Extra Crunch offers members the opportunity to tune into conference calls led and moderated by the TechCrunch writers you read every day. This week, TechCrunch’s Kate Clark sat down with Eric Yuan, the founder and CEO of video communications startup Zoom, to go behind the curtain on the company’s recent IPO process and its path to the public markets.
Since hitting the trading desks just a few weeks ago, Zoom stock is up over 30%. But the Zoom’s path to becoming a Silicon Valley and Wall Street darling was anything but easy. Eric tells Kate how the company’s early focus on profitability, which is now helping drive the stock’s strong performance out of the gate, actually made it difficult to get VC money early on, and the company’s consistent focus on user experience led to organic growth across different customer bases.
Eric: I experienced the year 2000 dot com crash and the 2008 financial crisis, and it almost wiped out the company. I only got seed money from my friends, and also one or two VCs like AME Cloud Ventures and Qualcomm Ventures.
nd all other institutional VCs had no interest to invest in us. I was very paranoid and always thought “wow, we are not going to survive next week because we cannot raise the capital. And on the way, I thought we have to look into our own destiny. We wanted to be cash flow positive. We wanted to be profitable.
nd so by doing that, people thought I wasn’t as wise, because we’d probably be sacrificing growth, right? And a lot of other companies, they did very well and were not profitable because they focused on growth. And in the future they could be very, very profitable.
Eric and Kate also dive deeper into Zoom’s founding and Eric’s initial decision to leave WebEx to work on a better video communication solution. Eric also offers his take on what the future of video conferencing may look like in the next five to 10 years and gives advice to founders looking to build the next great company.
For access to the full transcription and the call audio, and for the opportunity to participate in future conference calls, become a member of Extra Crunch. Learn more and try it for free.
Kate Clark: Well thanks for joining us Eric.
Eric Yuan: No problem, no problem.
Kate: Super excited to chat about Zoom’s historic IPO. Before we jump into questions, I’m just going to review some of the key events leading up to the IPO, just to give some context to any of the listeners on the call.
The continued presence of a U.K. far-right activist on YouTube’s platform has been raised by the deputy leader of the official opposition during ministerial questions in the House of Commons today.
Labour’s Tom Watson put questions to the secretary of state for digital, Jeremy Wright, regarding Stephen Yaxley-Lennon’s use of social media for targeted harassment of journalists.
This follows an incident on Monday night when Yaxley-Lennon used social media tools to live-stream himself banging on the doors and windows of a journalist’s home in the middle of the night.
“Every major social media platform other than YouTube has taken down Stephen Yaxley-Lennon’s profile because of his hateful conduct,” said Watson, before recounting how the co-founder of the Far Right English Defence League — who goes by the made-up name “Tommy Robinson” on social media — used social media live-streaming tools to harass journalist Mike Stuchbery on Monday night.
Stuchbery has since written about the incident for Independent.
A journalist intimidated at home at 5am, live streamed. Women colleagues facing rape and death threats installing panic buttons. The torrent of online abuse undermines democracy and free speech. We must act to stop the online world turning into a cesspit of hate. pic.twitter.com/6G4fSjEue7
— Tom Watson (@tom_watson) March 7, 2019
As we reported on Monday, Facebook removed the live stream for violating its policies after it was reported but not before Stuchbery had received a flood of abusive messages from other Facebook users who were watching the stream online.
Yaxley-Lennon appears to have been able to circumvent Facebook’s ban on his own account to live stream his intimidation of Stuchbery via Facebook Live by using another Facebook account with a fake name (which the company appears to have since suspended).
Following the incident, Stuchbery has reported receiving physical hate mail to his home address, which Yaxley-Lennon gave out during the live stream (an intimidation tactic that’s known as doxxing). He has also said he’s received further abuse online.
“Does the secretary of state think that it is right that YouTube, and the parent company Alphabet, continues to give this man a platform?” asked Watson, after highlighting another vlog Yaxley-Lennon has since uploaded to YouTube in which he warns other journalists “to expect a knock at the door.”
