Friday, December 28, 2018

Elon Musk argues comments on Twitter are protected speech in request to dismiss ‘pedo guy’ lawsuit

Elon Musk has filed a motion to dismiss a defamation lawsuit filed against him by the British cave rescuer who sued the billionaire entrepreneur for calling him a pedophile.

Musk’s motion presents numerous reasons to dismiss the defamation lawsuit, all of which come back to a two main points: Twitter is “infamous for invective and hyperbole,” and therefore should not be considered fact and these “imaginative attacks,” even if offensive, “are by their nature opinion and protected by the First Amendment.” 

Musk’s lawyers ask a single question in the request: “Accepting Unsworth’s well-pleaded allegations as true, would a reasonable reader believe that Musk’s statements were supported by objective facts or were instead “nonactionable opinion?”

The list of arguments laid out in the motion to dismiss are:

  1. Unsworth must prove that the reasonable reader would believe Musk possessed private facts implicating Unsworth as a pedophile.
  2. In context, Musk’s statements cannot reasonably be read as asserting underlying knowledge that Unsworth was a pedophile
  3. Statements on unmoderated Internet forums are presumptively opinion.
  4. Musk’s underlying argument is that “his over-the-top insults are not statements of fact.”
  5. Musk disclosed the basis for his personal opinion: Thailand’s documented problems with sex tourism
  6. Musk’s over-the-top insults are not statements of fact
  7. Musk’s colloquial statements are not reasonably interpreted as statements of facts
  8. Musk’s expressions of uncertainty show that his statements did not have a concrete factual foundation and were therefore opinion
  9. Readers did not interpret Musk’s statements as factual assertions

Whether these arguments will be enough to convince a judge to dismiss the lawsuit is unclear. However, it raises a different question. If the argument is to be believed, it would suggest that other claims and promises Musk puts on Twitter shouldn’t be trusted as fact either.

The whole “pedo guy” episode began over the summer after Musk and employees at his companies, SpaceX, Tesla, and The Boring Company, became involved in an effort to extract 12 boys and their soccer coach from the Tham Luang Nang Non cave system located in Northern Thailand after flooding trapped the group for weeks. Musk’s team developed and then sent  mini submarine built out of rocket parts that he thought could help.

The team of divers who eventually rescued every person trapped in the cave didn’t use the mini-submarine, dubbed by Musk’s people as “Wild Boar.”

Unsworth, a British ex-pat who lives in Thailand, helped plan the rescue operation and recruited other cave diving experts. The fight began after Unsworth gave an interview on CNN International, in which he called the mini submarine a “PR stunt,” that it “had absolutely no chance of working” and that Musk could “stick his submarine where it hurts.”

Musk subsequently lashed out on Twitter and insinuated that Unsworth was a pedophile. He later deleted the offending tweet and tried to backpedal — even offering an apology of sorts on Twitter. And it could have all ended there. But then Musk dug it all up again during a debate with ex-TechCrunch journalist Drew Olanoff — once again on Twitter. Olanoff had brought up the “pedo guy” attack as an example of Musk telling untruths.

Unsworth filed a lawsuit September in the U.S. District Court for the Central District of California against Musk for defamation. The lawsuit alleges that between July 15 and August 30, Musk periodically used Twitter and emails to the media to publish false and defamatory accusations against Unsworth, including accusations of pedophilia and child rape.

Read the entire motion here.

Cap table management tool Carta valued at $800M with new funding

Startups supporting startups are blazing a new trail with support from venture capitalists.

Co-working spaces like The Wing and The Riveter raked in funding rounds this year, as did Brex, the provider of a corporate card built specifically for startups. Now Carta, which helps companies manage their cap tables, valuations, portfolio investments and equity plans, has announced an $80 million Series D at a valuation of $800 million. The company, formerly known as eShares, raised the capital from lead investors Meritech and Tribe Capital, with support from existing investors.

The round brings Carta’s total funding to $147.8 million. Its existing investors include Spark Capital, Menlo Ventures, Union Square Ventures and Social Capital, though the latter didn’t participate in the Series D funding. Tribe Capital, however, is a new venture capital firm launched by Arjun Sethi, who previously led Social Capital’s investment in Carta, Jonathan Hsu and Ted Maidenberg, a trio of former Social Capital partners who exited the VC firm amid its transition from a traditional VC fund to a technology holding company. Tribe is said to be in the process of raising its own $200 million debut fund.

Founded in 2012 by Henry Ward (pictured), the Palo Alto-based company plans to use the latest investment to develop their transfer agent and equity administration products and services to better support startups transitioning into public companies. It also will launch additional products for investors to collect data from their portfolio companies and to manage their back office.

“We’ve come this far by changing how ownership management works for private companies—popularizing electronic securities and cap table software, combined with audit-ready 409As,” Ward wrote in an announcement. “But our ambitions go far beyond supporting privately-held, venture-backed companies.”

