A few months ago, Crunchbase News reported that a longstanding period of SaaS investment stagnation had come to an end.
However, the investment boom times didn’t necessarily carry over to the seed and early-stage end of the subscription software businesses.
The chart below displays deal and dollar volume of seed and early-stage venture investments1 made into companies from around the world in Crunchbase’s SaaS category. Note that it is subject to historically documented reporting delays, which are most pronounced in seed and early-stage deals.
As can be plainly seen that Q3 2018 took quite a turn in terms of investment into SaaS. And it’s a bit bewildering as to why.
Overall, the venture market in Q3 hit record heights, and nearly every stage of investment saw more dollars and more rounds. Yet, as shown above, SaaS startups don’t appear to be beneficiaries of this influx of cash.
The public comparison
The picture becomes even more distorted when we account for public market SaaS comps, which set the benchmark for private companies. And that benchmark hasn’t been suffering. Public cloud companies have enjoyed a steep run up in asset value over the past several years.
The newly revamped BVP Nasdaq Emerging Cloud Index (formerly known as the Bessemer Cloud Index) tracks a basket of publicly traded SaaS stocks, including the likes of Salesforce, Adobe and more recent debuts like Dropbox, DocuSign and Okta, among others.
Public cloud stocks soar
Public companies in the Bessemer Cloud Index grew their public valuations much faster than more broad-based indices like the Dow Jones Industrial Average and the S&P 500. Carried by the high and still-growing value of recurring revenue, warm reception of SaaS companies new to public markets and (with the exception of the past couple of weeks) generally stable markets overall, public SaaS companies have done well. Despite a pretty absurd rate of growth on the public side, no such consistent growth could be found on the early-stage, private end of the market.
However, rather than viewing Q3 2018 as a disappointment for the early-stage SaaS investment market, it’s more like a reversion to the mean. It’s the first half of the year that’s the outlier, not Q3.
Big deals, slowing pace
The first half of 2018 had some truly huge early-stage deals cross the wires. In March, Robotic process automation software company UiPath raised $153 million in its Series B. (UiPath just raised another $225 million in a Series C round in September.) Collaborative email inbox Front App raised $66 million in its January Series B. Rival Chicago logistics software companies FourKites and project44 each raised $35 million Series B rounds earlier in the year. On a one-off basis, these are big rounds, but collectively they add up to a huge pile of money.
The conclusion we’re drawn to here is that we were perhaps premature in declaring the long-time downtrend snapped to the upside.
This is the real voice behind Google Assistant
When using Google Assistant, most of us don’t even consider who the voice is coming from — after all, it’s artificial intelligence, not a real person. Our virtual assistants, be it Siri, Alexa, or Google Assistant, are always at our beck and call, but we (for the most part) remain well-aware of the fact that they’re just lines of code and intricate algorithms. But how would you feel if you knew that Google Assistant has a very human backstory?
In an interview with The Atlantic, James Giangola, the lead conversation and persona designer at Google, spoke about the Assistant at great length. When the team set out to create its AI-based assistant, they knew that the line between a cool, futuristic feature and a mildly creepy if uncanny voice bot is very, very thin. Google Assistant was never meant to seem human — that would just be disturbing — but she was meant to be just human enough to make us feel comfortable. To achieve that elusive feeling of somewhat reserved comfort, Giangola and his team went to great lengths to perfect the Assistant.
You’d think that just hiring a skilled voice actor would be enough, but there was much more to consider than just finding a pleasant voice. James Giangola set out on a quest to make the Google Assistant sound normal and to hide that alien feeling of speaking to a robot. In order to do this, he made up a lengthy backstory for the Assistant.
A robot with an extensive backstory
When searching for the right voice actress and then training her later on, The Atlantic notes that James Giangola came up with a very specific backstory for the AI. He did so because he wanted Google Assistant to appear real, and in order to give it a distinct personality, he gave the voice actress a lengthy background on the Assistant. First and foremost, the Assistant comes from Colorado, which gives her a neutral accent.
She comes from a well-read family and is the youngest daughter of a physics professor (who has a B.A. in art history from Northwestern University, no less) and a research librarian. She once worked for “a very popular late-night-TV satirical pundit” as a personal assistant. She was always a smart kid, she won $100,000 on the Kids Edition of “Jeopardy.” Oh, and she also likes kayaking. Let’s not forget: She’s not real.
