Protesters carrying an inflatable angry emoji greeted Facebook shareholders as they gathered for the company’s annual meeting on Thursday, the latest sign of its struggle to shake off privacy scandals and rein in fake news and hate speech.
The social media giant again faced demands for reform at Thursday’s meeting, including shareholder proposals that called for revamping the company’s voting structure and ousting Chief Executive Officer Mark Zuckerberg as chairman.
The measures had little chance of succeeding, as a dual-class share structure gives Zuckerberg and other insiders control of about 58% of the votes. Many investors have shrugged off the scandals swirling around the company, as it has beaten Wall Street’s estimates for revenue growth and continues to add users globally.
Zuckerberg declined to answer a shareholder question on why he would not agree to create an independent board chair, instead restating his view that regulators should set the rules for companies around privacy and content.
But even though the votes are largely symbolic, they are still seen as a useful barometer of investor sentiment about how well the social media icon is coping with unprecedented challenges to its hands-off approach to content.
Last year, about 83% of shares held by outside investors voted for a proposal that would have the company move to a structure of one vote per share and do away with the supermajority shares.
A coalition of activist groups have urged big investors to reject Zuckerberg’s nomination to the board this year, saying Facebook has failed to protect users, especially racial and religious minorities.
Outside the hotel, a small group of protesters filmed themselves hoisting the 8-foot (2.5-meter) red emoji balloon, saying the company failed to protect its users, particularly minorities, from hate speech and other abuses.
“Zuckerberg has said that he wants to protect people from white supremacy but there’s still a ton of white supremacists organising on Facebook,” said Leila Deen, program director for SumOfUs, the group in the coalition responsible for the balloon.
Nearby, an opposing protester in a red hat stamped with “Make America Great Again,” a slogan of US President Donald Trump, used a loudspeaker to accuse Facebook of censoring conservatives.
The coalition, led by consumer group Majority Action and civil rights advocate Color of Change, said they had gathered 125,000 signatures on a petition targeting BlackRock, one of Facebook’s biggest outside investors.
BlackRock’s funds backed all of Facebook’s director nominees last year, but also voted for two shareholder proposals that would have reorganized Facebook’s governance structure.
It declined to comment on the petition, with a spokesman saying it did not preview votes or comment on specific companies.
Other shareholders in the meeting said the company created a “hostile work environment” for people with conservative views and pressed for a diversity report reflecting its public policy positions.
Facebook has been under scrutiny from regulators and shareholders since last year, when reporting revealed that the data of some 87 million users had been shared with now-defunct political data firm Cambridge Analytica.
The company has also come under fire over Russian meddling in the 2016 US presidential election, which used social media to spread disinformation, and its frequently shifting policies around which content is permitted on its platform.
US House Speaker Nancy Pelosi criticised the company on Wednesday, saying she was no longer willing to give Facebook the benefit of the doubt on Russia after it refused to remove a heavily edited video that attempted to make her look incoherent.
“I thought it was unwittingly, but clearly they wittingly were accomplices and enablers of false information to go across Facebook,” she said.
The comments raise the spectre of harsher action in Congress against Facebook. Pelosi has previously warned that Section 230 of the Communications Decency Act, which shields tech companies from legal liability for content created by their users, was a “gift” that had been abused and could be reconsidered.
Investors do not seem worried.
The company’s stock jumped 10 percent after its last earnings report, even as it announced it was setting aside up to $5 billion for what could be the largest civil penalty ever paid to the Federal Trade Commission, which has been investigating Facebook over alleged privacy violations.
One of Facebook’s largest fund investors, William Danoff of the $123 billion Fidelity Contrafund, did not mention any of Facebook’s privacy issues in his most in his most recent quarterly commentary to investors.
He wrote only that, as his portfolio’s second-largest holding, Facebook “appeals to us based on growth in its various apps and revenue from advertisers that want to reach the firm’s enormous base of daily active users.”
Danoff has been a long-time backer of Facebook and previously indicated he was satisfied with the company’s reform efforts to date.
Among other top Facebook investors, last year Vanguard Group Inc withheld support from Zuckerberg and Sandberg, and backed a measure to reform Facebook’s voting structure.
