Roundup of news and ideas from the world of startups – Week ending 21st October 2018
News you can use
Amazon scraps secret AI recruiting tool that showed bias against women – Amazon.com Inc’s machine-learning specialists uncovered a big problem: their new recruiting engine did not like women. The team had been building computer programs since 2014 to review job applicants’ resumes with the aim of mechanizing the search for top talent, five people familiar with the effort told Reuters. Automation has been key to Amazon’s e-commerce dominance, be it inside warehouses or driving pricing decisions. The company’s experimental hiring tool used artificial intelligence to give job candidates scores ranging from one to five stars – much like shoppers rate products on Amazon, some of the people said.
image from techfunnel.com
Corporate M&A
Digital music analytics startup Asaii acquired by Apple – According to media accounts, Apple has acquired Asaii, a music analytics company focused around the discovery of new and emerging artists. This development comes after Asaii announced on October 14th that it would be shutting down.
Salesforce acquires interactive email startup Rebel – The SaaS software giant Salesforce has acquired an interactive email services startup Rebel. The acquisition of Rebel highlights how Salesforce is trying to provide new ways for marketers to deliver personalized and interactive emails to consumers.
Israeli Cybersecurity Startup Sygnia to be Acquired by investor Temasek – This week Israeli cybersecurity consulting startup Sygnia announced that it was being acquired by Temasek, a global investment company headquartered in Singapore. Corporate security has been at the forefront of corporate CIOs and CxOs, and this acquisition highlights the growing significance of the business models driving cybersecurity.
Failed Startups
e-motorcycle startup Alta Motors shuts down – According to TechCrunch, the Brisbane, California based e-motorcycle startup Alta Motors has ceased operations. Alta had been attempting to compete with gas bikes by applying to enter American Motorcycle Association sanctioned motocross events. In September, the company became the first e-moto to earn a podium spot in AMA competition in another race class, endurocross.
Crypto startup shuts down amidst Australian investigation – Blockchain and crypto currencies continue to be among the most hyped up in the tech-world. However, not many crypto currency ventures are successful. This week, the cryptocurrency startup promoted by Australian cricketer Michael Clarke reportedly shut down amidst investigation by Australian authorities. The Australian Securities and Investments Commission has confirmed it is making “some enquiries” about the cryptocurrency startup .
Bitcoin exchange, Zebpay shuts but promises to keep its wallet functional for users – The Reserve Bank of India (RBI) had released a statement in April directing all regulated entities, including banks, e-wallets, and payment gateway providers, to stop dealing with individuals and businesses in the partially banned crypto-currencies. Following this, Zebpay had asked its users to withdraw money before the deadline following RBI mandate.
Rethink Robotics, Pioneer of Collaborative Robots, Shuts Down – The premier robotics companies based in New England has shut down, according to reports by The Robot Report and The Boston Globe. Rethink was founded as Heartland Robotics 10 years ago. The startup was focused on developing collaborative factory robots, had raised more than $130 million in venture funding.
Blockchain Journalism Startup Civil Refunds Investors after Failed ICO – Initial coin offering (ICO) operator Civil will refund investors due to the blockchain startup’s failure to reach its minimum sale cap. Civil will conduct another token sale in further efforts to build their Journalism business.