A Blog by Jonathan Low

 

Dec 19, 2015

Why Hoverboards Keep Exploding

 Whatever, they're awesome while they last. JL

Tim Moynihan reports in Wired:

Plugged in or not, the big problem has to do with the quality of the rechargeable lithium-ion batteries inside these things. They’re almost always tucked in one of the foot rests, and they work the same way as the lithium-ion batteries in our smartphones, tablets, and laptops. They’re just a lot more prone to defects.

Clinton and Sanders Are Fighting About Data Because Most Organizations Are Bad At Protecting It

Pot, meet kettle. And note that you have lots of company. JL

Ashley Carman reports in The Verge:

As breaches go, it’s relatively mild — none of the data was publicly released — but it shows that the ability of campaigns to protect data hasn’t kept pace with their use of it. The root of the scandal comes down to political organizations with massive stores of sensitive data and none of the sense required to safeguard it.

Retailers Lost $185 Million in Christmas Sales Due to Warmer Temperatures

"Dashing through the snow in a one horse open sleigh..." JL

Adrianne Pasquarelli reports in Advertising Age:

Temps will be up 4% overall for the month of December, driven by cities including New York and Chicago.Warmer temperatures have put significant pressure on apparel and outerwear sales. Analysts expecting huge markdowns for the end of the year

The Strategy Driving Uber's Ride Hailing Alliance with Facebook Messenger

Both companies can use each other and the benefits are mutual: Uber is facing a relentless assault on its business model and will almost certainly see its costs increase and margins erode. An opportunity to tap into Facebook's vast membership may help offset that financial impact. 

Facebook emergence as a ferociously determined competitor to Apple, Amazon and Google is evident from its desire to keep all of its 'friends' doing their messaging, shopping, on-demand service requesting - and everything else - within the ecosystem. Uber's cache and popularity give Facebook the chance to provide an iconic service, enhancing its own brand.

Given Uber's own strategic ambitions, the only potential issue may be over who gets access to how much of who's data. JL

Selena Larson reports in The Daily Dot:

Facebook has made significant efforts to turn it into more than just a way to chat. It can now be used as a payments platform; a customer service app to get information about shipping and products; and a part-human part-machine personal assistant. Messenger is angling to take over all the service apps you use, encouraging you to remain within Facebook's walls.

Why Consumer Electronics Competition Is Shifting To the High End

No one is 'making it up on volume,' - the traditional explanation for going after the masses - however vast the potential may be.

The question is why any company pursuing this strategy now believes increased competition for more expensive products and services will improve margins for anyone other than - as usual - Apple. JL

Jan Dawson comments in re/code:

The vast majority of players in that market make razor-thin margins, if they’re profitable at all. It has been clear for years that, while scale may be in the mass market, the margins are in the high end.

39.3% of All US Money Spent Online Goes to Amazon

For those keeping score at home...since even though this is the last weekend before Christmas, it's apparent that you're not going to the mall. JL

Spencer Soper reports in Bloomberg:

After getting online shoppers accustomed to two-day deliveries, the Web retailer is pushing to grab a bigger chunk of sales from brick-and-mortar stores. Amazon upped the ante this year by expanding its one-hour Prime Now delivery service to big cities. Total online shopping is on track to climb 11 percent in November and December

Dec 18, 2015

What Big Tech Company Christmas Parties Are Really Like

Yup. JL

Tom Mitchell comments in Medium:

Everybody’s wearing a Christmas sweater. Most are the same design — the cheapest opening result from a ‘Christmas sweater’ Amazon search. The stock flotation and service profitability was paramount in everyone’s mind throughout the working year. The company needs cashflow to provide a free bar. It was free for the first $5000 of alcohol sold.
‘How long did that last?’
‘Twenty-eight minutes.’

Can Airlines Make Money?

Hey! It's the Friday before Christmas, which means lots of people are taking the next week off and traveling to see family and friends.