© Thomson Reuters 2019
Cymulate snaps up $70M to help cybersecurity teams stress test their networks with attack simulations – TechCrunch
The cost of cybercrime has been growing at an alarming rate of 15% per year, projected to reach $10.5 trillion by 2025. To cope with the challenges that this poses, organizations are turning to a growing range of AI-powered tools to supplement their existing security software and the work of their security teams. Today, a startup called Cymulate — which has built a platform to help those teams automatically and continuously stress test their networks against potential attacks with simulations, and provide guidance on how to improve their systems to ward off real attacks — is announcing a significant round of growth funding after seeing strong demand for its tools.
The startup — founded in Tel Aviv, with a second base in New York — has raised $70 million, a Series D that it will be using to continue expanding globally and investing in expanding its technology (both organically and potentially through acquisitions).
Today, Cymulate’s platform covers both on-premise and cloud networks, providing breach and attack simulations for endpoints, email and web gateways and more; automated “red teaming”; and a “purple teaming” facility to create and launch different security breach scenarios for organizations that lack the resources to dedicate people to a live red team — in all, a “holistic” solution for companies looking to make sure they are getting the most out of the network security architecture that they already have in place, in the worlds of Eyal Wachsman, Cymulate’s CEO.
“We are providing our customers with a different approach for how to do cybersecurity and get insights [on] all the products already implemented in a network,” he said in an interview. The resulting platform has found particular traction in the current market climate. Although companies continue to invest in their security architecture, security teams are also feeling the market squeeze, which is impacting IT budgets, and sometimes headcount in an industry that was already facing a shortage of expertise. (Cymulate cites figures from the U.S. National Institute of Standards and Technology that estimate a shortfall of 2.72 million security professionals in the workforce globally.)
The idea with Cymulate is that it’s built something that helps organizations get the most out of what they already have. “And at the end, we provide our customers the ability to prioritize where they need to invest, in terms of closing gaps in their environment,” Wachsman said.
The round is being led by One Peak, with Susquehanna Growth Equity (SGE), Vertex Ventures Israel, Vertex Growth and strategic backer Dell Technologies Capital also participating. (All five also backed Cymulate in its $45 million Series C last year.) Relatively speaking, this is a big round for Cymulate, doubling its total raised to $141 million, and while the startup is not disclosing its valuation, I understand from sources that it is around the $500 million mark.
Wachsman noted that the funding is coming on the heels of a big year for the startup (the irony being that the constantly escalating issue of cybersecurity and growing threat landscape spells good news for companies built to combat that). Revenues have doubled, although it’s not disclosing any numbers today, and the company is now at over 200 employees and works with some 500 paying customers across the enterprise and mid-market, including NTT, Telit, and Euronext, up from 300 customers a year ago.
Wachsman, who co-founded the company with Avihai Ben-Yossef and Eyal Gruner, said he first thought of the idea of building a platform to continuously test an organization’s threat posture in 2016, after years of working in cybersecurity consulting for other companies. He found that no matter how much effort his customers and outside consultants put into architecting security solutions annually or semi-annually, those gains were potentially lost each time a malicious hacker made an unexpected move.
“If the bad guys decided to penetrate the organization, they could, so we needed to find a different approach,” he said. He looked to AI and machine learning for the solution, a complement to everything already in the organization, to build “a machine that allows you to test your security controls and security posture, continuously and on demand, and to get the results immediately… one step before the hackers.”
Last year, Wachsman described Cymulate’s approach to me as “the largest cybersecurity consulting firm without consultants,” but in reality the company does have its own large in-house team of cybersecurity researchers, white-hat hackers who are trying to find new holes — new bugs, zero days and other vulnerabilities — to develop the intelligence that powers Cymulate’s platform.
These insights are then combined with other assets, for example the MITRE ATT&CK framework, a knowledge base of threats, tactics and techniques used by a number of other cybersecurity services, including others building continuous validation services that compete with Cymulate. (Competitors include the likes of FireEye, Palo Alto Networks, Randori, AttackIQ and many more.)
Cymulate’s work comes in the form of network maps that detail a company’s threat profile, with technical recommendations for remediation and mitigations, as well as an executive summary that can be presented to financial teams and management who might be auditing security spend. It also has built tools for running security checks when integrating any services or IT with third parties, for instance in the event of an M&A process or when working in a supply chain.
