Twitter says bug may have exposed some direct messages to third-party developers

Twitter said that a “bug” sent user’s private direct messages to third-party developers “who were not authorized to receive them.”

The social media giant began warning users Friday of the possible exposure with a message in the app.

“The issue has persisted since May 2017, but we resolved it immediately upon discovering it,” the message said, which was posted on Twitter by a Mashable reporter. “Our investigation into this issue is ongoing, but presently we have no reason to believe that any data sent to unauthorized developers was misused.”

A spokesperson told TechCrunch that it’s “highly unlikely” that any communication was sent to the incorrect developers at all, but informed users out of an abundance of caution.

Twitter said in a notice that only messages sent to brand accounts — like airlines or delivery services — may be affected. In a separate blog post, Twitter said that it’s investigation has confirmed “only one set of technical circumstances where this issue could have occurred.”

The bug was found on September 10, but took almost two weeks to inform users.

“If your account was affected by this bug, we will contact you directly through an in-app notice and on twitter.com,” said the advice.

The company said that the bug affected less than 1 percent of users on Twitter. The company had 335 million users as of its latest earnings release.

“No action is required from you,” the message said.

It’s the second data-related bug this year. In May, the company said it mistakenly logged users’ passwords in plaintext in an internal log, used by Twitter staff. Twitter urged users to change their password.

Critic’s Notebook: R.I.P., the Celebrity Profile

The famous are saying less (if anything at all), granting interviews to their friends and sharing on social media. What’s being lost? Almost everything.

Base10’s debut fund is the largest-ever for a Black-led VC firm

Adeyemi Ajao (above left), the co-founder and managing director of Base10 Partners, was surprised to hear his firm’s $137 million fund was the largest debut to date for a black-led venture capital firm.

He and his co-founder — managing director TJ Nahigian (above right) — found out from none other than their fund’s own limited partners, who told them they should seek out institutions looking to invest in diverse fund managers.

“Oh man, I was like, ‘yeah, I know I’m black but so what?’” Ajao told TechCrunch. “I can be a little bit naive about these things until they become extremely apparent.”

Ajao is African, European, Latin, and now, having spent a decade in San Francisco, American. Growing up in between Spain and Nigeria, it wasn’t until landing in the Bay Area that he was forced to confront a social dynamic absent in his international upbringing: racial inequality and being black in America.

“The U.S. is pretty different about those things,” he said. “I was surprised when at Stanford I got an invitation to a dinner of the Black Business Student Association. I’m like, ‘why would there be a Black Business Student Association? That’s so weird?’ It took me a while, a good, good while, to be like ok, here there’s actually a really entrenched history of a clash and people being treated differently day-to-day.”

In the business of venture capital, the gap in funding for black founders and other underrepresented entrepreneurs is jarring. There’s not a lot of good data out there to illustrate the gap, but one recent study by digitalundivided showed the median amount of funding raised by black women founders is $0, because most companies founded by black women receive no money.  

Ajao certainly hadn’t thought the color of his skin would impact his fundraising process, and, in retrospect, he doesn’t think it did. Still, he recognizes that pattern recognition and implicit bias continue to be barriers for diverse founders and investors.

Now, he plans to leverage his unique worldview to identify the next wave of unicorns others VCs are missing. Base10 doesn’t have a diversity thesis per say but it plans to invest in global companies fixing problems that affect 99 percent of the world, not the Silicon Valley 1 percent. 

I sat down with Ajao in Base10’s San Francisco office to discuss his background, the firm’s investment focus and the importance of looking beyond the Silicon Valley bubble.

Automation of the real economy

Base10 is writing seed and Series A checks between 500,000 and $5 million. It’s completed 10 investments so far, including in Brazilian mobility startups Grin and Yellow, which closed a $63 million Series A last week.

The firm is looking for entrepreneurs who have spent years in their industries, whether that be agriculture, logistics, waste management, construction, real estate or otherwise, and are trying to solve problems they’ve experienced first-hand.

“We are much more likely to fund someone that actually worked for eight years on a construction site and was like, ‘you know what, I think this could be done better and maybe I can make my life easier with automation,’ rather than a Ph.D. in AI out of the Stanford lab that says ‘I think construction is inefficient and it can be done without people,’” Ajao said. “[We are] kind of flipping the paradigm in that sense.”

The firm has also backed birth control delivery startup The Pill Club, on-demand staffing company Wonolo and Tokensoft, a platform for compliant token sales. 

