Will Brazil’s Roaring 20s see the rise of early-stage startups?

Since 2007, the number of publicly listed companies in Brazil has decreased from 400 to just a little over 300.

In the past six years there were only 21 IPOs — an average of just 3.5 public exits per year; by 2019, even Iran had more listed companies than Brazil. Global capital markets are heated given pandemic stimulus packages and low interest rates worldwide, but in Brazil the boom comes with a special feature: in Q3 2020, there were 25 primary and secondary equity offerings, and this year is on track to be the most active in history both in number of deals and dollar volume.

The most important event, however, is not necessarily the reversal of a shrinking public market but the fact that startups are issuing stocks for the first time, a dramatic change for a market previously dominated by industries like commodities and utilities.

Growth versus value: Revert the shrinking market and internet companies

Not only is Brazil’s IPO market roaring, the waitlist is even more impressive: More than 47 companies have filed at CVM (equivalent to the the Securities and Exchange Commission) to issue equity and are waiting for approval. In other words, the IPO is equivalent to more than 15% of the number of publicly listed companies. In the first half of October, six companies were approved to issue equity. Obviously construction and retail names are still predominant as they take advantage of the lower rates, but the main novelty are new entrants in internet and technology.

In the past decade, there were 56 IPOs in Brazil and only two were in the software space, both in 2013. That is a reflection of the profile of the investors who dominate local markets, which are used to allocating assets to companies in sectors like oil, paper and cellulose, mining or utilities. Historically, publicly listed companies in the country were value plays, as few of them had significant exposure to the domestic market and derived a significant share of revenue from commodities and exports.

As a result, companies that focused on the domestic market or on growth were never quite embraced by local investors. Many investors deploying capital in Brazil were mostly foreign and very risk-averse to the dynamics of the domestic market; in 2007, when Brazil went through a similar IPO boom, 70 percent of the demand for equity offerings came from foreign investors.

Along with an undervalued currency, growth companies struggled to find attractive valuations on the local exchange. As a result, growth companies such as Stone Payments, Netshoes, PagSeguro, Arco Educação and XP Investimentos did their IPOs in New York where they attained higher valuations. It’s ironic that there were three times more IPOs of Brazilian growth companies in the U.S. in the past five years than there were in the domestic market in the last decade.

Roaring 20s: New investors and massive portfolio relocations

#brazil, #column, #corporate-finance, #latin-america, #mining, #startups, #venture-capital, #venture-capital-funds

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A Brazilian Writer Saw a Tweet as Tame Satire. Then Came the Lawsuits.

The writer J.P. Cuenca calls it “Kafka in the tropics.” Evangelical pastors have filed at least 130 suits against him over a tweet, part of an increasingly common strategy against critics.

#bolsonaro-jair-1955, #brazil, #cuenca-j-p, #deutsche-welle, #freedom-of-speech-and-expression, #ministers-protestant, #suits-and-litigation-civil

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Google updates Maps with more COVID info and finally launches its Assistant driving mode

Google today announced an update to Google Maps that includes a number of new COVID-related features, as well as the ability to see the live status of your takeout or delivery orders, as well as the launch of the long-expected new Assistant driving mode.

In addition, the company shared a few new stats around Google Maps today. The company says that it makes 50 million updates to Maps each day now, for example, though that includes user-generated content like user reviews, photos and ratings. The company also now features “popular times” information for 20 million places around the globe.

Image Credits: Google Maps

As far as COVID is concerned, there are two announcements here. First, Google is updating the COVID layer in Google Maps on Android and iOS with some new information, including the number of all-time detected cases in an area and links to COVID resources from local governments. Second, Google Maps can now tell you, in real time, how busy a given transit line is so you can avoid packed trains or busses, for example. That’s based on real-time feedback from Google Maps users and will feel familiar if you are aware of how Google Maps can already show you how busy a given store or restaurant currently is.

Image Credits: Google Maps

Semi-related — delivery services are booming during the pandemic, after all (even as they continue to struggle to make a profit) — Google Maps on mobile will now be able to show you the live delivery status of your takeout and delivery orders in the U.S., Canada, Germany, Australia, Brazil and India. To do so, you have to book your order from Google Maps on Android or iOS.

For Google Maps users who don’t have an Android Auto-compatible car, the new Google Assistant driving mode in Maps has long been something to look forward to. The company first talked about this set of new features at its I/O developers conference in May 2019, but as is so often the case, features announced at I/O take a while to get to market. Originally, this was supposed to launch last summer.

Image Credits: Google Maps

The idea here is to allow drivers to get alerts about incoming calls, have the Assistant read out text messages and control your music right inside of Google Maps. Using the Assistant ideally reduces driver distractions. For now, this new mode is only coming to Android users in the U.S., though, and the number of features it supports remains limited. Google promises to support more features over time, but it’s not clear which features it plans to add to this mode.

#android, #apps, #assistant, #australia, #brazil, #canada, #computing, #covid-19, #driver, #germany, #google, #google-maps, #india, #operating-systems, #software, #tc, #united-states

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Ride Vision raises $7M for its AI-based motorcycle safety system

Ride Vision, an Israeli startup that is building an AI-driven safety system to prevent motorcycle collisions, today announced that it has raised a $7 million Series A round led by crowdsourcing platform OurCrowd. YL Ventures, which typically specializes in cybersecurity startups but also led the company’s $2.5 million seed round in 2018, Mobilion VC and motorcycle mirror manufacturer Metagal also participated in this round. The company has now raised a total of $10 million.

In addition to this new funding round, Ride Vision also today announced a new partnership with automotive parts manufacturer Continental .

“As motorcycle enthusiasts, we at Ride Vision are excited at the prospect of our international launch and our partnership with Continental,” Uri Lavi, CEO and co-founder of Ride Vision, said in today’s announcement. “This moment is a major milestone, as we stride toward our dream of empowering bikers to feel truly safe while they enjoy the ride.”

The general idea here is pretty straightforward and comparable with the blind-spot monitoring system in your car. Using computer vision, Ride Vision’s system, the Ride Vision 1, analyzes the traffic around a rider in real time. It provides forward collision alerts and monitors your blind spot, but it can also tell you when you’re following another rider or car too closely. It can also simply record your ride and, coming soon, it’ll be able to make emergency calls on your behalf when things go awry.

As the company argues, the number of motorcycles (and other motorized two-wheeled vehicles) has only increased during the pandemic, as people started avoiding public transport and looked for relatively affordable alternatives. In Europe, sales of two-wheeled vehicles increased by 30% during the pandemic.

The hardware on the motorcycle itself is pretty straightforward. It includes two wide-angle cameras (one each at the front and rear), as well as alert indicators on the mirrors, as well as the main computing unit. Ride Vision has patents on its human-machine warning interface and vision algorithms.

It’s worth noting that there are some blind-spot monitoring solutions for motorcycles on the market already, including those from Innovv and Senzar. Honda also has patents on similar technologies. These do not provide the kind of 360-degree view that Ride Vision is aiming for.

Ride Vision says its products will be available in Italy, Germany, Austria, Spain, France, Greece, Israel and the U.K. in early 2021, with the U.S., Brazil, Canada, Australia, Japan, India, China and others following later.

#artificial-intelligence, #australia, #austria, #brazil, #canada, #china, #continental, #europe, #france, #germany, #greece, #honda, #india, #israel, #italy, #japan, #motorcycle, #ourcrowd, #recent-funding, #ride-vision, #spain, #startups, #tc, #transportation, #united-kingdom, #united-states, #yl-ventures

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As Brazil’s Covid Crisis Eases, Bolsonaro Sees Rising Popularity

President Jair Bolsonaro’s cavalier handling of the coronavirus pandemic drew outrage. But as the curve in Brazil has flattened, his political standing has strengthened.

