would conk out before lunch. Isn’t the entire world trying to think past the idea of the office, of the meeting-filled workday, of the traditional form of work that’s essentially a relic of the postwar era? Why would anyone want to cling to these paradigms, unless they had no ideas about what actually comes next? It’s funny because VR is such a powerful technology, as anyone who has used it even once can attest. But Meta, its biggest proponent, doesn’t seem to know what to do with it beyond “what you already do, but worse.” So little of what it showed today suggested the future, and so much clawed at the past to find a crack into which to inject VR — hoping someone, somewhere might agree with them that appearing as a VR avatar in Zoom is something that makes sense. “Is it this? Is this the killer app for VR?” they seem to be asking. Needless to say it isn’t. And judging from the company’s inability to innovate at a large scale over the last years, it may not be capable of finding it.

Making robots that make robots to take over the world • ZebethMedia

Welcome back to Found, where we get the stories behind the startups. This week Darrell and Jordan talk with Scott Gravelle, the CEO and co-founder of Attabotics, a robotics company that specializes in distribution and supply chain. Scott talks about how he was inspired by the Cutter Ants to design a vertical warehouse and create an automated system that was not human-centric but instead functioned as a world that was great for robots. They also spoke about caring for mental health as a founder and developing new leadership skills for a virtual world. If you love live conversations with founders, you’ll love ZebethMedia Disrupt in San Francisco from October 18-20. Use code FOUND for 15% off your ticket. Subscribe to Found to hear more stories from founders each week. Connect with us:

Among Us is coming to the Meta Quest 2 on November 10 • ZebethMedia

Among Us may have had its heyday two full years ago, but Meta isn’t counting out 2020’s hottest multiplayer whodunnit. Today during its big VR developer event, Meta announced that the indie game will hit the Meta Quest 2 on November 10. Meta first announced Among Us back in April, promising that the game would hit the VR platform by the end of the year for players age 13 and up. It’s not likely that we’re going to see AOC playing Among Us in VR these days — that ship has sailed — but Meta can still use all the help it can get pushing adoption for its VR hardware with hit titles that might lure people away from traditional gaming consoles and PCs. Still, it’s pretty late for a viral multiplayer Twitch-powered title like Among Us, which even felt late to the Nintendo Switch and that version hit all the way back in December 2020.  

Meta announces the $1,499 Quest Pro • ZebethMedia

At Meta Connect 2022, CEO Mark Zuckerberg announced the company’s latest virtual reality headset, but after years of striving to bring down the cost-of-entry to the VR world, the newly announced Quest Pro appears to be all about pushing technical boundaries. The new device shares the Quest name, but has little in common with the more mass market-geared headset, which Meta will continue to sell, albeit at the $399 starting price which it recently announced. With a much higher price point of $1500, Meta is pitching the Quest Pro as a productivity device. The Quest Pro’s headline feature is full color passthrough, which uses four cameras on the outside of the device to capture and display the space outside of the headset to users wearing the device. A black-and-white version of this is available on the Quest 2. The feature will allow for “mixed reality” experiences which overlay digital content onto the user’s real world environment. These use cases are enabled by a lot of significant hardware changes. The new “pancake” lenses mean a significantly reduced size with a 40% thinner display stack compared with the Quest 2. The headset utilizes a Qualcomm Snapdragon XR2+ chipset and 1800 × 1920 per-eye mini-LED displays. The headset comes with 12GB of RAM onboard and 256GB of storage. The Quest Pro integrates eye-tracking as well. The headset also boasts redesigned controllers which lose the large tracking rings and instead boast onboard camera which track the controllers relative to the headset. The battery life is the biggest question mark here, Meta claims the headset will only last for 1-2 hours, which is likely a tough sell for a “Pro”. The device goes up for pre-order today and will ship October 25.

Meta partners with NBCUniversal to bring you into “The Office” • ZebethMedia

We already know that Meta wants us to go to the office in in virtual reality — but what about The Office? As part of a multi-year partnership with NBCUniversal, NBCUniversal’s streaming app Peacock is coming to the Meta Quest virtual reality headset. “Starting next year, Meta and NBCU will co-create experiences around The Office, Universal Monsters, DreamWorks, Blumhouse, Halloween Horror Nights and so much more,” said Vishal Shah, Meta’s VP of Metaverse, at the Meta Connect event. Fans can engage with this content through the social VR app Horizon Worlds, as well as at Universal Studios theme parks in real life. This partnership could help Meta capitalize around existing fandoms to get them to buy VR headsets, but Meta didn’t provide much detail about what these VR experiences will entail. A Halloween Horror Nights-themed experience could capitalize on VR’s unique ability to make horror even more horrifying (I mean, it is immersive). And, since DreamWorks is in the mix here, may we suggest a Shrek game?