Wright responded by saying that “all internet companies, all platforms for this kind of speech need to take their responsibilities seriously.”
“I hope that YouTube will consider this very carefully,” he told the House of Commons. “Consider what [Yaxley-Lennon] has said. What I have said, and reconsider their judgement.”
“We all believe in freedom of speech. But we all believe too that that freedom of speech has limits,” Wright added. “And we believe that those who seek to intimidate others, to potentially of course break the law… that is unacceptable. That is beyond the reach of the type of freedom of speech that we believe should be protected.”
We’ve reached out to YouTube for comment.
Stephen Yaxley-Lennon was banned by Facebook last month for repeat violations of its policies on hate speech. Twitter banned Yaxley-Lennon a full year ago.
But he remains active on YouTube — where his channel has more than 350,000 subscribers.
The company has resisted calls to shutter his account, claiming the content Yaxley-Lennon posts to its platform is different to content he has posted elsewhere and thus he has not broken any of its rules. (Though YouTube did demonetize videos on his channel in January, saying they violated its ad policies.)
In a follow-up question, Watson raised the issue of online harassment more widely — asking whether the government would be including measures “to prevent hate figures, extremists and their followers from turning the online world into a cesspit of hate” in its forthcoming white paper on social media and safety, which it’s due to publish this winter — and thereby tackle a culture of hate and harassment online that he said is undermining democracy.
Wright said he would “consider” Watson’s suggestion, though he stressed the government must protect the ability for people to carry out robust debate online — and “to discuss issues that are sometimes uncomfortable and certainly controversial.”
But he went on to reiterate his earlier point that “no freedom of speech can survive in this country if we do not protect… people’s ability to feel free to say what they think, free of intimidation, free of the threat of violence.”
“Those who engage in intimidation or threats of violence should not find succour either online or anywhere else,” the minister added.
YouTube’s own community guidelines prohibit “harassment and cyberbullying,” so its continued silence on Yaxley-Lennon’s misuse of its tools does look inconsistent. (YouTube previously banned the InfoWars conspiracy theorist Alex Jones for violating its policies, for example, and there’s more than a passing resemblance between the two “hate preachers”).
Moreover, as Watson noted in parliament, Yaxley-Lennon’s most recent video contains a direct threat to doorstep and doxx journalists who covered his harassment of Stuchbery. The video also contains verbal abuse targeted at Stuchbery. However, YouTube told us the video does not violate its policies.
In one of the live streams recorded outside Stuchbery’s home, Yaxley-Lennon can also be heard making allegations about Stuchbery’s sexual interests that the journalist has described as defamatory.
YouTube previously declined to make a statement about Yaxley-Lennon’s continued presence on its platform. It has not responded to our repeated requests for follow-up comment about the issue since Monday.
We’ll update this post if it does provide a statement following the government’s call to rethink its position on giving Yaxley-Lennon a platform.
This post was updated with information from YouTube regarding Yaxley-Lennon’s latest video.
Fredrik Thomassen as a consultant used to have the resources to offload the annoying project tasks — like making PowerPoint presentations — but now that it’s gone, he and his team wanted to make that available for everyone.
Now the startup, called Konsus, wants to turn that around even faster. Konsus is a design marketplace where companies can quickly post design projects that they need for various parts of their jobs, like presentations, and designers can pick up those jobs and submit their work back — a task that could take up a lot of unnecessary time for an employee that might be better spent working on other parts of their job. Konsus said it is compressing that even further by now looking to provide a 12-hour turnaround for those companies. The company launched out of Y Combinator in 2016.
“[Employees] want to be valuable and spend time on core tasks,” Thomassen said. “The average knowledge worker, depending on various specifics, spends around 40 percent of that time on non-core tasks that should be outsourced. That’s the 40 percent we’re going after, and people quite readily understand it. Some companies have in-house design agencies and so on, and they are 3 or 4 times as expensive as we are, and they typically want to work on these larger or more grand projects and don’t want to work on the small projects that range from 10 hours to 15 hours. Most of the projects we do are these small, nominal projects that people would have had to do themselves.”