 It also means that many of those people are in a nasty frame of mind because they are dreading the airline travel experience: intrusive, worrisome and time-consuming security; crowded airports; delays; extra charges for virtually everything (will access to oxygen be next?); frequently indifferent airline employees who dont like their employers any more than you do, and monopolistic pricing in tandem with ever-shrinking seat sizes and snacks.

But as the following article explains, despite the reduction in the number of US airlines from 9 to 4, with the attendant reduction in travel and pricing options, airlines still can't figure out how to make a profit, which means on top of all the pain and suffering, taxpayers are still supporting them. Fly the friendly skies, indeed. JL

Alex Mayyasi reports in Price Economics:

Few industries are as hated as America's airlines (but they) have not turned their dominant position into sustained profits—in the United States or abroad. Despite deregulation, most American airlines owe their continued existence to the federal government, which not only builds and maintains airports, but has taken responsibility for paying tens of billions of dollars worth of airline worker pensions.

How New York City Is Becoming a Data-Driven Digital Laboratory

The city's government and its private sector partners are linking invisible networks of data to identify threats, enhance opportunities and improve life. 'Caution: technology at work.' JL

Robert Hotz reports in the Wall Street Journal:

New York has made more of its data public than any other city in the world, posting records online from school attendance, pothole work orders and fire department inspections, to noise complaints and construction permits. Data analysts have rewired management systems, linking networks in agencies and utilities. Algorithms speed emergency services, uncover tax fraud, detect landlords illegally harassing tenants and target buildings most at risk of fire.

Why California's New Self-Driving Car Rules Are Great For Texas

California's high taxes, expensive real estate and often restrictive regulatory oversight have not been an impediment to growth and innovation because of the wealth of educated talent it has to offer - and because it's such a beautiful place to live (in most locales most of the time).

But when innovations in autonomous driving collide with the state's traditional automotive dependence,  conflicting interests are creating a slow-down. And the beneficiary may be a state with few regulations - and a big interest in oil and gas. JL

Alex Davies reports in Wired:

These rules would explicitly ban cars without human drivers, as well as the commercial use of the technology, until further notice. To go beyond fewer crashes and a cushier ride, you need the option to get rid of the human altogether, and to use the vehicles for business purposes. Google has no reason to restrict itself to the traditional car ownership model. The driverless cars could be used for a delivery service (doing away with human contractors).

Startups Discovering Technology Makes Offers of Human Expertise Scalable, Profitable - and Helpful

Customer service is back, driven, ironically, by humanity's growing dependence on and fear of technology. Offering personal assistance, from tech support to travel planning, is a profit center.

We knew we'd find a use for those humanoids one of these days. JL

Farhad Manjoo reports in the New York Times:

One of the ironies of the digital revolution is that it has also helped human expertise scale. Human customer service agents can now serve multiple customers at a time. They can also access reams of data about your preferences, allowing them to quickly find answers for your questions. Humans and machines work together, and we customers lazily beg for help

Sharing Economy Threatened By Insurers' Inability to Calculate Risk, Offer Coverage

Innovative business models can frequently be upended, not by direct assaults on their product or strategy, but by unanticipated threats to their financial processes and economic outcomes.

History is replete with examples, from Depression-era Chicago gangster Al Capone being convicted not of murder, but tax evasion; to Sony's technologically superior Betamax being supplanted by the corporate alliance supporting the DVD; to Apple's lightning-fast dominance of the music industry via a new distribution system called iTunes.

And so it seems possible, as the following article explains, that the sharing economy Airbnb model may be challenged by the fact that as more apartment, condo and housing units are converted to rental - or app-driven, on-demand contracting, the growth of the industry may be affected not by opposition from those concerned about the economic impact on people who need a place to live, but by the inability of the insurance industry to provide affordable coverage to owners, renters and corporate intermediaries.

Just as there may need to be a redefinition of what it means to be an employee or contractor, so there may need to be a new conceptual approach to the meaning of home. And ownership. JL

Rebecca Burn-Callander reports in The Telegraph:

Insurance companies don’t have enough data to work out the level of risk. Sharing economy business are all very different, so it’s difficult to work out a template that suits all of them. Even if it does find insurance, the premium is prohibitively high. Who bears the risk? The platform or the consumer?