Meta’s Quest Store hits $1.5 billion in total revenue to date • ZebethMedia

While outside research data suggests that the number of VR headsets being shipped over the past couple years has surged, the release of new VR titles hasn’t always kept pace. Today at its Connect event, Meta showcased some new data on the performance of the titles in its Quest Store. Meta shared that over  $1.5 billion has been spent on games and apps in the Quest Store. The company notes that more than one-third of the company’s 400 Quest titles have grossed more than $1 million in sales, with 33 titles having surpassed $10 million in gross revenue. A couple bright spots that Meta noted among individual titles include The Walking Dead: Saints & Sinners surpassing $50M in revenue on Quest and Resident Evil making $2 million in its first 24 hours in the store. These are all obviously cherrypicked metrics meant to showcase how VR is doing in the best possible light. Meta has had plenty of challenges on the content front this year as regulators have taken aim at their M&A efforts and venture investment in VR content has mostly dried up.

Social commerce startup Elenas secures $20M to help more LatAm women sell online • ZebethMedia

Elenas estimates that 11 million women in Latin America sell consumer items via catalogs and door-to-door sales methods. It is digitizing that process so they can more easily sell from home. Founder and CEO Zach Oschin started the Colombia-based social commerce company in 2018 (and participated in our Latin American Startup Battlefield that year) to move the traditional independent sales process online. Here’s how it works: Entrepreneurs can browse a portfolio of hundreds of thousands of wholesale products in areas like beauty, personal care, home goods and electronics, decide what they want to sell, how much they want to mark up the price and then promote the products on social channels like WhatsApp and Facebook. Elenas also takes care of the product sourcing, delivery and payment collection. In the past year, more than 100,000 women in Colombia and Mexico have sold over 2 million orders and earned millions of dollars on the platform. To accelerate that trajectory, Elenas raised $2 million in seed funding in 2020 and another $6 million in Series A capital in 2021. Now the company is back with an even bigger Series B round of $20 million. This gives the company more than $28 million in total funding to date. While Oschin didn’t go into detail on Elenas’ valuation, he did say it was an increase from the previous round. He also said the company grew revenue over 5x between the rounds. DILA Capital leads this new investment and is joined by FJ Labs, Endeavor Catalyst, the Inter-American Development Bank’s IDB Lab, Broadhaven Ventures, Mercado Libre, Grupo Bolivar and Leo Capital. “Elenas is revolutionizing the direct-sales industry by giving millions of people across the region the opportunity to sell thousands of products through their digital catalog,” said Alejandro Diez Barroso, managing partner at DILA Capital, in a written statement. “We are convinced that we are backing the right team in the right market and at the right time.” Being a country with three times the population of Colombia, Mexico is poised to be the company’s largest market in the next year, and it has already “achieved a profitable and sustainable growth model” there, Oschin said. Since launching there in 2021, Elenas was able to scale up 30%, which means Mexico accounts for more than a third of its business in just one year, which he said took two-and-a-half years to achieve in Colombia. This is while other e-commerce companies haven’t fared as well, Oschin said. For example, he notes that by starting with lower ticket items like with grocery delivery, some companies were not able to reach the right margin profile or build out infrastructure to the level needed to reach profitability. “There was a massive boom of social commerce companies heavily funded in 2021, but that also meant the rise of social commerce models that were highly unprofitable,” Oschin added. “Some achieve unicorn status, and we are now seeing some of those models pulling back, shut down or laying off staff.” He went on to explain that Elenas bucked this trend by focusing on nonperishable items, like lifestyle products, home goods, fashion and accessories, from the beginning, which yielded more healthy profit margins and higher ticket prices. Not having to build its own infrastructure was another way. That model enabled the company to scale across Colombia and Mexico and deliver to 600 towns, including rural areas where that had not been previously accomplished. In addition to growing revenue 5x between the Series A and Series B rounds, the company more than doubled its employee headcount to 230 people. Up next, Elenas will continue to expand its seller network in both markets with focus on scaling it up significantly over the next year so that it can invest in better products and experiences for both sellers and providers. It will also infuse some capital into engineering and product to build out additional core features, for example, seller business management tools like customer relationship management, product recommendations and financial services. “We want to expand into financial services that power their businesses,” Oschin said. “Fifty percent of our sellers have never had a bank account before, so this is an underbanked population, and when running a business, having financial services is important. Our partnership with Grupo Bolivar will be working on that.”

