<span>Monthly Archives</span><h1>January 2019</h1>
    Tech News

    Step targets teens and parents with a no-fees mobile bank account and Visa card

    January 31, 2019

    A new mobile banking startup called Step wants to help bring teenagers and other young adults into the cashless era. Today, cash is used less often, as more consumers shop online and send money to one another through payment apps like Venmo. But teenagers in particular are still heavily burdened with cash — even though they, too, want to spend their money on things that require a payment card, like Amazon.com purchases or mobile gaming, for example.

    That’s where Step comes in.

    The company aims to address the needs of what it believes is an underserved market in mobile banking — the 75 million children and young adults under the age of 21 in the U.S., who are still being forced to use cash.

    This market isn’t the “unbanked,” it’s the “pre-banked,” explains Step CEO CJ MacDonald, whose previous startup, mobile gift card platform Gyft, sold to First Data several years ago.

    Above: Step CEO, CJ MacDonald

    “We’re building an all-in-one banking solution that primarily focuses on teens and parents,” he says. “We want it to be a teen’s first bank account. We want to be a teen’s first spending card. And we want to teach financial literacy and responsibility firsthand.”

    MacDonald, along with CTO Alexey Kalinichenko, previously of Square and financial services startup Token, founded Step in May 2018. The 10-person team also includes several prior Gyft employees.

    Last summer, Step closed on $3.8 million in seed funding from Sesame Ventures, Crosslink Capital and Collaborative Fund. Crosslink general partner Eric Chin sits on the board.

    While there are a number of mobile banking apps out there today — like Chime, Monzo, Simple, Revolut and others — Step will specifically target teens, 13 and up, and other young adults with its marketing. Teens under 18 still need parents’ approval to sign up, of course. But the goal is to encourage the teens to bring the idea to their parents — not the other way around.

    Step’s focus on this younger demographic puts it in a different space, where there are fewer competitors. Its more direct rivals are not the bigger mobile banks, but rather startups like teen debit card and bank app Current, or the parent-managed debit card for kids from Greenlight.

    The mobile banking service Step provides will also aim to be more comprehensive than just a debit card. It will offer a combination of checking, savings and a Visa card that works as both credit and debit.

    The card includes Visa’s Zero Liability Protection on all purchases from unauthorized use, and allows parents to set spending limits.

    Parents will also be able to connect their own bank accounts to Step to instantly transfer in funds, which can then be distributed to kids’ accounts for things like allowances and chores, or other everyday spending needs. Step’s bank account itself is backed by Evolve Bank, so it’s FDIC-insured up to $250,000.

    Unlike Current, which charges a subscription to use its service, Step aims to be a fee-free bank for consumers. Users don’t have to pay for their account, and there are no fees for things like overdrafts. Instead, Step’s plan is to generate revenue through traditional means — like interchange fees and by way of lending practices, once it has established a deposit base.

    The company pays a 2.5 percent interest rate on deposits, offers a round-up savings feature and a range of budgeting tools and supports free instant transfers between Step accounts. It also provides access to a network of 35,000 ATMs with no fees.

    Beyond simply facilitating mobile banking, Step’s bigger goal is to teach teens to become financially responsible.

    “Schools do not teach kids about money. A lot of families don’t talk about money. And it’s a crucial life skill that’s not really addressed properly when people are growing up,” says MacDonald, who says he was lacking in life skills in this area, even as a young college grad.

    “There were ‘Money 101’ skills that I had not learned — that no one had talked to me about. Things like building credit, how many credit cards you should have, debt to income ratio,” he continues. “A lot of people get released into the real world without experience [in those areas],” he says.

    Long-term, after solving the needs associated with everyday banking transactions, Step wants to layer on other products and services — like tools that allow a family to save together for college, for example.

    The company is launching the banking service under an invite-only system to scale up.

    Today, it’s opening a waitlist and referral program. When you invite a friend, you each receive one dollar. Access will then be rolled out on a first-come, first-serve basis this spring. Users can join Step through the website, iOS or Android application.

    Source: Tech Crunch Mobiles | Step targets teens and parents with a no-fees mobile bank account and Visa card

    Tech News

    Poor smartphones sales drag LG to first quarterly loss in 2 years

    January 31, 2019

    We’ve written extensively about LG’s struggling mobile business, which has suffered at the hands of aggressive Chinese Android makers, and now that unit has dragged its parent company into posting its first quarterly loss for two years.

    The Korean electronics giant is generally in good health — it posted a $2.4 billion profit for 2018 — but its smartphone business’s failings saw it post a loss in Q4 2018, its first quarterly negative since Q4 2016.

    Overall, the company posted a KRW 75.7 billion ($67.1 million) operating loss as revenue slid seven percent year-on-year to KRW 15.77 trillion ($13.99 billion). LG said the change was “primarily due to lower sales of mobile products.”