#bolsonaro-jair-1955, #brazil, #coronavirus-2019-ncov, #politics-and-government

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Brazil Halts Trial of Chinese Coronavirus Vaccine, CoronaVac

The government offered little explanation as to why it had stopped testing a promising coronavirus shot; an institute involved in the trial said a participant’s death was unrelated to the vaccine.

#bolsonaro-jair-1955, #brazil, #china, #clinical-trials, #coronavirus-2019-ncov, #politics-and-government, #sinovac-biotech-ltd, #vaccination-and-immunization

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Bolsonaro’s Eldest Son, a Senator, Faces Graft Charges in Brazil

Flávio Bolsonaro has been under investigation on suspicion of running a kickback scheme that has embroiled several members of the family, including the first lady.

#bolsonaro-flavio, #bolsonaro-jair-1955, #brazil, #corruption-institutional, #money-laundering

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We’ve Rarely Seen a Dinosaur Brain Like This Before

While later dinosaurs in this lineage were giant herbivores with tiny brains, this small species packed a lot more power in its skull.

#animal-behavior, #brain, #brazil, #dinosaurs, #evolution-biology, #fossils, #journal-of-anatomy, #paleontology, #research, #skull-body-part, #your-feed-animals, #your-feed-science

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Warren gets $1.4 million to help local cloud infrastructure providers compete against Amazon and other giants

Started as a side project by its founders, Warren is now helping regional cloud infrastructure service providers compete against Amazon, Microsoft, IBM, Google and other tech giants. Based in Tallinn, Estonia, Warren’s self-service distributed cloud platform is gaining traction in Southeast Asia, one of the world’s fastest-growing cloud service markets, and Europe. It recently closed a $1.4 million seed round led by Passion Capital, with plans to expand in South America, where it recently launched in Brazil.

Warren’s seed funding also included participation from Lemonade Stand and angel investors like former Nokia vice president Paul Melin and Marek Kiisa, co-founder of funds Superangel and NordicNinja.

The leading global cloud providers are aggressively expanding their international businesses by growing their marketing teams and data centers around the world (for example, over the past few months, Microsoft has launched a new data center region in Austria, expanded in Brazil and announced it will build a new region in Taiwan as it competes against Amazon Web Services).

But demand for customized service and control over data still prompt many companies, especially smaller ones, to pick local cloud infrastructure providers instead, Warren co-founder and chief executive officer Tarmo Tael told TechCrunch.

“Local providers pay more attention to personal sales and support, in local language, to all clients in general, and more importantly, take the time to focus on SME clients to provide flexibility and address their custom needs,” he said. “Whereas global providers give a personal touch maybe only to a few big clients in the enterprise sectors.” Many local providers also offer lower prices and give a large amount of bandwidth for free, attracting SMEs.

He added that “the data sovereignty aspect that plays an important role in choosing their cloud platform for many of the clients.”

In 2015, Tael and co-founder Henry Vaaderpass began working on the project that eventually became Warren while running a development agency for e-commerce sites. From the beginning, the two wanted to develop a product of their own and tested several ideas out, but weren’t really excited by any of them, he said. At the same time, the agency’s e-commerce clients were running into challenges as their businesses grew.

Tael and Vaaderpass’s clients tended to pick local cloud infrastructure providers because of lower costs and more personalized support. But setting up new e-commerce projects with scalable infrastructure was costly because many local cloud infrastructure providers use different platforms.

“So we started looking for tools to use for managing our e-commerce projects better and more efficiently,” Tael said. “As we didn’t find what we were looking for, we saw this as an opportunity to build our own.”

After creating their first prototype, Tael and Vaaderpass realized that it could be used by other development teams, and decided to seek angel funding from investors, like Kiisa, who have experience working with cloud data centers or infrastructure providers.

Southeast Asia, one of the world’s fastest-growing cloud markets, is an important part of Warren’s business. Warren will continue to expand in Southeast Asia, while focusing on other developing regions with large domestic markets, like South America (starting with Brazil). Tael said the startup is also in discussion with potential partners in other markets, including Russia, Turkey and China.

Warren’s current clients include Estonian cloud provider Pilw.io and Indonesian cloud provider IdCloudHost. Tael said working with Warren means its customers spend less time dealing with technical issues related to infrastructure software, so their teams, including developers, can instead focus on supporting clients and managing other services they sell.

The company’s goal is to give local cloud infrastructure providers the ability to meet increasing demand, and eventually expand internationally, with tools to handle more installations and end users. These include features like automated maintenance and DevOps processes that streamline feature testing and handling different platforms.

Ultimately, Warren wants to connect providers in a network that end users can access through a single API and user interface. It also envisions the network as a community where Warren’s clients can share resources and, eventually, have a marketplace for their apps and services.

In terms of competition, Tael said local cloud infrastructure providers often turn to OpenStack, Virtuozzo, Stratoscale or Mirantis. The advantage these companies currently have over Warren is a wider network, but Warren is busy building out its own. The company will be able to connect several locations to one provider by the first quarter of 2021. After that, Tael said, it will “gradually connect providers to each other, upgrading our user management and billing services to handle all that complexity.”

#asia, #brazil, #cloud-computing, #cloud-infrastructure, #distributed-cloud-platform, #enterprise, #estonia, #europe, #fundings-exits, #south-america, #southeast-asia, #startups, #tc, #warren

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Juganu begins selling its tunable lighting system for pathogen disinfection and deactivation in the US

Juganu, the venture-backed Israeli company that makes lighting systems capable of emitting light at specified wavelengths, is now selling a product that it claims can disinfect surfaces and deactivate pathogens in an attempt to provide buildings with new safety technologies that can prevent the spread of the coronavirus that causes COVID-19.

The company claims that its J.Protect product was clinically validated through a study conducted by Dr. Meital Gal-Tanamy at the Bar-Ilan University Faculty of Medicine (although Dr. Gal-Tanamy’s research typically focuses on the Hepatitis C virus, which has a different transmission vector than airborne viruses like Sars-Cov-2, the coronavirus that causes COVID-19).

Juganu said that the new product has been registered with the US Environmental Protection Agency in 46 states and is currently working with Comcast, Qualcomm, and NCR Corp. to bring its lighting disinfectant and deactivation technology to markets around the country.

The lighting technology uses two kinds of ultraviolet light — A and C — to render viruses inert and kill bacteria on surfaces, according to the company’s claims.

When people are present in a room, the company’s system uses UVA light which can render viruses inert after eight hours of exposure. If the room is empty, the lighting system will use UVC light, which is more potent as disinfectant and more harmful to people, to disinfect a room in under an hour.

The company tested its technology on surfaces, but did not conduct any tests involving their lighting system’s effects on aerosolized viral particles, which have been determined to be the main cause of infections from the novel coronavirus.

“We got an exemption from the FDA and are approved for distribution by the EPA in 48 states,” said Juganu chief executive, Eran Ben-Shmuel in an interview.

The company has already pre-sold the lighting technology in Israel and in India, according to Ben-Shmuel, and is now taking orders for installations in the US.

Juganu, which has raised $53 million to date from investors including Comcast Ventures, Viola Growth, Amdocs, and OurCrowd has offices in Israel, Brazil, Mexico, and the US, has already sold lighting systems to municipalities and businesses around the country.

The new hardware opens up a new line of business in the booming market for technologies targeting the reopening of businesses in the nations that have been hit the hardest by the COVID-19 pandemic.

“Smart lighting will be one of the biggest areas of opportunity for physical spaces. We are evolving from lights simply illuminating spaces to disinfecting and securing them, as well as promoting well-being by recreating natural light shifts based on sunrise and sunset,” said Ben-Shmuel, in a statement. 

