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Daily Crunch: Facebook cuts off news-sharing in Australia



Facebook plays hardball in Australia, Epic Games expands its fight against Apple and New York’s attorney general sues Amazon. This is your Daily Crunch for February 17, 2021.

The big story: Facebook cuts off news-sharing in Australia

In response to a proposed law forcing internet platforms to pay news publishers directly, Facebook announced today that Australian users will not be able to share or view news links.

In its post, Facebook drew a direct contrast with the other big company targeted by the law, with managing director for Facebook Australia and New Zealand William Easton writing, “Google Search is inextricably intertwined with news and publishers do not voluntarily provide their content. On the other hand, publishers willingly choose to post news on Facebook, as it allows them to sell more subscriptions, grow their audiences and increase advertising revenue.”

The tech giants

Epic Games takes its Apple App Store fight to Europe — The Fortnite-maker has lodged a complaint with the bloc’s antitrust regulators.

NY AG sues Amazon over treatment of warehouse workers — The suit alleges that Amazon failed to provide adequate health and safety measures in two New York facilities, and that it unlawfully disciplined and fired employees who complained.

Google Maps users can now pay for parking or their transit fare right from the app — This is part of an expanded partnership with transportation software companies Passport and ParkMobile.

Startups, funding and venture capital

Locus Robotics has raised a $150M Series E — The round values the robotics company at $1 billion.

SpaceX reportedly raises $850M in new funding — This is a massive round by most standards, but not by SpaceX’s.

Jet co-founder Nate Faust is building a more sustainable e-commerce experience with Olive — Faust said it’s “crazy” that 25 years after the e-commerce industry began, it’s still relying on “single-use, one-way packaging.”

Advice and analysis from Extra Crunch

Dear Sophie: Tips for filing for a green card for my soon-to-be spouse — The latest edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.

With software markets getting bigger, will more VCs bet on competing startups? — Back in the days when inside rounds were bad, SPACs were jokes and crypto a fever dream, there was lots of noise about investors who declined to place competing bets in any particular startup market.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Everything else

Jamaica’s immigration website exposed thousands of travelers’ data — Immigration documents and COVID-19 lab results were left unprotected.

Reducing the spread of misinformation on social media: What would a do-over look like? — Ideas from the team at Irrational Labs.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

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Celebs like Rob Dyrdek, Joe Jonas, and Travis Barker are backing the nootropic nosh company, Mindright



It was only a matter of time before someone married the nascent nootropic supplements for brain health to the snack bar craze that continues to attract dollars and exits.

That time is apparently now, as Rob Dyrdek, the MTV-famous celebrity, pro-skater and entrepreneur, and Chris Bernard announce a new investment in the company they co-founded, Mindright, alongside celebrity investors including Joe Jonas, Travis Barker, and The Profit’s Marcus Lemonis. 

“When we started down the path of condition-specific food and beverage… we started doing a lot of research into the nootropics and adaptogens space,” said co-founder Bernard. Working with a food scientist who did not want to be named (which isn’t sketchy at all), Dyrdek and Bernard were introduced to several companies producing Ashwagandha, which the two had settled on as the new key ingredient in their snack bars.

Along with ginseng and cordyceps mushrooms, the company has a trifecta of new (and old) supplements that have taken the nutraceutical world by storm.

Bernard had initially approached the Dyrdek Machine group about another product, but the company was too far along and not something that Dyrdek felt passionate about backing. The story changed when Bernard returned with plans for this nootropic nosh.

“[Bernard] brought back the concept of the path of what’s evolved from functional foods and probiotics and collagen and sort of the mental health and adaptogen and the supplement world and said here’s how to merge these,” Dyrdek said of Bernard’s second pitch. “It was a home-run for us. Our process is supporting a solopreneur where we help shape and build the company together and provide the outsourced resources. We fund the development of the idea to go to the capital markets.”

So far, Drydek and his team have made 15 investments in consumer and entertainment businesses, and five of those business have since been acquired.

Most deals from Dyrdek Machine follow a similar trajectory. The firm becomes a co-founder and shares common stock and then negotiate a preferred equity investment for the capital infusion. Typically those deals will range from $250,000 to $500,000.

“We co-found it and we share that common share class and our first money is preferred and pick a valuation that balances out the deal,” Dyrdek said. “How much equity do we want to develop it with you is what we negotiate with that initial capital.”

Portrait of Rob Dyrdek, founder of Dyrdek Machine

Dyrdek describes his investment firm as founder-driven and market agnostic. “We want a well-rounded, multi-dimensional founder and then we look at the market and how do we evolve it into something that has a larger, broader appeal,” Dyrdek said. “Rather than chasing down nootropics, we found that ‘good mood’ was the important thing to the consumer base. That’s why we drove ‘Good mood superfood.’”

Bernard’s faith in Dyrdek’s ability to move the business forward has been proven in the evolution of other companies in the firm’s portfolio. Dyrdek pointed to Outstanding Foods, another investment, which he said had recently closed a $10 million round at a $100 million valuation. Another startup in the portfolio, Momentous, a supplement manufacturer, also closed on a big round recently after raising $5 million in 2019, Dyrdek said.