    We’ve known for some time that LG’s mobile business is strugglingthe division got another new head last November — but things went from bad to worse in Q4. LG Mobile saw revenue fall by 42 percent to reach KRW 1.71 trillion, $1.51 billion. The operating loss for the period grew to KRW 322.3 billion, or $289.8 million, from KRW 216.3 billion, $194 million, one year previous.

    Over the full year, LG Mobile posted a $700 million loss (KRW 790.1 billion) but the company claimed things are improving thanks to “better material cost controls and overhead efficiencies based on the company’s platform modularization strategy.”

    LG used CES to showcase a range of home entertainment products — that division is doing far better than mobile, with a record annual profit of $1.35 billion in 2018 — so we’ll have to wait until Mobile World Congress in February to see exactly what LG has in mind. Already, though, we have a suggestion, and it isn’t exactly set-the-world-on-fire stuff.

    “LG’s mobile division will push 5G products and smartphones featuring different form factors while focusing on key markets where the LG brand remains strong,” the company said in a statement.

    It will certainly take something very special to turn things around. It seems more likely that LG Mobile head Brian Kwon — who also heads up that hugely profitable home entertainment business — will focus on cutting costs and squeezing out the few sweet spots left. Continued losses, particularly against success from other units, might eventually see LG shutter its mobile business.

    Still, things could be worse for LG — it could be HTC.

    Source: Tech Crunch Mobiles | Poor smartphones sales drag LG to first quarterly loss in 2 years

    Startups

    Dadi brings in $2M to democratize sperm storage

    January 31, 2019

    The founders of Dadi — pronounced daddy — think men are in need of a wake-up call.

    “Men [have] a biological clock just like women, which is something that people don’t talk about,” Dadi co-founder and chief executive officer Tom Smith told TechCrunch. “Infertility isn’t a women’s issue; it’s both a men’s and women’s issue.”

    Smith believes Dadi, the provider of a temperature-controlled at-home fertility test and sperm collection kit, will encourage men to contribute to family planning conversations and become more aware of their reproductive health. The startup is officially launching its kit and long-term sperm storage service today with nearly $2 million in venture capital funding from London-based seed fund firstminute capital and New York-based Third Kind Venture Capital.

    “Our mission is to normalize the conversation around male fertility and reproductive health, and empower men with knowledge of fertility so they can have that conversation with their family,” Smith said.

    Here’s how it works: Dadi customers order a kit online, masturbate and collect their sperm within the comfort of their own homes, drop it off with FedEx and wait for a full fertility report, which comes with a microscopic video of the each man’s actual sperm. To survive the trip to the startup’s laboratory — the New England Cryogenic Center — the Dadi-designed container injects preservatives, which are nested in the lid of the cup, into the sperm sample.

    Headquartered in Brooklyn, Dadi’s service is FDA-licensed in all 50 states and costs a total of $198, including a test and one year of sperm storage.

    Dadi’s co-founding team includes Mackey Saturday, a graphic designer who created Instagram’s logo, and Gordon von Steiner, a former creative director in the fashion industry. The team has prioritized design and messaging of the product, in addition to security, privacy and high medical standards.

    “We aren’t trying to sell hair pills, we are actually interacting with customers at a very vulnerable part of their life,” Smith said. “We feel like our value set, approach and thoughtfulness really differentiate us from anyone else in the space.”

    One in 6 U.S. couples struggles with fertility, with male factor infertility a cause of 30 percent of those cases, per ReproductiveFacts.org. Startups want to improve these statistics, targeting an industry that’s trapped in the 1980s.

    “We are in the direct-to-consumer era,” Smith said. “We reached peak app a couple years ago and I think a lot of the innovation that’s happening in the space comes down to individualized services.”

    Dadi joins a cadre of privately funded male fertility or men’s health businesses. Hims, the provider of direct-to-consumer erectile dysfunction (ED) and hair loss medication, leads the pact. The two-year-old business entered the unicorn club last week with a $100 million investment. Ro, formerly known only as Roman, sells ED medication online, too, and has raised a total of $91 million. Legacy, which freezes men’s sperm, recently won TechCrunch’s very own Startup Battlefield competition in Berlin. And Manual, an educational portal and treatment platform for men’s issues, raised a £5 million seed round earlier this month from Felix Capital, Cherry Ventures and Cassius Capital.

    It’s clear that VCs have woken up to the opportunity to disrupt fertility with tech-enabled solutions to age-old issues, and now entrepreneurs passionate about helping men broach sensitive topics, from infertility to erectile dysfunction to hair loss and more, are able to gain ground.