 

#articles, #brazil, #comcast-ventures, #disinfectant, #fda, #health, #home-automation, #hygiene, #india, #israel, #lighting, #mexico, #ourcrowd, #protect, #qualcomm, #smart-lighting, #tc, #united-states

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Microsoft announces its first Azure data center region in Taiwan

After announcing its latest data center region in Austria earlier this month and an expansion of its footprint in Brazil, Microsoft today unveiled its plans to open a new region in Taiwan. This new region will augment its existing presence in East Asia, where the company already runs data centers in China (operated by 21Vianet), Hong Kong, Japan and Korea. This new region will bring Microsoft’s total presence around the world to 66 cloud regions.

Similar to its recent expansion in Brazil, Microsoft also pledged to provide digital skilling for over 200,000 people in Taiwan by 2024 and it is growing its Taiwan Azure Hardware Systems and Infrastructure engineering group, too. That’s in addition to investments in its IoT and AI research efforts in Taiwan and the startup accelerator it runs there.

“Our new investment in Taiwan reflects our faith in its strong heritage of hardware and software integration,” said Jean-Phillippe Courtois, Executive Vice President and President, Microsoft Global Sales, Marketing and Operations. “With Taiwan’s expertise in hardware manufacturing and the new datacenter region, we look forward to greater transformation, advancing what is possible with 5G, AI and IoT capabilities spanning the intelligent cloud and intelligent edge.”

Image Credits: Microsoft

The new region will offer access to the core Microsoft Azure services. Support for Microsoft 365, Dynamics 365 and Power Platform. That’s pretty much Microsoft’s playbook for launching all of its new regions these days. Like virtually all of Microsoft’s new data center region, this one will also offer multiple availability zones.

#artificial-intelligence, #austria, #brazil, #china, #cloud, #cloud-computing, #cloud-infrastructure, #cloud-storage, #computing, #internet-of-things, #iot, #japan, #microsoft, #microsoft-365, #microsoft-azure, #taiwan

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How Trump and Bolsonaro Broke Latin America’s Covid-19 Defenses

The two presidents drove out 10,000 Cuban doctors and nurses. They defunded the region’s leading health agency. They wrongly pushed hydroxychloroquine as a cure.

#amazon-river-basin, #bolsonaro-jair-1955, #brazil, #coronavirus-2019-ncov, #cuba, #ecuador, #epidemics, #florida, #foundation-for-human-rights-in-cuba, #guayaquil-ecuador, #humanitarian-aid, #hydroxychloroquine-drug, #mar-a-lago-palm-beach-fla, #medicine-and-health, #pan-american-health-organization, #trump-donald-j, #united-states, #united-states-international-relations, #united-states-politics-and-government

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Sashimi With Spaghetti? Yes, Please. And a Slice of Mango on Top.

Welcome to the wonderful, threatened world of Brazil’s “quilo” restaurants.

#brazil, #coronavirus-2019-ncov, #food, #restaurants

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Microsoft Azure announces its first region in Austria

Microsoft today announced its plans to launch a new data center region in Austria, its first in the country. With nearby Azure regions in Switzerland, Germany, France and a planned new region in northern Italy, this part of Europe now has its fair share of Azure coverage. Microsoft also noted that it plans to launch a new ‘Center of Digital Excellence’ to Austria to “to modernize Austria’s IT infrastructure, public governmental services and industry innovation.”

In total, Azure now features 65 cloud regions — though that number includes some that aren’t online yet. As its competitors like to point out, not all of them feature multiple availability zones yet, but the company plans to change that. Until then, the fact that there’s usually another nearby region can often make up for that.

Image Credits: Microsoft

Talking about availability zones, in addition to announcing this new data center region, Microsoft also today announced plans to expand its cloud in Brazil, with new availability zones to enable high-availability workloads launching in the existing Brazil South region in 2021. Currently, this region only supports Azure workloads but will add support for Microsoft 365, Dynamics 365 and Power Platform over the course of the next few months.

This announcement is part of a large commitment to building out its presence in Brazil. Microsoft is also partnering with the Ministry of Economy “to help job matching for up to 25 million workers and is offering free digital skilling with the capacity to train up to 5.5 million people” and to use its AI to protect the rainforest. That last part may sound a bit naive, but the specific plan here is to use AI to predict likely deforestation zones based on data from satellite images.

#artificial-intelligence, #austria, #brazil, #cloud, #cloud-computing, #cloud-infrastructure, #computing, #europe, #france, #germany, #italy, #microsoft, #microsoft-365, #microsoft-azure, #ministry-of-economy, #subscription-services, #switzerland

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Leading a $15 million round, Prosus Ventures makes the challenger bank Klar its first bet in Mexico

Klar, a new online bank based in Mexico City, has become the first big bet that Prosus Ventures (the firm formerly known as Naspers Ventures) is taking in Latin America outside of Brazil.

Founded by Stefan Moller, a former consultant at Bain & Co. who advised large banks, Klar blends Moller’s work experience in Mexico with his connections to the German banking world and the tech team at Berlin -based n26, to create a challenger bank offering deposit and credit services for Mexican customers.

The Mexican market is woefully underserved when it comes to the finance industry, according to Moller. Only 10% of Mexican adults have a credit card, something Moller said is the cheapest consumer lending instrument around.

That’s why Klar launched last year with both credit and debit services. The company has 200,000 banking customers and roughly 27,000 of those customers have taken out loans through the bank. A typical loan is roughly $110, according to Moller, and each loan comes with a 68% annual percentage rate. 

If that sounds usurious, that’s because it is — at least by U.S. standards. In the U.S. a typical credit card will run somewhere between 16% and 24%, according to data from WalletHub. In Mexico, Moller said the typical interest rate is 70% (no wonder only 10% of adults have credit cards).

Still, the opportunity to expand credit and debit services made sense to Prosus, which led the company’s Series A round alongside investors including the International Finance Corporation and former investors Quona capital, who led Klar´s SEED round, Mouro Capital (formerly Santander Innoventures) and aCrew.

Banafsheh Fathieh, the Prosus Ventures principal who led the investment for the firm, said that the commitment to Klar will likely be the first of many investments that her firm makes in the region — both in fintech and likely in Mexico’s tech ecosystem more broadly.

Prosus is famous for making early bets on emerging technology companies in developing markets. Perhaps most famously the firm’s parent company was an early investor in Tencent — a multi-million dollar bet that has generated billions in returns.

Before this investment, Prosus had confined its work in the Latin American region to investments in Brazilian technology companies like Creditas and Movile .

“Prosus Ventures partners with entrepreneurs that are solving big societal problems with technology, in a uniquely local way. We invest in sectors of the economy where technology can lead to meaningful change in the lives of consumers. Klar has identified a massive need in the Mexican financial market and brings a unique solution through their credit and debit offering,” said Banafsheh Fathieh from Prosus Ventures, in a statement. “In less than a year, the team has shown an ability to build a world-class digital bank for the masses, one focused on financial access and inclusion. We are very excited to partner with them on that mission.”

#bank, #banking, #berlin, #brazil, #credit-card, #creditas, #economy, #financial-technology, #latin-america, #mexico, #mexico-city, #mouro-capital, #movile, #n26, #naspers, #naspers-ventures, #online-bank, #prosus, #prosus-ventures, #tc, #technology, #tencent, #united-states

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Postcard-Perfect Scenes, Constructed From Memory and Scraps of Paper

The photographer Vik Muniz creates elaborate views of the world’s most famous tourist spots, building the details with thousands of pieces cut from postcards he collects.

#agra-india, #brazil, #muniz-vik, #new-york-city, #paris-france, #photography, #postcards, #travel-and-vacations

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Brazil’s Black Silicon Valley could be an epicenter of innovation in Latin America

Over the last five years, Brazil has witnessed a startup boom.