Dec 17, 2015

US Air Force Offers $125,000 Critical Skills Bonuses To Retain Drone Pilots

Success kinda hinges on the definition of 'skill' and 'critical.' JL

Bryant Jordan reports in military.com:

Pilots who graduated from the RPA training school are now nearing the end of their initial six-year service obligation. At the same time, the service has been dealing with issues of mission fatigue among those flying the RPAs. A "significant number" of the Air Force's 1,200 RPA pilots were (reported to be) considering leaving the Air Force.

A New Startup Bets $10,000 Your Marriage Will End Badly

Sounds like a bet that's more risky than it has been in recent history. But to paraphrase H.L.Mencken, 'no one ever lost money underestimating' the self-destructive tendencies of the American public. JL

Danielle Paquette reports in the Washington Post:

A startup in Seattle will fund your wedding. Up to $10,000.The catch: If your union crumbles, at six months or 25 years, you must pay them back — with interest. Swanluv will review your relationship and set an interest rate based on your compatibility. The share of never-married adults in the United States, meanwhile, has reached a historic peak (millennials are likely to put off marriage). Over 30 years, divorce rates have steadily declined.

Tech Industry Attacks Unbalanced and Restrictive New EU Data Rules

The EU's relentless obsession with restricting data access in order to protect ever greater swaths of personal information online would be on the verge of becoming comical - if it weren't so damaging.

The suspicion remains that this evermore restrictive approach would be considerably less comprehensive if the companies affected were primarily European rather than American.

That said, the broader and potentially more lasting damage is to the global pursuit of knowledge and the growth it stimulates. JL

Duncan Robinson reports in the Financial Times:

The new regime “fails to strike the proper balance between protecting citizens’ fundamental rights to privacy and the ability for businesses in Europe to become more competitive”.

An Artificial Intelligence Advance That Rivals Human Vision and Learning Capabilities

Rivals. But does not supersede or supplant. Yet. JL

John Markoff reports in the New York Times:

Machine-vision systems are becoming commonplace in car-safety systems that detect pedestrians and bicyclists, as well as in video game controls, Internet search and factory robots. It’s amazing what you can do with lots of data and faster computers. But when you look at children, it’s amazing what they can learn from very little data.

Deathstar: How Star Wars - and Apple - Explains Why The World Around You Looks the Way It Does

As the latest Star Wars film is set to open, observers are pondering whether it represents some sort of metaphor for the role of technology in this civilization.

It is worth noting that George Lucas hired Steve Jobs and Apple to help finish the early films, and discovered that his editors were being supplanted by Apple's technological advances. Much as many of those paying to see this latest version may have found themselves rendered obsolete by successive waves of innovation. JL

Nicholas de Monchaux reports in Quartz:

Apple has helped author a world like Lucas’s far-off galaxy; where all are connected, and can tap into vast reserves of invisible power through the device we hold in our hands. As Apple’s reach extends into the public sphere as well as the private screen, remember hard learned lessons of control and openness, hardness and softness, brittleness and resilience. The only thing one can say about a Death Star is that it unexpectedly explodes right before the ending.

How Seattle's Law Letting Uber and Lyft Drivers Unionize May Change the On-Demand Economy

Either Uber doesn't get that it's model will never prevail, or it is determined to fight reflexively and bitterly - with the full-throated support of its wealthy libertarian investors - every attempt to rein in the factors driving its infamous $60 billion valuation.

The reality is that Uber et al have already lost. The rise of populist candidates like Donald Trump and Bernie Sanders means that the electorate is no longer sufficiently frightened of the consequences to cave on every financialized demand that has caused household incomes to stagnate for a generation. The name 'App-Based Drivers' Association' suggests the breath of the potential.