Beyond the bubble

Ajao and Nahigian have a mix of operational and investing experience.

On the VC side, Nahigian, a Los Angeles native, spent seven years investing via Summit Partners, Accel, then Coatue Management. In 2014, he co-founded Jobr, a mobile job platform that was later acquired by Monster, where he became the VP of product and head of mobile.

Ajao was most recently a VP at Workday where he led the launch of Workday Ventures, a VC fund focused on AI for enterprise software. He joined Workday after the company acquired his startup, Identified, in what was his second successful exit to date. Before that, he co-founded Spanish social media company Tuenti, which Telefonica paid $100 million for in 2010

He also helped incubate and launch Cabify, a Spanish ride-hailing company based in Madrid. The Uber competitor raised $160 million at a $1.4 billion valuation earlier this year.

Ajao was Nahigian’s first investor in Jobr, which was also backed by Tim Draper, Redpoint Ventures, Eniac Ventures, Lowercase Capital and more. The pair stayed in touch, discussed startups and potential deals, ultimately deciding to go into business together. 

They agreed Base10 should support companies solving real problems and that as investors, they needed to be able to see beyond the Silicon Valley bubble.

Do we feel a little bit of a responsibility? Like … ‘hey, you should help Silicon Valley be more aware of global issues.’ Yes,” Ajao said. “I try to spend a lot of time meeting with founders that either look different or are trying to make it here and I try to be super open about my journey and my travels.”

His piece of advice to other VCs is one that countless diverse founders and investors have been shouting at the top of their lungs: Invest in underrepresented founders, it’s just good business.

“If you have the same company and one is run by a female and one is run by a male, and it’s the same stuff, you should probably invest in the female, because that person probably had a harder time getting there,” he said. “It’s actually good business. I believe that.”

“The more open and comfortable we get about talking about these things, the better it is for both parties.”

Mobile social network Path, once a challenger to Facebook, is closing down

It’s that time again, folks, time to say goodbye to a social media service from days past.

Following the shuttering of Klout earlier this year, now Path, the one-time rival to Facebook, is closing its doors, according to an announcement made today. (Yes, you may be surprised to learn that Path was still alive.)

The eight-year-old service will close down in one month — October 18 — but it will be removed from the App Store and Google Play on October 1. Any remaining users have until October 18 to download a copy of their data, which can be done here.

Path was founded by former Facebook product manager Dave Morin, and ex-Napster duo Dustin Mierau and Shawn Fanning . The company burst onto the scene in 2010 with a mobile social networking app that was visually pleasing and — importantly — limited to just 50 friends per user. That positioned it as a more private alternative to Facebook with some additional design bells and whistles, although the friend restriction was later lifted and then removed altogether.

At its peak, the service had around 15 million users and it was once raising money at a valuation of $500 million. Indeed, Google tried to buy it for $100 million when it was just months old. All in all, the startup raised $55 million from investors that included top Silicon Valley names like Index, Kleiner Perkins and Redpoint.

Facebook ultimately defeated Path, but it stole a number of features from its smaller rival

But looks fade, and social media is a tough place when you’re not Facebook, which today has over 1.5 billion active users and aggressively ‘borrowed’ elements from Path’s design back in the day.

Path’s road took a turn for the worse and the much-hyped startup lost staff, users and momentum (and user data). The company tried to launch a separate app to connected businesses and users — Path Talk — but that didn’t work and ultimately it was sold to Korea’s Kakao — a messaging and internet giant — in an undisclosed deal in 2015. Kakao bought the app because it was popular in Indonesia, the world’s fourth-largest population where Path had four million users, and the Korean firm was making a major play for that market, which is Southeast Asia’s largest economy and a growing market for internet users.

However, Path hasn’t kicked on in the last three years and now Kakao is discarding it altogether.

“It is with deep regret that we announce that we will stop providing our beloved service, Path. We started Path in 2010 as a small team of passionate and experienced designers and engineers. Over the years we have tried to lay out our mission: through technology and design we aim to be a source of happiness, meaning, and connection to our users,” the company said in a statement.

Thanks Aulia

Facebook is hiring a director of human rights policy to work on “conflict prevention” and “peace-building”

Facebook is advertising for a human rights policy director to join its business, located either at its Menlo Park HQ or in Washington DC — with “conflict prevention” and “peace-building” among the listed responsibilities.