The main startups hubs in the country have traditionally been São Paulo and Belo Horizonte, but now a new wave of cities are building their own thriving local startup ecosystems, including Recife with Porto Digital hub and Florianópolis with Acate. More recently, a “Black Silicon Valley” is beginning to take shape in Salvador da Bahia.

While finance and media are typically concentrated in São Paulo and Rio de Janeiro, Salvador, a city of three million in the state of Bahia, is considered one of Brazil’s cultural capitals.

With an 84% Afro-Brazilian population, there are deep, rich and visible roots of Africa in the city’s history, music, cuisine and culture. The state of Bahia is almost the size of France and has 15 million people. Bahia’s creative legacy is quite clear, given that almost all the big Brazilian cultural patrimonies have their roots here, from samba and capoeira to various regional delicacies.

Many people are unaware that Brazil has the largest Black population in any country outside of Africa. Like counterparts in the U.S. and across the Americas, Afro-Brazilians have long struggled for socio-economic equity. As with counterparts in the United States, Brazil’s Black founders have less access to capital.

According to research by professor Marcelo Paixão for the Inter-American Development Bank, Afro-Brazilians are three times more likely to have their credit denied than their white counterparts. Afro-Brazilians also have over twice the poverty rates of white Brazilians and only a handful of Afro-Brazilians have held legislative positions, despite comprising more than 50% of the population. Not to mention, they make up less than 5% of the top level of the top 500 companies. Compared with countries like the United States or the United Kingdom, the racial funding gap is even more stark as more than 50% of  Brazil’s population is classified as Afro-Brazilian.

Bahia could be an epicenter of innovation in Latin America

Salvador (Bahia’s capital) is the natural birthplace of Brazil’s Black Silicon Valley, which largely centers around a local ecosystem hub, Vale do Dendê.

Vale do Dendê coordinates with local startups, investors and government agencies to support entrepreneurship and innovation and runs startup acceleration programs specifically focusing on supporting Afro-Brazilian founders. The Vale do Dendê Accelerator organization has already been in the spotlight at international and national publications because of its innovative work in bringing startup and tech education from mainstream to traditionally underserved communities.

In almost three years, the accelerator has supported 90 companies directly that cut across various industries, with high representation from the creative and social impact sectors. Almost all of the companies have achieved double-digit growth and various companies have gone on to raise further funding or corporate backing. One of the first portfolio companies, TrazFavela, a delivery app that focuses on linking customers and goods from traditionally marginalized communities, was supported by the accelerator in 2019. Despite the lockdown, the business grew 230% between the period of March and May after incubation and recently signed an agreement for further support and investment from Google Brasil.

There is a clear recognition of the business case for Afro-Brazilian businesses. Another company supported in the beginning with mentoring by Vale do Dendê is Diaspora Black (which focuses on Black culture in the tourism sectors). It attracted backing from Facebook Brasil and grew 770% in 2020.

The same is true for AfroSaúde, a health tech company focused on low-income communities with a new service to prevent COVID-19 in favelas (urban slums, which incidentally have high Black representation). The app now has more than 1,000 Black health professionals on its platform, creating jobs while addressing a health crisis that had been tremendously racialized.

We’re at the brink of a renaissance here in Bahia

Despite Brazil’s challenging economic situation, large national and global companies and investors are taking notice of this startup boom. Major IT company Qintess has come on board as a major sponsor to help Salvador become the leading Black tech hub in Latin America.

The company announced an investment of around 10 million reais (nearly $2 million USD) over the next five years in Black startups, including a collaboration with Vale do Dendê to train around 2,000 people in tech and accelerate more than 500 startups led by Black founders. Also, in September, Google launched a 5 million reais (around $1 million USD) Black Founders Fund with the support of Vale do Dendê to boost the Afro-Brazilian startup ecosystem.

There is no doubt that the new wave of innovation will come from the emerging markets, and the African Diaspora can play an important role. With the world’s largest African diaspora population in the hemisphere, Brazil can be a major leader on this. Vale do Dendê is keen to build partnerships to make Brazil and Latin America a more representative startup and creative economy ecosystem.

#brazil, #column, #diversity, #latin-america, #sao-paulo, #startups, #tc, #venture-capital

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An Evangelical Conquista in Amazonia

This isn’t the first time missionaries have risked spreading disease alongside the word of god.

#brazil, #coronavirus-2019-ncov, #evangelical-movement, #indigenous-people, #politics-and-government

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Which neobanks will rise or fall?

The neobank, or digital bank, phenomenon continues to take the world by storm, with global winners, from Brazil’s Nubank valued at $10 billion and Berlin’s N26 valued at $3.5 billion, to Chime, now valued at $14.5 billion as the most valuable consumer fintech in the United States.

Neobanks have led the charge of the $3.6 billion in venture capital funding for consumer fintech startups this year. And as the coronavirus-fueled acceleration of digital transformation continues, it seems the digital bank is here to stay, with some estimates pointing to neobanks reaching 60 million customers in North America and Europe by the end of 2020, and surpassing 145 million by 2024.

The space is also becoming more crowded, a trend which will only accelerate with fintech eating the world and creating greater infrastructure that enables any company to include a bank account as a product extension.

As a result, neobanks are not a monolithic model and not all are created equal. Looking underneath the hood of business models across the globe reveals remarkable operational differences and highlights specific features that are more likely to succeed in the long-term.

Five global models of neobanks

Today there are five distinct models that are leading globally:

Interchange-led: Relies on payments revenue, sourced through interchange as the revenue driver. Every time a customer uses the neobank’s card as a payment method they get paid [e.g. Chime / US; Neon (hybrid of 1 & 2) / Brazil].

Credit-led: Leverages a credit-first model, starting off with a credit card or similar offering, and later providing a bank account [e.g. Nubank, Neon (hybrid of 1 & 2) / Brazil].

#banking, #brazil, #challenger-banks, #column, #finance, #financial-services, #latin-america, #neobanks, #nubank, #payments, #startups, #tc, #venture-capital

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Captain Chain Saw’s Delusion

The Amazon was never a “land without men.”

#agriculture-and-farming, #amazon-jungle, #amazon-river-basin, #brazil, #economic-conditions-and-trends, #land-use-policies, #politics-and-government

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Amazon 4.0. How to Reinvent the Rainforest

It took tens of millions of years for tropical rainforests to evolve. It may take us just a few decades to destroy them, unless we change course.

#amazon-jungle, #brazil, #forests-and-forestry, #indigenous-people, #wildfires

0

No One Is Stopping the Child Sex Abusers

Three factors contribute to this crisis of child abuse: impunity, poverty and a deeply rooted culture of male domination.

#amazon-river-basin, #brazil, #child-abuse-and-neglect, #coronavirus-2019-ncov, #sex-crimes

0

Could the Amazon Save Your Life?

Scientists are looking at the medicinal potential of plants and animals in the region’s vast tropical forests.

#amazon-jungle, #brazil, #drugs-pharmaceuticals, #environment

0

Latin America’s digital transformation is making up for lost time

“Gradually, then suddenly.” Hemingway’s words succinctly capture the recent history of tech in Latin America. After more than a decade of gradual progress made through fits and starts, tech in Latin America finally hit its stride and has been growing at an accelerating pace in recent years.

The region now boasts 17 unicorns up from zero just three years ago. For the first time, the most valuable company in the region isn’t a state-controlled oil or mining behemoth, but rather e-commerce platform MercadoLibre.

We are only in the first chapter of this long story, however. When we compare the penetration of tech companies in Latin America to both developed and developing markets, we estimate that the market could grow nearly tenfold over the next decade. The value to be unlocked will be measured in trillions of dollars and the lives improved in the hundreds of millions.