The need to create such a specific backstory may seem questionable, and it actually was questioned by James Giangola’s colleagues. However, Giangola was able to prove his point during the audition process. When a colleague asked him how does anyone even sound like they’re into kayaking, Giangola fired back: “The candidate who just gave an audition — do you think she sounded energetic, like she’s up for kayaking?” And she didn’t, which to Giangola meant that she wasn’t the right voice.
Google aimed for ‘upbeat geekiness’
Aside from nailing the exact tone of her voice, which The Atlantic described as “upbeat geekiness,” the Assistant had to be trained to sound human not just by voice, but also by speech patterns and rhythms. In the interview, James Giangola talks about some of the different small changes that were made to take the Assistant from robotic to almost natural.
To illustrate the example, Giangola played a recording in which the AI had to contradict a user who wanted to book something on June 31. It had to be done in a delicate, natural-sounding manner that still delivers the required information. When prompted, the Assistant replied: “Actually, June has only 30 days,” achieving the level of vocal realism Giangola was looking for.
Although the Assistant’s intricate backstory may seem overkill, it seems to have helped Google find the right voice actress. According to Tech Bezeer, the main voice of the Assistant is Antonia Flynn, who was cast back in 2016. However, Google is not very forthcoming with information about who exactly voices each version of the Assistant, so this needs to be taken with a grain of salt. The information originates from Reddit, where a user was able to track Flynn down based on her voice, but only Google knows whether she really is the friendly AI inside our mobile devices.
Microsoft’s post-Windows Phone vision leaks, but don’t get your hopes up
While Microsoft’s Windows Phone ambitions are well and truly dead at this point, there was a time when the company was plotting a follow-up to the ill-fated mobile operating system. That follow-up was known internally as Andromeda OS, and it was being developed as the operating system for the Surface Duo. Sadly, Microsoft’s plan to create a version of Windows for dual-screen devices never saw the light of day, but today we’re getting a look at an internal build of Andromeda OS and what could have been.
That look comes from Zac Bowden at Windows Central, who managed to get a build of Andromeda OS up and running on a Lumia 950. Even though Andromeda OS was intended for the Surface Duo, Microsoft apparently conducted internal testing on Lumia 950 devices, making it a solid choice for this hands-on.
In both his write-up and the video you see embedded below, Bowden is very clear that this is not some leak of a work-in-progress mobile operating system. Andromeda OS is dead and not in active development, so there’s no real hope of seeing a more fully-featured version launch on Microsoft’s mobile hardware at any point in the future. Despite that rather grim reality, this is a good look at the progress Microsoft made before it ultimately decided to ship the Surface Duo with Android.
Though the hands-on shows us an operating system that is very rough-around-the-edges and somewhat clunky, it’s immediately obvious that Microsoft planned Andromeda OS with inking capabilities at the center. For instance, the lock screen doubles as an inking space, allowing users to jot quick notes down on it that persist until they’re erased or the lock screen is cleared entirely.
Just as well, unlocking the device takes you to a home screen that also doubles as a journal. As with the lock screen, you can use this page to take notes, but you can also do things like paste stuff from the clipboard or insert an image for markup. Having the phone unlock to what is essentially a blank canvas instead of a home screen full of app icons is an interesting idea and one that we’re probably never going to see on other devices.
Andromeda OS also features a Start menu reminiscent of Windows Phone, which means that it has those familiar Live Tiles. Bowden also shows off the various gesture controls included in Andromeda OS, swiping from the left to summon the aforementioned Start menu and from the right to bring up Cortana and notifications. Swiping down pulls up the Control Center, which will look familiar to those who are currently using Windows 11.
We’re also given a brief demo of what Andromeda OS might have looked like on an actual dual-screen device, but since that demo is also on a Lumia 950, we sadly don’t get the full experience. Still, it’s interesting to see what might have been before Microsoft decided to can Andromeda OS entirely and switch to Android for the Surface Duo.
While there’s no chance we’ll see this project revived for future Microsoft hardware, there is always the chance that some individual features could make their way to the Surface Duo. Even then, it’s probably best to appreciate this as a relic of the past rather than something that might inform Microsoft’s future efforts, as disappointing as that may be for those who miss Windows Phone and Windows 10 Mobile.