Carta, which counts Robinhood, Slack, Wealthfront, Squarespace, Coinbase and more as customers, currently manages $500 billion in equity. This year, Carta expanded its headcount from 310 employees to 450 employees, launched board management and portfolio insights products and completed a study in partnership with #Angels that highlighted the major equity gap female startup employees are victim to.

The study, released in September, revealed that women own just 9 percent of founder and employee startup equity, despite making up 35 percent of startup equity-holding employees. On top of that, women account for 13 percent of startup founders, but just 6 percent of founder equity — or $0.39 on the dollar.

Elon Musk lays out ambitious plan for Tesla Supercharger network in Europe

Tesla CEO Elon Musk is making some audacious promises again for the company’s network of electric fast chargers, known as Superchargers. This time, he’s aiming for 100 percent Tesla Supercharger coverage in Europe by next year.

In response to a question on Twitter, Musk said Tesla’s Supercharger coverage will extend to 100 percent of Europe in 2019. “From Ireland to Kiev, from Norway to Turkey,” Musk wrote.

A look at Tesla’s Supercharger map shows a high concentration of the fast chargers in Western Europe. Countries like Albania, Estonia, Latvia, Lithuania, Romania, Serbia and Moldova don’t have any Superchargers.

Musk also laid out plans to focus on cities, specifically to work with landlords to add home charging units at apartment buildings.

Musk then went further, this time in response to a Twitter follower who noticed that Superchargers planned for San Antonio and Austin in 2018 had yet to be completed. The billionaire entrepreneur said “all major highways in Texas will have Superchargers, all the way to Brownsville and across Mexico.”

He even laid out plans, although less specific, to add Superchargers to Africa in 2020. There are no Superchargers on the African continent.

Tesla’s Supercharger network was launched in 2012 in an effort to encourage owners of its electric vehicles to travel longer distances. A Supercharger adds up to 170 miles of range in about 30 minutes (although TechCrunch has experienced slightly longer charge times depending on location).

Musk has made bold promises for the company’s Supercharger network before. And while the company has made substantial progress and investment in its Supercharger network, it’s still nowhere near its previously promised target. 

In April 2017, Tesla said it would double its global network of Superchargers from more than 5,400 to more than 10,000 by the end of the year. It fell short of that goal, with about 8,250 Superchargers.

Earlier this year, Musk laid out plans to have 18,000 superchargers globally by the end 2018. As of December 27, Tesla has 11,583 Superchargers (within 1,386 Supercharger stations) globally.

Philips Hue has been having a holiday outage, too

Alexa wasn’t the only thing that crashed over Christmas due to an influx of new users. Apparently, Philips Hue has been having an outage, as well. A multi-day outage, in fact. The company confirmed on Wednesday that customers were experiencing issues creating new accounts, logging in and linking their account to third parties. It blamed the issues on “a lot of new activations.”

In other words, many people received Hue’s connected lighting products over the holidays and were now trying to set up their smart bulbs and other devices all around the same time. Hue’s servers couldn’t keep up with the demand and weren’t responding to the incoming requests. That meant users couldn’t create or log into their MyHue account, or connect their lights to their Amazon Echo or Google Home.

Customers were, understandably, very frustrated — especially because their issues began on Christmas, and had continued for days with no word from the company.

Others complained they had wasted several hours troubleshooting the problem, having not realized it was a Hue outage that was at fault, as a result of this lack of communication.

Philips Hue’s Twitter account didn’t make a public announcement about the outage until Wednesday — instead, the company was only replying to individual users.

Because Twitter hides replies in a separate tab, visitors to Hue’s Twitter page wouldn’t have seen any statements from the company unless they clicked over to see the back-and-forth conversations with Hue’s customers — and some of those weren’t outage-related.

People who followed Hue on Twitter wouldn’t have seen these replies in their own timelines, either.

Philips Hue had also downplayed the problem in its initial replies, as well, saying server issues were affecting only a “small percentage” of users.

Customers were told to try again or try in a few hours.

While Alexa had crashed on Christmas due to a similar problem of too many new users hitting its servers all at once, its outage only lasted a couple of hours.

In Philip Hue’s case, customers have been inconvenienced for much longer.

Many are also new Hue customers — those who are trying to trying to create their account and set up their devices for the first time. For some, Hue’s smart light bulbs may even be their first experience with a smart home device — and this outage may leave them not wanting to try again.

Early on Thursday, Hue’s Twitter account began to reply to individual users, telling them the service “should be up and running.”

But it also warned them that, depending on demand, they may have to try a few times today to get everything going. The company additionally suggested to some that they should try to set up the lights during off-peak hours, like the morning.

We reached out to Philips Hue to ask if the outage was indeed resolved, and will update with a statement if one is provided.