Our venture capital fund, Atlantico, conducts a thorough annual analysis of market data from Latin America in what we call the Latin America Digital Transformation Report. The report consists of hundreds of data-rich slides based off of original studies, surveys and models constructed from a combination of public and proprietary data shared by many of the region’s leading tech companies. This year, for the first time, we have decided to make the report public and here we highlight some of the findings from this year.

Global venture capitalists, the likes of Sequoia, Benchmark and a16z have planted their flags through key investments in companies like Nubank, Wildlife and Loft. Those are not isolated incidents – venture capital investments in the region have nearly doubled annually for the last three years according to the Latin American Venture Capital Association (LAVCA). In order to understand what investors are seeing in the region, we analyzed the market through a simple framework we apply throughout our report.

The starting point for this framework is the socioeconomic foundation in place. The context in which transformation occurs is important in shaping its possible outcome. The same ingredients applied in different contexts and time periods will produce very different results. Thus, we believe that Latin America is unique globally, and the types of companies that will flourish (and to what extent) will be different than in other parts of the world. Trying to shoehorn foreign business models and products is unlikely to yield good results.

In the case of Latin America, it’s key to remember the region boasts a population twice that of the United States and a GDP half that of China’s (but similar on a per capita basis). In short: Latin America is big, a central factor that has the power to attract capital and talent. However, also critical to note is that economic inequality is severe. While a quarter of the region’s population lives in poverty, the wealthy in Mexico City and São Paulo enjoy living standards in line with their peers in New York and London.

This unique mix of large opportunity and critical problems waiting to be solved has provided fertile ground for the gig economy to flourish. Case-in-point: Brazil is Uber’s largest market globally in volume of rides, with São Paulo its largest city. Rappi, a major food delivery player in the region, valued at over $3 billion, grew its sales by 113% over the first five months of the pandemic. When taken together, the largest ride-hailing and food-delivery services in Brazil are already the largest private employer in Brazil, a formidable contribution to reducing high unemployment.

When we track technology company value as a percent of the economy (tech company market cap as a % of GDP) we clearly see that Latin America, at 2.2% penetration, has a ways to go. Our estimate is that it is 10 years behind China (at 27% penetration), which itself is five years behind current U.S. levels (39% penetration).

Image Credits: Atlantico

However, it is important to note that Latin America is making up for lost time. This metric for tech company penetration or share has been growing on average at 65% per year since 2003. In comparison, the growth in U.S. tech company penetration has grown at 11% annually in the same period, while China’s has expanded at 40%.

https://www.atlantico.vc/latin-america-digital-transformation-report

Image Credits: Atlantico

Drivers of digital transformation

Within the socioeconomic context of the region, we advance to looking at the three drivers of change in our framework: people, capital and regulation.

On the people front, the greater visibility of successful role models has catalyzed a desire to follow entrepreneurial footsteps. People like Mike Krieger (co-founder of Instagram), Marcos Galperin (founder/CEO of Mercado Libre) and Henrique Dubugras (founder/co-CEO of Brex) have shown that local talent can go on to build global companies.

In a survey we conducted with nearly 1,700 college students from the top universities in Brazil, 26% of students voiced a desire to work at startups or big tech companies. A whopping 39% expressed plans to start a company in the future, that number rising to 60% when we consider only computer science students. As more and more of the region’s top graduates flock to tech, it gives us confidence in the accelerating growth of the sector over many years to come.

On the capital front, the growth of venture funding in the region has been frequently written about. Last year, it hit a peak of $4.6 billion after doubling from the year before. However, what perhaps is more surprising is that despite this rapid growth, we are still far from the ceiling. When we view venture capital investments as a proportion of GDP, we see Latin America as only one-seventh of the U.S. level and a quarter of the level in India.

#banking, #brazil, #brex, #column, #coronavirus, #covid-19, #ecommerce, #finance, #latin-america, #mexico, #nubank, #tc, #venture-capital

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The Carnival Parade Is Canceled, and Rio Is Reeling

Wars, disease and political turmoil have never prevented Rio de Janeiro from putting on its famous carnival. Now, the pandemic has forced a suspension of the annual parade, at great cost to the city and its residents.

#bolsonaro-jair-1955, #brazil, #carnival-pre-lenten, #coronavirus-2019-ncov, #crivella-marcelo, #disease-rates, #parades, #politics-and-government, #quarantines, #rio-de-janeiro-brazil, #shutdowns-institutional

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Brands building for scale should look to hypercultural Latinx consumers

As two female investors who themselves identify as hypercultural (HC) Latinx, we see much potential for brands and startups that invest in this demographic.

For the purpose of this article, we will focus on 13-to-25-year-old individuals who can trace their heritage to a Latin American country who have spent the majority of their lifetime in the U.S. Whether they were born in the U.S. doesn’t matter as much as how much time they have spent immersed in mainstream American culture. This is important to note because this demographic is largely defined by always having one foot in their parents’ native country and another in the United States.

In simplest terms: A Latinx person has origins from a country in Latin America, like Mexico or Brazil, while a Hispanic person has origins from a country where Spanish is the dominant language, such as Mexico or Spain. A Pew Research study found that one in four people who describe themselves as Hispanic or Latino have heard of the non-gendered “Latinx,” but only 3% of them use the term in everyday life.

So what makes the hypercultural Latinx so unique and worthy of pursuit? It’s not a secret that they have massive purchasing power behind them (a collective $1.9 trillion to be exact). However, they are also different from their mostly white counterparts in the way they vigorously engage with technology, their obsession with being online at all times and their unique shopping habits.

Hypercultural Latinx consumers are accustomed to being early adopters of new technology: 81% of them say they like to learn about the latest technology (overindexing their white counterparts by 36%). Latino households are filled with the latest gadgets and smart tech toys. Although we assume most Gen Zers and young millennials love technology, HC Latinx love tech at astronomical rates and shell out more dollars than their white, mostly monocultural counterparts.

This makes sense given that 60% of HC Latinx grew up in the internet age versus only 40% of their white counterparts. Across levels of HC Latinx income (or their parents’), there is always a budget for technology. In my own Mexican household (Ilse), I grew up prioritizing tech over other (sometimes more important) categories like books or vacations.

The online lives of the HC Latinx can be summed up by one statistic: 24% spend three hours or more on social media per day. compared to only 13% of their white counterparts. So much time is spent online by this Latinx youth that they are able to create a digital comunidad where they thrive socially and intellectually. This comunidad has so much influence in how the HC Latinx thinks about what they purchase and how loyal they are to the brands they buy from.

#brazil, #column, #diversity, #latin-america, #latinx, #mexico, #social, #spain, #startups, #tc, #venture-capital, #whatsapp

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It’s Not Just California. These Places Are Also on Fire.

Extreme temperatures and more severe droughts, the result of human-caused climate change, have created a world that’s ready to burn.

#agriculture-and-farming, #amazon-jungle, #arctic-regions, #argentina, #brazil, #environment, #global-warming, #indonesia, #russia, #siberia, #wildfires

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Brazil’s banks try to outflank challengers by investing in a $15 million round for Quanto

Trying to outflank competition from neo banks and other potential challengers, two of Brazil’s largest financial services institutions, Bradesco and Itaú Unibanco, have invested in Quanto, a company developing technology to let retailers and other businesses access financial information and services.

Joining Brazil’s two largest banks are Kaszek Ventures, one of Latin America’s largest venture capital firms, and Coatue, the multi-billion dollar hedge fund. 

Bradesco joined the round through its InovaBra Ventures investment fund while Itaú invested directly and had its participation approved by Brazil’s Central Bank, according to a statement.

“Open banking changes the way we understand and consume financial services, but it’s quite exciting to see the Brazilian market embracing this new moment in such a positive way,” said Richard Taveira, Quanto’s chief executive, in a statement. “Brazil has the potential to lead the use of open banking worldwide, and this round is a testament to that.”