Google just got terrible news in Europe – and it could get much worse
Google was just hit by some very bad news coming from Europe, but the news may be even worse for website owners than for Google itself. In an unprecedented case, the court in Austria has just ruled that Google Analytics is in violation with the European data protection laws. As a result, Google Analytics has been made illegal in Austria.
It all comes back to the General Data Protection Regulation (GDPR) observed in Europe. Implemented in 2018, GDPR was created to give European citizens more control over their personal data, both online and offline. Unfortunately, the GDPR and US surveillance laws just do not mix.
According to a decision made in 2020 by the Court of Justice of the European Union (CJEU,) policies that force website providers in the US to provide personal user data to authorities are against the GDPR. While this may not seem that related to Google Analytics at the first glance, it very much is. Some of the information readily collected by US providers is in direct violation with the GDPR, which in theory means that these websites would have to stop collecting private information in order to legally operate within Europe. In practice, it seems that not much has changed since 2018.
Google Analytics is now completely illegal in Austria
Prior to 2020, a law called the Privacy Shield was in place that allowed European data to be transferred to the United States. However, the shield was invalidated by the CJEU on July 16, 2020. Since then, US-based websites were not allowed to transfer the data of European citizens to the US. Of course, this only applies to data that falls under the GDPR, which only includes identifiable information about any given person. However, according to FieldFisher, this also includes IP addresses, as that is regarded as an “online identifier.”
Regardless of the 2020 ruling made by the CJEU, many providers continued to send personal data to the US — including Google Analytics. As stated by Max Schrems, honorary chair of NOYB, an European non-profit focused on digital rights, “Instead of actually adapting services to be GDPR compliant, US companies have tried to simply add some text to their privacy policies and ignore the Court of Justice. Many EU companies have followed the lead instead of switching to legal options.”
The Austrian Data Protection Authority has now followed up on what the CJEU ruled back in 2020 and made the use of Google Analytics completely illegal. The ruling comes into effect immediately, so all the websites that service Austrian citizens need to act quickly in order to not be fined for violating the local laws.
What will the new court ruling change?
Many companies that operate in Europe will now have to decide between continuing to use Google Analytics and swapping to an alternative website traffic tool. Refusing to comply may result in hefty fines. However, it could be that providers will continue to ignore the European laws and risk the fines: After all, not every such business will be caught or reported. If caught, the price could be high: NOYB has described a case where the Irish Data Protection Commission issued a fine of 225 million euro on WhatsApp for violating data protection laws.
Ultimately, US-based companies will have to think of workarounds for European privacy laws. Simply hosting customer data in Europe would be helpful, although this would of course limit the type of data that can be freely collected and distributed. For the time being, websites that continue to use Google Analytics will need to obtain consent from each visitor prior to collecting any data.
The choice to ban Google Analytics in Austria may be the first step in a larger revolution. Other countries in the European Union are likely to follow, so while Austria may be the first bit of bad news for Google, there is likely much more to come.
Retired FBI agent has new theory about who betrayed Anne Frank’s family to Nazis
Enlarge / Anne Frank in 1940. A new book, The Betrayal of Anne Frank: A Cold Case Investigation, by Rosemary...
This is the real voice behind Google Assistant
When using Google Assistant, most of us don’t even consider who the voice is coming from — after all, it’s...
A white supremacist website got hacked, airing all its dirty laundry
Enlarge / Patriot Front members spray painting in Springfield, IL. Unicornriot.ninja Chat messages, images, and videos leaked from the server...
What happens if a space elevator breaks
TCD | Prod.DB | Apple TV+/ | lamy In the first episode of the Foundation series on Apple TV, we...
Judge’s order slaps Roblox player with permanent game ban
Enlarge / A court order has led to a longtime Roblox player being banned from the popular game. Aurich Lawson...
Social2 years ago
CrashPlan for Small Business Review
Gadgets3 years ago
A fictional Facebook Portal videochat with Mark Zuckerberg – TechCrunch
Mobile3 years ago
Memory raises $5M to bring AI to time tracking – TechCrunch
Cars3 years ago
What’s the best cloud storage for you?
Social3 years ago
iPhone XS priciest yet in South Korea
Security3 years ago
Google latest cloud to be Australian government certified
Social3 years ago
Apple’s new iPad Pro aims to keep enterprise momentum
Cars3 years ago
SK Telecom and Samsung to collaborate on 5G for enterprise