Bradley Tusk on starting a company and seed investing in the coronavirus era

Bradley Tusk has carved a unique path in the VC investment landscape: A longtime political and communications operative, he has built a track record for Tusk Ventures by going after highly regulated industries, rather than shying away from them.

Whether it is ride-hailing, sports betting, cannabis or myriad other regulated sectors, Tusk takes the approach that laws are ultimately malleable, and if a service is popular, its users can mobilize to effect change.

Given his unique perspective, it was great to have him join us this week in an Extra Crunch Live call — our new initiative here at TechCrunch to bring tech-world thought leaders right to your screens.

In our conversation, Tusk talked about edtech, telemedicine, cannabis, mobile voting, biotech, pandemics and the future of regulated industries in this dastardly economic environment. We’ve transcribed a handful of his answers to our and our readers’ questions and have embedded the entire video below the fold.

We’ve edited his written answers for clarity and brevity.

from Amazon – TechCrunch https://techcrunch.com/2020/04/17/bradley-tusk-on-starting-a-company-and-seed-investing-in-the-coronavirus-era/

Coming to a theater near you: Amazon?

It looks like Amazon may be gearing up to make more moves in the brick-and-mortar world. Bloomberg reports that the e-commerce behemoth is putting itself in the running to acquire Landmark Theatres, which claims to be the United States’ largest chain of movie theaters focused on art house (indie and foreign) movies, with a network of 56 cinemas, covering 268 screens in 27 markets.

Bloomberg’s sources say that Amazon is going up against other potential acquirers in purchasing the business from Wagner/Cuban Cos., but that no final decisions have been made.

The companies aren’t publicly commenting on the reports, but it’s an interesting scenario to consider because of all the ways that it seems to fit into Amazon’s wider strategy. 

The company has done an incredible job of making it easy (and cheap) to buy virtually anything you want from it in the digital world, whether it’s necessities like toiletries, books, groceries, clothes and electronics, or digital products like movies, music and cloud storage space for your app or game, in as little as one click. Through its marketplace model — where it is both a middleman between consumers and sellers, and the seller itself of different goods and services — Amazon wants to be wherever people want to spend money.

But there are certain forms of retail that may never translate to the online world. Experiential retail — dining out at restaurants, going to a bar or event, picking a melon that you can smell before you pay for it and, of course, going to the movies — requires that you get up and go somewhere to do it.

Amazon knows this, and so it’s slowly, quietly amassing selective assets that will let people engage in the more physical side of commerce. These have included book stores, and its own futuristic, checkout-free food shops. And of course it spent $13.7 billion to gobble up the natural food leviathan Whole Foods.

The latter of these is very instructive when you consider how a movie theater chain might fit into the Amazon pantheon. Amazon’s Prime Fresh grocery delivery service gives busy users the convenience of skipping the grocery store, but Whole Foods also gives Amazon a way of capturing buyers who might prefer to make trips to a grocery store.

But that’s not all it does. It’s added Whole Foods discounts as yet another sweetener for Prime subscribers; it’s extending its formidable logistics muscle to Whole Foods ordering and delivery (first for Prime subscribers, naturally); and of course it has put in pop-up shops selling its other products, like the Kindle and the Echo, in prime spots when you enter a store.

Amazon owning a chain of theaters spells out a lot of opportunities for it in terms of expanding its interests in film; in experiential, physical commerce; and in leveraging the rest of the pieces in its commercial empire.

The world of movie theaters has been hobbling for years, with droves of consumers these days foregoing increasingly expensive tickets and snacks and opting to watch a slightly smaller screen in the comfort of their own home. But to the disruptive eye, that ageing business model is catnip, and so unsurprisingly, MoviePass has come along, seeing that there was an opportunity to try to revive the cinema experience by offering subscriptions for a flat rate to get more bums on those seats.