Konsus hires account managers and project managers handling the relationships with the customers to ensure that they’re getting the quality they need when they are posting projects like PowerPoint presentations onto the site. But Thomassen also said there are plenty of examples of those firms finding designers and contractors that they’ve decided to bring on full-time, and he’s fine with the startup being seen as a springboard for contractors that want to polish their skills for working with western clients — and even end up with a full-time job after that. A lot of the designers are coming in from eastern Europe, southeast Asia and other parts of the world that aren’t necessarily on the radar of these western firms.
Like many other modern services and marketplaces, Konsus hopes to come in at the bottom of a company and work its way up. One person or a team from a larger corporation will discover it, start using it and then eventually the startup might track that firm down and start talking about a custom team and dedicated emails. Then the outsourcers working for that firm goes through a background check, signs confidentiality agreements and goes through training on corporate branding material. Konsus’ revenue comes partly from subscriptions and people pre-paying to get a team, and the other half a pay-as-you-go model where firms get a rate and Konsus takes a commission.
“If you look at [big consulting firms], they have a similar solution as we have, and you can get support for all kinds of services — data entry, PowerPoint, various graphic design tasks — that make life much, much easier,” Thomassen said. “You go home from work and then you get it back in the morning, it becomes part of your workflow. That’s what we wanted to build for everyone else. Freelancers come to us from all corners of the world, they apply on our website, and we have our own recruiter work with them. We get around 5,000 to 10,000 people who apply, and we accept 10-20 depending on how many we need. The bar is extremely high.”
Of course, given that these are the kinds of tasks that firms might outsource without such a platform, Konsus has to potentially deal with larger consulting firms like Accenture, and there are plenty of startups looking to create an online labor marketplace that might not be targeting design just yet. But as those platforms start to put together a lot of potential customers, they’ll likely start asking for tools like Konsus — which means the company is going to have to figure out ways to outcompete early.
The company has raised $ 1.7 million from Sam Altman, the Slack Fund, Acequia Capital, Paul Buchheit, Geoff Ralston, John Collison and Liquid2 Ventures.
Instagram has taken down content posted by Russian opposition leader Aleksei Navalny under pressure from a government agency, while YouTube has yet to do so. Navalny and others have criticized Instagram for complying to what they call a politically motivated move to silence him. Read More
Social – TechCrunch
Back before humans invented chairs we humans stood a lot. Now, almost 100 years later, we tend to sit. However, some people still stand. For those people there is the TerraMat. The TerraMat is like a cat toy for you feet. It features a number of little bumps and ridges designed to let you stretch, exercise and massage your feet while you’re standing. It was created by two… Read More
Many of us don’t have the time to always be checking our AdWords accounts.
Google Analytics and Google Website Optimizer have merged. Now Google Website Optimizer, a free A/B and Multi-variate testing tool, is available in Google Analytics via Experiments link under Content Section (see image below).
Alcatel-Lucent is releasing a methodology for APIs that it is making available through Creative Commons. It is part of a new consulting practice the telecommunications company has established to help its service partners and enterprise customers develop, deploy and maintain APIs.
Alcatel-Lucent has made APIs a focal aspect of its business by offering them to carriers and other service providers. Through this work, it has provided the company with enough experience to know what issues companies face when they embark on an API strategy. They are packaging that experience into the methodology and its consulting service. Look to the Alcatel-Lucent blog for updates about the methodology.
- A Likely Chinese Hacker Crew Targeted 10 Phone Carriers to Steal Metadata
- Video-Marketing: Connecting & Conversion with The Future Consumer + 40 more sessions
- Facebook and eBay told to tackle trade in fake reviews
- Equity transcribed: Slack’s IPO, the VCs behind Facebook Libra, founder salaries and trouble in scooter-land
- New Open Jobs at Savings.Com, Hanapin Marketing, Lewis Media Partners and ArcBest