The Seattle City Council action, like the California court rulings, French jailing of Uber executives and other, similar reactive threats may be insignificant in themselves, but when taken together represent a societal rejection not of the service Uber and its competitors provide which remains immensely popular, but of the terms by which they do so. JL

Heather Somerville reports in Reuters:

The law approved unanimously by the Seattle City Council recognizes the right of drivers for on-demand ride companies, as well as taxi and for-hire drivers, to collectively negotiate on pay and working conditions.Until such time as their status is resolved in each state, those who are unhappy will seek political action to advance their causes.

Dec 16, 2015

The Internet Has No Eraser: Texas Plumber Sues Dealer When Truck He Sold Ends Up on Jihadi Video

Not exactly the brand awareness he was looking for...JL

Matt Pearce reports in the Los Angeles Times:

In the photo, an enormous flame burst from the muzzle as a rebel fired the gun from the bed. The words MARK-1 PLUMBING, plus the Texas City business' phone number still clearly visible on the side of the truck, looking as if Oberholtzer had placed a NASCAR-style endorsement on militants in Syria. The viral image earned him a torrent of abuse from hundreds of strangers who felt compelled to call and message him.

What Amazon Has Learned From Costco

Amazon's Prime was modeled, in part, on Costco membership strategy.

Costco has also used incentive sales of gasoline and food as a means of driving in-store traffic, which is yet another tactic Amazon has adopted with its new delivery services. Both companies are based in the Seattle area and have learned from each other.  JL

Kate Taylor reports in Business Insider:

Costco has been able to hold its own because of its membership model and ability to incentivize visits to brick-and-mortar locations.

US Legalizes Mining In Space: Now For the Hard Part



Talk about your property rights.

As to whether any other nation will recognize the legality of the American law, let alone whether anyone can actually lasso an asteroid, to say nothing of extracting precious metals from it and then get them back to earth, well there is a market for 'outtasite' returns.JL
Paul Stimers comments in the Wall Street Journal:

The U.S. government made it legal for Americans to mine an asteroid—provided they can catch one. Several companies are preparing to give this a go, pursuing already-identified asteroids that contain precious metals, such as platinum, worth trillions of dollars.

Why the Titans of the Sharing Economy Are Shunning IPOs



Worries about demand - both financial and operational - are causing on-demand businesses to question whether the extravagant valuations they have enjoyed until recently will begin to decline.

This is consistent with the traditional investing advice, 'buy the rumor, sell the news.' Since the current valuations have fully captured the rumor, the fear is that there is nothing left but news, and it can't be all good. JL

 Tom Braithwaite reports in the Financial Times:

Early investors in any large “unicorn”are worrying that the private valuations are vulnerable to a tougher economic or market climate. There is no reason to believe demand is going to get better and every reason to think it could get worse.Then there is the supply side, which should be more worrisome. With about 150 private tech companies with a valuation of more than $1bn, the pipeline is clogged.

Netflix Became a Legitimate TV Network This Year. Now What?

Netflix's rise is reminiscent of...stay with me...Southwest Airlines. The industry outsider which ended up transforming the rules of its industry's business game and grew to become a, if not the, dominant player.

The challenge is, as Southwest found, that when you do achieve that goal, you discover that you are being judged by a different set of measures - and expectations. The question is what Netflix has to do to continue growing without losing its creative edge. JL

K.M. McFarland reports in Wired:

Over the past three years, the streaming company’s expansion has been relentless. Of course Netflix is opaque about numbers. Gaining awards nominations and watching subscriber numbers go up has helped its stock price—so why conform to ratings reports? Netflix is attempting to widen its audience without needing to capture a large swath of viewers with every show, just a devoted niche.

Problem Set? How Technology Is Advancing So Fast That Traditional Economic Metrics Have Not Kept Up

Effective economies measure the factors that matter to them. Those that fail to keep up with the need for changes in metrics create information asymmetries that reward misallocation of resources.