Brazil’s Central Bank is deeply invested in the prospect of opening up banking regulation to allow information and data sharing between payment processors and technology providers, retailers, and other service providers in the financial services value chain.

Quanto, which provides standardized bank data application programming interfaces that allow institutions to slash the time it takes to ccess bank account data.

“Open banking is an important evolution in the financial services market and we believe that Quanto can contribute in an impactful way in creating a more competitive market, focused on the customer experience,” said Rafael Padilha, Director at Bradesco Private Equity and Inovabra Ventures, in a statement.

The Quanto technology could enable financial product distribution through the same API platform as business to business services, the company said. Quanto claims that its services will make it easier for customers to access low-interest credit lines with a single sign-on model and to receive competitive interest rates by sharing banking data with multiple lenders in a single flow.

“Quanto provides the rail for banks and fintechs to compete, and consumers are the ones who win”, said Taveira.

#api, #bank, #banking, #brazil, #coatue, #companies, #director, #financial-services, #itau, #kaszek-ventures, #latin-america, #open-banking, #tc, #venture-capital-firms

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Protecting Brazil’s Uncontacted Tribes for 30 Years, Then Killed by an Arrow

Rieli Franciscato, an expert on the Amazon’s isolated tribes, had been frantically trying to keep safe a group that had ventured out of the forest. He was mistakenly perceived as a threat.

#amazon-jungle, #bolsonaro-jair-1955, #brazil, #coronavirus-2019-ncov, #indigenous-people

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I Watched Months of Bolsonaro’s Broadcasts. It Was Wild.

After watching the president for so many days, I finally understood that happiness is a matter of choice.

#bolsonaro-jair-1955, #brazil, #coronavirus-2019-ncov, #deaths-fatalities, #instagram-inc, #rio-de-janeiro-brazil, #youtube-com

0

How Many Lives Would a More Normal President Have Saved?

Trump failed to meet the Covid-19 challenge. But it’s harder to judge whether the overall response was catastrophic or merely mediocre.

#brazil, #coronavirus-2019-ncov, #deaths-fatalities, #germany, #trump-donald-j, #united-states, #united-states-politics-and-government, #western-europe

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Brazil Pantanal Scorched by Fires

The blazes in Brazil, often intentionally set, have scorched a record-setting 10 percent of the Pantanal, one of the most biologically diverse habitats on the planet.

#agriculture-and-farming, #amazon-river-basin, #bolsonaro-jair-1955, #brazil, #drought, #national-aeronautics-and-space-administration, #pantanal-brazil, #politics-and-government, #wetlands, #wildfires

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Brazil’s Jair Bolsonaro Threatened by Graft Investigation

Brazilians are asking a question that could threaten President Jair Bolsonaro’s political future: Why did his wife and son receive payments from a man under investigation for corruption?

#bolsonaro-flavio, #bolsonaro-jair-1955, #brazil, #corruption-institutional

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5 Art Accounts to Follow on Instagram Now

Design during the pandemic; a bookshop in Berlin; a museum in São Paulo; a cartoonist addressing racism; and photographs documenting Native Americans.

#art, #berlin-germany, #brazil, #hopscotch-reading-room-berlin-germany-retailer, #instagram-inc, #montague-liz-1995, #rawsthorn-alice, #sao-paulo-museum-of-art, #social-media, #wilber-matika

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Struggling Under Lockdown, Schools Worldwide Relearn the Value of TV

Poor regions where internet access is scarce are turning to an older technology to reach students. That strategy could also help in wealthy countries that have focused on online classes.

#brazil, #computers-and-the-internet, #coronavirus-2019-ncov, #e-learning, #education-k-12, #indonesia, #new-jersey, #njtv, #peru, #tanzania, #teachers-and-school-employees, #television, #third-world-and-developing-countries

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Coronavirus Crisis Has Made Brazil an Ideal Vaccine Laboratory

Widespread contagion, a deep bench of scientists and a robust vaccine-making infrastructure have made Brazil an important player in the quest to find a vaccine.

#astrazeneca-plc, #brazil, #coronavirus-2019-ncov, #oxford-university, #pfizer-inc, #vaccination-and-immunization

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Aritana Yawalapiti, Revered Indigenous Leader in Brazil, Dies at 71

Known for his quiet dignity, he dedicated himself to protecting the environment and promoting the health of his people. He died of the coronavirus.

#amazon-jungle, #brazil, #coronavirus-2019-ncov, #deaths-obituaries, #indigenous-people, #yawalapiti-aritana-1949-2020

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He Doesn’t Mind Being Shared, Unless His Mates Try to Eat Each Other’s Eggs

A Brazilian frog species engages in reproductive behavior never seen in amphibians before.

#amphibians, #animal-behavior, #brazil, #frogs, #reproduction-biological, #research, #science-advances-journal, #your-feed-animals, #your-feed-science

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Russia Approves Coronavirus Vaccine Before Completing Tests

The country became the first in the world to approve a possible vaccine against the virus, despite warnings from the global authorities against cutting corners.

#brazil, #clinical-trials, #coronavirus-2019-ncov, #dmitriev-kirill-a-1975, #ebola-virus, #putin-vladimir-v, #russia, #south-africa, #vaccination-and-immunization, #world-health-organization

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How Moovit went from opportunity to a $900M exit in 8 years

In May 2020, Intel announced its purchase of Moovit, a mobility as a service (MaaS) solutions company known for an app that stitched together GPS, traffic, weather, crime and other factors to help mass transit riders reduce their travel times, along with time and worry.

According to a release, Intel believes combining Moovit’s data repository with the autonomous vehicle solution stack for its Mobileye subsidiary will strengthen advanced driver-assistance systems (ADAS) and help create a combined $230 billion total addressable market for data, MaaS and ADAS .

Before he was a member of Niantic’s executive team, private investor Omar Téllez was president of Moovit for the six years leading up to its acquisition. In this guest post for Extra Crunch, he offers a look inside Moovit’s early growth strategy, its efforts to achieve product-market fit and explains how rapid growth in Latin America sparked the company’s rapid ascent.


In late 2011, Uri Levine, a good friend from Silicon Valley and founder of Waze, asked me to visit Israel to meet Nir Erez and Roy Bick, two entrepreneurs who had launched an application they had called “the Waze of public transportation.”

By then, Waze was already in conversations to be sold (Google would finally buy it for $1.1 billion) and Uri was thinking about his next step. He was on the board of directors of Moovit (then called Tranzmate) and thought they could use a lot of help to grow and expand internationally, following Waze’s path.

At the time, I was part of Synchronoss Technologies’ management team. After Goldman Sachs and Deutsche Bank took us public in 2006, AT&T and Apple presented us with an idea that would change the world. It was so innovative and secret that we had to sign NDAs and personal noncompete agreements to work with them. Apple was preparing to launch the first iPhone and needed a system where users could activate devices from the comfort of their homes. As such, Synchronoss’ stock became very attractive to the capital markets and ours became the best public offering of 2006.

After six years with Synchronoss while also making some forays into the field of entrepreneurship, I was ready for another challenge. With that spirit in mind, I got on the plane for Israel.

I will always remember the landing at Ben Gurion airport. After 12 hours traveling from JFK, I was called to the front of the immigration line:

“Hey! The guy in the Moovit T-shirt, please come forward!”

For a second, I thought I was in trouble, but then the immigration officer said, Welcome to Israel! We are proud of our startups and we want the world to know that we are a high-tech powerhouse,” before he returned my passport and said goodbye.

I was completely amazed by his attitude and wondered if I really knew what I was getting into.