In the job ad, Facebook writes that as the reach and impact of its various products continues to grow “so does the responsibility we have to respect the individual and human rights of the members of our diverse global community”, saying it’s:

… looking for a Director of Human Rights Policy to coordinate our company-wide effort to address human rights abuses, including by both state and non-state actors. This role will be responsible for: (1) Working with product teams to ensure that Facebook is a positive force for human rights and apply the lessons we learn from our investigations, (2) representing Facebook with key stakeholders in civil society, government, international institutions, and industry, (3) driving our investigations into and disruptions of human rights abusers on our platforms, and (4) crafting policies to counteract bad actors and help us ensure that we continue to operate our platforms consistent with human rights principles.

Among the minimum requirements for the role, Facebook lists experience “working in developing nations and with governments and civil society organizations around the world”.

It adds that “global travel to support our international teams is expected”.

The company has faced fierce criticism in recent years over its failure to take greater responsibility for the spread of disinformation and hate speech on its platform. Especially in international markets it has targeted for business growth via its Internet.org initiative which seeks to get more people ‘connected’ to the Internet (and thus to Facebook).

More connections means more users for Facebook’s business and growth for its shareholders. But the costs of that growth have been cast into sharp relief over the past several years as the human impact of handing millions of people lacking in digital literacy some very powerful social sharing tools — without a commensurately large investment in local education programs (or even in moderating and policing Facebook’s own platform) — has become all too clear.

In Myanmar Facebook’s tools have been used to spread hate and accelerate ethic cleansing and/or the targeting of political critics of authoritarian governments — earning the company widespread condemnation, including a rebuke from the UN earlier this year which blamed the platform for accelerating ethnic violence against Myanmar’s Muslim minority.

In the Philippines Facebook also played a pivotal role in the election of president Rodrigo Duterte — who now stands accused of plunging the country into its worst human rights crisis since the dictatorship of Ferdinand Marcos in the 1970s and 80s.

While in India the popularity of the Facebook-owned WhatsApp messaging platform has been blamed for accelerating the spread of misinformation — leading to mob violence and the deaths of several people.

Facebook famously failed even to spot mass manipulation campaigns going on in its own backyard — when in 2016 Kremlin-backed disinformation agents injected masses of anti-Clinton, pro-Trump propaganda into its platform and garnered hundreds of millions of American voters’ eyeballs at a bargain basement price.

So it’s hardly surprising the company has been equally naive in markets it understands far less. Though also hardly excusable — given all the signals it has access to.

In Myanmar, for example, local organizations that are sensitive to the cultural context repeatedly complained to Facebook that it lacked Burmese-speaking staff — complaints that apparently fell on deaf ears for the longest time.

The cost to American society of social media enabled political manipulation and increased social division is certainly very high. The costs of the weaponization of digital information in markets such as Myanmar looks incalculable.

In the Philippines Facebook also indirectly has blood on its hands — having provided services to the Duterte government to help it make more effective use of its tools. This same government is now waging a bloody ‘war on drugs’ that Human Rights Watch says has claimed the lives of around 12,000 people, including children.

Facebook’s job ad for a human rights policy director includes the pledge that “we’re just getting started” — referring to its stated mission of helping  people “build stronger communities”.

But when you consider the impact its business decisions have already had in certain corners of the world it’s hard not to read that line with a shudder.

Citing the UN Guiding Principles on Business and Human Rights (and “our commitments as a member of the Global Network Initiative”), Facebook writes that its product policy team is dedicated to “understanding the human rights impacts of our platform and to crafting policies that allow us both to act against those who would use Facebook to enable harm, stifle expression, and undermine human rights, and to support those who seek to advance rights, promote peace, and build strong communities”.

Clearly it has an awful lot of “understanding” to do on this front. And hopefully it will now move fast to understand the impact of its own platform, circa fifteen years into its great ‘society reshaping experience’, and prevent Facebook from being repeatedly used to trash human rights.

As well as representing the company in meetings with politicians, policymakers, NGOs and civil society groups, Facebook says the new human rights director will work on formulating internal policies governing user, advertiser, and developer behavior on Facebook. “This includes policies to encourage responsible online activity as well as policies that deter or mitigate the risk of human rights violations or the escalation of targeted violence,” it notes. 

The director will also work with internal public policy, community ops and security teams to try to spot and disrupt “actors that seek to misuse our platforms and target our users” — while also working to support “those using our platforms to foster peace-building and enable transitional justice”.

So you have to wonder how, for example, Holocaust denial continuing to be being protected speech on Facebook will square with that stated mission for the human rights policy director.