 The sclerotic denial of that need, based on perceptions of who will benefit or be harmed by the changes, will ultimately cause more damage than the adoption of - and adaptation to - the data necessary to make better decisions and improve performance. JL

Rick Rieder comments in the BlackRock blog:

Today’s advances in technology are generally geared toward greater efficiency at lower costs. The percentage of companies reporting effectively zero inventory levels has increased to more than 20 percent from fewer than 5 percent. Technology is advancing so fast that traditional economic metrics haven’t kept up. It helps to explain widespread misconceptions about the state of the U.S. economy.

Dec 15, 2015

How the Legal Argument In Favor of Daily Fantasy (Gambling) Proves It's a Ripoff

Aside from the evident economic disincentive to participate (you'd be more likely to win in a random Las Vegas or Macau casino) , did anyone else get the hypocritical irony of Major League Baseball - a major daily fantasy investor - telling former All-Star Pete Rose yesterday that it was refusing to end its ban on his association with the sport...because he's a gambler? JL


Sean Gregory reports in Time:

DraftKings hired David Boies, the most famous litigator in the country, to defend its business model — but in doing so, undercut their brand. In the company’s legal filings for the case, Boies cited a study which found that just 1.3% of players won 91% of contest winnings in the first half of the 2015 MLB season. In other words, you’ll likely lose money playing our game!

On January 1, 2016 Mobile Phones More Than 5 Years Old May Be Cut Off From the Web

This is about websites wishing to demonstrate they are secure by penalizing those least able to afford the change they are mandating (since people with older phones dont keep them out of nostalgia, but out of need).

The challenge is how to address both sets of needs, especially given the economic and competitive implications for those cut off, both businesses and individuals. JL

Sheera Frenkel reports in BuzzFeed:

It might not be a big deal in New York or San Francisco, where a 5-year-old phone is treated as an antique, but in some parts of the developing world up to 7% of internet users could find themselves suddenly cut off from the world’s most popular sites.

Coastal Cities in Conservative Southeast US Revolting Against Atlantic Oil Drilling

Politics makes very strange bedfellows. The Paris climate accords are being hailed as one of President Obama's signature achievements. Yet this same president, earlier in the year, issued rulings permitting seismic testing and drilling off most of the Atlantic coast on the southeastern US

 That decision has sparked a widespread revolt across one of the most politically conservative, pro-business regions of the country. A combination of grassroots NIMBY (not in my backyard) and tourism plus retiree focused development interests fear the pollution from the drilling effort will lessen real estate values and discourage visitors.

So, everyone involved: from a president promoting environmental remediation who also supports drilling to arch-conservative red state ideologues who despise the 'liberal' president and environmental activists but fear the economic harm from drilling all find themselves on at least two sides of these issues. JL

Sean Cockerham reports in McClatchy:

All major coastal cities in North Carolina, South Carolina and Georgia are against the drilling plan. Similar resolutions have been passed by cities in Florida, Virginia, New Jersey, Maryland and Delaware.

As Startup Valuations Cool Down, VCs' Demands Are Getting More Outlandish

As the returns on the back end start to shrink, the demands on the front end increase to try to mitigate the damage. JL

Jason Del Rey reports in re/code:

Investors are growing more conservative as valuations are cooling down, and the balance of power between entrepreneurs and VCs may be shifting back toward the money men.
As a result, some investors feel more empowered to add crazy terms to a deal before closing.

Uber's New Contract Restricts Drivers' Right To Join Lawsuits About Whether They Are Employees or Not

The consecutive court rulings that Uber drivers are employees rather than contractors is a ticking time bomb for Uber's business model and valuation. It's latest attempt to restrict drivers' legal rights suggests that the company - and its investors - are feeling the pressure.JL

Joel Rosenblatt reports in Bloomberg:

Uber’s re-worded agreement to “get around the court’s decision,” which likely added the vast majority of Uber’s 160,000 California drivers and hundreds of millions of dollars in damages to the case is an attempt to circumvent the court’s ruling by a new arbitration agreement that will prevent drivers from seeking to enforce their rights under the wage laws in this case.