Yes, MoviePass is bleeding money, and it looks like a mess for many other reasons, but it’s had an impact, so much so that AMC has taken notice and launched its own competitor.

The world’s largest theater chain almost certainly won’t experience the same sort of pains that MoviePass has, because it both controls the means of distribution and has a sizeable support infrastructure, and of course owns the cinemas.

But if AMC has a safety net, then Amazon — one of the world’s most valuable companies — has airbags, collision sensors, seatbelts, automatic braking and maybe even an Alexa-powered predictive voice to tell you what to do next. If Amazon ran a loss-making chain of cinemas, it would be but a little drop in the bucket for it.

Amazon already has one of the biggest digital subscription businesses in the world, with more than 100 million Prime members, as of April 2018. Tacking a subscription to cinemas on to that, which either made going free or discounted, is a no-brainer.

But wait! You get more for the price of the Landmark Theatres! Amazon, as we know, also has a budding media business, offering movies, TV and music to Prime users. Included in that is its own original content machine, Amazon Studios, responsible for shows like Transparent and movies like Manchester by the Sea.

A theater chain acquisition would further open the distribution channels for Amazon’s own films, and give Amazon a much tighter grip on the costs for that distribution. And with a position covering theatrical, DVD and digital distribution windows, you can bet that will give Amazon more leverage when negotiating screen rights to films that it hasn’t produced itself.

Controlling distribution could also prove useful during awards season — the timing of a film’s release goes a long ways toward determining nominees. (And yes, those screens also become one more place where Amazon can run ads, too, in its budding advertising empire.)

And don’t forget the fact that theaters are, at the end of the day, also retail real estate.

It’s a long-known fact that cinemas make most of their money on concessions, and they have accordingly built out large lobby areas where people can mill about and spend money before and after sitting down in the darkened screening rooms. In addition to selling all the usual concessions (both made by Amazon and its marketplace partners), Amazon could use those spaces as they have with Whole Foods, creating retail experiences for products that might have nothing at all to do with what you came to the cinema for in the first place, but then suddenly seem like interesting places to try out something new.

Is it any wonder that even without Amazon or Landmark responding to Bloomberg’s report, theater chain stocks dropped on word of the news?

from Amazon – TechCrunch https://techcrunch.com/2018/08/16/night-of-the-living-amazon/

Security researchers found a way to hack into the Amazon Echo

Hackers at DefCon have exposed new security concerns around smart speakers. Tencent’s Wu HuiYu and Qian Wenxiang spoke at the security conference with a presentation called Breaking Smart Speakers: We are Listening to You, explaining how they hacked into an Amazon Echo speaker and turned it into a spy bug.

The hack involved a modified Amazon Echo, which had had parts swapped out, including some that had been soldered on. The modified Echo was then used to hack into other, non-modified Echos by connecting both the hackers’ Echo and a regular Echo to the same LAN.

This allowed the hackers to turn their own, modified Echo into a listening bug, relaying audio from the other Echo speakers without those speakers indicating that they were transmitting.

This method was very difficult to execute, but represents an early step in exploiting Amazon’s increasingly popular smart speaker.

The researchers notified Amazon of the exploit before the presentation, and Amazon has already pushed a patch, according to Wired.

Still, the presentation demonstrates how one Echo, with malicious firmware, could potentially alter a group of speakers when connected to the same network, posing concerns with the idea of Echos in hotels.

Wired explained how the networking feature of the Echo allowed for the hack:

If they can then get that doctored Echo onto the same Wi-Fi network as a target device, the hackers can take advantage of a software component of Amazon’s speakers, known as Whole Home Audio Daemon, that the devices use to communicate with other Echoes in the same network. That daemon contained a vulnerability that the hackers found they could exploit via their hacked Echo to gain full control over the target speaker, including the ability to make the Echo play any sound they chose, or more worryingly, silently record and transmit audio to a faraway spy.