At the same time, Facebook is currently hiring for a public policy manager in Francophone, Africa — who it writes can “combine a passion for technology’s potential to create opportunity and to make Africa more open and connected, with deep knowledge of the political and regulatory dynamics across key Francophone countries in Africa”.

That job ad does not explicitly reference human rights — talking only about “interesting public policy challenges… including privacy, safety and security, freedom of expression, Internet shutdowns, the impact of the Internet on economic growth, and new opportunities for democratic engagement”.

As well as “new opportunities for democratic engagement”, among the role’s other listed responsibilities is working with Facebook’s Politics & Government team to “promote the use of Facebook as a platform for citizen and voter engagement to policymakers and NGOs and other political influencers”.

So here, in a second policy job, Facebook looks to be continuing its ‘business as usual’ strategy of pushing for more political activity to take place on Facebook.

And if Facebook wants an accelerated understanding of human rights issues around the world it might be better advised to take a more joined up approach to human rights across its own policy staff board, and at least include it among the listed responsibilities of all the policy shapers it’s looking to hire.

Golden Gate Ventures closes new $100M fund for Southeast Asia

Singapore’s Golden Gate Ventures has announced the close of its newest (and third) fund for Southeast Asia at a total of $100 million.

The fund hit a first close in the summer, as TechCrunch reported at the time, and now it has reached full capacity. Seven-year-old Golden Gate said its LPs include existing backers Singapore sovereign fund Temasek, Korea’s Hanwha, Naver — the owner of messaging app Line — and EE Capital. Investors backing the firm for the first time through this fund include Mistletoe — the fund from Taizo Son, brother of SoftBank founder Masayoshi Son — Mitsui Fudosan, IDO Investments, CTBC Group, Korea Venture Investment Corporation (KVIC), and Ion Pacific.

Golden Gate was founded by former Silicon Valley-based trio Vinnie Lauria, Jeffrey Paine and Paul Bragiel . It has investments across five markets in Southeast Asia — with a particular focus on Indonesia and Singapore — and that portfolio includes Singapore’s Carousell, automotive marketplace Carro, P2P lending startup Funding Societies, payment enabler Omise and health tech startup AlodokterGolden Gate’s previous fund was $60 million and it closed in 2016.

Some of the firm’s exits so far include the sale of Redmart to Lazada (although not a blockbuster), Priceline’s acquisition of WoomooLine’s acquisition of Temanjalan and the sale of Mapan (formerly Ruma) to Go-Jek. It claims that its first two funds have had distributions of cash (DPI) of 1.56x and 0.13x, and IRRs of 48 percent and 29 percent, respectively.

“When I compare the tech ecosystem of Southeast Asia (SEA) to other markets, it’s really hit an inflection point — annual investment is now measured in the billions. That puts SEA on a global stage with the US, China, and India. Yet there is a youthfulness that reminds me of Silicon Valley circa 2005, shortly before social media and the iPhone took off,” Lauria said in a statement.

A report from Google and Temasek forecasts that Southeast Asia’s digital economy will grow from $50 billion in 2017 to over $200 billion by 2025 as internet penetration continues to grow across the region thanks to increased ownership of smartphones. That opportunity to reach a cumulative population of over 600 million consumers — more of whom are online today than the entire U.S. population — is feeding optimism around startups and tech companies.

Golden Gate isn’t alone in developing a fund to explore those possibilities, there’s plenty of VC activity in the region.

Some of those include Openspace, which was formerly known as NSI Ventures and just closed a $135 million fund, Qualgro, which is raising a $100 million vehicle and Golden Equator, which paired up with Korea Investment Partners on a joint $88 million fund. Temasek-affiliated Vertex closed a $210 million fund last year and that remains a record for Southeast Asia.

Golden Gate also has a dedicated crypto fund, LuneX, which is in the process of raising $10 million.

Alibaba goes big on Russia with joint venture focused on gaming, shopping and more

Alibaba is doubling down on Russia after the Chinese e-commerce giant launched a joint venture valued at around $2 billion with one of the country’s leading internet companies.

Russia is said to have over 70 million internet users, around half of its population, with countless more attracted from Russian-speaking neighboring countries. The numbers are projected to rise as, like in many parts of the world, the growth of smartphones brings more people online. Now Alibaba is moving in to ensure it is well placed to take advantage.