The opportunity in front of Moovit

At first glance, the numbers seemed very attractive. In 2012, there were roughly seven billion people in the world and only a billion vehicles. Thus, many more people used mass public transport than private and users had to face not only the uncertainty of when a transport would arrive, but also what might happen to them while waiting (e.g., personal safety issues, weather, etc.). Adding more uncertainty: Many people did not know the fastest way to get from point A to point B. As designed, mass public transport was a real nightmare for users.

Uri advised us to “fall in love with the problem and not with the solution,” which is what we tried to do at Moovit. Although Waze had spawned a new transportation paradigm and helped reduce traffic in big cities, mass transit was a much bigger monster that consumed an average of two hours of each day for some people, which adds up to 37 days of each year*!

What would you do if someone told you that in addition to your vacation days, an app could help you find 18 extra days off work next year by cutting your transportation time in half?

* Assumes 261 working days a year, 14 productive hours per day.

#adas, #apps, #automotive, #brazil, #chile, #colombia, #column, #entrepreneurship, #extra-crunch, #google, #growth-and-monetization, #israel, #latin-america, #ma, #maas, #mobility, #moovit, #sao-paulo, #sequoia-capital, #startups, #synchronoss-technologies, #tc, #transportation, #uri-levine, #waze

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Google, Nokia, Qualcomm are investors in $230M Series A2 for Finnish phone maker, HMD Global

Mobile device maker HMD Global has announced a $230M Series A2 — its first tranche of external funding since a $100M round back in 2018 when it tipped over into a unicorn valuation. Since late 2016 the startup has exclusively licensed Nokia’s brand for mobile devices, going on to ship some 240M devices to date.

Its latest cash injection is notable both for its size (HMD claims it as the third largest funding round in Europe this year); and the profile of the strategic investors ploughing in capital — namely: Google, Nokia and Qualcomm.

Though whether a tech giant (Google) whose OS dominates the world’s smartphone market (Android) becoming a strategic investor in Europe’s last significant mobile OEM (HMD) catches the attention of regional competition enforcers remains to be seen. Er, vertical integration anyone? (To wit: It’s a little over two years since Google was slapped with a $5BN penalty by EU regulators for antitrust violations related to how it operates Android — and the Commission has said it continues to monitor the market ‘remedies’.)

In a further quirk, when we spoke to HMD Global CEO, Florian Seiche, ahead of today’s announcement, he didn’t expect the names of the investors to be disclosed — but we’d already been sent press release material listing them so he duly confirmed the trio are investors in the round. (But wouldn’t be drawn on how much equity Google is grabbing.)

HMD’s smartphones run on Google’s Android platform, which gives the tech giant a firm business reason for supporting the mobile maker in growing the availability of Google-packed hardware in key growth markets around the world.

And while HMD likens its consistent (and consistently updated) flavor of Android to the premium ‘pure’ Android experience you get from Google’s own-brand Pixel smartphones, the difference is the Finnish company offers devices across the range of price points, and targets hardware at mobile users in developing markets.

The upshot is relatively little overlap with Google’s Pixel hardware, and still plenty of business upside for Google should HMD grow the pipeline of Google services users (as it makes money by targeting ads).

Connoisseurs of mobile history may see more than a little irony in Google investing into Nokia branded smartphones (via HMD), given Android’s role in fatally disrupting Nokia’s lucrative smartphone business — knocking the Finnish giant off its perch as the world’s number one mobile maker and ushering in an era of Android-fuelled Asian mobile giants. But wait long enough in tech and what goes around oftentimes comes back around.

“We’re extremely excited,” said Seiche, when we mention Google’s pivotal role in Nokia’s historical downfall in smartphones. “How we are going to write that next chapter on smartphones is a critical strategic pillar for the company and our opportunity to team up so closely with Google around this has been a very, very great partnership from the beginning. And then this investment definitely confirms that — also for the future.”

“It’s a critical time for the industry therefore having a clear strategy — having a clear differentiation and a different point of view to offer, we believe, is a fantastic asset that we have developed for ourselves. And now is a great moment for us to double down on this,” he added.

We also asked Seiche whether HMD has any interest in taking advantage of the European Commission’s Android antitrust enforcement decision — i.e. to fork Android and remove the usual Google services, perhaps swapping them out for some European alternatives, which is at least a possibility for OEMs selling in the region — but Seiche told us: “We have looked at it but we strongly believe that consumers or enterprise customers actually love [Google] services and therefore they choose those services for themselves.” (Millions of dollars of direct investment from Google also, presumably, helps make the Google services business case stack up.)

Nokia, meanwhile, has always had a close relationship with HMD — which was established by former Nokia execs for the sole purpose of licensing its iconic mobile brand. (The backstory there is a clause in the sale terms of Nokia’s mobile device division to Microsoft expired in 2016, paving the way for Nokia’s brand to be returned to the smartphone market without the prior Windows Mobile baggage.)

Its investment into HMD now looks like a vote of confidence in how the company has been executing in the fiercely competitive mobile space to date (HMD doesn’t break out a lot of detail about device sales but Seiche told us it sold in excess of 70M mobiles last year; that’s a combined figure for smartphones and feature phones) — as well as an upbeat assessment of the scope of the growth opportunity ahead of it.

On the latter front US-led geopolitical tensions between the West and China do look poised to generate a tail-wind for HMD’s business.

Mobile chipmaker Qualcomm, for example, is facing a loss of business, as US government restrictions threaten its ability to continue selling chips to Huawei; a major Chinese device maker that’s become a key target for US president Trump. Its interest in supporting HMD’s growth, therefore, looks like a way for Qualcomm to hedge against US government disruption aimed at Chinese firms in its mobile device maker portfolio.

While with Trump’s recent threats against the TikTok app it seems safe to assume that no tech company with a Chinese owner is safe.

As a European company, HMD is able to position itself as a safe haven — and Seiche’s sales pitch talks up a focus on security detail and overall quality of experience as key differentiating factors vs the Android hoards.

“We have been very clear and very consistent right from the beginning to pick these core principles that are close to our heart and very closely linked with the Nokia brand itself — and definitely security, quality and trust are key elements,” he told TechCrunch. “This is resonating with our carrier and retail customers around the world and it is definitely also a core fundamental differentiator that those partners that are taking a longer term view clearly see that same opportunity that we see for us going forward.”

HMD does use manufacturing facilities in China, as well as in a number of other locations around the world — including Brazil, India, Indonesia and Vietnam.

But asked whether it sees any supply chain risks related to continued use of Chinese manufacturers to build ‘secure’ mobile hardware, Seiche responded by claiming: “The most important [factor] is we do control the software experience fully.” He pointed specifically to HMD’s acquisition of Valona Labs earlier this year. The Finnish security startup carries out all its software audits. “They basically control our software to make sure we can live up to that trusted standard,” Seiche added. 

Landing a major tranche of new funding now — and with geopolitical tension between the West and the Far East shining a spotlight on its value as alternative, European mobile maker — HMD is eyeing expansion in growth markets such as Africa, Brail and India. (Currently, HMD said it’s active in 91 markets across eight regions, with its devices ranged in 250,000 retail outlets around the world.)

It’s also looking to bring 5G to devices at a greater range of price-points, beyond the current flagship Nokia 8.3. Seiche also said it wants to do more on the mobile services side. HMD’s first 5G device, the flagship Nokia 8.3, is due to land in the US and Europe in a matter of weeks. And Seiche suggested a timeframe of the middle of next year for launching a 5G device at a mid tier price point.

“The 5G journey again has started, in terms of market adoption, in China. But now Europe, US are the key next opportunity — not just in the premium tier but also in the mid segment. And to get to that as fast as possible is one of our goals,” he said, noting joint-working with Qualcomm on that.