An Amazon spokesperson told Wired that “customers do not need to take any action as their devices have been automatically updated with security fixes,” adding that “this issue would have required a malicious actor to have physical access to a device and the ability to modify the device hardware.”

To be clear, the actor would only need physical access to their own Echo to execute the hack.

While Amazon has dismissed concerns that its voice activated devices are monitoring you, hackers at this year’s DefCon proved that they can.

from Amazon – TechCrunch https://techcrunch.com/2018/08/13/security-researchers-found-a-way-to-hack-into-the-amazon-echo/

Instacart hires its first Chief Communications Officer, Dani Dudeck

Instacart, the grocery delivery platform valued at $4.2 billion, has today announced that it has hired its first Chief Communications Officer in Dani Dudeck.

Dudeck has been in the communications world for the past 15 years, serving as VP of Global Communications at MySpace for four years and moving to Zynga as CCO in 2010. At Zynga, Dudeck oversaw corporate and consumer reputation of the brand before and after its IPO, helping the company through both tremendous periods of growth and a rapidly changing mobile gaming landscape.

Dudeck joins Instacart at an equally interesting time for the company. Though Instacart is showing no signs of slowing down — the company recently raised $200 million in funding — the industry as a whole is seeing growing interest from incumbents and behemoth tech companies alike.

Amazon last year acquired Whole Foods for nearly $14 billion, signaling the e-commerce giant’s intention to get into the grocery business. Plus, Target acquired Shipt for $550 million in December. Meanwhile, Walmart has partnered with DoorDash and Postmates for grocery delivery after a short-lived partnership with Uber and Lyft.

In other words, the industry is at a tipping point. Instacart not only needs to out-maneuver the increasingly competitive space, but continue to tell its story to both consumers and potential shoppers/employees alike.

Dudeck plans to hit the ground running after having been an Instacart customer since 2013.

Here’s what Dudeck had to say in a prepared statement:

We’ve been an Instacart family for years and as a mom it’s been a game changer for me. Our home is powered by Instacart because over the years, I saw how the products helped me better manage our household rhythm. Whether I’m doing a fast diaper delivery or fresh groceries for our weekly shopping, I love feeling like I can be in two places at once while getting to spend more time with my family. After getting to know the internal team, I was blown away by the strength of Instacart’s business and the unique culture they’ve created. By building on that success, we have a compelling opportunity to grow Instacart into a beloved, household name and turn Express into a must-have membership for families and busy people everywhere. I’m excited to join the management team and partner with them to accelerate their ambitious plans for future growth.

from Amazon – TechCrunch https://techcrunch.com/2018/07/09/instacart-hires-its-first-chief-communications-officer-dani-dudeck/

Amazon adds fingerprint authentication to Key app for Android

Building technology is all about learning as you go. Amazon knows this, and has today added fingerprint ID to the new Amazon Key app, which enables in-home delivery of goods.

The Key app was announced in October, alongside the Cloud Cam, which lets users watch goings on in their homes as delivery professionals come in and out of their space.

Given that the app essentially controls who gets in and out of your home, it would be problematic if your phone got into the hands of someone malicious. So Amazon has added an additional layer of security, your fingerprint, to the Android version of the app.

An Amazon spokesperson told TechCrunch that fingerprint authentication is coming soon to iOS.

Amazon recently acquired smart doorbell maker Ring in a deal reportedly valued at $1.1 billion, which presumably furthers the mission of truly last mile deliveries. Late last year, Amazon also acquired security startup Blink for a reported $90 million.

But Amazon isn’t the only one dabbling in in-home deliveries. WalMart partnered with August Lock last year to allow delivery people to bring groceries and other goods all the way into the home and put them away.