For Mindright, Dyrdek’s involvement brought in other celebrity names once they tried the product. The company counts Joe Jonas and Travis Barker among its seed investors.

“They were excited to get involved in this because they believed in what we took the time to create,” Bernard said. 

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The path forward for essential workers



Gig workers and warehouse workers have become essential in a pandemic-ravaged economy. In California, a law went into effect earlier this year that makes gig workers independent contractors. Meanwhile, Amazon warehouse workers in Alabama are actively seeking to form a union to ensure better protections at the workplace.

At TC Sessions: Justice, I spoke with Gig Workers Collective co-founder and organizer Vanessa Bain, The Congress of Essential Workers founder and former Amazon warehouse worker Christian Smalls and National Council for Occupational Safety and Health Co-Executive Director Jessica E. Martinez about what’s next for gig workers and tech’s contractor workforce, and what battles lie ahead for these essential workers.

On the Amazon union drive

Amazon warehouse workers in Bessemer, Alabama are in the midst of a historic union drive. Smalls, who was fired from his job at an Amazon warehouse in Staten Island last year after speaking out about the lack of personal protective equipment, told me he recently spent a few days in Bessemer.

The building opened up when Coronavirus started. When New York City became the epicenter, that’s when Bessemer facility opened up. So the union got a head start on talking to workers. So that’s a gem for anybody or any union that plans on trying to unionize the building — that you have a facility in your community that’s about to open up, when opening, that’s the best time to connect with workers. That’s what happened last year. And as a result, the workers had seen what happened to the workers that were unprotected and they don’t want that. They want better for themselves. And they rightfully desrve that, especially in Alabama. It’s a right to work state, a state with no state minimum, obviously a red state. So I think it’s a lot of intangibles against them. But these workers now see the window of opportunity for change systemically. (Timestamp: 4:40)

Meanwhile, President Biden recently came out in support of the unionizing efforts in Bessemer.

I would hope that he is a man of his word. He’s a pro-union guy. He ran his campaign off of that, saying he’s a union guy and unions need to be strong, and he supports unions all the way. It was powerful to see that the President, the man, the highest plateau in the country, support the union. (Timestamp: 13:11)

[…] But once again, like Vanessa said, I don’t put all my eggs in that basket either. I just want to hold him accountable. Make sure that, you. know, we see this all the way through to the end. Even if Alabama is not successful, if we were to try again, in other locations, other parts of the country, that we have the support of the highest power in the country, that is the most powerful thing that will resonate with workers. So it’s good to see that it’s happening now. (Timestamp: 14:17)

On the effects of Prop 22

Already, Prop 22 has affected industries outside of tech. In December, supermarket chain Albertsons began replacing delivery drivers with contractors and hundreds of employees in California were swapped for DoorDash workers, Bloomberg reported. Meanwhile, tech companies have spoken about implementing Prop 22-like legislation in other parts of the country. Martinez described how some California residents who voted to pass Prop 22 thought they were supporting workers for better access to rights.

And unfortunately, you have workers who have possibly died. We have a California rideshare driver who died from COVID-19 last month. His independent classification means his family will receive no workers’ compensation. That is a huge impact to workers and the reality of how it impacts day to day life for workers and in the midst of a pandemic. So I share that, because Prop 22 sets the tone, again, for what could happen nationally. (Timestamp: 17:00)

Meanwhile, Bain said she sees the passing of Prop 22 as a failure of “our entire structure of economy.”

And we have really allowed tech to run rampant under this pretense that somehow it’s innovative, and especially within the gig economy. I mean, it’s the opposite of innovative, right? Like it’s feudalism on your phone, right? It’s 1-800 dial listserv. So it’s like, they’re not doing anything new that justifies creating an entirely different classification of labor than existed before, which is what Prop 22 did, right? It literally created this category of marketplace contractor that retains neither the protections of an independent contractor nor an employee. And allowing, you know, companies to write their own laws in this way is a systemic failure. (Timestamp: 18:57)

On the PRO Act

There’s legislation in the U.S. Senate right now that aims to make it easier for workers to organize and form unions in the country. The Protecting the Right to Organize Act seeks to change labor laws in favor of giving workers more power.

Bain spoke about the importance of getting the PRO Act across the line in light of the passing of Prop 22 in California.

These things shouldn’t be at the mercy of who happens to be, you know, held to a position. These are things that should be codified and enshrined really in law. And things that should be consistent and stable protections that people can rely on and count on. (Timestamp: 20:22)

Martinez explained how the PRO Act aligns with the work she’s doing at COSH. The organization recently released a national agenda for worker safety and health, along with some recommendations.