Hedge Funds Are Having Trouble Hiring - And It's Thanks To the Allure of Silicon Valley

Given the personality types involved - and their recent track record - this could be great news for the economy. But maybe not so good for innovation - or civilization. JL

Julia La Roche reports in Business Insider:

(Finance) no longer appears to occupy a preeminent position in new graduates' minds as they think about career opportunities. Technology firms are a bigger draw for top talent at universities and PhD programs.

Dec 14, 2015

Encryption Means Never Having To Admit You Just Don't Know

No evidence has emerged demonstrating that the perpetrators of either the Paris or San Bernardino terrorist attacks used encrypted communications. In fact, the likelihood that they did not do so is growing.

That has not stopped officials from demanding access to all communications, encrypted or not.

That this will make it harder for them to claim, in the future, that 'no one could have predicted...' whatever the event may be does not seem to be discouragement. JL

Cory Bennett reports in The Hill via Mary Wheeler's blog:

While no evidence has been uncovered that either plot was hatched via secure communications platforms, lawmakers and federal officials have used the incidents to resurface an argument that law enforcement should have guaranteed access to encrypted data.

Why Walmart Is Entering the Mobile Payments Business

Walmart gets to capture all that customer data and the profit that comes from being a financial intermediary. This on top of its already extensive commanding position as the largest retailer in the world. Given that its clash of the titans battle with Amazon is going to be very expensive, any strategic advantage gained now will pay for itself later. JL

Hiroko Tabuchi reports in the New York Times:

Walmart Pay acts more like a gateway to a variety of payment options, including credit cards and even other mobile payment systems.Walmart’s decision to start a service that allowed for credit card payments meant that it had probably negotiated better fees with the card companies.

Car Buyers Cite Vehicle Connectivity As Greatest Concern: Which Explains Why Automakers' Dashboard Apps Are Losing

The technological ecosystem expands to include autos. Manufacturers have addressed quality issues so successfully that consumers no longer worry - and possibly even consider - that as a sales point. Their primary concern, as the following article explains, is with the systems that manage internet and phone connectivity.

The problems automakers have had getting BlueTooth to work - and the time and commitment customers have invested in their smartphones, as well as the brand advantage those devices enjoy - means that the buyers want a seamless interface for the sake of convenience, reputation and operational integrity. The result is that tech companies are making inroads into the automotive market that threaten the auto makers data, market share and profits. JL

Mike Ramsey reports in the Wall Street Journal:

Auto makers face a tough sell to keep customers from defecting to rival systems. CarPlay and Android Auto’s voice recognition, which rely on cloud-based computing, can make retrieving driving directions, using phone functions or asking for music selections easier. Car makers are loath to give up the key information and entertainment links in their vehicles and that’s threatened because of customers preferring to use their Apple and Google smartphones

When the Crowd Becomes a Company

There are going to be a lot of new models for generating products and services. There are also going to be a lot of interesting questions about how value is apportioned - and the meaning of ownership.  JL

Peter Hinssen interviews Jeremiah Owyang in Forbes:

Just as we saw companies integrate customers into their media and communications, expect them to integrate them into their business models.  Expect new models to emerge where the crowd is augmenting traditional business processes.  They will co-fund, co-ideate, co-design, co-build, co-support, co-deliver, co-market and more for a growing variety of products.

Streaming Accounts for 70% of Peak Traffic - Netflix 37% - Or Why Amazon Bid For Cordcutters and Is Adding Partners

This is a compilation of two articles from different sources about the exponential growth of streaming with Netflix as the lead provider - and the strategic response of other major contributors, like Amazon, remain competitive.

Whether Netflix can remain dominant or merely represents a transitional phase in the development of the medium is the crucial question. JL

Emil Protalinski reports in Venture Beat and Ingrid Lunden reports in Tech Crunch:

Netflix, now has a greater share of traffic than all of streaming audio and video did five years ago. With Netflix, YouTube, Amazon Video, and Hulu increasing their share, it further underscores both the growing role these streaming services play in the lives of subscribers, and the need for service providers to have solutions to help deliver a quality experience

The Hidden Costs of a Broken Work Culture

In a service economy where intangibles may be the most valuable commodity produced, what was once thought 'soft' is increasingly harder than the industrial-age output by which success used to be tallied.