Honda to create $700M EV hub in Ohio • ZebethMedia

Honda said on Tuesday it is spending $700 million to retool three of its Ohio plants to build electric vehicles as it aims to phase out gas engines by 2040. Batteries for the electric vehicles from Honda and its Acura division will be supplied by a joint venture with LG Energy Solutions. The automaker confirmed that the $4.4 billion battery plant will be located near Honda’s operations in Fayette County, Ohio, pending regulatory approval. The “new EV hub” will leverage Honda’s manufacturing and purchasing network in Central Ohio, emblematic of an industrywide scramble to bring battery production onshore to control supply and access to new battery technologies. So far, automakers and suppliers have announced more than $38 billion in investment through 2026 to boost battery production in the U.S., according to AlixPartners. That figure is likely to rise as the industry takes advantage of the $40 billion in tax credits included in the Inflation Reduction Act aimed at accelerating EV production. Last month, Ford broke at its $5.6 billion BlueOval City complex in Tennessee, where it plans to begin building advanced batteries for future Ford and Lincoln EVs, including the F-150 Lightning and a second battery-electric pickup, in 2025. Toyota plans to spend $3.8 billion to build a battery plant near Greensboro, North Carolina, for hybrid and battery-electric vehicles mid-decade. Panasonic, which supplies Tesla and other automakers, has committed to creating a $4 billion battery plant in Kansas – the state’s largest-ever economic development project – and is in talks for another $4 billion factory in Oklahoma. Honda and LG Energy aim to begin construction early next year and the mass production of advanced lithium-ion battery cells by the end of 2025. The joint venture has committed to investing an initial $3.5 billion, with total investment projected to reach $4.4 billion. Honda plans to ramp up production to sell millions of EVs in North America, a far cry from the 100,000 EVs and hybrids it sold in the U.S. last year, mostly the Accord Hybrid and CR-V Hybrid. The company, which plans to launch its first battery-electric SUV, the Prologue, in 2024, is currently co-developing models using General Motors’ Ultium platform but plans to begin producing vehicles based on its new Honda e:Architecture in 2026. The $700 million Honda has earmarked for re-tooling its existing Ohio factory footprint will help transition its Anna Engine Plant to build vehicle battery cases, Marysville Auto Plant to marry the battery modules and East Liberty Auto Plant to install the battery unit.  

This company wants to improve your credit by gamifying financial literacy • ZebethMedia

Qualifying for a credit card is not easy when you have a poor credit score or none at all, but Los Angeles-based fintech company Arro wants to help consumers grow their credit line while also teaching them why that’s important. This type of thing is not new; just look at Kikoff, Upgrade, Self Financial, Altro, Petal, X1 or TomoCredit. However, from Arro’s perspective, traditional lenders appeal to their bottom line, which doesn’t involve helping its customers stop the cycle of overspending or going into debt, Ryan Duitch, co-founder and CEO at Arro, told ZebethMedia. Duitch started the company with Luke Pelullo in 2021 to provide a credit card and credit-building platform that has a proprietary underwriting model that instead of relying on the FICO system, relies on income; for example, earning at least $1,000 a month in income. And, it secured a partnership with Equifax, so applying for an Arro Card has no impact on someone’s credit score. With Arro, for $3 per month, customers get access to features including account monitoring and spend tracking tools. The company also makes a small percentage of revenue from interchange fees when a customer uses the credit card. That’s also combined with financial literacy training and behavioral incentives. As the customer progresses through the in-app activities, like learning how to use credit responsibly and creating and meeting budget and savings goals, there are additional rewards like increases in credit line. The idea, Duitch told ZebethMedia, is from day one being able to increase your credit line by $20 or $30. Then in six weeks by another $100 and other quick successions for the first five months. But don’t call Arro a credit company, Duitch said. Rather, he referred to the startup as the “Noom of credit meets personal finance.” While other financial apps do help with short-term symptoms of debt, they also charge high interest and fees, he added. “We’re here to shake behavior and show that the system is broken for so many consumers out there,” he added. “We’ve created a handful of modules that train you on all the basics of what you should know, and by layering it with actions and behaviors, like budgeting, you nudge people to do something to spend less and save.” To keep the cascade of content going, Arro is partnering with academic professors on both the curriculum and behavioral science. The aim is to be able to provide some expertise on how the company is introducing its brand new variable of financial literacy into the underwriting equation. Arro is still very much in the early stages — it’s preparing for a launch this month after beta testing with “a handful of different customer groups.” Duitch declined to say how many are on the waiting list, but did say that its launch partners will put the app in front of about 5 million to 6 million of its target users. It also closed on $10 million in seed funding in a round led by Crosslink Capital. It was joined by a group of investors, including Bling Capital, Bam Ventures and Global Founders Capital. The company also has $75 million in debt capital. Most of the equity funding will be used to get the product live, work on operations, build out the team, technology development and having the right amount of runway to support customers, Duitch said. “For our early customers, we were using some of our own money to help build out the model,” he added. “As we train the model with data, we’re using a handful of both our own money and then debt to lend off to our consumers. After funding both operations and technology we will then make investments across a handful of areas that help us get there.”