“We also see great opportunity with Nokia in that 5G transition — because they are also working on a lot of private LTE deployments which is also an interesting area since… we are also very strongly present in that large enterprise segment,” he added.

On mobile services, Seiche highlighted the launch of HMD Connect: A data SIM aimed at travellers — suggesting it could expand into additional connectivity offers in future, forging more partnerships with carriers. 

“We have already launched several services that are close to the hardware business — like insurance for your smartphones — but we are also now looking at connectivity as a great area for us,” he said. “The first pilot of that has been our global roaming but we believe there is a play in the future for consumers or enterprise customers to get their connectivity directly with their device. And we’re partnering also with operators to make that happen.”

“You can see us more as a complement [to carriers],” he added, arguing that business “dynamics” for carriers have also changed substantially — and customer acquisition hasn’t been a linear game for some time.

“In a similar way when we talk about Google Pixel vs us — we have a different footprint. And again if you look at carriers where they get their subscribers from today is already today a mix between their own direct channels and their partner channels. And actually why wouldn’t a smartphone player be a natural good partner of choice also for them? So I think you’ll see that as a trend, potentially, evolving in the next couple of years.”

#africa, #android, #antitrust, #brazil, #china, #europe, #european-commission, #european-union, #fundings-exits, #google, #hmd-global, #huawei, #india, #indonesia, #microsoft, #mobile, #mobile-device, #mobile-devices, #nokia, #qualcomm, #smartphone, #smartphones, #trump, #united-states, #us-government, #vietnam, #windows-mobile

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Our President Got the Virus. I Barely Noticed.

I was too busy cooking and cleaning and caring for my daughter.

#bolsonaro-jair-1955, #brazil, #child-care, #coronavirus-2019-ncov, #parenting

0

A Brazilian Soccer Mine Strikes Gold at Last

Renan Lodi’s arrival at Atlético Madrid has fulfilled his soccer dreams, but it also produced a payday years in the making for the scouting business that discovered him at age 13.

#atletico-madrid-soccer-team, #brazil, #flamengo-soccer-team, #soccer, #uefa-champions-league-soccer

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How to Move Your Elephant During a Pandemic

After decades in captivity and a 1,700-mile road trip from Argentina into Brazil, an Asian elephant named Mara finally gained a chance to roam.

#animal-abuse-rights-and-welfare, #animal-behavior, #animals, #argentina, #brazil, #buenos-aires-argentina, #coronavirus-2019-ncov, #elephants, #photography, #wildlife-trade-and-poaching, #your-feed-animals, #your-feed-photojournalism, #your-feed-science, #zoos

0

‘The Biggest Monster’ Is Spreading. And It’s Not the Coronavirus.

Tuberculosis kills 1.5 million people each year. Lockdowns and supply-chain disruptions threaten progress against the disease as well as H.I.V. and malaria.

#acquired-immune-deficiency-syndrome, #africa, #brazil, #cepheid, #chloroquine-drug, #coronavirus-2019-ncov, #coronavirus-risks-and-safety-concerns, #deaths-fatalities, #disease-rates, #drug-resistance-microbial, #eastern-europe, #global-fund-to-fight-aids-tuberculosis-and-malaria, #harare-zimbabwe, #india, #kwazulu-natal-province-south-africa, #malaria, #manaus-brazil, #medicine-and-health, #mexico, #nairobi-kenya, #shutdowns-institutional, #south-africa, #tests-medical, #tuberculosis, #unaids, #world-health-organization

0

Facebook fights order to globally block accounts linked to Brazilian election meddling

Facebook has branded a legal order to globally block a number of Brazilian accounts linked to the spread of political disinformation targeting the country’s 2018 election as “extreme”, claiming it poses a threat to freedom of expression outside the country.

The tech giant is simultaneously complying with the block order — beginning Saturday after it was fined by a Supreme Court judge for non-compliance — citing the risk of criminal liability for a local employee were it not to do so.

However it is appealing to the Supreme Court to try to overturn the order.

A spokesperson for the tech giant sent us this statement on the matter:

Facebook complied with the order of blocking these accounts in Brazil by restricting the ability for the target Pages and Profiles to be seen from IP locations in Brazil. People from IP locations in Brazil were not capable of seeing these Pages and Profiles even if the targets had changed their IP location. This new legal order is extreme, posing a threat to freedom of expression outside of Brazil’s jurisdiction and conflicting with laws and jurisdictions worldwide. Given the threat of criminal liability to a local employee, at this point we see no other alternative than complying with the decision by blocking the accounts globally, while we appeal to the Supreme Court.

On Friday a judge ordered Facebook to pay a 1.92 million reais (~$367k) fine for non compliance, per Reuters, which says the company had been facing further daily fines of 100,000 reais (~$19k) had it not applied a global block.

Before the fine was announced Facebook had said it would appeal the global block order, adding that while it respects the laws of countries where it operates “Brazilian law recognizes the limits of its jurisdiction”.

Reuters reports that the accounts in question were controlled by supporters of the Brazilian president, Jair Bolsonaro, and had been implicated in the spread of political disinformation during the country’s 2018 election with the aim of boosting support for the right wing populist.

Last month the news agency reported Facebook had suspended a network of social media accounts used to spread divisive political messages online which the company had linked to employees of Bolsonaro and two of his sons.

In a blog post at the time, Facebook’s head of security policy, Nathaniel Gleicher, wrote: “Although the people behind this activity attempted to conceal their identities and coordination, our investigation found links to individuals associated with the Social Liberal Party and some of the employees of the offices of Anderson Moraes, Alana Passos, Eduardo Bolsonaro, Flavio Bolsonaro and Jair Bolsonaro.”

In all Facebook said it removed 33 Facebook accounts, 14 Pages, 1 Group and 37 Instagram accounts that it identified as involved in the “coordinated inauthentic behavior”.

It also disclosed that around 883,000 accounts followed one or more of the offending Pages; while the Group had around 350 accounts signed up; and 918,000 people followed one or more of the Instagram accounts.

The political disops effort had spent around $1,500 on Facebook ads, paid for in Brazilian reais, per its account of the investigation.

Facebook said it had identified a network of “clusters” of “connected activity”, with those involved using duplicate and fake accounts to “evade enforcement, create fictitious personas posing as reporters, post content, and manage Pages masquerading as news outlets”.

An example of removed content that was being spread by the disops network identified by Facebook (Image credit: Facebook)

The network posted about “local news and events including domestic politics and elections, political memes, criticism of the political opposition, media organizations and journalists”; and, more recently, about the coronavirus pandemic, it added.

In May a judge in Brazil had ordered Facebook to a block a number of accounts belonging to Bolsonaro supporters who had been implicated in the election meddling. But Facebook only applied the block in Brazil — hence the court order for a global block.

While the tech giant was willing to remove access to the inauthentic content locally, after it had identified a laundry list of policy contraventions, it’s taking a ‘speech’ stance over purging the fake content and associated accounts internationally — arguing such an order risks overreach that could damage freedom of expression online.

The unstated implication is authoritarian states or less progressive regimes could seek to use similar orders to force platforms to apply national laws which prohibit content that’s legal and freely available elsewhere to force it to be taken down in another jurisdiction.

That said, it’s not entirely clear in this specific case why Facebook would not simply bring down its own banhammer on accounts that it has found to have so flagrantly violated its own policies on coordinated authentic behavior. But the company has at times treated political ‘speech’ as somehow exempt from its usual content standards — leading to operating policies that tie themselves in contradictory nots.

Its blog post further notes that some of the content posted by the Brazilian election interference operation had previously been taken down for violating its Community Standards, including hate speech.

The case doesn’t just affect Facebook. In May, Twitter was also ordered to block a number of accounts linked to the probe into political disops. It’s not clear what action Twitter is taking.

We’ve reached out to the company for comment.

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