Given this evolution, managers are, by necessity, becoming increasingly adept at measuring anything which might effect outcomes crucial to the enterprise. Whether they are interpersonal, psychological, emotional, operational or managerial, the factors impacting performance must be identified, evaluated and addressed. Those organizations that fail to do so are simply accruing what the following article calls cultural debt. Those that have the focus, courage and desire to do so will find that they can overcome any obstacle, whether internal or external. JL

Matt MacInnis comments in Fast Company:

Cultural debt is the sum of all the bad hires left in place and all the bad behaviors left unchecked. It's the jerk you’re tolerating because he makes his numbers. It’s the shortcut you take for yourself while holding everyone else to a higher standard. It’s the manager who withholds tough feedback to avoid uncomfortable conflict.

Dec 13, 2015

This Guy Searches Amazon For the Worst Things You Can Buy

The only thing hard to believe is that he is the only one doing this. JL

Drew Pick reports in Motherboard:

A blog called The Worst Things for Sale plumbs the depths of the crappiest or most unethical shit Amazon has to offer. Things that are pointless, or offensive, or things that just make you wonder why someone would exchange real money for them.

Millennials Take Over the Electorate

First, the workplace. Now, the electorate. The lingering question is what, if any, changes in policy and economics this will portend. JL

Zara Kessler comments in Bloomberg:

Despite the larger size of the millennial generation relative to the baby boomers, their transition through life has not introduced (and, moving forward, is not as likely to introduce) the same level of shock to societal institutions as the baby boomers. This is because the baby boom was marked by large increases in birth cohorts relative to those that had come before. This is not the case for the millennials.

Google Ventures Faces a Bumpy Ride

It's probably not appropriate to claim that a fund which has invested in companies like Uber is having difficulties, but the fact that Google Ventures is now reappraising its strategy reinforces the notion that no one has a monopoly on innovation - or brains. JL

Richard Waters reports in the Financial Times:

Google Ventures invested 20 per cent less this year than last. The number of companies it backed also fell, dropping to 34 from 57 the previous year. The amount of money trying to get into investments has caused prices to go up. The investment unit has back(ed) more than 300 companies.

Hive Mind: The Reason Your Nation's IQ Matters More Than Your Own

Collective intelligence - or other factors like ethics, collaboration and effort - may have a more powerful impact on individual success or failure than personal attributes. JL

Jonathan Wai reports in Quartz:

Within a country, the link between IQ and income appears modest, with one IQ point predicting 1% higher income per person. But across countries, that same IQ point predicts 6% higher income per person.Three key paths that may generate positive side effects: the links between IQ and patience, cooperation, and team performance.

How Technology Is Transforming Retirement

Robotics, peer-to-peer, social, mobile, machine learning, internet of things, virtual reality, smart homes, on demand services, remote sensing and learning, autonomous vehicles...all of these are affecting life as it is lived now, but may have significant implications for society in the future.

The optimistic, Jetsons-esque response is that this will make life for the elderly much more stimulating, interesting and enjoyable. And that's great. But this raises questions about cost, about privacy and about the impact it may have on younger generations finding their careers blocked by digitally enhanced golden-agers, to say nothing of figuring out whether government should be obligated to pay for these new options must be addressed by the individuals who want them - and the society expected to provide them. JL

Joseph Coughlin reports in the Wall Street Journal:

Four out of 10 baby boomers are planning to work in retirement.

Why Digital Culture Is Sparking an Analog Revival

"Don't know what you got till it's gone," as someone once sang on vinyl. JL

Rob Walker comments in the New York Times:

Digital culture appears to have a case of analog fever: rising sales of vinyl records. E-book sales dropped by 10 percent in the first five months of this year: The American Booksellers Association counted 1,712 member stores in 2015, up from 1,410 in 2010.Vox recently published a brief on behalf of the video rental store. (Rather) than nostalgia or Luddism, digital comes close to crushing its analog precedents, (but) that process can underscore their virtues,