Amazon CloudCam is available starting at $199, but the door lock used with the Key app is sold separately.

from Amazon – TechCrunch https://techcrunch.com/2018/03/20/amazon-adds-fingerprint-authentication-to-key-app-for-android/

Amazon greenlights the fifth season of Bosch

 Amazon Prime Video’s longest running hour-long original series is back for yet another season. The company has greenlit Season 5 of Bosch, the Emmy-nominated series based on Michael Connelly’s detective/crime fiction novels. Bosch follows LAPD Detective Hieronymus “Harry” Bosch as he tries to solve the most elusive cases. The fifth season is based on the novel Angels… Read More

from Amazon – TechCrunch https://techcrunch.com/2018/02/13/amazon-greenlights-the-fifth-season-of-bosch/?ncid=rss

Voice assistants weigh in on Super Bowl LII

 Today marks the 52nd Super Bowl, and quite a bit has changed since that first big game. Then, it was called the AFL-NFL World Championship Game. In 1967, the cost of a movie ticket was $1.25, and color TV was just starting to become popular. Today, more than fifty years later, we can now stream the big game to our pocket computers and have artificially intelligent assistants sitting around in… Read More

from Amazon – TechCrunch https://techcrunch.com/2018/02/04/voice-assistants-weigh-in-on-super-bowl-lii/?ncid=rss

Sneaky Pete season 2 will debut on Amazon Prime Video in March

 Sneaky Pete, the series created by Bryan Cranston and David Shore, is heading into its second season. Amazon today announced that Season 2 of the drama/thriller will debut March 9 on Amazon Prime Video. Sneaky Pete follows the story of Marius, a conman released from prison who decides to steal the identity of his cellmate Pete to avoid paying back a gangster he robbed in the past. Amazon… Read More

from Amazon – TechCrunch https://techcrunch.com/2018/01/25/sneaky-pete-season-2-will-debut-on-amazon-prime-video-in-march/?ncid=rss

Amazon’s Alexa may eventually serve up ads

 It was only a matter of time, folks. According to a report from CNBC, Amazon is in talks with brands and advertisers to include ads on the Echo through via Alexa. The report says that Amazon is discussing these opportunities with Procter & Gamble and Clorox. We can’t say we’re surprised. Just as ads found their way to the newspaper, the radio, the television, the internet, and… Read More

from Amazon – TechCrunch https://techcrunch.com/2018/01/04/amazons-alexa-may-eventually-serve-up-ads/?ncid=rss

Here are the deadlines for all your online holiday shopping orders

 While some folks still head to the stores on Black Friday and throughout December, many of us are turning to the web for Christmas shopping. Just one complication: shipping tends to bottleneck during the holidays and some gifts simply don’t arrive on time. But we’ve sorted all that out for you. Here are the order deadlines for folks buying their gifts online who want them delivered… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/12/13/here-are-the-deadlines-for-all-your-online-holiday-shopping-orders/?ncid=rss

Amazon is putting Alexa in the office

 The interface is evolving. What has long been dominated by screens of all shapes and sizes is now being encroached upon by the voice. And while many companies are building voice interfaces — Apple with Siri, Google with Assistant, and Microsoft with Cortana — none are quite as dominant as Amazon has been with Alexa. At the AWS reinvent conference, Amazon will announce Alexa for… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/11/29/amazon-is-putting-alexa-in-the-office/?ncid=rss

Instacart signs deal with Albertsons

 Instacart has inked a deal with Albertsons to offer same-day delivery from the grocery store chain. The deal will include 1,800 of Albertsons stores across the country by mid-2018, helping Instacart deliver on its promise to be available in 80 percent of markets across the U.S. by the end of 2018. This isn’t Albertsons first foray into the tech space. Earlier this year, the company… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/11/28/instacart-signs-deal-with-albertsons/?ncid=rss

Sonos One users can now ask Alexa to play Spotify music

 In October, Sonos launched the Sonos One, raising the bar on what is already the gold standard in wireless whole-home audio. The big new feature? An integrated microphone that added support for Amazon’s Alexa. However, there was one big caveat: While Alexa was integrated to control music services like Apple Music, Google Play Music, Soundcloud and others, it was missing a major player in… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/11/21/sonos-one-users-can-now-ask-alexa-to-play-spotify-music/?ncid=rss