Google looks to boost its security cred in the cloud • ZebethMedia

Cloud data breaches in the enterprise have skyrocketed in the last year — a worrying trend that’s led to the emergence of a host of new tools and services to help better secure that environment; as well as a major mobilization among cloud service providers to launch more specific tech to address the gap. Today comes the latest development on that front: Google Cloud is announcing a wide slate of security products and services, covering areas like supply chains; digital sovereignty; secure collaboration environments in the cloud; and a new security operations product. Announced at the company’s Google Cloud Next event, above all Google’s aim is to win over business by putting cybersecurity front and center for end users that are prioitizing it, too, and using it to guide their procurement strategies. Below is a walk through the bigger announcements: Software Delivery Shield is a new product Google Cloud is launching specifically to address supply chain security — ensuring that you are not picking up or passing on malware or other potentially harmful data as work is processed through a series of partners that do not normally work within the same computing environment. This is an emerging area that I’d say has definitely been on the rise with the arrival of “digital transformation” and an increasing number of organizations doing business in the cloud. Google presents this as a fully managed solution aimed at developers, DevOps and security teams that works within GKE, Cloud Code, Cloud Build, Cloud Deploy, Artifact Registry and Binary Authorization. It’s an area that has been covered also by a number of startups, including Endor, Chainguard, Phylum, Valence and many others. One point these will continue to have over Google is the fact that they have the scope (and potentially trust) to do an adequate job in hybrid and multi-cloud environments from multiple vendors. While the supply-chain security product appears to have been built in house, Google Cloud is taking a different approach with another security launch, this one focused on digital sovereignty. Here it is working with more than 20 different software companies to build out a new “Sovereign Solutions” initiative: Aiven, Broadcom (Symantec), Cloud Software Group (Citrix), Climate Engine, Commvault, Confluent, Datadog, DataIKU, Dell Technologies, Elastic, Fortinet, Gitlab, Iron Mountain, LumApps, MongoDB, NetApp, OpenText, Palo Alto Networks, Pega Systems, Siemens, SUSE, Thales, Thought Machine, Veeam, and VMware are among them. It’s also adding integrations with companies like ForgeRock, JumpCloud, Okta, and Ping Identity to improve sign-on flows. The idea here is that a number of Google’s existing and potential customers are already using one or a combination of these companies, and so this is about integrating those solutions more deeply into Google’s cloud platform so that these companies can work more seamlessly (and of course adopt more Google Cloud products, now knowing that they can be used with their existing identity management and other protocols). The push to work with multiple providers is practical on another level: these are the apps that are used by companies to let them localize operations better for specific regions and use cases and users, so Google has to accommodate that to work with them on the bigger prize of winning more business overall. Confidential space, meanwhile, is a new product that Google is launching as part of its Confidential Computing initiative, a push to build and provide more secure environments for those collaborating in the cloud and exchanging data as part of that process, by letting them keep that data constantly encrypted and secure. This has been a very interesting area and aspect of the cybersecurity market in the last several years, raising lots of questions about how anonymized data can be in, for example, machine learning models that are trained specifically to figure out and shape identities out of sparse amounts of information. Approaches using cutting-edge algorithms and concepts like homomorphic encryption aim to bypass that issue by treating the data itself as salient, wrapped packages, and this is, not in so many words, what Google Cloud is also has been attempting to build here, starting with Confidential Virtual Machines (VMs) back in 2020, which kept data encrypted even while it was being processed. Today, this may be a priority only for a small segment of organizations that handle especially sensitive information; but judging by the evolution of data privacy and data protection, it is increasingly, and likely, going to become a more prominent aspect of the data protection regulatory environment, and therefore for a wider range of companies, too. The last of the big security announcements at Google Cloud Next focuses on SecOps, specifically the expansion of its Chronicle Security Operations software suite, a cloud-native platform for cyber teams to monitor, detect, investigate and respond to cyberthreats “with the speed, scale, and intelligence of Google.” It’s another well-worn cybersecurity area that a number of startups have identified and built solutions to address over the years, and indeed that is precisely what Google tapped to build this product: Mandiant, which it acquired earlier this year for a whopping $5.4 billion, forms a cornerstone of Chronicle; as does Siemplify, another acquisition from earlier this year. Chronicle existed prior to today’s news; now Google’s bringing these different products together under that brand to strengthen the product and positioning of it.

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