Mail.ru, the Russia firm that offers a range of internet services including social media, email and food delivery to 100 million registered users, has teamed up with Alibaba to launch AliExpress Russia, a JV that they hope will function as a “one-stop destination” for communication, social media, shopping and games. Mail.ru backer MegaFon, a telecom firm, and the country’s sovereign wealth fund RDIF (Russian Direct Investment Fund) have also invested undisclosed amounts into the newly-formed organization.

To recap: Alibaba — which launched its AliExpress service in Russia some years ago — will hold 48 percent of the business, with 24 percent for MegaFon, 15 percent for Mail.ru and the remaining 13 percent take by RDIF. In addition, MegaFon has agreed to trade its 10 percent stake in Mail.ru to Alibaba in a transaction that (alone) is worth around $500 million. That would give the joint venture a valuation of around $2 billion.

That figure, however, doesn’t include other investments in the venture.

“The parties will inject capital, strategic assets, leadership, resources and expertise into a joint venture that leverages AliExpress’ existing businesses in Russia,” Alibaba explained on its Alizila blog.

Alibaba looks to have picked its horse in Russia’s internet race: Mail.ru [Image via KIRILL KUDRYAVTSEV/AFP/Getty Images]

The strategy, it seems, is to pair Mail.ru’s consumer services with AliExpress, Alibaba’s international e-commerce marketplace. That’ll allow Russian consumers to buy from AliExpress merchants in China, but also overseas markets like Southeast Asia, India, Turkey (where Alibaba recently backed an e-commerce firm) and other parts of Europe where it has a presence. Likewise, Russian online sellers will gain access to consumers in those markets. Alibaba’s ‘branded mall’ — TMall — is also a part of the AliExpress Russia offering.

This deal suggests that Alibaba has picked its ‘horse’ in Russia’s internet race, much the same way that it has repeatedly backed Paytm — the company offering payments, e-commerce and digital banking — in India with funding and integrations.

Already, Alibaba said that Russia has been a “vital market for the growth” for its Alipay mobile payment service. It didn’t provide any raw figures to back that up, but you can bet that it will be pushing Alipay hard as it runs AliExpress Russia. Mail.ru’s own offering is called Money.Mail.Ru, but other reports have claimed the joint venture will make use of Russia’s national system, Mir.

“Most Russian consumers are already our users, and this partnership will enable us to significantly increase the access to various segments of the e-commerce offering, including both cross-border and local merchants. The combination of our ecosystems allows us to leverage our distribution through our merchant base and goods as well as product integrations,” said Mail.Ru Group CEO Boris Dobrodeev in a statement.

Alibaba president Michael Evans explained in comments reported by Bloomberg that Alibaba needed help from local firms if it was to progress in Russia.

“A big part of what we’ve been able to develop so far in Russia has been our cross-border business. But the future, which will require the presence of our partners at this table, will involve building a much bigger local business,” he said.

This is the second strategic alliance that MegaFon has struck this year. It formed a joint venture with Gazprombank in May through a deal that saw it offload five percent of its stake in Mail.ru. MegaFon acquired 15.2 percent of Mail.ru for $740 million in February 2017.

The Russia deal comes a day after Alibaba co-founder and executive chairman Jack Ma — the public face of the company — announced plans to step down over the next year. Current CEO Daniel Zhang will replace him as chairman, meaning that the company will also need to appoint a new CEO.

Facebook is opening its first data center in Asia

Facebook is opening its first data center in Asia. The company announced today that it is planning an 11-story building in Singapore that will help its services run faster and more efficiently. The development will cost SG$1.4 billion, or around US$1 billion, the company confirmed.

The social networking firm said that it anticipates that the building will be powered 100 percent by renewable energy. It said also that it will utilize a new ‘StatePoint Liquid Cooling’ system technology, which the firm claims minimizes the consumption of water and power.

Facebook said that the project will create hundreds of jobs and “form part of our growing presence in Singapore and across Asia.”

A render of what Facebook anticipates that its data center in Singapore will look like

Asia Pacific accounts for 894 million monthly users, that’s 40 percent of the total user base and it makes it the highest region based on users. However, when it comes to actually making money, the region is lagging. Asia Pacific brought in total sales of $2.3 billion in Facebook’s most recent quarter of business, that’s just 18 percent of total revenue and less than half of the revenue made from the U.S. during the same period. Enabling more efficient services is one step to helping to close that revenue gap.

Facebook isn’t the only global tech firm that’s investing in data centers in Asia lately. Google recently revealed that it plans to develop a third data center in Singapore. The firm also has data centers for Asia that are located in Taiwan.