Amazon Prime Video launches globally on Xbox consoles

 Today, Amazon Prime Video is launching globally for Xbox One, and will also be available on the new Xbox One X when it lands in stores on November 7. The streaming app, which is the only place to watch Amazon Originals like Transparent and Mozart in the Jungle, is going live in Canada, Mexico, France, Italy, Spain and India. In January of 2016, Netflix globally expanded its service to cover… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/10/31/amazon-prime-video-launches-globally-on-xbox-consoles/?ncid=rss

Garmin Speak lets you bring Alexa along in the car

 Amazon and Garmin have teamed up to bring the wisdom and subservient attitude of Alexa to a car near you. The Garmin Speak is an Echo Dot-like device that sits in the dash of your car and brings the full range of Alexa skills into the car. What’s more, the Garmin Speak integrates Alexa services through the car stereo, meaning you can listen to music, audiobooks, news and weather through… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/10/17/garmin-speak-lets-you-bring-alexa-along-in-the-car/?ncid=rss

Instacart is a spleen and it needs to be a kidney

 The spleen does things in the body, real things. It filters poisons and biologists think it once did much more. But, if your spleen goes sideways you can take it out and not change your lifestyle much. It does stuff, but not enough to make it indispensable. Lose your kidneys and your life is going to start sucking real fast. This is where Instacart is at. It’s a spleen and it needs to… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/10/01/instacart-needs-to-deeply-invest-in-grocers-and-user-personalization-to-survive/?ncid=rss

Google Play seems to be following Apple to $20 4k movies

 As part of its iPhone unveil earlier this month, Apple also announced a new 4K Apple TV and topped it all off with $20 price tags for 4K HDR titles. In fact, Apple promised to automatically upgrade previously purchased films to 4K for no extra charge. Now, it’s looking like Google may be following Apple’s lead, with some new UHD films on Play Movies priced at $19.99. Android Police… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/09/27/google-play-seems-to-be-following-apple-to-20-4k-movies/?ncid=rss

Minibar alcohol marketplace picks up $5 million in funding

 Minibar, a marketplace for wine, beer and spirits, has today announced the close of a $5 million Series A round led by Corigin Ventures, with participation from Female Founders Fund, Winklevoss Capital, LaunchCapital and RiverPark Ventures. Minibar launched back in 2013, trying to give liquor stores an ecommerce outlet and users the ability to buy booze with the click of a button. The company… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/08/15/minibar-alcohol-marketplace-picks-up-5-million-in-funding/?ncid=rss

New Funny or Die series, The Real Stephen Blatt, streams exclusively on Amazon Prime Video

 Funny or Die is launching an all-new miniseries, The Real Stephen Blatt, which will be streamed exclusively on Amazon Prime video. Though some Funny or Die content is currently available on Amazon Prime, such as The Very Best of Will Ferrell, The Very Best of James Franco, Drunk History, and Between Two Ferns, The Real Stephen Blatt marks the first Funny or Die content to stream exclusively… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/07/24/new-funny-or-die-series-the-real-stephen-blatt-streams-exclusively-on-amazon-prime-video/?ncid=rss

In wake of Amazon/Whole Foods deal, Instacart has a challenging opportunity

 Yesterday, Amazon and Whole Foods ruined a perfectly slow news day on a Friday in June with the announcement that Amazon intends to buy Whole Foods for almost $14 billion. The most obvious victim of the deal was Instacart, in which Whole Foods invested and with whom Whole Foods has a five-year contract. But after talking to a few Instacart investors and other sources close to the company… Read More

from Amazon – TechCrunch https://techcrunch.com/2017/06/17/in-wake-of-amazonwhole-foods-deal-instacart-has-a-challenging-opportunity/?ncid=rss