    Here’s to more funding for women’s health businesses, which are in dire need of innovation, too.


    Source: Tech Crunch Startups | Dadi brings in M to democratize sperm storage

    World News

    Even some Republicans balk as Trump targets US spy chiefs – CNN

    January 31, 2019
    1. Even some Republicans balk as Trump targets US spy chiefs  CNN
    2. Trump needs intervention on intelligence, Schumer writes in letter to Coats  Fox News
    3. Trump Calls Intelligence Officials ‘Naive’ After They Contradict Him  The New York Times
    4. Trump says the intelligence community is wrong. Actually, he is.  The Washington Post
    5. Second Trump-Kim summit risks US credibility | TheHill  The Hill
    6. View full coverage on Google News

    Source: Google News | Even some Republicans balk as Trump targets US spy chiefs – CNN

    Startups

    Sencrop is a data platform to help farmers manage their lands

    January 31, 2019

    Meet Sencrop a French startup that wants to empower farmers using sensors, a data platform and a service marketplace. The company recently raised a $10 million funding round.

    The Series A round was led by Bpifrance with NCI Waterstart, Nord Capital and The Yield Lab also participating. Existing investors Demeter and Breega Capital also reinvested.

    If you’re a farmer and are getting started when it comes to leveraging data, Sencrop wants to be a one-stop shop for all your digital needs. The company sells connected stations that can measure temperature, humidity, rainfall, windspeed, etc.

    Each station costs between $340 and $570 (between €300 and €500) and you can have as many as you want. You can install the station yourself — it’s as easy as planting a post.

    After that, you pay a subscription to access the platform. It costs around $170 to $340 per year (€150 to €300). In addition to live readings of your sensors, Sencrop can help you predict the next steps.

    “On the other side of the platform, there are people broadcasting services to farmers,” co-founder and CEO Michael Bruniaux told me. “For instance, we can predict a disease and the farmer knows whether they need a product or not to prevent the disease.”

    You can imagine a full-fledged marketplace in the future. For instance, it could be a good way to subscribe to an insurance product, order seeds or contact companies and cooperatives corporations willing to buy your output.

    5,000 farmers, winemakers and arborists are already using the platform to monitor their farms. Most of them are currently based in Europe.

    Sencrop is slowly building a community of farmers by combining all data points together. For instance, if other people living not far from you are also using Sencrop, you’ll get better forecasts and insights on what to expect.

    The company first started with potato crops, vineyards and cereals. But now, you can find all kinds of profiles on Sencrop. Some farmers have a tiny piece of land of less than 100 acres while others have gigantic farms.

    With today’s funding round, Sencrop wants to scale the community and expand to new markets.


    Source: Tech Crunch Startups | Sencrop is a data platform to help farmers manage their lands

    World News

    Nintendo Switch will soon pass the N64 in lifetime sales – Engadget

    January 31, 2019
    1. Nintendo Switch will soon pass the N64 in lifetime sales  Engadget
    2. Nintendo cuts Switch sales forecast despite strong holiday season  The Verge
    3. Nintendo posts $958M profit but cuts Switch target despite strong Christmas sales  TechCrunch
    4. Switch sales strong, but Nintendo pulls back forecast  VentureBeat
    5. Nintendo trims Switch target as net sales near $10 billion for fiscal year  GamesIndustry.biz
    6. View full coverage on Google News

    Source: Google News | Nintendo Switch will soon pass the N64 in lifetime sales – Engadget

    Tech News

    Nintendo’s Mario Kart mobile game won’t launch until the summer

    January 31, 2019

    It’s been a long year for Nintendo fans waiting on Mario Kart Tour to come to mobile and, unfortunately, more patience is required after the game’s launch was moved back to this summer.

    Nintendo announced plans to bring the much-loved franchise to smartphones one year ago. It was originally slated to launch by the end of March 2019, but the Japanese games giant said today it is pushing that date back to summer 2019.

    The key passage sits within Nintendo’s latest earnings report, released today, which explains that additional time is needed “to improve [the] quality of the application and expand the content offerings after launch.”

    It’s frustrating but, as The Verge points out, you can refer to a famous Nintendo phrase if you are seeking comfort.

    Shigeru Miyamoto, who created the Mario and Zelda franchises, once remarked that “a delayed game is eventually good, but a rushed game is forever bad.”

    There’s plenty riding on the title — excuse the pun. Super Mario Run, the company’s first major game for the iPhone, showed its most popular IP has the potential to be a success on mobile, even though Mario required a $9.99 payment to go beyond the limited demo version. Mario Kart is the most successful Switch title to date, so it figures that it can be a huge smash on mobile if delivered in the right way.

    Source: Tech Crunch Mobiles | Nintendo’s Mario Kart mobile game won’t launch until the summer