Today the company focuses on network security, which is big enough in itself but also leaves the door open for Cymulate to acquire companies in other areas like application security — or to build that for itself. “This is something on our roadmap,” said Wachsman.
If potential M&A leads to more fundraising for Cymulate, it helps that the startup is in one of the handful of categories that are going to continue to see a lot of attention from investors.
“Cybersecurity is clearly an area that we think will benefit from the current macroeconomic environment, versus maybe some of the more capital-intensive businesses like consumer internet or food delivery,” said David Klein, a managing partner at One Peak. Within that, he added, “The best companies [are those] that are mission critical for their customers… Those will continue to attract very good multiples.”
Open-source password manager Bitwarden raises $100M – TechCrunch
Bitwarden, an open-source password manager for enterprises and consumers, has raised $100 million in a round of funding led by PSG, with participation form Battery Ventures.
Founded initially back in 2015, Santa Barbara, California-based Bitwarden operates in a space that includes well-known incumbents including 1Password, which recently hit a $6.8 billion valuation off the back of a $620 million fundraise, and Lastpass, which was recently spun out as an independent company again two years after landing in the hands of private equity firms.
In a nutshell, Bitwarden and its ilk make it easier for people to generate secure passwords automatically, and store all their unique passwords and sensitive information such as credit card data in a secure digital vault, saving them from reusing the same insecure password across all their online accounts.
Bitwarden’s big differentiator, of course, lies in the fact that it’s built atop an open-source codebase, which for super security-conscious individuals and businesses is a good thing — they can fully inspect the inner-workings of the platform. Moreover, people can contribute back to the codebase and expedite development of new features.
On top of a basic free service, Bitwarden ships a bunch of paid-for premium features and services, including advanced enterprise features like single sign-on (SSO) integrations and identity management.
It’s worth noting that today’s “minority growth investment” represents Bitwarden’s first substantial external funding in its seven year history, though we’re told that it did raise a small undisclosed series A round back in 2019. Its latest cash injection is indicative of how the world has changed in the intervening years. The rise of remote work, with people increasingly meshing personal and work accounts on the same devices, means the same password is used across different services. And such poor password and credential hygiene puts businesses at great risk.
Additionally, growing competition and investments in the management space means that Bitwarden can’t rest on its laurels — it needs to expand, and that is what its funds will be used for. Indeed, Bitwarden has confirmed plans to extend its offering into several aligned security and privacy verticals, including secrets management — something that 1Password expanded into last year via its SecretHub acquisition.
“The timing of the investment is ideal, as we expand into opportunities in developer secrets, passwordless technologies, and authentication,” Bitwarden CEO Michael Crandell noted in a press release. “Most importantly, we aim to continue to serve all Bitwarden users for the long haul.”
downgrade the ‘middle-men’ resellers – TechCrunch
As well as the traditional carbon offset resellers and exchanges such as Climate Partner or Climate Impact X the tech space has also produced a few, including Patch (US-based, raised $26.5M) and Lune (UK-based, raised $4M).
Now, Ceezer, a B2B marketplace for carbon credits, has closed a €4.2M round, led by Carbon Removal Partners with participation of impact-VC Norrsken VC and with existing investor Picus Capital.
Ceezer ’s pitch is that companies have to deal with a lot of complexity when considering how they address carbon removal and reduction associated with their businesses. Whie they can buy offsetting credits, the market remains pretty ‘wild-west’, and has multiple competing standards running in parallel. For instance, the price range of $5 to $500 per ton is clearly all over the place, and sometimes carbon offset resellers make buyers pay high prices for low-quality carbon credits, pulling in extra revenues from a very opaque market.
The startup’s offering is for corporates to integrate both carbon removal and avoidance credits in one package. It does this by mining the offsetting market for lots of data points, enabling carbon offset sellers to reach buyers without having to use these middle-men resellers.
The startup claims that sellers no longer waste time and money on bespoke contracts with corporates but instead use Ceezer’s legal framework for all transactions. Simultaneously, buyers can access credits at a primary market level, maximizing the effect of the dollars they spend on carbon offsets.
Ceezer says it now has over 50 corporate customers and has 200,000 tons of carbon credits to sell across a variety of categories. and will use the funds to expand its impact and sourcing team, the idea being to make carbon removal technologies more accessible to corporate buyers, plus widen the product offering for credit sellers and buyers.
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