Update, 12/27/18, 1:30 PM ET: According to a spokesperson, the company hopes to have the issue corrected soon. They said:

“Following the holidays, we are seeing a high number of users setting up their Hue accounts. Unfortunately, this is causing a delay for some customers who have not been able to create their Hue account or link Hue to their voice assistant. We are working to support this increased traffic and help our customers complete their setup. We expect to have the issue corrected shortly.”

Instagram accidentally rolled out tap-to-advance feed, removes it

Instagram confirms that a bug this morning mistakenly rolled out a massive change to its feed that replaced the traditional scrolling with horizontal tap-to-advance, like with Stories. In October, TechCrunch reported Instagram was testing tap-to-advance for browsing through Explore posts. But many users woke up to a shock this morning when their familiar vertical swipe stopped advancing the main feed. Many users immediately complained that the gesture felt awkward and annoying.

“Due to a bug, some users saw a change to the way their feed appears today. We quickly fixed the issue and feed is back to normal. We apologize for any confusion,” an Instagram spokesperson tells TechCrunch. The company confirms it’s still testing the navigation style in Explore.

Instagram was attempting to test the feature with a small percentage of users, but the bug caused a much broader rollout to a few orders of magnitude more people than planned, according to head of Instagram Adam Mosseri. Users can restart their Instagram and the change should disappear.

Tap-to-advance makes it easier to move between posts with them staying fully in view, compared to scrolling where it can take some adjustment to make sure the top or bottom of a post isn’t cut off. But scrolling revealed the author of a post first, then the content, then the caption, which is a sensible and intuitive way to browse. Tap-to-advance could send users’ eyes flitting around the screen in an exhausting manner. But most importantly, people have spent eight years growing accustomed to scrolling the Instagram feed. Suddenly breaking that behavior pattern was sure to piss people off.

It’s possible that Instagram could still bring tap-to-advance to the main feed in the future. But given how angry the responses were, it might now think twice unless the data shows the change makes people spend a lot more time in the app.

Here’s a look at how tap-to-advance in the feed worked, and the alert users got about how it works.

Grove Collaborative, a subscription startup selling ‘household essentials,’ has been quietly raising a lot of moolah

Grove Collaborative, a four-year-old, San Francisco-based startup that sells household, personal care, baby, children’s and pet products, has been busy raising money in 2018, shows two new SEC filings that lists representatives from the company’s earlier investors, including Mayfield, Norwest Venture Partners and MHS Capital, as well as apparent new investor General Atlantic, represented by partner Catherine Beaudoin.

One of the filings shows that Grove Collaborative, which had already raised roughly $62 million as of the start of 2018, subsequently raised $27.4 million more this year. A separate, second filing shows another $76.4 million has been secured in what looks to be a newer round that’s targeting $125 million. It’s a lot of money for such a young company, which suggests it has found traction with a growing customer base.

We’ve reached out to Grove Collaborative and are waiting to learn more.

As we reported back in January, co-founder Stuart Landesberg started the company after working with retail brands during two years as an associate with TPG Capital, which focuses on growth equity and middle-market private equity transactions. With shelf space limited for brands in brick-and-mortar stores, he saw an opportunity for a startup that prompts consumers to buy the kinds of items they buy over and over again just as they are running out of them: think dish soap, pet food, deodorant, vitamins and sunscreen.

Amazon, of course, similarly prompts its customers to buy such items, but Grove Collaborative is marketing to a slightly narrower demographic, that of people who want only all-natural products. In fact, along with the brands that it make it easier for its customers to find — think Method and Mrs. Meyers — the company began selling its own all-natural products this year. Among the many dozens of offerings it now retails under the Grove Collaborative label: a coconut body lotion, a foaming hand soap, coffee filters, soy candles and lip balm.

The move puts the startup in more direct competition with other e-commerce companies, like the consumer goods company Honest Company, which similarly sells natural products for the home and personal care, though many of its products are now sold on shelves in big retail stores like Target.

Grove Collaborative also looks to be competing more directly now with well-funded Brandless, which raised $240 million from SoftBank’s Vision Fund in summer at a valuation of slightly more than $500 million. Brandless also sells its own all-natural household and personal care products, though, unlike Grove Collaborative, it also focuses on food and, unlike Grove, it offers a subscription service, yet does not revolve around one. Grove is exclusively selling an auto-shipment service.

Grove had previously raised two separate rounds of funding in quick succession: a $15 million Series B round it closed in March of 2017, following by a $35 million Series C round it announced in January of this year.

Given that Landesberg was formerly an investor himself, he may well have realized — as have many founders — that raising money next year may be far harder in 2019 than it has been this year. As the CEO of Zymergen, whose giant funding round we recently featured, told Bloomberg last week: “We wanted to have some fat on our bones for sure . . . The time to raise money is when people are giving it to you.”

Sources: the US State Department ordered embassies to push back against foreign influence campaigns, as officials worry anti-US views are taking root worldwide (New York Times)

New York Times : Sources: the US State Department ordered embassies to push back against foreign influence campaigns, as officials worry ...