We want stronger safety laws, tougher enforcement, including a mandatory emergency standard to prevent the spread of infectious disease. And again, this is federally so if there is an ETS or an emergency [temporary] standard pass, it applies all over and impacts all kinds of workers, stronger protections against retaliation. (Timestamp: 07:53)

Martinez added:

Employers will funnel resources to try to scare tactics to scare workers from organizing, demanding safer workplaces, job security, and so forth. [The agenda] also includes workers are included in all policy decisions. We believe strongly that workers, more than anyone, understand the job, know the solutions and controls to health and safety issues, and also equity and Inclusion to end the misclassification and better protections for temporary gig workers. Paid sick and family leave for workers also worker centered health protocols, including health for high risk workers and getting access to vaccines. And we want to confront the workplace effects of climate change. Finally, also prevent chemical catastrophes and harmful exposure. […] With that said, this is not working in isolation. It works in collaboration with laws, we’re hoping that will pass, such as the PRO Act, allowing workers to gain bargaining power when organizing, essentially giving them the ability to negotiate with the employer get access to benefits again, such as some job security paid sick leave workers comp and so forth. (Timestamp: 8:23)

You can read the entire transcript here.

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The rise of the tech workers union and what comes next



While not entirely non-existent, the union has been an elusive phenomenon in Silicon Valley. More recently, however, big names like Google and Kickstarter have taken key steps toward forming unions, as have smaller startups like Glitch, which made history this week by signing a collective bargaining agreement – the first team of software engineers to do so. Amazon warehouse workers in Alabama, meanwhile, are currently on the cusp of forming their own historic union. In this panel from TC Sessions: Justice, we discuss how we got here, what comes next and steps tech employees can take.

On Why Now?

As has been the case with management throughout history, tech companies have long fought tooth and nail against labor organizing. Over the course of the last couple of years, however, we may have seen something of a critical mass that could represent the beginnings of a sea change for the industry.

Redwine: It seems like tech workers are reacting to some of the maturity of tech and the expansion of the platforms that we all work on, and also more worker instability in general in the US, especially. I think it’s sort of a response that workers are becoming more formal in their organizing efforts. (Timestamp: 1:08)

Parul Koul (Google):

Koul: A variety of tactics and strategies have been tried, and we’ve been able to analyze the successes and failures of past movements and arrive at a point where we’ve developed enough institutional and organizational knowledge to try something new and – in some ways – more complex. (Timestamp: 3:25)

On Whether The Pandemic Will Spur More Organizing

Covid-19 has radically transformed where – and how – we work. It’s upended many industries and cause millions to lose jobs. Could the pandemic prove to be yet another inflection point for a growing movement.

Koul: In our case, what we saw was companies moving to work from home and then, in certain categories of employees, not really receiving the same benefits […] whether it’s a stipend to buy equipment or even having the benefit from working from home […] We also saw a mass movement and social and political protests against police brutality erupt right in the middle of the pandemic. For me, and many other organizers at Google, it really galvanized us to do something and respond to that in the streets and in our own way. (Timestamp: 6:56)

On How – or if – Unions Can Protect Against Layoffs

For many industries, layoffs have become all but an inevitability during the pandemic. In a number of the aforementioned cases, they’ve continued even in the wake of employee unionizing. Ultimately, how much protection does a union give workers against layoffs?

Reckers: Kickstarter won its union on February 18, 2020. The pandemic hit in mid-March. The company announced that they were going to have pretty massive layoffs in early-April. That was a very difficult time. We looked at the numbers and did see that a number of the people they were proposing to layoff were advocates for the union or union members. That was very hard to stomach. What happens, though – and where the union comes into play – is that the company was not able to just lay people off like that. Especially under the terms that they wanted to impose unilaterally, without any consultation with staff. The difference was that when the company proposed these layoffs, because there was already a union in place, Kickstarter had to negotiate with the group of employees about the terms of that layoff. (Timestamp: 9:10)

On How to Get Started

First steps toward unionization are often difficult in an environment where organizing is frowned upon management. Many early conversations happen after hours and off-the-clock for fear of repercussion. This can be doubly difficult in an environments like white collar workers tech company, where some employees don’t tacitly understand the benefits of organizing.

Reckers: You can best support each other by getting into conversations with your coworkers and understanding what’s been going on with them. The first question I often get from people is how to first start having conversations. I think that’s a challenge, especially since we’re not taught how to do that. But starting a conversation about what their experiences have been like at the organization or company, how long they’ve been there, how has there changed? What did they want to see when they were hired? What sort of workplace were they looking for? And how can we make sure that we have some way of achieving that? (Timestamp: 24:04)

On Whether Expressions of Support From Management Are Always Positive

Management often adopts the narrative that they support unions following hard fought battles. In the wake of support from certain tech executives and political leaders like Joe Biden, the question arises about whether such sentiments can ultimately have negative repercussions for organizing.

Redwine: First and foremost, it’s really important to remember that the things that people in power say do not matter. All of the power that you have doesn’t come from people at the top giving it to you. It comes from linking arms with the people next to you and taking that power and influence for yourself. (Timestamp: 28:27)

You can read the entire transcript here.

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